The turnover ratio of current assets. Duration of one turnover or turnover of working capital

1. Turnover in days (duration of one turnover) - shows the number of days during which working capital makes a complete circuit:

T - calendar number of days in the period;

Ko - turnover ratio of working capital;

Вр - proceeds from sales;

Average working capital balances.

2. The turnover ratio of working capital characterizes the number of turnovers that are made by working capital for the analyzed period.

There is an obvious relationship between these two turnover ratios.

3. The amount of working capital attributable to one ruble of sold products (fixing factor) is the reciprocal of the turnover ratio. It is determined by the formula:

Turnover can be calculated for all working capital and for their individual types.

The calculation of the turnover of certain types of working capital allows, to some extent, to determine the contribution of each division of the enterprise to improving the efficiency of the use of working capital.

In each case, the actual turnover of one period is compared with a similar indicator for another period to identify the degree of acceleration or deceleration of turnover and the amount of funds additionally involved in turnover or diverted from turnover.

Also, when analyzing normalized working capital, the actual turnover can be compared with the planned one.

1. Turnover of funds in settlements (accounts receivable) (in turnover).

It is defined as the ratio of sales proceeds to average receivables. Shows the expansion or decline of commercial credit provided by the enterprise.

SDZ - average receivables

2. Turnover of funds in settlements (in days) - characterizes the average maturity of receivables, a decrease in the coefficient is positively assessed.

3. Inventory turnover (in turnovers) - reflects the number of turnovers of inventories and costs of the enterprise for the analyzed period. A decrease in the coefficient indicates a relative increase in inventories and work in progress.

4. Inventory turnover in days is determined by the formula

The effective functioning of any enterprise is impossible without the competent and rational use of working capital. Depending on the type of activity, the stage of the life cycle, or even the time of year, the amount of working capital for an organization may be different. However, it is the availability and competent use of these resources that determines how successful and long the activity of any business entity will be.

In order to assess the literacy of the use of working capital of a company, there are many coefficients that analyze the speed of circulation, sufficiency, liquidity and many other equally important characteristics. One of the most important indicators necessary to determine the financial condition of the organization is the turnover ratio of working capital.

Turnover ratio (K about), or the rate of turnover, shows how many times during the study period the company is able to fully wrap its own working capital. Thus, this value characterizes the efficiency of the firm. The larger the value obtained, the more successfully the company uses its available resources.

Formula and calculation

The turnover ratio shows the number of revolutions that make working capital for the considered period of time. It is calculated as:

Where:

Q p is the volume of products sold in wholesale prices of the organization, excluding VAT;
F ob.av. - the average balance of working capital found for the study period.

If we recall the approximate form of the cycle of circulation of funds in an enterprise, it turns out that the money that the organization invests in the work of its company returns to it after some time in the form of finished products. The company sells these products to its customers and again receives a certain amount of money. Their value is the income of the organization.

Thus, the general scheme "money-goods-money" implies a cyclical nature of the company's activities. The turnover ratio in this case shows how many such cycles the organization's funds can make in a certain period of time (most often in 1 year). Naturally, for the efficient and fruitful operation of the enterprise, it is necessary that this value was as high as possible..

Required indicators for calculation

The turnover ratio of working capital can be determined using the data presented in the financial statements of the organization. The quantities needed to determine it are shown in the first and second forms of financial statements.

So, in the general case, the volume of sales is calculated as the revenue received by the organization in one cycle (since in most cases an annual coefficient is used for analysis, in the future we will take into account the time period t = 1). Revenue for the specified period is taken from the income statement (former income statement), where it is shown in a separate line, as the amount received by the enterprise from the sale of works, goods or services.

The average balance of working capital is found from the second section of the balance sheet and is calculated as:

Where F 1 and F 0 are the values of the company's working capital for the current and past period of time. Note that if the calculations use data for 2013 and 2014, then the resulting coefficient will represent the rate of turnover of funds specifically for 2013.

In addition to the turnover ratio in economic analysis, there are other quantities that analyze the speed of circulation of the organization's working capital. Many of them are also closely related to this indicator.

So, one of the values accompanying the turnover ratio is duration of one revolution (T about). Its value is calculated as the quotient of dividing the number of days corresponding to the analyzed period (1 month = 30 days, 1 quarter = 90 days, 1 year = 360 days) by the value of the turnover ratio itself:

Based on this formula, the duration of one revolution can also be calculated as:

Another important indicator used in the analysis of the financial condition of the organization is load factor of funds in circulation K load. This indicator determines the amount of working capital required to receive 1 ruble of proceeds from the sale of products. In other words, the ratio shows how many percent of the organization's working capital accounts for one unit of the final result. Thus, in another way, the load factor can be called the capital intensity of working capital.

It is calculated using the following formula:

As you can see from the methodology for calculating this indicator, its value is the inverse of the value of the turnover ratio. And this means that the lower the value of the load indicator, the higher the efficiency of the organization.

Another generalizing factor in the efficiency of the use of working capital is the value profitability (R ob.av.). This coefficient is characterized by the amount of profit received for each ruble of working capital, and shows the financial efficiency of the organization. The formula for its calculation is similar to the values used to find the turnover ratio. However, in this case, instead of the proceeds from the sale of products, the numerator uses the profit of the enterprise before tax:

Where π is profit before tax.

Also, as in the case of the turnover ratio, the greater the value of return on capital, the more financially stable the company's activities.

Turnover ratio analysis

Before turning to the analysis of the turnover ratio itself and looking for ways to increase the efficiency of the organization, let's define what is generally meant by the concept of "working capital of the company".

