The cost of a functioning equity enterprises in the reporting period (CKfo) is determined by the following formula:

where CKfo is the cost of the operating equity capital of the enterprise in the reporting period, %;

NPV - amount net profit, paid to the owners of the enterprise in the process of its distribution for the reporting period;

SK - the average amount of equity capital of the enterprise in the reporting period.

It is quite obvious that if an enterprise does not have shares or has but does not pay dividends on them, or there is no demand for its shares, then this formula becomes inapplicable for assessing its capital stock, since the numerator will be equal to zero.

Cost of borrowed capital in the form bank loan(SBC) is estimated using the following formula:

where SBK is the cost of borrowed capital attracted in the form of a bank loan,%;

PKB - interest rate for a bank loan, %;

ZPb - the level of expenses for attracting a bank loan to its amount, expressed as a decimal fraction.

The cost of borrowed capital raised through the issue of bonds (SOZk) is determined by the formula:

where SOZk is the cost of borrowed capital raised through the issue of bonds, %;

SC - coupon interest rate on the bond, %;

SNP - income tax rate, expressed as a decimal fraction;

EZo is the level of emission costs in relation to the emission volume, expressed as a decimal fraction.

The principle of a general assessment of the cost of capital. An element-by-element assessment of the cost of capital serves as a prerequisite for the general calculation of this indicator. Such a general indicator is the weighted average cost of capital (WAC), which is calculated using the formula

where SSC is the weighted average cost of capital;

Ci - the cost of a specific element of capital; - the share of a specific element of capital in the total amount

The principle of comparability of the assessment of the cost of equity and borrowed capital. In the process of assessing the cost of capital, it should be borne in mind that the amounts of equity and borrowed capital used, reflected in the liability side of the enterprise’s balance sheet, have a disparate quantitative value.

If provided for use by an enterprise borrowed capital in monetary or commodity form is valued at an amount at prices close to market ones, then the equity capital reflected in the balance sheet in relation to the current market value is, as a rule, significantly underestimated.

To ensure comparability and correctness of calculations of the weighted average cost of capital, the amount of its own part must be expressed in the current market valuation.

The principle of dynamic assessment of the cost of capital. The factors influencing the weighted average cost of capital are very dynamic, therefore, as the cost of individual elements of capital changes, adjustments must be made to its weighted average value. In addition, the principle of dynamic assessment assumes that it can be carried out both for already formed and for capital planned for formation (attraction).

The principle of the relationship between the assessment of the current and future weighted average cost of capital of an enterprise. This relationship is ensured by using the marginal cost of capital indicator. It characterizes the level of cost of each new unit additionally attracted by the enterprise. At each stage of the enterprise's development, attracting additional capital to an enterprise, both from its own and from borrowed sources, has its own economic limits and, as a rule, is associated with an increase in its weighted average cost. Therefore, the dynamics of the marginal cost of capital indicator must be taken into account in the management process financial activities enterprises. By comparing the marginal cost of capital with the expected rate of profit for individual business operations that require additional capital, it is possible to determine in each specific case a measure of the effectiveness and feasibility of such operations. This primarily applies to investment decisions made.

Net working (working, operating) capital (NWC - Net Working Capital) is the amount of long-term capital of an organization remaining to finance its current activities (i.e., the acquisition of current assets for the production cycle), after financing.

1. Add and and subtract from the sum.
2. Or subtract from .

The result will be the same, although the second method usually seems incomprehensible.

An alternative, more accurate calculation option is possible when indicators are used, but in practice it is not used.

It characterizes liquidity because it shows the amount of long-term capital used to finance short-term production needs, that is, in fact, the amount of long-term capital used in current assets.

It characterizes financial stability because it shows the possibility and extent of ensuring long-term financing of short-term financial needs.

Calculation formula (according to reporting)

Line 1300 plus line 1400 minus line 1100

line 1200 minus line 1500

balance sheet

Standard

Not standardized, but preferably greater than zero.

Conclusions about what a change in indicator means

If the indicator is higher than normal

Talks about increased liquidity and financial stability.

If the indicator is below normal

Speaks of reduced liquidity and financial stability.

If the indicator increases

Usually a positive factor

If the indicator decreases

Usually a negative factor

Notes

The indicator in the article is considered from the point of view not of accounting, but financial management. Therefore, sometimes it can be defined differently. It depends on the author's approach.

In most cases, universities accept any definition option, since deviations according to different approaches and formulas are usually within a maximum of a few percent.

The indicator is considered mainly free service and some other services

If you see any inaccuracy or typo, please also indicate this in the comment. I try to write as simply as possible, but if something is still not clear, questions and clarifications can be written in the comments to any article on the site.

