Indicators and analysis of the use of working capital. Coursework: Analysis of working capital Analysis of working capital of the enterprise indicators
Working capital(current assets) are funds invested by an enterprise in current operations during each operating cycle.
One of the criteria for the effectiveness of the use of working capital is the amount of working capital, which depends on:
- the turnover of current assets (how often funds invested in operational activities are returned to the enterprise);
- structure of working capital (what part of current assets is financed from own funds and how resources are allocated in the operating cycle).
Analysis of the use of working capital of the enterprise allows:
- evaluate the efficiency of the use of resources in the operational activities of the enterprise;
- determine the liquidity of the company's balance sheet, i.e. the ability to timely repay short-term liabilities;
- find out what the company's own working capital is invested in during the financial cycle.
The size and structure of current assets must correspond to the needs of the enterprise, which are reflected in the budget.
Current assets should be minimal, but sufficient for the successful and uninterrupted operation of the enterprise.
Working capital structure- these are the proportions of the distribution of resources between individual elements of current assets. The structure of working capital reflects, in particular, the specifics of the operating cycle, as well as what part of current assets is financed from own funds and long-term loans, and what part - from borrowed funds, including short-term loans from banks.
The size and structure of own circulating assets may reflect the duration and characteristics of the financial cycle.
The amount of own circulating assets reflects the share of funds belonging to the enterprise in its current assets and is one of the characteristics of financial stability.
The value of own circulating assets shows not only how much current assets exceed current liabilities, but also how much non-current assets are financed from the company's own funds and long-term loans.
To identify the reasons for the decrease in the total turnover period of current assets, it is necessary to analyze the dynamics of the turnover periods of the main types of working capital (commodity material stocks, work in progress, stocks finished products and receivables).
Goods shipped (accounts receivable) account for a significant share in the working capital. The total amount of accounts receivable (excluding advances issued to suppliers) is 47% of the company's working capital. Manufacturing and finished goods inventories also account for a significant share of current assets (33%). Advances paid (7%) additionally increase the duration of the financial cycle.
For a more detailed analysis of the use of working capital, it is necessary to assess the turnover of each of the significant parts of current assets.
The financial position of the enterprise, its indicators of liquidity and solvency directly depend on how quickly the funds invested in current assets turn into real money.
The duration of funds in circulation is determined by the cumulative influence of a number of multidirectional external and internal factors.
To calculate the current assets turnover ratio (Kob.), The following formula is used:
Cob. = sales revenue / average current assets for the period
It is convenient to use a derived indicator for analysis:
turnover period (days) - the number of days in the period / Cob.
Let's continue our example. The total turnover period is growing and at the end of the year reaches 133 days, which corresponds to a decrease in the turnover of current assets by 48% per year.
Obviously, the deterioration of the indicators of the turnover period of all elements of current assets, and the period of accounts receivable turnover increased especially sharply. This negative trend is especially important, since accounts receivable occupy a large share in the structure of working capital.
Attention should be paid to the relatively high value of the periods of turnover of inventories and finished products, while the period of turnover of work in progress is almost 2.5 times less than each of these indicators and is 15 days. This leads to an unjustified lengthening of the financial cycle.
Return on current assets... This indicator allows you to give a comprehensive assessment of the efficiency of the use of working capital. The indicator can be presented as the product of two other indicators - profitability of sales and turnover of current assets.
The return on current assets sharply deteriorated in 1998 compared to the previous year and fell to the level of 1996. Therefore, in order to identify the reasons for this decline, it is additionally necessary to analyze the return on sales and turnover of current assets.
The optimal level of working capital will maximize profits with an acceptable level of liquidity and commercial risk.
The main tasks of working capital
Remark 1
At the present time, for a successful, uninterrupted production of products with the aim of their subsequent sale and profit, a koiyere enterprise needs to have working capital. The amount of funds should allow the purchase of the necessary materials and components for continuous production. The main goal of the rational use of working capital is to maximize the return on investment, subject to the firm and necessary solvency of the enterprise.
The main tasks of working capital are:
- structure of fixed assets, the number of their updates, technical condition;
- familiarization with the factors that have a direct impact on the rational use of fixed assets;
- full analysis of capacity utilization;
- the influence of the main factors that affect the volume of products;
- qualitative analysis of return on assets and identification of product reserves;
- finding ways to increase the use of working capital.
The purpose of any analysis of the activities of the enterprise is the study of factors and components that are aimed at the use of fixed assets, the development of measures to increase their efficiency.
The constituent elements of the fixed assets of the enterprise
The fixed assets of a manufacturing enterprise are divided into:
- industrial - production
- non-industrial
- non-production funds.
The capacity of a production enterprise is determined by industrial production assets. It is also necessary to separately highlight the active part of the funds (building, structure) and the passive part of the funds and individual groups in accordance with their purpose (warehouses, measuring equipment, cars). Such a detailed classification is necessary to find the optimal solution for the use of fixed assets based on the optimization of their structure.
Fixed assets can be classified according to the main elements (Fig. 1):
In addition to the specified elements of fixed assets, to analyze the efficiency of the use of working capital, they are divided into certain groups by types, grades, places of use, etc.
The financial activity of a manufacturing enterprise directly depends on the amount of working capital of the enterprise, therefore, the management of the enterprise is interested in organizing the most effective promotion and use of its funds.
Circulation of circulating assets is understood as the duration of the full cycle of the circulation of assets from the moment of purchase of circulating assets to the release of finished products, which are subsequently sold. The circle of circulating assets is completed only when the proceeds go to the current account of the enterprise.
Formulas for calculating the working capital of an enterprise
Working capital turnover ratio$ К_ (about) $, this indicator characterizes the number of revolutions that circulating assets made during the reporting period:
$ K_ (about) = \ frac (P) (C) $
$ R $ - volume of finished products sold, thous. $ С $ - weighted average cost of working capital for the year, thousand rubles.
The coefficient of fixing current assets($ К_ (closed) $), i.e. amount of working capital per $ 1 $ ruble of finished products sold:
$ K_ (closed) = \ frac (P) (C) $
The number of cash turnover in days($ D_ (about) $), i.e. time required for one circuit:
$ D_ (about) = \ frac (C \ cdot D) (R) $
where: $ D $ - the number of days in the reporting period (year - $ 360, quarter - $ 90).
Based on the above formulas, you can draw up a table and calculate the need for working capital for the planned period (Table 1)
The analysis of the use of working capital is carried out in order to identify the shortcomings of the working capital management system and identify reserves for increasing their efficiency.
Analysis of the use of working capital commercial organization is carried out in the following sequence:
At the first stage, an analysis of the use of working capital in general is carried out.
To assess the effectiveness of the use of working capital, indicators of the turnover of working capital are used (they can be used both to assess working capital as a whole, and to assess their individual components). The main ones are the following:
average duration of one turnover in days;
the number (number) of revolutions made by circulating assets during a certain period time (year, half-year, quarter), otherwise - the turnover ratio;
the amount of borrowed working capital per 1 ruble products sold(load factor of working capital).
If the circulating assets go through all the stages of the circulation, for example, in 50 days, then the first indicator of the turnover (the average duration of one turnover in days) will be 50 days. This indicator roughly characterizes the average time that elapses from the moment of purchase of materials to the moment of sale of products made from these materials.
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 product sales.
The indicator of the average duration of one turnover in days (TO) can be calculated in another way, as the ratio of the number of calendar days (B) in the reporting period to the number of revolutions made by circulating assets during this period, i.e. according to the formula:
where KO is the number of revolutions made by circulating assets for the reporting period.
The second turnover indicator - the number of revolutions made by circulating assets for the reporting period (turnover ratio) (KO) - can also be obtained in two ways:
as the ratio of product sales minus value added tax and excise taxes (P) to the average balance of working capital (CO), i.e. according to the formula:
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:
The third indicator of turnover (the amount of employed working capital per 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 (CO) to the sales turnover for a given period (P), i.e. e. according to the formula:
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.
When the turnover of circulating assets slows down, they are additionally attracted (involved) into circulation, and when accelerating, circulating assets are released from circulation. The amount of working capital released due to the acceleration of turnover or additionally attracted as a result of its deceleration is defined 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 accelerating turnover is that an 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 profitability of working capital is calculated as the ratio of profit (gross or net) of the enterprise (Pr) to the average annual cost of working capital (GSSOS).
The value of the increase in the volume of products sold due to the acceleration of the turnover of working capital can be calculated by the formula:
Vр =? Ko * Co.pl
where? Ko is the change in the turnover ratio of the OBS;
Co.pl - the average balance of working capital in the planned or previous period.
As a result of the acceleration of turnover (the intensity of the use of working capital), a certain amount of working capital is released.
The absolute release reflects a direct decrease in the need for working capital. Absolute release occurs if:
So.f< Со.пл, Vр = const
where So.f - actual balances of working capital;
So.pl - the planned balances of working capital;
Vр - sales volume.
Absolute release is determined by the formula:
AB = Co.fact - Co.plan.
The relative release of working capital occurs with an acceleration of turnover with an increase in production. Unlike absolute release, the funds released in this case cannot be withdrawn from circulation without maintaining the continuity of production.
Relative release reflects both a change in the amount of working capital and a change in the volume of products sold. To determine it, you need to calculate the need for working capital for the reporting year, based on the actual sales turnover for this period and turnover in days for the previous year. The difference will give the amount of funds released.
When analyzing the use of working capital, the analysis of liquidity ratios is important.
Liquidity - ease of implementation, sale, transformation of material or other values into cash to cover current financial obligations.
In the practice of financial analysis, there are three main indicators of liquidity.
Current (total) liquidity ratio (coverage ratio; English current ratio, CR) - financial ratio, equal to the ratio of current (circulating) assets to short-term liabilities (current liabilities). This is the most common and commonly used measure of liquidity. Determined by the formula:
Ktl = OA / KO
where: Ктл - current liquidity ratio;
ОА - current assets;
KO - short-term liabilities.
The ratio reflects the company's ability to repay current (short-term) liabilities at the expense of only current assets... The higher the indicator, the better the company's solvency.
A coefficient value of 2 or more is considered normal (this value is most often used in Russian regulations; in world practice, it is considered normal from 1.5 to 2.5, depending on the industry). A value below 1 indicates a high financial risk associated with the fact that the company is not able to consistently pay current bills. A value of more than 3 may indicate an irrational capital structure.
Quick ratio (sometimes called intermediate or quick ratio; English quick ratio, QR) is a financial ratio equal to the ratio of highly liquid current assets to short-term liabilities (current liabilities). The source of data is the company's balance sheet in the same way as for current liquidity, but inventories are not taken into account in the composition of assets, since when they are forced to sell, the losses will be maximum among all working capital. Quick liquidity formula:
Kbl = (DS + KFV + KDZ) / KO
where KDZ - short-term receivables;
KFV - short-term financial investments;
DS - cash.
The ratio reflects the company's ability to pay off its current liabilities in the event of difficulties with the sale of products.
A coefficient value of at least 1 is considered normal.
Absolute liquidity ratio - a financial ratio equal to the ratio of cash and short-term financial investments to short-term liabilities (current liabilities). The data source is the company's balance sheet in the same way as for current liquidity, but only cash and funds close to them are taken into account in the composition of assets:
Cal = (DS + KFV) / KO
Unlike the two above, this coefficient is not widely used in the west. According to Russian regulations, a coefficient value of at least 0.2 is considered normal.
The formula by which the operating cycle is calculated is:
POC - the duration of the operating cycle of the enterprise, in days;
POD - the period of turnover of the average balance of monetary assets, in days;
POmz - the duration of stocks of raw materials, materials and other material factors of production in the composition of current assets, in days;
POGP - duration of inventory turnover finished products, in days;
POdz - the duration of collection of receivables, in days.
The duration of the production cycle is determined by the formula:
PPT - the duration of the production cycle of the enterprise, in days;
POSM - the period of turnover of the average stock of raw materials, materials, semi-finished products, in days;
PONZ - the period of turnover of the stock of work in progress, in days;
POgp - the period of turnover of the average stock of finished products, in days;
The cycle of money turnover (financial cycle) is determined by the formula:
PFC - the duration of the financial cycle, in days;
PPT - the duration of the production cycle, in days;
POdz - the average period of accounts receivable turnover, in days;
POKZ - average period of accounts payable turnover, in days.
The reduction in operating, production and financial cycles in dynamics is considered a positive trend.
At the second stage of the analysis of the use of working capital, the analysis is carried out according to individual structural components:
1. Analysis of inventories assumes:
Analysis of the structure of inventories (in general and for individual groups), consideration of the dynamics of inventories for the analyzed period.
Determination of constant and variable parts of reserves, identification of seasonal fluctuations.
Analysis of indicators of inventory turnover and average turnover period in order to identify ways to accelerate their turnover.
2. Analysis of receivables assumes:
Analysis of the dynamics, structure and condition of receivables.
Calculation of indicators characterizing the state and efficiency of the use of receivables:
The coefficient of diversion of current assets into accounts receivable:
current asset financial cycle
DZ - the total amount of accounts receivable,
ОА - the total amount of the company's current assets.
Number of turnovers of receivables:
OR - the total amount of turnover for the sale of products in the period under review,
Receivables collection period:
avg.DZ - average accounts receivable, rubles;
О- the amount of one-day sales turnover, rub.
Overdue accounts receivable ratio:
2. Analysis of funds assumes:
Analysis of the most significant indicators such as the absolute liquidity ratio and the period of turnover of monetary assets.
Calculation of coefficients and indicators that demonstrate changes and the state of the enterprise's funds. Calculation of the minimum permissible need for funds according to the formula:
PRda is the estimated volume of expenditure of monetary assets in the forthcoming period, rubles;
Code - the ratio of the turnover of monetary assets in the reporting period.
Analysis of indicators of turnover and average turnover period, organization of measures to accelerate the turnover of funds.
