The company's working capital is in constant motion. Intuitively, the faster they turn, the less overall need there is for them.

What is the duration of a turnover? working capital?

Its minimum duration is set by the duration of the production period, i.e. the time during which the manufactured product is in production: it is obvious that before the product is manufactured, the advanced funds will not be able to return to the entrepreneur. However, in reality, the duration of the turnover will be longer, since before they enter production, advanced funds in the form of raw materials, materials, semi-finished products, fuel, etc. will remain in the warehouse for some time, and after production is completed, will remain in the warehouse for some time in the form of finished products.

The duration of the turnover of working capital would be equal to the duration of the three indicated stages if both the purchase of raw materials and materials and the sale of finished products were carried out for cash (meaning without sales on credit). If an enterprise sells its products on credit, then it is forced to wait for the receipt of money for some time after the finished products have left the warehouse, i.e. The duration of turnover increases as the receivables are repaid.

But if the enterprise must make an advance payment for raw materials and other materials, then the duration of the turnover of its working capital will increase even more, since they will have to be advanced several days before the raw materials arrive at the enterprise.

How to determine the duration of a turnover?

You can try to determine it directly according to the scheme described above: we estimate the duration of each stage, and the total duration of the turnover is determined as the sum of the durations of all stages.

This method is sometimes used when determining the need for working capital for a newly designed enterprise, since in such cases there is often no other necessary information. When calculating for existing enterprises, this method is not used, since it gives very rough estimates.

Typically, the duration of turnover is defined as the time after which the funds advanced by him are returned to the entrepreneur, and this is done by comparing the advanced working capital and the revenue received for the products sold. This method is also not free from drawbacks. We will look at some of them later.

The turnover rate of working capital is characterized by the turnover ratio and the duration of one turnover in days.

The turnover ratio is calculated using the following formula:

where B is revenue from sales of the enterprise’s products, rubles; About average - the average value of working capital, rub.

Thus, the turnover ratio characterizes the number of revolutions made by each ruble invested in the working capital of the enterprise during the period under review.

As a rule, the amount of an enterprise's working capital is fixed at a certain date (beginning of the month, quarter, etc.). At the same time, it is clear that products produced over a period of time must be compared with working capital for the same period. That is why the formula includes the average amount of working capital for the same period for which revenue from product sales is taken.

The average value of working capital for a period in the simplest case is defined as half the sum of the values ​​of working capital at the beginning (Ob Beg) and the end (Ob End) of the period, i.e.

To improve accuracy, if possible, it is better to calculate working capital according to more intermediate data (quarterly, monthly or even daily). For example, the annual average can be defined as the average value of working capital at the beginning and end of the year, or it can also take into account the values ​​at the beginning of the second, third and fourth quarters. In this case, the average annual value is determined by the so-called average chronological formula:

Let's return again to turnover indicators.

The duration of one revolution is determined by the formula

Where T- duration of the period, days.

In financial accounting and analysis, it is customary to take the duration of one month as 30 days, a quarter as 90 days, and a year as 360 days.

For effective management of working capital, it is important to know not only the duration of one turnover, but also its structure, i.e. the duration of turnover of each element of working capital. Typically the following scheme is used for analysis.

As we have already found out, the working capital of an enterprise (OBC) at each point in time can be represented as the amount of money associated: in advances issued to suppliers (A); stocks of raw materials, materials, etc. (3); work in progress (WP); inventories of finished goods (FP); accounts receivable (Db); liquid funds necessary to service turnover (L).

Let’s write the formula for working capital turnover, using in the numerator not revenue, but cost of goods sold (Sb) (in principle, you can also use revenue, but it is believed that this will be more accurate):

Let us recall that the average value of working capital for the period is taken.

Now let's write a formula to determine the duration of one revolution (L). To do this, divide the duration of the period (T) by the turnover ratio.

Now let’s imagine the company’s working capital as the amount components(taking each component as an average for the period):

In the resulting formula, each term characterizes the duration of turnover of the corresponding group of working capital. By observing these durations over time, it is possible to identify what is causing the negative change in the total duration and what element of working capital should be addressed Special attention, where reduction reserves are laid, etc. The same result will allow us to identify the comparative effectiveness of accelerating the turnover of each element of working capital, for example, by one day.

