Coefficient of fixing working capital average balance. Coefficient of fixing working capital

The net weight of the product is 96 kg. The consumption rate of steel in its production is 108 kg. Steel utilization ratio = 96/108 = 0.89.

Conclusion: more than 10% of the raw material goes into chips, which, perhaps, corresponds to the average industry indicators, but cannot be the basis for the complacency of the department of the chief technologist. Reduction of losses during processing - effective method reducing the cost of production, and, consequently, strengthening the position of the company in the competitive struggle.

The financial position of the enterprise is directly dependent on the efficiency of use working capital.

It is believed that the rational use of working capital involves compliance with the following rules:

1. It is necessary to ensure the optimal ratio between the volume of working capital and the production need for them.

2. It is necessary to use inventory items economically and optimize their costs.

3. It is necessary to optimize the time of working capital in inventories and their volume. Similar requirements apply to other elements revolving funds.

Freezing funds as part of, for example, working capital will inevitably lead to an increase in the cost of production, an increase in prime cost, loss of the company's competitiveness, etc. therefore, the company's management should pay maximum attention to organizing their most efficient movement and use.

INDICATORS OF THE USE OF WORKING ASSETS:

K about. = Products sold / average working capital balance

The average annual balance of working capital is calculated as the chronological average of balances by months

Average duration \u003d Duration of the time period / To turnover

or Average duration \u003d (Duration of the time period. Average balance of working capital) / volume of sales.

To calculate the turnover of working capital, a year is taken as 360 days, a quarter - 90 days, a month - 30 days.

Sold products = 9 million rubles. The average annual amount of working capital = 1 million rubles. Turnover ratio = 9/1 = 9. Average duration of one turnover = 360/9 = 40 days.

Average daily turnover \u003d Volume of sales / duration of the time period

To fixing \u003d 1 / To turnover.

The coefficient of fixing working capital shows the average balance of working capital attributable to 1 ruble of sales proceeds.

The shorter the duration of the turnover (the more circuits make working capital for a given volume of sales), the, with other equal conditions less working capital is required, the more efficient their use. The acceleration of turnover leads to the release of working capital (reducing the need for them).

Types of release of working capital:

1. Absolute release - a direct reduction in the need for working capital.

2. Relative release - a change in the volume of working capital in combination with a change in the volume of sales.

The volume of the relative release of working capital = the actual need for working capital in the reporting period - the need for working capital, calculated based on the volume of sales of the reporting period and their turnover in the base period.

Separate calculation of the indicators under consideration at the stage of predictive analysis makes it possible to identify their discrepancy in a timely manner and develop measures to eliminate it. At the same time, the compliance of these measures should be considered as one of the key characteristics of the balance of indicators financial plan.

The management of the organization can have a targeted impact on solvency based on the chosen policy for managing net current assets. The value of this indicator for the organization is associated not so much with the characteristics of the ratio of current assets and liabilities as a certain guarantee of liquidity in the event that the former exceeds the latter, but with the identification of the nature and causes of its changes and the direct impact that they have on the solvency of the organization.

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

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

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

2.2 Evaluation of the use of the working capital of the enterprise

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

1. Turnover ratio

Turnover ratio (in revolutions);

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

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

2. Duration of one revolution

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

T- reporting period (in days).

3. Coefficient of fixing working capital

The coefficient of fixing working capital shows the amount of working capital per 1 ruble of sold products. When calculating turnover ratios, trade organizations use the indicator of sales of goods at selling prices instead of sales proceeds.

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

Turnover slowdown requires additional funds to be raised to continue economic activity enterprises.

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

Tab. 2

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

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

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

2.3 Working capital management

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

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

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

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

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

The analysis of cash flow by type of activity is carried out according to the data of form No. 4 “Cash flow statement” of accounting (turnovers on synthetic accounts) by two methods - direct and indirect.

The disadvantage of the direct method is that it does not reveal the relationship between the obtained financial result and the change in cash on the company's accounts.

For example: the company has a profit and does not have cash in the accounts, and vice versa: a loss and the presence of cash.

To identify the causes of the discrepancies indicated in the example, an analysis of funds is carried out by an indirect method, the essence of which is the conversion of the amount of profit into the amount of cash.