INTRODUCTION
1. ANALYSIS OF THE EFFICIENCY OF USING CURRENT MEANS OF THE ENTERPRISE.
1.1 Concept, content and classification of working capital
2. ANALYSIS OF USE OF CURRENT FUNDS OF THE COMPANY NJSC "City Bakery No. 2".
2.1 Analysis of the working capital of the enterprise
2.2 Assessment of the efficiency of using the company's current assets
3. DEVELOPMENT OF MEASURES TO INCREASE THE EFFICIENCY OF USE OF CURRENT FUNDS OF THE COMPANY.
3.1 Measures to improve the efficiency of using working capital
CONCLUSION
BIBLIOGRAPHY.
APPENDIX A - ACCOUNTING BALANCE.
APPENDIX B - STATEMENT OF FINANCIAL RESULTS.
INTRODUCTION
An integral condition for the functioning of the enterprise is the availability of working capital. Lack of working capital paralyzes the activities of the enterprise and leads to a deterioration in its financial situation.
The market presupposes a competitive struggle between various commodity producers and encourages a constant search for reserves to increase the efficiency of the use of all material factors of production, including circulating assets. It is possible to identify and practically apply these reserves using economic analysis... The state and use of working capital is one of the most important aspects of analytical work. More complete and rational use the working capital of the enterprise contributes to the improvement of all its technical and economic indicators: the growth of labor productivity, an increase in output, a decrease in its cost, and maximum profit. The need for forecasting and planning working capital is determined by the special value of this economic category for economic activity enterprises. The advanced nature of circulating assets, the need to invest costs in them until an economic effect is achieved, put them on a par with real investments.
In the context of the economic crisis and sanctions against Russia on the part of the international community, characterized primarily by a serious shortage of liquidity, the issues of working capital management, as in the largest liquid part of an enterprise's assets, have acquired particular relevance.
In addition, the existing methods for analyzing working capital are not free from shortcomings. The study of the economic literature on the issue under consideration allows us to conclude that the improvement of the analysis methodology is largely impeded by problems of both theoretical and practical nature. Until now, there is no uniformity of views of scientists and practitioners on the nature of working capital. The coefficients used in the analysis process do not always make it possible to reliably determine the results of the use of working capital, therefore, the methods based on the use of such coefficients should take the correct management decisions, aimed at the formation and improvement of the efficiency of their use. In addition, the information base traditionally used for analysis purposes, based on data financial statements, contains significant limitations for such an analysis.
These problems require deep study in order to find ways to improve the quality of economic analysis of working capital.
The purpose of this work is to develop measures to improve the efficiency of using the company's working capital.
In accordance with the specified goal in the graduation qualification work the following tasks have been set:
1. Consider the concepts and economic content of working capital.
2. Study the classification of working capital.
3. Identify indicators of the use of the company's working capital.
4. To analyze the structure and dynamics of the working capital of the enterprise Non-public joint-stock company (NAO) "City Bakery No. 2". (Formerly ZAO - Closed Joint Stock Company)
5. To assess the efficiency of using the company's current assets.
6. To develop measures to improve the efficiency of the use of working capital.
7. Calculate the effectiveness of the proposed measures.
The object of the research is NJSC "City Bakery No. 2".
The subject of the research is to increase the efficiency of using circulating assets.
Theoretical and methodological basis of the research. The theoretical and methodological basis of the study was the works of domestic and foreign scientists on economics and analysis of the activities of organizations, legislative and regulations Russian Federation on issues of economic development and the organization of accounting systems.
In the course of the study, we used the economic and statistical method, methods of groupings, integrated analysis, comparative and factor analysis, as well as other methods of scientific research.
1. ANALYSIS OF THE EFFICIENCY OF USE OF CURRENT MEANS OF THE ENTERPRISE
(THEORETICAL CHARACTERISTIC)
1.1 Concept, content and classification of working capital
Working capital is a complex of production assets and circulation funds in monetary terms. These components of circulating assets serve the reproduction process in different ways: the first in the sphere of production, and the second in the sphere of circulation.
The conditions for the release and sale of goods require that stocks are constantly in the warehouses of the manufacturing enterprise. material values consumed in the production process, as well as finished products. At the same time, in order to ensure uninterrupted operation, it is necessary that certain backlogs of unfinished products be located in the shops. And finally, the company must have certain funds on hand, in bank accounts, in settlements.
The assets of the organization that, as a result of its economic activities, completely transfer their value to the final finished product, take a one-time part in the production process, changing or losing with all this the natural-material form, are called circulating assets.
Let's list the features of working capital:
- full expenditure, during one production cycle and full transfer of value to newly created products;
- being in constant circulation;
- during one turnover, current assets change their form from cash to commodity, from commodity to cash, going through the stages of purchase, consumption, sale.
Working capital is studied in terms of composition, structure and efficiency of use.
When studying the structure of working capital, you need to take into account their classification:
1. According to the functional role in the production process, circulating assets (OS) are divided into:
- circulating production assets (stocks and fixed assets in production);
- working capital in circulation (finished products, cash and settlements).
2. According to the degree of liquidity, they are divided into:
- absolutely liquid (cash and short-term financial investments);
- quickly sold current assets (normal accounts receivable);
- slow-moving assets (stocks, finished goods, goods).
3. Current assets are divided according to the degree of risk:
- the minimum degree of risk (cash and short-term financial investments);
- low degree of risk (accounts receivable, except for doubtful, finished products);
- medium risk (inventory including VAT, excluding finished goods);
- high degree of risk (doubtful accounts receivable, finished goods not in demand, construction in progress for a canceled order)
- The composition of circulating assets is understood as a set of elements that form circulating production assets and circulation funds.
- The elements of working capital are: raw materials; basic materials and purchased semi-finished products; auxiliary materials; fuel and fuel; container and container materials; spare parts for repair; instruments; household inventory and other MBEs; work in progress and self-made semi-finished products; Future expenses; finished products; shipped goods; cash; debtors; others.
Figure 1.1 shows the elemental composition of working capital.
Figure 1.1- Elemental composition of working capital
Circulation funds include: finished products, cash and settlement funds.
Working capital and circulation funds, being in constant motion, ensure uninterrupted circulation of funds. The turnover of enterprise funds begins with the advancement of the cost of monetary form for the purchase of raw materials, materials, fuel and other means of production - the first stage of the circuit. As a result, money takes the form of inventories, expressing the transition from the sphere of circulation to the sphere of production. With all this, the cost is not spent, but is advanced, since after the completion of the circuit it is returned. The second stage of the circulation takes place in the production process, where the labor force carries out productive consumption of the means of production, creating New Product, which carries the transferred and newly created value. The advanced value again changes its form - from the productive one, it passes into the commodity one. The third stage of the circulation is the sale of finished products (works, services) and receipt of funds. At this stage, circulating assets are again transferred from the sphere of production to the sphere of circulation. The interrupted commodity circulation is resumed, and the value from the commodity form passes into monetary. The difference between the amount of money spent on the manufacture and sale of products (works, services) and those received from the sale of manufactured products (works, services) is the company's cash savings.
Raw materials are products of the extractive industries
1. Materials are products that have already undergone certain processing. Materials are subdivided into basic and auxiliary materials.
The main ones are materials that are directly part of the manufactured product (metal, fabric).
Ancillary materials are materials necessary to ensure normal production process... They themselves are not included in the finished product (lubricant, reagents).
Semi-finished products - products finished processing at one processing unit and transferred for processing to another processing unit. Semi-finished products can be own and purchased. If semi-finished products are not produced in our own enterprise, but are purchased from another enterprise, they are classified as purchased and are included in production inventories.
2. Work in progress is a product (work) that has not passed all stages (phases, redistributions) provided for technological process, as well as incomplete products that have not passed tests and technical acceptance.
3. Deferred expenses are expenses of a given period that are subject to repayment at the expense of the cost of subsequent periods.
4. Finished products are fully finished finished products or semi-finished products received at the warehouse of the enterprise.
5. Accounts receivable - money that is physical or legal entities owe money for the supply of goods, services or raw materials.
6. Cash means cash held at the cash desk of the enterprise, on the current accounts of banks and in settlements.
On the basis of the elemental composition of circulating assets, you can calculate their structure, which is the share of the value of individual elements of circulating assets in their total value.
According to the sources of education, fixed assets are divided into own and borrowed (borrowed) ones.
Own fixed assets are formed at the expense of the company's own capital ( authorized capital, reserve capital, accumulated profit, etc.).
The structure of borrowed working capital includes bank loans, as well as accounts payable... They are provided to the enterprise for temporary use. One part is paid (loans and borrowings), the other is free (accounts payable).
By the level of controllability, OS are divided into standardized and non-standardized. The standardized ones include those operating systems that ensure the continuity of production and promote the efficient use of resources. These are production inventories, prepaid expenses, work in progress, finished goods in stock. Cash, shipped products, accounts receivable are classified as non-standardized working capital. The absence of norms does not mean that the size 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 fixed assets are planned by the enterprise, while non-standardized fixed assets are not the object of planning.
In the practice of planning, accounting and analysis, working capital is grouped according to the following criteria:
- depending on the functional role in the production process - circulating production assets (funds) and circulation funds;
- depending on the practice of control, planning and management - standardized OS and non-standardized OS;
- depending on the sources of working capital formation - own working capital and borrowed working capital;
- depending on liquidity (speed of transformation into cash) - absolutely liquid funds, quickly sold by fixed assets, slowly sold by fixed assets;
- depending on the degree of risk of capital investment - working capital with a minimum investment risk, working capital with a low investment risk, working capital with an average investment risk, working capital with high risk investments;
- depending on the accounting standards and reflection in the balance sheet of the enterprise - fixed assets in stocks, accounts receivable, short-term financial investments, cash, other current assets;
- depending on the material content - objects of labor, finished products and goods, cash and funds in the calculations.
The structure of working capital is understood as the ratio between the elements in the total amount of working capital.
Composition and structure of working capital are not the same in different sectors and sub-sectors of the economy. They are determined by many factors of production, economic and organizational nature.
So, fixed assets represent the value advanced in monetary form for the planned formation and use of circulating production assets and circulation funds in the minimum necessary amounts, ensuring the implementation of the production program by the enterprise and the timeliness of settlements. Since fixed assets include both material and monetary resources, not only the process of material production depends on their organization and efficiency of use, but also financial stability enterprises.
1.2 Policy for managing the use of working capital of the enterprise
Inflation, non-payments and other crisis phenomena are forcing enterprises to change their policy in relation to working capital, to look for new sources of replenishment, to study the problem of the efficiency of their use. The material basis of production is production assets in the form of means of labor. In the process of functioning, the means of labor and objects of labor in different ways and to varying degrees transfer their value to the value of the product produced. This is the reason for the division of production assets into fixed and circulating assets. Revolving production assets serve the sphere of production and completely transfer their value to the cost of finished goods, changing the original form in the course of one production cycle. In its turnover, circulating assets consistently take monetary, productive and commodity forms, which corresponds to their division into production assets and circulation funds.The organization of working capital is fundamental in the general complex of problems of increasing their efficiency. The organization of working capital includes:
- determination of the composition and structure of working capital;
- Establishment of the enterprise's need for circulating assets;
- determination of sources of formation of working capital;
- disposal and maneuvering of working capital;
- responsibility for the safety and efficiency of the use of working capital.
So much for industrial enterprises a characteristic feature is that most of their working capital is occupied by inventories and accounts receivable.
One of the basic principles of the organization of working capital is rationing. The implementation of this principle makes it possible to economically establish the required size of their own circulating assets and thereby provide conditions for the successful implementation of their production and payment and settlement functions. The erroneous practice of our time of refusal to standardize working capital is one of the reasons for the crisis in the payment and settlement discipline.
The most important principle correct organization working capital is their use strictly for their intended purpose. Violation of this principle by diverting advanced working capital from production turnover to cover losses, losses due to mismanagement, to pay for excessive bank interest on loans, on contributions to the budget of tax payments led to a crisis in payment and settlement discipline, the growth of huge debts to suppliers for the supplied raw materials and finished products, workers and employees on wages, the budget for tax payments.
An important principle of organizing working capital is to ensure their safety, rational use and accelerate turnover. The organization of the working capital of enterprises necessarily includes a systematic control over the safety and efficiency of use through audits and surveys based on statistical data, operational and accounting reports.
One of the important reasons for the lack of working capital at many enterprises is the lack of a stable supply of raw materials. This leads to the fact that sometimes 30-50 times more than the daily consumption of raw materials is purchased at once. We get salary payments, therefore, huge working capital is needed.
The problem of non-payments makes it necessary to classify your creditors according to the terms of overdue accounts payable and depending on who needs to be paid now, who can still wait, and who can not be paid at all. The first places in this queue are payments on loans and interest for them to commercial banks and taxes to the federal budget. Late payments here turn into penalties in such an amount that they can easily bring the company to bankruptcy. It should be noted, however, that in Russian economic practice this threat is rather conventional. Currently, the possibility of bankruptcy is inversely proportional to the size of the enterprise, with all this for the former state enterprises this inverse relationship is even more pronounced.
Providing sufficient working capital, enabling the company to pay for raw materials and labor, and incur costs associated with production and marketing activities, in practice comes down to the need to solve several very complex problems.
The first of them, the solution of which can significantly replenish the working capital of the enterprise, is inventory management. According to Western textbooks financial management, from the point of view of the adequacy of working capital, no factor is as important as the rate of turnover of inventory.
But in order to determine the influence of this factor in Russian reality, you need to have at least accurate information about the availability of reserves and calculate the standards for their use. That is, it all starts with accounting issues. The fact that the accounting system in the warehouses of enterprises requires improvement is beyond doubt.
After all, a company often buys the same raw material at different prices. Storekeepers have all the raw materials recorded on different cards (since they have a different price). The accounting department must write off this raw material at a certain price, but since it is written off from different cards, a new method of writing off is obtained - at random, like a card from a storekeeper. Naturally, it is impossible to manage finances based on such data. Until now, the most common method in our country was the method of assessing stocks at the actual cost of procurement. At the same time, when it is used in conditions of long-term storage of stocks, typical for many enterprises, firstly, the cost of production is underestimated, and secondly, the cost of material residues is significantly underestimated, which means that their turnover is artificially overestimated.
