Page 1
Efficiency of use financial resources is determined by their turnover. In this case, it can be analyzed as the total amount of financial resources commercial organization, and their individual types.
The efficiency of the use of financial resources is determined by their turnover.
The efficiency of the use of financial resources is determined by their turnover. In this case, you can analyze both the total amount of the financial resources of the enterprise, and their individual types.
The effectiveness of the use of financial resources is largely determined by the effectiveness of the system for their distribution and control over the results of use. Regular and in full size payment of interest for a loan, liquidation of debts of enterprises.
The efficiency of the use of financial resources is considered within the framework of the management of current assets. In particular, it calculates the turnover of inventories and funds in the calculations, the duration of the operating and financial cycles and other indicators. The corresponding methods and their characteristics are given in the special literature. Here we just note that the acceleration of the turnover of investments in current assets is seen as a favorable trend.
The efficiency of the use of financial resources largely depends on the rhythm of production, national use Money available at the disposal of the enterprise, the costs incurred for the production of tsrsduktski, timely and full satisfaction of payments and obligations provided for in the financial plan of the enterprise. The financial condition depends on many aspects of the enterprise, and primarily it is determined by the action of production factors.
To characterize the efficiency of the use of financial resources in world practice, the indicators of return on investment are used: all funds (assets), net assets, in operating funds, own investments, in shares of other enterprises.
As part of the management of current assets, the efficiency of the use of financial resources is considered. Here, turnover indicators are calculated (table 15), as well as the duration of the operating and financial cycles.
Financial policy should pursue the goal of increasing the volume and efficiency of the use of financial resources.
Results in any area of business depend on the availability and efficiency of use of financial resources, which are equated to the circulatory system, which ensures the life of the enterprise. Therefore, taking care of finances is the starting point and end result of the activities of any business entity. In a market economy, these issues are of paramount importance.
Results in any area of business depend on the availability and efficiency of use of financial resources, which are equated to the circulatory system, which ensures the life of the enterprise. Therefore, taking care of finances is the starting point and end result of the activities of any business entity. In a market economy, these issues are of paramount importance. Highlighting financial aspects activities of business entities, the increasing role of finance is characteristic feature and trend all over the world.
The plan and the cash flow statement concretize and detail the current financial plan, clarify its indicators, make it possible to use all available reserves for increasing the efficiency of the enterprise's financial resources, give a complete picture of the state of payments and settlements in the analyzed period. With the help of these documents, the compilation of estimates of costs, production and circulation costs is controlled; product release and sales structural divisions and branches; the level of self-sufficiency and profitability.
One of the most important conditions for the successful management of an entrepreneurial firm is the analysis of its financial condition, since the results in any area entrepreneurial activity depend on the availability and efficiency of use of financial resources.
If the main task state control is to promote the successful implementation financial policy state through ensuring compliance with financial legislation, financial discipline, preventing the misuse of budgetary and extra-budgetary funds, the main task of non-state control is to increase the efficiency of the use of financial resources of economic entities, to ensure the reliability of financial reporting indicators.
The problem of improving the management of financial resources is urgent and attracts more and more attention of representatives of financial science. Very often there are many problems in the formation of financial resources, as well as when there is a question of their effective use.
Evaluation of the effectiveness of the use of financial resources includes different components and for this process a whole system of indicators is used that characterize changes: 1. the structure of the organization's capital in terms of its placement and sources of education; 2. the effectiveness and intensity of its use; 3. the solvency and creditworthiness of the organization; 4. stock of its financial stability.
Let's highlight the main methods for assessing the effectiveness of the use of financial resources:
Method of calculating profitability
Profitability shows the profit received from each ruble of funds invested in an enterprise or other financial transactions. Indicators of profitability more fully than profit, reflect the results of the enterprise; they are used as instruments of investment and pricing policy. The overall profitability of the enterprise can be calculated using the formula:
Profitability = (Profit / Cost of production)
Financial ratios analysis method (R-analysis):
This method is based on calculating the ratio of various indicators of the financial activity of an enterprise among themselves. In financial management, the most widespread are the following groups of analytical financial ratios: autonomy ratio: Ka = Equity / Assets;
financial dependence ratio: Кфз = Liabilities / Assets;
Asset turnover ratio: K ob.act. = Sales volume / Average total assets
coefficients for assessing capital turnover: To about. drip = Net sales / Average annual cost of capital
Method for assessing the cost of financial resources
The cost of financial resources of an enterprise serves as a measure of the profitability of economic activity and characterizes the part of the profit that must be paid for the use of new capital to support the reproduction process and product sales. This method calculates: - the value of the functioning equity capital of the enterprise:
St Cap = Total Assets - Total Liabilities - Weighted Average Cost of Capital:
WACC = Rzk * Dzk + Rsk * Dsk,
where Рзк - the price of the borrowed capital; Дзк - the share of borrowed capital in the capital structure; Rsk - the price of equity capital; Dsk - the share of equity in the capital structure.
