Loading factor of working capital. Tsii (works, services). The load factor of funds in the turnover is determined. Profit of the company in the reporting period
Average balance working capital
ObS \u003d (ObSng + ObSkg) / 2
Кз \u003d 1: Коб \u003d ОС: Vрп
Characterizes the amount of working capital spent on 1 ruble products sold.
Turnover - duration of one revolution (days)
Tob \u003d Dk / Kob \u003d Dk × ObS / Vrp
Dк - the number of calendar days in the period, in days
Cob - turnover ratio
The shorter the duration of the turnover or the greater the number of revolutions made in a circle with the same volume of products sold, the less working capital is required.
At the same time, they distinguish between the absolute release of working capital and the relative release.
Absolute release means a direct decrease in the need for working capital by accelerating turnover.
The relative release of working capital reflects both the amount of working capital and the change in the volume of products sold. The calculation is made by comparing the practical balance of working capital with the conditional value of the need for working capital at the actual proceeds and the previously established rate of turnover.
Relative release working capital
deltaObs \u003d ObSfact - (Tob base × Vrp fact) / Dk
Vrp \u003d 120 million rubles / year
OBS \u003d 9 million rubles.
Delta Tob - decreased by 3 days
Tob1 \u003d 27 days
Tob2 \u003d 24 days
1) V \u003d const OBC2 \u003d 8 million rubles
Delta ObSabs \u003d 1 million rubles
2) OBS - const
Vrp \u003d 135 million rubles / year
To manufacture products worth 135 million rubles / year, while maintaining the same turnover, it is necessary to increase the turnover. Funds
OBS \u003d 10.125 million rubles
Delta ObSotn \u003d 1.25
The main ways to reduce working capital
The main ways to reduce inventories are reduced to their rational use; elimination of excess stocks of materials; improvement of rationing; improving the organization of supply, including by establishing clear contractual terms of supply and ensuring their implementation, optimal choice suppliers, well-organized transport. An important role belongs to the improvement of the organization of storage facilities.
Reducing the residence time of working capital in work in progress is achieved by improving the organization of production, improving the equipment and technology used, improving the use of fixed assets, primarily their active part, saving on all stages of the movement of working capital.
In the sphere of circulation, circulating assets do not participate in the creation of a new product, but only ensure its delivery to the consumer. Excessive diversion of funds into the sphere of circulation is a negative phenomenon. The most important prerequisites for reducing investment of working capital in the sphere of circulation are the rational organization of the sale of finished products, the use of progressive forms of payment, the timely execution of documentation and the acceleration of its movement, compliance with contractual and payment discipline.
Acceleration of the turnover of working capital allows you to free up significant amounts and thus increase the volume of production without additional financial resources, and use the released funds in accordance with the needs of the enterprise.
This is the reciprocal of the turnover rate.
K fixing \u003d OC / Q or K fixing \u003d 1 / K rev
This indicator is similar to the indicator of capital intensity, calculated in relation to working capital.
It reflects how much working capital falls on the ruble of products sold.
3. Duration of one turnover (D about) of working capital
D about \u003d T / K about,
where T is the number of days in the period (year - 360 days, quarter - 90 days).
K about - turnover ratio
Acceleration of turnover characterizes the increase in the efficiency of using working capital for the period
Substituting in this formula the value of the indicator K about, we get the formula for calculating duration of the circulation of working capital:
D about \u003d T * OS / Q
In the process of managing working capital, the duration of the turnover of individual elements of working assets is considered.
Duration of inventory turnover :
This indicator reflects the period of time required for the transformation of inventories into finished goods and their sale.
D mz \u003d (T * MZ avg) / C st
MZ cf - average value of inventories
С st - the cost of goods, services
The duration of the turnover of receivables:
D dz \u003d DZ / V,
DZ - accounts receivable
Duration of accounts payable turnover:
Reflects the average payment receipt time.
D kz \u003d KZ / V,
where B is the one-day sales proceeds.
KZ - accounts payable
Turnover duration money:
Reflects the time from the moment the enterprise pays for production resources until the receipt of proceeds from the sale of products, i.e. this is the period between payments for raw materials and labor force and settlement of accounts receivable.
D ds \u003d D mz + D dz - D kz.
If the duration of the cash turnover is 60 days, this means that the enterprise from the start of production within 60 days must find additional sources of financing.
Each company sets itself the task of reducing the duration of the turnover of funds in order to increase profits and reduce the need for financial resources.
The duration of the turnover of funds can be reduced by:
1.Reducing the duration of inventory turnover;
2. reducing the duration of the turnover of receivables;
3. an increase in the period of circulation of accounts payable.