The use of the method for evaluating materials at the cost of recent purchases leads to a distortion of the amount of material balances in the direction of their reduction, and, consequently, to an overestimation of the turnover ratio. Evaluation of inventories at the cost of the first purchases leads to the fact that the cost of goods sold is formed on the basis of the lowest prices for materials, and their balances are estimated at the maximum cost. Therefore, the turnover of current assets in this case will be objectively lower than when using the previously considered methods for assessing reserves. The solution is simple - implementation in the warehouse and in the accounting department at an average cost, which is provided for by the instructions of the Ministry of Finance.
The second aspect of the problem of increasing working capital is the improvement of the settlement system. To speed up settlements, first of all, you need to know all the payers - you need a register that includes information about the contractual amounts, terms and other parameters related to the receipt of payments. At the same time, it is worth considering who will delay payments and by how much, and who will not pay at all.
In the context of the transition to a market economy, the state of working capital for most enterprises has seriously deteriorated due to not only local, but also general reasons: the destruction of a single economic space, a fall in the level of production, a rise in prices, etc. New models of working capital management should be "tested", be voluntarily adopted by enterprises. Work in this direction is already underway.
1. Reducing the specific consumption of raw materials, materials, fuel provides the production of great economic benefits. First of all, it makes it possible to produce more finished products from a given amount of material resources and therefore acts as one of the serious prerequisites for increasing the scale of production.
2. Saving material resources, the introduction into production of new, more economical materials contribute to the establishment in the process of reproduction of more progressive proportions between individual industries, the achievement of a more perfect industry structure industrial production.
3. The desire to save material resources encourages the introduction of new technology and improvement of technological processes.
4. Savings in the consumption of material resources helps to improve the use of production capacity and increase social productivity. In itself, a decrease in the unit costs of the past, reified labor means an increase in the productivity of social labor. But the point is not only this - the saving of material resources entails savings in the costs of living labor as well: the relative expenditure of labor for the transportation of materials, their shipment and unloading, for their storage is reduced.
5. Saving material resources greatly helps to reduce the cost of industrial products.
6. Significantly affecting the reduction of production costs, the saving of material resources has a positive effect on financial condition enterprises.
Effective management of working capital is important for a company for the following reasons:
1. The amount of working capital of most companies is more than half of all its assets.
2. The solution of issues related to working capital is a continuous process and requires, in contrast to other areas of activity CFO, more time. The amount invested in each of the current asset positions may change on a daily basis and should be carefully monitored to ensure the most productive use of funds.
3. Optimal control working capital leads to an increase in income and reduces the risk of a shortage of company cash.
4. Proper management of working capital will maximize the rate of return and minimize your liquidity and commercial risk.
When optimizing the management process and the use of current assets, special attention should be paid to accounts receivable and production inventories.
Accounts receivable are funds owed to a firm but not yet received by it. The structure of current assets reflects accounts receivable, the maturity of which does not exceed one year.
Accounts receivable can be represented by the following items: accounts receivable from core activities and accounts receivable from other operations.
Accounts receivable from other transactions include such items as advances to employees, advances to branches, deposits such as a debt guarantee, receivables from financial transactions (receivables for dividends and interest), etc.
Accounts receivable management involves, first of all, control over the turnover of funds in settlements. Accelerating turnover is a positive trend economic activity enterprises.
Acceleration of turnover can be achieved through selection potential buyers, determining the terms of payment, monitoring the maturity of accounts receivable and impact on debtors.
The selection of buyers is carried out thanks to the analysis of compliance with their payment discipline in the past, analysis of their current solvency, analysis of the level of their financial stability and analysis of other financial indicators that characterize the financial condition of the company - the buyer.
The definition of the terms of payment for goods by buyers is that the buyer sets the boundaries of the terms of payment for goods: paid earlier - received a discount on payment for goods, paid on time - lost the discount provided, paid later - pay a fine.
Control over the maturity of accounts receivable includes ranking of accounts receivable by the timing of their occurrence. The most common classification provides for the following grouping of accounts receivable in days: up to 30 days, from 30 to 60 days, from 60 to 90 days, from 90 to 120 days, more than 120 days.
The most common methods of influencing debtors in order to pay off debts are sending letters, phone calls, personal visits, and selling debts to special organizations.
Accounts receivable management also implies a mandatory comparative analysis of the amount of accounts receivable with the amount of accounts payable. It is very important for the financial position of the company that the accounts receivable do not exceed the accounts payable.
The receivables management policy is an integral part of the current assets management policy and is aimed at expanding the volume of sales of products, optimizing the amount of this debt and ensuring its timely collection.
Inventory management policy is part of the general policy of managing current assets of the enterprise and consists in optimizing the overall size and structure of inventories, minimizing the cost of maintaining them and ensuring effective control over their movement.
When determining the need for working capital, it should be borne in mind that, firstly, at their expense the production costs of the enterprise are carried out and their shortage can lead to interruptions in the production process. Secondly, the receipt of proceeds often does not coincide with the time of shipment of products and the beginning of a new production cycle, that is, with the time of consumption of material resources. In these conditions, the enterprise must provide for such a size of circulating assets that will allow starting a new circuit without waiting for the end of the previous one. In addition, for smooth operation, the enterprise must have sufficient circulating assets not only for the formation of circulating assets and for the implementation of production, commercial and administrative expenses, but also for financing the activities of all service farms of the organization.
Consequently, at the beginning of the first production cycle, it is necessary to accumulate such an amount of working capital so that, until the working capital advanced into it completes its circulation and returns in the form of revenue, the enterprise could carry out costs associated with both production and marketing activities, and administrative work.
In conditions market economy all financial resources, with the help of which the formation of working capital is carried out, have their own value, therefore the analysis of sources of working capital plays an essential role.
1.3 Methodology for the analysis of working capital
The relevance of the topic under study lies in the fact that the efficiency of functioning and financial stability of enterprises largely depends on the provision of circulating assets, their structure and level of use. Therefore, the management system of current assets, along with planning, rationing and accounting, includes regular analysis of their composition, dynamics, compliance with the needs of current production and economic activities, as a result of which possible improvements in the use of circulating assets are identified, the duration of the financial cycle is reduced, the production process is uninterrupted, and sales of products with lower costs financial resources... The analysis of current assets should be characterized by consistency, purposefulness and efficiency, objectivity of assessments, validity of conclusions and proposals.The financial condition of the organization directly depends on how quickly the funds invested in current assets turn into real money. Thus, the growth of non-payments complicates the rhythm of the organization's activities and leads to an increase in accounts receivable; excessive diversion of funds into production inventories, work in progress, finished goods leads to ineffective use working capital.
The main task of managing current assets is to form the required volume, optimize the composition and ensure the effective use of the company's current assets.
The analysis of current assets occupies an important place in the analysis of the financial condition of an enterprise, since in relation to its economic activities, they perform a service function, i.e. in the process of the circulation of circulating assets, profit from sales is formed, which in many respects is the main source of funds that ensures the successful functioning of a commercial organization.
Working capital analysis covers the following steps:
- identifying the needs of the enterprise in working capital;
- determination of sources of financing of working capital;
- analysis of the impact of the state of current assets on liquidity;
- calculation of the rate of turnover of circulating assets to determine the efficiency of their use;
- analysis of the profit received as a result of the use of working capital.
Generally accepted analysis methods, as a rule, involve the implementation of the above stages by using only the organization's financial reporting data as an accounting and analytical database. At the same time, financial statements are formed according to the rules established by the state, and they do not fully take into account the information needs of the enterprise management. In this regard, in the works of economists, it is proposed to use budgets and reports on their execution based on management accounting data for the analysis of working capital, which should reflect the same aspects of economic activity as the financial reporting forms, but the information content of the former differs from the information content of the latter. The analysis of working capital on the example of an enterprise is of great importance. The former are more analytical, contain not only financial, but also non-financial indicators and make it possible to evaluate the assets of an enterprise not by the least of two indicators - cost price and market price, - and for each of them. This will not only allow you to get more detailed information for the subsequent analysis of working capital, but also to develop new, more correct methods for calculating analytical indicators.
The following figure shows the stages of the analysis of the working capital of the enterprise.
Figure 1.2- Stages of analysis of working capital
Stage 1 - analysis of the capital structure
The structure of working capital is understood as the ratio between the elements in the total amount of working capital. The structure of current assets is influenced by the specifics of specific production, supply, the accepted procedure for settlements with buyers and customers. The study of the structure is the basis for predicting future changes in the composition of working capital.
The structure of the company's current assets, first of all, reflects the specifics of the operating, financial cycle of the company. The composition and structure of current assets depends on the production cycle (for example, in mechanical engineering, where the production cycle is quite long, a significant share is work in progress, in food, a significant share is raw materials and materials), as well as on economic and organizational factors.
The composition and structure of working capital should be considered depending on:
- functional role in the production process (circulating production assets and means of circulation);
- liquidity, that is, the speed of conversion into cash;
- the degree of risk of capital investment.
Some authors believe that when analyzing the composition and structure of current assets, it is necessary to take into account their dependence on many factors of a production, organizational and economic nature, such as:
- sectoral features of production and the nature of the activity;
- the complexity of the production cycle and its duration;
- the cost of stocks, the terms of their delivery and its rhythm;
- settlement procedure and settlement and payment discipline;
- fulfillment of mutual contractual obligations
To analyze the structure of circulating assets, the proportions of the constituent elements of circulating assets in their total value are determined using vertical analysis.
Vertical (structural) analysis is carried out in order to determine the structure of the final financial indicators, i.e. identifying the proportion of individual reporting items in the overall final indicator (identifying the impact of each position on the result as a whole).
This method allows you to determine the proportion of elements of working capital:
Di = obsi / obs (1.1)
Where Di is the share of the working capital component;
Obsi - the value of the working capital component;
Obs - the result of the working capital of the enterprise.
Knowing the share of each major component in current assets, you can draw certain conclusions about the quality of resource management in the company. So, for example, a significant share of receivables indicates ineffective work with buyers and customers, a significant proportion of the inventory can be associated with:
1. an increase in the volume of purchases of raw materials and supplies due to an increase in prices for basic types of raw materials or an ineffective procurement management system;
2. an increase in the volume of production, which, in turn, leads to an increase in inventories;
3.poor-quality planning, lack of a clear relationship between procurement and production activities, etc.
To assess the dynamics of the structure, the horizontal method is used, which makes it possible to determine:
1. Absolute change in structure: Di = Di1 - Di0
2. Relative change: Тпр (Di) = Di / Di0 * 100%
The next stage is the analysis of the profitability of working capital.
Stage 2 - analysis of the liquidity of current assets.
As part of the liquidity analysis, the following ratios are calculated
The total liquidity ratio shows whether the company has enough funds that can be used to pay off short-term liabilities. It reflects how many rubles of the company's current assets fall on 1 ruble of current liabilities. Recommended values are at least 1-2. The coefficient is calculated using the following formula:
To the general. liquor = OA / KO (1.2)
Where K is common. liquor - total liquidity ratio
ОА - current assets;
Next, let's consider the quick ratio.
Urgent liquidity is understood as the ability to repay liabilities in the event of an organization's liquidation. The enterprise can be liquid to a greater or lesser extent, since the composition of current assets includes heterogeneous circulating assets, among which there are both easily realizable and hard-to-sell to pay off external debt.
The coefficient is calculated using the following formula:
By urgent liquor = (DS + KFV + DZ) / KO, (1.3)
Where K is urgent. liquor - quick liquidity ratio
DS - cash;
KFV - short-term financial investments;
DZ - Accounts Receivable
KO - short-term liabilities.
The quick liquidity ratio shows what funds can be used if the maturity of all or some of the current liabilities comes immediately and it will not be possible to sell the least liquid part - stocks. The recommended value is more than 1.
Next, consider the absolute liquidity ratio.
The absolute liquidity ratio shows what proportion of short-term debt obligations can be covered by practically absolutely liquid assets. The absolute liquidity ratio is calculated using the following formula (1.4):
Abs. liquor = DS / KO, (1.4)
Where DS - cash;
KO - short-term liabilities.
When calculating the indicator - the absolute liquidity ratio - only cash on hand, in bank accounts, as well as securities that can be sold on the stock exchange are taken as liquid assets. The denominator is short-term liabilities. The optimal value of the indicator (0.2-0.7) shows what part of the short-term debt the company can repay in the near future at the expense of cash and short-term financial investments.
Stage 3: analysis of the turnover of working capital.
At the third stage, the turnover rates (in revolutions and days), as well as the load factor, are calculated.
The asset turnover ratio is calculated using the following formula:
(1.5)
Where: Cob.a - asset turnover ratio;
ВР - sales proceeds;
Assets avg. - the average annual value of current assets.
Based on the calculated indicator, we will calculate the coefficient of fixation (loading of working capital, the coefficient of fixation).
Where Кз - coefficient of fixed assets of working capital;
K About - the turnover ratio of current assets;
The working capital turnover ratio in days is calculated using the following formula:
Dob = Dp / Cob (1.7)
Where DP is the duration of the period;
Cob is the turnover ratio.
Stage 4: analysis of the profitability of working capital.
Return on current assets (RCA) - demonstrates the company's ability to provide a sufficient amount of profit in relation to the company's current assets used. The higher the value of this coefficient, the more efficiently the circulating assets are used. Calculated by the formula:
Ra = PP / OA for effective management of current assets and informed management decisions when planning current activities, it is important to assess the impact of the main factors on the increase in profitability. Consider the methodology of factor analysis using balance sheet data.
Initial data:
- Current assets (form 1. p. 290);
- Balance sheet profit (form 2. page 140)%
Factor analysis algorithm:
1. values of the profitability of current assets;
2.change overall profitability current assets:
Absolute:
ΔPb = Pb1 - Pb0 (1.9)
ΔRb (BPR) = (BPR1 - BPR0) / OBS0 (1.10)
Let's determine the impact of changes in current assets on the increase in profitability:
Δ Rb (OBS) = BPR1 / OBS1 - BPR1 / OBS0 (1.11)
Based on the above, we will develop an algorithm for analyzing the company's current assets, according to which the calculation will be carried out in the second chapter of the work.
