Analysis of the economic activity of the enterprise. The concept of economic activity of an enterprise, its economic legal relations, their characteristics

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Introduction

Relevance. An enterprise is an independent economic unit that operates on the territory of a given state and is subject to the laws of this state.

The administrative and economic independence of an enterprise is determined by law and means that the enterprise independently decides how much to produce and how to sell it, how to distribute the income received.

Main characteristic features enterprises are a production and technical unity, expressed in the commonality of production processes; organizational unity - the presence of a single leadership, plan; economic unity, manifested in the community of material, financial resources, as well as economic performance.

Civil Code The Russian Federation considers an enterprise as a single property complex, including all types of property intended for carrying out activities: land, buildings, structures, equipment, inventory, raw materials, products, claims, debts, as well as rights to a trade name, trademarks and service marks and other exclusive rights. It may be state or municipal property or belong to a commercial organization established in the form of a business company or partnership, a production cooperative or non-profit organization carrying out entrepreneurial activities in accordance with the law and its charter (for example, property used by a garage cooperative for car repairs, its rights and obligations related to this activity).

A property complex owned by an individual entrepreneur or members of a peasant (farm) economy can also act as an enterprise.

The cash flow of the enterprise is carried out by three types of activities:

current (main, operational) activity;

· investment activities;

· financial activities.

Purpose of the study- to analyze the types of activities of the enterprise.

Research objectives:

1. Consider the main activities of the enterprise.

2. Analyze the essence and goals of operational activities.

3. Determine the features of investment activity.

4. Justify the importance of the financial activities of the enterprise.

Object of study- the fundamental characteristics of the economic activity of the enterprise. Subject of study- definition of features of types of activity of the enterprise.

Work structure: the work consists of an introduction, two chapters, a conclusion and a list of references.

Theoretical basis This work was served by the works of such authors as: Vasilyeva N.A., Mateush T.A., Mironov M.G., Zabrodskaya N.G. and others.

Chapter 1. Fundamentals of the economic activity of the enterprise

1.1 Main activities of the enterprise

Current (main, operating) activity - the activity of an organization that pursues profit making as the main goal, or does not have profit making as such in accordance with the subject and goals of the activity, i.e., the production of industrial, agricultural products, the implementation construction works selling goods, providing services Catering, harvesting agricultural products, leasing property, etc.

Inflows from current activities:

receipt of proceeds from the sale of products (works, services);

Receipts from the resale of goods received by barter;

Receipts from the repayment of receivables;

advances received from buyers and customers.

Outflows from current activities:

payment for purchased goods, works, services;

Issuance of advances for the purchase of goods, works, services;

payment of accounts payable for goods, works, services;

· salary;

payment of dividends, interest;

· payment according to calculations on taxes and fees.

Investment activity - the activity of an organization related to the acquisition of land plots, buildings, other real estate, equipment, intangible assets and other non-current assets, as well as their sale; with the implementation of own construction, expenses for research, development and technological development; with financial investments.

Inflows from investment activities:

receipt of proceeds from the sale of non-current assets;

Receipt of sales proceeds valuable papers and other financial investments;

income from the repayment of loans granted to other organizations;

receiving dividends and interest.

Outflows from investment activities:

payment for acquired non-current assets;

payment of acquired financial investments;

· issuance of advances for the acquisition of non-current assets and financial investments;

granting loans to other organizations;

· Contributions to authorized (share) capitals of other organizations.

Financial activity - the activity of the organization, as a result of which the value and composition of the organization's own capital are changed, borrowed money.

Cash inflows from financing activities:

Receipt from the issue of equity securities;

income from loans and credits provided by other organizations.

Outflows from financial activities:

repayment of loans and credits;

payment of obligations under financial lease.

1.2 The essence and objectives of operating activities

Enterprises operate in the market in a highly competitive environment. Those who lose in this struggle become bankrupt. In order not to go bankrupt, business entities must constantly monitor changes in the market environment, develop methods to counteract negative aspects in order to maintain their competitiveness.

In the process of managing the profit of the enterprise, the main role is given to the formation of profit from operating activities. Operational activity is the main activity of the enterprise, for the purpose of which it was created.

The nature of the operating activity of the enterprise is determined primarily by the specifics of the sector of the economy to which it belongs. The basis of the operating activities of most enterprises is production, commercial or trading activities, which are complemented by their investment and financial activities. At the same time, investment activity is the main one for investment companies, investment funds and other investment institutions, and financial activity is the main one for banks and other financial institutions. But the nature of the activities of such financial and investment institutions, due to its specificity, requires special consideration.

The current activity of the enterprise is aimed primarily at extracting profit from the assets at its disposal. When analyzing this process, the following quantities are usually taken into account:

added value. This indicator is calculated by subtracting from the company's revenue for the reporting period the cost of consumed material assets and services of third-party organizations. For further use of this indicator, it is necessary to deduct value added tax from it;

· Gross result of exploitation of investments (BREI). It is calculated by subtracting from the value added the cost of wages and all taxes and mandatory contributions, except for income tax. BREI represents earnings before income tax, interest on borrowings and depreciation. BREI shows whether the enterprise has enough funds to cover these costs;

Earnings before income tax and interest, EBIT (Earnings before Interest and Taxes). Calculated by subtracting depreciation charges from BREI;

· economic profitability, or income generation ratio (ERR), already mentioned earlier in the section on analysis using financial ratios. Calculated as EBIT divided by total amount enterprise assets;

commercial margin. It is calculated by dividing EBIT by revenue for the reporting period and shows how much profit before taxes and interest each ruble of the company's turnover gives. In financial analysis, this ratio is considered as one of the factors affecting economic profitability (ER). Indeed, BEP can be thought of as the product of commercial margin times asset turnover.

