Analysis of general indicators of turnover of current assets. Analysis of the turnover of the organization's assets. Types of current assets
Federal Agency for Education
State educational institution higher
vocational education
Kuban State Technological University
GRADUATE WORK
Turnover analysis current assets and identification of reserves for the effectiveness of their use
Krasnodar
Introduction
Chapter 2. Analysis of the turnover of current assets
2.2 Goals, objectives and information sources of analysis working capital
Conclusion
Bibliography
Applications
Introduction
Working capital is one of the components of the property of the enterprise. The state and efficiency of their use is one of the main conditions for successful activity. The development of market relations determines the new conditions for the organization of working capital. High inflation, non-payments and other crisis phenomena are forcing enterprises to change their policy in relation to current assets (funds), look for new sources of replenishment, and study the problem of their efficient use.
The process of production and sale of products can be carried out smoothly if the enterprise has not only the necessary fixed assets, intangible assets, but also working capital, mainly in the form of stocks of raw materials, materials, semi-finished products, fuel, etc. Like fixed assets, working capital operates in sphere of production, being the material basis of production and represent production assets. But in the process of functioning, the means of labor and objects of labor transfer their value to the value of the product produced in different ways and to varying degrees. This is the reason for the division production assets into principal and circulating.
Circulating production assets in terms of material content are objects of labor, as well as tools of labor, accounted for as low-value and wearing items. Circulating production assets serve the sphere of production and fully transfer their value to the cost of finished products, changing their original form in the process of one production cycle.
Circulating production assets are the minimum necessary for the implementation production program stocks of raw materials, basic materials, purchased semi-finished products and components, auxiliary materials, fuel, spare parts for repairs, low-value and wearing items, as well as work in progress.
The funds of circulation, although not directly involved in the process of production, are necessary to ensure the unity of production and circulation. The nature and scope of their functioning create the prerequisites for separating them into an independent concept of "circulation funds".
Circulation funds consist of stocks of finished products in the warehouse of the enterprise, goods shipped to consumers, and balances Money in bank accounts and at the cash desk of the enterprise.
Circulating production assets and circulation funds are closely related. Their movement has the same character and constitutes a single process of circulation of funds of the enterprise.
At the same time, there is a constant and regular change in the forms of advanced value: from money it turns into commodity, then into production, and again into commodity and money. Thus, there is an objective need to advance funds to ensure the continuous movement of circulating production assets and circulation funds in order to create the necessary production reserves, a backlog of work in progress, finished products and conditions for its sale.
In the system of measures to improve efficiency social production important place is occupied by the issues of rational use of working capital in all areas of activity.
The purpose of the analysis of accounting (financial) statements from the perspective of the user is to review and evaluate the information available in the statements in order to obtain reliable conclusions about the past state of the enterprise in order to predict its viability in the future.
As a result of the analysis of the accounting (financial) statements, the the most important characteristics enterprises that testify, in particular, to its success or the threat of bankruptcy.
For different users, the analysis of accounting (financial) statements in terms of the scope of its implementation depends on the specific goal. At the same time, the nature of the analysis and the direction of work in the analysis of accounting (financial) statements may be different.
The analysis of current assets is one of the most important areas of analysis of financial statements, since the change in the dynamics and structure of current assets determines the solvency of the enterprise, its production capabilities, demand this enterprise On the market.
The turnover of working capital is one of the most important indicators characterizing the intensity of the use of working capital of the enterprise and its business activity. 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 makes it difficult for the rhythm of the organization's activities and leads to an increase in receivables; excessive diversion of funds into inventories, work in progress, finished products leads to the "death" of resources and inefficient use of working capital.
Purpose of graduation writing qualifying work is to analyze the current assets of Yuzhnaya Zvezda LLC and develop recommendations for their optimization, determine the level of efficiency in the use of current assets by the enterprise at its disposal.
The tasks of the final qualification work include:
The study of the theoretical and organizational foundations of the turnover of current assets;
Studying the methodology for analyzing the turnover of current assets;
Study of organizational and economic data of the object of study of the final qualifying work;
Factor analysis of turnover indicators;
Analysis of the turnover of current assets of Yuzhnaya Zvezda LLC and development of recommendations based on the results of the analysis.
The analysis of current assets is carried out on the example of a Company with limited liability OOO "Southern Star" The main activities of Yuzhnaya Zvezda LLC are the sale and purchase of the following products: flower crops, indoor plants, outdoor plants, planting material, seeds and bulbs, soil mixtures, plant accessories, and plant care products.
The first chapter discusses general approaches to the collection and use of information for economic analysis; the problems of verifying the reliability of information are studied; the principles of organizing the search for economic reserves are outlined.
The second chapter gives a general organizational and economic characteristics of the object of study; the goals and objectives of the analysis of the turnover of current assets are determined; an analysis of the turnover of current assets of Yuzhnaya Zvezda LLC is being carried out.
The third chapter is devoted to identifying reserves for the efficient use of working capital, contains a factor analysis of turnover indicators, a list of proposals for the optimal use of working capital.
Chapter 1. Information base for the analysis of the activities of an economic entity
1.1 Information sources and verification
The depth of analysis, the reliability and objectivity of analytical conclusions are provided by the involvement and analytical processing of various sources of information. The greatest role in the information support of the analysis is played by internal information, which includes all types of economic accounting, accounting and statistical reporting; founding documents; legal documentation characterizing contractual relations with suppliers and buyers, borrowers, depositors and issuers; design and other technical documentation reflecting functional structure manufactured products, their quality, the level of technology and production technology, the degree of automation of management of all aspects of the activity of an economic entity; regulatory and planning documentation and business plan; acts audits and scheduled checks.
To conduct different types of economic analysis, a different set of sources of inside information and their different ratios are used.
On-farm data accounting involved in all types of analysis by internal users within management-authorized access to the data.
The main source of information for external users is financial statements. The content of the published (so-called public) reporting and the degree of aggregation of its data are established by the state by law.
In the legally regulated volume, financial statements are submitted to the tax authorities, with the application of calculations of the taxable base various taxes, to statistical authorities, as well as to lending commercial banks.
Along with internal information in the modern conditions of the Russian market economy, in order to make rational management decisions need to have status information external environment in which the economic entity operates and develops.
Such information comes from sources outside the business entity and is therefore referred to as external information; it includes:
1) political information on the economic policy of the state during the period of the analysis and its planned changes, in particular in relation to certain types of economic and commercial activities;
2) economic information about the state of supply and demand for different types goods and services in domestic and foreign markets, interest rates for loans, exchange quotations of securities of various issuers, fluctuations in foreign exchange rates, ratings of individual commercial banks and companies with which the analyzed subject has business relationship, on the prospects for the development of individual sectors and sub-sectors of the national economy;
3) information about the business and personal qualities of the heads of these legal entities.
Sources of external information are newspapers, magazines, stock bulletins, television, the Internet, state statistics agencies, economic security services and personal observations of the heads of the analyzed subject, firms that specialize in collecting and processing information on user orders.
The information collected from various sources is grouped and processed in the sections necessary to achieve this type of analysis goals. Wherein Special attention is given to checking the consistency of data obtained from different sources and their reliability.
Unreliability is caused by a number of reasons of an objective and subjective nature.
The objective reason for the inconsistency of information with the real state of the economic entity and the actual result of its activities is, first of all, the discrepancy between the legally established rules for assessing the value of property and its real market value as of the date of the analysis. Determining the amount of income and expenses, and, consequently, financial results is to a certain extent conditional, since it depends on the adopted accounting policy and the rules for their recognition on an accrual basis or on a cash basis. The deviation of information from reality is also caused by the action of a number of other objective reasons, which include the impossibility of accurately determining the degree of obsolescence and physical depreciation of fixed assets, the loss of consumer value of tangible working capital, the level of risk of a decrease in the exchange value of a portfolio of securities, the risk of non-payment of debt, as well as property depreciation due to inflation.
The subjective reasons for obtaining false information are insufficient qualifications of the personnel, causing errors in the preparation of primary, legal, accounting and technical documentation, in accounting, reporting and tax calculation. Subjective reasons also include the deliberate distortion of internal and external information by its compilers in order to deceive users regarding financial stability and the profitability of the activities of an economic entity or direct fraud for personal enrichment.
