Analysis of the turnover of current assets of the enterprise. Analysis of current assets turnover. Analysis of turnover and fixed assets: What is it

Conducting an analysis of current assets is the most important area of \u200b\u200banalysis of financial statements, as changes in the dynamics and structure of current assets determine the solvency of the enterprise, its production capabilities, and the demand for this enterprise in the market.

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In addition to the considered financial ratios, an indicator is determined that characterizes the degree of provision with own working capital.

There are two ways to calculate it:

Another indicator that ensures the solvency and liquidity of the enterprise is its working capital, which is defined as the difference between current assets and short-term liabilities. The company has its own working capital as long as current assets exceed current liabilities. In the practice of financial analysis, this indicator is also called net current assets, working capital, working capital.

The financial position of the enterprise, its liquidity and solvency directly depend on how quickly the funds invested in assets are converted into real money. This effect is explained by the fact that the following are associated with the turnover rate of funds:

the maximum required amount of advanced (involved) capital and related cash payments (interest on the use of bank loans, dividends on shares, etc.);
need for additional sources of financing and payment for them;
the amount of costs associated with the possession of inventory and their storage;
the amount of taxes paid, etc.

Different types of assets have different turnover rates.

The duration of the funds in circulation is determined by the combined influence of a number of multidirectional external and internal factors. The first should include the scope of the enterprise (production, supply and marketing, intermediary, etc.), industry affiliation, scale of the enterprise (in small enterprises, the turnover rate is much higher - this is their main advantage). A considerable impact on asset turnover is exerted by the economic situation in the country and the associated economic conditions for enterprises. Thus, inflationary processes and the absence of well-established economic relations with suppliers and buyers in most enterprises lead to the forced accumulation of reserves, which significantly slows down the process of turnover of funds.

The period the funds are in circulation largely depends on the internal conditions of the enterprise, the strategy and the effectiveness of its asset management. Depending on the applied pricing policy, asset structure, methodology for assessing inventory, the company has more or less freedom to influence the duration of the turnover of its funds.

The turnover of funds invested in property is an indicator characterizing the efficiency of working capital management, and can be estimated by the following main indicators:

the turnover rate (the number of turns that the capital of the enterprise or its components make during the analyzed period) and the turnover period is the average period for which the money invested in production and commercial operations is returned to the enterprise. The following formulas are used to calculate turnover ratios:

Information on the amount of revenue is contained in Form 2 “Profit and Loss Statement".

When analyzing the turnover of funds of a trading company, revenue from sales refers to the sale value of goods sold or turnover.

The average value of assets according to the balance sheet is determined by the arithmetic mean formula:

where On n and O to - the value of assets at the beginning and at the end of the period, respectively.

If the analysis is conducted for a period longer than a quarter (six months, a year), a similar method of calculating the average value can lead to significant distortions. A more accurate calculation of the average value of assets will be obtained from monthly data on the status of assets. Then the value of assets is determined by the formula

where 0 „is the value of assets in pth month.

Then the duration of one revolution in days is calculated:

An example of the analysis of the dynamics of indicators of asset turnover for a notional enterprise is given in table. 11.2.

Table 11.2. Dynamics of assets turnover indicators compared to the previous year

Let us analyze the indicators of turnover given in table. 11.2.

Compared to the previous year, the duration of the turnover of current assets increased by 12.7 days, which indicates a deterioration in the financial position of the enterprise (the funds invested in the current assets in the analyzed period go through the full cycle and again take the cash form 12.7 days longer than in the previous year). As a result, additional funds were required to continue production and commercial activities at least at the level of the past year.

We calculate the amount of additional funds raised in circulation according to the formula

Thus, a 12.7-day slowdown in turnover required additional funds in circulation in the amount of 43,932.3 thousand rubles. Since the turnover of current assets in the analyzed year amounted to 2.198, therefore, for the whole year additional funds were raised in the amount of 96 563.1 thousand rubles. (43,932.3 x 2.198). As the analysis of the liabilities side of the balance sheet showed, short-term bank loans became such funds for the enterprise.

To find out the reasons for the decrease in the total turnover of current assets, it is necessary to analyze the changes in the speed and period of turnover of the main types of working capital (inventories, finished goods or goods and receivables). To assess the turnover of goods and receivables, formulas 11.3 and 11.7 are used, when calculating the turnover of inventories and finished products, formulas close to them are used, based on the cost of goods sold (instead of sales revenue):

The average value of reserves is determined by the method already considered:

A more accurate calculation of average inventory is based on data on monthly material balances:

It must be borne in mind that formulas 11.3 and 11.7, being the simplest to calculate (based on financial statements), do not accurately characterize the length of funds spent at the stages of the production and commercial cycle. So, prof. S. B. Bargolts in the proposed system of classification of working capital calls such indicators general or generalizing.

A more accurate calculation of the turnover period of funds invested in specific types of property can be done according to the formula for account mobility prof. Sherra, which was further developed in the works of S. B. Bargolts.

Middle balances here are the arithmetic average of the balances of property or liabilities recorded in a particular account.

Under turnover the value of the credit turnover of a material account for the analyzed period, which is taken from the general ledger (turnover sheet), is understood. Indeed, if we are interested in how long a particular type of property (it doesn’t matter, is it material assets or liabilities of debtors) is taken into account on the balance sheet of the enterprise (i.e., the storage period of inventories or the maturity of receivables), then you need to operate with the amounts “Leaving” the account, that is, reflected on the loan (since debit turnover characterizes the accumulation of property or an increase in customer liabilities).

Formula 11.12 is universal and can be used to determine the turnover period of not only assets, but also liabilities (obligations) of an enterprise. In this case, the average balances of the analyzed passive account (“Settlements with suppliers and contractors”, “Short-term bank loans”) are taken, and the turnover refers to the value of its debit turnover for the period.

So, the passive account turnover period represents the average payable debt maturity at the enterprise. Therefore, for its calculation, it is necessary to take a turnover characterizing the “withdrawal” of the liabilities from the account, ie, debit turnover.

The main advantage of formula 11.12 is that it allows you to evaluate the duration of individual stages of the circulation of funds of the enterprise, while ensuring greater accuracy of the calculations.

Most industrial enterprises are characterized by the following scheme of the production cycle of the movement of funds: the procurement of inventories; production; storage of finished products; implementation.

To determine the real value of the turnover on accounts (net turnover), the amounts on internal turnover associated with the reversal of accounts or the movement on homogeneous accounts (for example, cash accounts) should be excluded.

The value of the turnover ratio of current assets is directly affected by the methodology for their assessment adopted in the accounting policy of the enterprise. The most common method in our country so far has been the estimation of the actual cost of procurement. However, when used in conditions of long-term storage of stocks, which is typical for many enterprises, firstly, the cost of goods sold is underestimated (and, consequently, profit and tax paid from it are overestimated), and secondly, the cost of residual materials is significantly underestimated, which means artificially their turnover is overestimated.

Valuation of inventories at the cost of first purchases (FIFO) leads to the fact that the cost of sales is formed on the basis of the lowest (under inflation) prices for materials, and their balances are estimated at the maximum (market) value. Therefore, the turnover of current assets in this case will be objectively lower than when using the methods for estimating stocks considered earlier.

For the current production and commercial cycle, you can calculate the need for own working capital. To this end, we give an example with the data in table. 11.3 on average balances of current assets.

Table 11.3. Calculation of the need for own working capital

Line number	Indicators	Amount, thousand rubles
	Average advances paid to suppliers
	Average inventory
	Median work in progress
	The average balance of finished products
	Average receivables
	Average amount of receivables, excluding the profit contained in it (24.4%)
	Total average amount of capital invested in current assets (p. 1 + p. 2 + p. 3 + p. 4 + p. 6)
	Average accounts payable balances
	Advances received from customers
	The need for own working capital (working capital) (p. 7 - p. 8 - p. 9)

As follows from the above calculation, for the current volume of activity, equity capital (allocated to working capital formation) of 274,616 thousand rubles is required.

In the table. 11.4, the calculation formulas and recommended trends in turnover ratios are given.

Table 11.4. Calculation of turnover ratios

Index
Working capital turnover	Revenues (non) from sales:: Average over the period value of current assets	Acceleration of turnover - a positive trend
Equity turnover	Revenues (non) from sales: Average for the period amount of equity
Total debt turnover	Revenues (non) from sales:: Average for the period amount of attracted and borrowed capital
Loan debt turnover	Revenues (non) from sales:: Average over the period the amount of debt on loans

When accounting for goods sold on an accrual basis (for shipment), the receivables, in addition to cost, also include profit. The inclusion in the calculation of the amount of invested capital of the amounts of potential profit cannot be recognized as legitimate.
The average percentage of profit in revenue, derived from a specific calculation.