One of the most important elements of the company's working capital is accounts receivable. The total amount of accounts receivable is determined by 2 factors:
1) the volume of sales on credit;
2) the average time interval between the shipment of goods and receipt of proceeds.
To monitor the status of accounts receivable and prevent bad debts, the company classifies debts by the dates of their occurrence, and also studies the indicator of accounts receivable turnover in days.
As a result of the acceleration of turnover (the intensity of the use of fixed assets), a certain amount of fixed assets is released
Under acceleration of turnover means a reduction in the duration of one turnover
The effect of accelerating the turnover of circulating assets is reflected in the rate of their release. Distinguish between absolute and relative release of working capital.
Relative release - the difference between the need for working capital of the enterprise, calculated based on the planned or actually achieved turnover in the reporting year and the amount with which the enterprise ensured the fulfillment or overfulfillment production program next year.
In the conditions of expanded reproduction on industrial enterprises most often there is a relative release of working capital in the planned year compared with the reporting year, with an increase in their absolute size.
The rate of turnover of circulating assets at enterprises of various industries is not the same. In enterprises with a long production cycle, funds turn around more slowly than in enterprises with a short production cycle.
The amount of funds additionally involved in circulation or released from circulation is established by the formula:
∆С with \u003d (D about ex. - D about base.) * V,
С с - the amount of funds additionally involved in the turnover, if С с<0 или сумма высвобожденных из оборота средств, если С с >0
D about ch. - duration of one turnover of working capital in the reporting period, days
D about bases - the duration of one turnover of working capital in the base period, days
В - average daily actual proceeds from product sales in the reporting period.
or by the formula
∆С с \u003d (t d. Ex. - t d. Base.) * In ex. / T
In ch. - revenue in the reporting period
T - number of days in the period
Working capital is the most important factor in the production process and occupy a fairly large share in the total value of the enterprise's property. Therefore, it is necessary to rationally approach the size of mobile assets and plan their values. For this, indicators of the efficiency of working capital are used (turnover ratio, load factor, profitability, etc.)
The essence of the indicator
This indicator is considered basic when planning the required amount of mobile funds, since it reflects the number of turnovers of funds for the period. In other words, the working capital turnover ratio characterizes the efficiency of working capital exploitation in order to generate income from core activities.Like any coefficient, the indicator is relative and reflects how many revolutions must be made by mobile means in order to provide a given rate of revenue.
How to calculate the working capital turnover ratio
In order to find this indicator, it is necessary to identify two quantities - income and working capital. Income in the planned calculation is reflected through the revenue indicator, and working capital through the average balance of mobile funds.
The turnover ratio is found through the ratio of income and working capital.
It is worth noting that the indicators should be comparable, that is, both the revenue and the cost of mobile funds should be taken for one period, for example, for a year.
General calculation formula
The turnover ratio is measured in the number of revolutions for the period. IN general view the formula for calculating the turnover ratio of working capital is presented in the form:
Tr \u003d TR / C about,
Tr (turnoverratio) - the ratio of the turnover of current assets, rev / period;
TR (total revenue) - revenue, rubles;
C about - the average value of mobile funds, rubles.
The above indicators, in turn, are found according to the following algorithm:
TR \u003d P * Q,
P (price) - unit price, rubles;
Q (quantity) - the number of products produced and sold, rub.
C about \u003d (C np + C knp) / 2,
С нп - the amount of working capital at the beginning of the period, rubles;
С кп - the amount of working capital at the end of the period, rubles.
Balance calculation formula
To find the turnover ratio, you must use the data of the statement of financial results and the balance sheet.
The data will allow you to find the indicator only for the year, other periods cannot be calculated from the balance sheet information.
Methodology (formula) for calculating the turnover ratio of current assets on the balance sheet:
Tr \u003d p. 2110 OFR / (p. 1200 np BB + p. 1200 kn BB) / 2,
Tr (turnoverratio) - turnover ratio of working capital, rev / year;
p. 2110 OFR - proceeds according to the data of the statement of financial results, rubles;
line 1200 np BB - working capital at the beginning of the year, rubles;
line 1200 kp BB - working capital at the end of the year, rubles.
Balance calculation example
Tr \u003d 1,800,000 / (400,000 + 500,000) / 2 \u003d 4 rpm.
Thus, the turnover ratio for 2014 is 4 turns, that is, mobile funds will turn around four times over the period.
Analysis and standard value of the turnover ratio of current assets
The indicator must be calculated constantly and reveal the dynamics over several years, because the data for one period does not give an overall picture of the situation.
There are no specific normative values coefficient, but each enterprise sets a target value for itself.
