Catalog: coefficient of fixing current assets. The financial analysis

Working capital- is a set of funds advanced for the creation of working capital and circulation funds, ensuring the continuity of the company.

Composition and classification of working capital

Revolving funds- these are assets that, as a result of its economic activities, 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 into production in their natural form and are entirely consumed in the manufacturing process. They transfer their value to the created product completely.

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

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

Revolving production assets include:

• (raw materials, basic materials and purchased semi-finished products, auxiliary materials, fuel, containers, spare parts, etc.);
• with a service life of no more than one year or a cost of no more than 100-fold (for budgetary organizations - 50-fold) of the established minimum wage per month (low-value quick-wear items and tools);
• unfinished production and semi-finished products of our own manufacture (objects of labor that have entered the production process: materials, parts, units and products in the process of processing or assembly, as well as semi-finished products of our own manufacture, not completely finished in production in some workshops of the enterprise and subject to further processing in other workshops of that the same enterprise);
• future spending(non-material elements of working capital, including the costs of preparing and mastering new products, which are produced in a given period, but are attributed to the products of the future period; for example, the costs of designing and developing technology for new types of products, for rearranging equipment).

Circulation funds

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

Circulation funds include:

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

The amount of working capital employed in production is mainly determined 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 means of circulation depends mainly on the conditions for the sale of products and the level of organization of the supply and marketing system of products.

Working capital is a more mobile part.

In each the circuit of circulating assets goes through three stages: monetary, production and commodity.

To ensure an uninterrupted process at the enterprise, working capital or material assets are formed, awaiting their further production or personal consumption. Inventories are the least liquid item among the items of current assets. The following methods of inventory estimation 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 purchases in time; at the cost of the most recent purchases. The unit of accounting for current assets as inventories is a batch, a homogeneous group, and an item number.

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

• Insurance stocks- a stock of resources intended for uninterrupted supply of production and consumption in cases of a decrease in supplies compared to those envisaged.
• Current reserves- stocks of raw materials, materials and resources to meet the current needs of the enterprise.
• Preparatory stocks- stocks, depending on the production cycle, are necessary if the raw material must undergo any processing.
• Carryover stocks- a part of unused current reserves that are carried over to the subsequent 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 rationing of working capital, which refers 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 for the creation of constant minimum stocks, and for the smooth operation of the enterprise.

The working capital ratio establishes their minimum estimated amount that is constantly required by the enterprise for work. Failure to fill the working capital standard can 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 production stocks, work in progress and balances of finished products in warehouses planned by the enterprise. Working capital stock rate - time (days) during which OBS are in production stock. It consists of the following stocks: transport, preparatory, current, insurance and technological. Working capital ratio - the minimum amount of working capital, including cash, required by a company, a firm to create or maintain carryover inventories and ensure continuity of work.

The sources of the formation of working capital can be profit, loans (bank and commercial, i.e., deferred payment), share (authorized) capital, share contributions, budget funds, redistributed resources (insurance, vertical management structures), accounts payable, etc.

The efficiency of the use of working capital affects the financial results of the enterprise. In its analysis, the following indicators are used: the availability of own circulating assets, the ratio between own and borrowed resources, the solvency of the enterprise, its liquidity, the turnover of circulating assets, etc. The turnover of circulating assets is understood as the duration of the sequential passage of funds through individual stages of production and circulation.

The following indicators of the turnover of working capital are distinguished:

• turnover ratio;
• duration of one turnover;
• load factor of working capital.

Turnover ratio(turnover rate) characterizes the size of the volume of proceeds from the sale of products by the average cost of working capital. Duration of one revolution 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 inverse of the rate of turnover shows the size of the circulating assets advanced by 1 ruble. proceeds from the sale of products. This ratio characterizes the degree of loading of funds in circulation and is called working capital load factor... The lower the value of the working capital load factor, the more efficiently the working capital is used.

The main goal of managing the assets of an enterprise, including working capital, is to maximize the return on capital invested while ensuring a stable and sufficient solvency of the enterprise. To ensure stable solvency, the enterprise must constantly have a certain amount of money on the account, which is 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 the enterprise is to ensure the optimal balance between solvency and profitability by maintaining the appropriate size and structure of working assets. It is also necessary to maintain an 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 efficiency of the use of working capital, the indicators of the turnover of working capital are used. The main ones are the following:

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

If the circulating assets go through all stages of the circulation, for example, in 50 days, then the first indicator of the turnover (the average duration of one turnover in days) will be 50 days. This indicator roughly characterizes the average time that elapses 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:

• P is the average duration of one turnover in days;
• СО - the average balance of working capital for the reporting period;
• Р - sales of products for this period (net of value added tax and excise taxes);
• B - the number of days in the reporting period (360 in a year, 90 in a quarter, 30 in a month).