Introduction

Chapter 1. The theoretical foundations of the SOURCES of FORMATION and INCREASING working capital

1.1 Goals and objectives of the formation and increase of working capital

2 Classification and types of sources of formation and increase in working capital

3 Methodology of the effectiveness of sources of formation and increase of working capital

Chapter 2. Management of working capital (for example)

1 Brief economic characteristics of the enterprise.

2 Analysis of current assets turnover

3 Evaluation of the effectiveness of the use of working capital

Chapter 3. improving working capital management

1 Problems of working capital management

2 Ways to solve the problems of working capital management

Conclusion

Bibliography

Glossary

Introduction

Relevance of the research topic: The transition of the economy to market economic conditions strengthens the responsibility of enterprises and associations for the use of financial resources. Enterprises operating in a competitive environment as independent producers are interested in expanding their market segments and generating additional profit. Each of them seeks to clearly navigate the complex interweaving of the market mechanism, to correctly assess production and economic potential, development prospects, and financial stability. In general, the relevance of this study is determined by the needs of developing a theory and improving the practice and efficient use of current assets of the enterprise.

Purpose of work is an analysis of the turnover of current assets, as the most significant organizational and methodological foundations for enterprises aimed at developing and improving production efficiency.

The objectthe research advocated by Golden Fleece Joint-Stock Company.

Subject Research are the theoretical and practical aspects of the analysis of current assets of the enterprise.

The theoretical, practical and methodological foundations of the study are the works of domestic and foreign economists, the main provisions of modern economic theory. Methodological and organizational aspects of the analysis allow the most efficient use of financial resources of the enterprise.

Work structure:

Course work consists of introduction, three chapters, conclusion, list of references and applications.

The introduction reveals the relevance of the chosen research topic, defines the purpose and objectives, subject and object of research.

The first chapter, “Theoretical Foundations of the Analysis of Current Assets,” discusses the concept of current assets, their composition and structure, and the methodology for analysis of current assets.

In the second chapter - “Analysis of the turnover of current assets of JSC“ Golden Fleece ”, an analysis of the composition of current assets, analysis of the turnover of current assets and analysis of the effectiveness of their use.

In the third chapter - "Problems and ways to improve the analysis of current assets turnover, problems are considered and ways to improve the turnover of current assets are proposed.

In conclusion, the main findings of the study are presented.

Chapter 1. The theoretical foundations of the SOURCES of FORMATION and INCREASING working capital

1.1 Goals and objectives of the formation and increase of working capital

Working capital usually called assets (funds) that will be converted into cash during normal operations of the company for a period not exceeding one year.

Current assets enterprises are the mobile assets of the enterprise, which are cash or can be circulated in them during the year or one production cycle.

Working capital - these are financial resources invested in objects, the use of which is carried out by the enterprise either within the framework of one reproduction cycle or within a relatively short calendar period (usually no more than 1 year).

These funds constantly make a circuit in the process of economic activity, changing their form from monetary to commodity and vice versa. Thus, they form the bulk of the cost of production. On the other hand, they are the guarantor of the liquidity of the enterprise, that is, its ability to pay for its obligations. Under the composition of working capital means the totality of the elements that form the working capital assets and funds circulation, that is, their placement on individual elements.

The structure of working capital is the ratio of individual elements of working capital assets and circulation funds, that is, it shows the share of each element in the total amount of working capital.

The predominant part of revolving production assets consists of objects of labor - raw materials, basic and auxiliary materials, purchased semi-finished products, fuel and fuel, containers and container materials. In addition, some of the tools include low-value and quick-wearing items (MBP), tools, special tools, replaceable equipment, inventory, spare parts for current repairs, and special clothing and shoes. These tools operate for less than a year or have cost restrictions. Limits on the value of funds in circulation change periodically, which is associated with ongoing revaluations of fixed assets and the period of their acquisition.

In addition, in enterprises these tools are often in the thousands of items, which technically makes it difficult to take into account their depreciation. Therefore, in practice, they are not assigned to fixed assets, but to revolving funds.

The listed items and tools comprise a group of revolving production assets — inventories. In addition to them, revolving production assets include work in progress and deferred expenses.

The main purpose of the funds advanced in revolving production assets is to ensure a continuous and rhythmic production process.

In addition to revolving production assets, enterprises form circulation funds. These include: finished products in stock; goods shipped; funds at the cash desk of the enterprise and on bank accounts; accounts receivable; funds in other calculations.

The main purpose of circulation funds is to provide resources for the circulation process.

The 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 the production, economic and organizational order. So, in mechanical engineering, where the production cycle is long, the proportion of work in progress is high. At the enterprises of light and food industries, the main place is occupied by raw materials and materials (for example, in the textile industry). At the same time, in the food industry (for example, dairy, butter and cheese), the stocks of auxiliary materials, containers, and finished products are relatively high.

In enterprises where a large number of tools, fixtures, and instruments are used, the specific gravity of low-value and wearing items is high (for example, in mechanical engineering and metal processing).

In the extractive industries, there are practically no stocks of raw materials and basic materials, but the share of expenses for future periods is large. In addition, for example, in the oil industry, an increased share is made up of auxiliary materials, spare parts for the repair of basic backgrounds.

The value of finished products, goods shipped, receivables is influenced by such factors as the conditions of sale of products, the form and condition of accounts.

The main feature of current assets is liquidity, i.e. the speed at which an asset element is converted to cash.

In order of decreasing liquidity, working capital can be classified:

1. Cash.They are the most liquid element of current assets. These include cash on hand, funds in settlement and foreign currency and other bank accounts. They are the most important indicator of the solvency of the organization.

2. Easy-to-sell securities:Companies often invest excess cash in certificates of deposit accepted by banks, bills of exchange, government securities or high-quality securities of large companies, own shares. Such securities should be easily traded, have a short circulation period, and eliminate the risk of loss of the principal amount. The shares of other companies are not classified as current assets because: the value of the shares is subject to significant fluctuations, the shares represent the ownership of the enterprise (not the assets), the owners of the shares receive compensation only after satisfying the requirements of the creditors. Therefore, shares are classified as non-current assets (except for shares of own company).

3. Accounts receivable. A sale of products on credit before receipt of the corresponding amounts is reflected in the balance sheet as accounts of debtors. Liquidity depends on the financial condition of debtors and their business reputation.

4. Bills receivable. Unpaid bills under special agreements on payment for the supply of products and services.

5. Inventories. These include finished products, stocks of raw materials, work in progress.

6. Other current assets. These include short-term investments in shares of other enterprises, life insurance contributions.

Current assets can be classified according to the degree of risk of liquidity loss (Table 1.).

Table 1

degree of risk	working capital groups
1. Minimal risk	easy cash short-term securities
2. Low risk	accounts receivable of enterprises with a normal financial situation, stocks of raw materials and materials (excluding stale), finished goods in stock (mass consumption and in demand)
3. Medium risk	production for technical purposes, work in progress, deferred expenses
4. High risk	DZ of enterprises with a difficult financial situation, finished products, disused; stocks, other illiquid assets

Working capital are classified by their form (by place and role in the reproduction process) :

1) production or material (stocks, work in progress, finished products);

2) payment (cash, etc.).

Consideration of the composition and structure of working capital allows you to touch on such an important problem of organization of working capital, as their rational allocation between the areas of production and circulation.

Establishing the optimal ratio of working capital in production and circulation is important to ensure the implementation of the production program with cash, and is also one of the main factors in the efficiency of working capital use.

According to the degree of planning working capital is divided into standardized and non-standardized. Tangible current assets are standardized, and payment - not standardized.

By sources of formation current assets are divided into own, borrowed and attracted.

In modern economic conditions, enterprises are granted wide rights to dispose of working capital. Working capital is at the disposal of the enterprise and is not subject to withdrawal. Enterprises can sell them and transfer them to other enterprises, organizations, institutions, citizens, lease, provide for temporary use (with the exception of those that are not owned or used by enterprises).

An important problem at the enterprise is ensuring the safety of working capital. In the process of financial planning, it is important to determine the possible presence of surplus or lack of working capital at the beginning of the planning period. For this, the sum of the expected (actual) availability of the company's own working capital at the beginning of the planning period with its total demand for working capital is compiled.