All of the above reasons of an objective and subjective nature necessitate checking the reliability of reporting and making adjustments to it that help bring it closer to the real state of the analyzed aspects of the activity and allow it to be correctly assessed.
The information verification process usually includes several stages.
The first stage is a counting check, i.e. checking the compliance of analytical and synthetic accounting data by compiling turnover sheets of balances and turnovers for each account provided for by the working chart of accounts.
Next, the indicators of different reporting forms are compared, which either must completely match in these forms, or be derived from one another by subtraction, addition or division (arithmetic operations are carried out to identify a comparison or interconnection of individual indicators).
The second stage is a counter check, i.e. comparison of information obtained from different sources.
Data on balances on settlement, current, deposit and loan accounts must be confirmed by statements of balances received from leading banks; the balances of the debt for each debtor and creditor are reconciled with the accounting data of these debtors and creditors. In this volume, a cross-check must be carried out without fail by the accounting department before drawing up the annual financial report.
Further counter verification of information is carried out by analysts (or auditors).
At the same time, data from internal accounting, statistical and operational accounting and reporting, as well as data obtained from external sources of information are compared; the causes of the identified discrepancies are clarified, which is essential for assessing the reliability of the information and, if possible, the necessary clarifications are made to it.
The third stage is a logical check. At this stage, the analyst, taking into account the current economic situation, finds out how much you can trust the data of internal and external information about the quality of manufactured (sold) products (or services), about the income and expenses of the analyzed business entity based on his own assessment of the qualifications and integrity of its managers and staff, state of accounting and control.
The method of logical verification is very subjective and almost does not lend itself to formalization.
At the stage of logical verification, the analyst's conclusions are mainly preliminary and depend entirely on his qualifications and experience in practical audit or audit activities.
1.2 Analytical processing of information: modern computer analytical programs
After checking the completeness and reliability of the information, its analytical processing is carried out, i.e. a system of indicators is determined, the study of which is required to achieve the goals of the analysis. These indicators are either already contained in the selected information, or are calculated in the process of its analytical processing.
The system of indicators means such an ordered set of them, in which each indicator gives a qualitative and quantitative characteristic of a certain aspect of the activity of an economic entity, is interconnected with other indicators, but does not duplicate them, and has the properties of reducibility and divisibility.
The number of indicators in the process of analytical processing of information can increase almost unlimitedly through their differentiation or integration, depending on the analysis program, the depth of study of the results of activities and the factors influencing them.
Since the activities of economic entities, their structural divisions, as well as their various associations are generally quite stable, the system of indicators with which it is analyzed has a certain stability, but is gradually enriched with new indicators as new tasks arise, changes in the general economic situation, external and internal conditions of activity of economic entities.
A wide market of software products and many developers offering their services on Russian market, require an assessment of the effectiveness of their application in different conditions. For mass consumption, simple features of the classification of software products are most understandable, for example, the orientation of software products to large, medium and small enterprises. Despite their simplification, they are very widely used.
At present, according to the degree of functional coverage, programs can be focused only on accounting, accounting and operational (production) accounting; for warehouse accounting and other types of information. In this case software products focused on serving various departments, divisions and links of production and management. At the same time, complex programs cover several departments at once.
There are programs on the market that have an industry focus, for example, for construction, trade organizations, discrete production (by type of production technology), for railway transport.
According to the degree of readiness, method and depth of tuning, it is possible to single out ready-made programs with parametric tuning, with elements of algebraic-formular tuning, and individually modified programs.
The most widely distributed in Russia are integrated financial and functional systems focused on several departments of enterprise management. They include control units. financial flows, financial analysis, but they are based primarily on accounting functions. The universal systems of this class include: 1C-Enterprise, Accord, BEST-4, Parus, Flagman; Cascade, Domino, BEST-Pro, etc.
In complex and integrated systems, special modules are often allocated that implement the functions of analysis and planning.
The most developed in Russia are software products for analyzing financial results and evaluating financial condition organizations. This is explained, on the one hand, by the objective demand for solving the problems of financial analysis. Financial analysis is most closely related to financial (accounting) reporting, it uses accounting data, i.e. most closely adjoins the accounting system, which has received the greatest elaboration in software products.
A retrospective analysis allows you to generate high-quality initial information for subsequent forecasting and planning. But the possibilities of software products in qualitative analysis and interpretation of coefficients for further forecasting are limited.
In recent years, predictive tasks have been developed quite actively in software products, but without a preliminary qualitative selection of information, which naturally reduces their reliability. These programs can be used to develop business plans, investment projects, forecasting financial reporting.
The analysis of the financial results of the activity of economic entities and its effectiveness implies the greatest coverage of analytical functions, and, consequently, the use of a comprehensive software. The significance of this line of analysis is undeniable. Firstly, it is the stability of improving financial results, their positive dynamics that guarantee the financial stability of an economic entity. Secondly, profit growth and an increase in the share of economic profit, understood as an increase in equity, is a solid and reliable source of financing for activities to increase the production potential of the organization. Thirdly, in a saturated market, the organization has to maneuver, choosing a rational ratio of sales growth and product profitability, which is regulated by changes in prices for a certain type of product. This approach involves strict continuous control over the assortment program, focused on optimizing the selected criterion (sales volume or rate of return).
1.3 The economic essence of reserves to improve the efficiency of management and the principles of organizing their search
The concept of "reserves" is used in science and practice in the analysis of the activities of economic entities in a dual sense. First, reserves are material resources that are temporarily not used for their intended purpose. These reserves are created for additional needs, in order to use them under certain circumstances. They are expressed in specific material elements, these are stocks of raw materials, materials, fuel, semi-finished products, uninstalled equipment, free production areas.
Reserves in this sense are analyzed from the point of view of the correspondence of their size to real needs: are they redundant or insufficient. To this end, in practice, inventories, inventories, uninstalled equipment are systematically analyzed.
The search for reserves must be carried out purposefully and systematically in the main areas, without dissipating forces to identify secondary and insignificant reserves. This implies the relevance of developing principles for organizing the search for reserves [Melnik, p. 197].
The principle of mass search for reserves. The reserves are practically inexhaustible. As scientific and technological progress accelerates, the role of reserves associated with extensive factors of growth in economic efficiency is weakened, and the importance of searching for reserves for the intensification of social production, which are more easily detected by direct study of them in the workplace, increases. These reserves are revealed the more fully, the greater the number of workers of different professions and specialties involved in their search. That is why it is necessary to involve all personnel in the search for a reserve in the order of performance of official duties.
The principle of determining the leading link in increasing production efficiency and highlighting "bottlenecks". For the preliminary selection of directions for the search for reserves, the structure of production costs is essential, according to which it is possible to establish whether production is material-intensive, energy-intensive, or capital-intensive (in terms of fixed assets) or labor-intensive. Depending on this, deciding group resources for which it is necessary to seek resources in the first place.
This does not mean that we can neglect the search for reserves in other groups of resources and factors influencing them.
The principle of selective search for reserves. Even with the participation of all personnel in identifying reserves, the analysis is carried out selectively in the most reserve-intensive areas.
The principle of accounting for the type of production. In mass and large-scale production, it is recommended to search for reserves by detailing the indicators of resource use in the following sequence: product, assembly, part, technological operation.
The principle of simultaneous search for reserves at all stages life cycle analyzed object. The efficiency of the search for reserves is the higher, the earlier it starts at an earlier stage of product creation.
Domestic and foreign experience confirms that the possibilities of identifying and mobilizing reserves for saving materials and wages at the stage of designing an object and preparing its production, it is several times more than at the stage of production and operation of the object. Thus, it is very relevant to extend the analysis of reserves to the pre-production stage, when the costs are still negligible.