Table 1.1
Algorithm for the analysis of working capital
| Stage | Stage name | Content |
| 1 | Analysis of the structure and dynamics of current assets | Horizontal Analysis, Vertical Analysis |
| 2 | Liquidity analysis | Total liquidity Urgent liquidity Absolute liquidity |
| 3 | Profitability analysis | Profitability of working capital |
| 4 | Turnover analysis | Turnover ratio in turnovers and days, |
| 5 | Factor analysis |
Thus, the efficiency of using working capital is characterized by a system of economic indicators, one of which is the ratio of their placement in the sphere of production and the sphere of circulation. The more circulating assets serve the sphere of production, and within the latter - the production cycle (of course, in the absence of excess inventories), the more rationally they are used.
When forming the working capital of the enterprise, it is necessary to pay attention to the liquidity of the emerging structure of assets. The implementation of production and commercial activities is associated with the movement of material and cash flows. On the one hand, the incoming flows of resources required to fulfill the production program cause an outflow of funds. On the other hand, the sale of manufactured products leads to an inflow of cash. Thus, as a result of the use of circulating assets in the production and commercial cycle at the reporting date, the enterprise develops a certain structure of circulating assets formed to carry out its activities and the obligations opposing them.
The traditional method of analyzing liquidity consists in comparing the assets and liabilities of the balance sheet, aggregated into four groups according to the following principle: assets - according to the degree of decreasing liquidity of the property, liabilities - according to the degree of lengthening of the maturity of obligations. At the same time, to conclude that the balance sheet is liquid, each of the first three groups of assets must be no less than the corresponding groups of liabilities.
Without diminishing the importance of the above approach, we note that it does not always allow making informed management decisions, since the current conditions in which the company operates are not reflected in external financial statements. So, for example, without using additional sources of information, it is impossible to determine the share of doubtful accounts receivable and the consequences of non-payment of accounts payable. In the works of many economists, the need to separate accounts receivable and payable into debts formed in relations with independent counterparties (third-party debt) and formed in relations with counterparties belonging to the same owner as the analyzed enterprise (structural debt) is justified, since in short term structured payables can be attributed to own sources, and structural accounts receivable - to the largest meliquid assets. Taking into account the above, an approach to grouping the assets and liabilities of an organization is proposed, which involves the use of management reporting data (Table 2.1).
Table 1.2
Grouping of assets for the purposes of liquidity analysis based on management reporting data
| Assets | Passive | ||||
| 1 | 2 | 3 | 4 | 5 | 6 |
| Group name | Designation | Asset article | Group name | Designation | Liability clause |
| Most liquid assets | A 1 | Cash, short-term financial investments, structured receivables, promissory notes receivable | Most urgent commitments | P 1 | Accounts payable less structural, advances received, other short-term liabilities |
| Quickly realizable assets | A 2 | Short-term accounts receivable less structural, doubtful and bills receivable, regulatory balances of finished goods and other assets | Short-term liabilities | P 2 | Short-term loans and borrowings, advances received, deferred tax liabilities |
| Slowly realizable assets | A 3 | Stocks minus standard balances of finished goods and illiquid assets, VAT on purchased values | Long-term liabilities | P 3 | Long-term loans and borrowings |
| Hard-to-sell assets | A 4 | Non-current assets, long-term accounts receivable less structural, doubtful accounts receivable and illiquid assets | Permanent liabilities | P 4 | Equity, structured payables |
As you can see from the table. 1.2, detailing the items of the management balance sheet will allow grouping the assets and liabilities of the organization for the subsequent analysis of working capital more adequately to the conditions of economic activity of a particular enterprise.
In the works of economists, it is argued that for the purpose of analysis, stocks of raw materials, materials and finished products should be evaluated at the price of their possible sale, since it is this, and not the cost, that characterizes the amount of potential revenue that allows paying off creditors. As a result of changes in the value of inventory and fixed assets, there is a difference between the amount of assets and liabilities of the enterprise, which in the writings of economists is proposed to include in equity.
The practical experience of specialists makes it possible to assert that the analysis of the liquidity of an enterprise's assets, based on the use of management reporting data, allows analysts to conduct more successful research for the purposes of planning the acquisition of assets and making payments and to make the most correct decisions on managing the company's financial flows.
The most important factor in the influence of working capital on the results of the enterprise is the turnover of working capital.
At the same time, the fundamental factor in the value of the traditionally used turnover indicators (the turnover ratio of working capital, the duration of the turnover and the conditional release or attraction of funds) is the amount of revenue received, which depends not only on the rate of turnover of working capital, but also on the profit included in the proceeds. In the generally accepted practice of calculating the turnover, this fact is not reflected, which does not allow for a comprehensive analysis of the financial results of the organization.
2. ANALYSIS OF USE OF CURRENT FUNDS OF THE COMPANY NJSC "City Bakery No. 2"
2.1 Analysis of the working capital of the enterprise
The main activities of NJSC "City Bakery No. 2" are:
- baking bread;
- bread;
The implementation of activities classified as licensed by law is preceded by the receipt by the company of the corresponding license in the prescribed manner.
The main activity of NJSC "City Bakery No. 2" is the production of three varieties of flour, barley groats, pearl barley, compound feed, semolina.
On the territory of the enterprise there is an administrative building, a weighing station for receiving raw materials, a milling workshop, a cereals, flour and food products workshop, warehouses for storing and selling products, a garage, locksmiths, a canteen, a health center, security.
Let's analyze the use of the company's working capital. Appendix A presents the company's balance sheet.
Table 2.1 shows a horizontal analysis of changes in the company's current assets.
Table 2.1
Horizontal analysis of changes in current assets
| Current assets | Year | Absol. change, thousand rubles | Relates. meas.,% | ||||
| 2012 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | |
| thousand roubles. | thousand roubles. | thousand roubles. | thousand roubles. | thousand roubles. | % | % | |
| Stocks incl. | 9 580 | 9 876 | 10 078 | 296 | 202 | 3% | 2% |
| VAT | 694 | 723 | 745 | 29 | 22 | 4% | 3% |
| Receivables | 6 476 | 6 817 | 7 176 | 341 | 359 | 5% | |
| 30 | 30 | 30 | - | - | 0% | 0% | |
| Cash | 143 | 147 | 151 | 4 | 4 | 3% | 3% |
| Other current assets | - | - | - | - | - | ||
| Total for the section | 16 923 | 17 593 | 18 180 | 670 | 587 | 4% | 3% |
Let's analyze the results obtained.
Figure 2.1 shows the dynamics of changes in the company's current assets.
2012 2013 2014
Figure 2.1- Dynamics of changes in the company's current assets, thousand rubles
As can be seen from the figure, throughout the entire period under consideration, there is an increase in the company's working capital. At the same time, in 2013 the increase was 4% or 670 thousand rubles, and in 2014 - 3% or 587 thousand rubles. In total, the company's current assets at the end of 2014 amounted to 18,180 thousand rubles.
Next, we will analyze the structure of current assets (table 2.2).
Table 2.2
Structure of current assets
| 2012 | 2013 | 2014 | |
| Stocks | 57% | 56% | 55% |
| VAT | 4% | 4% | 4% |
| Receivables | 38% | 39% | 39% |
| Short-term fin. attachments | 0% | 0% | 0% |
| Cash | 1% | 1% | 1% |
| Other current assets | 0% | 0% | 0% |
Figure 2.2- The structure of the company's current assets, thousand rubles
As can be seen from the figure, over the entire period under consideration, the prevailing share in the total value of current assets is occupied by reserves - 57% in 2012, 56% in 2013 and 55% in 2014. In addition, accounts receivable account for a significant share, increasing from 38% in 2012 to 39% in 2014.
Let's analyze the change in individual components of current assets.
Figure 2.3- Elements of current assets, thousand rubles
Let's analyze the dynamics of individual components
Figure 2.4- Dynamics of reserves, thousand rubles
The subsection "Inventories" reflects the balances of assets used as raw materials, materials in the production of products for sale; intended for sale (finished products, goods, goods shipped); used for the management needs of the organization (PBU 5/01). As can be seen from the figure, during the period under review, there is an increase in the company's inventories - by 296 thousand rubles. for 2013 and 202 thousand rubles. for 2014. Excessive stocks lead to unjustified diversion of funds from economic circulation, which ultimately affects the growth of accounts payable and is one of the reasons for the unstable financial situation. A decrease in the proportion of inventories (as was determined earlier - from 57% to 55%) may indicate: a decrease in the increase in the production capacity of the organization; rationality of the chosen economic strategy, as a result of which a significant part of current assets is immobilized in reserves, which may be low. Lack of inventory can lead to a reduction in production and a decrease in the amount of profit, which also affects the deterioration of the financial condition of the enterprise. With this in mind, stocks must be optimal. A decrease in the amount of stocks indicates a decrease in the production potential of the enterprise, the rationality of the chosen economic strategy.
Let's analyze such an element of current stock as cash.
Figure 2.5 shows the dynamics of the company's cash, thousand rubles.
Figure 2.5- Dynamics of the company's cash, thousand rubles.
Cash is a significant part of non-standardized working capital. In the process of circulation, circulating assets inevitably change their functional form, as a result of which the finished finished product is converted into cash. Funds are mainly stored in the settlement (current) account of the enterprise in the bank, since the overwhelming part of settlements between business entities is carried out in a non-cash manner. In small amounts, funds are at the cash desk of the enterprise. In addition, buyers' funds may be in letters of credit and other forms of payment until their expiration. Cash in a certain amount must always be present in the non-standardized working capital, otherwise the company will be declared insolvent.
As can be seen from the figure, funds annually increase by 3% or by 4 thousand rubles.
Next, let's analyze the change in receivables.
Funds in accounts receivable indicate a temporary diversion of funds from the turnover of a given enterprise, which causes an additional demand for resources and can lead to a tense financial state. Accounts receivable may be eligible, i.e. due to the current settlement system, and unacceptable, indicating shortcomings in financial and economic activities. In order to prevent losses and declare the enterprise insolvent, each business entity should strive to reduce the receivables in every possible way.
Figure 2.6 shows the dynamics of accounts receivable.
Figure 2.6- Dynamics of accounts receivable
The figure shows that there is an increase in accounts receivable - by 341 thousand rubles. for 2013 and 359 thousand rubles. for 2014.
2.2 Assessment of the efficiency of using the company's current assets
Let's calculate the duration of one turnover in days.Table 2.3 shows the data for calculating the duration of one revolution.
Table 2.3
Calculation of the duration of one revolution
| 2012 | 2013 | 2014 | |
| Co, thousand rubles | 16 923 | 17 593 | 18 180 |
| T, thousand rubles | 40 173 | 43 197 | 45 470 |
| D, thousand rubles | 360 | 360 | 360 |
| Oh days | 152 | 147 | 145 |
Figure 2.7 shows the duration of one revolution
Figure 2.7- Duration of one revolution
As can be seen from the figure, during the period under consideration, there is a decrease in the duration of the turnover, which is a positive factor in the functioning of the company. With a slowdown in turnover, there is a need for additional involvement of funds in turnover.
Next, we will calculate the asset turnover ratio using the formula 1.2. The turnover ratio shows the number of revolutions made by working capital for the year (half a year, quarter), and is determined by the formula:
Table 2.4 shows the data for calculating the turnover ratio of the company's current assets.
Table 2.4
Calculation of the turnover ratio
| 2012 | 2013 | 2014 | |
| T | 16 923 | 17 593 | 18 180 |
| With | 40 173 | 43 197 | 45 470 |
| NS | 2,37 | 2,46 | 2,5 |
Figure 2.8 shows the dynamics of the turnover ratio of current assets.
Figure 2.8- Dynamics of the turnover ratio
As can be seen from the figure, throughout the entire period under consideration, there is a decrease in the turnover ratio. In 2014, the turnover ratio was 2.5, which means that the working capital made 2.5 turnovers per year. At the same time, this indicator means that for every ruble of working capital, there were 2.5 rubles. products sold. At the same time, an increase in this indicator can be observed in dynamics.
Next, we calculate the load factor of working capital according to the formula 1.3.
Table 2.5 shows the data for calculating the load factor of working capital.
Table 2.5
Calculation of the load factor of working capital
| year 2012 | year 2013 | year 2014 | |
| With | 40 173 | 43 197 | 45 470 |
| T | 16 923 | 17 593 | 18 180 |
| Kz | 0,42 | 0,41 | 0,40 |
Figure 2.9 shows the dynamics of the working capital utilization factor.
Figure 2.9- Dynamics of the working capital utilization factor
As can be seen from the figure, during the period under consideration, there is a decrease in the working capital utilization ratio from 0.42 in 2012 to 0.4 in 2014. Consequently, for 1 ruble of products sold, there are 0.4 rubles. working capital. This indicator indicates an increase in the inefficiency of the use of working capital.
Next, let's calculate the liquidity indicators.
Let's calculate the liquidity ratio:
K ol 2012 = 16 923/14 986 = 1.129
K ol 2013 = 17 593/15 534 = 1.133
K ol 2014 = 18 180/16 079 = 1.131
The figure shows the dynamics of the total liquidity ratio.
Figure 2.10- Dynamics of the total liquidity ratio
As can be seen from the figure, during the period under consideration, the calculated indicator fluctuates. A slight decrease in the indicator in 2014 indicates a decrease in the company's funds that can be used to pay off short-term liabilities. At the same time, it can be concluded that there is a decrease in the value of the company's current assets per 1 ruble of current liabilities.
Let's calculate the quick ratio:
K sl 2012 = (143 + 30+ 6 476) / 14 986 = 0.44
K sl 2013 = (147 + 30 + 6 817) / 15 534 = 0.45
K sl 2014 = (151 + 30 + 7 176) / 16 079 = 0.46
Figure 2.11- Dynamics of the quick liquidity ratio
The quick liquidity ratio shows what funds can be used if the maturity of all or some of the current liabilities comes immediately and it will not be possible to sell the least liquid part - stocks. The recommended value is more than 1. As can be seen from the figure, the ratio does not correspond to the standard value, with all this, during the period under consideration, the indicator grows, which indicates an increase in the funds available to the company, as well as a large amount of short-term liabilities.
