Business activity of the enterprise
Business activity of a business entityfinds its reflection in the financial aspect in the speed of turnover of its funds. At the same time, the profitability level reflects the level of profitability of the activity of this entity.
A study of business activity can identifydegree of efficiency of the use of funds by the enterprise. As mentioned above, business activity operates with indicators such as profitability and turnover ratios. They have a significant impact on the evaluation of the company's performance. For example, working capital turns around once a quarter with 25% of the profitability of core activities. Then the index of business activity for the same quarter will be 0.25 (the same 25%). Hence, one can formulate the following conclusion: if the turnover of a given working capital doubles with a similar profitability, then business activity also doubles.
Business activity is a dynamic and complexcharacteristics of entrepreneurial activities, as well as assessing the effectiveness of the use of available resources at the disposal of the business entity. The levels of this indicator reflect the stages of the company's functioning, which include the consideration of origin, development, recovery, recession and crisis, and also show the level of adaptation to the changing market conditions and quality of management.
Business activity can be characterizedmotivated managerial macro or microlevel in the process of stable economic activity of the organization, which is aimed at ensuring the growth of employment and the effective use of resources in order to achieve market competitiveness.
An important influence on the indicator under considerationhave macroeconomic factors, the impact of which contributes to the formation or favorable climate, stimulating the conditions of active behavior of the business entity, or becomes a prerequisite for the curtailment of business activity.