Certain types of expenses and incomes reduce (increase) the amount of profit of the enterprise, without affecting the amount of cash. When analyzed indirectly, these amounts adjust earnings to ensure that non-cash expense items do not affect net income.

It is clear that there is no impact on the value of funds of these write-off operations from the balance sheet of the residual value of the property, since the outflow of funds associated with it occurred earlier - at the time of acquisition. Therefore, the amount of the loss equal to the underdepreciated cost must be added to the net income.

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

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

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

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

1. Development of the direction of profitability assets enterprises And grade efficiency proposed measures

   Abstract >> Finance

   ... assets enterprises And grade efficiency ... funding acquisition and maintenance assets. The lack of certain types assets ... negotiable assets, reveal the turnover rate negotiable assets And efficiency use non-current assets ...

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

   Thesis >> Financial sciences

   And building up production capacity enterprises, as well as financing current economic activity. From... negotiable funds to the result of the second section asset balance sheet. One of the main indicators estimates efficiency use ...

3. Grade efficiency use organization resources

   Coursework >> Financial Sciences

   ... "Finance enterprises" on the topic: " Grade efficiency use resources of the organization "... a general grade: assets enterprises and their sources funding; magnitude ... acceleration of turnover negotiable funds for enterprise expedient: ...

4. negotiable facilities enterprises. Grade efficiency use negotiable funds

   Coursework >> Finance

   Sources funding negotiable funds are also commercial loans of other enterprises and organizations ... investments, other negotiable. Analysis assets enterprises carried out for the purpose estimates efficiency them use, identifying on-farm ...

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

Composition and classification of working capital

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

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

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

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

Working capital assets include:

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

circulation funds

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

The circulation funds include:

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

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

Working capital is a more mobile part.

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

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

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

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

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

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

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

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

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

The following indicators of turnover of working capital are distinguished:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Most often, turnover is calculated per year.

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

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

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

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

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

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

In addition, to speed up the turnover importance has: rational organization of logistics and marketing of finished products, compliance with the regime of savings in the costs of production and sale of products, the use of forms of non-cash payments for products that contribute to the acceleration of payments, etc.

Directly in the analysis of the current activities of the organization, it is possible to identify the following reserves for accelerating the turnover of working capital, which consist in eliminating:

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

Total reserves: 795 thousand rubles.

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

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

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

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

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

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

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

Works and services (minus and ) divided by average value under the item "Reserves" of the second section of the asset balance.

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

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

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

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

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

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

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

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

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

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

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

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

Indicators of availability and use of working capital

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

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

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

Working capital turnover ratio

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

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

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

Average turnaround time

Determined from the turnover ratio and the analyzed period of time

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

Coefficient of fixing working capital

The value is inversely proportional to the turnover ratio:

Go to pinning= 1 / To turnover

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

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

Need for working capital

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

Security of production with working capital

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

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

A task

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

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

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

A task

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

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

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

A task

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

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

Solution

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

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

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

Using these two formulas, we derive the formula

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

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

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

A task

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

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

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

Index of the general change in the coefficient of fixation

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

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

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

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

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

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

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

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

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

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

OS change index from changes in the volume of products sold

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

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

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

The most important indicators of the efficiency of the use of working capital is the turnover ratio, the duration of the turnover of working capital and the utilization factor of working capital.

Working capital turnover ratio in characterizes the number of turnovers of working capital during a certain period.

(4.11)

where B is the proceeds from sales (volume of products sold), r.;

ObS - the average annual cost of working capital, r.

The average annual balance of working capital is calculated by the formula

where ObS 1 - the amount of working capital at the beginning of the period, p.

ObS n - the amount of working capital on the n-th date, p.

n is the number of considered dates.

The indicator, the reciprocal of the turnover ratio, is the coefficient of fixing working capital.

Fixing factor (To fixed) shows the amount of working capital attributable to one ruble of sold products.

(4.13)

Turnover duration - the period of time for which working capital makes one complete cycle.

The duration of the turnover is calculated by the formula:

(4.14)

where F is the duration of the calendar period, days;

K about - the turnover ratio for the period F.

The duration of the calendar period is taken rounded - 360 days in a year, 90 - in a quarter, 30 in a month.