The working capital of an enterprise is understood as the amount of assets that have a useful life of less than one year. Such assets may include:

reserves;
unfinished production;
finished products;
cash;
short-term financial investments;
receivables.

In most cases, the turnover ratio in the company has approximately the same value over a long period of time. This value may depend on the types of the company's main activities (for example, for trade enterprises this indicator will be the highest, while in the field of heavy industry its value will be quite low), its cyclicality (some firms are characterized by a surge in activity in certain seasons) and many other factors.

However, in general, in order to change the value of this ratio and increase the efficiency of using the company's assets, it is necessary to correctly approach the policy of working capital management.

Thus, the reduction of stocks can be achieved through a more economical and rational use of resources, reducing the material intensity of production and the magnitude of losses. In addition, a significant improvement can be achieved through more efficient supply management.

The reduction in the value of work in progress is carried out by rationalizing the production cycle and reducing the cost of inventories. A reduction in the amount of finished products in stock can be achieved with the help of a more advanced logistics and aggressive marketing policy of the organization.

Note that a positive impact on even one of the above values already has a significant impact on the turnover ratio. In addition, it is possible to achieve an increase in the efficiency of the use of working capital in an enterprise in indirect ways. Thus, the value of the indicator will be higher with the growth of the organization's profit and sales volumes.

If, when constructing the dynamics of the turnover ratio over a long period of time, one can note a stable decrease in its value, this fact may be a sign of a deterioration in the financial condition of the company.

Why might it go down?

There are several reasons for reducing the value of the turnover ratio. Moreover, its value can be influenced by both external and internal factors. For example, if the general economic situation in the country worsens, the demand for luxury goods may fall, the appearance on the market of new models of electrical engineering will reduce the demand for old ones, and so on.

There can also be several internal reasons for the decrease in the turnover rate. Among them should be highlighted:

errors in the management of working capital;
logistics and marketing errors;
an increase in the company's debt;
use of outdated production technologies;
change in the scope of activities.

Thus, most of the reasons for the deterioration of the situation at the enterprise associated with management errors and low qualification of workers.

At the same time, in some cases, the value of the turnover ratio may decrease due to the transition to a new level of production, modernization and the use of new technologies. In this case, the value of the indicator will not be associated with the low efficiency of the company.

Consider a certain organization "Alpha". After analyzing the company's activities in 2013, we learned that the proceeds from the sale of products at this enterprise amounted to 100 thousand rubles.

At the same time, the amount of working capital was 35 thousand rubles in 2013 and 45 thousand rubles in 2012. Using the data obtained, we calculate the asset turnover ratio:

Since the resulting coefficient is 2.5, we can note that in 2013, the duration of one turnaround cycle for Alpha was:

Thus, one production cycle of the Alfa enterprise takes 144 days.

The efficiency of the use of working capital is characterized by a system of economic indicators, and, above all, the turnover of working capital and the duration of one turnover. Under the turnover of working capital is understood the duration of the full circulation of funds from the moment of acquisition of working capital (purchase of raw materials, materials, etc.) until the release and sale of finished products. The circulation of working capital ends with the transfer of proceeds to the account of the enterprise.

The turnover of working capital in the enterprise depends on the following factors:

the duration of the production cycle;

product quality and its competitiveness;

efficiency of working capital management at the enterprise in order to minimize them;

solving the problem of reducing the material consumption of products;

method of supply and marketing of products;

working capital structures, etc.

The efficiency of working capital turnover is characterized by the following indicators:

1. The turnover ratio of working capital. It shows the number of turnovers that working capital makes during the analyzed period. The higher the turnover ratio, the better the use of working capital.

Cob= N / Euro(1)

where Cob- turnover ratio of working capital;

N- revenues from sales;

esro- the average annual cost of working capital.

Esro \u003d (Year of the year + E of the year) / 2 (2)

where esro- average annual cost of working capital;

Enach of the year- the cost of working capital at the beginning of the year;

End of the year- the cost of working capital at the end of the year.

2. Load factor of funds in circulation. It is the reciprocal of the direct turnover ratio of working capital. It characterizes the amount of working capital spent on 1 rub. sold products. The lower the load factor of funds, the more efficiently the working capital is used at the enterprise, and its financial position improves.

Kz \u003d Esro / N x100 (3)

where Kz- utilization factor of funds in circulation

N- revenues from sales;

esro- average annual cost of working capital;

100 - converting rubles into kopecks.

3. Coefficient of the duration of one turnover of working capital. It shows how long it takes for the company to return its working capital in the form of proceeds from the sale of products. Reducing the duration of one turnover indicates an improvement in the use of working capital.

TE = T / Kob (4)

where THOSE- duration of the 1st turnover of working capital;

Cob- turnover ratio;

Comparison of turnover ratios in dynamics by years reveals trends in the efficiency of the use of working capital. If the turnover ratio of working capital has increased or remained stable, then the company works rhythmically and rationally uses cash resources. A decrease in the turnover ratio indicates a decline in the pace of a developed enterprise and its unfavorable financial condition. The turnover of working capital can slow down or accelerate. As a result of the acceleration of turnover, that is, a decrease in the time it takes for working capital to pass through individual stages and the entire cycle, the need for these funds is reduced. They are being released from circulation. The slowdown in turnover is accompanied by the involvement of additional funds in the turnover. Relative savings (relative overspending) of working capital is determined by the following formula:

E \u003d Esro-Esrp x (Notch/N before) (5)

where E–relative savings (overspending) of working capital;

E sro- average annual cost of current assets of the reporting period;

E cp- the average annual cost of working capital of the previous

Notch- proceeds from the sale of the reporting year;

Nbefore- proceeds from the sale of the previous year.