Achievement high rate economic profitability is always associated with the management of its two components: commercial margin and asset turnover. As a rule, an increase in asset turnover is associated with a decrease in commercial margin and vice versa.

Both the commercial margin and asset turnover are directly dependent on the company's revenue, cost structure, pricing policy and the overall strategy of the company. The simplest analysis shows that the higher the price of products, the higher the commercial margin, but this usually reduces the turnover of assets, which greatly restrains the increase in economic profitability.

Economic profitability is a very useful indicator of the company's performance, but for owners, often more important than such an indicator as return on equity (ROE). To maximize it, it is necessary to choose the optimal capital structure of the company (the ratio of borrowed and own funds). In this case, the analysis of financial risk is carried out by calculating the effect of financial leverage.

The amount of cash flows generated from operating activities is a key indicator of the extent to which a company's operations generate sufficient cash flows to repay loans, maintain operating capacity, pay dividends, and make new investments without recourse to external sources financing. Information about the specific components of initial operating cash flows, combined with other information, is very useful in predicting future cash flows from operating activities.

Cash flows from operating activities primarily arise from the main, income-generating activities of the company. As such, they generally result from transactions and other events that are part of the determination of net profit or loss. Examples of operating cash flows are:

cash receipts from the sale of goods and the provision of services;

cash receipts from rent, fees, commissions and other income;

cash payments to suppliers for goods and services;

cash payments to employees and on their behalf;

cash receipts and payments of the insurance company as insurance premiums and claims, annual premiums and other insurance benefits;

cash payments or income tax compensation, unless they can be linked to financial or investment activities;

cash receipts and payments under contracts concluded for commercial or trading purposes. Some transactions, such as the sale of a piece of equipment, may give rise to a gain or loss that is included in the determination of net profit or loss. However, the cash flows associated with such transactions are cash flows from investing activities.

A company may hold securities and loans for commercial or trading purposes, in which case they may be treated as stock purchased specifically for resale. Therefore, cash flows arising from the purchase or sale of commercial or trading securities are classified as operating activities. Similarly, cash advances and loans provided by financial companies are usually classified as operating activities because they are part of the financial company's core income-generating activities.

One of the tools for market research and maintaining competitiveness is the analysis of the financial and economic activities of the enterprise, including the analysis of its financial condition. The order and tools of analysis, which is carried out in order to make financial decisions, is determined by the very logic of the functioning of the financial mechanism of the enterprise.

One of the simplest but most effective types financial analysis, is an operational analysis, called CVP (cost-volum-profit, costs - volume - profit).

The purpose of the analysis of operating activities is to track the dependence of the financial results of the business on costs and sales volumes.

The main task of CVP analysis is to get answers to important questions that entrepreneurs have at all stages of money circulation, for example:

How much capital does a business need to have?

How to mobilize these funds?

To what extent can financial risk be reduced using the effect of financial leverage?

Which is cheaper: buying or renting real estate?

To what extent can the strength of operating leverage be increased by maneuvering variable and fixed costs, thereby changing the level of entrepreneurial risk associated with the activities of the enterprise?

Is it worth it to sell products at prices below cost?

Should we produce more of this or that product?

How will a change in sales volume affect profits?

Cost allocation and gross margin

CVP - analysis serves to find the optimal, most beneficial costs for the enterprise. It requires the allocation of costs to variable and fixed, direct and indirect, relevant and irrelevant.

Variable costs generally change in direct proportion to the volume of production. These can be the costs of raw materials and materials for the main production, the wages of the main production workers, the cost of selling products, etc. It is beneficial for the enterprise to have less variable costs per unit of output, because in this way it secures itself, respectively, more profit. With a change in the volume of production, total variable costs decrease (increase), at the same time, they remain unchanged per unit of output.

Fixed costs must be considered in the short term, the so-called relevant range. In this case, they generally do not change. Fixed costs include rent, depreciation, wages managers, etc. The change in the volume of production has no effect on the size of these costs. However, in terms of a unit of output, these costs change inversely.

Direct costs are the costs of an enterprise that are directly related to the production process or the sale of goods (services). These costs can be easily attributed to a specific type of product. For example, raw materials, materials, wages of key workers, depreciation of specific machines, and others.

Indirect costs are not directly related to the production process and cannot be easily attributed to a specific product. Such costs include the salaries of managers, sales agents, heat, electricity for auxiliary production.

Relevant costs are costs that depend on the acceptance management decisions.

Irrelevant costs do not depend on management decisions. For example, a plant manager has a choice: to produce desired part to the mechanism or buy it. The fixed cost of producing the part is $35, and you can buy it for $45. So, in this case, the supplier price is the relevant cost, and the fixed cost of production is the irrelevant cost.

The problem associated with the analysis of fixed costs in production is that it is necessary to distribute their total value over the entire product range. There are several ways to distribute this. For example, the sum of fixed costs relative to the time fund gives the cost rate for 1 hour. If the production of goods takes 1/2 hour, and the rate is 6 c.u. per hour, then the value of fixed costs for the production of this product is 3 c.u.

Mixed costs include elements of fixed and variable costs. For example, the cost of paying for electricity, which is used both for technological purposes and for lighting premises. In the analysis, it is necessary to separate mixed costs into fixed and variable.

The sums of fixed and variable costs represent the total costs for the entire volume of production.

Ideal Conditions for business - a combination of low fixed costs with a high gross margin. Operational analysis allows you to establish the most beneficial combination of variable and fixed costs, prices and sales volume.

The asset management process aimed at increasing profits is characterized in financial management as leverage. This is such a process, even an insignificant change in which leads to significant changes in performance indicators.

There are three types of leverage, which are determined by recomposing and disaggregating income statement items.