Next, let's calculate the absolute liquidity ratio:
Let's calculate the value of the coefficient:
K sl 2012 = 143/14 986 = 0.01
K sl 2013 = 147/15 534 = 0.01
K sl 2014 = 151/16 079 = 0.01
The figure shows the dynamics of the absolute liquidity ratio.
Figure 2.12- Dynamics of the absolute liquidity ratio
As can be seen from the calculations, the value of the indicator is very low, which means the possibility of covering a very low share of short-term debt obligations at the expense of absolutely liquid assets, that is, cash. At the same time, the value of the indicator is much lower normative value... Next, we calculate the rate of return on current assets:
Ra 2012 = 1 762/18 180 x 100% = 9.7
Ra 2013 = 2 077/32 971 x 100% = 6.3
Ra 2014 = 4 715/38 644 x 100% = 12.2
Figure 2.13- Dynamics of profitability of current assets
Return on current assets (RCA) - demonstrates the company's ability to provide a sufficient amount of profit in relation to the used working capital. The growth of the indicator from 9.7% in 2012 to 12.2% in 2014 indicates an increase in the efficiency of using current assets.
Next, we will carry out a factor analysis.
Current assets:
OBS 2013 = 32,971 thousand rubles.
OBS 2014 = 38 644 thousand rubles.
Δ OBS = 5673 thousand rubles.
Balance sheet profit (form 2. p. 140):
BP 2013 = 3472 thousand rubles.
BP 2014 = 4256 thousand rubles.
Δ BP = 784 thousand rubles.
Profitability values of current assets:
Pb0 = 3472/32 971 = 0.105 (10.5%)
Pb1 = 4256/38 644 = 0.11 (11%)
Change in the overall profitability of current assets:
Absolute:
ΔPb = Pb1 - Pb0 = 0.105 - 0.11 = -0.005
Let us determine the impact of changes in the balance sheet profit on the increase in the profitability of current assets:
ΔRb (BPR) = 5673/32 971 = 0.17
By increasing the balance sheet profit by 5673 thousand rubles. current assets increased by 0.17 points, for each ruble of current assets in the reporting period there was more balance sheet profit by 17 kopecks.
Let's determine the impact of changes in current assets on the increase in profitability:
Δ Rb (OBS) = 4256/38 644- 4256/32 971 = 0.11 - 0.13 = - 0.02
Increase in current assets by 5673 thousand rubles. led to a decrease in the overall profitability of circulating assets by 0.02 points, for each ruble of circulating assets due to this there was less balance sheet profit by 2 kopecks.
Calculations clearly show that it is necessary to increase the level of management of circulating assets, while planning for the future, it is more rational to form the structure of circulating assets.
Conclusions on chapter two
3. DEVELOPMENT OF MEASURES TO INCREASE THE EFFICIENCY OF USE OF CURRENT FUNDS OF THE COMPANY
3.1 Measures to improve the efficiency of using working capital
The need for working capital depends on many factors: production and sales volumes; the nature of the enterprise's activities; the duration of the production cycle; types and structure of consumed raw materials; growth rates of production volumes, etc.
An accurate calculation of the enterprise's need for circulating assets should be based on the calculation of the residence time of circulating assets in the sphere of production and the sphere of circulation.
The residence time of circulating assets in the sphere of production covers the period during which the circulating assets are in the state of inventories and in the form of work in progress.
The residence time of circulating assets in the sphere of circulation covers the period of their stay in the form of balances of unsold products, in the form of shipped but not yet paid products, accounts receivable, in the form of funds held in the cash desk of the enterprise, in bank accounts.
The higher the rate of turnover (the total time spent in the sphere of production and circulation), the less the need for circulating assets. The company is interested in reducing the size of its working capital. But this reduction must have reasonable limits, since the working capital must ensure the normal mode of its operation.
When determining the optimal need for working capital, the amount of money is calculated that will be advanced to create production inventories, backlog of work in progress and the accumulation of finished goods in the warehouse. For this, three methods are used: analytical, coefficient and direct counting.
The essence of the analytical, or experimental-statistical method is that when analyzing the available inventory, their actual stocks are adjusted and unnecessary and unnecessary values are excluded.
With the 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 applied at those enterprises that have been operating for more than a year, have formed a production program and organized a production process, have statistical data for past years and do not have a sufficient number of qualified specialists for more detailed work in the field of working capital planning.
The direct account method provides for the calculation of stocks for each element of working capital. This method is used when organizing a new enterprise and periodically updating the need for working capital of an existing enterprise.
General standards for own circulating assets are determined in the amount of their minimum requirements for the formation of stocks of raw materials, materials, fuel, work in progress, deferred costs, finished goods.
The structure of working capital is influenced by a number of factors: the nature of the products produced, the features of material and technical support, the progressiveness of consumption rates, standards for stocks and work in progress, the duration of the production cycle, etc.
One of the main tasks of the enterprise in modern conditions- intensification of production with strict adherence to the principle of resource conservation.
V common system measures to ensure the mode of economy, the main place is occupied by the economy of objects of labor, which is usually understood as a reduction in the cost of raw materials, materials, fuel per unit of production, of course, without any damage to the quality, reliability and durability of the product.
The economic significance of the rational use of working capital is expressed in the following.
- Reducing the specific consumption of raw materials, materials, fuel provides the production of great economic benefits. First of all, it makes it possible to produce more finished products from a given amount of material resources and therefore acts as one of the serious prerequisites for increasing the scale of production.
- The saving of material resources, the introduction of new, more economical materials into production contribute to the establishment in the reproduction process of more progressive proportions between individual industries, to the achievement of a more perfect sectoral structure of industrial production.
- The desire to save material resources encourages the introduction of new technology and the improvement of technological processes.
- Savings in the consumption of material resources helps to improve the use of production capacity and increase social productivity. In itself, a decrease in the unit costs of the past, reified labor means an increase in the productivity of social labor. But the point is not only this - the saving of material resources entails savings in the costs of living labor as well: the relative expenditure of labor for the transportation of materials, their shipment and unloading, for their storage is reduced.
- Saving material resources greatly helps to reduce the cost of industrial products.
- Significantly influencing the reduction of production costs, the saving of material resources has a positive effect on the financial condition of the enterprise.
Thus, the value of the economic efficiency of improving the use and saving of working capital is very high, since they have a positive effect on all aspects of the production and economic activities of the enterprise.
Table 3.1
The main problems and ways to solve them
Thus, in order to improve the efficiency of the management of the financial flow of NJSC "City Bakery No. 2", we will develop measures for the application of the factoring scheme.
Let's graphically represent the diagram.
Figure 3.1 - Factoring scheme
1. A supplier (creditor) who ships products or provides services to a buyer (debtor).
2. A buyer who makes partial payment for goods (services), usually at least 10%.
3. A factoring company (called a factor or an agent), which pays the supplier the remainder for the buyer and notifies the latter that now the rights of claims for payment of the remainder of the payment are transferred to it.
As a rule, a factoring company takes over the work of managing accounts receivable: accounting, monitoring the financial condition and solvency of debtors and other activities. At the same time, only those counterparties with whom the company has established long-standing contractual relations, and the statistics of shipments and payments, are sufficient to be relatively confident in the debtor's solvency. Often, in order to reduce possible risks of non-payment, factoring companies analyze the financial condition of debtors according to their financial statements (we wrote about the documents for processing factoring earlier), but not all buyers will want to provide such data to a third party.
The full range of factoring services includes the management of accounts receivable, coverage of a number of risks (loss of liquidity, credit, inflation, currency), information and analytical services (special programs that allow you to control cash flow, the current state of accounts receivable, payment discipline of buyers, plan daily financial flows companies and generate analytical reports for making management decisions).
Depending on the relationship between the supplier, the buyer and the factoring company, the following main types of factoring are distinguished (these types are not legally prescribed, they are more terminological in nature): with regression or without recourse.
Recourse factoring is a type of factoring in which the supplier is obliged to return the funds to the factoring company in the event that the buyer (debtor) has not fully fulfilled the payment obligations (for the supply and remuneration to the factor) at the time specified in the contract.
On the one hand, recourse factoring is not very interesting for suppliers: in case of insolvency of the debtor (buyer), the losses will ultimately have to be borne by the creditor. On the other hand, the commission of the factor with this type of financing is significantly lower, moreover, the manufacturer does not withdraw its own funds from circulation, which is critical for certain production processes.
Non-recourse factoring is a type of factoring in which a factoring company assumes all the risks of insolvency of debtors. Of course, in this case, the cost of factoring services will be higher (the factor will include in the cost the risks of non-payment), and the requirements for financed consumers will be more stringent.
Let's present the benefits of factoring.
Factoring, in its essence, is a kind of lending to a specific buyer for a specific delivery, with all this unsecured lending, respectively, the risks of covering possible losses due to non-payment of debtors, as it were, are returned, "if something happens", back to the supplier.
It is certainly convenient for a supplier or manufacturer that he receives money immediately upon receipt of a product or service by a consumer. In this case, it doesn't matter who pays: the client or the factor. Thus, there is no leaching of current assets, the risks of cash gaps are minimized. The use of factoring schemes gives the supplier an additional competitive advantage: he, in fact, provides a commodity loan (well, or delivery with payment in installments).
Likewise, it is convenient for the buyer, who can increase the volume of purchases and earn additional marginal income. The combination of these factors results in an increase in both sales and production. In this case, the cornerstone in this scheme is the question: "who will pay for the resources provided by the factoring company?" And here the question is solely of agreements between the supplier and consumers: as a rule, the longer the installment plan, the higher the rate for using the factoring company's money. Usually, in practice, part of the commission is paid by the supplier (and this is regulated at the level of discounts), and part by the buyer (so that there is an incentive not to delay the deadlines for the final payment).
The scheme is complicated by the need to sign a trilateral agreement between the factoring company, the supplier and the consumer (as a rule, the more parties are involved in signing legal documents, the longer it takes).
The upward trend in accounts receivable indicates an unsatisfactory condition internal control for calculations.
In case of non-cash payments, the shipment and payment of goods do not coincide in time. This leads to the appearance of receivables or payables. Part of this debt is in the process of economic financial activities inevitable, for example, with advance and security payments. But a violation of payment and settlement discipline is also possible. For a financial manager, managing a company's debt is one of the most complex operational tasks.
Accounts receivable can be caused by late payments, shortages, waste and embezzlement, damage to valuables. V recent times Late payment of bills for shipped products, work performed and services rendered has sharply increased. This leads to the fact that manufacturers take a significant amount of circulating assets out of circulation for an indefinite period of time. Due to this great importance acquired reserves for doubtful debts, formed from the balance sheet profit. When writing off unclaimed debts from the balance sheet of the enterprise, which were previously recognized as doubtful, the amount of the created reserve in correspondence with accounts for accounting for settlements with debtors is correspondingly reduced. When unspent amounts of reserves for doubtful debts are added to the profit of the year following the year of their creation, the amount of reserves decreases and the amount of taxable profit increases.
In the process of analyzing and managing accounts receivable, the firm should, as a forecast, develop such a flexible system of contracts, which would provide for either prepayment of products (full or partial), or issuance of an interim invoice, or flexible pricing depending on the inflation index. The firm must then assess the impact of these measures on financial results.
The following table shows the implementation plan for a factoring scheme.
Table 3.2
Factoring scheme implementation plan
| Stage | Duration, days | Period | Responsible person |
| Search for a potential partner - a factoring company | 15 | 10.05.2013-25.05.2013 | Director |
| Choosing a potential partner - a factoring company and concluding an agreement | 3 | 25.05.2013-28.05.2013 | Director |
| Starting to use the schema | - | 01.06.2013 | Deputy Economics Directors |
| Evaluation of performance results | - | 31.12.2013 | Director Deputy Economics Directors |
Next, we will calculate the economic efficiency of the proposed measure.
3.2 Calculation of the effectiveness of the proposed measures
According to the company's experts, the application of the factoring scheme, the proposed measures to reduce the level of accounts receivable, will reduce accounts receivable, payments for which are expected more than 12 months after the reporting date by 20% within two years.Table 3.3 shows the calculation of the effectiveness of the factoring scheme.
Table 3.3
Calculating the effectiveness of factoring receivables
| Index | Units | Meaning |
| Accounts receivable | rub. | 7 176 231 |
| The amount of one invoice | rub. | 6 135 |
| Number of days of grace | days | 30 |
| The size of the commission for financing one delivery | rub. | 181 |
| Number of invoices | pieces | 1 198 |
| Factoring costs | rub. | 216 838 |
| Decrease in accounts receivable | rub. | 717 623 |
| Saving | rub. | 500 785 |
CONCLUSION
The object of the study of this course work was the working capital of the NJSC "City Bakery No. 2".
The main activities of NJSC "City Bakery No. 2" are:
- production of cereals, feed mixtures and other consumer goods;
- purchase, drying, storage and processing of grain;
- trade and procurement activities;
- intermediary services for the purchase and sale and exchange of goods, raw materials;
- baking bread;
- wholesale and retail trade.
Main manufactured products:
- bread;
- bakery and confectionery products;
Throughout the period under review, there has been an increase in the company's working capital. At the same time, in 2013 the increase was 4% or 670 thousand rubles, and in 2014 - 3% or 587 thousand rubles. In total, the company's current assets at the end of 2014 amounted to 18,180 thousand rubles. Throughout the period under review, the prevailing share in the total value of current assets is occupied by reserves - 57% in 2012, 56% in 2013 and 55% in 2014. In addition, accounts receivable account for a significant share, increasing from 38% in 2012 to 39% in 2014.