The principle of determining the completeness of reserves. There is a real possibility of mobilizing reserves only if the reserves are complete. For example, the identified reserves of material savings cannot be used to increase the volume of production if the production capacities in some limiting areas do not allow for a further increase in output. Therefore, it is necessary to analyze the degree of use of equipment and identify its reserves. If the possibility of increasing output by increasing the shift of equipment operation is identified, the problem arises of attracting additional workers and engineering and technical workers, and this, with limited labor resources, implies a conditional release of workers as a result of an increase in their labor productivity.
The problem of assessing the completeness and reality of reserves is not solved by a simple comparison of the total volume of reserves in monetary terms for three simple moments of the labor process. It is necessary to compare the reserves identified for individual groups of equipment, and on this basis to determine the real reserve for the growth of production at the expense of fixed assets, to consider the reserves of labor in the context of professions and skill levels, to determine the reserves for objects of labor not only in general by their cost, but also taking into account the natural-material composition of scarce varieties of materials.
The principle of eliminating the repeated account of reserves. When measuring the value of complete reserves, there is a danger of their repeated counting. For example, they add up reserves for increasing the volume of production, hidden in the elimination of the causes of downtime of workers and equipment, although in the vast majority of the downtime of workers coincides with the downtime of the equipment on which they work. In order to eliminate double counting, it is necessary to organically link the change in cost rates with the implementation of individual measures that cause a decrease or increase in material consumption and labor intensity of production. At present, such a linkage is very difficult to carry out and most often practically impossible, since this requires a more advanced organization of accounting for changes in standards, which has not yet been created at most enterprises. As a result, the calculation of reserves, on the one hand, is very incomplete, and on the other hand, their repeated calculation is not ruled out.
Chapter 2. Analysis of the turnover of current assets of Yuzhnaya Zvezda LLC
2.1 Organizational and economic characteristics of Yuzhnaya Zvezda LLC
The founders of the enterprise are individuals. The purpose of the company is to make a profit. The authorized capital of the Company is 13,200 rubles. The company does not create special purpose funds from its profits . There are no intangible assets at the enterprise.
The average headcount in 2005-2007 was 75 people.
Management of the company's activities CEO- Ivanov I.I., who independently resolves the issues of the enterprise, acts on its behalf, has the right of first signature, manages the property of the enterprise, hires and dismisses employees. The General Director bears material and administrative responsibility for the accuracy of the data of the accounting and statistical report. In accordance with the produced orientation of the firm, the general director appoints his deputies. One - dealing with sales marketing and product advertising. Another deputy - dealing with production issues. Chief Accountant Petrova I.I. prepares documentary reports of enterprises.
To study the property status of Yuzhnaya Zvezda LLC, we will form an analytical table (Table 2.1).
Table 2.1.
Analytical characteristics of the property of the enterprise
| Indicator | 2005 | 2006 | 2007 | Change ( + ) | |
2006 to 2005, |
2007 to 2006, |
||||
| Total property, thousand rubles (300) | 32552 | 41684 | 334858 | 128,1 | 803,3 |
including: Non-current assets, thousand rubles (190) |
1396 | 1300 | 190046 | 93,1 | 14618,9 |
| in % to property | 4,3 | 3,1 | 56,8 | X | X |
| Working capital, thousand rubles (290) | 31156 | 40384 | 144812 | 129,6 | 358,6 |
| in % to property | 95,7 | 96,9 | 43,2 | X | X |
| Reserves, thousand rubles (210) | 14149 | 13828 | 15724 | 97,7 | 113,7 |
| in % of working capital | 45,4 | 34,2 | 10,9 | X | X |
| Finished products and goods for resale, thousand rubles (211) | 14149 | 13814 | 15678 | 97,6 | 113,5 |
| in % of working capital | 45,4 | 34,2 | 10,8 | X | X |
| Accounts receivable, thousand rubles (240) | 2156 | 4412 | 71983 | 204,6 | 1631,5 |
| in % of working capital | 6,9 | 10,9 | 49,7 | X | X |
|
buyers and customers, thousand rubles (241) |
1482 | 3700 | 70347 | 249,7 | 1901,3 |
| in % of working capital | 4,8 | 9,2 | 48,6 | X | X |
| Cash, thousand rubles (260) | 893 | 1321 | 1100 | 147,9 | 83,3 |
| in % of working capital | 2,9 | 3,3 | 0,8 | X | X |
We will demonstrate the ratio of the asset structure of Yuzhnaya Zvezda LLC in dynamics for three years graphically (Fig. 2.1).
Rice. 2.1. Ratio of current and non-current assets of Yuzhnaya Zvezda LLC for the period 2005-2007
It should be noted that the share of current assets in the total value of the organization's property decreased by the end of 2007 from 96.9% to 43.2%. This situation is associated with the appearance of a significant amount in the asset balance under the item "Construction in progress". However, during the analyzed period, the amount of working capital of the organization also increased and we can observe its dynamics in Fig. 2.2.
Rice. 2.2. Dynamics of current assets of Yuzhnaya Zvezda LLC for the period 2005-2007
Analytical characteristics of the liabilities of the balance sheet of LLC "Southern Star" will be presented in Table. 2.2. (p. 24).
Table 2.2
Analytical characteristics of the sources of formation of the property of the enterprise
| Indicator | 2005 | 2006 | 2007 | Change ( + ) | |
2006 to 2005, |
2007 to 2006, |
||||
| Total liabilities, thousand rubles (700) | 32552 | 41684 | 334858 | 128,1 | 803,3 |
including: Capital and reserves, thousand rubles (490) |
10459 | 11071 | 11178 | 105,9 | 101,0 |
| 32,1 | 26,6 | 3,3 | X | X | |
| Long-term liabilities (590) | - | - | 240000 | ||
| in % to sources of funds (liabilities) | 71,7 | X | X | ||
| Short-term loans and credits, thousand rubles (610) | 11116 | 21169 | 6682 | 190,4 | 31,6 |
| in % to sources of funds (liabilities) | 34,1 | 50,8 | 2,0 | X | X |
| Accounts payable, thousand rubles (620) | 10964 | 9444 | 76998 | 86,1 | 815,3 |
| in % to sources of funds (liabilities) | 33,7 | 22,7 | 23,0 | X | X |
|
suppliers and contractors, thousand rubles (621) |
10712 | 9137 | 76693 | 85,3 | 839,4 |
| in % to sources of funds (liabilities) | 32,9 | 21,9 | 22,9 | X | X |
Consider the financial results of the object of study and their components (Table 2.3).
According to this table, one can trace the dynamics of profit components, but also the influence of first-order factors on profit from the sale of goods. According to reporting and calculation data, the cumulative impact of first-order factors on sales profit led to its decrease by 279 thousand rubles. in 2006 compared to 2005, and then to an increase of 948 thousand rubles. in 2007 compared to 2006. Growth in sales proceeds as a factor had a positive effect on the amount of profit, an increase in the amount of selling expenses and cost of goods sold had a negative effect.
In the last year of the analyzed period, the growth rates of sales revenue and the cost of goods sold are the same, averaging 150%, the growth rate of selling expenses was 122%.
Table 2.3
Calculation of the influence of first-order factors on sales profit
Yuzhnaya Zvezda LLC according to Form No. 2
| Factors | 2005 | 2006 | 2007 | Absolute growth | Influence of factors on profit from sales | ||
| in 2006 to 2005 | in 2007 to 2006 | in 2006 to 2005 | in 2007 to 2006 | ||||
| Sales revenue | 76418 | 121827 | 181361 | 45409 | 59534 | 45409 | 59534 |
| Cost of goods sold | 65676 | 105966 | 161050 | 40290 | 55084 | -40290 | -55084 |
| Selling expenses | 9970 | 15368 | 18870 | 5398 | 3502 | -5398 | -3502 |
| Cumulative influence of factors | -279 | +948 | |||||
Let's graphically represent the behavior of profit from sales of the object of study in Fig. 2.3.
Rice. 2.3. Dynamics of profit from sales of Yuzhnaya Zvezda LLC for the period 2005-2007 (thousand roubles.)
Figure 2.3 shows that the nature of the combined influence of factors also changed the behavior of profit from sales of the object of study - a decrease in 2006 by 36.1% compared to 2005, an increase in 2007 by 192% compared to 2006 ., or 2.9 times.
