Economic analysis of a business

An active and productive business cannot be envisaged, either in theory or in practice, without financial-economic process planning and regular pursuit of implementing its objectives. Once company owners and managers have set the strategic aims of their business development, instruments are needed to help determine the company's operation results and whether or not they are good enough to achieve the aims set up previously.

The different methods used to analyse the economics and finances of a business may be seen as such an instrument, which allows assessment of a company's results from various angles and make decisions for further actions. As the main indicators of a company's economic activities and evaluation of its financial position, the invested capital returns, solvency, liquidity and activity have to be mentioned.