Relative savings (relative overspending) of working capital:

E \u003d 814 - 970.5x375023 / 285366 \u003d - 461.41 (thousand rubles) - savings;

The overall assessment of the turnover of working capital is presented in Table 5

Table 5

General assessment of working capital turnover

Indicators	Previous year 2013	Reporting	Absolute deviation
Revenue from implementation N, thousand rub
Average annual cost of working capital esro, thousand roubles.
Working capital turnover ratio Cob, turns
The duration of the turnover of working capital THOSE, days
Load factor of funds in circulation Kz, cop.

Conclusion: The overall assessment of working capital shows that for the analyzed period:

The duration of the turnover of working capital compared with the previous period improved by 0.44 days, that is, the funds invested in current assets go through a full cycle and again take the form of money 0.44 days earlier than in the previous period;

The decrease in the utilization factor of funds in circulation by 0.13 indicates that working capital has been used most efficiently at the enterprise compared to last year, i.e. the financial situation is improving;

The increase in the turnover ratio by 166.66 indicates a better use of working capital;

The acceleration of the turnover of working capital led to their release from circulation in the amount of 461.41 thousand rubles.

Accounts receivable - the amount of debts due to the enterprise, organization from legal entities and individuals. The most common recommendations for managing receivables are:

Monitor the status of settlements with buyers on deferred (overdue) debts;

Target as many buyers as possible to reduce the risk of non-payment by one or more large buyers;

Monitor the status of accounts receivable and accounts payable - a significant excess of accounts receivable poses a threat to the financial stability of the enterprise and makes it necessary to attract additional sources of financing.

The information base for the analysis of receivables is official financial statements: accounting report - form No. 1 (section "Current assets"), form No. 5 "Appendix to the balance sheet" (section "Accounts receivable and accounts payable" and references to it).

For receivables, as well as for working capital, in general, the concept of "turnover" is used. Turnover is characterized by a group of coefficients. To assess the turnover of receivables, the following indicators are used:

1. Accounts receivable turnover ratio.

Shows how effectively the company organized the work of collecting payment for its products. A decrease in this indicator may signal an increase in the number of insolvent customers and other sales problems.

cobd =N/ Esrd (6)

where N- revenues from sales;

cobd

Esrd- the average annual value of receivables.

2. Period of repayment of receivables.

This is the length of time required for the company to receive debts for products sold. It is defined as the reciprocal of the receivables turnover ratio and multiplied by the period.

TEz \u003d T / Cob (7)

where TEz- the duration of the 1st turnover of working capital;

T- duration of the 1st period (360 days);

cobd- Accounts receivable turnover ratio.

3. The share of receivables in the total volume of current assets. Shows what proportion of accounts receivable in the total amount of current assets. An increase in this indicator indicates an outflow of funds from turnover.

Dz \u003d Edzkon / TAkon x 100% (8)

where Edzkon- accounts receivable at the end of the year;

TAcon- current assets at the end of the year.

Ddz- share of accounts receivable

All calculated data are grouped and entered in table 6.

Table 6

Accounts receivable turnover analysis

Indicators	previous	Reporting	Absolute deviation
Revenues from sales TO thousand roubles.
Average annual value of accounts receivable Esrd, thousand roubles.
Current assets at the end of the year TA con. ,thousand roubles.
Accounts receivable at the end of the year Edz con., thousand rubles
Accounts receivable turnover ratio cobd, turns
Period of repayment of accounts receivable TEz,days
Share of accounts receivable in total current assets Ddz

Conclusion: the analysis of accounts receivable turnover shows that the state of settlements with buyers has improved compared to last year:

The average maturity of receivables decreased by 1.87 days;

The increase in the turnover ratio of accounts receivable by 73.49 turnover shows a relative decrease in commercial lending;

The share of receivables in the total volume of working capital decreased by 8.78%, which indicates an increase in the liquidity of current assets, and, consequently, some improvement in the financial condition of the enterprise.

Inventory management (IPZ).

The accumulation of MPZ has positive and negative sides.

Positive sides:

The fall in the purchasing power of money forces the enterprise to invest temporarily free funds in stocks of materials, which can then be easily sold if necessary;

The accumulation of inventories is often a forced measure to reduce the risk of non-delivery or short supply of raw materials and materials necessary for the production process of an enterprise.

Negative sides:

The accumulation of inventories inevitably leads to an additional outflow of funds due to an increase in the costs associated with storing stocks (rental of storage facilities and their maintenance, costs of moving stocks, insurance, and so on), as well as an increase in costs associated with loss due to obsolescence, damage , theft and uncontrolled use of inventories, due to an increase in the amount of tax paid, and due to the diversion of funds from circulation.

To assess the turnover of inventories, the following indicators are used:

1. Inventory turnover ratio. Shows the turnover rate of the inventory.

Kmpz =S/ esrmpz (9)

where esrmpz- average annual cost of inventory; S- cost;

kmpz- Inventory turnover ratio.

The cost price is taken from Form No. 2 - Profit and Loss Statement. The higher this indicator, the less funds are associated with this least liquid item, the more liquid the structure of current assets and the more stable the financial position of the enterprise. Especially relevant is the increase in turnover and the reduction of inventories in the presence of a large debt from the enterprise. In this case, pressure from creditors may be felt before anything can be done about stocks, especially in an unfavorable market environment.

2. Shelf life of MPZ.

An increase in this indicator indicates the accumulation of stocks, and a decrease indicates a reduction in stocks. Similarly, the indicators of turnover of finished products and inventories, as well as the shelf life of inventories and finished products, are calculated.