- the marginal efficiency of capital.
Pek = Increase in the level of profitability of additionally attracted capital / Increase in the weighted average cost of additionally attracted capital
Evaluation of the effectiveness of the use of financial resources is necessary for making management decisions that are aimed at increasing profitability, identifying the causes of losses, and ensuring a stable financial condition. The quality of this assessment depends on the effectiveness of management decisions, which are associated with the further use of own, borrowed and borrowed financial resources.
Thus, it becomes clear that the results that are revealed in the process of assessing the effectiveness of the use of financial resources underlie the development of measures aimed at more efficient management of financial resources, more rational distribution of profits, which ultimately contributes to an increase in the value of the entire commercial enterprise.
Enterprises of many national economic complexes, which are vital for the country, are essentially now on constant undercrediting of commercial banks in direct and indirect forms of such undercrediting. This may well include defense complex, agro-industrial and a number of others.
The problem of time lag arose sharply. For any delay in the receipt of funds, regardless of the reason for the delay, businesses suffer hidden losses. The funds received with a significant time lag, or the funds owed to the enterprise, can no longer be directed in full into the circulation. To a certain extent, they are increasingly turning into a source of repayment of credit obligations.
With the transition to market relations, monetary and payment and settlement relations begin to operate in a somewhat transformed form. From the system of monetary relations to ensure the circulation of funds of enterprises in sectors of the economy, credit relations increasingly appear on the surface of the phenomena of economic life as a banking and non-banking method of maintaining solvency. Payment and settlement relations, to a certain extent, become dependent on credit, lose the once rigid connection with the turnover of real money (as is the case with regard to the turnover of treasury bills, government bills and commercial structures), do not fully fulfill their purpose, acting as a powerful slowing down factor valid appeal working capital.
The organization of enterprise finances in the context of a constant lack of financial resources and the difficulties in the payment and settlement sphere, natural during the transition period, reflects the deformed structure of the sources of the circulation of funds. From the calculations for the sale of products (works, services) and the receipt of other receivables from counterparties, many enterprises are forced to switch to emission methods of increasing (preserving) their own capital. This refers to the unsecured issue of own shares beyond any real hopes of paying dividends to shareholders (this later acts as the worst type of attracting financial resources), issuing own debt obligations in the form of bonds and bills, as well as accepting bills for payment to cover receivables, issued by other enterprises.
A reflection of the actual state of the circulating assets of our enterprises is also the banking mechanism for granting loans, which, on the one hand, turned into a transitional period from once deeply differentiated into a fairly unified one. On the other hand, this mechanism, which until recently was reduced to simply concluding a loan agreement or monitoring the security of a loan through insurance against the risk of default, today has acquired an almost ubiquitous collateral nature. First of all, on the security of real estate, security of treasury obligations.
In addition, as a source of credit for the circulation of funds, many enterprises today use the pledge of bonds of the internal state foreign exchange loan (VEB). Less often, in the circulation of enterprise funds and the structure of their sources of formation, borrowed funds appear, received on the security of corporate valuable papers... Today these are the so-called "blue chips" - shares of the largest oil and gas companies, RAO UES of Russia and others.
Today, there is almost no credit coverage of the needs of enterprises for their own circulating assets secured by bills of exchange, although selected sites farms such lending takes place.
The credit form of the movement of value acquires in the transition period as a whole, manifestations that were not characteristic of it earlier (including cash). Repo agreements are actively used, which leads to the appearance of the emergence of its own source in the circulation of the enterprise's funds (in fact, this is a credit source). At the same time, at the stage of primary and secondary (redemption) transactions financial results, as a rule, vary greatly up to the exact opposite, which can cause strong fluctuations, depending on the volume of the transaction, of own and equivalent circulating assets. This only confirms the conclusion that payment and settlement relations in many cases cease in a transitional economy to reflect the actual economic content of funds transfer transactions carried out through banks. Combined payment methods using non-cash and cash are being developed.
Under the influence of difficulties with circulating assets, almost all business entities today are seeking prepayment for commodity supplies, work and services, which, on the one hand, has a positive effect on the turnover of their circulating assets, and on the other hand, it slows down turnover. revolving funds enterprises that paid for the delivery in advance. It turns out that a kind of "balance" of these processes simultaneously occurring in the economy during the transition period tends more and more to the minus sign than to the plus sign. Otherwise, we would have a slightly different picture of the consolidated financial and credit balances.