It should be noted that these formulas have one very big drawback: in reality, the above indicators (at least some of them) are not at all what they say they are, or rather, who we take them to be. It's about that some of the results obtained are quite difficult to interpret economically.

Let's consider such a conditional problem. Suppose Someone bought 100 thousand rubles at the beginning of the quarter. materials, rented premises with equipment, hired workers, evenly processed all the materials during the quarter, produced a certain amount of products, spending only 450 thousand rubles on it, and on the last day of the quarter sold the products wholesale for 500 thousand rubles. and at this point he ceased his activities.

How many turnovers did the money invested in the purchase of materials make, and how many days on average was each unit of material in the warehouse? From the logic of the problem it follows that all costs, including costs for material, made one revolution, since there was no second and subsequent revolutions, and each unit of material was in the warehouse for an average of half a quarter, i.e. 45 days

Let us now try to determine the number of revolutions using the formula, taking into account that the average balance of material in the warehouse for the quarter was

Then the inventory turnover ratio will be equal to

and the duration of one revolution

As already noted, the economic meaning of one turnover of material inventories can be interpreted as the time during which, on average, materials lie in the warehouse. In this sense, the result obtained above cannot be interpreted at all, since the material was in the warehouse not for 9 days, but much longer.

The use of costs instead of revenue in calculating material turnover does not help the situation. Using 450 thousand instead of 500 thousand in the calculation, we get a turnover ratio of 9, and the duration of one revolution is 10 days.

Therefore, the turnover indicators of individual elements of working capital - they are called private turnover indicators - are calculated using slightly different formulas. In these formulas, instead of revenue for products sold, an indicator is used that characterizes turnover (consumption or output) for the element for which turnover is calculated. In other words, in the proceeds from the sale of products it is necessary to compare with the element in question only that part of it in the formation of which this element was directly involved.

So, it is necessary to compare with reserves of raw materials, materials, fuel material costs enterprises (without depreciation), since material costs were formed by transferring the cost of these inventories to finished products. Therefore, if a certain enterprise has an average annual stock of raw materials, fuel, materials in the warehouse, etc. amounted to 500 thousand rubles, and material costs for manufactured products (without depreciation) - 3 million rubles, this really means that working capital in materials turned over six times in a year (3 million / 500 thousand), the duration of one turnover is equal to 60 days, or, what is the same, each unit of stock in the warehouse lay on average for 60 days.

It is necessary to compare the cost of production with work in progress; with stocks of finished products - shipment of products at cost (since finished products in the warehouse are accounted for at cost); with accounts receivable - the volume of products sold.

Although the turnover of accounts payable is not related to the turnover of working capital, the approach to determining the rate of turnover of accounts payable is the same. And this indicator itself is of great practical importance.

Let's go back to the previous one again conventional example: its further analysis will allow us to better understand the meaning of turnover indicators.

Let us assume that at the beginning of his activity, Someone advanced all the money necessary to produce the planned products.

Because the total amount costs amounted to 450 thousand rubles, then, therefore, this amount was advanced. IN starting moment for 100 thousand rubles. materials were purchased from it, and the rest of the money was in the current account. In this case, what are the indicators of turnover of working capital and the duration of one turnover?

The initial value of working capital is 450 thousand rubles. (in the material stock and on the current account), the final one is also 450 thousand rubles. (in the stock of finished products), therefore, the average value of working capital is also 450 thousand rubles. If we determine the turnover ratio of working capital through the cost of manufactured products, then it will be equal to 1, and the duration of one turnover will be 90 days, which fully corresponds to our ideas about the nature of the process.

If we determine the turnover ratio through revenue, we will be faced with the fact that the turnover ratio will no longer be equal to 1:

and the duration of the turnover will be less than 90 days. Moreover, if we manage to sell products at a higher price, for example for 675 thousand rubles, then the turnover ratio will be equal to 1.5, and if for 900 thousand rubles, then 2.