Tmpz = T / Kmpz (10)

where Tmpz- shelf life of MPZ;

T- duration of the 1st period (360 days);

kmpz- Inventory turnover ratio.

Table 7

Inventory turnover analysis

Indicators	previous	Reporting	Absolute deviation
Cost of goods sold S, thousand roubles
Average annual cost of inventory esrmpz,thousand roubles.
The average annual cost of inventories, Esrpz
Average annual cost of finished products Esrgp, thousand roubles.
Inventory turnover Kobmpz turns
Inventory turnover Bullpen, turns
Turnover of finished products K obgp, turns
The shelf life of MPZ, tmpz, days
shelf life of inventories, Tpz,days
Shelf life of finished products Tgp, days

Conclusion: analysis of inventory turnover shows that for the analyzed period:

The rate of inventory turnover increased by 0.5 turnovers, and the shelf life of inventory decreased by 0.8 days compared to last year. Consequently, the enterprise does not accumulate inventories;

The rate of turnover of inventories decreased by 20.8 turnovers, and the shelf life of inventories increased by 1.43 days compared to the previous year. Consequently, the enterprise is accumulating inventories;

The turnover rate of finished products increased by 2.19 turnovers, and the shelf life of finished products decreased by 2.15 days. Thus, the finished product at the enterprise does not accumulate.

Each enterprise located in the segment of the market economy operates with the aim of making a profit. In order to maximize its amount, the management makes a number of decisions that contribute to the optimization of all indicators. The financial and analytical service of the enterprise helps to collect the necessary information.

One of the most important areas of her work is the study of such an indicator as the turnover of working capital. The amount of profit directly depends on its speed. After conducting a qualitative analysis of the company's activities in terms of indicators of the movement of working capital, it is possible to track negative trends in the development of the company and eliminate them in the future.

The total value of working capital

Working capital represents the resources directed to circulation funds and production funds to promote the continuity of economic activities of various organizations.

This property of the enterprise forms assets that, during one cycle, transfer the full value to the products. At the same time, working capital loses its material-material form. The time for which one cycle of production takes place reflects the turnover ratio of the working capital of the enterprise.

The circulation of capital goes through three stages. At the procurement stage, financial sources are invested in the resources necessary for the manufacture of products. Next comes the production stage. Raw materials, materials, etc. are turned into finished goods. The last stage is marketing. The company receives cash resources that reflect the result of its activities.

Current assets structure

Working capital turnover deserves increased attention from financial managers and management. This indicator reflects how quickly the production cycle occurs. It involves circulation funds and production funds.

To find ways to accelerate the turnover of working capital by reducing the duration of this period, it is necessary to understand which resources are involved in the cycle.

The circulation funds are responsible for servicing the movement of capital. These include financial sources invested in inventories, unpaid shipped products, money in the accounts and on hand, as well as settlement finance. The coefficient that determines the turnover of working capital of enterprises, largely depends on the size of the resources listed above.

Number of working capital

The main criterion for organizing the production process is its continuity, coherence and speed. Calculating the turnover ratio of working capital according to the formula below, financial analysts must determine the optimal amount of resources.

This is their minimum size, capable of providing a full-fledged production of finished products. To do this, the rationing of working capital is carried out. This procedure is carried out at the time of the current planning. In this case, all the features of the functioning of the object under study are taken into account.

Rationing

Optimal indicators of working capital turnover are achieved with the rational use of resources. For the smooth functioning of the enterprise, the consumption rates and quantities of raw materials, fuel, semi-finished products, etc. are determined.

If there are not enough resources, there will be downtime. This will lead to under-fulfillment of planned programs. And too much accumulation contributes to the irrational use of financial sources. The funds frozen in working capital could be directed to the acquisition of new equipment, scientific research, etc.

Therefore, rationing performs a very important function, reducing the turnover period of working capital. Planning is carried out taking into account the conditions of production as responsibly as possible.

Efficiency mark

Working capital is generated from various sources. They can be the company's net profit, bank loans, commercial payment deferrals, shareholder capital, budget injections, and accounts payable.

In this case, both paid and free sources are used. Therefore, the finances directed into circulation should bring a profit greater than the payment for their attraction. To carry out a full analysis, the following indicators of working capital turnover are calculated:

turnover ratio;
duration of one cycle;
load factor.

For the process of optimizing this direction, it is important to ensure a better balance between profitability and solvency, own and borrowed financial sources. Therefore, the analysis is done globally.

Without optimization of the capital structure, which is reflected in the form 1 "Balance" of financial statements, it is not possible to obtain a satisfactory result.

Calculation formulas

To assess working capital, a certain system of indicators is used. Initially, the analyst determines the total number of cycles that occur in the study period. From this point of view, the turnover of working capital, the formula of which is given below, is defined as follows:

Cob \u003d Sales proceeds: Average number of working capital.

For such an analysis, the data of forms 1 and 2 will be needed. The presented calculation based on the formula will have the following form:

Kob = s. 2110 form 2: (c. 1100 (beginning of period) + c. 1100 (end of period)) : 2.

To present this indicator in days, the turnover of working capital, the formula of which is presented below, looks like this:

T \u003d D: Cob, where D is the number of days in the study period (can be 360, 90 or 30 days).

For companies producing seasonal goods, such calculations must be performed quarterly or monthly. This will make normalization easier. In order to calculate which component has the greatest effect on slowing down the course of one cycle, it is necessary to determine the private turnover.

Each group included in current assets is calculated separately according to the presented formulas.

Calculation example

To better understand how to calculate the turnover of working capital, you need to consider the analysis with an example. If it is known that in the study period (year) the company received 20% less sales proceeds, this indicates the incorrect operation of its capital.