The daily management practice of many enterprises in different industries increasingly confirms the expansion of the process of almost complete replacement of the producers' own sources of forming working capital with borrowed ones. For the sake of fairness, it should be noted that these processes of influence of credit and debts of enterprises, which are of a credit nature, on working capital are aggravated in the practice of financial and economic activity and the current tax policy of advancing the budget for a number of payments to it.
The resource problem, which is central to wide range problems of organizing the finances of enterprises in sectors of the economy, it would be illegal to see only the surface question of attracting financial resources to ensure financial and economic activities. The turnover of financial resources, their mobilization as part of such a turnover is also the question of the directions of spending, of investments that are associated with the general economic and specific financial and credit conditions of the current stage of the transition period.
If at the very beginning of the movement of the economy towards market relations, along with an increase in the number of commercial banks, enterprises of the sectors of the national economy carried out an active deposit policy, which allowed many of them to increase their own capital, or, in any case, to some extent to compensate for its losses, now the situation is another. In the structure of deposits of large, medium and small 6 banks, the overwhelming part of deposits falls not on former or current state joint-stock enterprises and organizations, but on newly created in last years commercial structures. Many enterprises in the branches of material production "left the deposits". This situation is largely due to the relative decline in the profitability of clients on their deposit operations. Investing in deposits under separate agreements or purchasing certificates of deposit became unattractive for the economy.
All this leads to the idea of the possibility and expediency of a more active policy on the part of the state in relation to enterprises, primarily manufacturers, which have small and medium-sized packages of bonds of the state internal foreign currency loan of the Ministry of Finance of the Russian Federation, i.e. help them organizationally in the consolidation of such packages into large ones, followed by effective foreign exchange or ruble lending at the expense of powerful operators of the foreign exchange bond market and large commercial banks, for which this position of earning funds may be of significant interest.
The profitability and liquidity of an enterprise are the most important issues in managing the resources of an enterprise, but few people know how to manage both. Another crucial aspect- profitability. The result of the discussion of this topic by leading experts is disappointing. Briefly, it is formulated as follows: in today's conditions, it is impossible to accurately calculate profit for management purposes, it comes about a greater or lesser degree of self-deception of leaders in this matter. The budget of income and expenses (BDR) comes to the rescue, on the basis of which a report is drawn up for the director. As a result, the usefulness of this document for the director increases dramatically.
The advantages of such a budget are obvious:
- a) Firstly, there are a lot of options for calculating profit, and you need to choose exactly the one that is optimal for this type of business. But this can only be done with a budget at hand.
- b) Secondly, using the budget, you can calculate the break-even point and the time to reach the normal development trajectory
- c) Third. If we are talking about the old businesses of the company, then with the help of the BDR, they determine where to invest money, which types of business, in terms of the amount of profit, will cover all the company's profits for a month, a year.
- d) Finally, take a bank loan or investment. The financial guarantee of the return of this money can be traced mainly from the budget here, because, say, the interest on the loan can be attributed to the prime cost of the loan, and the loan should be returned according to the rules from the net profit. By the way, here we are solving a delicate problem related to the fact that the budget is needed to show profitability, but no one wants to show it (in other words, internal and external reporting in this case perform exactly opposite functions).
Here the financial result is calculated, which depends on the formation of the initial data and accounting policies.
The first indicator of business profitability for a director is gross (marginal) profit (net sales minus direct costs) - by Western standards, it should not be less than 33%. In Russia, due to the instability of business, huge reserves are needed, so the standard rises to 50%. The profit margin shows what it really is, everything else can be hidden, but it cannot be hidden, this is the main guideline for the director
With regard to overhead costs, the function of the budget is to set hard limits in absolute terms. The main difficulty is connected with the strategic purpose of the BDR - to calculate the profit by business. This is the problem of distributing general company costs to the financial accounting centers (FSC), and today it does not have an optimal solution.
The problem is that the BDR as a whole for the company is determined by accounting methods, but in the case of the DFS these methods are not enough. When it is necessary to calculate the financial result of a separate accounting center, you need to somehow post the general company costs, but there is no accounting entry of technology or a rule for this. Moreover, there are no universal algorithms for such a distribution - this is what is called a financial management policy, which significantly affects financial results. One option is when you get 10 percent of your advertising costs for your DFS, and a completely different option is when 50 percent. There can be countless such options, and each of them generates a model of intracorporate cost accounting.