If the planned need exceeds the amount of own working capital of the enterprise, there lack of working capital . Enterprises that have allowed the formation of a shortage of working capital can fulfill it at their own expense and temporarily at the expense of borrowed funds.

If the ratio is the opposite, surplus of own funds , which can serve as a source of financing the growth of working capital.

The lack of working capital may arise as a result of a number of reasons that depend and are not dependent on the activities of the enterprise. The company may not ensure the safety of its own working capital, that is, lose a certain amount by allowing for unplanned losses, illegal diversion of working capital, for example, for the needs of capital construction, loss of profit.

The economic conditions in which enterprises operate have a significant impact on the state of working capital. The increase in prices for acquired inventory leads to the formation of enterprises with a shortage of their own working capital in large quantities. One of the sources of replenishment is a bank loan, which is provided at high interest rates in the conditions of inflation.

The financial policy pursued by the state may impede or stimulate the normal production and financial activities of enterprises, including the rational use of working capital. An important role in this is played by the tax policy of the state. Thus, the assignment of a number of taxes to the cost of production (work, services), especially the payment of VAT to the budget, advance payments of income tax lead to the diversion of working capital of enterprises to non-production costs. This forces enterprises to resort to loans at high interest rates, to look for unplanned sources of funds, and to violate financial discipline. The diversion of working capital leads to a slowdown in their turnover, reduces the efficiency of the enterprise, worsens its financial condition.

The organization of working capital of an enterprise necessarily includes systematic monitoring of their safety and efficiency of use through audits and examinations based on statistical data, operational and accounting reports.

1.2 Classification and types of sources of formation and increase of working capital

The organization’s fixed assets are fully consumed in each production process, completely transfer their value to the finished product and change their natural form. Classification of working capital assets:

Working capital in inventories:

a) raw materials, basic materials;

b) purchased semi-finished products;

c) supporting materials;

d) fuel;

e) packaging and container materials;

f) spare parts for maintenance;

g) low-value and rapidly wearing out household equipment and tools.

Revolving funds in the production process:

a) work in progress;

b) the cost of developing new products;

c) semi-finished products of their own manufacture.

Raw materials are the subject of labor for the extraction or production of which labor has been expended. Raw materials are, for example: ore, cotton. Materials are objects of labor that have already undergone industrial processing, such as rolled metal. Products are made from basic materials, they form its main material content.

Semi-finished products - labor products that have passed one or several stages of production, but require further processing or assembly.

Containers and container materials - represent all types of packaging and materials necessary for their manufacture. Work in progress is objects of labor that are being processed or awaiting further processing and not yet included in the finished product.

The composition, structure and cost of working capital of various associations (enterprises) are different, since they depend on the nature and volume of products, the duration of the production cycle, the degree of mechanization and automation of production.

The enterprise not only produces products, but also sells them, therefore, in addition to working capital assets, it also has circulation funds. The circulation funds include finished products at the enterprise’s warehouse, cash at the cash desk and on the current account at the National Bank, as well as in incomplete settlements for shipped products.

The sum of working capital assets and circulation funds in monetary terms is the working capital of the enterprise. All property of the enterprise can be divided into:

Immobilized assets (1 section of the balance sheet)

Mobile assets (section 2 of the balance sheet), which include stocks, cash, receivables, etc.

The stability of the financial situation of the enterprise to a large extent depends on the feasibility and correctness of investments of financial resources in assets. The structure of household assets largely depends on the type of activity of the enterprise.

Section 2 of the balance sheet “Current assets” combines different items, including current assets (current assets). In the composition of current assets are distinguished:

Stocks (including raw materials, materials, IBE, finished products, goods shipped, etc.).

VAT on purchased assets.

Short-term and long-term receivables.

Short-term financial investments.

Cash (including cash, current account, foreign currency account, etc.)

Other current assets.

For the purposes of an in-depth analysis, it is advisable to group all current assets by risk categories. For example, there is a greater likelihood that accounts receivable will be easier to realize (convert to cash) than work in progress or deferred expenses. In this case, the scope of one or another type of working capital should be taken into account. Assets that can be used only for a specific purpose have a greater risk (less likely to be realized) than multi-purpose assets. The more funds invested in assets that fall into the category of high claims, the lower the liquidity of the enterprise.

Risk degree	Current assets group
Minimum	Cash, marketable short-term securities
	Accounts receivable from enterprises with a normal financial position + inventories (excluding stale) finished goods in demand
	Industrial and technical products, work in progress, deferred expenses
	Accounts receivable from enterprises in financial distress, inventories of finished products, obsolete stocks, illiquid assets

In the development of the above analysis, it is advisable to assess the trend of changes in the ratios of hard-to-sell assets and total assets, as well as hard-to-sell and easy-to-sell assets. The tendency of these ratios to growth indicates a decrease in liquidity.

When conducting such an analysis, it should be remembered that the classification of current assets into difficult to sell and easy to sell can not be constant, but changes with the change in specific economic conditions. For example, in conditions of instability in the supply and depreciation of the ruble, enterprises may be interested in investing money in inventories and other types of inventories, market prices for which are growing steadily, which gives reason to classify the assets of this group as easily tradable.

There are more serious negative consequences of such a significant amount of hard-to-sell assets on the balance sheet of the enterprise. This so-called dead capital slows down the turnover of funds in the enterprise and, therefore, reduces the efficiency of its activities. Often at our enterprises, the drop in profitability indicators is largely determined by the presence and growth of the share of hard-to-sell assets.

Finally, the hard-to-sell assets reflected in the composition of individual elements of current assets distort the true picture of the liquidity of the enterprise, misleading its management and business partners. The situation is aggravated by the fact that many of our enterprises have significantly weakened control over the safety of inventory items. An often formalized inventory does not allow the head of the enterprise and its accounting department to draw up an objective picture of the availability and preservation of material values.

The turnover of inventories characterizes the speed of movement of material assets and their replenishment. The faster the turnover of capital deposited in stocks, the less capital is required for a given volume of business operations.

The turnover of inventories in industries varies greatly. In industries with a long production cycle, inventory requires larger capital.

The turnover periods of inventories of enterprises of the same industry, as a rule, characterize how successfully they use capital. As it was clarified earlier, the accumulation of reserves is associated with a very significant additional outflow of funds, which makes it necessary to assess the possibility and expediency of reducing the shelf life of material assets. The fall in the purchasing power of money forces enterprises to invest temporarily surplus funds in stocks of materials. In addition, the accumulation of stocks is often a necessary measure to reduce the risk of not supplying (short supply) of raw materials needed for the production process of the enterprise. We note in this regard that an enterprise that focuses on one main supplier is in a more vulnerable position than enterprises that build their activities on contracts with several suppliers.

At the same time, it should be borne in mind that the policy of stockpiling of inventory holdings inevitably leads to an additional outflow of funds, due to:

Ø increase in costs arising from ownership of stocks (rental of storage facilities and their maintenance, costs of moving stocks, property insurance, etc.);

Ø increase in costs associated with the risk of losses due to obsolescence and deterioration, as well as theft and uncontrolled use of inventory items; it is well known: the longer the volume and duration of storage of property, the weaker (more difficult) control over its safety;

Ø increase in the amount of taxes paid. In the context of inflation, the actual cost of inventories (the amount written off to cost) is significantly lower than their current market value. As a result, the amount of profit is "bloated", but it is from it that the tax due to be paid will be calculated. The same is true for value added tax. The fact that with the increase in stocks increases the value of the property tax, probably does not require explanation;

Ø diversion of funds from circulation, their "necrosis". Excessive reserves stop the movement of capital, violate the financial stability of the activity, forcing the management of the enterprise to urgently seek the funds necessary for current activities (usually expensive). Therefore, not without reason, excessive inventories are called the "business cemetery." These and other negative consequences of stockpiling policies often completely block the positive effect of savings from earlier purchases.

Significant cash outflows associated with the costs of forming and storing stocks make it necessary to find ways to reduce them. In this case, of course, we are not talking about minimizing the cost of creating and maintaining inventory of inventories. Such a solution would most likely prove to be ineffective and lead to an increase in losses of a different kind (for example, from spoilage and uncontrolled use of inventory items). The challenge is to find a middle ground between excessively large stocks that can cause financial difficulties (cash shortages) and excessively small stocks that are dangerous to production stability. Such a problem cannot be solved under conditions of spontaneous formation of reserves; an established system of control and analysis of the state of stocks is necessary.