At the same time, the analyst determined that the average number of current assets increased in the current period from 200 to 240 thousand rubles. The impact of such changes reflects the turnover ratio for the past and present periods. The calculation for the current period will be as follows:

Kob1 \u003d (1 - 0.2) VR0: Cob1 \u003d 0.8 VR0: 240.

For the previous period, the indicator will be as follows:

Cob0 = BP0: Ins0 = BP0: 200.

The turnover rate is determined as follows:

d \u003d Kob1: Kob0 \u003d 0.8VR0: 240: VR0: 200 \u003d 0.67.

It can be concluded that the production cycle has decreased by 33%. With a more detailed study of the structure of current assets, it is possible to find ways to solve this problem. Additional resources are frozen in circulation.

Release or circulation

Slowdown or acceleration of the turnover of working capital leads to the attraction or release of financial resources. To calculate the amount of these funds, the following formula is used:

OS \u003d BP (end of period): D x (T (end of period) - T (beginning of period)).

The economic effect of such changes makes it clear to the analyst whether the resources were used rationally in the period under study. If the cycle accelerated, with the same amount of working capital, the company made more profit due to the production of more finished products.

Acceleration Paths

To increase the speed of one cycle, there are certain ways. The turnover of working capital is facilitated by the introduction of new technology, modern scientific developments into the technological process.

Production should be as mechanized and automated as possible. This leads to a reduction in the time spent on one technological operation. New equipment produces more finished products faster. The rationality of logistics should also be examined.

The sales process may also need to be streamlined. If a company has a large amount of receivables, it is necessary to review the calculation procedure. For example, switching to a cashless system will speed up the process somewhat. To determine at what stages of the cycle there are delays, the study of partial indicators will help. Management must necessarily control turnover. If negative trends are detected, they are eliminated as quickly as possible.

By optimizing the turnover of working capital, the company uses its resources more rationally. This results in more income.

working capital is a set of funds advanced to create working capital and circulation funds that ensure the continuity of the company.

Composition and classification of working capital

revolving funds- these are assets that, as a result of its economic activity, completely transfer their value to the finished product, take a one-time participation in, changing or losing their natural-material form.

Revolving production assets enter production in their natural form and are entirely consumed in the production process. They transfer their value to the created product completely.

circulation funds associated with servicing the process of circulation of goods. They do not participate in the formation of value, but are its carriers. After the completion, manufacture of finished products and its sale, the cost of working capital is reimbursed as part of (works, services). This creates the possibility of a systematic resumption of the production process, which is carried out through the continuous circulation of enterprise funds.

Working capital structure- is the ratio between the individual elements of working capital, expressed as a percentage. The difference in the structures of working capital of companies is due to many factors, in particular, the characteristics of the organization's activities, the conditions for doing business, supply and marketing, the location of suppliers and consumers, the structure of production costs.

Working capital assets include:

(raw materials, basic materials and purchased semi-finished products, auxiliary materials, fuel, containers, spare parts, etc.);
with a service life of not more than one year or a cost of not more than 100 times (for budgetary organizations - 50 times) the established minimum wage per month (low-value consumable items and tools);
unfinished production and semi-finished products of own manufacture (objects of labor that have entered the production process: materials, parts, assemblies and products that are in the process of processing or assembly, as well as semi-finished products of their own manufacture, not fully completed by production in some workshops of the enterprise and subject to further processing in other workshops of that or enterprises);
future spending(non-material elements of working capital, including the costs of preparing and developing new products that are produced in a given period, but are related to products of a future period; for example, costs for the design and development of technology for new types of products, for rearranging equipment).

circulation funds

circulation funds- funds of the enterprise operating in the sphere of circulation; part of working capital.

The circulation funds include:

enterprise funds invested in stocks of finished products, goods shipped but not paid for;
funds in settlements;
cash on hand and in accounts.

The amount of working capital employed in production is determined mainly by the duration of production cycles for the manufacture of products, the level of development of technology, the perfection of technology and the organization of labor. The amount of circulation funds depends mainly on the conditions for the sale of products and the level of organization of the system of supply and marketing of products.

Working capital is a more mobile part.

In every the circulation of working capital goes through three stages: monetary, production and commodity.

To ensure an uninterrupted process, the enterprise forms working capital or material values that await their further production or personal consumption. Inventories are the least liquid item among items of current assets. The following inventory valuation methods are used: for each unit of purchased goods; by average cost, in particular, by weighted average cost, moving average; at the cost of the first time purchases; at the cost of the most recent purchases. The unit of accounting for working capital as inventories is a batch, a homogeneous group, an item number.

Depending on the destination, stocks are divided into production and commodity. Depending on the functions of use, stocks can be current, preparatory, insurance or warranty, seasonal and transitional.

Insurance stocks- a reserve of resources intended for the uninterrupted supply of production and consumption in cases of a decrease in supplies compared to those provided.
Current stocks- stocks of raw materials, materials and resources to meet the current needs of the enterprise.
Preparatory stocks- stocks dependent on the production cycle are necessary if the raw materials must undergo any processing.
carryover stocks- part of unused current reserves, which are transferred to the next period.

Working capital is simultaneously at all stages and in all forms of production, which ensures its continuity and uninterrupted operation of the enterprise. Rhythm, coherence and high performance largely depend on optimal size of working capital(circulating production assets and circulation funds). Therefore, the process of normalization of working capital, which relates to the current financial planning at the enterprise, is of great importance. Rationing of working capital is the basis for the rational use of economic assets of the company. It consists in the development of reasonable norms and standards for their consumption, necessary to create a constant minimum stock, and for the smooth operation of the enterprise.