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 product sales.

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 revolutions made by current assets during this period, i.e. according to the formula: P = V / CHO, where CHO is the number of revolutions made by circulating assets for the reporting period.

Second turnover indicator- the number of revolutions made by working capital for the reporting period (turnover ratio) - can also be obtained in two ways:

• as the ratio of product sales minus value added tax and excise taxes to the average balance of working capital, i.e. according to the formula: CHO = R / 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 = V / P .

The third indicator of turnover (the sum of the employed working capital per 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 sales 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 turnover indicator, i.e. average duration of one turnover in days.

Most often, the 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 this comparison, the amount of acceleration or deceleration of the turnover is determined.

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

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

When the turnover of circulating assets slows down, they are additionally attracted (involved) into circulation, and with acceleration, circulating assets are released from circulation. The amount of working capital released due to the acceleration of turnover or additionally attracted as a result of its deceleration is defined 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 accelerating turnover is that an 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 technology into production, progressive technological processes, mechanization and automation of production. These measures help to reduce the duration of the production cycle, as well as to increase the volume of production and sales of products.

In addition, to accelerate the turnover, it is important: rational organization of material and technical support and sale of finished products, compliance with the mode of saving in costs of production and sales 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, it is possible to identify the following reserves for accelerating the turnover of working capital, which consists 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 equal to 64.1 thousand rubles. So, the organization has the ability to accelerate the turnover of working capital by 795: 64.1 = 12.4 days.

To study the reasons for 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 refer to certain types of circulating assets and give an idea of ​​the time spent on circulating assets at various stages of their circulation. These indicators are calculated in the same way as stocks in days, however, instead of the remainder (stock) at 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 circulating assets in a given stage of the circuit. For example, if the private turnover for raw materials and basic materials is 10 days, this means that, on average, 10 days pass from the moment the materials arrive at the organization's warehouse until they are used in production.

As a result of summing up the indicators of private turnover, we will not get an indicator of the total turnover, since different denominators (turnovers) are taken to determine the indicators of private turnover. The relationship between the indicators of private and general turnover can be expressed by the terms of the total turnover. These indicators make it possible to establish what effect the turnover of certain types of working capital has on the overall turnover rate. The terms of the total turnover are determined as the ratio of the average balance of a given type of working capital (assets) to the one-day sales turnover. For example, the summand 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 daily sales turnover (net of value added tax and excise taxes).

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, the result will be an indicator of the total turnover of all working capital in days.

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

Works and services (net of and) divided by the average value under the item "Inventories" of the second section of the balance sheet asset.

Acceleration of inventory turnover indicates an increase in the efficiency of inventory management, and a slowdown in inventory turnover indicates their accumulation in excessive amounts, and 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:

Sales turnover for the year (net of value added tax and excise taxes) divided by the average annual cost of equity.

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

The invested capital turnover is the sales turnover for the year (after deducting value added tax and excise taxes) divided by the average annual cost of equity capital 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 revolutions 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 circulating assets in sufficient amounts, non-decreasing balances of carry-over indebtedness to suppliers under accepted settlement documents, the payment terms of which have not yet come, constantly carrying over arrears on payments to the budget, a non-decreasing 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 financial breakthroughs of the organization are blocked by unstable sources of funds, it is solvent at the reporting date and may even have free funds in bank accounts, but in the near future it will face financial difficulties. Unstable sources include the sources of working capital available on the 1st day of the period (the date of the balance sheet), but absent on the dates within this period: outstanding arrears in wages, deductions to extra-budgetary funds (in excess of certain stable values), unsecured debts to banks on loans for inventory items, debts to suppliers under accepted settlement documents, the payment terms of which have not come, in excess of the amounts attributed to sustainable sources, as well as debts to suppliers for non-invoiced deliveries, arrears in payments to the budget in excess of the amounts attributed to sustainable sources of funds.

