Why is it important to know the company's profit viber database growth rate?
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In this regard, 90% of available opportunities should be used in financial management. Accordingly, one of the most important conditions for improving the efficiency of current assets management is the reduction of the financial cycle (the turnover period of net working capital). At the same time, accounts receivable and accounts payable should be maintained in an acceptable ratio so that the company's financial management is effective. Based on the data in the statement of changes in equity, you can calculate the stability coefficient of the economic development of your business to assess the financial condition of the company.
The coefficient of stability of economic development is an indicator based on which the development potential of a commercial enterprise is judged by internal reserves. It demonstrates the average rate of increase (decrease) in equity capital due to current activities without attracting external sources of financing. The relative value of commercial and management expenses is associated with the volume of revenue from sales, and accordingly, with the turnover of capital: the higher the turnover rate, the less of these expenses are incurred for each turnover.
It should be said that identifying acceptable and economically justified rates of company development is one of the most important tasks for financial management, and the coefficient of economic development stability is one of the tools used in making decisions on the future activities of the company.
Based on the results of the analysis, proposals are made to improve the value of the stability coefficient of business economic development. This is done so that the financial and economic activities of a commercial enterprise become more efficient.