In general, the more revolutions mobile capital makes, the higher the income will be, but at the same time there will be a release of working capital from operation.
Video - indicators of the efficiency of using working capital:
The decrease in the ratio compared to the previous period reflects a negative trend - the organization will receive less of its revenue. To neutralize the negative aspects, it is rational to involve additional mobile funds in production.
What most often depends on
It is possible to single out a list of factors that most strongly affect the value of the coefficient under consideration.
Firstly, this indicator can significantly change the time spent on working capital in inventory, accounts receivable, unsold products in the warehouse and unfinished products.
Secondly, the turnover ratio depends on changes in the duration of technological and production cycles, personnel qualifications, conditions for the sale of services, goods and works and, in general, on the peculiarities of the organization of the company's activities.
What does the increase in the turnover ratio of working capital lead to
The growth of the indicator is often perceived as a positive factor - the faster mobile devices turn around, the more revenue the company will receive. Acceleration of turnover leads to an improvement in other indicators of effect and efficiency - profit, etc.But there are also negative aspects to this - too many stocks must be stored somewhere, and this entails additional costs. Due to the acceleration of turnover, productivity also increases, which leads to an increase in wages.
Therefore, before planning to increase the coefficient, it is necessary to adjust not only the potential additional income, but also the associated increasing costs.
Possible reasons for the decline
A slowdown in turnover may occur due to an increase in the duration of one turnover, the reasons for which are an unjustified increase in inventories, the appearance of customer debt, a failure in production process and, as a result, work-in-progress.
Also to possible reasons include a decrease in demand, due to which finished products stays in the warehouse longer, production volumes drop.
In general, the ratio of the turnover of working capital allows for a sufficiently high quality assessment. But for a more complete and objective assessment, it is advisable to calculate other indicators of efficiency, liquidity stability.
Video - the working capital of the enterprise and the effectiveness of their use in the form of a turnover ratio:
The current assets of the enterprise are placed in section 2 of the balance sheet asset and include inventories, accounts receivable, cash and value added tax on the acquired values. The analysis can be carried out in general for section 2 and for each type of working capital. During the analysis, it is necessary to establish whether the turnover has slowed down or accelerated. For this, the indicators of the use of working capital are calculated for several periods and compared, and the increase in the turnover ratio, the decrease in the duration of one turnover and the load factor of the working capital are positively evaluated.
OJSC Vazhskoe, like any other enterprise, is interested in accelerating the turnover of circulating assets, since the dependence on borrowed funds decreases, the need for circulating assets decreases, the material and technical base is effectively used.
The criterion for the effectiveness of the use of working capital is the relative minimization of advanced working capital, which ensures the highest possible results of production and financial activities. Based on this, the efficiency of using working capital is characterized by a system of indicators:
Average annual balance of working capital
Turnover ratio (turnover)
Duration of one turnover in days (turnover ratio in days)
Working capital utilization ratio
Table 7- Indicators of the use of working capital in JSC "Vazhskoe"
Analyzing the data in table-7, we can conclude that the duration of one turnover in days increased in 2007. compared to 2005 by 9.8, this indicates that the circulating assets make the circuit more slowly (circulating assets are slowly returning to the enterprise in the form of proceeds from the sale of services), which means that they are not effectively used.
The utilization factor in 2007 compared to 2005 increased by 0.029, i.e. increased costs of working capital to obtain 1 rub. sold products (works, services). With an increase in the working capital utilization factor, the financial position of the enterprise worsens, and the efficiency of the use of working capital decreases.
In general, for working capital, the turnover ratio decreased by 0.07. A decrease in the coefficient means a slowdown in the circulation of working capital of an economic entity.
The higher the value of the turnover ratio of current assets, the better the use of current assets. Its growth means saving socially necessary time and freeing funds from circulation. This allows the organization to get by with a smaller amount of working capital to ensure the release and sale of products or, with the same amount of working capital, increase the volume and improve the quality of products (5, p. 468).
Let us find the amount of released (or attracted) funds into circulation in 2007.
Thus, the slowdown in turnover by 9.8 days. requires additional funds for one turnover in the amount of 1101.57 thousand rubles. The turnover in the reporting year was 1.58 revolutions, therefore, additional funds will be required for the whole year: (1101.57 1.58) \u003d 1740.46 thousand rubles.
The turnover of working capital as a whole depends on the rate of turnover of individual elements of working capital, especially such as:
productive reserves
When analyzing the turnover of inventories on the balance sheet, instead of proceeds from form No. 2 “Profit and Loss Statement”, we take the cost price (line 020).