It is necessary to make a final calculation of financial breakthroughs (i.e. waste of money) and sources of coverage for these breakthroughs.

The analysis ends with a general assessment of the financial condition of the organization and drawing up an action plan to mobilize reserves to accelerate the turnover of working capital and increase liquidity and strengthen the organization's solvency. First of all, it is necessary to assess the provision of the organization with its own circulating assets, 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 use and security of bank loans and loans from other organizations. Measures are planned for the more efficient use of both equity and borrowed capital.

The analyzed organization has a reserve for accelerating the turnover of working capital for 12.4 days (this reserve is noted in this paragraph). To mobilize this reserve, it is necessary to eliminate the causes of the accumulation of excess stocks of raw materials, basic materials, spare parts, other production stocks 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 by them that were not paid on time, as well as the sale of goods that are in custody with buyers due to refusal to pay, will also accelerate the turnover of working capital.

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

Indicators of the availability and use of working capital

Working capital - consumed in one production cycle, materially included in the product and completely transfer their value to it.

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

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

Turnover ratio of working capital

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

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

The turnover ratio shows how many times the average balance of working capital has turned around for the period under review. 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 time period

Average duration of one turnover= The duration of the measurement period for which the indicator / the ratio of the turnover of working capital is determined

The coefficient of fixation of working capital

The value is inversely proportional to the turnover ratio:

To anchoring= 1 / K turnover

Reinforcement ratio = average balance of working capital for the period / cost of products sold for the same period

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

Working capital requirement

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

Provision of production with working capital

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

Acceleration of the turnover of circulating assets helps to increase the efficiency of the enterprise.

A task

According to the data for the reporting year, the average balance of the company's working capital 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 fixing ratio of working capital.

• Turnover ratio = 7200/800 = 9
• Average turnaround time = 365/9 = 40.5
• To fixing the current assets = 1/9 = 0.111

A task

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

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

• Turnover ratio = 7200/850 = 8.47 revolutions per year
• Consolidation ratio = 850/7200 = 0.118 rubles of working capital per 1 ruble of products sold

A task

The cost of products sold in the previous year amounted to 2,000 thousand rubles, and in the reporting year compared with the previous year it increased by 10%, while the average duration of one turnover of funds decreased 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 working capital balance = Volume of products sold / K turnover

Turnover ratio = Duration of the analyzed period / Average duration of one turnover

Using these two formulas, we derive the formula

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

• Average balance of the previous year = 2000 * 50/365 = 274
• Average remainder of Ob.av. in the current year = 2200 * 48/365 = 289

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

A task

Determine the change in the average coefficient of fixing current assets and the influence of factors on this change.

K fixation = average working capital balance / cost of goods sold

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

Index of general change in the coefficient of reinforcement

• = СО (average balance) _1 / РП (sold products) _1 - СО_0 / РП_0 = 0.1684 - 0.1666 = 0.0018

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

• = (CO_1 / RP_0) - (CO_0 / RP_0) = 0.1777 - 0.1666 = 0.0111

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

• = (CO_1 / RP_1) - (CO_1 / RP_0) = -0.0093

The sum of the individual indices must equal the general 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 changes in the speed and changes in the volume of sales.

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

General index of changes in the balance of working capital (CO) = (RP_1 * pro 1. turnover_1 / days in the quarter) - (RP_0 * pro 1. turnover_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

Index of changes in fixed assets from changes in the volume of products sold

• = RP_1 * prod.1v._0 / quarter - RP_0 * prod.1ob._0 / quarter = 3000 * 16.5 / 90 - 2400 * 16.5 / 90 = 110 (increase in the balance of working capital due to an increase in the volume of products sold )

The index of changes in fixed assets from changes in the rate of turnover of working capital

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

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Here is the formula for the coefficient of fixing current assets (or the inverse coefficient of turnover):

where E is the average cost of all current assets;

N is the proceeds from the sale of products.

The values ​​of the indicators of the turnover of the working capital of the enterprise are shown in table 13.

Table 13

Indicators of the turnover of working capital of LLC "YUMA"

Index
Duration of one revolution, days
Number of revolutions
The coefficient of fixing current assets

Of the above indicators, we will pay the greatest attention to the number of turnovers of the company's working capital, since the consolidation coefficient is the opposite of this indicator, and the duration of one turnover due to the equality of the duration of the compared periods is practically equal to the consolidation coefficient multiplied by 91 days (the average duration of one quarter).