Let's analyze the indicators characterizing the solvency of the organization (Table 2.3.)
Indicators characterizing solvency
Yuzhnaya Zvezda LLC
The liquidity of an enterprise reflects its ability to pay future debts (liabilities) in time, or the ability to turn asset items (fixed and current assets, including securities and other assets) into money to pay liabilities.
Among the main indicators characterizing the solvency of the enterprise is, first of all, the current liquidity ratio. It shows what part of current liabilities on loans and settlements can not be extinguished by mobilizing all working capital. The optimal value of this indicator is 1-1.5. The current liquidity ratio is equal to the ratio of current assets to short-term liabilities, i.e. p.290 / p.690 of the balance sheet. At the beginning of 2005 it amounted to 1.84, but at the end of 2005 it took the optimal value (1.35) and for two years kept within this framework.
The equity ratio is equal to the difference between capital and reserves and non-current assets divided by current assets (p.490–p.190)/p.290.
The quick liquidity ratio is equal to the ratio of cash minus inventories and other assets to current liabilities, i.e. (p.290-p.210-p.220)/p.690. Criterion not less than 1. For the enterprise in 2005. at the end of the year it is less than 1 by 0.51; by 0.51, and in 2007 by 0.14, this is due to the fact that most of the free cash is immediately directed to stocks (in our case, to the purchase of goods).
The absolute liquidity ratio is equal to the ratio of cash to current liabilities i.e. p.260/p.690 balance sheet. The absolute (total) liquidity ratio indicates what part of the company's short-term liabilities can be immediately repaid at the expense of cash on settlement and other bank accounts. Theoretically, a sufficient value of this indicator is from 0.2 to 0.25. For the three years under study, the value of this indicator has significantly decreased from 0.2 at the beginning of 2005 to to 0.04 at the end of 2007 This means that in order to immediately pay off short-term obligations, lending is necessary.
On the basis of the study, it can be concluded that the results of the financial and economic activities of Yuzhnaya Zvezda LLC, the structure and dynamics of the main economic indicators, are characteristic of the organization of trade; processes and phenomena of the period 2005-2007. are explained by the influence of various internal and external factors; the financial condition of the object of study during the period under review can be called stable. However, in order to assess the effectiveness of the use of current assets, which are an important component of the activities of a trade organization, the general economic characteristics of Yuzhnaya Zvezda LLC are not enough.
2.2 Goals, objectives and information sources for the analysis of current assets
The main purpose of the analysis is the timely identification and elimination of shortcomings in working capital management and finding reserves to increase the intensity and efficiency of its use. And also: identification of factors affecting the turnover and duration of one period, quantitative measurement of their influence; determination of the impact of turnover of working capital on the financial condition of the enterprise.
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 speed of turnover of funds is associated with:
The minimum required amount of advanced (involved) capital and related cash payments (interest on 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.
Separate types of assets of the enterprise have different turnover rates.
The duration of 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, industry affiliation, the scale of the enterprise (in most cases, the turnover of funds in small enterprises is much higher than in large ones - this is one of the main advantages of small business) and a number of others.
The current expenditure of funds and their receipts, as a rule, do not coincide in time, as a result, the enterprise needs more or less funding in order to maintain solvency. The lower the rate of turnover of current assets, the greater the need for financing.
External financing is costly and subject to certain restrictive conditions. Own sources of capital increase are limited primarily by the ability to obtain the necessary profit. Thus, by managing working capital, the company gets the opportunity to be less dependent on external sources of cash and increase its liquidity. Therefore, the management of current assets is considered as one of the ways to meet the need for capital.
In order to manage current assets, indicators of their turnover and factor analysis of turnover indicators are used, although they are more likely to confirm a particular opinion than a fundamental argument for making a management decision.
Since current assets include both tangible and financial resources, not only the process depends on their organization and efficiency of use material production but also the financial stability of the enterprise.
However, it should be emphasized that the period of funds in circulation is largely determined by the internal conditions of the enterprise, and primarily by the effectiveness of its asset management strategy (or lack of it). Indeed, depending on the pricing policy applied, the structure of assets, the methodology for assessing inventories, the enterprise has more or less freedom to influence the duration of the turnover of its funds.
The value of the turnover ratio of current assets is directly affected by the methodology adopted at the enterprise for their assessment, and based on the tasks and the chosen asset management strategy, the enterprise has a certain ability to regulate the value of the turnover ratio of its assets.
AT general case the turnover of funds invested in property can be estimated by the following main indicators: the turnover rate (the number of revolutions that the capital of the enterprise or its components make during the analyzed period) and the turnover period - the average period for which they return to the economy invested in production and commercial operations cash.
Working capital analysis allows you to:
Assess the efficiency of resource use in operational activities enterprises;
Determine the liquidity of the company's balance sheet, that is, the ability to repay short-term obligations in a timely manner;
Find out what the company's own working capital is invested in during the financial cycle.
The size and structure of working capital should correspond to the needs of the enterprise, which are reflected in the budget, while current assets should be minimal, but sufficient for the successful and uninterrupted operation of the enterprise.
The main tasks of the analysis of working capital: the study of changes in the composition and structure of working capital; grouping of working capital according to the main features; determination of the main sources of working capital formation; determination of the main indicators of the efficiency of the use of working capital.
The tasks of a comprehensive economic analysis of the state and use of working capital of the organization are:
1. Determining the amount of working capital necessary to ensure the continuity of the organization's business activities;
2.
Inventory Compliance Check material assets established standards and the identification of excess and unnecessary organization of materials in the composition of production stocks;
3. Ensuring the safety of working capital, i.e. identification and minimization of losses of working capital;
4. Ensuring the use of working capital for its intended purpose;
5. Determination of the influence of the organization of material and technical supply and the completeness of the use of material resources on the most important indicators of the organization's work (output, cost, labor productivity, etc.);
6. Justification of the effectiveness of the use of working capital by accelerating their turnover and conditional release from circulation;
7. Rationale optimal need in material resources;
8. Identification of reserves to improve the efficiency of the use of working capital.
The totality of the state and efficiency of the use of working capital studied in the process of analysis gives a comprehensive description of the state and efficiency of their use.
The main source of data for the analysis of the working capital of an enterprise is the balance sheet (form No. 1) and the income statement (form No. 2).
The balance sheet characterizes the composition, placement and purpose of the enterprise's funds on a certain date. The balance sheet is in the form of a table, consists of two parts - an asset and a liability. The asset shows the composition, placement and use of funds grouped according to their functional role in the economy.
The income statement contains information on the financial results of the enterprise (profit), as an effect of the use of working capital.
The composition, content and quality of the information that is involved in the analysis play a decisive role in ensuring the effectiveness of the analysis of economic activity. Sources of information for the analysis of the turnover of working capital are of an accounting nature, i.e. this is the data that contains accounting documents. These include the balance sheet (form No. 1) and the income statement (form No. 2), approved by order of the Ministry of Finance of the Russian Federation dated July 22, 2003 No. 67n.
Certain requirements are imposed on the initial information. Among the most important are relevance, reliability, comparability, rationality and meaningfulness. The relevance of accounting information means its timeliness, value, usefulness for evaluating results and forecasting. The reliability of information is characterized by truthfulness, compliance with regulations and internal regulations, neutrality, verifiability and transparency, prudence - reflecting expenses and losses before income and profits. The rationality of economic information implies its sufficiency, efficiency and the absence of unnecessary data.
An important stage in the analysis is the preparation of information, which includes data verification, ensuring their comparability, and simplifying numerical information.
First of all, the information collected for analysis should be checked for goodness. The check is carried out from two sides. Firstly, the analyst checks how complete the data contained in reports, tables and other documents is, whether they are correctly formatted. Be sure to check the correctness of arithmetic calculations, as well as the consistency of the indicators given in different reports and tables.
Secondly, all the data involved in the analysis are checked on the merits, during which it is determined how much this or that indicator corresponds to reality. The means of this verification are both logical understanding of the data and verification of the state of accounting, mutual consistency and validity of indicators from different sources.