During the period under review, there is an increase in the company's reserves - by 296 thousand rubles. for 2013 and 202 thousand rubles. for 2014. Excessive stocks lead to unjustified diversion of funds from economic circulation, which ultimately affects the growth of accounts payable and is one of the reasons for the unstable financial situation. A decrease in the proportion of inventories (as was determined earlier - from 57% to 55%) may indicate: a decrease in the increase in the production capacity of the organization; rationality of the chosen economic strategy, as a result of which a significant part of current assets is immobilized in reserves, which may be low. There is an increase in accounts receivable - by 341 thousand rubles. for 2013 and 359 thousand rubles. for 2014.
During the period under review, there is a decrease in the duration of the turnover, which is a positive factor in the functioning of the company. With a slowdown in turnover, there is a need for additional involvement of funds in turnover.
Throughout the entire period under consideration, there is a decrease in the turnover ratio. In 2014, the turnover ratio was 2.5, which means that the working capital made 2.5 turnovers per year. At the same time, this indicator means that for every ruble of working capital, there were 2.5 rubles. products sold. At the same time, an increase in this indicator can be observed in dynamics.
During the period under review, there is a decrease in the working capital utilization ratio from 0.42 in 2012 to 0.4 in 2014. Consequently, for 1 ruble of products sold, there are 0.4 rubles. working capital. This indicator indicates an increase in the inefficiency of the use of working capital.
The effective use of working capital largely depends on the correct determination of the need for working capital. The underestimation of the value of working capital entails the instability of the financial situation, interruptions in the production process and a decrease in production volumes and profits.
The effective use of working capital largely depends on the correct determination of the need for working capital. The underestimation of the value of working capital entails the instability of the financial situation, interruptions in the production process and a decrease in production volumes and profits.
The efficient operation of the enterprise is the achievement of maximum results at the lowest cost. Cost minimization is achieved primarily by optimizing the structure of sources for the formation of working capital, i.e. a reasonable combination of own, credit and borrowed resources.
To increase the efficiency of the financial flow management of NJSC "City Bakery No. 2" we will develop measures for the application of the factoring scheme.
Factoring, in the most simple sense, is the sale of receivables, or rather the transfer of agency functions to manage it to a third party. Let us immediately note that factoring is fundamentally different from the assignment of a right of claim under a contract (cession). In the course of cession, the rights of claims are completely transferred to the new party, the counterparty of the contract is changed. In an assignment, the assignment (as a rule, sale) of the rights of claim occurs in unilaterally, that is, the creditor in the simplest case sells the rights of claim (cash, tangible and other assets) to a third party, with all this the consent of the debtor (debtor) is not required. In factoring, as a rule, a tripartite agreement is signed between the supplier, buyers and the factoring company.
The main subjects of the factoring scheme are:
- A supplier (creditor) who ships products or provides services to a buyer (debtor).
- A buyer who makes partial payment for goods (services), usually at least 10%.
- A factoring company (it is called a factor or agent), which pays the supplier the remainder of the buyer and notifies the latter that now the rights of claims for payment of the remainder of the payment are transferred to it.
After a certain time, the buyer pays to the factoring company the rest of the payment, as well as the remuneration for the actually provided installments.
The effectiveness of the use of a factoring system for an enterprise lies in the fact that when a given enterprise ships products to a buyer, it can immediately receive payment from the factor for the shipped goods, without waiting for the settlement period with the buyer. In addition to preventing long-term cash flow gaps, this allows you to increase sales and competitiveness, providing buyers with preferential terms (deferral) of payment for goods under a reliable guarantee. The use of factoring allows you to receive financing up to 90% of the value of the supplied goods.
According to the company's experts, the application of the factoring scheme, the proposed measures to reduce the level of accounts receivable, will reduce accounts receivable, payments for which are expected more than 12 months after the reporting date by 20% within two years.
Thus, the implementation of the proposed measure will allow the organization of NJSC "City Bakery No. 2" to reduce accounts receivable. The savings will amount to 500,785 rubles.
BIBLIOGRAPHY
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Introduction
In this course work I have to consider the topic "Analysis of the working capital of the enterprise." In my opinion, this topic is very interesting and relevant to study.
In my opinion, the relevance of the topic lies in the fact that a qualified economist, financier should know well and subtly understand the manifestations of general, specific and particular economic laws in the practice of his enterprise, timely notice trends and opportunities to improve production efficiency. He must possess modern methods of economic research, the method of systemic, comprehensive economic analysis, the skill of accurate, timely, comprehensive analysis of the results of economic activity.
Improving the mechanism for analyzing the working capital of an enterprise is one of the main factors in increasing the economic efficiency of production at the present stage of development of the domestic economy. In conditions of socio-economic instability and variability of the market infrastructure, an important place in the current day-to-day work of a financial manager is occupied by the management of working capital, since it is here that the main reasons for the successes and failures of all production and commercial operations of the firm lie. Ultimately, the rational use of working capital in conditions of their chronic shortage is one of the priority areas of the enterprise at the present time.
The purpose of the analysis in this course work is to justify and
to propose for the implementation of measures to improve the efficiency of managing the working capital of the enterprise on the basis of the conducted economic analysis.
To achieve the goal, it is necessary to solve the following tasks:
Analyze the dynamics of changes in working capital, their composition and structure for the studied period of time;
Assess the use of the main elements of working capital, which occupy the largest share in the cost of working capital of the enterprise;
Conduct a factor analysis of the main element of working capital;
Analyze the effectiveness of the use of working capital;
Conduct a factor analysis of the use of working capital and its impact on revenue, the level of profitability, as factors for the effective use of working capital.
Research object: the formation of working capital.
Subject of research: analysis of the working capital of the enterprise.
The methodological base for writing a term paper was formed by the methods of financial analysis: horizontal and vertical analysis of financial statements; methods, techniques and tools of mathematical statistics: collection and grouping of data; analysis of the series of dynamics; modern methods of managing the working capital of the enterprise: managing the current financial needs of the enterprise.
The results of my analysis can be used in the current financial activities of the enterprise in order to accelerate the turnover of working capital, reduce their size due to partial release and involvement in repeated circulation, which should contribute to the achievement of a socially significant effect.
When writing the term paper, the data of the accounting and financial statements of the enterprise were used, as well as modern literature on this topic.
1.The concept and the economic essence of working capital
1.1 Concept and functions of working capital
Working capital is one of the constituent parts of the property of the enterprise. The state and efficiency of their use is one of the main conditions successful activities enterprises. The development of market relations determines new conditions for their organization. High inflation, non-payments and other crisis phenomena are forcing enterprises to change their policy in relation to working capital, to look for new sources of replenishment, to study the problem of the efficiency of their use.
One of the conditions for the continuity of production is the constant renewal of its material basis - the means of production. In turn, this predetermines the continuity of the movement of the means of production themselves, taking place in the form of their circulation.
In its turnover, circulating assets consistently take monetary, productive and commodity form, which corresponds to their division into production assets and circulation funds.
The material carrier of production assets is the means of production, which are subdivided into objects of labor and instruments of labor. Finished products, together with cash and funds in the calculations, form circulation funds.
The turnover of enterprise funds begins with the advance payment of value in cash for the purchase of raw materials, materials, fuel and other means of production - the first stage of the turnover. As a result, money takes the form of inventories, expressing the transition from the sphere of circulation to the sphere of production. In this case, the cost is not spent, but is advanced, since after the completion of the circuit it is returned. The completion of the first stage interrupts the circulation of commodities, but not the circulation.
The second stage of the circulation takes place in the production process, where the labor force carries out productive consumption of the means of production, creating a new product that carries the transferred and newly created value. The advanced value again changes its form - from the productive one, it passes into the commodity one.
The third stage of the circulation is the sale of finished products (works, services) and receipt of funds. At this stage, circulating assets are again transferred from the sphere of production to the sphere of circulation. The interrupted commodity circulation is resumed, and the value from the commodity form passes into monetary. The difference between the amount of money spent on the manufacture and sale of products (works, services) and those received from the sale of manufactured products (works, services) is the company's cash savings.
After completing one circuit, circulating assets enter a new one, thereby carrying out their continuous circulation. It is the constant movement of circulating assets that is the basis of an uninterrupted process of production and circulation. An analysis of the turnover of enterprise assets shows that the advanced value not only consistently assumes various forms, but also constantly stays in these forms in certain amounts. In other words, the advanced value at each given moment of the circuit is in different parts at the same time in monetary, productive, commodity forms.
The circulation of funds of enterprises can be carried out only in the presence of a certain advanced value in monetary form. Entering the circuit, it no longer leaves it, consistently changing its functional forms. The indicated value in monetary form represents the current assets of the enterprise.
Working capital acts primarily as a value category. They are literally not material assets, since they cannot be used to produce finished products. Being value in monetary form, circulating assets already in the process of circulation take the form of inventories, work in progress, finished goods. Unlike inventories, circulating assets are not spent, not spent, not consumed, but advanced, returning after the end of one cycle and entering the next.
The moment of advance payment is one of the essential and distinctive features of circulating assets, since it plays an important role in establishing their economic boundaries. The temporary criterion for advancing working capital should not be the quarterly or annual volume of funds, but one cycle, after which they are reimbursed and enter into the next.
The study of the essence of working capital involves consideration of working capital and circulation funds. Working capital, circulating funds and circulation funds exist in unity and interconnection, but there are significant differences between them, which boil down to the following. Working capital is constantly in all stages of the enterprise, while working capital goes through the production process, being replaced by new lots of raw materials, fuel, basic and auxiliary materials. Inventories, being part of the working capital, go into the production process, turn into finished products and leave the enterprise. Revolving assets are fully consumed in the production process, transferring their value to the finished product. Their sum for a year can be tens of times higher than the sum of circulating assets, which ensure the processing or consumption of a new batch of objects of labor and remaining in the economy at each circuit, making a closed circuit.
Revolving funds are directly involved in the creation of new value, and circulating assets - indirectly, through revolving funds.
In the process of circulation, circulating assets embody their value in circulating assets and therefore, through the latter, they function in the production process, participate in the formation of production costs.
If circulating assets were directly and directly involved in the creation of a new product, then they would gradually decrease and by the time the circulation ended, they would have to disappear.
Revolving funds, representing use value, act in a single form - productive. Circulating assets, as noted, not only consistently take various forms, but also constantly in certain parts are in these forms.
The above circumstances create an objective necessity for differentiating the turnover of circulating assets and circulating assets.
Comparison of circulating assets with circulation funds, which are a functional form of circulating assets at the stage of circulation, leads to the following results. The turnover of funds of enterprises ends with the process of selling products (works, services). For the normal implementation of this process, they, along with fixed and circulating funds, must also have circulation funds.
The turnover of circulation funds is inextricably linked with the turnover of working production assets and is its continuation and completion. Making a circuit, these funds are intertwined, forming a general turnover, in the process of which the value of circulating assets transferred to the product of labor passes from the sphere of production to the sphere of circulation, and the value of the funds of circulation in the amount of the advanced value - from the sphere of circulation to the sphere of production. This is how a single turnover is carried out advanced funds passing through different functional forms and returning to the original monetary form. Working capital, making a circuit, from the sphere of production, where they function as circulating funds, go to the sphere of circulation, where they function as circulation funds.
The definition of circulating assets as advanced funds in the created stocks of circulating production assets and circulation funds does not reveal the full economic content of this category. It does not take into account that, along with the advancement of a certain amount of money, there is a process of advancing the value of the surplus product created in the production process into these stocks. Therefore, for profitable enterprises, after the completion of the turnover of funds, the amount of advanced working capital increases by a certain amount of profit. At unprofitable enterprises, the amount of advanced working capital at the end of the turnover of funds decreases due to the incurred losses. Working capital is often identified with cash. Meanwhile, one cannot literally call them money. Funds employed in production and circulation should not be equated with money. The total value is advanced in the form of money and, after going through the process of production and circulation, again takes this form. Cash is an intermediary in the movement of funds. The aggregate value expressed in money turns into real money only at times and in parts.
So, circulating assets represent the value advanced in monetary form for the planned formation and use of circulating production assets and circulation funds in the minimum necessary amounts, ensuring the implementation of the production program by the enterprise and the timeliness of settlements.
The current assets of the enterprise perform two functions: production and settlement. Carrying out a production function, working capital, advancing in working capital assets, maintain the continuity of the production process and transfer their value to the manufactured product. Upon completion of production, circulating assets pass into the sphere of circulation in the form of circulation funds, where they perform the second function, which consists in completing the circulation and converting circulating assets from a commodity form into a monetary one.
The rhythm, coherence and high performance of the enterprise largely depend on its availability of working capital. Lack of funds advanced for the purchase of inventories can lead to a reduction in production, non-fulfillment of the production program. Excessive diversion of funds into reserves in excess of the actual need leads to the deadening of resources, their ineffective use.
Since working capital includes both material and monetary resources, not only the process of material production, but also the financial stability of the enterprise depends on their organization and efficiency of use.
1.2 Sources of formation of working capital
When deciding on the conditions for providing enterprises with the necessary working capital, the peculiarities of the production cycle and the sale of products are taken into account, which determine the nature of changes in the need for funds, as well as the satisfaction of this need at the expense of two sources: own working capital and borrowed funds provided in the form of short-term bank loans. The permanent, irreducible part of the working capital consists of its own funds, and the temporarily increased needs for funds are covered by a loan.
Attention should be paid to the general features and features inherent in own current assets trade enterprises, and borrowed funds, attracted in the form of bank loans. Common to own and borrowed funds is that they form the basis of the firm's assets. Own working capital can be used for numerous successively carried out turnovers.
Borrowed funds are provided to enterprises for a certain period, after which they are subject to return. The provision of a bank loan allows, in particular, to flexibly meet the changing needs for material resources for the formation of commodity stocks, to link the amount of funds provided and the current situation, to monitor compliance with the planned parameters of the activities of trade enterprises.
In addition to their own funds and a bank loan, enterprises have creditors' and other funds in circulation (unspent amounts of various funds, profit and amortization - until they are transferred to their destination, etc.).
All sources of financing of working capital are subdivided into own, borrowed and attracted. Own funds play a major role in organizing the circulation of funds, since enterprises operating on the basis of commercial accounting must have a certain property and operational independence in order to conduct business profitably and be responsible for the decisions made.