Best regards, Alexander Krylov,

The financial analysis:

• Definition Coverage factor working capital own sources of formation (Equity Ratio) is an indicator that answers the question what share of current assets is covered by own...
• The definition of TOTAL under Section III 1300 is the sum of indicators for lines with codes 1310 - 1370 and reflects the total amount of the organization’s own capital: 1310 “ Authorized capital…
• Definition BALANCE 1700 is the total value of the organization's liabilities. This is the sum of the indicators on lines 1300, 1400, 1500, that is, equity capital, long-term liabilities and short-term...
• Definition The ratio of coverage of current assets with net working capital is an indicator characterizing what proportion of current assets is financed by net working capital. That is, it shows what...
• Definition of TOTAL under Section IV 1400 is the sum of indicators on lines with codes 1410 - 1450 - the total amount of long-term liabilities of the organization: 1410 “Borrowed funds” 1420 “Deferred...
• Definition The share of working capital in assets is the ratio of the value of current assets to the total assets of the enterprise. Current assets compared to outside current assets- noticeably...
• Definition A4 - P4 is the fourth solvency inequality (all solvency inequalities). It is balancing and is automatically satisfied when the remaining inequalities are satisfied. That is, his...
• Definition Net return on equity is the ratio of net profit (loss) to the enterprise's existing equity capital. For the owners of the organization, this is a critical parameter, because...
• Definition Authorized capital (share capital, authorized capital, contributions of partners) 1310 is the amount of authorized (share) capital registered in constituent documents as a set of deposits (shares, stocks, shares...
• Definition The functional capital agility ratio is the share of inventories in the functional capital. And functional capital (own current assets) is the difference between current assets and short-term...

Functioning capital- The value that characterizes the availability of own funds after repayment of all current obligations; on the liability side, this indicator can be defined as the sum of equity and long-term liabilities minus long-term assets

Working capital fund funds of the enterprise advanced into working capital production assets and circulation funds to ensure continuity of production. Working capital(synonyms: working capital, mobile assets, current assets) are funds that circulate (...money-funds-money...) during the year or one production cycle; consist of two parts: constant and variable working capital.

23. Current assets and short-term liabilities

Current assets- assets that can be converted into cash within one production cycle or one year.

Unlike a company's long-term assets, current assets are not intended to last. Types of current assets: 1. Highly liquid assets

2. Cash in banks

3. Cash 4. Marketable securities 5. Accounts receivable 6. Deposits 7. Employee accounts 8. Other outstanding bills 9. Prepaid expenses 10. Inventories 11. Finished goods 12. Work in progress

13.Raw materials. Current assets include those that can be converted into money in a fairly short time.

Short-term liabilities- debt obligations with a maturity of up to one year.

24. Planning needs and selecting sources of financing working capital

Planning the need for working capital is based on the chosen type of policy for the formation of current assets, ensuring a given level of correlation between the efficiency of their use and risk.

The process of planning current assets consists of three stages:

At the first stage, a system of measures is determined to implement reserves aimed at reducing the duration of the operating, and within its framework, the production and financial cycles of the enterprise. At the same time, reducing cycle times should not lead to a decrease in production volumes and sales of products;

At the second stage, the volume and level of individual types of these assets are planned. The means of such planning is the rationing of their turnover period and amount;

At the third stage, the total volume of current assets of the enterprise is determined for the upcoming period: OAp = ZSp + ZGp + DZp + DAp + Pp, where OAp is the total volume of current assets of the enterprise at the end of the upcoming period under consideration; ZSP - the amount of stocks of raw materials and supplies at the end of the upcoming period; ZGP - the amount of finished goods inventories at the end of the upcoming period (including the recalculated volume of work in progress); DZp - the amount of receivables at the end of the upcoming period; DAp - the amount of monetary assets at the end of the upcoming period; Pp is the amount of other types of current assets at the end of the upcoming period.

Optimization of the structure of sources of financing of the company's current assets.

When determining the structure of this financing, the following groups of sources are distinguished:

Own capital of the enterprise;

Long-term financial loan;

Short-term financial loan;

Commodity (commercial) credit;

Internal accounts payable of the enterprise.

The volume of financing of current assets through a short-term financial loan is determined on the basis of the projected amount of net current assets (in accordance with the chosen type of policy for their financing) and the projected volume of their current financing (current financial needs). Calculation of the planned need for a short-term financial loan is carried out according to the formula:

KFKp = CHOAc - OTFp, where

KFKp – planned need for a short-term financial loan;

NOAc is the projected amount of net current assets (net working capital);

OTFp - the projected volume of current financing of current assets (current financial needs) of the enterprise.