The analysis will be much less time-consuming if the comparability of indicators is ensured. To do this, after checking its good quality, all numerical information is brought into a comparable form, using methods for neutralizing the impact of cost, volume, quality and structural factors by bringing them to a single basis, as well as using average and relative values, correction factors, conversion methods, etc.
Let us consider in more detail the sources of information for the analysis of the turnover of current assets.
Form No. 1 - balance sheet - characterizes the financial position of the organization as of the reporting date. Data for the purposes of our analysis, i.e. information on the state of working capital, as well as their elements: inventories, settlements with debtors, short-term financial investments and cash are reflected in section II of the balance sheet.
The subsection "Reserves" contains the bulk of the current assets of the enterprise, or rather assets of a material nature, directly included in the production and technological process. The composition of inventories in the reporting reflects: finished products, work in progress, raw materials and materials, goods shipped.
This article may constitute a significant specific gravity not only in the composition of working capital, but also in the assets of the enterprise as a whole, which may indicate the difficulties of the enterprise with the sale of its products, violation of production technology and the choice of inefficient methods of implementation, the specifics of a particular production, associated, for example, with the duration of the production cycle or its seasonal cyclicity .
Accounts receivable - the next element of working capital, which is the requirements of the enterprise in relation to other enterprises, organizations, customers to receive funds for the supply of goods or the provision of services. In the balance sheet, receivables are reflected in two groups of items depending on the timing of expected payments: receivables, payments on which are expected within 12 months after the reporting date, and receivables, payments on which are expected more than 12 months after the reporting date
There are two types of receivables - normal and overdue. Normal receivables arise as a result of the applied forms of payment for the delivered products, services rendered, work performed and are not the result of shortcomings in the work of the enterprise. Overdue receivables arise as a result of the unsatisfactory performance of the enterprise, for example, if the recipients of the products violate the terms of payment, if shortages, embezzlement and theft of inventory and cash are identified. The presence of large receivables should be considered as a factor that negatively affects the financial position of the enterprise, and its growth in dynamics - about the deterioration of the financial situation.
Short-term financial investments are liquid securities that bring income to the enterprise in the form of interest or dividends. They can be easily sold on the securities market and converted into cash.
The group of cash items reflects the balance of cash on hand, on current accounts and foreign currency accounts in banks and monetary documents. Cash is a specific type of enterprise assets, which are a universal means of payment for attracting any resources to the enterprise. According to its content, the item “cash” is the amount of money remaining on the bank’s current account (demand deposit) in national and foreign currency, as well as a certain amount of cash kept in the cash desk of the enterprise as of the balance sheet date.
The article other current assets shows the amounts that are not reflected in other articles of section II of the balance sheet.
Form No. 2 - income statement - contains a comparison of the amounts of all income of the enterprise from the sale of goods, the provision of services, as well as income and receipts from other activities with the sum of all expenses incurred by the enterprise to maintain its activities for the period from the beginning of the year. As part of the analysis of the turnover of working capital, information is used in the income statement on the proceeds (net) from the sale of goods, products, works, services (net of VAT, excises and similar obligatory payments).
In addition to the above forms of external reporting, information from analytical accounting is also used to analyze the turnover of receivables: data from order journals or statements replacing them, accounting for settlements with buyers and customers, with suppliers for advances issued, accountable persons, with other debtors.
2.3 Main indicators and directions of their analysis
Ratio Analysis – this is a calculation of relative financial indicators, based on the absolute indicators of current assets, is the ratio of interconnected units.
Business activity indicators allow assessing the financial position of the enterprise in terms of solvency: how quickly funds can be converted into cash, what is the production potential of the enterprise, is equity capital used effectively and labor resources how the company uses its assets to generate income and profit.
The general indicators of business activity include, first of all, turnover indicators. The following indicators are used in theory and practice:
1. The turnover ratio of working capital and the duration of their turnover
|
Sales proceeds - Line 010 f.2;
OA cf. - arithmetic average for current assets (beginning and end of the year - line 290);
The turnover of current assets depends not only on the size of the minimum working capital required for economic activity, but also on the amount of costs associated with the possession and storage of stocks. In turn, this affects the cost of production and, ultimately, the financial results of the enterprise. Everything necessitates constant monitoring of current assets and analysis of their turnover to determine the production and commercial cycle.
Comparison of turnover ratios in dynamics by years reveals trends in the efficiency of the use of working capital. If the number of turnovers made by working capital increases or remains stable, then the enterprise works rhythmically and uses working capital rationally. The decrease in the number of turnovers made in the period under review indicates a decrease in the pace of development of the enterprise and its unfavorable financial condition.
An important factor in improving the financial condition of the enterprise is the acceleration of the turnover of working capital (reducing the duration of turnover). The duration of the turnover is expressed in days and is calculated as follows:
T – the number of days in the analyzed period (360, 270, 180, 90, 30);
As a result of the acceleration of the turnover of working capital, there is a conditional release of working capital, that is, their savings. With a slowdown in turnover, there is an additional attraction of working capital to service production, that is, an overrun.
The release or additional attraction of working capital due to the acceleration (deceleration) of turnover is calculated as follows:
A conditional release of working capital is considered a positive effect when ΔOA is a negative value. When ΔOA has a “+” sign, this is a negative effect of a change in the turnover rate of working capital.
2. Inventory turnover ratio;
The turnover and duration of the turnover of inventory or inventories characterizes the use of circulating productive capital. The amount of production resources diverted from the production process depends on the use of the latter. The formation of inventory balances and the efficiency of their use largely depend on the speed of their turnover, which, in turn, is affected by the regularity, speed of deliveries and the one-day need for raw materials, materials, fuel, etc. Industrial stocks (raw materials, materials) provide the organization with the freedom to procurement. Inventory levels should be high enough to meet the need for them in cases of need.
The main indicators calculated in this block of analysis of current assets turnover are:
Inventory turnover ratio - the ratio of the cost of products sold for reporting period, to the average value of stocks in this period. This ratio shows how many times the company's inventory is sold on average over a certain period of time.
 |
Cost price products sold- Page 020 f.2
Stocks = Line 210 f.1 + Line 220 f.1
Zap. Wed . = arithmetic average for reserves (beginning and end of the year);
There are several types of inventory turnover:
The turnover of each item of goods in quantitative terms;
The turnover of each item of goods by value;
Turnover of a set of items or the entire stock in quantitative terms;
The turnover of a set of items or the entire inventory by value.
The turnover ratio can be calculated according to different parameters and for different time periods, for one item or for a combination of inventory items.
The duration of inventory turnover (duration of the production cycle) is expressed in days and is calculated as follows:
This indicator can also be calculated based on the full cost of goods sold instead of sales revenue:
(7)
3. The turnover ratios of receivables and cash and short-term financial investments;
The accounts receivable turnover ratio, which characterizes the ratio of sales proceeds to the average value of receivables, shows the expansion or decrease in commercial credit provided by the enterprise.
The turnover period of receivables (repayment) in days characterizes the average repayment period of receivables, and shows how many days, on average, one sales cycle is carried out: the lower this indicator, the more efficiently the company sells its products:
The longer the period of receivables turnover, the higher the risk of non-payment. An increase in receivables is possible for the following reasons:
Carrying out an imprudent policy of the enterprise in relation to buyers;
Indiscriminate choice of partners;
Insolvency of counterparties;
Increasing sales volumes;
Difficulties in selling products.
It is necessary to analyze the structure of receivables. The risk factor may be the uneven distribution of receivables between debtors, i.е. the presence of one or two debtors, which account for the bulk of the debt. Having discovered a negative change in accounts receivable, it is necessary to consider ways to improve it. The first step may be to review and change the existing policy of selling on credit, for which it is necessary to tighten the terms of loans, evaluate and control consumers, use discounts or other incentives to expedite payments from debtors. In addition, it is necessary to review and change the procedures for receiving payments.
The debt collection period (Tink.) is calculated based on the expected sales revenue with a deferred payment for the analyzed period:
(9)
Formation of the collection procedure for receivables:
As part of this procedure, the terms and forms of preliminary and subsequent reminders to buyers of the date of payments, the possibilities and conditions for prolonging the debt on the granted loan, and the conditions for initiating bankruptcy proceedings against insolvent debtors should be provided.