The formation of working capital occurs at the time of the organization of the enterprise, when its authorized capital is created. The source of formation in this case ”is the investment funds of the founders of the enterprise. In the process of work, the source of replenishment of working capital is the profit received, as well as equated to own funds, the so-called stable liabilities. These are funds that do not belong to the enterprise, but are constantly in its circulation. Such funds serve as a source of formation of working capital, in the amount of their minimum balance. These include: the minimum rolling debt from month to month on wages to employees of the enterprise, reserves to cover future expenses, minimum rolling debt to the budget and off-budget funds, creditors 'funds received as an advance payment for products (goods, services), buyers' funds for pledges for returnable packaging, carry-over balances of the consumption fund and others.
To reduce the overall need of the economy for working capital, as well as to stimulate their effective use, it is advisable to attract borrowed funds.
Borrowed funds are mainly short-term bank loans, with the help of which temporary additional needs for working capital are satisfied.
The main directions of attracting loans for the formation of working capital are:
Lending to seasonal stocks of raw materials, supplies and costs associated with the seasonal production process;
Temporary filling of the lack of own circulating assets;
Making settlements and mediating payment turnover.
Along with the formation of the system of commercial banks, the growth of commercial credit, the share of credit resources in the structure of sources of formation of working capital of enterprises also increased. Thus, with the transition to a market system of economic management, the role of credit as a source of working capital at least has not diminished. Along with the usual need to cover the excess demand for working capital of enterprises, new factors have emerged that are responsible for the strengthening of the value of bank credit. These factors are primarily associated with the transitional stage of development experienced by the domestic economy. One of them was inflation. The impact of inflation on the working capital of an enterprise is very multifaceted: it has a direct and indirect impact. The direct impact is characterized by the depreciation of current assets during their turnover, i.e. after the completion of the turnover, the enterprise does not actually receive the advanced amount of working capital as part of the proceeds from the sale of products.
An indirect impact is expressed in a slowdown in the turnover of funds due to the crisis of non-payments, largely due to inflation. Other reasons for the emergence of a crisis of non-payments include a decrease in labor productivity; extreme inefficiency in production; inability of individual leaders to adapt to new conditions; look for new solutions, change the product range, reduce the material and energy consumption of production, selling unnecessary and unnecessary assets; and finally, the imperfection of the legislation allowing not to pay debts with impunity.
In order to combat non-payments and provide financial support, significant funds are allocated to replenish the working capital of enterprises. However, the allocated funds are not always used for their intended purpose, which also has a strong inflationary effect.
These reasons determine the increased interest of enterprises in borrowed funds as a source of replenishment of working capital frozen in long-term receivables. In this situation, the question arises of the boundaries of the use of credit as a source of working capital. This issue is associated with the dual influence that the use of credit has on the financial position of the enterprise in general and on the state of working capital in particular.
On the one hand, without attracting credit resources into circulation in the face of a shortage of its own funds, the enterprise needs to reduce or completely suspend production, which threatens with serious financial difficulties up to bankruptcy. On the other hand, the solution of the problems that have arisen only with the help of loans causes an increase in the company's dependence on credit resources due to an increase in loan debt. This leads to an increase in the instability of the financial condition, own circulating assets are lost, becoming the property of the bank, since the enterprises do not provide the rate of return on invested capital, specified in the form of bank interest.
Accounts payable refers to unscheduled attracted sources of working capital formation. Its presence means the participation in the turnover of the enterprise of funds from other enterprises and organizations. Part of the accounts payable is natural, as it follows from the current settlement procedure. Along with this, accounts payable can arise as a result of violation of payment discipline. Enterprises may have accounts payable to suppliers for goods received, to contractors for work performed, tax office on taxes and payments, on contributions to off-budget funds. It is also necessary to highlight other sources of the formation of working capital, which include the enterprise's funds that are temporarily not used for their intended purpose (funds, reserves, etc.).
The correct ratio between own, borrowed and attracted sources of formation of working capital plays an important role in strengthening the financial condition of the enterprise.
2. Analysis of working capital on the example of JSC "NPP Zavod Iskra"
2.1 Brief description of the enterprise OJSC "NPP Zavod Iskra"
JSC NPP Zavod Iskra as the successor of traditions and the successor of the production activities of the Iskra Plant dates back to 1966, when by joint resolution of the Central Committee of the CPSU and the Council of Ministers of the USSR No. 729 on October 01, 1966, a decision was made to build a semiconductor plant Iskra in Ulyanovsk ". By order of the Ministry of Economic Development of the USSR No. 173 of June 1, 1971, the Iskra plant was included in the number of operating enterprises Ministry of the electronic industry of the USSR. Already in 1971, more than a million D-9 semiconductor diodes were shipped to consumers. working capital profitability
With collapse Soviet Union When entire industries ceased their activities in the country, production at the Iskra plant fell sharply. First of all, this affected television technology, the output of consumer goods has significantly decreased. However, despite all the difficulties, the enterprise retained its production and technical potential in all main areas of its activity, retained its personnel potential.
At the end of 2008, on the basis of OJSC Zavod Iskra, a new enterprise was created - OJSC NPP Zavod Iskra, which is the successor of the main types of production activities.
At present, OJSC NPP Zavod Iskra is a part of OJSC Concern PVO Almaz-Antey.
OJSC NPP Zavod Iskra possesses all the necessary set of technological and production processes necessary for the implementation of a closed production cycle of semiconductor devices, from development to serial production.
OJSC NPP Zavod Iskra is one of the leading manufacturers and suppliers of element base for manufacturing enterprises electronic equipment, computers, communications and special-purpose equipment.
Over the past five years, the plant has carried out significant work on the reconstruction of the existing one.The following business areas have been identified at the enterprise:
production of semiconductor devices (powerful bipolar and field-effect transistors, diodes and modules based on them, transistor and thyristor optocouplers);
production of medical corona and gas discharge electrodes;
R&D performance in the interests of the enterprises of the Almaz-Antey Air Defense Concern OJSC and the Ministry of Defense of the Russian Federation.
OJSC NPP Zavod Iskra has developed a strategic program for the development of the enterprise for the period up to 2015, has a clear understanding of the main ways of development. In this he is greatly assisted by the Almaz-Antey Air Defense Concern OJSC, which is interested in mastering the production of the latest electronic devices at the enterprise, both for the needs of the concern and for the entire defense industry of the Russian Federation.
Promising directions in the activities of OJSC NPP Zavod Iskra
OJSC NPP Zavod Iskra develops the following areas of research and production activities:
Development of the basic technology for the production of powerful X-band microwave MIS cases for new generation AFAR transceiver modules.
Development of a basic technology for the production of power diode-transistor modules, including intelligent ones, suitable for surface mounting for high-density secondary power supplies of new generation AFAR transceiver channels.
Development of the basic technology for internal mounting of electronic and microwave modules for X-band AFAR.
2.2 Analysis of the composition and structure of working capital
Distinguish between the composition and structure of working capital.
The composition of working capital is understood as a set of elements that form working capital. The division of circulating assets into circulating production assets and circulation funds is determined by the peculiarities of their use and distribution in the spheres of production and sales.
Revolving production assets include:
Labor items (raw materials, basic materials and purchased semi-finished products, auxiliary materials, fuel, containers, spare parts, etc.);
Labor tools with a service life of no more than one year or a cost of no more than 100-fold (for budgetary organizations - 50-fold) of the established minimum wage per month (low-value wearing items and tools);
Incomplete production and semi-finished products of our own manufacture (objects of labor that have entered the production process: materials, parts, units and products in the process of processing or assembly, as well as semi-finished products of our own manufacture that are not fully completed by production in some workshops of the enterprise and subject to further processing in other workshops the same enterprise);
Deferred expenses (non-material elements of working capital, including the costs of preparation and development new products which are produced in a given period, but are classified as products of a future period; for example, the cost of designing and developing technology for new types of products, for the relocation of equipment).
Circulation funds include:
Enterprise funds invested in stocks of finished products, goods shipped but not paid for;
Cash on hand and in accounts.
The amount of working capital employed in production is mainly determined 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 means of circulation depends mainly on the conditions for the sale of products and the level of organization of the supply and marketing system of products.
The ratio between the individual elements of working capital, expressed as a percentage, is called the structure of working capital. The difference in the structures of the working capital of industries is determined by many factors, in particular, the peculiarities of the organization of the production process, the conditions of supply and sale, the location of suppliers and consumers, and the structure of production costs.
The study of the structure and identification of trends in changes in the elements of working capital serves as the basis for predicting future changes in the composition of working capital.
The results of the analysis of the dynamics of changes in working capital, their composition and structure are shown in Table 1.
Table 1 - Analysis of the dynamics of changes in working capital, their composition and structure, thousand rubles
|
Current assets |
Value for the end of the year, thousand rubles |
Specific gravity,% |
Change in structure,% |
Change in composition, thousand rubles |
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including: |
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Raw materials, materials and other values |
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Costs in progress production (main production) |
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Finished products |
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Future expenses |
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Deb. indebtedness |
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including: |
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buyers and customer. |
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Settlements with suppliers and contractors |
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Calculations for taxes and fees |
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Social insurance calculations |
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Calculations with accountable persons |
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Payments to personnel for other activities |
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Settlements with different debtors and creditors |
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Short-term financial investment (financial attachments) |
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including: |
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Deposit accounts |
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Monetary funds |
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including: |
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Organization cash desk |
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Settlement accounts |
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Other werewolves. assets |
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including: |
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VAT on advances and overpayments |
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With the help of table 1, you can get a number of the most important characteristics of the financial condition of the company "Iskra".
The calculations made allow us to conclude about the overall increase in working capital for the period under study.
Inventory data show that the bulk of the increase in 2010 is comprised of items such as:
Costs in work in progress (main production) by 7.99% or 1,172 tons;
Finished products by 0.57% or by 4138 thousand rubles;
Deferred expenses by 0.03% or 28 thousand rubles.
Accounts receivable as a whole increased due to an increase in arrears on settlements with suppliers and contractors by 3.5% or by 3096 thousand rubles, as well as in connection with settlements on taxes and duties by 11.03% or by 6243 tons. R.
The changes that occurred during the study period in the composition of working capital in 2011 occurred due to the fact that the company made short-term financial investments in the amount of 35,000 thousand rubles. , this is what led to structural changes, which amounted to 35.81% in relation to the total share of all current assets. Increase general composition current assets took place despite structural changes towards a decrease in inventories by 8.69%. Also in 2010, we observe an increase in the share of cash by 11.94% in relation to 2009, but in 2011 it decreased significantly, and its change was 19.58%.
The dynamics of changes in inventories indicates a decrease in their share in the total volume of circulating assets for the three years under study, in 2011 they account for 33.74% of the total amount of circulating assets. As the results of calculations show, no significant changes occurred in the structure of circulating assets for the period under study, which indicates a stable structure of circulating capital and indicates a stable, well-oiled process of production and sales.
2.3 Analysis of the efficiency of using working capital
The efficiency of using the circulating assets of any enterprise is manifested, first of all, in the rate of turnover of its assets. Therefore, the analysis of the efficiency of using the working capital of the enterprise is to study the dynamics, the level of turnover ratios
The turnover ratios (indicators) make it possible to assess the efficiency of using the company's own funds and are expressed in assessing the turnover of the company's assets. The asset turnover indicator reflects how many times during the period the capital invested in the assets of the enterprise is turned over. The profitability of an enterprise directly depends on the rate of turnover of current assets - the higher the turnover of assets, the higher it is and vice versa. Therefore, any enterprise needs to strive to increase the rate of turnover of working capital.
To assess the efficiency of using the working capital of the enterprise, it is necessary to conduct an analysis that allows you to identify how effectively the enterprise uses its working capital. The intensity of the use of current assets is determined by the speed of their transformation into cash, which, in turn, affects the liquidity and solvency of the enterprise.
The rate of turnover of funds depends on:
* the size of the annual turnover;
* minimum required value advanced capital and related payments of funds (interest for using a bank loan, dividends on shares, etc.);
* the amount of costs associated with the possession of inventory and their storage;
* the amount of taxes paid, etc.
A number of indicators are used to analyze the turnover of working capital:
1. The turnover ratio of all current assets:
KO = BP / TAcr, (1)
Вр - proceeds from the sale of products;
TAcr is the average value of current assets
The average value of current assets is calculated using the formula:
TAf 2009 = (TA n.y. + TA k.y.) / 2 = (4912 + 6136) / 2 = 5524 tr.
End year 2009 = 24390/5524 = 4.42
Coq.year 2009 = 99625/5524 = 18.04
TAf 2010 = (TA n.y. + TA k.y.) / 2 = (6135 + 13706) / 2 = 9921 tr.
End year 2010 = 99625/9921 = 10.04
Coq.year 2010 = 119984/9921 = 12.09
TAav. 2011 = (TA n.y. + TA k.y.) / 2 = (13706 + 4520) / 2 = 9113 tr.
End year 2011 = 119984/9113 = 13.17
Coq.year 2011 = 178890/9113 = 19.63
The turnover ratio characterizes the amount of proceeds from the sale of products per 1 ruble. of all circulating assets, the number of revolutions that circulating assets make for the same period. To a large extent, during the periods under study, there was an increase in the turnover ratio, which indicates the effective use of working capital.
2. Coefficient of utilization of funds in circulation:
K3 = TAcr. / BP, (2)
TAcr. - the average value of current assets;
Вр - proceeds from the sale of products
Kzn.year 2009 = 5524/24390 = 0.23
Kz.y. 2009 = 5524/99625 = 0.06
Kn.y. 2010 = 9921/99625 = 0.10
Kz.y. 2010 = 9921/119984 = 0.08
Kzn.year 2011 = 9113/119984 = 0.08
Kz.y. 2011 = 9113/178890 = 0.05
The load factor characterizes the amount of working capital advanced for one ruble of proceeds from the sale of products. The lower the load factor, the more efficiently the working capital is used. From the calculations, we see that the utilization ratio of funds in circulation at the beginning of the period under review was 0.23, later the company took measures to reduce this coefficient. In connection with these changes, since 2010, there has been a decrease in the utilization rate of funds in circulation, although they are insignificant, but evidence of a gradual increase in the efficiency of the use of working capital.