Production (operating) leverage is a potential opportunity to influence gross profit by changing the cost structure and output volume. The effect of operating leverage (leverage) is manifested in the fact that any change in revenue from the sale of products always generates a significant change in profit. This effect is due to varying degrees of influence of the dynamics of fixed and variable costs on the formation of financial results when the volume of production changes. The higher the level of fixed costs, the greater the power of operating leverage. The strength of the influence of the operating lever informs about the level of entrepreneurial risk.

Financial leverage is a tool that affects the profit of an enterprise by changing the structure and volume of long-term liabilities. The effect of financial leverage is that an enterprise using borrowed funds changes the net profitability of its own funds and its dividend opportunities. The level of financial leverage indicates the financial risk associated with the enterprise.

Since interest on a loan is a fixed cost, an increase in the share of borrowed funds in the structure of the financial resources of an enterprise is accompanied by an increase in the strength of the operating leverage and an increase in entrepreneurial risk. The category summarizing the two previous ones is called production and financial leverage, which is characterized by the relationship of three indicators: revenue, production and financial costs, and net profit.

The risks associated with the enterprise have two main sources:

The very influence of the operating lever, the strength of which depends on the proportion of fixed costs in their total amount and determines the degree of flexibility of the enterprise, generates entrepreneurial risk. This is the risk associated with a specific business in a niche market.

Volatility of the financial conditions of lending, the uncertainty of the owners of shares in the return of investments in the event of liquidation of the enterprise with high level borrowed funds, in fact, the very action of financial leverage generates financial risk.

Operational analysis is often referred to as break-even analysis. Break-even analysis of production is a powerful tool for making managerial decisions. By analyzing break-even production data, the manager can answer questions that arise when changing course of action, namely: what impact on profit will a decrease in the selling price have, how much sales are needed to cover additional fixed costs due to the planned expansion of the enterprise, how many people need to be hired etc. The manager in his work constantly needs to make decisions about the selling price, variable and fixed costs, the acquisition and use of resources. If he cannot make a reliable forecast of the level of profits and costs, his decisions can only bring harm to the company.

Thus, the purpose of the break-even analysis of activities is to establish what will happen to financial results if a certain level of productivity or production volume changes.

Break-even analysis is based on the relationship between changes in production volume and changes in total profit from sales, costs and net income.

The break-even point is understood as such a point of sales at which costs are equal to the proceeds from the sale of all products, that is, there is neither profit nor loss.

To calculate the break-even point, 3 methods can be used:

Equations

Marginal income;

graphic image.

Despite the difficult economic conditions in which enterprises find themselves today (lack of working capital, tax pressure, uncertainty about tomorrow and other factors), nevertheless, each enterprise must have a strategic financial plan, a budget for a certain period: a month, a quarter, a year or more, for which a budgeting system should be introduced at the enterprise.

Budgeting is the process of planning the future activities of an enterprise and formalizing its results in the form of a system of budgets.

The objectives of budgeting are as follows:

· maintenance of current planning;

Ensuring coordination, cooperation and communication between departments of the enterprise;

to force managers to justify quantitatively their plans;

· substantiation of expenses of the enterprise;

· formation of base for an estimation and control of plans of the enterprise;

Compliance with the requirements of laws and contracts.

The budgeting system at the enterprise is based on the concept of centers and accountability.

Responsibility center is an area of activity within which a manager is personally responsible for the performance indicators that he is obliged to control.

Responsibility accounting - an accounting system that provides control and evaluation of the activities of each responsibility center. The creation and functioning of the accounting system by responsibility centers provides for:

definition of responsibility centers;

· budgeting for each responsibility center;

regular reporting on performance;

· Analysis of the causes of deviations and evaluation of the activities of the center.

In an enterprise, as a rule, there are three types of responsibility centers: a cost center, the head of which is responsible for costs, affects them, but does not affect the income of the unit, the volume of capital investments and is not responsible for them; profit center, the head of which is responsible not only for costs, but also for income, financial results; investment center, the head of which controls costs, revenues, financial results, and investments.

Maintaining budgeting will allow the company to save financial resources, reduce non-production costs, achieve flexibility in managing and controlling product costs.

1.3 Management of the cash flows of the organization in the activities of the organization

The cash flows generated by the current activities of the organization often go into the sphere of investment activities, where they can be used to develop production. However, they can also be directed to the sphere of financial activity for the payment of dividends to shareholders. Current activities are quite often supported by financial and investment activities, which ensures additional capital inflow and the organization's survival in a crisis situation. In this case, the organization ceases to finance capital investments and suspends the payment of dividends to shareholders.

The cash flow from current activities is characterized by the following features:

current activity is the main component of all business activities of the organization, so the cash flow generated by it should occupy the largest specific gravity in the total cash flow of the organization;

forms and methods of current activities depend on industry characteristics, therefore, in different organizations, cash flow cycles of current activities can vary significantly;

· Operations that determine the current activity are distinguished, as a rule, by regularity, which makes the monetary cycle quite clear;

· Current activity is focused mainly on the commodity market, so its cash flow is related to the state of the commodity market and its individual segments. For example, a shortage of inventories in the market can increase the outflow of money, and overstocking finished products can reduce their influx;

current activities, and hence its cash flow, are inherent in operational risks that can disrupt the cash cycle.

Fixed assets are not included in the cash flow cycle of current activities, since they are part of investing activities, but it is impossible to exclude them from the cash flow cycle. This is explained by the fact that current activities, as a rule, cannot exist without fixed assets, and in addition, part of the costs of investment activities is reimbursed through current activities through depreciation of fixed assets.

Thus, the current and investment activities of the organization are closely related. The cash flow cycle from investing activities is the period of time during which cash invested in non-current assets will return to the organization in the form of accumulated depreciation, interest or proceeds from the sale of these assets.