In other words, the qualification of a manager is to know, firstly, the principle of the formation of such models and, secondly, in what cases which model is optimal. At the same time, there is no ideal model, so it is most reasonable to get down to business right away (the technology for constructing such a model is very simple). The result obtained by the scientific poke method will appear quickly. Departments, which feel infringed after two or three iterations of this budget, will pose a question to the management about the wrong allocation scheme for this or that item. A compromise must be found here, so each diversity model is a compromise model that partially infringes upon the interests of everyone.
If we talk about the completeness of financial results, then it is obvious that not only costs but also other budget lines, that is, revenue and taxes, must be taken into account for the FSC. In Western accounting practice, this is solved simply by keeping a balance sheet and chart of accounts for each allocated DFS. However, in Russian conditions, this is associated with difficulties, sometimes insurmountable.
As for taxes, due to the peculiarities tax legislation and established practice, the general company tax is not necessary is equal to the sum taxes on individual businesses. That is, it is better to refuse it right away. The problem of accounting for income of a DFS is relatively easy to solve if it is a separate business that introduces final products and services to the market. Otherwise, when the accounting center is in the middle of the technological chain, the question arises at what prices it sells its products and services. The problem arises transfer pricing This greatly complicates the life of the director.First, it will take special unit(treasury or settlement center) for centralized price determination within the company and the development of special settlement procedures, which is expensive in itself Secondly, centrally set prices, by definition, cannot be correct, therefore, this is just another compromise.
Thus, a decent option for most companies is deliberately simplifying the budget, when it comes to DFS, to the cost line. In fact, the calculation of the BDR is reduced to the calculation of the cost price.
The presence of an enterprise's own working capital, its composition and structure, the rate of turnover and the efficiency of using working capital largely predetermine the financial condition of the enterprise and the stability of its position in the financial market, namely: Savitskaya N.I. Analysis of the financial and economic activities of the enterprise. - M.: INFRA-M, 2006 - p. 280
- - solvency, i.e. the ability to repay your debt obligations on time,
- - liquidity - the ability to make the necessary expenses at any time;
- - opportunities for further mobilization of financial resources
The effective use of working capital plays an important role in ensuring the normalization of the enterprise, increasing the level of profitability of production and depends on many factors. V modern conditions huge Negative influence the change in the efficiency of the use of working capital and a slowdown in their turnover are influenced by the factors of the crisis state of the economy:
- - decrease in production volumes and consumer demand;
- - high rates of inflation;
- - breaking of economic ties;
- - violation of contractual and payment and settlement discipline;
- - high level tax burden;
- - reduced access to loans due to high bank interest rates.
All of these factors affect the use of working capital, regardless of the interests of the enterprise. At the same time, enterprises have internal reserves for increasing the efficiency of the use of working capital, which it can actively influence. These include:
- - rational organization of production stocks (resource conservation, optimal rationing, use of direct long-term economic ties);
- - reducing the stay of working capital in work in progress (overcoming the negative trend towards a decrease in capital productivity, introducing the latest technologies, especially non-waste, renewal of the production apparatus, the use of modern cheaper construction materials);
- - efficient organization circulation (improving the settlement system, rational organization of sales, bringing consumers of products closer to their manufacturers, systematic control over the turnover of funds in settlements, fulfilling orders through direct communications).
A generalizing indicator of the efficiency of using working capital is the indicator of its profitability (R ok), calculated as the ratio of profit from the sale of products (P rp) or other financial result to the value of working capital (C ok):
This indicator characterizes the amount of profit received for each ruble of working capital, and reflects financial efficiency the work of the enterprise, since it is the working capital that ensures the turnover of all resources at the enterprise.
In Russian business practice, the efficiency of using working capital is assessed through the indicators of its turnover. Since the criterion for assessing the efficiency of working capital management is the time factor, indicators are used that reflect, firstly, the total turnover time, or the duration of one turnover in days, and, secondly, the turnover rate.
The duration of one turnover is made up of the residence time of the working capital in the sphere of production and the sphere of circulation, starting from the moment of acquiring inventories and ending with the receipt of proceeds from the sale of products manufactured by the enterprise. In other words, the duration of one turnover in days covers the duration of the production cycle, and the amount of time spent on the sale of finished products, and represents the period during which the circulating assets go through all stages of the circulation in a given enterprise.
The duration of one turnover (turnover of working capital) in days OB is determined by dividing the working capital C ok by one-day turnover, defined as the ratio of the volume of sales of the RP to the duration of the period in days D or as the ratio of the duration of the period to the number of revolutions To about:
The shorter the duration of the circulation period or one working capital, the less, other things being equal, the enterprise needs less working capital. The faster circulating assets make a circuit, the better and more efficiently they are used. Thus, the time of capital turnover affects the need for total working capital. Reducing this time is the most important direction financial management leading to an increase in the efficiency of the use of working capital and an increase in their return.