This happened because profit intervened in the calculation. Profit is created in the production process and is not transferred by working capital. The amount of profit received per turnover does not affect the rate of turnover, so including it in the calculation distorts the results obtained.

Let's return to our example. Let us now assume that the necessary funds were invested in the event in question in two steps: 200 thousand rubles. at the beginning and 250 thousand rubles. in the middle of the period.

Let's determine the average amount of working capital for the period: in the first half of the period they were equal to 200 thousand rubles, in the second - 450 thousand, and on average 325 thousand rubles. Now let’s find the turnover ratio and the duration of one revolution:

At first glance, another unexpected result, since, let me remind you, we had only one production cycle and it lasted 90 days.

Let's look into the current situation. It can be presented as follows: the first 200 thousand rubles. turned around in 90 days, the second 250 thousand rubles. - within 45 days. And on average we get:

In other words, 65 days. The duration of one turnover is interpreted quite simply: part of the money was in circulation for 90 days, the other part for 45 days, and on average it was 65 days.

The 1.38 revolutions per production cycle is more difficult to interpret. In reality, both components of capital made one turnover, but they made it in different time and with at different speeds: 200 thousand rubles. turned around once in 90 days, and 250 thousand rubles. also once, but within 45 days. It’s easy to calculate that 200 thousand rubles. the turnover ratio is 1, and for 250 thousand rubles. - 2. But this does not mean at all that 250 thousand rubles. actually made two revolutions.

Since the working capital of an enterprise always consists of parts circulating at different times and at different speeds, the turnover ratio should be understood as the weighted average turnover rate of the various components of the advanced capital, and the duration of one turnover - as the weighted average of the durations of their turnovers.

Let us now turn to the partial turnover ratios, which characterize the turnover of individual components of working capital. First, let's calculate the inventory turnover ratio. As has already been determined, the average stock of materials is 50 thousand rubles, material costs for the period are 100 thousand rubles, hence the inventory turnover ratio is 2, and the duration of one turnover is 45 days. We will get exactly the same result if we try to calculate the indicators of finished goods inventory turnover: they will also be 2 and 45 days. But we are sure that there was only one revolution. More surprises!

In order to explain them, it is important to understand that, using the above formulas, we calculate the turnover of capital tied up in reserve rather than advanced capital. In the example under consideration, the average capital tied up in reserve is indeed 2 times less than the advanced capital (at the beginning 100, and at the end 0, on average 50), therefore the speed of its turnover is 2 times higher, and the duration of one revolution is 2 times less. But at the same time, the duration of the turnover of average associated capital is interpreted differently from that of advanced capital.

The duration of the turnover of capital advanced to the reserve can be understood as the time during which this stock will be in stock, those. will be completely used up. In this example, it is 90 days, and the turnover ratio of the advanced capital is 1 (100 / 100).

The duration of the turnover of capital tied up in a stock can be understood as the time during which on average, each unit of inventory will be in the warehouse. Since part of the stock will be used up on the first day, and part will lie until the very last, 90th day, then in general it will turn out that each unit will remain in the warehouse for 45 days on average.

These circumstances must be taken into account when in calculations it is necessary to switch from the frequency of capital advances to the period of its commitment, and vice versa. For example, move from the delivery interval to the warehouse to the average storage period. With a uniform increase (or decrease) of the stock, this problem is solved by dividing or multiplying by 2; in other cases it is more complicated. We will look at one of these options below.

The question may arise why these problems did not appear when we considered the turnover of all working capital, but began when we moved on to private turnover indicators. In fact, they occur there too, but are less acute.

Let's return again to the original version, when the entrepreneur immediately advances 450 thousand rubles. In this case, we get a turnover ratio of 1, and the duration of the turnover is 90 days, i.e. indicators of turnover of advanced capital. Why? In fact, we obtained indicators of average tied capital. It’s just that in this case the advanced one coincided with the average one: being advanced, it gradually, through the supply of material and processing, passed into the form of finished products, but at the same time it remained equal to 450 thousand rubles all the time.