With a reduction in the duration of the cycle, working capital is released from circulation, and vice versa - the enthusiasm for the duration of the turnover causes the need for additional funds.

Absolute Release calculated by the formula

where obs pl – planned value of working capital, r.;

ObS b - the base value of working capital, p.

Accelerating the turnover of working capital always leads to a relative release of working capital.

The relative release of working capital is calculated by the formulas:

where I v is the index of growth in the volume of sales in the planned year compared to the base year;

D b, D pl - respectively, the duration of the turnover in the base and planning years;

In pl - the volume of products sold in the planned year.

Solution of typical tasks

Example 4.1

The power of the tractor produced last year was 110 hp. with., and its weight is 3.56 tons. This year, the production of tractors with a capacity of 150 liters has begun. with., weight compared with the base model increased by 10%. Determine the relative metal content of the old and new tractor models.

Solution:

Horsepower is the main performance characteristic of a tractor. In accordance with this, we determine the relative metal consumption by formula (4.3) and for the old tractor model it will be:

About m = 3.56 t / 110 hp = 0.032 t/hp

The weight of the tractor after the increase will be:

3.56 + 3.56×10%/100% = 3.56×1.1 = 3.916 t

Then, the relative metal consumption of the new tractor model will be:

About m = 3.916 t / 150 hp = 0.026 t/hp

Thus, the relative metal consumption decreased.

Example 4.2

The net weight of the machine is 350 kg, the amount of actual waste during the processing of the workpiece is 92 kg. As a result of improving the technology of manufacturing machine parts, waste is planned to be reduced by 10%. Determine the metal utilization rate and the percentage of waste before and after the technology change.

Solution:

The metal utilization factor is determined by the formula (4.4)

According to the condition of this problem, we will calculate per unit of the machine, then:

K i.m. = 350 / (350+92) = 0.7919

Thus, the metal is used by 79.19%

The amount of waste before the improvement of technology is 92 kg, then the production of the machine takes 350 + 92 kg = 442 kg of metal.

= 20,81%

Waste after the improvement of technology will decrease by 10% and will amount to:

92 - 92 x 10% / 100% = 92 x (1 - 0.1) = 92 x 0.9 = 82.8 kg

After the technology is improved, 350 + 82.8 kg = 432.8 kg of metal will be used to produce the machine.

Then the level of waste will be:

= 19,13%

Thus, the level of waste has decreased.

Example 4.3

The following data are available for the machine-building plant. The volume of gross output in wholesale prices is 234,000 million rubles. Material costs for the production of gross output 140,000 million rubles.

Determine material consumption and material return.

Solution:

Substituting the initial data into formulas (4.1) and (4.2), we obtain:

M otd \u003d 234000 / 140000 \u003d 1.671 p.

M e \u003d 140,000 / 234,000 \u003d 0.598 p. for 1 ruble of products

Thus, there are 0.598 rubles of material costs per ruble of sold products.

Example 4.4.

The company manufactures 120 units of products per year. The cost of producing one product is 100 thousand rubles. per piece, of which 40% are the cost of basic materials. Determine the standard of working capital for basic materials. The time for materials to be in transit is 2 days, the time for acceptance, storage and preparation of materials for production is 1 day. The interval between deliveries is 10 days. The safety stock is 25% of the current stock.

Solution:

The standard of working capital in inventories for the i-th material is determined by the formula (4.5).

The annual need for the material is = 0.4 × 100 × 120 = 4800 thousand rubles.

The average daily requirement for a material is determined by dividing the cost estimate for the production period by the corresponding number of calendar days in the planning period.

The average daily demand will be

q i \u003d 4800 thousand rubles / 360 days \u003d 13.33 thousand rubles / day

The stock rate in days is made up of:

The time spent by materials on the way after their payment (transport backlog);

Time for acceptance, unloading, sorting, warehousing and preparation for production (preparatory stock);

Time in stock as current stock ( current stock); The holding time of a material in the form of current stock is defined as half of the weighted average interval between deliveries of the material.

The time spent in the warehouse in the form of safety stock (safety stock). The insurance stock depends on random factors, so it is difficult to calculate its size. The time spent by the material in the safety stock is set within the limits of up to 50% of the current stock rate.