In the first quarter of 2000, the turnover ratio increased by 4.9% compared to the fourth quarter of 1999. This happened because in this period the amount of proceeds from sales increased 1.31 times, and the cost of working capital - only 1.27 times. In the second quarter, this indicator increased in comparison with the first quarter by another 90.7%. Such a significant growth was due to a sharp increase in the amount of proceeds from sales (2.84 times), which almost doubled the growth in the amount of working capital. Working capital for this period increased by 47%. Starting from the third quarter, the number of turnovers made by the company's circulating assets has been decreasing. During the period from the third quarter of 2000 to the fourth quarter of 1999 inclusive, this indicator fell by 51%. There is a parallel decrease in both the value of working capital (2.14 times) and revenue, but the rate of decline of the latter dominates (4.44 times).

Analysis of the availability and turnover of the company's working capital shows that since the second quarter of 2000 there has been a negative trend towards a shortage of working capital and a decrease in turnover rates.

The analysis determines from what financial sources the standardized inventory values ​​are formed. Inventories - at the expense of two sources: own circulating assets and bank loans for goods turnover; standardized cash and other assets - at the expense of its own funds.

The stability of the financial position and the fulfillment of the turnover plan largely depend on the provision of the enterprise with its own and equivalent funds. Therefore, the task of the next stage of the analysis is to determine the size of these funds.

Own and equivalent funds (stable liabilities) are indicated in section I of the balance sheet liability. Their presence in the enterprise for the reporting year is determined by subtracting the amount of fixed assets and non-current assets (section I of the balance sheet asset) from the amount of own and equivalent funds (section I of the balance sheet liabilities) - Comparing the amount received with the norm of own working capital and determining the deviation, make a conclusion about the stability of the financial condition of the enterprise (tab. 14).

Table 14

Analysis of the provision of LLC "YUMA" with its own circulating assets in 1999

At the beginning of the reporting year, own circulating and equivalent assets were less than the established standard by 18 thousand rubles. (6541.2 - 6523.2), for the reporting year they increased by 135 thousand rubles. and exceeded the standard at the end of the year by 27 thousand rubles. (6658.2 - 6631.2). The analysis allows us to conclude that the company had a stable financial condition.

After checking the compliance of own circulating assets with the standard, their use is studied. In this case, it is necessary to use the indicator of the aggregate of its own working capital in the economy and the indicator of its own working capital in inventory. The fact is that working capital to cover inventory is formed in the amount of at least 50% at the expense of own funds and in the amount of up to 50% at the expense of loans. It is necessary to check whether this requirement is being met. To determine the actual amount of own working capital in inventory, the balances of normalized cash and other assets, which are formed entirely from own and equivalent funds, are deducted from the amount of own working capital and equivalent assets. The equity participation of own circulating assets and those equivalent to them in inventory for the reporting period is determined as follows: the actual presence of the amount of own working capital and equivalent assets in goods is multiplied by 100 and divided by the sum of actual inventory of current storage at cost.

In the course of the analysis, they check the fulfillment of the financial plan, establish deviations of the actual financial indicators from the hikes and expenses approved in the planned balance sheet in the reporting year, and identify the reasons for these deviations.

Separate calculation of the indicators under consideration at the stage of predictive analysis allows timely identification of their discrepancy and development of measures to eliminate it. At the same time, the compliance of these measures should be considered as one of the key characteristics of the balance of financial plan indicators.

The management of the organization can have a targeted impact on solvency based on the selected policy for the management of net current assets. The value of this indicator for the organization is associated not so much with the characteristic of the ratio of current assets and liabilities as a certain guarantee of liquidity in case of excess of the former over the latter, but with the identification of the nature and reasons of its changes and the direct impact that they have on the organization's solvency.

In most cases, the main reason for the change in the value of net current assets is the profit (loss) received by the organization. If the activity of the organization is characterized by the accumulation of inventories, an increase in the volume of accounts receivable, profit becomes a source of financing and covering this diversion of funds. one

Thus, one should very carefully and carefully interpret the nature of changes in the indicator under consideration: its increase, caused by the outstripping growth of current assets in comparison with short-term liabilities, is accompanied by an increase in the need for own working capital. In this regard, the main issue that needs to be addressed is the identification of the reasons that led to its change, i.e. analysis of changes in the composition of current assets and short-term liabilities, including the valuation methods enshrined in the accounting policy.

