Factor of turnover of own capital and other indicators of an estimation of business activity of the organization
An important stage in the analysis of economic activityIt is necessary to name an estimation of various parameters, including business activity. One of the indicators used for this is the coefficient of turnover of own capital. Business activity is characterized by how dynamically the organization develops, what goals and to what extent are achieved. All this is reflected in cost and relative indicators.This procedure allows to judge,how effectively it uses the means at its disposal. This area of analysis of economic activity is to study not only the level, but also the dynamics of various coefficients. Business activity is manifested primarily in the speed of turnover of the funds available to the organization. Since the sooner the capital makes a "circle", the more the volume of production the enterprise can purchase and realize without investing additional finance. The slowdown in turnover, delays that occur at any stage, lead to a deterioration in the financial stability of the company. If the coefficient of turnover of own capital, on the contrary, increases, then such an important indicator as BOP increases. However, there is one important feature. Factor оборачиваемости own capital can play a negative role, worsening a financial condition of the enterprise. This happens if the sale of goods created a loss.
Factors affecting the level of business activity indicators and their dynamics
There are a lot of them, we list only a few. First, the ratio of turnover of own capital and profitability is affected by the quality of management and the level of organization of the production process. The second factor is the structure and main sources of financing. Third, the rationality of using available resources. The fourth factor is production volumes, product quality and its structure. Costs of production are also important.
Characteristic of some coefficients
This is a number of indicators of turnoverfixed assets, capital of own and circulating assets, assets. The first indicator reflects how effectively the organization's OPF is used at any given time. This is a return on assets. Factor оборачиваемости the working capital speaks about with what speed are returned both material, and monetary resources of the organization. Next, we should say a few words about the coefficient characterizing our own capital. It affects various aspects of the business entity. He can talk about the excess (lack) of implementation. In addition, this indicator reflects the rate of return of the invested capital, as well as the activity inherent in the invested investments. The too large value of this parameter, as well as the low one, is not very good for the enterprise. In the first case, a significant excess of sales over invested funds is the reason for attracting more borrowed funds. The second option indicates the availability of downtime of some share of fixed assets, which means that it is expedient for the company's management to invest in a more efficient source of profit. The ratio of turnover of current assets indicates how many revolutions are made in one production cycle. And the latter can be called the speed of realization. As a rule, the higher the value of the parameter in question, the more liquid the capital, and, accordingly, the overall state of the organization is more stable from the economic point of view.