Analysis techniques: classification, methods and methods, scope

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Let's start with a general concept. Analysis is an ancient Greek word denoting the division of an object or phenomenon into constituent elements for their detailed study. For example, when a child unscrews a doll's head to see what is beeping inside it, he is analyzing its device. The familiar phrase "spectral analysis" also studies the composition of objects, but without twisting the head, but with the help of a special technique - studying the emission spectra of matter.

Definition

You can study almost everything with the help of analysis. We will focus on economic analysis, which in its essence is fully consistent with the original Greek meaning.

Economic analysis is a study of the economic activity of an enterprise through the study of individual indicators. In other words, this is the division of one whole into elements. Everything is being studied: the causes of changes in such indicators, the relationship between them and other phenomena, etc.

Today inIn the financial and analytical business sphere, a magnificent collection of methods of economic analysis has gathered. There are many methods, they differ in goals, ways of grouping them, mathematical nature, and so on. It is extremely interesting to study them, and to apply them correctly is a real intellectual pleasure.

What and why is analyzed

The main area of interest for economic analysis is the current activities of the enterprise with the study of its property and financial condition. The scope of such a study may include production and logistics components, the functioning of individual units, and so on. The set of indicators depends solely on the objectives of a particular study, although the general goal of any economic analysis is always the same: the search for reserves and additional resources to improve business efficiency.

Not everyone agrees that the methods of analysis in economics are a science, although the expression "the theory of economic analysis" is very popular in many sources. Methods and technologies for its implementation are well described, tested and structured, which makes the subject of economic analysis a full-fledged academic discipline.

How it all started

It was the gradual transformation of a bookkeeper in black sleeves with wooden abacus on the table into a financial analyst with a sky-high salary and a silver laptop in his hands. Accounting has been for a long time the main source of information about the financial and general economic condition of the enterprise. This account consisted ofindividual indicators. For a long time, accountants have been interested in everything: where did the money come from, what is with the reserves, what threatens stability, and so on. They had two powerful aids in analysis at their disposal: mathematics and statistics.

Surprisingly, in most companies, the share of informational contribution from accounting to the overall analysis is still about 70%.

In modern formats of economic analysis, all aspects of the economic activity of companies are studied. Progress in the development of ways to collect and process information is huge. Without a preliminary economic analysis today, no one will start any reforms, innovations or new lines of business. Competent analysis today is an integral part of an effective and developing business.

Classification of methods of economic analysis

All types and methods of analytical research of the company's activities are divided into two groups of analysis:

1. Managerial.
2. Financial.

Such a division of methods and techniques of economic analysis is due to the difference in the content and objectives of the study.

Before reviewing the main types, it should be noted that recently the separation of analytical methods in business has become more and more conditional. However, in order to understand and competently choose methods in your work, it is better to study the methods of analysis in the traditional way: method by method.

Financial analytics

Financial analysis is divided into tworesearch subspecies:

• External financial analysis is carried out solely to assess the overall financial situation in the company, including its liquidity, solvency and other indicators. Such checks are carried out by banks, audit firms, tax inspectorates - all who are instructed by interested or authorized organizations.
• Internal financial analysis can be carried out with a variety of tasks. Although such a study is carried out in-house, it is much tougher and more critical than all external reviews. Methods and techniques of economic analysis for internal use allow you to control profitability and profit in dynamics, track the efficiency of using your own and borrowed funds, determine the company's portfolio value with fixing points of change, and so on. The indicators are varied and very serious. Such methods of analysis are always aimed at finding management solutions to optimize the work and improve the financial landscape of the company. Therefore, the difference between internal financial and management analysis is sometimes blurred.

Management Analytics

Management analysis is for internal use only. The scope of questions and indicators in this case is extremely broad and can change as needed. With this type of research, almost all structural divisions of the company take part in the collection of information and its analysis. Often we are talking about technical or production indicators that require study. This may also includevarious kinds of "resource" issues: the efficiency of the use of fixed assets, human resources, consumables. The most important part of management analysis are indicators related to the sale of goods or services: their volume, cost, changes in customer preferences. Methods and techniques of economic analysis for management decisions can be very diverse, there are no limits on the format of research.

Methods of analysis by functions and tasks

Let's consider different methods of analyzing the state of the company.

1. Marketing

One of the most common analysis techniques for assessing various markets: consumables and raw materials for production, distribution, competitors, customer groups, etc.

2. Investment

One of the most serious and full-fledged types of research, which is regarded by many experts as a completely independent element of the theory of investment, although in essence it is a close "relative" of internal financial analysis. The goal in this method is extremely simple: to evaluate the object for making an investment decision. Hence the wide coverage of indicators with the most detailed specification and monitoring of changes in these indicators in dynamics.