The standard of working capital establishes their minimum estimated amount, which is constantly required by the enterprise for work. Failure to fill the standard of working capital may lead to a reduction in production, non-fulfillment of the production program due to interruptions in production and sales of products.

Normalized working capital- the size of inventories planned by the enterprise, work in progress and the balance of finished products in warehouses. The working capital stock rate is the time (days) during which the fixed assets are in the production stock. It consists of the following reserves: transport, preparatory, current, insurance and technological. The working capital ratio is the minimum amount of working capital, including cash, needed by a company, a firm to create or maintain carry-over inventory and ensure business continuity.

Sources of the formation of working capital can be profit, loans (banking and commercial, i.e. deferred payment), equity (authorized) capital, shares, budget funds, redistributed resources (insurance, vertical management structures), accounts payable, etc.

The efficiency of the use of working capital has an impact on the financial performance of the enterprise. In its analysis, the following indicators are used: the presence of own working capital, the ratio between own and borrowed resources, the solvency of the enterprise, its liquidity, the turnover of working capital, etc. The turnover of working capital is understood as the duration of the successive passage of funds through individual stages of production and circulation.

The following indicators of turnover of working capital are distinguished:

turnover ratio;
duration of one turn;
working capital utilization factor.

Turnover ratio(rate of turnover) characterizes the amount of proceeds from the sale of products on the average cost of working capital. Duration of one turn in days is equal to the quotient of dividing the number of days for the analyzed period (30, 90, 360) to the turnover of working capital. The reciprocal of the turnover rate shows the amount of working capital advanced for 1 rub. proceeds from the sale of products. This ratio characterizes the degree of loading of funds in circulation and is called working capital utilization factor. The lower the value of the load factor of working capital, the more efficient use of working capital.

The main goal of managing the assets of an enterprise, including working capital, is to maximize the return on invested capital while ensuring a stable and sufficient solvency of the enterprise. To ensure sustainable solvency, the enterprise must always have a certain amount of money on the account, actually withdrawn from circulation for current payments. Part of the funds should be placed in the form of highly liquid assets. An important task in terms of managing the working capital of an enterprise is to ensure the optimal balance between solvency and profitability by maintaining the appropriate size and structure of current assets. It is also necessary to maintain the optimal ratio of own and borrowed working capital, since the financial stability and independence of the enterprise, the possibility of obtaining new loans directly depend on this.

Analysis of the turnover of working capital (analysis of the business activity of the organization)

working capital- these are funds advanced by organizations to maintain the continuity of the production and circulation process and returned as part of the proceeds from the sale of products in the same monetary form with which they began their movement.

To assess the effectiveness of the use of working capital, indicators of turnover of working capital are used. The main ones are the following:

average duration of one turnover in days;
the number (number) of turnovers made by working capital during a certain period of time (year, half year, quarter), otherwise - the turnover ratio;
the amount of employed working capital per 1 ruble of sold products (working capital utilization factor).

If working capital goes through all stages of the cycle, for example, in 50 days, then the first indicator of turnover (the average duration of one turnover in days) will be 50 days. This indicator approximately characterizes the average time that passes from the moment of purchase of materials to the moment of sale of products made from these materials. This indicator can be determined by the following formula:

П - average duration of one turn in days;
SO - the average balance of working capital for the reporting period;
P - sales of products for this period (net of value added tax and excises);
B - the number of days in the reporting period (in a year - 360, in a quarter - 90, in a month - 30).

So, the average duration of one turnover in days is calculated as the ratio of the average balance of working capital to the one-day turnover for the sale of products.

The indicator of the average duration of one turnover in days can be calculated in another way, as the ratio of the number of calendar days in the reporting period to the number of turnovers made by working capital for this period, i.e. according to the formula: P \u003d B / CHO, where CHO is the number of turnovers made by working capital for the reporting period.

The second turnover rate- the number of turnovers made by working capital for the reporting period (turnover ratio) - can also be obtained in two ways:

as the ratio of sales of products minus value added tax and excises to the average balance of working capital, i.e. according to the formula: CHO \u003d P / CO;
as the ratio of the number of days in the reporting period to the average duration of one turnover in days, i.e. according to the formula: CHO \u003d V / P .

The third indicator of turnover (the amount of employed working capital attributable to 1 ruble of sold products, or otherwise - the working capital utilization factor) is determined in one way as the ratio of the average balance of working capital to the turnover for the sale of products for a given period, i.e. according to the formula: CO / R.

This indicator is expressed in kopecks. It gives an idea of how many kopecks of working capital are spent to receive each ruble of proceeds from the sale of products.

The most common is the first indicator of turnover, ie. average duration of one turn in days.

Most often, turnover is calculated per year.

In the analysis, the actual turnover is compared with the turnover for the previous reporting period, and for those types of current assets for which the organization sets standards - also with the planned turnover. As a result of such a comparison, the value of the acceleration or deceleration of turnover is determined.

The initial data for the analysis are presented in the following table:

In the analyzed organization, the turnover slowed down, both for standardized and non-standardized working capital. This indicates a deterioration in the use of working capital.

With a slowdown in the turnover of working capital, an additional attraction (involvement) of them into circulation occurs, and during acceleration, working capital is released from circulation. The amount of working capital released due to the acceleration of turnover or additionally attracted as a result of its slowdown is determined as the product of the number of days by which the turnover accelerated or slowed down by the actual one-day sales turnover.

The economic effect of accelerated turnover is that the organization can produce more products with the same amount of working capital, or produce the same volume of products with a smaller amount of working capital.