Inventory turnover characterizes the mobility of funds that the company invests in the creation of stocks: the faster the money invested in stocks is returned to the enterprise in the form of proceeds from the sale of finished products, the higher the business activity of the organization.
The calculation of the turnover period of cash and short-term financial investments is as follows:
The list of calculated coefficients can be expanded, depending on the goals of the analysis and the constituent elements of working capital (for example, the turnover ratio of finished products, etc.).
4. Return on working capital.
The return on working capital illustrates the company's ability to generate income from its core business, i.e. their normal business operations. Operating income excludes elements of income from the sale of assets or the ownership of corporate rights of other enterprises. Since the working capital of an enterprise is that part of the assets that are directly and almost daily used in the course of the enterprise's activities, when evaluating the effectiveness of their use, it is advisable to compare operating profit with the average value of working capital for the period.
Return on working capital gives a comprehensive assessment of the effectiveness of the use of working capital of the enterprise. Profitability shows the amount of profit from the sale of products (works, services) per 1 rub. funds invested in the activities of the enterprise. The indicator of profitability of working capital is calculated by the formula:
(12)
R ob.cap. = p. 140 (F. No. 2) / average on p. 290 (F. No. 1);
The indicator can be presented as a product of two other indicators: return on sales and turnover of current assets.
The profitability of funds most fully characterizes the efficiency of the financial activity of enterprises, commensurating the results with the costs. Return on working capital is usually studied over a long period (5-10 years); analyze the absolute size and rate of its change, and most importantly, identify forecast reserves for growth.
2.4 Analysis of the turnover of current assets of Yuzhnaya Zvezda LLC
The rational use of working capital contributes to an increase in the sale of goods with a smaller amount of material and monetary costs, the release of which is an additional source of increasing the efficiency of economic activity. As a result of the acceleration of turnover, working capital is released, less stocks of raw materials, fuel, materials are required, and, consequently, financial resources are also released.
The calculation of turnover ratios is presented in table 2.4.
The indicator that gives the most generalized idea of the economic activity of the enterprise is the asset turnover ratio.
Table 2.4.
Turnover indicators of Yuzhnaya Zvezda LLC
Indicator |
2005 | 2006 | 2007 | Change ( + ) | |
| 2006 to 2005 | 2007 to 2006 | ||||
| Proceeds from the sale of products (works, services), thousand rubles | 76418 | 121827 | 181361 | 45409 | 59534 |
| The average annual amount of working capital, thousand rubles. | 29597,5 | 35770 | 92598 | 6172,5 | 56828 |
| Working capital turnover ratio | 2,58 | 3,41 | 1,96 | 0,82 | -1,45 |
| 141 | 107 | 186 | -34 | 79 | |
| Average annual amount of reserves, thousand rubles | 12678 | 13988 | 14776 | 1310 | 788 |
| Inventory turnover ratio | 6,03 | 8,71 | 12,27 | 2,68 | 3,56 |
| Turnover duration, days | 61 | 42 | 30 | -19 | -12 |
| Average annual amount of accounts receivable, thousand rubles | 6752,5 | 3284 | 38197,5 | -3468,5 | 34913,5 |
| Accounts receivable turnover ratio | 11,32 | 37,10 | 4,75 | 25,8 | -32,3 |
| Turnover duration, days | 32 | 10 | 77 | -22 | 67 |
Chapter 3. Identification of reserves for the efficiency of the use of current assets
3.1 Consequences of acceleration (deceleration) of working capital turnover
As part of the study, in accordance with the studied methodology for the analysis of current assets, it is necessary to graphically present their structure (Fig. 3.1.), To determine their most significant components. In paragraph 2.1. current assets were studied in fragments, indicators of structure and dynamics for the analyzed period were calculated.
Rice. 3.1. Structure of current assets of Yuzhnaya Zvezda LLC
The graphical representation of the structure determines that the essential components of current assets are: short-term financial investments - 51%; goods for resale - 34%; accounts receivable - 11%. From the point of view of the type of activity of the object of study, we are more interested in receivables and goods for resale. Short-term financial investments, taking into account the data of financial statements, are loans provided to other organizations.
In modern conditions, many enterprises are experiencing a lack of working capital, that is, a situation where the standard exceeds the amount of working capital. The reason for its occurrence may be the non-fulfillment of the plan for profit, the use of profit for purposes not provided for by the plan, untimely financing of the standard of working capital, diversion of working capital, i.e. immobilization.
The immobilization of working capital is their withdrawal from the continuous planned circulation. Any immobilization of working capital testifies to their inefficient use, leads to a slowdown in turnover and a deterioration in the solvency of the enterprise. It is necessary to distinguish between immobilization that has arisen as a result of the use of working capital for other purposes, that is, for purposes not at all connected with the circulation of funds, and immobilization that has arisen as a result of a slowdown in the circulation of funds at its individual stages.
The following main ways to accelerate the turnover of working capital can be distinguished:
At the stage of preparation for production - calculation of scientifically based norms and norms of working capital;
At the production stage - reducing the duration of the production cycle through automation, complex mechanization, the use of the latest scientific discoveries and technical inventions, replacement of expensive materials with cheaper ones, reuse of containers, tools, rhythm of production, etc.;
At the stage of circulation - increasing the volume and ensuring the rhythm of the sale of products, which contributes to the uninterrupted shipment to customers and the timely receipt of funds for it to the current account; development of the settlement system in the national economy, timely execution of documents and strict observance of payment discipline.
Turnover ratios help to determine how efficiently the company uses its assets and sources of their financing.
Turnover characterizes the amount of funds that the company must invest in the business for its normal functioning.
Turnover ratios help evaluate the effectiveness of not only enterprise management as a whole, but also individual services. Turnover analysis allows you to identify hidden capital reserves in the enterprise and thus sometimes refuse to use borrowed “paid” financing.
The financial position of an enterprise is largely determined by how quickly the funds invested in assets turn into real money. Accelerating the turnover of working capital allows either, with the same volume of sales, to release part of the working capital from circulation, or, with the same amount of working capital, to increase the volume of sales. In this regard, turnover rates are also called indicators of business activity. To assess the effectiveness of the use of assets, indicators of asset turnover in general, current assets, as well as inventories and receivables are used.
The turnover ratio of current assets reflects the number of turnovers committed by the property for the analyzed period. It is a stimulant indicator and therefore should tend to increase. It characterizes the efficiency of the enterprise's use of all available resources, regardless of the sources of their attraction. This coefficient shows how many times a year a full cycle of production and circulation is completed, bringing the corresponding effect in the form of profit.
The turnover for the analyzed periods from 2005 to 2006 increased from 2.58 to 3.41, and from 2006 to 2007 it sharply decreased from 3.41 to 1.96, which is a negative trend and indicates a fall the pace of turnover, sales, lowering the efficiency of resource use, the overall profitability of production, as well as increasing the instability of the financial condition of the enterprise. Moreover, the turnover decreased both due to the growth of current assets, and because of the decrease in revenue.
The duration of the turnover is a decoding of the turnover indicator and shows how many days current assets go through a full cycle. As a result of the acceleration of the turnover of working capital, there is a conditional release of working capital, that is, their savings. It is expressed in days and is calculated as follows:
Boa \u003d T / K vol.oa \u003d T x OA cf. / Revenues from sales; (2)
If in 2005 the period of one turnover was 141 days, then in 2006 it was 107 days, and in 2007 it was 186 days.
With a slowdown in turnover, there is an additional attraction of working capital to service production, that is, an overrun.
Additional attraction of working capital due to a slowdown in turnover is calculated as follows:
rOact \u003d (Boa 1 - Boa 0) x Comp.r 1 / T 1;
In 2005, the overspending of working capital amounted to 87552.5 thousand rubles, that is, these funds did not participate in the turnover, because of this, the efficiency of working capital use and the overall profitability of the enterprise decreased. In 2006, the overspending decreased by 280 times to 312.3 thousand rubles, but remained positive, which coincides with a slowdown in the rate of decline in the turnover of current assets and indicates a reduced, but ongoing decline in the efficiency of working capital use. In 2007, the additional attraction of current assets increased to 52,608.9 thousand rubles, which indicates a deterioration in the rationality of the enterprise's economic activity and an even greater decrease in the profitability of production.