Average annual stock balance
Turnover ratio
S - the cost of goods, works, services sold
Change in number of revolutions: 2.27 - 1.88 \u003d 0.39
The inventory turnover ratio characterizes the number of inventory turnovers for the analyzed period. An increase in the ratio indicates a relative decrease in inventories and a decrease in production and other activities.
receivables
Average receivables
Turnover ratio
Change in number of revolutions \u003d 4.97 - 15.48 \u003d - 10.51
Accounts receivable turnover ratio characterizes the rate of accounts receivable turnover. The decrease in this indicator reflects the increase in sales on credit.
2.4 ... Improving the use of working capital of the enterprise
A significant source of internal investment in an organization is an increase in the rate of turnover of funds invested in assets. Working capital management is based on the determination of the optimal volume and structure of current assets, sources of their coverage and the ratio between them, ensuring stable and efficient activities of the organization, as well as creating opportunities for self-financing development. This task can be solved by conducting a regular analysis of the structure and turnover of the organization's assets.
The acceleration of their turnover is associated with such moments as a decrease to the minimum required level of the amount of advanced capital, a decrease in the need for additional sources of financing (respectively, payment for them), a decrease in the costs associated with the possession of inventories and their storage, as well as a decrease in the amount paid taxes, etc. (5, p. 467).
The acceleration of the turnover of working capital leads to the release of funds from circulation, which allows a smaller amount of working capital to increase the output and sales of products and improve the quality of products (works, services) (2, p. 187).
The duration of funds in circulation is influenced by a number of external and internal factors.
External factors include: production, supply and sales and intermediary activities, industry affiliation, the scale of the organization, the economic situation and related economic conditions (inflation rate, violation or complete absence of established economic ties, which leads to the forced accumulation of stocks and slowing down the process turnover of funds).
Internal factors include the effectiveness of the asset management strategy through the pricing policy, the structure of assets, the choice of methods for assessing inventory items (5, p. 467).
Rational and economical use of working capital is of great importance for each specific enterprise.
The main goal of improving the use of working capital is to improve the financial condition of the enterprise (achieving maximum profit and the increase in the value of the firm).
Unlike inventories, which are fairly static, they cannot be drastically changed, since they are largely determined by the essence of the technological process, accounts receivable are a very variable and dynamic element of working capital, which significantly depends on the company's policy towards product buyers. Accounts receivable is an immobilization of its own circulating assets, i.e., in principle, it is unprofitable for the company, tk. the availability of funds in the company's accounts depends on it. In theory, accounts receivable can be minimized, however, this does not happen for many reasons, including competition.
From the standpoint of reimbursement of the value of delivered products, the sale can be performed in one of three ways:
prepayment (goods are paid in full or in part before
its transfer by the seller);
cash payment (goods are paid in full
in the moment transfer of goods, that is, there is, as it were, an exchange of goods for
money);
payment on credit (goods are paid through a certain
time after it was handed over to the buyer). In a market economy
it is the last method that is the main one and is carried out
usually in the form of non-cash settlements, the main forms of which are a payment order, letter of credit, collection settlements and check. The latter scheme is the most disadvantageous for the seller, since he has to lend to the buyer, but it is this scheme that is the main one in the system of payments for the delivered products. When paying with a deferred payment, it is precisely the accounts receivable for commodity transactions that arise as a natural element of such a generally accepted settlement system.
When developing a policy for lending to buyers of its products, the company must decide on the following key issues:
loan term (most often the company has several model contractsproviding a deadline for payment for products);
credit standards (criteria by which the supplier determines the financial viability of the buyer and the resulting payment options);
system for creating reserves for doubtful debts (it is assumed that, no matter how well the system of working with debtors is debugged, there is always a risk of non-receipt of payment, at least due to force majeure; therefore, based on the principle of caution, it is necessary to create a reserve for losses in connection with insolvency of the buyer);
payment collection system (this includes procedures for interaction with customers in case of violation of payment terms, a set of criteria values \u200b\u200bof indicators, indicating the materiality of violations in payment, the system of punishment for unscrupulous counterparties, etc.);
system of discounts provided (in a market economy
the usual practice is to provide discounts in the case of an agreed and fairly short period of payment for the delivered products) (8, p. 372).
An effective customer relationship system involves:
Qualitative selection of clients who can be provided with a loan;
Determination of optimal credit conditions;
A clear procedure for filing claims;
Control over how clients fulfill the terms of contracts.