In theory and practice of inventory management, the following main features of an unsatisfactory resource control system are distinguished:

Ø The tendency to a constant increase in the duration of stock holding continuous growth of stocks, significantly outstripping the dynamics of increasing the volume of products sold;

Ø frequent streaks of equipment due to lack of materials; lack of storage space;

Ø periodic refusal of urgent orders due to a shortage (absence) of inventories;

Ø large amounts of write-offs due to the presence of outdated (stale), slowly turning stocks;

Ø significant amounts of write-offs of reserves due to their spoilage and theft. The main objectives of control and analysis of stock status:

Ø ensuring and maintaining liquidity and current solvency; reduction of production costs by reducing the cost of creating and storing stocks; reduction of losses of working time and equipment downtime due to lack of raw materials;

Ø prevention of spoilage, theft and uncontrolled use of material assets.

1.3 Methodology for the effectiveness of sources of formation and increase of working capital

current assets management

The main purpose of the analysis - timely identification and elimination of deficiencies in working capital management and finding reserves to increase the intensity and efficiency of its use. And also: identification of factors affecting indicators of turnover and the duration of one period, a quantitative measurement of their impact; determination of the impact of working capital turnover on the financial condition of the enterprise

Horizontal analysis current assets - This is the study and comparison of each indicator of current assets with the previous period in order to assess the absolute and relative changes. Horizontal analysis based on three analytical procedures:

Aggregation of balance indicators in the analytical balance and calculation of the absolute values \u200b\u200bof enlarged articles. For example, unencrypted items: inventories, cash, or all receivables (long-term and short-term).

· Calculation of analytical indicators for each enlarged or ordinary article: absolute and relative changes in indicators, basic and chain growth and growth, depending on the purpose of the analysis.

Identification of the main patterns and trends in the change in the property status of the enterprise, the factors that caused them and the forecast of the prospects for its strengthening.

During the analysis and diagnosis of the property status of the enterprise, the following interpretations of the ratio and change of indicators are possible:

1. The increase or decrease in the property of the enterprise (non-current and current assets) indicates an increase or decrease in the production potential of the enterprise, its activities.

2. Violations of the proportional share of non-current and current assets, as well as own and borrowed sources of their formation in the absolute change in property may cause structural changes in its composition, which in turn is a result of imbalances in the implementation of various activities and, as a consequence, will change the state financial stability of the enterprise.

The increase in accounts payable should be accompanied by a corresponding increase in accounts receivable and cash.

Vertical analysis current assets - this is the definition of the structure of current assets, that is, the allocation of the specific weight of individual articles of current assets in the total indicator, balance sheet currency, the definition of structural changes. The structure of working capital reflects the specifics of the operating cycle.

Analyzing the structure of current assets, it should be borne in mind that the stability of the financial condition largely depends on the optimal allocation of funds stages of the circuit process: supply, production and marketing of products. The amount of capital investment in each stage of the circuit depends on the industry and technological characteristics of enterprises. So, for enterprises with material-intensive production, a significant investment of capital is required in inventories, for enterprises with a long production cycle - in work in progress, etc.

Vertical analysis based on four analytical procedures:

· Aggregation of balance indicators in the analytical balance and calculation of the absolute values \u200b\u200bof enlarged articles as well as in horizontal analysis.

· Calculation of indicators of the structure of current assets in the context of types of funds and sources of their formation.

· Calculation of deviations in the structure of current assets for the compared periods.

· Identification of the main trends and patterns in the change in current assets, the factors that caused them and the forecast of the prospects for its strengthening.

The increase in the proportion of current assets in the property determines the acceleration of asset turnover of the enterprise and vice versa; an increase in inventory and costs in current assets leads to a slowdown in the turnover of current assets, and an increase in the share of cash and short-term financial investments leads to its acceleration. An increase in the share of receivables with a decrease in the share of tangible working capital indicates the actual immobilization of tangible working capital from the production process and a drop in its volume.

An increase in the share of fixed assets with a simultaneous increase in the share of inventories and work in progress indicates an increase in the production base of the enterprise and, at the same time, with a significant increase in the latter (NP), an irrational economic strategy, due to which a significant part of working capital is concentrated in the least liquid form.

An increase in the share of financial investments determines the trend towards the development of financial activities along with production (with insignificant fluctuations in the share of cash and inventories) or due to the curtailment of production (with their reduction).

Vertical analysis of material working capital allows you to characterize the type of activity of the enterprise. Trading enterprises lack stocks of materials and work in progress, with a large volume of goods for resale and goods shipped. Service providers, as a rule, do not have inventories and finished goods as part of their property, and current assets are represented by a significant share of receivables and deferred expenses.

The increase in the share of equity in the sources due to the redistribution of the specific gravities of any other source indicates the strengthening of the financial independence of the enterprise.

An increase in the share of retained earnings can be considered as a source of replenishment of working capital and a decrease in the level of short-term debt as part of the sources of their formation.

The main rule of vertical analysis is to observe the proportion: the ratio of the shares of current assets and non-current assets should be greater than the ratio of the shares of borrowed and own funds.

Coefficient Analysis - this calculation of relative financial indicators, based on the absolute indicators of current assets, is the ratio of interrelated units.

Indicators of business activity allow us to assess the financial situation of the enterprise from the point of view of solvency: how quickly the funds can turn into cash, what is the production potential of the enterprise, is its capital and labor resources efficiently used, how does the company use its assets to generate income and profit.

Chapter 2. Management of working capital (for example, JSC Golden Fleece)

1 Brief economic characteristics of the enterprise

Joint Stock Company Golden Fleece is a specialized enterprise for the production of fine-wool fine-combed yarn.

The company was commissioned in December 1977.

The building area is 17.13 hectares, the area of \u200b\u200bthe main building is 6 hectares.

The number of employees is 1730 people.

The capacity of the enterprise is 42.9 thousand spindles.

Production - 4,500 tons of yarn per year.

The main types of products: combed fine yarn from No. 20 to No. 40 from Kyrgyz merino wool; from No. 45 and above from the Australian merino wool.

General information about the enterprise

· Location: Bishkek city;

· Branches: in the cities of Bishkek, Karakol and Osh;

· The main banker: AOOT Kairat Bank;

· Number of employees and employees: 50 people;

· Form of ownership: 100% private ownership.

· Regions of activity, taking into account the possibilities of delivery: Uzbekistan, Kazakhstan, Southern regions of Kyrgyzstan.

The mission of JSC "Golden Fleece" -to contribute to the development of market relations in the domestic textile industry, through the production and production of competitive in the world market high-quality textile products of a wide range based on the introduction of high technologies.

Organizational management structure of JSC "Golden Fleece"as can be seen in Fig. 1, it has not only horizontal, but vertical connections.

Figure 1. Management structure of JSC Golden Fleece

· The organizational structure presented above (Fig. 4) has a fairly extensive system for this enterprise, given its financial resources and capabilities.

Basic goals and directions company activities:

1) Increased production (not less than 25%) of high-quality export-oriented and high-quality products;

2) To expand the wholesale and retail sale of textile products;

) A systematic study of demand and the expansion of the range of products certified according to international standards - up to 50 items;

) To take a wide part in exhibitions of the textile industry;

) Implement and implement profitable and cost-effective investment projects in the above areas of the enterprise;

) Carry out appropriate activities to advertise products;

) Systematically implement an action plan for the organization of training and advanced training and work experience of employees and specialists.

Having modern equipment and highly qualified staff, the enterprise can produce high-quality yarn using Kyrgyz and Australian wool. Zolotoe Fleece is an exporter of finely woolen finely combed yarn, industrial waste, etc.

Table 1

Characteristics of the structure and dynamics of property (current assets)

Indicators			changes +, -
1. The property of the enterprise in total:
of which: 1. Working capital in% of property
1.1. Cash and short-term securities
in% to current assets
1.2. Funds in the calculations
in% to werewolf. means
1.3. Tangible working capital in% of working capital

table 2

Characterization of the structure and dynamics of property (non-current assets)

Indicators			changes +, -
2. Fixed assets and non-current assets
in% of property
2.1. Fixed assets
in% of property
% to non-mobile wed
2.2 Capital invested.
in% of property
% to non-mobile wed-you
2.3 financial investments
in% of property
% to non-mobile wed
2.4. Settlement founders as% of non-mobile funds as% of property			1531 -18.7 -3,49

Fixed assets and non-current assets in 2011 amounted to 20% of the value of all property, in 2012 their share increased by 1.7%, while reducing the cost by 12.74 thousand soms, the proportion of fixed assets in the property of the enterprise increased from 10, 4% to 14.1%; In 2012, 7 units of the new TS-72 spinning machines were installed in the spinning workshop, and the TsMPP (saw headset) was hauled on 16 card machines in the carding workshop. The double distillation technology of ART was introduced in the mixed shop. Dismantled old equipment. All this contributed to increasing the production capabilities of the factory and allowed to improve the quality of products.

