Diagnóstico economico y financiero de la empresa

This diagnostic analyses the present situation and future prospects of a business in order to evaluate its capacity to compete, take decisions and for make plans. The business's strategy and its relation to the larger environment should be the basis of the diagnostic so as to be aware of what has happened and understand the behaviour of the activity. The sequence of analysis-understanding, understanding-knowing how, knowing how-prediction, prediction-action avoids the errors of ordinary analyses. The economic-financial area falls within the diagnostic and covers such subjects as growth, profitability, productivity of processes and resources, liquidity, solvency, financial structure, value and risk. However, this specialised analysis supports the general diagnostic since every action taken by the business has repurcussions on its balance sheet.