The participation of own and long-term borrowed capital in the financing of net current assets is determined based on the goals of attracting long-term financial credit. Calculation of the volume of financing of net working capital through a long-term financial loan is carried out according to the formula:

DFKoa=DFK-DFKva, where

DFKoa - the amount of long-term financial credit invested in current assets (net working capital);

DFK - the total amount of long-term financial credit attracted by the enterprise at the beginning of the planning period;

DFKva - the amount of a long-term financial loan attracted by an enterprise for targeted financing of the development of non-current assets (capital construction of new facilities, financial leasing of equipment, etc.).

Accordingly, the calculation of the volume of equity capital invested in current assets (net working capital) is carried out using the formula:

SKoa=CHOAp-DFKoa, where

SKOa - the amount of equity capital invested in current assets (net working capital);

NOAp - the projected amount of net current assets (net working capital);

DFKoa is the amount of long-term financial credit invested in current assets (net working capital).

The results of the developed policy for the formation and financing of current assets are reflected in the consolidated planning document - the balance sheet for the formation and financing of current assets. This balance allows us to link the total need for current assets with the planned volume of financial resources attracted from different sources to ensure their formation

Catalog: operating capital on the balance sheet

1. Operating capital ratio
   Calculation formula based on the new balance sheet of Kfk from 2110 Form 2 from 1200 n Form 1 from 1200 to Form... Coefficient functioning capital - meaning Accelerating the turnover of working capital leads to the release of the enterprise's working capital from
2. Operating capital maneuverability ratio
   Calculation formula based on the balance sheet data of Kmfk Page 1300 Form 1 - Page 1100 Form 1 Page 1300 Form 1 ... Form 1 Maneuverability coefficient functioning capital - value According to the indicator Maneuverability coefficient functioning capital can be judged what part of it
3. Distribution balance sheet items in the analysis of enterprise liquidity indicators
   However, from the opposite point of view, if there is sufficient confidence that the contract cannot be terminated, the amounts taken into account under the article are part of the equity capital that actually functions and brings profit to the enterprise. Solving problems associated with the calculation of liquidity indicators
4. Improving the financial reporting model under IFRS
   The data necessary to calculate the amount of free cash flow using the indirect method and compiling an actuarial balance sheet of cash flows based on equation 1 is contained in the actuarial balance sheet and the actuarial statement of comprehensive income. The calculation of the amount of free cash flow can be done differently... Due to the fact that the change in net operating assets consists of change functioning capital changes in current operating assets and operating liabilities and changes in long-term assets that reflect
5. Financial analysis in the organization's management system
   Kovalev 2, p. 16 uses an object-procedural approach to defining financial management as an independent scientific and practical direction based on two key ideas: 1 financial management is a system of actions to optimize the financial model of a company or, in a narrower sense, its balance sheet, which allows you to highlight all objects of attention financial manager 2 The dynamic aspect of the financial manager’s activity is determined by the formulation of five key questions that determine the essence of his work. whether the position of the enterprise in the markets of goods and factors of production is favorable and what measures contribute to its non-deterioration. do they provide cash flows rhythm of payment and settlement discipline. Is the enterprise operating efficiently on average? where to invest financial resources with the greatest efficiency. where to get it... Considering the batane as a financial model of the company in the context management decisions financial management, we will show in the diagram the relationship between the balance sheet and management decisions on investment and raising capital, Fig. 1 Requirement for assets value
6. Assessing the financial stability of an organization based on annual financial statements
   FC - functioning capital is the difference between own working capital and long-term receivables together with... VA - non-current assets, section 1 of the balance sheet asset DO - long-term liabilities 2. Availability of own and long-term borrowed sources for the formation of reserves and
7. Comprehensive analysis of the company’s financial stability: coefficient, expert, factor and indicative
   SK FC SK where FC - functioning capital is the difference between own working capital and long-term accounts receivable together with... The growth of this indicator in dynamics indicates an improvement in the structure of the balance sheet and an increase in the level of financial stability Recommended value - from 0.2 to 0.5 Financial ratio
8. Current issues and modern experience in analyzing the financial condition of organizations - part 4
   This means that the organization is provided with certain types of sources, its own credit and others, since the sufficiency of the sum of all possible types of sources, including short-term accounts payable and other liabilities, guarantees the identity of the results of the assets and liabilities of the balance sheet. The degree of financial stability of the organization is determined based on the presence of the following main sources of reserves and. .. BEFORE the formation of inventories and costs or functioning capital of KF KF SK DO VA 8 - the total value of the main sources of reserves formation