The cash flow from investing activities is characterized by the following features:

· the investment activity of the organization is subordinate in relation to the current activities, so the inflow and outflow of funds from investment activities should be determined by the pace of development of current activities;

Forms and methods of investment activity are much less dependent on the industry characteristics of the organization than current activities, therefore, in different organizations, the cycles of cash flows of investment activities are usually almost identical;

· the inflow of funds from investment activities in time is usually significantly distant from the outflow, i.e. the cycle is characterized by a long time lag;

investment activity has various forms(acquisition, construction, long-term financial investments, etc.) and different directions of cash flow in certain periods of time (as a rule, outflow, which significantly exceeds inflow, predominates initially, and then vice versa), which makes it difficult to present its cash flow cycle in a sufficiently clear scheme;

· investment activity is associated with both commodity and financial markets, the fluctuations of which often do not coincide and can affect the investment cash flow in different ways. For example, an increase in demand in the commodity market may give the organization an additional cash inflow from the sale of fixed assets, but this, as a rule, will lead to a decrease in financial resources in the financial market, which is accompanied by an increase in their value (percentage), which, in turn, may lead to an increase in the cash outflow of the organization;

· the cash flow of investment activities is affected by specific types of risks inherent in investment activities, united by the concept of investment risks, which are more likely to occur than operational ones.

The cash flow cycle of financial activity is the period of time during which money invested in profitable objects will be returned to the organization with interest.

The cash flow from financing activities is characterized by the following features:

financial activity is subordinate in relation to the current and investment activities, therefore, the cash flow of financial activities should not be formed to the detriment of the current and investment activities of the organization;

the volume of cash flow of financial activities should depend on the availability of temporarily free cash, so the cash flow of financial activities may not exist for every organization and not constantly;

financial activity is directly related to the financial market and depends on its state. A developed and sustainable financial market can stimulate financial activity organizations, therefore, provide an increase in the cash flow of this activity, and vice versa;

· financial activities are characterized by specific types of risks, defined as financial risks, which are characterized by a special danger, therefore, they can significantly affect the cash flow.

The cash flows of the organization are closely related to all three types of its activities. Money constantly "flows" from one activity to another. The cash flow of current activities, as a rule, should fuel investment and financing activities. If there is a reverse direction of cash flows, then this indicates an unfavorable financial situation of the organization.

Chapter 2. Investment and financial activities of enterprises

2.1 Features of investment activity

Investing activities are the purchase and sale of long-term assets and other investments that are not cash equivalents. The investment activity of an organization is an activity related to the acquisition of land plots, buildings and other real estate, equipment, intangible assets and other non-current assets, as well as their sale; with the implementation of own construction, expenses for research, development and technological development; with the implementation of financial investments (acquisition of securities of other organizations, including debt securities, contributions to the authorized (share) capital of other organizations, provision of loans to other organizations, etc.).

According to its focus, the investment activity of an enterprise can be divided into two main types: internal and external. Internal activities include: expansion of production capacities, technical re-equipment and reconstruction of the enterprise, increase in output, creation of new types of products.

The expansion of production capacity contributes to an increase in the potential of the enterprise, the volume of output of existing products, the transition to the production of new products and, ultimately, to profit growth.

The expansion of existing enterprises is an investment that involves the construction of new additional workshops and other divisions of the main production, as well as new auxiliary and service workshops and sites. Usually, the expansion of production is carried out on a new technical basis and, consequently, it provides not only an extensive increase in the capacities of existing enterprises, but also an increase in the technical level of production.

The technical re-equipment of an individual enterprise or its division is usually understood as the replacement of the existing fleet of equipment with a more modern one with high technical and economic indicators. Moreover, such a replacement is carried out without expanding the production area.

Reconstruction, as a rule, includes activities related both to the replacement of obsolete and physically worn-out machines and equipment, and to the improvement and restructuring of buildings and structures. The reconstruction of enterprises, as a rule, is carried out in connection with the diversification of production and the development of new products, which makes it possible to significantly save capital investments, use the existing skilled workforce to develop new products without attracting additional personnel. The reconstruction is aimed at increasing the technical level of production and products and contributes to a faster development of production capacities.

Reconstruction and technical re-equipment of an enterprise are more efficient than, for example, new construction, and are distinguished by a more progressive structure of capital investments. At the same time, mainly the active part of fixed assets is updated without significant costs for the construction of buildings and structures.

Increasing the volume of products produced allows you to receive large incomes by increasing profits, and, in addition, to win a large share of the market, thereby exerting its influence on it.

The release of new products leads to an increase in profits, contributes to the diversification of production, which reduces the risk associated with fluctuations in demand for certain types manufactured products.

To carry out internal investment activities, an enterprise needs financial resources that it can raise from its own resources or use borrowed ones. So, for example, with relatively small amounts of capital expenditures or a gradual phased implementation of technical re-equipment or reconstruction, retained earnings are used. However, it should be noted that in the current operating conditions, all retained earnings are used to maintain the stability of the production process.

Equity capital occupies a special place among the firm's own investment sources. Due to its increase, rather large projects related to the technical re-equipment, modernization or reconstruction of the enterprise can be effectively financed. However, it should be borne in mind that this path is associated with significant difficulties associated primarily with the issue of shares, their placement and maintaining control over the activities of the enterprise.

One of the most effective ways to finance the industrial and technical development of an enterprise is an investment loan for a period of more than one year. The most commonly used collateral for investment loans in Russian conditions are various types of collateral, assignment of rights, surety and bank guarantee. The most common form of collateral is a pledge of fixed assets, i.e. technological equipment and real estate. When financing investment projects, the equipment that is purchased with credit money is almost always pledged.