2.2 analysis of the turnover of current assets

To formulate the strategy of the company, it is necessary to conduct a financial analysis.

Analysis of the financial situation and the results of economic activity of JSC “Golden Fleece” was carried out according to the annual reports for 2011-2012.

The structure and dynamics of sources of funds of JSC "Golden Fleece" is characterized by the data below in table 2.

table 2

The structure and dynamics of sources of funds of the enterprise

INDICATORS
1. Total sources of funds
of which: 2. Own funds, enterprises
in% of the total amount of sources
3. Borrowed funds
in% of the total amount of sources
3.1 Short-term loans and borrowings
in% to borrowed funds
3.2. Accounts payable
in% to borrowed funds
3.3. Long-term loans and borrowings
in% to borrowed funds

Borrowings make up the largest share in the liabilities of the factory in 2011, 87.8%, in 2012 - 85.2%, the largest share in the structure of borrowed funds accounts for accounts payable 81.7% and 71.6%, respectively. and in the composition of the latter 28.9% are unpaid bills of suppliers. The share of short-term loans and borrowings increased over the period under review from 12 to 15%. The share of long-term bank loans in borrowed funds is a small amount of 6.5% in 2012 compared to 4.8% in 2011, which indicates a small proportion of funds allocated for the development of the factory’s production potential.

The factory’s own funds decreased over the period under review by 370 thousand soms, due to a decrease in special-purpose funds, in the structure they accounted for 12% in 2011, and 15% in 2012.

Analysis of the financial stability of the factory by the ratio of the cost of material circulating assets and the value of own and borrowed sources of their formation is presented by the data shown in table 3.

Table 3

Financial stability analysis

Over the period under review, fixed assets and non-current assets exceeded sources of equity, i.e. the factory did not have its own funds. In 2012, despite significant reductions in the total amount of reserves and an increase in short-term loans, there was a shortage of the total amount of the main sources of formation of reserves and costs in the amount of 5621 thousand soms, which indicates a financial crisis.

The most general indicator of financial stability is the surplus or shortage of sources of funds for the formation of stocks and costs, obtained in the form of a difference in the value of sources of funds and the value of stocks and costs. This refers to the security of certain types of sources (own, credit and other borrowed), since the sufficiency of the sum of all possible types of sources (including short-term payables and other liabilities) is guaranteed by the identity of the outcome of the asset and the liability of the balance sheet.

To characterize the sources of formation of reserves and costs, several indicators are used that reflect the different degree of coverage of different types of sources: the availability of working capital equal to the difference in the value of sources of own funds and the value of fixed assets and investments (Table 4):

Table 4

Indicators for varying degrees of coverage of different types of sources

Index
Working capital

The main sources of formation of stocks and costs	2960 = -1294+4254	4696 = -390 + 5086
The main sources for the formation of stocks and costs
Own and long-term borrowed sources of formation of reserves and costs

The presence of own and long-term borrowed sources of formation of reserves and costs, obtained from the previous indicator by an increase in the amount of long-term loans and borrowed funds.

The total value of the main sources of formation of reserves and costs, equal to the sum of the previous indicator and the value of short-term loans and borrowed funds (to which in this case loans that are not repaid on time are not connected).

Three indicators of the availability of sources of formation of reserves and costs correspond to three indicators of the security of reserves and costs of sources of their formation:

surplus (+) or shortage (-) of working capital:

surplus (+) or shortage (-) of own and long-term borrowed sources of reserves and costs

surplus (+) or lack (-) of the total value of the main sources for the formation of reserves and costs

Receiving payments from debtors is one of the main sources of funds for the enterprise

The shortage of cash in the economy forced companies to change the terms of sales of their products, which, in turn, changed the previously existing relations with customers and the practice of receiving money and required enterprises to develop a new policy for providing loans and collection

The heterogeneous effect of inflation on different groups of goods complicated the coordination between the procurement policy and the sales policy, which gives additional importance to the implementation of effective collection procedures.

Accounting for the real costs or benefits of credit decisions can be used as a tool to expand profits and increase the turnover of current assets.

The structure of the value of the property of JSC "Golden Fleece" reflects the characteristics of the production profile of the company. The largest share falls on the share of working capital; over the period under review, the share of working capital increased mainly due to the growth of receivables, which is close to half the value of all working capital. Accounts receivable growth: occurred due to unpaid clearing supplies. Material circulating assets decreased by more than half in absolute amount and by almost 22% in specific gravity, a consequence of this change in structure was a sharp decrease in volume, production 56.7% of the 2011 volume (excluding inflation factors).

2.3 assessment of the effectiveness of the use of working capital

The liquidity of the enterprise is significantly affected by the loan term.

To characterize the balance sheet liquidity, we define the general, intermediate, and absolute liquidity ratios; the overall balance sheet liquidity ratio in 2011 and 2012 remained at the same level of 0.9 and indicates non-balance sheet liquidity, i.e. available liquid funds do not cover the debt of the enterprise, - the intermediate liquidity ratio indicates that the factory can repay 50% of its obligations by collecting receivables and available cash.

Table 5.

Liquidity Analysis of JSC Golden Fleece

Indicators			changed. [+ -)
Current assets:
1. Stocks and costs
2. Cash, settlements and other assets from them: Cash

Enterprise Debt
Total balance sheet liquidity ratio
Ratio of accounts payable and receivable
Absolute balance sheet liquidity ratio
Autonomy ratio

The effectiveness of the functioning of the enterprise depends on its ability to bring the necessary profit. There are some ratios of indicators necessary for the normal functioning of the enterprise. So, the cost of production should be in a satisfactory ratio to the volume of sales, revenue - in an acceptable ratio to invested capital, etc. These ratios largely determine the basic value criteria of a profitable enterprise. Based on the analysis of the current state of such criteria and emerging trends in their changes, measures are developed that are necessary to stabilize favorable trends or, conversely, to eliminate adverse ones.

In the general case, profitability is understood as the ratio of profit received for a certain period to the amount of capital invested in an enterprise.

Depending on the direction of investment, as well as forms of raising capital, there are and use various indicators of profitability. (Table 2.1)

Table 2.1

Profitability indicators

Depending on the direction of investment, as well as forms of raising capital, there are and use various indicators of profitability. In 2011, this indicator was 26%, and in 2012 - 29.8%, hence the absolute changes are 3.8%.

Capital investors (shareholders) invest their funds in the company in order to profit from investments, therefore, from the point of view of shareholders, the best assessment of the results of economic activity is the presence of profit on invested capital. The rate of return on capital invested by shareholders (owners), also called the return on equity, is determined by the formula:

The considered profitability indicators characterize one approach to assessing the effectiveness of a company: they indicate the profitability of capital investments in a particular enterprise.

If the enterprise is focused on the future, then it is necessary to develop an investment policy.

The calculated ratios and relative indicators according to the annual balances of JSC "Golden Fleece" are given in table 2.2.

Table 2.2

Calculation of coefficients and indicators

Indicators	Absol Change		Norm impression
Autonomy ratio
Coef. dependence of equity on financial stability liabilities
The ratio of mobile and non-mobile means
Maneuverability coefficient			>= 0,5
Coef. production property
Coef. equity provision

Coef. working capital dependency
Coef. absolute liquidity
Coef. current: liquidity (coverage ratio)
Total liquidity ratio
Ratio of retained earnings to production costs
Coef. real value of fixed assets in the property of the enterprise
Return on assets in%		industry special
Return on equity in%
Profitability (profitability) of the authorized capital in%
Cost of sales in%
Profitability of production in%
Inventory turnover
Inventory turnover in days
Working capital turnover
Working capital turnover in days

The financial position of the enterprise, its liquidity and solvency, directly depends on how quickly the funds invested in assets turn into real money.