The acceleration of the turnover of working capital is achieved by introducing new equipment into production, advanced technological processes, mechanization and automation of production. These activities help to reduce the duration of the production cycle, as well as increase the volume of production and sales.

In addition, to accelerate the turnover, it is important: the rational organization of logistics and marketing of finished products, the observance of the regime of savings in the costs of production and sale of products, the use of forms of non-cash payments for products that contribute to the acceleration of payments, etc.

Directly in the analysis of the current activities of the organization, the following reserves for accelerating the turnover of working capital can be identified, which consist in eliminating:

excess inventories: 608 thousand rubles;
goods shipped, not paid on time by buyers: 56 thousand rubles;
goods in safe custody with buyers: 7 thousand rubles;
immobilization of working capital: 124 thousand rubles.

Total reserves: 795 thousand rubles.

As we have already established, the one-day sales turnover in this organization is 64.1 thousand rubles. So, the organization has the opportunity to accelerate the turnover of working capital by 795: 64.1 = 12.4 days.

To study the causes of changes in the rate of turnover of funds, it is advisable, in addition to the considered indicators of general turnover, to calculate also indicators of private turnover. They relate to certain types of current assets and give an idea of the time spent by working capital at various stages of their circulation. These indicators are calculated in the same way as stocks in days, however, instead of the balance (stock) on a certain date, the average balance of this type of current assets is taken here.

Private turnover shows how many days on average there are working capital in this stage of the cycle. For example, if the private turnover for raw materials and basic materials is 10 days, then this means that from the moment the materials arrive at the organization's warehouse to the moment they are used in production, an average of 10 days pass.

As a result of summing up the private turnover indicators, we will not get the total turnover indicator, since different denominators (turnovers) are taken to determine the private turnover indicators. The relationship between indicators of private and general turnover can be expressed in terms of total turnover. These indicators allow you to establish what impact the turnover of certain types of working capital has on the overall turnover rate. The terms of the total turnover are defined as the ratio of the average balance of this type of working capital (assets) to the one-day turnover for the sale of products. For example, the term of the total turnover for raw materials and basic materials is equal to:

Divide the average balance of raw materials and basic materials by the one-day turnover for the sale of products (excluding value added tax and excises).

If this indicator is, for example, 8 days, then this means that the total turnover due to raw materials and basic materials accounts for 8 days. If we sum up all the terms of the total turnover, then the result will be an indicator of the total turnover of all working capital in days.

In addition to those considered, other turnover indicators are also calculated. So, in analytical practice, the indicator of inventory turnover is used. The number of turnovers made by stocks for a given period is calculated using the following formula:

Works and services (minus and ) divided by the average value for the item "Stocks" of the second section of the balance sheet asset.

The acceleration of inventory turnover indicates an increase in the efficiency of inventory management, and the slowdown in inventory turnover indicates their accumulation in excessive amounts, ineffective inventory management. Indicators reflecting the turnover of capital, that is, the sources of formation of the organization's property, are also determined. So, for example, the turnover of equity capital is calculated according to the following formula:

The sales turnover for the year (net of value added tax and excises) is divided by the average annual cost of equity.

This formula expresses the effectiveness of the use of equity capital (authorized, additional, reserve capital, etc.). It gives an idea of the number of turnovers made by the organization's own sources of activity per year.

The turnover of invested capital is the turnover on sales of products for the year (net of value added tax and excises) divided by the average annual cost of equity and long-term liabilities.

This indicator characterizes the effectiveness of the use of funds invested in the development of the organization. It reflects the number of turnovers made by all long-term sources during the year.

When analyzing the financial condition and the use of working capital, it is necessary to find out from what sources the financial difficulties of the enterprise are compensated. If the assets are covered by sustainable sources of funds, then the financial condition of the organization will be stable not only at this reporting date, but also in the near future. Sustainable sources should be considered own working capital in sufficient amounts, non-reducing balances of carry-over debt to suppliers on accepted settlement documents, the payment deadlines for which have not come, permanently carry-over debt on payments to the budget, a non-reducing part of other accounts payable, unused balances of special purpose funds (accumulation funds and consumption, as well as the social sphere), unused balances of targeted financing, etc.

If the organization's financial breakthroughs are blocked by unstable sources of funds, it is solvent at the reporting date and may even have free cash in bank accounts, but financial difficulties await it in the short term. Unsustainable sources include sources of working capital that are available on the 1st day of the period (balance sheet date), but not available on dates within this period: non-overdue wage arrears, contributions to off-budget funds (in excess of certain stable values), unsecured debt to banks on loans for inventory items, debts to suppliers on accepted settlement documents, the payment deadlines for which have not come, in excess of the amounts attributed to sustainable sources, as well as debts to suppliers for uninvoiced deliveries, debts on payments to the budget in excess of the amounts attributed to stable sources of funds.

It is necessary to make a final calculation of financial breakthroughs (ie, unjustified spending of funds) and sources of coverage for these breakthroughs.

The analysis ends with a general assessment of the financial condition of the organization and the preparation of an action plan to mobilize reserves to accelerate the turnover of working capital and increase liquidity and strengthen the solvency of the organization. First of all, it is necessary to assess the security of the organization with its own working capital, their safety and use for their intended purpose. Then, an assessment is made of compliance with financial discipline, the solvency and liquidity of the organization, as well as the completeness of the use and security of bank loans and loans from other organizations. Measures are planned for more efficient use of both equity and borrowed capital.

The analyzed organization has a reserve for accelerating the turnover of working capital by 12.4 days (this reserve is noted in this paragraph). To mobilize this reserve, it is necessary to achieve the elimination of the causes that cause the accumulation of excess stocks of raw materials, basic materials, spare parts, other inventories and work in progress.