This, in fact, is the main difference between the study of the turnover of working capital as a whole and the turnover of its individual components: working capital changes its shape in the process of circulation, but at the same time, as a rule, its size changes insignificantly, so the average associated working capital is always approximately equal advanced (an exception to this rule are industries with pronounced seasonality, but there turnover indicators should be calculated differently). The size of the individual components regularly changes over a wide range, and therefore here the advanced funds are almost never equal to the average associated ones.

To complete the presentation, it remains to find out what turnover indicators in the example under consideration will be given by the usual scheme based on the use of cost.

Let's consider the same example. Let 450 thousand rubles be advanced at once. For 100 thousand rubles. The material was immediately purchased, and the rest are on the current account, spent on processing as necessary. Processing occurs instantly, after which the finished products are sent to the warehouse, where they remain until the end of the quarter. Then we have:

Thus, general period turnover of working capital - 90 days. - breaks down as follows: 10 days. - inventory turnover; 35 days - cash turnover; 45 days - finished product inventory turnover.

These results should be understood as follows. Out of 90 days quarter 10 days the enterprise worked to “justify” the costs of the material (the cost of products produced in 10 days is exactly equal to the cost of the material), for the next 35 days. “worked off” the advanced funds. Finally, the last 45 days. "worked for a warehouse."

If you look a little more closely at the mechanism of action of this formula, it is easy to see that it divides the total duration of turnover of working capital between the turnover of individual components in proportion to the size of each part: if, as in this example, the average size of inventories is 1/9 of average size working capital, then the duration of their turnover is equal to 1/9 of the duration of turnover of all working capital. In this case, all revolutions are performed strictly sequentially, since if we assume that the revolutions of some parts occur in parallel, then the sum of the partial durations will not give the total. It is clear that in reality the rule is just the opposite situation: all components of working capital turn around in parallel, so the above interpretation is a serious simplification.

In conclusion, we note that private turnover indicators can also be calculated for individual divisions of the enterprise. It is only important that the above rule is followed: the indicator in the formation of which they directly participated is compared with the working capital of the division.

Let us pay attention to the fact that the sum of the turnover time according to particular indicators, unfortunately, does not coincide with the turnover time of all working capital.

Turnover ratio– a parameter by calculating which one can estimate the rate of turnover (use) of specific liabilities or assets of the company. As a rule, turnover ratios act as parameters business activity organizations.

Turnover ratios– several parameters that characterize the level of business activity in the short and long term. These include a number of ratios - working capital and asset turnover, accounts receivable and payable, as well as inventories. The same category includes coefficients equity and cash.

The essence of the turnover ratio

The calculation of business activity indicators is carried out using a number of qualitative and quantitative parameters - turnover ratios. The main criteria for these parameters include:

Business reputation of the company;
- presence of regular buyers and suppliers;
- width of the sales market (external and internal);
- competitiveness of the enterprise and so on.

For qualitative assessment the obtained criteria must be compared with similar parameters from competitors. At the same time, information for comparison should not be taken from financial statements(as it usually happens), but from marketing research.

The criteria mentioned above are reflected in relative and absolute parameters. The latter include the volume of assets used in the company’s work, the volume of sales of finished goods, and the volume of its own profit (capital). Quantitative parameters are compared in relation to different periods(this could be a quarter or a year).

The optimal ratio should look like this:

Growth rate of net income > Growth rate of profit from the sale of goods > Growth rate of net assets > 100%.

3. Turnover ratio of current (working) assets displays how quickly it is accessed and used. Using this coefficient you can determine how much turnover was made current assets for a certain period (usually a year) and how much profit they brought.

The effective functioning of any enterprise is impossible without competent and rational use working capital. Depending on the type of activity, stage of the life cycle, or even time of year, the value working capital may vary from organization to organization. However, it is the availability and proper use of these resources that determines how successful and long-lasting the activities of any business entity will be.

In order to assess the correct use of a company's working capital, there are many coefficients that analyze the speed of circulation, adequacy, liquidity and many others, no less significant characteristics. One of the most important indicators necessary to determine the financial condition of an organization is the working capital turnover ratio.

Turnover ratio (K rev), or turnover rate, shows how many times during the period of time under study the enterprise is able to completely turn over its own working capital. Thus, given value characterizes the efficiency of the company. The larger the value obtained, the more successfully the company uses its available resources.