Finally, relatively new in terms of Russian economy and already quite traditional abroad by attracting the necessary resources for the reconstruction and development of the enterprise is financial leasing. This type of lease provides for the full reimbursement of all expenses of the lessor for the acquisition of property and its transfer for production use to the lessee. Early termination of the contract is not allowed, otherwise all losses of the lessor are compensated. Usually, maintenance of equipment (supply of spare parts, adjustment and repair) by the lessor is not provided. The lessee receives the equipment for its production use for the term of the contract. At the end of this term, depending on the terms of the contract, the property is returned to the lessor or the lessee can buy it at the residual value. It should also be noted that, unlike an investment loan, in the case of financial leasing, not only interest, but also principal payments can be attributed to the cost of production.

The issue of bonds is also one of the recognized and traditional sources in the world practice for attracting additional financial resources necessary for industrial and technical development and the implementation of large-scale projects.

2.2 Financial activities as one of the main activities of the organization

Financing activities are activities that result in changes in the size and composition of the company's capital and borrowings. The activities of the organization, as a result of which the value and composition of the organization's equity capital, borrowed funds (receipts from the issue of shares, bonds, the provision of loans by other organizations, the repayment of borrowed funds, etc.) change.

Functions of finance of economic entities are implemented at the level of microeconomics. They are directly related to the formation and use of the monetary funds of enterprises in the conditions of their economic isolation and the satisfaction of the needs of a given economic unit on a reimbursable equivalent basis. This is due to the receipt of funds and the implementation of cash costs, realized in four cash flows, reflecting the entire monetary economy of the enterprise in value form. Therefore, we can say that the finance of enterprises perform the following functions.

Regulation of cash flows of an enterprise in order to ensure a balance of cash and material material flows and the formation of financial resources necessary for conducting statutory activities and fulfilling obligations: choosing a legal form, type, scope entrepreneurial activity, determination of ways to form the authorized capital and attract additional funds; formation organizational structure financial management in order to optimize cash flows; formation of accounting policy; tax planning, etc.

Formation of capital, cash income and funds in order to provide sources for the development of the enterprise and achieve it financial stability: formation of the authorized capital; attracting sources in the stock market for development purposes; attracting credits, loans and other types of borrowed sources; accumulation of funds as a result of product sales; attraction of special earmarked funds.

The use of capital, income and cash funds in order to ensure the development of the enterprise: investment optimization; ensuring tax and other obligatory payments to the budget and off-budget funds; investing in the most liquid assets.

The specific implementation of these functions is carried out by the financial services of enterprises, financial managers, using a wide range of special levers and methods developed by a relatively new direction - financial management.

The financial relations of an enterprise arise when, on a monetary basis, the formation of the enterprise's own funds, its income, the attraction of borrowed sources of financing of economic activity, the distribution of income generated as a result of this activity, and their use for the development of the enterprise.

The organization of economic activity requires appropriate financial support, i.e. initial capital, which is formed from the contributions of the founders of the enterprise and takes the form of authorized capital. This is the most important source of formation of the property of any enterprise. Specific methods of formation of the authorized capital depend on the organizational and legal form of the enterprise.

When creating an enterprise, the authorized capital is directed to the acquisition of fixed assets and the formation of working capital in the amount necessary to conduct normal production and economic activities, it is invested in the acquisition of licenses, patents, know-how, the use of which is an important income generating factor. Thus, the initial capital is invested in production, in the process of which value is created, expressed by the price of products sold. After the sale of products, it takes the form of money - the form of proceeds from the sale of manufactured goods, which is credited to the settlement account of the enterprise.

Revenue is not yet income, but a source of reimbursement for the funds spent on the production of products and the formation of cash funds and financial reserves of the enterprise. As a result of the use of proceeds, qualitatively different components of the created value are distinguished from it.

First of all, this is due to the formation of an amortization fund, which is formed in the form of depreciation deductions after the depreciation of fixed production assets and intangible assets takes the form of money. A prerequisite for the formation of an amortization fund is the sale of manufactured goods to the consumer and the receipt of proceeds.

Since the material basis of the created goods is made up of raw materials, materials, purchased components and semi-finished products, their cost, along with other material costs, depreciation of fixed production assets, wages of workers, is the costs of the enterprise for the production of products, which take the form of cost. Until the proceeds are received, these costs are financed from the working capital of the enterprise, which are not spent, but are advanced into production. After the receipt of proceeds from the sale of goods, working capital is restored, and the costs incurred by the enterprise for the production of products are reimbursed.

The separation of costs in the form of cost makes it possible to compare the proceeds received from the sale of products and the costs incurred. The meaning of investing in the production of products is to obtain net income, and if the proceeds exceed the cost, then the company receives it in the form of profit.

Profit and depreciation are the result of the circulation of funds invested in production, and relate to the company's own financial resources, which they manage independently. Optimal use of depreciation and profit for the intended purpose allows you to resume production on an expanded basis.

Conclusion

The division of the entire activity of the enterprise into three independent areas is very important in Russian practice, since a good (i.e. close to zero) total cash flow can be obtained by offsetting the negative cash flow from the main activity by inflows from the sale of assets (investment activities) or attracting bank loans (financial activity). In this case, the value of the total flow masks the real unprofitability of the enterprise.

Primary activity. The receipt of cash from current activities is expressed in terms of proceeds from the sale of goods, products, services and advances received from customers. Since the main activity of the company is the main source of profit, it should also be the main source of cash. The expenditure of funds from current activities consists of payment for goods, works and services, wages, deductions for social needs, accountable amounts issued for the needs of current activities, payment of accrued taxes and advance payments to the budget, advances to suppliers.

In this case, the main direction of analysis is the quality of receipts, management current assets and management of current liabilities.

Investment activities. The cash flow from investment activities consists of proceeds from the sale of fixed assets (machinery, buildings, equipment) and other property, dividends and interest on long-term financial investments (shares or other securities of other enterprises), proceeds in connection with the issuance of bonds and other securities. long-term securities. The expenditure of funds from investment activities takes place in connection with the acquisition of fixed assets and intangible assets, the payment of equity participation in construction and other capital investments, the acquisition of long-term securities and the implementation of long-term financial investments (equity construction), the payment of dividends and interest on issued shares and other long-term securities.