The inventory turnover rate is one of the critical factors affecting the overall turnover of working capital. The inventory turnover period is the average period of time required for the transformation of raw materials into finished products and subsequent sale.
With an increase in inventory turnover, the period of one turnover decreases accordingly. Which is a positive change and indicates that the company uses resources rationally. Current assets are concentrated in liquid form and this leads to an increase in their turnover and an increase in profits.
With regard to the stocks of the organization: the speed of their turnover increases, which is a positive trend, the movement and change in the form of stocks occurs faster, which reduces the risk of deadening of funds in stocks; in 2005, stocks managed to complete one turnover in 61 days, in 2006 - in 42 days, in 2007 - in 30 days. The lower this indicator, the more efficient the work of the trade organization.
Since a significant proportion of Yuzhnaya Zvezda's inventory belongs to goods for resale, management should monitor the immobilization of working capital in the context of product groups. To do this, it is necessary to study the structure of goods for resale, monitor its changes on a quarterly basis. Due to insufficient data, we analyzed the structure of goods for resale only for 2007, the following results were obtained (Fig. 3.3).
Rice. 3.3. Structure inventory for resale by Yuzhnaya Zvezda LLC in 2007.
As you can see, the largest share in the total value of inventory is occupied by flower crops - 45%; accessories for plants and planting material have approximately the same shares - 20% and 14%, respectively.
As a result of the analysis, we received the amount of additionally attracted working capital as a result of a slowdown in the turnover of current assets.
Table 3.1
Overspending of working capital as a result of a slowdown in the turnover of current assets (thousand rubles)
The system of generalizing and particular indicators of the turnover of working capital is based on two interrelated financial ratios: the turnover ratio and the duration of one turnover, characterizing the efficiency of the use of working capital, and in particular the turnover turnover of inventories, turnover and maturity of receivables, etc.
In terms of their content, turnover indicators are direct indicators of the efficiency of the resource type, i.e. characterizing the ratio of effect to costs. The original is applied as an effect. financial indicator- sales revenue. Quantitatively, the costs are expressed through indicators of advanced resources, which gives reason to attribute the turnover indicators to the resource type. In other words, turnover is characterized by a comparison of indicators of production volume and the value of advanced working capital.
The duration of the funds in circulation is influenced by external and internal factors.
External factors include: the scope of the organization; industry affiliation; the scale of the organization; the economic situation in the country and related business conditions.
Internal factors - the pricing policy of the organization, the structure of assets, the methodology for estimating reserves.
Reserves and ways to accelerate the turnover of working capital in a generalized form depend on two factors: production volumes, sales and the size of working capital.
To improve production and marketing, to normalize the allocation of working capital;
Improve the organization of production and marketing, introduce progressive forms and methods;
Do not allow the growth of receivables.
The efficiency of the use of working capital of enterprises, therefore, depends primarily on their ability to improve the organization of production and marketing, to increase the level of commercial and financial work.
Particular attention is paid to the study of the causes identified for certain types of current assets and the development of measures to optimize them. An increase in inventories may be the result of deficiencies in the organization of trade, advertising, studying customer demand, etc. marketing activities, the presence of unclaimed and slow-moving production.
Large balances of cash on hand and on the way arise due to the irregular development of sales, untimely delivery of proceeds to the bank, unused funds and other violations cash discipline. Excess balances of other inventory items are the result of the presence or acquisition of surplus and unnecessary materials, raw materials, fuel, low-value and wearing items, and other material assets. Reduce stocks of goods, materials, raw materials, fuel to optimal sizes it is possible through their wholesale or barter transactions, uniform and frequent delivery. The rhythmic development of trade turnover contributes to the normalization of the balances of goods and cash at the checkout on the way.
Bank accounts should keep the minimum required amount of money, and all free balances should be transferred to the early repayment of loans received, invest in securities, provide loans to legal and individuals. In case of overspending of funds for special purposes and reserves, the main attention is paid to the development of measures for its repayment and prevention.
3.2 Factor analysis of indicators of turnover of working capital
Indicators of turnover of working capital can be considered as a performance indicator with the allocation of factors of the first and subsequent orders. The duration of the turnover of working capital depends on the average size of working capital and sales proceeds. Therefore, the total change in the rate of turnover will consist of two components: the average annual size of current assets (OA avg.) - a factor of the first order, and sales proceeds (Vr.r.) - a factor of the second order.
The change in the duration of the turnover of working capital due to the change in the average size of current assets is calculated as follows:
ΔB (OA avg.) = T x ΔOA avg. / Eq.r.0; (thirteen)
Substituting the available data into the formula, we get that the duration of one turnover of working capital in days in 2007 increased by 170 days due to changes in the average size of current assets (for convenience, you can use table 2.4.).
In general, from 2005 to 2007, the change in current assets negatively, although not too significantly, affected the turnover of current assets and the period of their turnover, which was mainly caused by an increase in the total mass of current assets and, in particular, an irrational economic strategy in terms of purchasing materials and marketing finished products. To increase turnover, an enterprise needs to keep current assets in a more liquid form and prevent growth and large fluctuations in receivables and marketable products in stock, that is, to revise the marketing policy for the sale of products, if possible in principle.
The influence of the second-order factor (revenue from product sales) on the change in the performance indicator is expressed as follows:
ΔB (vyp.r.) \u003d T x OA cf.1 x [ (1 / Vyr.r.1) - (1 / Vyr.r.0) ]; (fourteen)
We get the following:
ΔB (Ver.r.) \u003d 365 x 92598 x [ (1 / 181361) - (1 / 121827)] \u003d -91 days;
The size of average working capital on the turnover of current assets affected the increase in the duration of turnover by 170 days, and the increase in sales proceeds reduced the duration of turnover by 91 days. The multidirectional influence of factors led to a general change in the duration of the turnover by 79 days (170-91=79). Therefore, the desire to increase sales revenue will always give a positive result in the form of an increase in the turnover rate of current assets.
ΔV (Ver.r.) = ΔVVer.r.(PZ) + ΔVVer.r.(KR) + ΔVVer.r.(UR) + ΔVVer.r.(RP); (fifteen)
Due to the cost (variable costs):
ΔВvyr.r. (PZ) \u003d ΔV (vyr.r.) x ΔPZ / ΔVyr.r.; (sixteen)
ΔВvyr.r. (PZ) \u003d -91 x (164049.77 - 105965.718) / 59534.335 \u003d -84.2 days;
From business expenses:
ΔVvyr.r. (KR) = ΔV(Vyr.r.) x ΔKR / ΔVyr.r.; (17)
ΔВvyr.r. (KR) \u003d -91 x (18869.557-15368.35) / 59534.335 \u003d -5.35 days;
Due to the result of sales (profit):
ΔVvyr.r. (RP) = ΔV(Vyr.r.) x ΔRP / ΔVyr.r.; (eighteen)
ΔВvyr.r. (RP) \u003d -91 x (1441.711-492.635) / 59534.335 \u003d -1.45;
The balance of deviations converges:
ΔV (Ver.R.) = ΔVVer.R.(PZ) + ΔVVer.R.(KR) + ΔVVer.R.(UR) +
ΔВvyr.r. (RP) \u003d -84.2-5.35-1.45 \u003d -91; (nineteen)
3.3 Efficiency in the use of current assets and ways to improve it
To increase the turnover of working capital, the company South Star LLC needs to use working capital more efficiently and change the amount of turnover and its structure, use progressive methods of selling products, etc. It is recommended that the company reduce the stock of materials to the optimal level, increase the liquidity of current assets (by and an increase in cash) and prevent the growth and large fluctuations in receivables and marketable products in stock, that is, to review the marketing policy for the sale of goods.