Financial stability ratio, characterizing the dependence of equity on liabilities in 2011 amounted to 7.2, and in 2012 5.8 i.e. there was a decrease of 1.4 points for each som of own funds, the factory uses 5.8 som of borrowed funds in its turnover, which far exceeds the critical value of this indicator and indicates a loss of financial independence.

Autonomy ratioshowing a share of equity in total of only 15 % of the total amount of sources.

The coefficient of dependence of current assets from liabilities has a negative value and indicates the excess of accounts payable over the total amount of working capital.

The duration of the funds in circulation is determined by the combined influence of a number of external and internal factors. Among the first should include the scope of the enterprise, industry affiliation, the scale of the enterprise and several others. The economic situation in the country and the associated economic conditions of enterprises have no less impact on asset turnover. Thus, inflationary processes and the absence of well-established economic relations with suppliers and buyers in most enterprises lead to the forced accumulation of reserves, which significantly slows down the process of turnover of funds.

It should be emphasized that the period the funds are in circulation is largely determined by the internal conditions of the enterprise, and primarily the effectiveness of its asset management strategy. Indeed, depending on the applied pricing policy, asset structure, and inventory valuation methodology, an enterprise has more or less freedom to influence the duration of its assets turnover.

Turnover ratio in 2011 amounted to 345 tons som, and in 2012 - 289 tons. It follows that the absolute changes are 56.t. som.

· Monitor the status of settlements with customers on deferred (overdue) debts;

· If possible, focus on a larger number of buyers in order to reduce the risk of non-payment by one or more large buyers;

· Monitor the ratio of receivables and payables: a significant predominance of receivables poses a threat to the financial stability of the enterprise and makes it necessary to attract additional funds; excess of accounts payable over accounts receivable may lead to insolvency of the enterprise;

· Provide discounts for early payment.

The final stage of the analysis of receivables turnover should be an assessment of compliance with the conditions for obtaining and providing loans. The activity of any enterprise is associated with the acquisition of materials, products, consumption of various kinds of services. If payments for products or services rendered are made on a post-payment basis, we can talk about obtaining an enterprise loan from its suppliers and contractors. The enterprise itself acts as a creditor to its buyers and customers, as well as suppliers, in terms of advances issued to them for the upcoming supply of products. Therefore, the financial well-being of the enterprise depends on how long the terms of the loan granted to the enterprise correspond to the general conditions of its production and financial activities (the duration of the materials in stocks, the period of their conversion into finished products, the maturity of receivables).

Chapter 3. improving working capital management

1 Problems of working capital management

The economic crisis most severely affected the real sector of the economy, characterized by the degradation of its structure, an unprecedented drop in production volumes, paralysis of investment activity of enterprises, weakening of the scientific and technical potential of industry, and the disruption of the financial system of social reproduction. The main reasons for this are the deepening imbalances in the development of the real sector and the sphere of circulation, the lack of development of legal norms for regulating certain types of economic activity.

Currently, Zolotoy Runo JSC has become the primary task of maintaining sustainable production of stabilization of current financial activities. The issues of strategic development, investment in main production to some extent faded into the background. The key problem that caused the decrease in the current financial stability of Zolotoe Runo JSC is the shortage of cash circulating assets necessary to ensure current production. The main disputes that hinder the development of the enterprise were, on the one hand, non-payment by customers, and on the other hand, a large share of the monetary component in the calculations for the delivered products.

In recent years, changes have occurred in the structure of sources of financial resources of JSC Golden Fleece. Reimbursement of losses from the decrease in income from core business activities in most sectors began to be recovered mainly from income from operations in core activities, which was due to their increasing focus on foreign sales markets and operations with foreign currency, active access to speculative financial markets, and expansion of practice “Natural exchange” transactions and offsets, the transfer of part of accounts through subsidiaries, etc. In a short time, this source became the second largest in the formation of kupno financial resources of most sectors of the economy, and for the construction and selected industrial sectors - dominant. A sharp increase in other income is generally a negative phenomenon. It indicates an increase in unpredictability in the formation of financial resources, a decrease in the accuracy of calculating probable volumes, and an increase in the risk of "shortfall" in financial resources.

The ratio between accounts payable and receivable worsened. Overdue accounts payable in industry as a whole account for half of this type of debt. Such a high growth of overdue debt of JSC "Golden Fleece" in economic terms means an equally rapid and significant reduction in the financial sources of industrial recovery, its industry structure, and normal reproduction. The main reason for the negative dynamics of the indicators of the ratio of receivables and payables, as well as the steady growth trend of overdue debt in its total amount, is the physical reduction and destruction of fixed assets, the termination in most cases not only of their expanded reproduction, but also simple. The result is a sharp drop in production volumes, which is accompanied by a reduction in own sources of financing for production.

There is a tendency for debt to suppliers and other creditors to replace part of the enterprise’s working capital and missing short-term bank loans. JSC "Golden Fleece" is interested in replacing these sources with accounts payable, the use of which is cheaper than bank loans.

In 2012, despite significant reductions in the total amount of reserves and an increase in short-term loans, there was a shortage of the total amount of the main sources of formation of reserves and costs in the amount of 5621 thousand soms, which indicates a financial crisis.

One of the reasons for the deterioration of the financial situation of the enterprise can be considered lack of finance department at the enterprisewho would be involved in financial planning. At the moment, the responsibilities of the financial manager are assigned to the accountant.

In a situation where all sectors of the economy are undergoing a phase of depressive development, the revival of economic activity in the real sector is possible on the basis of an influx of foreign investment, including from the budget. However, in recent years, due to unsuccessful torture by the government, normalization of the process of forming the budget revenue has been virtually curtailed. If the reduction in budget support for industries is formally consistent with the essence of market transformations, then an almost complete rejection of lending as a way to mobilize financial resources is contrary to the laws of development of a normal market economy.

The bulk of production investment JSC "Golden Fleece", is carried out at the expense of the internal funds of the enterprise, primarily depreciation, and investments in fixed and working capital due to savings remain at an extremely low level. Currently, a huge part of domestic savings is not invested in the economy.

3.2 Ways to solve the problems of working capital management

At the present stage of economic development, one of the most relevant types of investments is current or current assets. This relevance is caused, first of all, by their acute deficit in almost all sectors of economic activity. The shaft of mutual non-payments, the source of which is the monetary policy pursued by the government, caused the practical lack of money from economic entities as the most liquid element of current assets, which, in turn, led to fundamental fluctuations in the value of inventories at enterprises. In connection with the need to assess the creditworthiness of the enterprise and the strengthening of financial constraints, there is a need to analyze the liquidity of the balance sheet of the enterprise.

JSC "Golden Fleece" has available and very important information that can be used to control TMZ.

Grouping of material costs should be carried out for all types of TMZ in order to identify the most significant among them.

As a result of ranking by the cost of certain types of raw materials, a specific group can be distinguished among them, the monitoring of the state of which is of primary importance for the management of working capital of an enterprise.

For the most significant and expensive types of raw materials, it is advisable to determine the most rational order size and set the value of the reserve (insurance) stock.

The calculation of indicators of financial stability of the enterprise is carried out by external users of accounting information. At the same time, the dynamics of the indicator of maneuverability, first of all, will be of interest to shareholders who evaluate how flexibly managers place their own funds of the enterprise; lenders will be interested in absolute and total liquidity indicators, the high value of which provides them with a minimal risk of non-payment. In order to maximize cash inflows, an enterprise should develop a system of contracts with flexible terms for terms and forms of payment:

Prepayment.Usually assumes a discount

Partial prepayment.Combines prepayment and sale on credit

Transfer to implementation.It provides that the company retains ownership of the goods until payment is made for them.

Billing InterimEffectively for long-term contracts and provides a regular cash flow as individual stages of work are completed

Bank guarantee. Assumes that the bank will reimburse the required amount in case of non-fulfillment by the debtor of its obligations

Flexible pricing. It is used to protect the company from inflation losses: Flexible prices can be:

tied to the general inflation index

depend on the inflation index for specific products

take into account the actual due date and profit from alternative cash.

If full prepayment is not possible, then you should try to get a partial prepayment.

Introduce a system of discounts, rather than a few scattered discounts.

Assess the impact of discounts on the financial performance of the company

Set targets for various types of sales: for example, a part of sales on credit can be reserved only for:

prospective customers who currently do not have cash

entering new important markets

individual emergencies

Set staff remuneration for the sales department depending on the effectiveness of sales and receipt of payments.