Sources of funds for the company's investment activities can be: proceeds from core activities (depreciation and retained earnings); income from the investment activity itself or income from attracting sources of long-term financing (equity capital and long-term loans and borrowings).

When doing business well, the company seeks to expand and modernize its production facilities, so investment activities in general lead to temporary cash outflows.

Financial activities. The receipt of funds from financial activities is reduced to receipts in connection with the issue of short-term securities, receipts from the sale of previously acquired short-term securities, obtaining loans and borrowings, etc. The expenditure of funds from financial activities consists of the acquisition of short-term securities, the repayment of loans and borrowings, etc.

Annual short-term lines, or revolving credit, is a method that is suitable for growing companies to finance "permanent" working capital gains. From an analytical point of view, the main consideration is whether the revolving loan repayments coincide with the terms of the operating cycle, and therefore whether the company is able to repay debts. Obviously, with the annual renewal of annual credit lines they require careful analysis from the standpoint of the future growth of the firm and the adequacy of the reserves to cover losses on the accounts that are funded in this way.

Financial activities are designed to increase the funds at the disposal of the company for financial support of the main and investment activities.

List of used literature

1. Belousova O.M. Investment situation in Russia (conditions for investment activity of enterprises and organizations) // Uchenye zapiski Rossiiskoi gosudarstvennogo sotsial'nogo universiteta. - 2007. - No. 1. - S. 67-74

2. Vasil'eva N.A., Mateush T.A., Mironov M.G. Enterprise economy. Lecture notes. – M.: Higher education, 2008.

3. Vasil'eva N.A., Mateush T.A., Mironov M.G. Enterprise economy. Lecture notes. – M.: Yurayt, 2009

4. Volkov O.I., Sklyarenko V.K. Enterprise economy. Lecture course. – M.: Infra-M, 2009

5. Erokhina L.I., Bashmachnikova E.V., Marchenko T.I. Economics of the enterprise in the sphere of commodity circulation. – M.: KnoRus, 2009

6. Zhuravlev P.V., Bannikov S.A., Cherkashin G.M. Economics of the enterprise and entrepreneurial activity. - M .: Exam, 2008

7. Zabrodskaya N.G. Economics and statistics of the enterprise. - M .: Publishing house of business and educational literature, 2007

8. Krum E.V. Enterprise economy. – M.: TetraSystems, 2009

9. Kulikova E.A. Study of the growth factors of the effectiveness of economic and financial activities of enterprises // Omsk Scientific Bulletin. - 2006. - No. 4. - S. 160-163

10. Prosvetov G.I. Enterprise economy. Tasks and solutions. - M.: Alfa-Press, 2008

11. Samoilovich V.G., Telushkina E.K. Enterprise economy. - M.: Academy, 2009

12. Safronov N.A. Economics of the organization (enterprise). - M .: Master, 2009

13. Sklyarenko V.K., Prudnikov V.M., Akulenko N.B., Kucherenko A.I. Economics of the enterprise (in diagrams, tables, calculations). – M.: Infra-M, 2009

14. Economics of an enterprise (firm) / Edited by A. S. Pelikh. - M.: Eksmo, 2006

15. Enterprise Economics / Edited by V. M. Semenov. - St. Petersburg: Peter, 2008

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1.1 Main activities of the enterprise

Current (main, operating) activity - the activity of an organization that pursues profit making as the main goal, or does not have profit making as such in accordance with the subject and goals of the activity, i.e., production of industrial, agricultural products, construction work, sale goods, the provision of catering services, the procurement of agricultural products, the leasing of property, etc.

Inflows from current activities:

receipt of proceeds from the sale of products (works, services);

Receipts from the resale of goods received by barter;

Receipts from the repayment of receivables;

advances received from buyers and customers.

Outflows from current activities:

payment for purchased goods, works, services;

Issuance of advances for the purchase of goods, works, services;

payment of accounts payable for goods, works, services;

· salary;

payment of dividends, interest;

· payment according to calculations on taxes and fees.

Inflows from investment activities:

receipt of proceeds from the sale of non-current assets;

receipt of proceeds from the sale of securities and other financial investments;

income from the repayment of loans granted to other organizations;

receiving dividends and interest.

Outflows from investment activities:

payment for acquired non-current assets;

payment of acquired financial investments;

· issuance of advances for the acquisition of non-current assets and financial investments;

granting loans to other organizations;

· Contributions to authorized (share) capitals of other organizations.

Financial activities - the activities of the organization, as a result of which the value and composition of the organization's own capital, borrowed funds change.

Cash inflows from financing activities:

Receipt from the issue of equity securities;

income from loans and credits provided by other organizations.

Outflows from financial activities:

repayment of loans and credits;

Repayment of financial lease obligations.

1.2 The essence and objectives of operating activities

The current activity of the enterprise is aimed primarily at extracting profit from the assets at its disposal. When analyzing this process, the following quantities are usually taken into account:

Earnings before income tax and interest, EBIT (Earnings before Interest and Taxes). Calculated by subtracting depreciation charges from BREI;

· economic profitability, or income generation ratio (ERR), already mentioned earlier in the section on analysis using financial ratios. Calculated as EBIT divided by the total assets of the enterprise;

Achieving a high rate of economic profitability is always associated with the management of its two components: commercial margin and asset turnover. As a rule, an increase in asset turnover is associated with a decrease in commercial margin and vice versa.