The value of net current assets can be a characteristic of solvency only when current assets are convertible into cash. The presence in their composition of a significant share of hard-to-sell assets, for example, unlikely to collect receivables, can be regarded as a diversion of funds and, therefore, as a threat to the organization's solvency. Two organizations with an equal amount of net current assets may be in different financial positions depending on what their current assets are represented and what are the conditions for attracting current liabilities.

2.2 Assessment of the use of the company's working capital

To assess the turnover of working capital, the following indicators are used.

1. Turnover ratio

Turnover ratio (in turnover);

V p - proceeds from the sale of products, works, services (thousand rubles);

CO - the average value of the working capital (thousand rubles). The turnover ratio shows the number of revolutions made by the working capital for a certain period of time.

2. Duration of one revolution

Dl- the duration of the circulation period of working capital (in days);

T- reporting period (in days).

3. Coefficient of fixing current assets

The coefficient of fixation of working capital shows the value of working capital per 1 ruble of products sold. When calculating turnover indicators, trade organizations use the indicator of sales of goods in sales prices instead of proceeds from sales.

Acceleration of capital turnover helps to reduce the need for working capital (absolute release), an increase in production volumes (relative release) and, therefore, an increase in profit. As a result, the financial condition of the enterprise improves, and its solvency is strengthened.

The slowdown in turnover requires the attraction of additional funds to continue the economic activities of the enterprise.

IN tab. 2 the calculation of the indicators of the turnover of working capital is given:

Tab. 2

Indicators			Rejected
1. Proceeds from the sale of products, works, services, mln. Rub.
2. Average balances of all working capital, mln. Rub.
3 Turnover ratio (revolutions)
4. Duration O of one turnover (days)
5. Coefficient of fixing current assets

As can be seen from the table, the turnover of circulating assets accelerated by 0.05 turnovers and amounted to 0.1462 turnovers per year, or 2462.6 days, respectively. These are negative indicators, since one turnover is equal to 6.84 years.

But at the same time, it should be noted that the working capital turnover accelerated by 1279.7 days.

2.3 Working capital management

Cash management. Any business starts with a certain amount of money that turns into resources for production (or goods for resale). Then, from the production form, the working capital passes into the commodity one, and at the stage of implementation - into the money one. The circulation of working capital is directly related to the main business operations:

purchases lead to an increase in stocks of raw materials, materials, goods payable;

production leads to an increase in accounts receivable and cash on hand and on the current account.

All these operations are repeated many times and are reduced to cash receipts and payments.

Thus, the cash flow covers the period of time between the payment of money for raw materials, materials (goods) and the receipt of money from the sale of finished goods (goods). The duration of this period is influenced by: the period of crediting the enterprise by suppliers, the period of crediting the enterprise to buyers, the period of the presence of raw materials and materials in stocks, the period of production and storage of finished products in the warehouse.

The analysis of cash flow by type of activity is carried out according to the data of form No. 4 "Statement of cash flow" of accounting (turnover on synthetic accounts) by two methods - direct and indirect.

The disadvantage of the direct method is that it does not disclose the relationship between the obtained financial result and changes in funds in the company's accounts.

For example: an enterprise has a profit and does not have cash in its accounts, and vice versa: a loss and availability of cash.

To identify the reasons for the discrepancies indicated in the example, an analysis of funds is carried out using an indirect method, the essence of which is the transformation of the amount of profit into the amount of money.

Certain types of expenses and income reduce (increase) the amount of the company's profit without affecting the amount of cash. In an indirect analysis, these amounts adjust the profit margin so that non-cash outflow expense items do not affect net profit.

It is clear that there is no influence on the amount of funds of these operations of writing off the residual value of the property from the balance sheet, since the associated outflow of funds occurred earlier - at the time of acquisition. Therefore, the amount of the loss in the amount of the under-depreciated value must be added to the amount of net profit.

Depreciation does not affect the cash outflow, but reduces the amount of the financial result. A decrease in profit is not accompanied by a decrease in cash, therefore, in order to obtain a real value of cash, the amount of accrued depreciation must be added to net profit. These expenses reduce the balance sheet profit, but do not affect the cash flow.

If there is an increase in inventories, then the real cash outflow will be higher by this amount, the amount of expenses for the purchase of materials included in the cost of goods sold, the profit will also be overestimated by this amount and must be adjusted, that is, decreased.