The turnover rate characterizes the direct turnover ratio (number of revolutions) for a certain period of time - a year, a quarter. This indicator reflects the number of circuits made by the working capital of the enterprise, for example, per year. It is calculated as the quotient of dividing the volume of sold (or marketable) products by working capital, which is taken as the average amount of working capital:
Direct turnover ratio shows the value of sold (or marketable) products per 1 ruble of working capital. An increase in this coefficient means an increase in the number of revolutions and leads to the fact that:
- - the output of products or the volume of sales for each invested ruble of working capital is growing;
- - for the same volume of production, a smaller amount of working capital is required.
Thus, the turnover ratio characterizes the level of production consumption of working capital. The growth of the direct turnover ratio, i.e. an increase in the rate of turnover made by circulating assets means that the company rationally and efficiently uses circulating assets. A decrease in the number of revolutions indicates a deterioration in the financial condition of the enterprise. The inverse ratio of turnover or the coefficient of loading (consolidation) of working capital shows the amount of working capital spent on each ruble of sold (marketable) products, and is calculated as follows: Financing and lending of trade, Catering and material and technical supply / ed. E.G. Zontova - Minsk, Higher School, 1990 - p. 150
where K s is the load factor.
Comparison of the turnover and load ratios in dynamics makes it possible to identify trends in the change in these indicators and to determine how rationally and efficiently the working capital of the enterprise is used.
Turnover indicators can be calculated for all circulating assets and for their individual elements, such as inventories, work in progress, finished and sold products, funds in settlements and accounts receivable. Inventory turnover is calculated as the ratio of production costs to average stocks, the turnover of work in progress - as the ratio of goods received to the warehouse to the average annual volume of work in progress, the turnover of finished products - as the ratio of shipped or products sold to the average value of the finished product. The turnover indicator in the calculations is the ratio of sales proceeds to average receivables. The listed indicators make it possible to conduct an in-depth analysis of the use of own working capital (they are called private turnover indicators).
The turnover of working capital can accelerate or slow down. When the turnover slows down, additional funds... The effect of accelerating turnover is expressed in reducing the need for working capital in connection with the improvement of their use, their savings, which affects the increase in production volumes, and as a result, on the financial results. The acceleration of turnover leads to the release of part of the working capital (material resources, cash), which are used either for the needs of production, or for accumulation in the current account. Ultimately, the ability to pay and financial condition improves.
The release of working capital as a result of the acceleration of their turnover can be absolute and relative. Absolute release is a direct decrease in the need for working capital, which occurs in cases where the planned volume of production is fulfilled with a smaller volume of working capital compared to the planned need.
The relative release of circulating assets occurs in those cases when, in the presence of circulating assets within the planned requirements, the overfulfillment of the production plan is ensured. At the same time, the growth rate of the volume of production outstrips the growth rate of the balances of working capital.
Working capital management is essential in addressing a key financial health problem: achievement optimal ratio between the growth of profitability of production (maximization of return on invested capital) and the provision of sustainable solvency, which serves external manifestation financial stability of the enterprise. An extremely important task is also the provision of stocks and costs of the enterprise with the sources of their formation and maintaining a rational ratio between its own working capital and borrowed resources allocated to replenish working capital.
Profitability, in contrast to the profit of an enterprise, which shows the effect of entrepreneurial activity, characterizes the effectiveness of this activity. Profitability is a relative indicator that reflects the degree of profitability of an enterprise. V market economy there is a system of indicators of profitability.
The profitability of all products sold can be defined as:
- - the percentage of profit from the sale of products to the costs of its production and sale;
- - the percentage of profit from sales of products to proceeds from sales of products;
- - the percentage of balance sheet profit to proceeds from product sales;
- - the ratio of net profit to proceeds from product sales.
These indicators give an idea of the efficiency of the current costs of the enterprise and the degree of profitability of the products sold.
The profitability of certain types of products depends on the price and full cost... It is defined as the percentage of the selling price of a unit of a given product minus its total cost to the total cost of a given product.
The return on property (assets) of an enterprise is calculated as the percentage of net profit to the average value of assets (property).
The profitability of non-current assets is defined as the percentage of net profit to the average value of non-current assets.
The profitability of current assets is defined as the percentage of net profit to the average annual value of current assets.
The return on investment is defined as the percentage of gross profit to the value of the assets of the enterprise.
Return on equity is calculated as a percentage of net profit to equity.
Profitability indicators are used in the analysis of financial and economic activities, management decisions, decisions of potential investors on the participation of financing investment projects.