9. Working capital agility ratio
   The working capital agility ratio shows what part functioning capital is immobilized in inventories and long-term receivables Working capital agility coefficient - ... Calculation formula based on balance sheet data Kmok Page 1300 Form 1 - Page 1100 Form 1 Page 1300 Form 1
10. Solvency analysis
    L5 shows which part functioning capital is immobilized in inventories and long-term receivables For 2014, the analyzed indicator
11. Mobile turnover rate
    Calculation formula based on the new balance sheet Koms c 2110 Form 2 c 1200 n Form 1 c 1200 k Form... Synonyms coefficient functioning capital working capital ratio working capital turnover ratio working capital turnover ratio is calculated in
12. Working capital ratio
    Calculation formula based on the data of the new balance sheet Kok from 2110 Form 2 from 1200 n Form 1 from 1200 to Form... Synonyms mobile funds turnover ratio coefficient functioning capital, working capital turnover ratio, working capital turnover ratio is calculated in the FinEkAnalysis program in
13. Working capital turnover ratio
    Calculation formula based on the new balance sheet Koos from 2110 Form 2 from 1200 n Form 1 from 1200 to Form... Synonyms mobile funds turnover ratio coefficient functioning capital working capital ratio working capital turnover ratio is calculated in the FinEkAnalysis program in the block
14. Working capital turnover ratio
    Calculation formula based on the new balance sheet of Kook from 2110 Form 2 from 1200 n Form 1 from 1200 to Form... Synonyms mobile funds turnover ratio coefficient functioning capital working capital ratio working capital turnover ratio is calculated in the FinEkAnalysis program in the block
15. Financial stability of the company: problems and solutions
    Thus, based on horizontal and vertical analysis of the balance sheet of PJSOC Bashneft, we can conclude that in 2015 financial condition... SOS -36 393 504 -131374 589 -126661653 Functioning FC capital 59 829 583 367 17 766 6596036 Total value of OI sources 156
16. Analysis of the structure of the monetary capital of an economic entity: problems of formation and ways of optimization (using the example of JSC Uralkhimmash)
    This means that the price of one's own functioning capital cannot cover the costs of borrowing, the attraction of which is unprofitable every year because... Balance sheet currency - 6376 012 7 000 434 4% According to the formula for calculating the market value of a business, the cost
17. Manipulation of financial statements: schemes and methods of detection
    Red flags: Increase in revenue without a corresponding increase in cash flow, especially after a long period of time; Large, unusual or very complex transactions; especially on dates close to financial close; Unexplained increase in accounts receivable turnover in days; Significant increase in revenue relative to competitors functioning in an identical area of ​​business 2. Understatement of expenses and, accordingly, an increase in operating and net profit... For example, they can capitalize interest on borrowed funds raised not to purchase fixed assets but to cover working capital; liability expenses were not reflected at all or were shown in the wrong period. Danger signals unusual... Vertical correlation analysis allows you to analyze changes specific gravity a separate reporting item in a summary indicator, for example, in assets and compare structural changes in the balance sheet of the profit and loss statement of cash flow statements and changes in capital by
18. Features of financial analysis in agricultural enterprises
    General indicator liquidity characterizes the liquidity of the balance sheet of the enterprise as a whole Table 1 In accordance with the requirements of the classical methodology, the value of this coefficient... Maneuverability coefficient functioning capital table 4 Shows what part functioning capital is immobilized in production reserves and in
19. Development of a methodology for assessing the financial stability of organizations in the manufacturing industry
    KMSOS indicates the flexibility of using one’s own working capital; in specialized literature they are sometimes also called functioning or working capital to finance current activities In the works of G. V. Savitskaya, the standard adopts... Sources of information for analyzing the compliance of actual indicators of ratios with control values ​​are the balance sheet and profit and loss statement of the organization. Let's consider the first stage associated with the analysis and... Debt ratio and equity capital characterizes the capital structure of the company and shows how much borrowed funds the company attracted per 1 ruble invested in assets
20. Working capital management policy in the holding
    The market segment where the holding operates influences the cost structure, which in turn determines the strength of the impact of operating leverage... The market segment where the holding operates influences the cost structure, which in turn determines the strength of the impact of operating leverage, features of capital circulation, the speed of its turnover, the uniformity of receipt of payments and duration financial cycle of the cash circulation cycle... For analysis, aggregated balances of Table 2 are considered Table 2. Aggregated balances thousand rubles Costs in thousand rubles associated with

Functioning capital is determined by indicators of a different order: volume indicators of assets; structure and price of the enterprise's assets. In addition, indicators of operating capital should include volumetric indicators of current assets and the structure of current capital. Among the indicators of the structure of working capital, it is necessary to highlight the following.

