Advice 1: How to conduct an analysis of the company

Analysis of financial and economic activity of the enterprise plays an important role in enhancing the efficiency of its activities, identifying strengths and weaknesses, strengthen financial condition. Economic analysis contributes to a more rational use of fixed assets, material, labor and financial resources.

How to conduct an analysis of the company
Remember that the analysis of activity of the enterprise is used the principle of efficiency of management, including the achievement of the maximum result at the lowest cost. The most generalizing indicator of efficiency is profitability. To her private indicators include:
- the efficiency of labor (return of personnel, labor productivity), fixed assets (capital intensity, capital productivity), material resources (material, materialattach);
- efficiency of investment activity of the enterprise (return on capital investments);
- effective use of assets (turnover ratios);
- efficiency of use of capital.
After calculating the odds of financial-economic activity of the enterprise to map the planning, regulatory, and industry benchmarks. This will allow us to conclude about the effective functioning of the organization and its place in the market.
To make a General conclusion about the effectiveness of the company, calculate the level of profitability representing the ratio of the profits of the enterprise to the value of fixed and current assets. This indicator combines a number of factors (return on equity, sales, merchandise, etc.). Profitability – is an integral indicator of efficiency of the business. It shows a measure of profitability, its attractiveness to investors.
In the analysis of activity of the enterprise note that a more detailed study of its condition it is necessary to conduct factor analysis of the obtained results. After all, every indicator of capacity utilization, is influenced by other indicators.
On the organization as a whole is influenced by many factors:
- the General economic situation in the country and on the market;
natural-geographical position;
- industry affiliation;
factors caused by the operation of the enterprise (pricing and marketing policy, degree of usage of production resources, the identification and use of internal reserves, etc.).

Advice 2: How to analyze sales

Analysis of sales helps you to identify the most promising products from the point of view of their implementation. It also allows you to track the trend of decline and increase sales. With this information, you can more effectively manage the sales and plan their professional activities.
How to analyze sales
You will need
  • Sales information, calculator, computer
Analyze the dynamics and structure of sales of products. For this, observe how the number of units of product purchased during the reporting period. Compare the received data with the previous or base period. The result may be a conclusion about the growth, decline or stability of sales. Identify the rate of revenue growth by dividing the data for the current period to historical data. Find out what number of products were sold on credit.
Rate the evenness of sales. To do this, define the coefficient of variation or irregularity. The smaller value is, the more evenly distributed sales periods.
Identify critical sales volume. This figure shows at what number of products sold, the company will cease to be unprofitable, but yet will not start to make a profit. To do this, fixed costs should be divided into the level of marginal income.
Determine the profitability of sales. It represents the profitability of your enterprise and the feasibility of its existence. Profitability is calculated by dividing the profit from sales revenue from them. This indicator should be analysed in dynamics. It shows how much profit brings every ruble of revenue.
Analyze the sales growth rate of competitors. This will allow you to identify its position in the market and strengthen the company's position in the future.
Identify the causes of the decline in sales, if any. Most of them are an approximation of the product life cycle by the end of high competition in this sector of the market, glut in the market. Depending on the cause, the company must either start production of a new product or build on your strengths or to enter new segments of the market. Timely decision can save you from a further decline in sales.
The term "sales analysis" refers to a very wide range of tasks, including those whose solution requires the use of nontrivial techniques. However, in most cases, an analyst, or a sales Manager uses spreadsheets filled with... information.
Useful advice
At the initial stage the analysis of dynamics of sales, the sales structure and profitability of sales. At this stage, determine trends in respect of sales (growth, stability, decline), as well as the influence of individual groups and categories of products/services at the trends and level of this influence.
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