The amount of cash flows generated from operating activities is a key indicator of the extent to which a company's operations generate sufficient cash flows to repay loans, maintain operating capacity, pay dividends and make new investments without recourse to external sources of funding. Information about the specific components of initial operating cash flows, combined with other information, is very useful in predicting future operating cash flows.

cash receipts from the sale of goods and the provision of services;

cash receipts from rent, fees, commissions and other income;

cash payments to suppliers for goods and services;

cash payments to employees and on their behalf;

cash receipts and payments of the insurance company as insurance premiums and claims, annual premiums and other insurance benefits;

cash payments or income tax compensation, unless they can be linked to financial or investment activities;

One of the simplest but most effective types of financial analysis is operational analysis, called CVP (cost-volum-profit, costs - volume - profit).

The purpose of the analysis of operating activities is to track the dependence of the financial results of the business on costs and sales volumes.

The main task of CVP analysis is to get answers to important questions that entrepreneurs have at all stages of money circulation, for example:

How much capital does a business need to have?

How to mobilize these funds?

To what extent can financial risk be reduced using the effect of financial leverage?

Which is cheaper: buying or renting real estate?

Is it worth it to sell products at prices below cost?

Should we produce more of this or that product?

How will a change in sales volume affect profits?

Cost allocation and gross margin

CVP - analysis serves to find the optimal, most beneficial costs for the enterprise. It requires the allocation of costs to variable and fixed, direct and indirect, relevant and irrelevant.

Variable costs generally change in direct proportion to the volume of production. These can be the costs of raw materials and materials for the main production, the wages of the main production workers, the cost of selling products, etc. It is beneficial for the enterprise to have fewer variable costs per unit of output, since this way it ensures itself, respectively, more profit. With a change in the volume of production, total variable costs decrease (increase), at the same time, they remain unchanged per unit of output.

Fixed costs must be considered in the short term, the so-called relevant range. In this case, they generally do not change. Fixed costs include rent, depreciation, salaries of managers, etc. Changes in the volume of production have no effect on the size of these costs. However, in terms of a unit of output, these costs change inversely.

Relevant costs are costs that depend on management decisions.

Irrelevant costs do not depend on management decisions. For example, the manager of an enterprise has a choice: to produce the necessary part for the mechanism or to buy it. The fixed cost of producing the part is $35, and you can buy it for $45. So, in this case, the supplier price is the relevant cost, and the fixed cost of production is the irrelevant cost.

The sums of fixed and variable costs represent the total costs for the entire volume of production.

Ideal conditions for business - a combination of low fixed costs with high gross margins. Operational analysis allows you to establish the most beneficial combination of variable and fixed costs, prices and sales volume.

There are three types of leverage, which are determined by recomposing and disaggregating income statement items.

The risks associated with the enterprise have two main sources:

Volatility of the financial conditions of lending, the uncertainty of the owners of shares in the return of investments in the event of the liquidation of an enterprise with a high level of borrowed funds, in fact, the very action of financial leverage generates financial risk.

Thus, the purpose of the break-even analysis of activities is to establish what will happen to financial results if a certain level of productivity or production volume changes.

Break-even analysis is based on the relationship between changes in production volume and changes in total profit from sales, costs and net income.

The break-even point is understood as such a point of sales at which costs are equal to the proceeds from the sale of all products, that is, there is neither profit nor loss.

To calculate the break-even point, 3 methods can be used:

Equations

Marginal income;

graphic image.

Despite the difficult economic conditions that enterprises are in today (lack of working capital, tax pressure, uncertainty about the future and other factors), nevertheless, each enterprise must have a strategic financial plan, a budget for a certain period: a month, a quarter, a year or more for which the company should implement a budgeting system.

Budgeting is the process of planning the future activities of an enterprise and formalizing its results in the form of a system of budgets.

The objectives of budgeting are as follows:

· maintenance of current planning;

Ensuring coordination, cooperation and communication between departments of the enterprise;

to force managers to justify quantitatively their plans;

· substantiation of expenses of the enterprise;

· formation of base for an estimation and control of plans of the enterprise;

Compliance with the requirements of laws and contracts.

The budgeting system at the enterprise is based on the concept of centers and accountability.

Responsibility center is an area of activity within which a manager is personally responsible for the performance indicators that he is obliged to control.

definition of responsibility centers;

· budgeting for each responsibility center;

regular reporting on performance;

· Analysis of the causes of deviations and evaluation of the activities of the center.

Maintaining budgeting will allow the company to save financial resources, reduce non-production costs, achieve flexibility in managing and controlling product costs.

1.3 Management of the cash flows of the organization in the activities of the organization

The cash flow from current activities is characterized by the following features:

current activity is the main component of all economic activity of the organization, therefore, the cash flow generated by it should occupy the largest share in the total cash flow of the organization;

forms and methods of current activities depend on industry characteristics, therefore, in different organizations, cash flow cycles of current activities can vary significantly;

· Operations that determine the current activity are distinguished, as a rule, by regularity, which makes the monetary cycle quite clear;

current activities, and hence its cash flow, are inherent in operational risks that can disrupt the cash cycle.

The cash flow from investing activities is characterized by the following features:

· the inflow of funds from investment activities in time is usually significantly distant from the outflow, i.e. the cycle is characterized by a long time lag;

investment activity has various forms (acquisition, construction, long-term financial investments, etc.) and different directions of cash flow in certain periods of time (as a rule, initially outflow prevails, significantly exceeding inflow, and then vice versa), which makes it difficult to represent its cash flow cycle flow in a fairly clear pattern;

The cash flow cycle of financial activity is the period of time during which money invested in profitable objects will be returned to the organization with interest.

The cash flow from financing activities is characterized by the following features:

financial activity is directly related to the financial market and depends on its state. A developed and stable financial market can stimulate the financial activity of the organization, therefore, provide an increase in the cash flow of this activity, and vice versa;

· financial activities are characterized by specific types of risks, defined as financial risks, which are characterized by a special danger, therefore, they can significantly affect the cash flow.