Formula and calculation

The turnover ratio shows the number of revolutions made by working capital during the period of time under consideration. It is calculated as:

Where:

• Q p is the volume of products sold at the organization’s wholesale prices excluding VAT;
• F ob.av. – the average balance of working capital found during the period under study.

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

Thus, the general scheme “money-product-money” implies the cyclical nature of the company’s activities. The turnover ratio in this case shows how many similar turnovers the organization’s funds can make in a certain period of time (most often in 1 year). Naturally, for the effective and fruitful operation of an enterprise it is necessary that this value was as large as possible.

Necessary indicators for calculation

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

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

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

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

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

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

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

Another important indicator used when analyzing the financial condition of an organization is utilization rate of funds in circulation K load. This indicator determines the amount of working capital required to receive 1 ruble of revenue from product sales. In other words, the coefficient shows how many percent of the organization’s working capital falls on one unit of the final result. Thus, in another way the load factor can be called the capital intensity of working capital.

It is calculated using the following formula:

As can be seen from the methodology for calculating this indicator, its value is the inverse of the value of the turnover ratio. And this means that how less value load indicator, the higher the efficiency of the organization.

Another generalizing factor in the efficiency of using working capital is the value profitability (R ob.av.). This ratio is characterized by the amount of profit received for each ruble of working capital and shows the financial efficiency of the organization. The formula for calculating it is similar to the values ​​​​used to find the turnover ratio. However, in this case, instead of revenue from sales of products, the enterprise’s profit before tax is used in the numerator:

Where π is profit before tax.

Also, as in the case of the turnover ratio, than more value return on capital, the more financially stable the enterprise’s activities.

Turnover ratio analysis

Before moving on to analyzing the turnover ratio itself and looking for ways to increase the efficiency of an organization, we will define what is generally meant by the concept of “working capital of a company.”

Working capital of an enterprise is understood as the amount of assets that have a lifespan beneficial use less than one year. Such assets may include:

• stocks;
• unfinished production;
• finished products;
• cash;
• short-term financial investments;
• accounts receivable.

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

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

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

The amount of work in progress is reduced by rationalizing the production cycle and reducing the cost of inventory. And reducing the amount of finished products in stock can be achieved with the help of more advanced logistics and aggressive marketing policies of the organization.

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

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

Why might it be declining?

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

There may also be several internal reasons for a decrease in turnover rate. Among them it is worth highlighting:

• errors in working capital management;
• logistics and marketing errors;
• growth of the company's debt;
• use of outdated production technologies;
• change in the scale of activity.

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

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

Let's consider a certain organization "Alpha". Having analyzed the company’s activities for 2013, we learned that revenue from product sales for this enterprise amounted to 100 thousand rubles.

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

Since the resulting coefficient is 2.5, we can note that in 2013 the Alpha company had the duration of one turnover cycle:

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

WORKING CAPITAL

The production process requires not only buildings and equipment, product licenses and other types of fixed assets and intangible assets. The production process also requires raw materials, spare parts and semi-finished products, as well as other resources that are included in working capital. Working capital, along with non-current assets, is the most important production factor

Working capital- these are funds invested in raw materials, fuel, work in progress, finished but not yet sold products, as well as funds necessary to service the circulation process

A characteristic feature of working capital is the high speed of their turnover. The functional role of working capital in the production process is fundamentally different from fixed capital. Working capital ensures the continuity of the production process.

The material content of working capital is objects of labor, as well as means of labor with a service life of no more than 12 months.

Material elements of working capital (labor items) are consumed in each production cycle. They completely lose their natural form, therefore they are fully included in the cost of manufactured products (work performed, services rendered).

Composition, structure and classification of working capital

Under composition of working capital it is necessary to understand the elements included in their composition (Fig. 1):

Industrial inventories (raw materials and basic materials, purchased semi-finished products, auxiliary materials, fuel, spare parts...);

Unfinished production;

Future expenses;

Finished products in warehouses;

Products shipped;

Accounts receivable;

Cash in the company's cash register and bank accounts.