Thus, the stock rate in days is equal to:

H m \u003d 2 + 1 + 10/2 + 0.25 × 10/2 \u003d 9.25 days

The standard of working capital for raw materials will be

Q m \u003d 13.33 × 9.25 \u003d 123.30 thousand rubles

Thus, the minimum required amount of working capital for the formation of inventories is 123.30 thousand rubles. R.

Example 4.5.

The output will amount to 8 million rubles. The average annual cost of fixed production assets is 3 million rubles. The specific consumption rate of the tool is 20 thousand rubles. and technological equipment 12 thousand rubles. for 1 million rubles product release. The consumption rate of materials for repair and maintenance needs is 25 thousand per 1 million rubles. cost of fixed production assets. Tool inventory is 90 days. The stock rate of equipment is 60 days. The norm of the stock of materials for repair and maintenance needs is 90 days. Determine the need of a large joint-stock company in working capital to create the necessary stocks of tools, equipment and materials for repair and maintenance needs.

Solution:

Tool standard == 40 thousand rubles.

Equipment standard = = 16 thousand rubles.

Standard for spare parts = = 18.75 thousand rubles.

Total total need \u003d 40 + 16 + 18.75 \u003d 66.5 thousand rubles.

Thus, the need of a large joint-stock company in working capital to create the necessary stocks of tools, equipment and materials for repair and maintenance needs is 66.5 thousand rubles.

Example 4.6.

The enterprise manufactures 120 units of products per year at a price of 120 thousand rubles. a piece. The cost of producing one product is 100 thousand rubles. per piece of which 40% is the cost of raw materials and materials. The duration of the production cycle is 15 days. Determine the standard of working capital for work in progress.

Solution:

The standard of working capital in work in progress is determined by the formula (4.6).

With a uniform write-off of costs, the cost increase factor is determined by the formula (4.7).

Since, the main materials transfer their cost to the cost of finished products at the beginning of the production cycle, therefore they are included in the cost in full. That's why

C lane \u003d 100 × 40% / 100% \u003d 40 thousand rubles.

Then the subsequent costs are determined by subtracting the initial costs from the total costs of producing a unit of output.

With the last \u003d 100 - 40 \u003d 60 thousand rubles.

Substituting the obtained data into the formula for the cost increase coefficient, we get:

= 0,7

The average daily costs are

C day \u003d 120 × 100 thousand rubles / 360 days \u003d 33.33 thousand rubles / day

Q WPI = 15 × 0.7 × 33.33 = 349.97 thousand rubles

Thus, the minimum required amount of working capital for the formation of work in progress is 349.97 thousand rubles.

Example 4.7.

Balance of deferred expenses at the beginning of the planned year 473 thousand rubles. In the planned year, new expenses are provided for, charged to the expense of future periods in the amount of 210 thousand rubles. From the expense account of future periods, 410 thousand rubles will be written off to the cost of production.

Solution:

The working capital ratio for deferred expenses is determined by the formula (4.8)

The working capital ratio will be:

Q rbp \u003d 473 + 210 - 410 \u003d 273 thousand rubles.

Thus, the minimum required amount of working capital for the formation of deferred expenses is 273 thousand rubles.

Example 4.8.

Determine the standard of working capital in stocks of finished products for the enterprise considered in the previous examples. The annual output of products amounted to 120 products at a production cost of 100 thousand rubles. The time of accumulation of products to the size of the shipped batch is 5 days. The time required for packaging and labeling products is 1 day, the time for transporting products to the destination station is 2 days.

Solution:

The inventory limit for finished goods depends on the following factors:

order of shipment and the time required for acceptance finished products from workshops;

the time required for completing, selecting products to the size of the shipped lot and in the assortment, respectively, according to orders, orders, contracts;

the time of accumulation of products to the size of the shipped batch, the full use of the container, wagon, platform;

the time required for the delivery of packaged products from the warehouse of the enterprise to the railway station, pier, etc.;

product loading time;

the waiting time for the submission of vehicles for loading and the sighting of documents; product storage time.

Hgp \u003d 5 + 1 + 2 \u003d 8 days.

From days = 120 pcs. ×100 thousand rubles / 360 days = 33.33 thousand rubles

Q gp \u003d 33.33 thousand rubles ×8 days = 266.64 thousand rubles

Thus, the minimum required amount of working capital for the formation of finished products is 266.64 thousand rubles.