The structure of individual sources and their dynamics for the period, including (the amount of own sources; the amount of long-term borrowed sources; the amount of short-term borrowed sources);

Cost, weighted average cost and cost structure of capital sources.

Aggregate indicator of the cost of capital sources.

The financial leverage effect indicator is considered as a capital management tool, and not simply as an indicator of the structure of capital sources.

Indicators of working capital include: size, composition, structure and dynamics, dynamics of turnover, factors influencing turnover.

Indicators of the efficiency of capital use include: profit, result in the form of current capital, profitability, profitability, capital intensity, use of depreciation charges, changes in financial condition indicators..

Management of current assets as a production and management process also includes:

Analysis of sources of working capital formation, their structure and cost;

Analysis of functioning capital, its structure and value, in the context of fixed and working capital;

Factor analysis of current capital;

Analysis of the efficiency of capital use.

Determination of the composition of tangible and intangible capital, its structure and condition, dynamics indicators, assessment of the degree of efficiency in the use of working capital and the influence of external and internal factors on its condition, structure and dynamics, the influence of external and internal factors on the amount of current capital of the enterprise, the adequacy of the amount of current capital to the sources of formation of the enterprise’s capital and its actual placement in assets in terms of amounts and terms - the most important elements of operational management.

Cash is not directly consumed by the enterprise, but goods and services can be purchased in exchange for it. Therefore, their management does not relate to operational management, but only to cash management. By reducing current assets by the amount of cash and short-term financial investments, we obtain net current assets, which show part of the assets falling within the competence of operational management. Current liabilities are reduced by the amount of short-term loans and borrowings and form net current liabilities. Management of current assets is reflected by various indicators, including efficiency and profitability indicators, business activity, solvency, liquidity, financial stability and others. Thus, the process of managing current assets means the process of capital formation, size, structure and dynamics, balance sheet relationships between individual groups of capital sources, capital productivity while maintaining the volume of working capital, business expansion and acts as a system of economic, legal, technological, information, methodological and other relations that constitute the process of planning, forecasting, accounting, making appropriate management decisions and monitoring their implementation for finished products in the warehouse, shipped goods, cash in the enterprise's cash register and in bank accounts, accounts receivable, funds in settlements, raw materials, fuel and many other elements of the composition and structure of working capital.

1.2 Indicators of current assets management

Working capital, being an object of management, ensures the continuity of the production process and largely determines its efficiency.

The amount of working capital in management necessary for carrying out normal production activities is determined and established by developing norms and standards for working capital, which should ensure the constant need of the organization or enterprise for inventories, work in progress, cash for future expenses, as well as based on from the conditions of supply and sales.

Based on the above, you can see how complex and multifaceted the process of managing various structural elements working capital.

These include inventory management systems with fixed or variable stock costs, a system for managing norms and regulations, a system for managing the turnover of current assets, a just-in-time management system, it is also a management system for borrowed funds associated with the replenishment of working capital, an accounts receivable management system , a system for managing accounts payable turnover, a pricing policy management system and others.

Specific indicators of operational-tactical management of current assets are the resulting and intermediate indicators of profit, profitability, turnover and others, which play an important role in monitoring the activities of the enterprise. Let's look at some of them.

1 Inventory turnover period (duration of inventory turnover, production cycle) is the average period of time required to turn raw materials into finished goods and then sell them.

2 The period of one inventory turnover is often called the inventory holding period. Inventories represent: inventories of inventory items, inventories in work in progress, finished goods in warehouses.

If the storage period for industrial stocks of raw materials and materials increases with a constant production volume, this indicates an overaccumulation of inventories, that is, the creation of excess stocks.

This, in turn, leads to an outflow of funds - due to an increase in storage costs associated with property insurance and the movement of inventory, as well as due to obsolescence, damage, theft, an increase in the amount of taxes paid, due to diversion funds from circulation.

If the storage period of finished products increases with a constant production volume, this indicates that the enterprise is overstocked with its own products and is a signal to the marketing service about the need to increase operational efficiency.

2 The turnover period (repayment) of receivables is the average period of time required to convert receivables into cash, that is, to receive money from sales.

To reduce the repayment period for receivables, the following methods of managing them are used:

a) monitoring the status of settlements with customers for overdue debts. The presence of overdue debt and its increase slows down the turnover of funds, and in conditions of inflation leads to a loss of funds;

b) diversification of the risk of non-payment, i.e. focusing as much as possible on larger number buyers to reduce the risk of non-payment by one or more large buyers;