An adequate analysis of the cyclical movement of the economy must be based on the movement of many key economic variables, not solely on the movement of social output. Numerous theories have been developed about the causes of cyclical fluctuations in the real economy, primarily based on the notion that cyclical movements can stem from exogenous or endogenous disturbances and shocks. During the expansion phase, companies typically experience improved resultsand higher profitability, whereas during the contraction phase, they may face declining sales, reduced revenue, and business challenges. Macroeconomic factors interact with each other and can have complex and varied impacts on business cycles, their impact can be complex, so understanding and monitoring macroeconomic factors is key to predicting and adapting to business cycles and making informed decisions in business. In addition, business cycles are a natural part of economic development and are subject to fluctuations, often resulting from a combination of various macroeconomic factors. It is important to note that the use of leverage largely depends on the specific conditions and strategy of each company. Borrowing and leverage levels should be carefully measured taking into account the current economic situation, as well as risk and return on investment opportunities.
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