No matter how effective the system for selecting buyers, in the course of interaction with them, all kinds of overlaps are not excluded, therefore the enterprise is forced to organize some system of control over the execution of payment discipline by buyers. This system, called the mutual administration systemrelationship with customers implies:
Regular monitoring of debtors by product,
the amount of debt, maturity dates, etc .;
Minimization of time intervals between the completion of work, product shipment, presentation of payment documents;
Sending payment documents to the proper addresses;
d) careful consideration of customer requests for conditions
payment;
A clear procedure for paying bills and receiving payments.
The following ways of improving the use of working capital at the enterprise are possible:
creation of a perfect regulatory framework at the enterprise;
management of working capital at the enterprise in order to minimize them;
educating employees of the enterprise in the spirit of rational
use of material resources;
maintenance of equipment and technology in good working order and strict adherence to technological processes, etc. (3, p. 248-249).
Conclusions and offers
Object of study term paper - Open Joint Stock Company Vazhskoe. The production line of OAO Vazhskoye in terms of the structure of marketable products is dairy and meat. The leading branch of animal husbandry is the production of milk and cattle meat.
For the economic characteristics of the enterprise were used:
data of the forms of accounting (financial) statements of the enterprise for 2005 - 2007, order on accounting policy, primary accounting documents.
Analyzing the level and dynamics of financial results as a whole for the enterprise and by type of activity, we can say that the sales proceeds, the level of other income and expenses have increased. The revenue growth rate is equal to the cost price growth rate, which is of course a negative indicator. The profitability of the turnover has decreased, which means that the demand for products has decreased. The financial position of the company is stable, as of 01.01.2008 there are free funds.
The financial condition of the enterprise largely depends on the structure and level of use of working capital. The indicators of the use of working capital are the turnover ratio; the duration of one revolution and the load factor.
Compared to 2005, there was a decrease in the volume of working capital (2005 - 34659 thousand rubles, as of 01.01.2008 - 60153 thousand rubles). Analyzing the efficiency of the use of working capital in Vazhskoye OJSC, it can be concluded that the duration of one turnover in days has increased, this indicates that the working capital is moving slowly. The load factor has increased, while the financial situation of the enterprise has worsened, working capital has become less efficiently used. In general, the turnover ratio for current assets decreased by 0.07.
When runningworking capital, it is necessary to pay attention to the state of affairs in the enterprise in the following areas:
a system for improving the regulatory framework at the enterprise;
management of working capital at the enterprise in order to minimize them (for the timely receipt of funds for the work and services performed and to reduce costs associated with the reclamation of overdue debts, JSC Vazhskoye needs to analyze the circle of its customers and buyers, strengthen control over the implementation of the terms of the contract ; develop a report on accounts receivable with the timing of its occurrence, for timely action against non-paying enterprises);
monitoring the standards and dynamics of actual unit costs and turnover of working capital;
improvement of the planning procedure and the formation of working capital;
the level of quality of works and services and ensuring their competitiveness, etc.
In fact, these are all the most important factors in increasing the efficiency of the use of working capital at the enterprise.
Improving the use of working capital at the enterprise hasgreat economic and social importance, as it allows:
significantly increase the profit remaining at the disposal of the enterprise;
increase the competitiveness of products;
to improve financial condition enterprises;
accumulate sufficient own financial resources
for the purchase of new equipment, etc.
Bibliography
Negotiable facilities (12)
Abstract \u003e\u003e Economics... circulating funds are: 1.standard circulating funds by production stocks 2.standard circulating funds work in progress 3.standard circulating funds ...
Negotiable facilities (16)
Abstract \u003e\u003e Economic theoryComponents of the material-material structure circulating funds... The elements circulating funds Negotiable production assets include: ... for financing circulating funds borrowed facilities... Additional need for circulating meansdue to ...
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Under the turnover circulating funds the duration of a complete circuit is understood funds from the moment of purchase circulating funds (purchases...
In this article we will talk about working capital load factor, and also consider the formula for calculating the indicator for a business plan. This coefficient is the inverse and represents the ratio of the average cost of working capital for the period to the proceeds from product sales. It shows the amount of working capital spent on 1 ruble of products sold. The formula for calculating the load factor of working capital is discussed below.
K about - the turnover ratio.
The period for which the cost of working capital is averaged can be equal to: 30 days, 180 days, 360 days.
The working capital utilization ratio characterizes the efficiency of using working capital. The lower the value of the load factor, the more efficiently the business works, and the more efficiently the working capital is used.
Summary
The main task in the management of the company's assets is to maximize the return on the invested money while ensuring the liquidity and solvency of the company. In order to ensure sufficient solvency, the company must have a certain amount of money on the account, which is not involved in the production turnover. One of the important tasks in the management of the working capital of an enterprise is to ensure the optimal balance between and the solvency of the enterprise through maintaining the appropriate amount of working capital (see “