Types of economic activity

There are several types of business activities:

A household is a household run by a group of people living together.
A small enterprise is an economic unit, engaged in the manufacture of a relatively small amount of goods. The owner of such an enterprise can be one person or several. As a rule, the owner uses his own labor or employs a relatively small number of workers.
Large enterprises are enterprises that produce goods in bulk. As a rule, these enterprises are formed by combining the property of the owners. An example of which enterprise is a joint-stock company.
The national economy is an association economic activity nationwide. To a certain extent, this activity is directed by the state, which, in turn, tries to ensure the sustainable growth of the country's economy and thereby increase the welfare of the entire population.
The world economy is an economic system in which there are interconnections various countries and peoples.

Forms of economic activity

Definition 1

The form of economic activity is a system of norms that determines the internal relations of the partners of the enterprise, as well as the relationship of this enterprise with other counterparties and government agencies.

There are several forms of economic activity:

Individual form;
collective form;
corporate form.

Under individual form of economic activity refers to an enterprise whose owner is either an individual or a family. The functions of the owner and entrepreneurs are combined in one entity. He receives and distributes the income received, and also bears the risk from the implementation of his economic activities and has unlimited property liability to his creditors and third parties. As a rule, such enterprises are not legal entities. The owner of this enterprise can attract additional hired labor, but in a rather limited amount (no more than 20 people).

If speak about collective form economic activity, then there are three types of them: business partnerships, business companies, joint-stock companies.

Business partnerships may be in the form: full partnership and fellowship of faith. A general partnership is an organization based on collective ownership. As a rule, it is an association of several individuals or legal entities. All participants in this type of partnership bear full unlimited liability for all obligations of the partnership. The property of a full partnership is formed at the expense of the contributions of its participants and the income received in the course of carrying out their activities. All property belongs to a participant in a general partnership on the basis of shared ownership.

A limited partnership is an association where one or more of its owners are fully liable for all the obligations of the partnership, the remaining investors are liable only to the extent of their capital.

To business companies include: society with limited liability, additional liability company. A limited liability company is an enterprise that is created by combining the contributions of legal entities and individuals. At the same time, the number of participants in a limited liability company cannot exceed the established limit, otherwise this company will be transformed into a joint-stock company within a year.

Additional Liability Company is an organization that authorized capital divided into shares, the size of which is determined in advance. This type society is formed by one or more persons. For all obligations of the company, all its founders bear subsidiary liability in the amount that is a multiple of the value of the contribution to the authorized capital.

Joint-stock company is a form of economic activity, all the funds of which are formed by combining the capital of the founders, as well as the issuance and placement of shares. Members of a joint-stock company are liable for all obligations of the company in the amount equal to the contributions.

In order to protect their commercial interests and increase the efficiency of using the capital of an enterprise, various organizational and legal forms can be combined into so-called corporate forms of entrepreneurship. These include: concerns, consortium, intersectoral and regional unions.

Concern is an association of organizations that carry out joint activities voluntarily. As a rule, concerts have scientific and technical functions, functions of production and social development, functions foreign economic activity and etc.

Consortium- association of the organization for the solution of certain problems, created for a while. In our country, a consortium is being created to implement government programs by organizations of any form of ownership.

Industry and regional alliances are an association of organizations on contractual terms. These unions are created to carry out one or more production and economic functions.

Organization of economic activity

The organization of economic activity goes through three stages:

Stage 1 - opportunity assessment. Initially, an objective assessment should be made of all the resources necessary for the production process. For these purposes, it is advisable to use scientific developments. The main advantage of this stage is that it helps to give a preliminary assessment of the potential for production of products precisely in those volumes and under those conditions that will be investigated, and on the basis of which the decision to launch the production of a particular product will be approved. After the production potential of the organization has been studied, the production line is launched within the framework of the formed plan.
Stage 2 - launch of ancillary production. Implementation this stage takes place only if necessary. Ancillary production is quite a necessary measure, since it helps to develop new market segments and increase the chance of the organization's financial development being effective. Maintenance of the organization can be carried out both on its own and with the help of third-party organizations and resources. At this stage, services are used to optimize the activities of production and evaluate the potential costs of funds. At the next stage, work is carried out aimed at studying the sales market and the possibilities of selling products.
Stage 3 - marketing of products. All stages affecting the sale of products are monitored. At the same time, accounting sold products, forecasts are compiled and studied, allowing to make competent decisions of the organization's management. There are situations when it is necessary to develop a methodology for after-sales service. For example, when establishing a warranty period for their products.

Analysis of the economic activity of the enterprise. The concept of economic activity of an enterprise, its economic legal relations, their characteristics

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Similar Documents

Introduction

Chapter 1. Fundamentals of the economic activity of the enterprise

1.1 Main activities of the enterprise

1.2 The essence and objectives of operating activities

1.3 Management of the cash flows of the organization in the activities of the organization

Chapter 2. Investment and financial activities of enterprises

2.1 Features of investment activity

2.2 Financial activities as one of the main activities of the organization

Conclusion

List of used literature

Tutoring

Forms of economic activity

Organization of economic activity

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Analysis of the economic activity of the enterprise. The concept of economic activity of an enterprise, its economic legal relations, their characteristics

Send your good work in the knowledge base is simple. Use the form below

Similar Documents

Introduction

Chapter 1. Fundamentals of the economic activity of the enterprise

1.1 Main activities of the enterprise

1.2 The essence and objectives of operating activities

1.3 Management of the cash flows of the organization in the activities of the organization

Chapter 2. Investment and financial activities of enterprises

2.1 Features of investment activity

2.2 Financial activities as one of the main activities of the organization

Conclusion

List of used literature

Tutoring

Forms of economic activity

Organization of economic activity

We also recommend