Raw materials is a product of the extractive industries.

Materials represent products that have already undergone certain processing. Materials are divided into basic and auxiliary.

Basic– these are materials that are directly included in the composition of the manufactured product (metal, fabric).

Auxiliary – these are the materials necessary to ensure the normal production process. They themselves are not included in the finished product (lubricants, reagents).

Semi-finished products– products completed by processing at one processing stage and transferred for processing to another processing stage. Semi-finished products can be own and purchased. If semi-finished products are not produced at

own enterprise, but are purchased from another enterprise, they are classified as purchased and are included in production inventories.

Figure 1 – Elemental composition of working capital

Unfinished production - These are products (works) that have not passed all the stages (phases, processing stages) provided for by the technological process, as well as incomplete products that have not passed testing and technical acceptance.

Future expenses- these are expenses of a given period that are subject to repayment at the expense of the cost of subsequent periods.

Finished products represents fully finished finished products or semi-finished products received at the enterprise warehouse.

Accounts receivable– money that individuals or legal entities owe for the supply of goods, services or raw materials.

Cash- These are funds located in the cash register of the enterprise, in bank accounts and in settlements.

Based on the elemental composition of working capital, they can be calculated structure, which represents the share of the cost of individual elements of working capital in their total cost.

According to sources of education, working capital is divided into own and borrowed (borrowed). Own working capital is formed at the expense of the enterprise's own capital (authorized capital, reserve capital, accumulated profit, etc.). Borrowed working capital includes bank loans, as well as accounts payable. They are provided to the company for temporary use. One part is paid (credits and borrowings), the other is free (accounts payable).

In different countries, different ratios (standards) are used between equity and debt capital. In Russia, the ratio is 50/50, in the USA – 60/40, and in Japan – 30/70.

According to the degree of controllability, working capital is divided into standardized and non-standardized. Standardized assets include those working capital that ensures continuity of production and contributes to the efficient use of resources. These are inventories, deferred expenses, work in progress, finished goods in warehouse. Cash, shipped products, and accounts receivable are classified as non-standardized working capital. The absence of standards does not mean that the amounts of these funds can be changed arbitrarily. The current procedure for settlements between enterprises provides for a system of sanctions against the growth of non-payments.

Standardized working capital is planned by the enterprise, while non-standardized working capital is not an object of planning.

Circulation of working capital. Turnover indicators

Working capital is in constant motion. The circulation of capital covers three stages: procurement, production and sales.

Any business starts with a certain amount of cash, which is invested in a certain amount of resources for production.

At the production stage, resources are embodied in goods, works or services. The result of this stage is the transition of working capital from the production form to the commodity form.

After the sale of the produced product, working capital from the commodity form again passes into money. The sizes of the initial amount of money and proceeds from the sale of products (works, services) do not coincide in size. The resulting financial result of the business (profit or loss) explains the reasons for the discrepancy (Fig. 2).

The time required for a complete turnover of working capital is called turnover time (period) working capital.

The time (duration) of turnover of working capital is one of the indicators turnover. Another indicator of turnover is the turnover ratio.

Turnover ratio- this is the number of revolutions that working capital makes over a certain period; it is calculated using the formula:

Where R– volume of products sold for the period under review;

OS– the average amount of working capital for the same period.

The time (duration) of turnover is usually called turnover in days. This indicator is determined by the formula:

Where D– the number of days in a given period (360, 90, 30);

TO about– turnover ratio:

After substituting the corresponding values ​​into the formula, you can obtain a detailed expression for the turnover indicator:

At each stage of the circulation of working capital, it is possible to determine the private turnover of each element of working capital:

Partial turnover indicators can be calculated based on specific turnover. A special turnover for material inventories is their consumption for production, for work in progress - the receipt of goods at the warehouse, for finished products - shipment, for shipped products - their sale.

Average for the period, the amounts of working capital used in calculating turnover indicators are determined using the average chronological formula. The average annual amount (average annual working capital balances) is found as the arithmetic average of four quarterly amounts:

The quarterly average amount is calculated as the average of three monthly averages:

The expression used to calculate the average monthly amount is:

The amount of working capital at the disposal of the enterprise must be large enough so that the circulation process is not interrupted. At the same time, the presence of excess working capital negatively affects the results of its activities.