In addition, it is necessary to ensure the targeted use of working capital, preventing their immobilization. Finally, receiving payments from buyers for goods shipped to them that were not paid for on time, as well as the sale of goods that are in safe custody with buyers due to refusal to pay, will also speed up the turnover of working capital.

All this will help to strengthen the financial condition of the analyzed organization.

Indicators of availability and use of working capital

Circulating assets - are consumed in one production cycle, are materially included in the product and completely transfer their value to it.

The availability of working capital is calculated both on a certain date and on average for the period.

Indicators of the movement of working capital characterize its change during the year - replenishment and disposal.

Working capital turnover ratio

It is the ratio of the cost of products sold for a given period to the average balance of working capital for the same period:

To turnover= Cost of goods sold for the period / Average working capital balance for the period

The turnover ratio shows how many times the average balance of working capital for the period under review turned around. In terms of economic content, it is equivalent to the rate of return on assets.

Average turnaround time

Determined from the turnover ratio and the analyzed period of time

Average duration of one revolution= Duration of the measurement period for which the indicator is determined / Working capital turnover ratio

Coefficient of fixing working capital

The value is inversely proportional to the turnover ratio:

Go to pinning= 1 / To turnover

Consolidation ratio = average working capital balance for the period / cost of goods sold for the same period

In terms of economic content, it is equivalent to the capital intensity indicator. The fixing coefficient characterizes the average cost of working capital per 1 ruble of the volume of products sold.

Need for working capital

The enterprise's need for working capital is calculated on the basis of the coefficient of fixing working capital and the planned volume of product sales by multiplying these indicators.

Security of production with working capital

It is calculated as the ratio of the actual stock of working capital to the average daily consumption or the average daily need for it.

Accelerating the turnover of working capital helps to improve the efficiency of the enterprise.

A task

According to the data for the reporting year, the average balance of working capital of the enterprise amounted to 800 thousand rubles, and the cost of products sold for the year in the current wholesale prices of the enterprise amounted to 7200 thousand rubles.

Determine the turnover ratio, the average duration of one turnover (in days) and the coefficient of fixing working capital.

To turnover = 7200 / 800 = 9
Average turnaround time = 365 / 9 = 40.5
To fixing collective funds \u003d 1/9 \u003d 0.111

A task

For the reporting year, the average balance of working capital of the enterprise amounted to 850 thousand rubles, and the cost of products sold for the year - 7200 thousand rubles.

Determine the turnover ratio and the coefficient of fixing working capital.

Turnover ratio = 7200 / 850 = 8.47 turnovers per year
Fixing coefficient = 850 / 7200 = 0.118 rubles of working capital per 1 ruble of sold products

A task

The cost of sold products in the previous year amounted to 2,000 thousand rubles, and in the reporting year compared to the previous year it increased by 10% with a reduction in the average duration of one turnover of funds from 50 to 48 days.

Determine the average balance of working capital in the reporting year and its change (in%) compared to the previous year.

Solution

The cost of products sold in the reporting year: 2000 thousand rubles * 1.1 = 2200 thousand rubles.

Average balance of working capital = Volume of sold products / Turnover ratio

To turnover \u003d Duration of the analyzed period / Average duration of one turnover

Using these two formulas, we derive the formula

Average balance of working capital = Volume of sold products * Average duration of one turnover / Duration of the analyzed period.

Average balance Total average in the previous year = 2000 * 50 / 365 = 274
Average balance Total average in the current year = 2200 * 48 / 365 = 289

289/274 = 1.055 In the reporting year, the average working capital balance increased by 5.5%

A task

Determine the change in the average coefficient of fixing working capital and the influence of factors on this change.

To secure = average working capital balance / cost of goods sold

To consolidation by group, base period = (10+5) / (40+50) = 15 / 90 = 0.1666
To consolidate the group reporting period = (11 + 5) / (55 + 40) = 16 / 95 = 0.1684

Index of the general change in the coefficient of fixation

\u003d SO (average balance)_1 / RP (sold products)_1 - SO_0 / RP_0 \u003d 0.1684 - 0.1666 \u003d 0.0018

Index of change in the coefficient of consolidation from changes in the average balance of working capital

\u003d (SO_1 / RP_0) - (SO_0 / RP_0) \u003d 0.1777 - 0.1666 \u003d 0.0111

Index of change in the coefficient of fixing from changes in the volume of sold products

\u003d (SO_1 / RP_1) - (SO_1 / RP_0) \u003d -0.0093

The sum of the individual indices must equal the overall index = 0.0111 - 0.0093 = 0.0018

Determine the total change in the balance of working capital, and the amount of released (involved) working capital as a result of changing the speed and changing the volume of sales.

Average change in working capital balance = 620 - 440 = 180 (increased by 180)

General index of change in the balance of working capital (CO) \u003d (RP_1 * prod.1.turnota_1 / days in the quarter) - (RP_0 * prod.1.turnota_0 / days in the quarter)

Duration of 1 turnover in the reporting quarter = 620*90/3000 = 18.6 days
Duration of 1 turnover in the previous quarter = 440*90/2400 = 16.5 days

OS change index from changes in the volume of products sold

\u003d RP_1 * prod.1ob._0 / quarter - RP_0 * prod.1ob._0 / quarter \u003d 3000 * 16.5/90 - 2400 * 16.5/90 \u003d 110 (increase in the balance of working capital due to an increase in the volume of sales )

Index of changes in fixed assets from changes in the turnover rate of working capital

= RP_1*prod.1rev._1 / quarter - RP_1*prod.1rev._0/quarter = 3000*18.6/90 - 3000*16.5/90 = 70