3. Duration of one turnover of working capital:
Tob. = D / KO, (3)
D - the duration of the analyzed period
Tob.n.year 2009 = 365 / 4.42 = 83 days
Tob.c.y. 2009 = 365 / 18.04 = 20 days
Tob.n.year 2010 = 365 / 10.04 = 36 days
Tob.c.y. 2010 = 365 / 12.09 = 30 days
Tob.n.year 2011 = 365 / 13.17 = 28 days
Tob.c.y. 2011 = 365 / 19.63 = 19 days
The duration of one turnover shows the average period for which funds invested in production and commercial operations are returned to economic turnover.
If we analyze 2009, then at the end of the year there were significant changes compared to the beginning, this has a positive effect on the activities of the enterprise and means that the funds invested in operations quickly returned to economic circulation. In 2010, the situation did not worsen much, but in subsequent dynamics we see that the duration of one turnover of working capital decreased every year, which had a positive effect on the efficiency of using working capital.
Savings or cost overruns of working capital can be calculated as follows:
Eob.with. = KzChRevenue (4)
Kz - the difference between K. and K loading n.y.
Kz2009 = 0.06 - 0.23 = -0.17
Eob.s.2009 = (-0.17) H 99625 = - 16936.25 tr.
KZ2010 = 0.08 - 0.10 = -0.02
Eob.s 2010 = (-0.02) H 119984 = - 2399.68 tr.
KZ2011 = 0.05 - 0.08 = - 0.03
Eob.s 2011. = (-0.03) H 178890 = - 5366.7 tr.
The amount of overspending of current assets in 2009 amounted to 16,936.25 thousand rubles. it speaks about the omission of the heads of the relevant departments for the management of working capital, from the view of some of the factors affecting the effective use of working capital. In subsequent years, the overspending decreased compared to the previous year in 2010 by 14,536.57 thousand rubles, and in 2011 by 11,569.55 thousand rubles.
The indicators of the turnover of working capital can be calculated both for all working capital participating in the turnover, and for individual elements. The change in the turnover of funds is revealed by
When the turnover of circulating assets accelerates, material resources and sources of their formation are freed from circulation, and when the turnover slows down, additional funds are involved in circulation.
The results of calculating the turnover ratios are shown in Table 2.
To do this, we calculate the average value of stocks:
ЗЗср. = ЗЗн.г. + ЗЗкг./2, (5)
ЗЗср - average value of reserves;
ЗЗн.г. - stocks at the beginning of the year;
ЗЗкг.- stocks at the end of the year.
ЗЗср. 2009 = 4178 + 17185/2 = 10681.5 tr.
ЗЗср. 2010 = 17185 + 24026/2 = 20605.5 tr.
ЗЗср. 2011 = 24026 + 32983/2 = 28504.5 tr.
DZsr. = DZn.G. + DZ.G. / 2, (6)
ДЗср - the average value of accounts receivable;
ДЗн.г. - accounts receivable at the beginning of the year;
ДЗкг.- accounts receivable at the end of the year.
DZsr. 2009 = 13891 + 9294/2 = 11592.5 tr.
DZsr. 2010 = 9294 + 18517/2 = 13905.5 tr.
DZw. 2011 = 18517 + 22859/2 = 20688 tr.
Table 2 - Calculation of turnover ratios, thousand rubles
|
Indicator name |
Calculation formula |
Yearly values |
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|
Inventory turnover ratio |
Cost / average stock |
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Duration of the 1st turnover (in days) |
Number of days per year / stock turnover rate |
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|
Stock utilization factor |
Average inventory / cost |
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Accounts receivable turnover ratio |
Revenue / average debt |
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Duration of the 1st turnover (in days) |
Days per year / Debt turnover rate |
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|
Receivables loading ratio |
Average debt / revenue |
This table indicates the acceleration of the turnover of circulating assets, which means that material resources and sources of their formation are released from circulation.
The effect of accelerating the turnover of circulating assets is expressed in the release, reducing the need for them in connection with the improvement of their use.
The release of working capital has a number of positive effects:
Production of products takes place at lower costs of working capital;
Material resources are released;
Receipt of deductions from profit to the budget is accelerated.
2.4 Stock analysis
From the calculations performed above, it can be seen that the inventory turnover ratio has been increasing in the dynamics of three years. For a complete analysis of the state of reserves, we will analyze the composition and structure of reserves, the results of the analysis are shown in Table 3.
Table 3 - Analysis of the composition and structure of reserves, thous.
|
Indicators |
Average over the years |
Specific gravity,% |
Absolute deviation |
Growth rate,% |
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Raw materials and supplies |
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Work in progress costs |
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Finished products |
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Future expenses |
Let's analyze the efficiency of using stocks using the method of chain substitutions:
Stocks = cost / average stock (7)
For 2010
KO of stocks2009 = 39270 / 10681.5 = 3.68
KO of stocks 1 = 63976 / 10681.5 = 5.99
Changes in the inventory turnover ratio in 2010 due to an increase in production costs:
Kopas.s / s = 5.99 - 3.68 = 2.31
Changes in the inventory turnover ratio in 2010 due to an increase in inventories:
Stocks. 2010 = 3.10 - 5.99 = - 2.89
The overall change was:
Total = 2.31 + (-2.89) = - 0.58
For 2011
KO of stock2010 = 63976 / 20605.5 = 3.10
KO of stocks 1 = 75256 / 20605.5 = 3.65
KO of stock2010 = 75256 / 28504.5 = 2.64
Changes in the inventory turnover ratio in 2011 due to an increase in production costs:
Kopas.s / s = 3.65 - 3.10 = 0.55
Changes in the inventory turnover ratio in 2011 due to a decrease in inventories:
Stocks. 2011 = 2.64 - 3.65 = - 1.01
The overall change was:
Total = 0.55 + (- 1.01) = - 0.46
Factor analysis of inventory turnover showed that the overall decrease in the turnover ratio in 2010 by 0.58 was due to an increase in the cost of production by 2.31. In 2011, a similar situation, the overall decrease in the turnover ratio was 0.46.
2.5 Factor analysis of the use of working capital
Factor analysis allows you to determine the reasons for growth and the degree of influence of factors on turnover. It is impossible to say unequivocally that the growth or reduction of the factor is positive or negative. It can lead to both positive and negative consequences, therefore this issue is considered in a specific situation. It can only be said with complete confidence that for the turnover rate to grow, it is necessary that the revenue growth rate be higher than the balance growth rate. We will carry out a factor analysis of the efficiency of using working capital by the method of chain substitutions; for convenience, we will draw up the data for factor analysis in Table 4.
To do this, we calculate the average value of the working capital:
OKsr. = OKn.y. + OK.y. / 2, (8)
OKsr - the average value of working capital;
OKn.y. - working capital at the beginning of the year;
OK.G. - working capital at the end of the year.
OKsr. 2009 = 22981 + 50009/2 = 36495 tr.
OKsr. 2010 = 50009 + 56624/2 = 53,316.5 tr.
OKsr. 2011 = 56624 + 97742/2 = 77183 tr.
Table 4 - Data for factor analysis of working capital, thousand rubles
Kob.with = revenue / average turnover of capital (9)
For 2010
COob.s.2009 = 99625/36495 = 2.73
Koob.s. conv. 1 = 119984/36495 = 3.29
Koob. with. 2010 = 119984 / 53316.5 = 2.25
Change in the turnover ratio in 2010 due to an increase in sales proceeds:
Koob. with. .revenue = 3.29 - 2.73 = 0.56
Change in the turnover ratio in 2010 due to an increase in working capital:
Koob. with. 2010 = 2.25 - 3.29 = - 1.04
The overall change was:
Koob. with. obsh. = 0.56 + (-1.04) = - 0.48
For 2011
COob.s 2010 = 119984 / 53316.5 = 2.25
Kob.s.con. 1 = 178890 / 53316.5 = 3.36
Koob.s. 2011 = 178890/77183 = 2.32
Change in the turnover ratio in 2011 due to an increase in sales proceeds:
KO about. with. revenue = 3.36 - 2.25 = 1.11
Change in the turnover ratio in 2011 due to an increase in working capital:
Koob. s. 2011 = 2.32 - 3.36 = - 1.04
The overall change was:
KO ob.s.total = 1.11 + (-1.04) = 0.07
Factor analysis of working capital showed that in 2010 the indicator decreased by 0.48. In 2011, the company managed to increase this indicator, and it was 0.07. This was largely due to an increase in the amount of sales proceeds. Acceleration of the turnover of working capital will allow the enterprise to release 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.
3. Improving the efficiency of using working capital
3.1 Reserves and ways to improve the use of working capital
Acceleration of the turnover of working capital is the primary task of enterprises in modern conditions and is achieved in various ways.
At the stage of creating inventories, these can be:
Implementation of economically justified stock norms;
Expansion of the warehouse logistics system, as well as the wholesale trade in materials and equipment;
Complex mechanization and automation of loading and unloading operations in warehouses.
At the stage of work in progress:
Acceleration of scientific and technological progress (introduction of advanced technology and technology, especially waste-free and low-waste, robotic complexes, rotary lines, chemicalization of production);
Development of standardization, unification, typification;
Improvement of the forms of organization of industrial production, the use of cheaper construction materials;
Improving the system of economic incentives for the economical use of raw materials and fuel and energy resources;
Increase in the share of products in high demand.
At the stage of circulation:
Bringing consumers of products closer to their manufacturers;
Improving the settlement system;
Increase in the volume of products sold due to the fulfillment of orders through direct communications, early release of products, manufacturing of products from saved materials;
Thorough and timely selection of shipped products by lot, assortment, transit rate, shipment in strict accordance with the concluded contracts.
If we talk about improving the use of working capital, one cannot but say about economic significance savings in working capital, which is expressed in the following:
Reducing the specific consumption of raw materials, materials, fuel provides the production of great economic benefits. First of all, it makes it possible to produce more finished products from a given amount of material resources and therefore acts as one of the serious prerequisites for increasing the scale of production.
The desire to save material resources encourages the introduction of new technology and the improvement of technological processes.
Savings in the consumption of material resources helps to improve the use of production capacity and increase social productivity.
Saving material resources greatly helps to reduce the cost of industrial products.
Significantly influencing the reduction of production costs, the saving of material resources has a positive effect on the financial condition of the enterprise.
Thus, the economic efficiency of improving the use and savings of working capital are very high, since they have a positive impact on all aspects of the production and economic activities of the enterprise.
One of the most important components financial planning- calculation of the need for working capital. Determination of the enterprise's need for its own working capital is carried out in the process of rationing, that is, determining the standard for working capital. The main method of rationing is the direct counting method. General standards for own working capital are determined in the amount of their minimum need for the formation of stocks of raw materials, materials, fuel, work in progress, finished goods (goods), deferred expenses and settlements necessary to fulfill the planned volumes of production and sale of products in a timely manner.
In the process of standardizing working capital, two tasks are solved:
1) development and establishment of norms for stocks of all circulating assets for certain types of inventories, expressed, as a rule, in days;
2) development of standards for own circulating assets in general and for each of their elements in monetary terms.
Working capital stock rates have been used for a number of years to calculate annual rates. They are specified for certain types of material assets when compiling annual financial plans in the event of a significant change in the conditions of production, supply and sales.
The norm of the need for working capital of each enterprise is determined by several main indicators:
1) the volume of production and sales of products;
2) the costs of production, storage and sale of products;
3) the norms of the stock of working capital (norms of working capital) for certain types of inventory ...
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Analysis of the composition, structure and dynamics of circulating assets of the organization of OJSC "Mashzavod". Evaluating the efficiency of using working capital, developing measures to improve the efficiency of managing the working capital of the studied enterprise.
thesis, added 03/27/2010
Identification and analysis of the reasons for the decline in the competitiveness of the enterprise based on the study of indicators of the efficiency of the use of working capital. Features of the company's policy in the field of working capital. Ways to optimize working capital.
thesis, added 10/09/2010
The economic essence of working capital, its types, classification and role in providing financial resources enterprises. Analysis of the company's working capital using the example of Reemstma-Kyrgyzstan OJSC, assessment of the effectiveness of their use.
term paper, added 01/14/2014
The concept of working capital, their economic essence, arising from the need to ensure the reproduction process. Indicators of the company's working capital, their composition and structure. Ways to improve the efficiency of using working capital.
term paper added 03/06/2012
Organization of accounting and assessment of inventories and working capital on the example of LLC "Vinogradny". Analysis of the organizational and economic state of the enterprise. Measures to optimize and improve the efficiency of using its working capital.
thesis, added 06/26/2010
Methods of management and planning of the working capital of the enterprise. Legal and regulatory framework for fixed assets accounting. Analysis of the composition and structure of working capital. Assessment of the use of fixed assets of the enterprise OJSC "Almetyevsk bakery".
term paper, added 08/11/2011
Consideration of the structure of the agro-industrial complex of the Republic of Belarus. Analysis of the provision of the enterprise with working capital. Revealing the degree of influence of various factors on the turnover of current assets; measures to improve their efficiency.
thesis, added 04/29/2014
Sources of formation of working capital of the enterprise, rationing and assessment of the effectiveness of their use. Organizational and economic characteristics of Solikamsk RAIPO. Working capital management and measures to improve their use.
thesis, added 05/17/2015
The goals and objectives of the formation and increase of working capital, the classification of their types and methods of analysis. Analysis of the composition, turnover and efficiency of using the working capital of the enterprise. Working capital management problems and ways to solve them.
term paper added 12/24/2013
Elaboration of proposals and implementation of measures to improve the efficiency of the enterprise's working capital management on the example of Shchetovka LLC. Assessment of the state and efficiency of the use of working capital, composition and sources of their formation.
Where to get money for business?
Trade tax or "rent tax
Background Open un contour elba