Figure 2 – stages of circulation of working capital

Methods for determining the need for working capital

Effective use of working capital largely depends on the correct determination of the need for working capital. An underestimation of the amount of working capital entails instability of the financial situation, interruptions in the production process and a decrease in production volumes and profits. Overestimating the size of working capital reduces the enterprise’s ability to make capital expenditures to expand production (Fig. 3).

The need for working capital depends on many factors: production and sales volumes; the nature of the enterprise's activities; duration of the production cycle; types and structure of consumed raw materials; growth rates of production volumes, etc.

Figure 3 – Optimal amount of working capital

An accurate calculation of the enterprise's need for working capital should be based on the time spent by working capital in the sphere of production and the sphere of circulation.

The residence time of working capital in the production sector covers the period during which working capital remains in the state of inventory and in the form of work in progress.

The period of stay of working capital in the sphere of circulation covers the period of their presence in the form of balances of unsold products, in the form of shipped but not yet paid products, accounts receivable, in the form of cash in the cash register of the enterprise, in bank accounts.

The higher the turnover rate (the total time spent in the sphere of production and circulation), the lower the need for working capital.

The company is interested in reducing the size of its working capital. But this reduction must have reasonable limits, since working capital must ensure normal operation.

When determining the optimal need for working capital, the amount of money that will be advanced to create inventories, backlogs of work in progress and the accumulation of finished products in the warehouse is calculated. For this, three methods are used: analytical, coefficient and direct counting method.

Essence analytical, or the experimental-statistical method is that when analyzing existing inventory items, their actual inventories are adjusted and excess and unnecessary values ​​are eliminated.

At coefficient method, amendments are made to the standard of the previous period for the planned change in production volumes and for the acceleration of turnover.

Analytical and coefficient methods can be used in those enterprises that have been operating for more than a year, have formed a production program and organized the production process, have statistical data for previous years and do not have a sufficient number of qualified specialists for more detailed work in the field of working capital planning.

Method direct account provides for the calculation of inventories for each element of working capital. This method is used when organizing a new enterprise and periodically clarifying the working capital needs of an existing enterprise.

General standards of own working capital are determined in the amount of their minimum requirement for the formation of reserves of raw materials, supplies, fuel, work in progress, deferred expenses, finished products.

The general working capital standard consists of the sum of private standards:

Where N P h – standard of production reserves;

N np– work-in-progress standard;

N gp– finished product standard;

N br – standard for future periods.

The production inventory standard depends on the average daily consumption of raw materials, fuel materials and the stock standard in days:

Where R With – average daily consumption of a given type of raw material or materials ( in rubles);

T days – stock norm in days

The average stock norm in days is calculated in general as a weighted average of the working capital stock norms for individual types.

The stock norm in days for a particular type is made up of the following components:

Where T tr – transport stock;

T tech – current warehouse stock;

T page – insurance (warranty stock);

T season – seasonal stock.

Transport stock is established by the length of time it takes the cargo to travel from the supplier to the consumer, taking into account the time of document flow.

If there are several suppliers, then the transport stock is determined as a weighted average value, taking into account the duration of the run and the size of the supply:

Delivery volume, t Cargo travel time, days.

1st supplier 20 15

2nd supplier 30 14

3rd supplier 10 12

T tr = (20 ×15 + 30 × 14 + 10 ×12) \ (20 + 30 + 10) = 14 days,

Figure 4 – Current warehouse stock

Current warehouse stock material assets are called a stock that meets production needs for the period between the two next arrivals of their suppliers (Fig. 4).

The composition of working capital includes the average current stock, taken in the amount of 50% of the duration of the interval between two adjacent deliveries:

Where AND– duration in days of the interval between deliveries.

The average interval between deliveries can be calculated using the formula:

Where P – number of deliveries for the period

Warranty (insurance) stock material assets is a reserve intended to meet the needs of production in case of a delay in the receipt of material assets.