Example 4.9.

The price of the product without VAT is 600 rubles, the VAT rate is 18%. Sales volume 5,000 pcs. per quarter, of which 50% is sold on credit for an average period of 30 days, the time for processing documents in settlements is 2 days.

Solution:

The amount of receivables is determined if the terms of payment by buyers of finished products are known. The calculation of accounts receivable is based on the calculation of the cost of products sold on credit and the maturity of loans according to formula (4.9).

The proceeds from the sale of all products with VAT is equal to

600 × (1 + 0.18) × 5,000 = 3,540 thousand rubles

Provided that only half of the products are sold with a deferred payment, the need for working capital in receivables will be:

Q dz \u003d 3,540 × 0.5 × (30 +2) / 90 \u003d 629.33 thousand rubles.

Thus, the minimum required amount of working capital for the formation of receivables is 629.33 thousand rubles.

Example 4.10.

In the reporting year, the enterprise sold products for 600 pieces of products at a price of 1 million rubles. with an amount of working capital of 70 million rubles. It is planned to increase sales by 20%, and reduce the average duration of one turnover of working capital by 10 days. Determine: the turnover ratio of working capital, the average time of one turnover in the reporting and planning period, the absolute and relative change in the company's need for working capital.

Solution:

Turnover ratio (turnover rate) shows the number of turnovers that make working capital during the period under consideration:

To ob.otch \u003d 600 pcs. ×1 million rubles/70 million rubles = 8.57 revolutions.

With an increase of 20%, the planned sales volume will be:

In pl \u003d 600 ´ 0.2 +600 \u003d 720 million rubles.

Turnover time or turnaround time in days - shows how many days working capital makes one complete turnover.

The average duration of one period in the reporting and planning period will be:

D otch \u003d 360 days / 8.57 \u003d 42 days.

D pl \u003d 42 days - 10 days \u003d 32 days.

Based on the planned values ​​of the turnover period and the volume of products sold, we determine the planned value of working capital according to the formula

, (4.18)

ObS pl \u003d 720´32 / 360 \u003d 64 million rubles.

The absolute and relative change in the enterprise's need for working capital is determined by the formulas (4.15) - (4.16):

ObSabs \u003d 70 - 64 \u003d +6 million rubles.

ObS rel = 70´1.2 – 64 = +20 million rubles

Thus, as a result of the increase in sales, there was a release of working capital.

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Let's give the formula for the coefficient of fixing working capital (or the inverse turnover ratio):

where E is average cost all working capital;

N - proceeds from the sale of products.

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

Table 13

Indicators of turnover of working capital of LLC "YuMA"

Indicator
Duration of one turn, days
Number of turns
Coefficient of fixing working capital

Of the above indicators, we will pay the most attention to the number of turnovers of working capital of the enterprise, since the fixing coefficient is the inverse of this indicator, and the duration of one turnover, due to the equality of the duration of the compared periods, is practically equal to the fixing coefficient multiplied by 91 days (the average duration of one quarter).

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

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

The analysis determines which financial sources normalized inventory values ​​are formed. Commodity stocks - due to two sources: own working capital and bank loans for turnover; normalized cash and other assets - at the expense of own funds.

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

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

Table 14

Analysis of the provision of UMA LLC with its own working capital in 1999

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

After checking the compliance of own working capital with the standard, their use is studied. In this case, it is necessary to use the indicator of the totality of own working capital in the economy and the indicator of own working capital in commodity stocks. The fact is that working capital to cover inventory is formed in the amount of at least 50% at the expense of own funds and up to 50% at the expense of loans. You need to check if this requirement is met. In order to determine the actual amount of own working capital in commodity stocks, the balances of normalized cash and other assets, which are formed entirely from own and equivalent funds, are subtracted from the amount of own working capital and equivalent funds. The share of own working capital and equivalent funds in inventory for the reporting period is determined as follows: the actual availability of the amount of own working capital and equivalent funds in goods is multiplied by 100 and divided by the amount of actual inventory of current storage at cost.

In the course of the analysis, the implementation of the financial plan is checked, deviations of actual financial indicators from the campaigns and expenses approved in the planned balance sheet in the reporting year are established, and the reasons for these deviations are identified.