3. Functional cost

Great for systems research when you need information about a specific process, product, department, or management level. Usually the task is to find cost minimization in a particular economic sector.

Types of analysis byscope of activities

Comprehensive or complete type of analysis is widely used, which includes all aspects of the company's activities.

There is also a thematic analysis that looks at individual elements. This may be, for example, an analysis of the reasons for the high turnover of human resources in the company.

The variety of objects of study can be attributed to such criteria. The analysis may refer to microeconomic studies of individual economic units: workshop, warehouse, repair base, factory, etc.

Macroeconomic analysis deals with individual industries, regional economies or complex cross-industry studies.

Economic analysis by timing

Research can be carried out for a different period of the company's activity. There are the following types of economic analysis:

• Preliminary. Especially useful when developing a business plan or any other new project. The purpose of such an analysis is usually to find out whether the company or its division is able to cope with the planned volumes and changes.
• Current. It often resembles the classic operational reports that are placed every morning on the manager's desk. Today they may not be on the table, but on the monitor screen, but the essence remains the same: according to the specified parameters, an operational report is prepared to monitor economic activity in dynamics.
• Final. Extremely useful information that some managers neglect. It's retrospectivethe study of past periods can help draw valuable conclusions for future strategies and optimization of the company.
• Promising. He is engaged to a greater extent not in predicting the future, but in accurately calculating the expected results in the planned period of time. Professional foreshortening should play a critical role in future business development plans.

Analysis of quantity and quality

The classification of methods and techniques of economic analysis includes two types of research, which could be designated as "mathematical" and "lyrical". Both fit perfectly into the concept of "the unity of opposites."

Factor (quantitative) analysis

The most popular method among financiers and accountants allows you to get information based on a comparison of quantitative indicators. Both absolute and relative values are used here. This type of analysis involves various types of comparison: with averages, with the best, worst, with the past. In such cases, statistical methods of economic analysis are very popular. Many enterprises also use traditional accounting methods in the form of a double entry and a balance sheet.

Chain substitutions, mathematical groupings, indexing, integral formulas - all this refers to the methods of analyzing a "mathematical" subgroup.

Qualitative analysis

Here, comparative characteristics and expert opinions are assumed to a greater extenteconomic processes and phenomena. There are more “lyrics” in this technique: it can even be business games or brainstorming, scenario development and other methods of facilitation of expert groups. The main thing is to correctly compare the array of information received and arrange it in the form of a coherent resume. Qualitative analysis is best done by experienced professionals so that the risk of information distortion due to the subjectivity of the opinions of individual experts does not materialize.

Variability of methods of economic analysis

We looked at many types of research on the economic situation of companies. In addition, there is an express analysis.

In this case, the name speaks for itself. In some urgent situations, it is not necessary to use the basic techniques and methods of economic analysis in the form of fundamental research of a full array of indicators. If, for example, during a tender, you need reliable information about a counterparty, an express diagnostic of the company's financial condition using the analysis of selected key indicators will be quite enough.

In some cases, the margin method is used.

This is already a technique and method of economic analysis with mathematical modeling, the purpose of which is to find and determine the best option for any problem. The margin method is associated with the calculation of the breakeven point. The main indicator is marginal income, which must be made higher by all means, since the size and speed of profit depends on it. Purelymathematically, marginal income is the difference between sales revenue before taxes and variable costs.

Dynamic and static methods of research should also be mentioned.

In fact, these methods are opposite to each other. If the static analysis includes unchanged performance indicators, then the dynamic one deals with the control and monitoring of a block of indicators in the course of their changes over time. The reporting period can be any - from a month to a decade. The main thing is to track the dynamics of changes with their key factors. This can be, for example, the growth rate of total costs or the dynamics of revenue from sales of products.

Criterion - efficiency

Operational economic analysis can be applied at any level of management or functional unit. Its main advantage is the timeliness of the research and the maximum temporal proximity to the processes of economic activity. This is not an express analysis, where the minimum required number of indicators is examined. Operational analysis can be carried out covering a large number of indicators. In most cases, the purpose of this analysis technique is to find the causes of failures or failures for immediate solutions to eliminate them.

Results are the most important

The final economic analysis is the most complete and detailed type of economic study of the company's performance. It belongs to the main methods of economic analysis and is prepared based on the results of various enterprise reports. Suchthe study gives a final assessment of the company's activities for a specific period (most often for a year). This type of analysis is the most accurate tuning fork in setting up the company to improve the quality of work in the future. This can only be done by honestly and most objectively examining all activities with a special focus on areas that can be optimized or improved.

No one will say how many modern methods of economic analysis exist today. Because it is one of the most volatile areas of the business economy. The choice of method for research and assessment of the real state of affairs depends on many factors. But there is one unshakable rule in general: conduct economic analysis constantly and in the most serious way.