The increase in inventories should be deducted from the amount of net profit, and their decrease should be added to the net profit, since we overestimate the amount of cash outflow by this amount, that is, we underestimate the profit. In fact, an increase in inventories does not entail an increase in cash to the same extent as profit.

Accounts receivable management. One of the most significant components of the company's working capital is accounts receivable, that is, debt rights to customers. Accordingly, the turnover of funds in accounts receivable significantly affects the turnover of all working capital of the enterprise. It should be emphasized that solving the problem of accelerating the turnover of funds in accounts receivable is one of the most difficult tasks of financial management at industrial enterprises. The fact is that the traditional assignment of debt rights to clients for quickly realizable circulating assets (promissory notes receivable, debts to the enterprise of its employees and some others - quickly realizable circulating assets) in the conditions of the economy in transition in relation to industrial enterprises is not confirmed by reality.

1. Development of the direction of profitability assets enterprises and grade efficiency proposed by

   Abstract >> Finance

   ... assets enterprises and grade efficiency ... financing for the acquisition and maintenance assets... Lack of certain types assets ... circulating assets, reveal the turnover rate circulating assets and efficiency use non-circulating assets ...

2. Grade efficiency use financial resources of the organization of the Kiznersky district

   Thesis >> Financial Sciences

   And building up production capacity enterprises, as well as financing current economic activity. From... circulating funds for the outcome of the second section asset balance sheet. One of the main indicators appraisals efficiency use ...

3. Grade efficiency use resources of the organization

   Coursework >> Financial Sciences

   ... "Finance enterprises " on the topic: " Grade efficiency use resources of the organization "... the total grade: assets enterprises and their sources financing; quantities ... acceleration of turnover circulating funds for enterprise appropriate: ...

4. Negotiable funds enterprises. Grade efficiency use circulating funds

   Coursework >> Finance

   Sources financing circulating funds are also commercial loans of other enterprises and organizations ... investments, other circulating... Analysis assets enterprises carried out in order appraisals efficiency them use, identifying on-farm ...

The consolidation factor is the inverse of the turnover ratio and shows the amount of working capital per one ruble of products sold.

14. Turnover of funds in calculations (in turnover)

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This indicator shows the expansion or decrease of the commercial loan provided by the enterprise.

15. Turnover of funds in calculations (in days)

This indicator characterizes the average maturity of accounts receivable. The decrease in the coefficient is positively assessed.

16. Inventory turnover (in turnover)

Inventory turnover - reflects the number of inventory turnover and enterprise costs for the analyzed period. A decrease in the ratio indicates a relative increase in inventories and work in progress

Inventory turnover (in days)

17. Duration of the operating cycle

Pro.c. = Turnover of funds in calculations (in days) + inventory turnover (in days)

The duration of the operating cycle characterizes the total time during which financial resources are in tangible assets and receivables. It is necessary to strive to reduce this indicator.

Duration of the financial cycle

Prf.c. = duration of the operating cycle - accounts payable turnover (in days)

The duration of the financial cycle is the time during which financial resources are diverted from the turnover. The goal of working capital management is to shorten the financial cycle, i.e. shortening the operating cycle and slowing down the payables turnover period to an acceptable level.

Accounts payable turnover (in turnover)

This indicator shows the rate of turnover of the company's debt. The acceleration adversely affects the liquidity of the enterprise.

Accounts payable turnover (in days)

This indicator shows the period for which the company covers urgent debt. Deceleration of turnover, i.e. an increase in the period is characterized as a favorable trend.

Turnover rates are extremely important for a business organization. An organization with a small amount of funds, but using them effectively, can make the same turnover as a company with a large volume, but at a slower rate.

With the size of current assets, and, consequently, with turnover, the relative amount of costs of a conditionally constant nature is associated: the faster the turnover, the less these costs fall on each turnover and, therefore, the lower the cost per unit of sales.

The acceleration of the turnover at the stage of the circulation of funds forces the turnover to be accelerated at other stages.

Acceleration of the turnover of working capital means saving time and releasing funds from circulation. This allows the organization to get by with a smaller amount of working capital to ensure the release and sale of products or, with the same amount of working capital, to increase the volume and improve the quality of products.

3. Analysis of the financial condition of JSC "Burvodstroy"