Sentence discountscustomers are justified if it leads to increased sales and higher overall profits.

The obtained data on the state of current assets indicate a fairly stable financial situation. However, the financial manager, analyzing the financial situation of the enterprise, must remember that the final conclusions can only be made based on the results of an internal analysis of current assets and short-term debt based on analytical accounting data.

For in-depth analysis, it is advisable to group all current assets into risk categories. For example, there is a greater likelihood that accounts receivable will be easier to realize than work in progress or deferred expenses. In this case, one should not forget about the use of one or another type of working capital. Those assets that can be used only for a specific purpose have a greater risk (less probability) than multi-purpose assets.

In the process of analysis, such a classification of assets by risk categories can be used:

Minimal risk - cash, easily traded short-term securities.

Low risk - accounts receivable from enterprises with stable financial standing, inventories (excluding stale), finished goods in demand.

medium risk - production for industrial purposes, work in progress, deferred expenses.

high risk - accounts receivable of enterprises in difficult financial situation, stocks of finished products, obsolete, stale stocks.

The more funds invested in assets that fall into the high risk category, the lower the financial stability of the enterprise.

In the development of the analysis, it is advisable to assess the trend in the ratio of hard-to-sell assets and total assets, as well as hard-to-sell and easy-to-sell assets. An upward trend in these ratios indicates a decrease in liquidity.

To improve financial work at the enterprise, it is proposed to introduce a financial department in the structure of the enterprise, which would be engaged in financial planning and distribution of funds.

When conducting such an analysis, it should be remembered that the classification of working capital for difficult and easy to implement can not be constant, it changes with changing specific economic conditions. For example, in conditions of instability of supply and the ongoing depreciation of catfish, enterprises are interested in investing money in inventories and other types of inventory. Which gives reason to classify this group of assets as easily tradable. The main objective of the analysis is to timely identify and eliminate deficiencies in financial activities, to find reserves to improve the financial condition of the enterprise and its solvency.

Conclusion

Thus, we can conclude that the most important component of the financial resources of the enterprise are its current assets. Current assets include stocks (raw materials, materials, low-value and wearing items, finished goods, goods shipped, work in progress and others); cash (funds in current and foreign currency accounts, cash desk and others) short-term financial investments (securities, short-term loans provided and others), accounts receivable (debt of buyers and customers, subsidiaries and dependent companies, founders on contributions to the authorized capital, bills on order and more).

As was considered in this paper, the rational use of working capital determines the overall development of the enterprise. The formation and use of working capital require careful analysis. In a market economy, the company should pay great attention not only to market research, market research, but also to the effective use of existing internal resources.

Along with fixed assets for the successful operation of the enterprise, circulating assets, their optimal quantity and efficient use are of great importance. When the topic of fixed assets and working capital is raised, the question of the effectiveness of their use and application necessarily arises. In the system of measures to improve the efficiency of social production, an important place is occupied by the rational use of working capital in all spheres of human activity, especially in industry.

In the first chapter of this work, the importance and relevance of this topic was shown, the main goals and objectives of the analysis of current assets turnover were disclosed, the classification and types of working assets were given, the methodology of working capital turnover analysis was considered

In the second chapter, which occupies most of the work, the existing enterprise of the Golden Fleece OA was examined and its financial position analyzed in dynamics. We paid much attention to the analysis of the turnover of current assets, an assessment of the effectiveness of the use of working capital. It also examined the liquidity of the enterprise, the turnover of its resources, calculated liquidity and profitability ratios, and analyzed its financial stability.

The third chapter examined issues such as working capital asset management and proposed measures to improve working capital turnover. The high growth of overdue debt of Zolotoy Runo JSC in economic terms means an equally rapid and significant reduction in the financial sources of industrial recovery, its industry structure, normal reproduction. The main reason for the negative dynamics of the indicators of the ratio of receivables and payables, as well as the steady growth trend of overdue debt in its total amount, is the physical reduction and destruction of fixed assets, the termination in most cases not only of their expanded reproduction, but also simple. The result is a sharp drop in production volumes, which is accompanied by a reduction in own sources of financing for production. There is a tendency for debt to suppliers and other creditors to replace part of the enterprise’s working capital and missing short-term bank loans. JSC "Golden Fleece" is interested in replacing these sources with accounts payable, the use of which is cheaper than bank loans.

In the course of the practical part of the work in these areas, we formulated the following recommendations:

a) it is necessary to further improve the methodology for managing working capital of an enterprise using a system of indicators;

b) it is not advisable to attract a short-term bank loan;

c) measures to improve the organization of production, mainly to optimize the movement of stocks will lead to faster turnover and an additional release of funds.

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Glossary

The financial analysis is a method for assessing and forecasting the financial condition of an enterprise based on its financial statements

The financial condition of the company - a set of indicators reflecting the process of formation and use of its financial resources;

Balance sheet - property and financial position of the entity as of the reporting date

Assets - these are resources controlled by the subject as a result of past events, the use of which is likely to lead in the future to an influx of economic benefits

Current assets - these are assets that must be converted back into cash within a period of up to one year

Non-current assets - these are assets that the entity has for use in production, rental, administrative purposes and is intended to be used for more than one year

Current responsibility - these are obligations payable at the request of the creditor, and part of long-term obligations, the repayment of which is expected within one year from the reporting date

long term duties - this is debt that is not planned to be repaid within one year from the reporting date

Equity - these are the assets of the entity, net of its liabilities, consists of authorized capital and other capital

Income - this is an increase in economic benefits during the reporting period, which takes the form of an inflow or increase in assets, or a decrease in liabilities, which leads to an increase in capital

Consumption - this is a decrease in economic benefits during the reporting period, occurring in the form of an outflow or depletion of assets or an increase in liabilities, which leads to a decrease in capital

The subjects of financial analysis - owners of enterprise funds, lenders (banks, etc.), suppliers, customers (buyers), tax authorities, enterprise personnel and management, as well as audit firms, consultants, stock exchanges, lawyers, the press, associations, trade unions

The liquidity of the enterprise -the ability to convert assets into cash or receive cash; the ability to cover your current liabilities

Current (total) liquidity ratio -ratio of current assets to current liabilities

Quick ratio , or “critical” assessment- the ratio of the liquid part of current assets (i.e. excluding inventories) to current liabilities

Absolute liquidity ratio -cash ratio to current liabilities

Net working capital- the difference between current assets and current liabilities

The security of the assets of the enterprise own working capital - the ratio of net working capital to the assets of the enterprise

The financial stability of the enterprise - this is the ability of a business entity to function and develop, maintain the balance of its assets and liabilities in a changing internal and external environment, guaranteeing its constant solvency and investment attractiveness within the acceptable risk level

The turnover of working capital is the most important characteristic in assessing the activities of the enterprise. In theory, current assets is the capital invested by the company in current activities for the period of each operating cycle. Asset turnover analysis is an integral part of financial analysis. CIRCUIT TURNOVER - describes the number of revolutions made by circulating assets for the reporting period (year) and represents the ratio of the volume of products sold to the working capital ratio. The impact of turnover on the financial results and financial condition of the organization. The greater the speed of circulation of working capital, the less need for them and the better they are used. Asset turnover, best of all allows you to evaluate the real effectiveness of the operating activities of the enterprise. Thus, adequate indicators of turnover allow us to evaluate, including maturity, and the presence of a long-term development strategy for the company.

Asset turnover ratio is the ratio of revenue from sales of products to the total balance sheet total. This indicator characterizes the efficiency of using all available resources by the company, regardless of the sources of their formation, i.e., it shows how many times during the year (or another reporting period) a complete cycle of production and circulation is carried out, bringing profit to the company, or how many monetary units of products sold each monetary unit of assets. Current assets turnover indicators: economic content and calculation methodology. For the analysis of the speed of turnover of current assets as a whole, calculate the turnover ratio (Ko) - the ratio of revenue excluding VAT and excise taxes (B) to the average amount of current assets (Obsr) for the period:

Ko \u003d V / OBSr where, OBSr \u003d (OBSn + OBSK) / 2, OBSn, OBSK - respectively, the value of working capital at the beginning and end of the period.

The value of the turnover ratio of all assets shows the efficiency of use of current assets, the growth rate in dynamics indicates an increase in the efficiency of use of current assets in the whole enterprise. The best idea of \u200b\u200bthe efficiency of using the assets is provided by the assets turnover period indicators, which are the number of days needed to convert them into cash and are the reciprocal of the turnover ratio multiplied by the length of the period. To assess the duration of one revolution in days, calculate the indicator - the duration of one revolution of working capital according to the formula:

To \u003d 360 / Co. or To \u003d 365 / Co.