The amount of safety stock is usually set within 50% of the current stock. This limit increases if the enterprise is located far from suppliers, the materials consumed are unique, and the manufactured products require many components or components from different suppliers.

Seasonal stock is calculated at enterprises with seasonal supplies of raw materials.

Amount of working capital for work in progress is determined taking into account the duration of the production cycle and the value of the cost increase coefficient:

Where IN– volume of average daily production at production cost;

T ts – duration of the production cycle;

TO ne – coefficient of increase in costs in work in progress

Production cycle refers to a number of production processes performed in the manufacture of products.

Production cycle time consists of the time spent directly on operations for processing raw materials, materials, workpieces, and the time required for breaks between operations from the start of the first operation to the delivery of finished products to the warehouse.

Cost increase factor characterizes the degree of product readiness and is determined by the ratio of the cost of work in progress to the cost of finished products.

The increase in costs can be uniform and uneven (slow and accelerated).

At uniform increase in costs the cost increase coefficient is found using the formula:

Where WITH n– the cost of raw materials and materials entering the production process;

WITH To– cost of finished products.

At uneven increase in costs Cost growth factors are first determined at several points in the production process:

Where TO i– coefficient of increase in costs at the i-th point;

WITH i– the cost of work in progress at the i-th point;

WITH To– cost of the finished product.

The overall cost increase factor for the process is calculated as the average value:

Where TO nz– general cost increase coefficient for the process;

i– number of points for calculating partial coefficients.

The amount of working capital invested in finished product inventories in the warehouse depends on the average daily output of products and the duration of storage of products in the warehouse:

Where IN– average daily output at production cost;

T xp– the average duration of storage of finished products in the warehouse.

The duration of storage of products in the warehouse, in turn, is calculated as the sum of the time for the formation of a batch of products for shipment and the preparation of documents for this batch:

Where T FP– time required to form a batch for shipment of finished products to the consumer, days;

T od– time required to prepare documents for sending cargo to the consumer, days.

Calculated in one way or another, the amount of working capital required for normal operation increases the efficiency of using this resource.

The duration of one revolution or turnover of working capital.

The duration of one turnover consists of the time spent by working capital in the sphere of production and in the sphere of circulation, starting from the moment of acquisition of inventories and ending with the receipt of proceeds from the sale of products.

The shorter the circulation period, the less working capital the company requires, and therefore, reducing the duration of one turnover leads to increased efficiency in the use of working capital and an increase in their return.

There are the following formulas by which working capital turnover is determined: (methods):

1. OBok = Sok (average working capital): VR (sales revenue) / D (time period)

2. OBok = D/Kob (turnover ratio)

3. OBok = D*Kz (load factor)

Turnover rate (number of turns in a certain period)

The direct working capital turnover ratio reflects the number of turnovers made per year.

Kob = BP/Sob (average value of working capital)

The turnover ratio shows the amount of sales commercial products per one ruble of working capital

An increase in the coefficient means:

1. Increase in speed

2. Increase in production output for each invested ruble of working capital

3. The same volume of production requires less working capital.

Load factor shows the amount of working capital spent on each ruble of sold (commodity products), shows the availability of working capital.

Kz = Sob/RP(BP)

Result: Comparing these indicators and coefficients over time allows us to identify trends in how efficiently and effectively working capital is used.

Along with general indicators turnover ratios are calculated as private ones, which allow for an in-depth analysis of the use of working capital

Inventory = PO (production costs)/ Z(average inventory)

Work in progress = Goods in stock/ NP(average annual volume of work in progress)

ABOUT finished products = RP (volume of products sold (shipped))/ GP(average annual value of finished products)

OB in calculations = BP/ DZ(average accounts receivable)

The effect of accelerating turnover is expressed as follows:

1. The need for working capital is reduced

2. Resources are released, which are used either for production needs or for accumulation in current accounts

3. Solvency improves and financial condition enterprises

The less working capital is used in production, the better.

There are two types of release of working capital as a result of accelerating their turnover:

1. Absolute release - direct reduction in the need for working capital to achieve the planned production volume

2. Relative release means that with the planned need for working capital, the production plan is exceeded (ensures)