The value shows how many days, the funds invested in current assets or their components, again take the monetary form. A decrease in this indicator over time is a positive factor. Similarly calculated values \u200b\u200bfor the components of current assets.

The turnover ratio and the duration of the turnover are calculated according to the formulas: Ko (DZ) \u003d V / DZsrTo (DZ) \u003d DZsr / V * 360 or To (DZ) \u003d 360 / Ko (DZsr)

Where, DZsr - the average over the period the amount of receivables.

The cash turnover ratio is calculated by the formula:

Co (DS) \u003d V / DS

The value of the indicator shows how many times during the period, the funds in the accounts and at the cash desk of the organization made revolutions. The duration of cash flow is calculated by the formula: To (DS) \u003d 360 / To (DS)

Using these indicators assess the business activity of the company in the use of funds. The decrease in turnover and the growth of the average period of cash flow indicates the irrational organization of the enterprise, allowing slowdown in the use of highly liquid assets, the main purpose of which is to service the production and economic turnover of the enterprise. To assess the level of use of stocks, a stock turnover ratio is used, which shows how efficiently the company uses stocks and the speed of stocks turnover. The calculation is carried out according to the formulas: Ko (ZAP) \u003d V / ZAP Duration of inventory turnover, taking into account revenue To (ZAP): That (ZAP) \u003d ZAP / V * 360 or That (ZAP) \u003d 360 / Ko (ZAP) dynamics indicates an improvement in the organization of stocks at the enterprise, an increase in demand for the products of the enterprise, a decrease in overstock, etc. The decrease in inventory turnover is the basis for a thorough analysis of the organization of production and business processes, the organization of marketing activities, etc. Factors affecting the turnover of current assets. The duration of the funds in the turnover of the enterprise is determined by the combined influence of a number of factors of external and internal nature. Among external factors should include: the scope of the company (production, supply and marketing, intermediary, etc.); industry affiliation; the size of the enterprise. The decisive effect on the turnover of assets of the enterprise has a macroeconomic situation. The rupture of economic ties, inflationary processes lead to stockpiling, which significantly slows down the process of turnover of funds. TO internal factors nature include the price policy of the enterprise, the formation of the structure of assets, the choice of methods for assessing inventory. Ways to accelerate turnover. The duration of one revolution is reduced due to the reduction of inventories, production cycle and delivery time of finished products. Inventory norms are reduced by regulating the consumption rates of raw materials and materials, replacing scarce raw materials with cheaper ones, using production waste, improving the quality of the material used, increasing the speed of material delivery, using reusable containers, unifying parts and assemblies. As a result of organizational and technical measures, the average daily consumption of material assets and the interval between deliveries and, consequently, the need for working capital are reduced. Reducing the delivery time of finished products is one of the ways to improve the use of working capital in the field of circulation.

The financial position of the enterprise, its liquidity and solvency directly depend on how quickly the funds invested in assets are converted into real money.

The different speed of turnover of certain types of assets is explained by the combined influence of various external and internal factors. External factors include the type of activity, the scale of the enterprise, and the economic situation in the country. In the process of analysis, these factors were already paid attention to in other investigated aspects. Mention was also made of internal factors, for example, the effectiveness of the organization's asset management.

The purpose of the analysis of asset turnover is to assess the ability of an enterprise to make a profit by making a turnover according to the classical scheme "Money - Goods - Money".

Analysis of turnover allows you to supplement the study of the structure of the Balance regarding the characteristics of the conditions of material supply, sales of goods, terms of settlements with customers and suppliers that have developed in the organization.

Turnover analysis includes:

study of asset turnover (current and permanent);

analysis of current liabilities;

pure cycle analysis.

When conducting an analysis of a company's turnover, turnover ratios are used.

The asset turnover ratio shows how many times the asset in question has “turned around” over the period.

The turnover rate of assets is directly related to the indicators of return on equity. The main indicator characterizing the asset turnover is the turnover period - the duration of one asset turnover in days.

Analysis of the turnover of all assets of TambovAvtoService LLC showed a decrease in the efficiency of use of the enterprise’s property: mainly in terms of fixed and current assets. During the entire period under review, the period of circulation of fixed assets increased from 0.47 to 1.02 days, which was a consequence of the increase in part of the fixed assets of the enterprise.

Analysis of current assets turnover showed a deterioration in the use of enterprise funds during the analyzed period. This fact manifested itself in an increase in the period of circulation of goods, and, ultimately, in an increase in the “cost” cycle (total duration of the turnover of components of current assets).

The largest share in the "costly" cycle, not counting the turnover of other stocks, has the turnover of goods for resale. In other words, in the chain "inventories - costs of goods sold - goods - receivables" the goods have a maximum term for linking funds. During the analyzed period, the rate of turnover of goods decreased by 19 times. The obtained values \u200b\u200bindicate that with the prevailing on 31.12. 2007, the level of sales in the warehouse of the company LLC "TambovAutoservice" concentrated a large stock of goods.

The increase in stocks of goods due to the fact that to replenish working capital, LLC TambovAutoservice actively uses borrowed sources in the form of bank short-term loans. To ensure obligations under loan agreements under collateral agreements, goods stored in the warehouses of the enterprise are presented. LLC TambovAvtoservis is forced to keep a certain stock of goods in warehouses, which increases the time period for linking funds and, ultimately, worsens the situation of LLC TambovAvtoservis.

The turnover of issued invoices (the period of deferred payments of buyers) in the analyzed period slightly increased from 29.3 to 30.5. LLC "TambovAutoservice" reduces the deferral of payments for its customers - debtors, which reduces the period of turnover and increases the frequency of turnover of receivables. This is a positive factor characterizing the right sales strategy.

As mentioned above, the sum of the periods of the turnover of the individual components of current assets with the exception of cash is the "cost cycle". The larger the "cost cycle", the lower the rate of turnover of current assets, and the more funds the enterprise requires to finance the current production activities of the enterprise. Within the period under review, the turnover period of all assets of the enterprise increased from 23.59 to 31.97 days. This fact indicates a decrease in the efficiency of use of working capital of the enterprise.

Analysis of the turnover of current liabilities allows you to assess the average duration of the deferral of payments, which provide the company its creditors. For the period under review, the turnover of submitted invoices decreased from 49.07 to 40.14 days. This is a positive factor.

Comparison of the periods of circulation of the presented and issued invoices allows us to evaluate the terms of settlements of the enterprise with suppliers and buyers. The excess of the period of turnover of the presented invoices over the period of the turnover of invoices indicates that the company has relations with suppliers and customers that are favorable for its financial situation.

The benefit of situations is that the deferral of bill payment received from suppliers exceeds the deferral provided by the buyer. In this case, the company receives a gain in free cash.

TambovAvtoservis LLC at the end of 2007 has a multiple of payment of submitted invoices to customers of 30.5, and a multiple of payment of presented invoices of 40.14 (1.3 times less). Therefore, the company has no loss in time, and, therefore, the ability to use free cash. This situation developed over the entire period under review.

The sum of the periods of the turnover of the components of the current liabilities is called the "credit" cycle. During the study period, the “credit” cycle of TambovAvtoservis LLC decreased from 197.93 to 86.49 days.

The greater the value of the "credit" cycle, the more effectively the company uses the opportunity to obtain financial resources from participants in the production process (suppliers and buyers). The larger the “credit” cycle, the lower the cost of sources of financing for current production activities.

The difference between the “cost” and “credit” cycle is called the “clean” cycle. This indicator characterizes the organization of financing the production process. The positive value of the “clean cycle” throughout the entire period under review may mean that the loans of suppliers and buyers did not fully cover the company's need for financing working capital. For the period 2006 - 2007, the value of the "net cycle" of the enterprise increased by 26,689.4 times. This fact indicates a trend of a significant increase in the needs of the enterprise in financing from external sources in relation to the production process (in this case, loans). The reason for these changes is a significant rate of increase in the “cost” cycle, decrease in the “credit” cycle.

Optimization of financing the current production activities of the enterprise should occur primarily due to an increase in the turnover of current assets. The most effective ways to solve this problem are to reduce stocks of goods and reduce receivables. In a real situation, this means a more thorough approach to planning procurement activities and toughening the terms of contracts for the supply of goods.

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