To speed up turnover, you need to:
Fully and rhythmically fulfill business plans;
Improve settlements with suppliers and buyers;
Improve claims handling;
Accelerate the turnover of funds by improving the collection of proceeds, strict limitation of cash balances in the cash desks of the enterprise, on the way, on the bank account;
Minimize stocks of household materials, low-value and wearing items, inventory, workwear in the warehouse, reduce accountable amounts, deferred expenses;
Conclusion
The condition and efficiency of the use of working capital is one of the main conditions for the successful operation of an enterprise. Limited resources, instability of the market economy, inflation, non-payments, and other crisis phenomena are forcing enterprises to change their policy in relation to current assets, look for new sources of replenishment, study the problem of their efficient use, their optimal size.
Working capital is a set of funds advanced for the creation and use of working capital and circulation funds, which ensure the continuity of the production process and the sale of products.
The presence of working capital in the minimum required amount, ensuring the normal production and commercial activities of the enterprise, is an indispensable condition successful implementation them of their functions.
Any type of analysis requires reliable and high-quality information. After checking the completeness and reliability of the information, its analytical processing is carried out, i.e. a system of indicators is determined, the study of which is required to achieve the goals of the analysis. These indicators are either already contained in the selected information, or are calculated in the process of its analytical processing. Analytical processing of information is possible with the help of modern software.
It should be noted that most economic analysis software products are focused on retrospective analysis. financial ratios. Many issues of financial analysis still remain poorly developed. Thus, it is generally accepted that the center of financial management in an enterprise is the management of financial flows. Wherein operational management It is the cash flow that makes it possible to ensure the solvency of the organization. This task should be closely intertwined with the tasks of accounting for the sale of products, regulating the volume of sales and purchases, i.e. it fits into a complex universal system of managerial tasks; but in modern software products this task has not been worked out enough.
A retrospective analysis allows you to generate high-quality initial information for subsequent forecasting and planning.
Gradually, new software products appear on the market that provide solutions to analytical problems, but the change in external and internal factors of management, in turn, poses new, more complex tasks. The solution of such analytical problems is a serious theoretical and methodological study in organic unity with software products.
Study of theoretical aspects the concept of "reserves" allows us to draw the following conclusions. The concept of "reserves" is used in science and practice in the analysis of the activities of economic entities in a dual sense. First, reserves are material resources that are temporarily not used for their intended purpose. These reserves are created for additional needs, in order to use them under certain circumstances. They are expressed in specific material elements, these are stocks of raw materials, materials, fuel, semi-finished products, uninstalled equipment, free production areas.
Secondly, reserves are untapped opportunities to increase production efficiency, enhance the effect of factors that contribute to the growth of economic efficiency, and eliminate the negative impact of other factors. The identification of such reserves is the main task of economic analysis.
The search for reserves must be carried out purposefully and systematically in the main areas, without dissipating forces to identify secondary and insignificant reserves. From this follows the relevance of developing principles for organizing the search for reserves.
The main drawback of the current practice of searching for reserves is that it mainly boils down to identifying unconditional losses and resource overruns. The bulk of the reserves lurking in the overplanned acceleration of scientific and technological progress, the mobilization of which leads to an increase in the use of the scientific, technical and production potential of the analyzed object, most often is not revealed.
As a result of the analytical part of the work, the following conclusions were obtained.
The organizational and legal form of the enterprise under study is a limited liability company. Company location: legal address- Krasnodar, street 70 years of October, 8; the actual address is Krasnodar, Krasnykh partisan street, 4/1 (Appendix A). The main activities of Yuzhnaya Zvezda LLC are the sale of the following products: flower crops, indoor plants, open ground plants, planting material, seeds and bulbs, soil mixtures, plant accessories, and plant care products.
The calculation of indicators of the dynamics and structure of the asset balance showed the following. The value of the property of the organization increased by 28.1% in 2006 compared to 2006, and almost 8 times in 2007 compared to 2006. Such a sharp and significant increase was caused by: firstly, an increase in the amount of non-current assets (construction in progress) by 146 times at the end of 2007 compared to 2006; secondly, a significant increase in receivables in the same period - 16 times; thirdly, the growth of the amount of current assets - by 29.6% in 2006 compared to 2005, and their increase by 3.6 times by the end of 2007.
It should be noted that the share of current assets in the total value of the organization's property decreased by the end of 2007 from 96.9% to 43.2%. This situation is associated with the appearance of a significant amount in the asset balance under the item "Construction in progress".
The increase in current assets was due to the growth of receivables by 16.3 times in 2006-2007, the share of debt in the amount of current assets increased by the end of 2007 to 49.7%, and the qualitative component of receivables is the debt of buyers and customers .
It should be noted that long-term obligations in the sources of formation of economic assets of the enterprise appeared by the end of 2007, which was associated with obtaining a loan for construction storage facilities. The rest of the mass of liabilities consists of short-term borrowed funds and equity, which is represented by authorized capital and retained earnings. Due to the emergence of long-term liabilities during 2007, the organization's equity decreased its share in the sources of funds from 32.1% in 2005 to 3.3% in 2007. Long-term liabilities in the total amount of liabilities by the end of 2007 amounted to 71 .7%; 23.0% of all liabilities belong to short-term borrowed funds, and their share has not changed significantly over three years and most of them are accounted for by the organization's accounts payable to suppliers and contractors: in 2005. - 32.9%, 2006 - 21.9%, 2007 – 22.9% of total liabilities.
According to reporting and calculation data, the cumulative impact of first-order factors on sales profit led to its decrease by 279 thousand rubles. in 2006 compared to 2005, and then to an increase of 948 thousand rubles. in 2007 compared to 2006. Growth in sales proceeds as a factor had a positive effect on the amount of profit, an increase in the amount of selling expenses and cost of goods sold had a negative effect.
On the basis of the study, it can be concluded that the results of the financial and economic activities of Yuzhnaya Zvezda LLC, the structure and dynamics of the main economic indicators, are characteristic of the organization of trade; processes and phenomena of the period 2005-2007. are explained by the influence of various internal and external factors; the financial condition of the object of study during the period under review can be called stable.
Calculations of the main coefficients show the following: the turnover rate of all working capital of the organization is decreasing: if in 2005. current assets made 2.58 turnovers, in 2006 3.41, then in 2007. the number of turnovers made by assets decreased to 1.96 times. A decrease in the turnover ratio increases the duration of one turnover in days for the period 2005-2007, with a slight decrease in the duration of turnover in 2006 - by 34 days, but with a significant increase in 2007 - by 79 days.
With regard to the stocks of the organization: the speed of their turnover increases, which is a positive trend, the movement and change in the form of stocks occurs faster, which reduces the risk of deadening of funds in stocks; in 2005, stocks managed to complete one turnover in 61 days, in 2006 - in 42 days, in 2007 - in 30 days. The lower this indicator, the more efficient the work of the trade organization.
The turnover rate of accounts receivable decreases, this is a negative characteristic of the organization of settlements with debtors, an increase in the duration of the turnover of accounts receivable in days leads to the fact that free cash is diverted from the turnover.
The main factor in accelerating turnover in the working capital management system is a reasonable relative decrease in stocks: the smaller the stock manages to maintain the rhythm of the production and technological process (in our case, the turnover), the higher the efficiency and profitability of the economic entity.
In 2007, the share of short-term financial investments decreased to 17%, while a significant share in the total amount of current assets belongs to goods for resale - 11%; the share of receivables in working capital also increased - up to 49%, which is already a negative point: in 2007, half of the organization's working capital is used not for the purposes of economic turnover, it is excluded from it, which naturally reduces the efficiency of the organization's economic activity.
With regard to the stocks of the organization: the speed of their turnover increases, which is a positive trend, the movement and change in the form of stocks occurs faster, which reduces the risk of deadening of funds in stocks; in 2005, stocks managed to complete one turnover in 61 days, in 2006 - in 42 days, in 2007 - in 30 days. The lower this indicator, the more efficient the work of the trade organization.
Since a significant proportion of Yuzhnaya Zvezda's inventory belongs to goods for resale, management should monitor the immobilization of working capital in the context of product groups. To do this, it is necessary to study the structure of goods for resale, monitor its changes on a quarterly basis.
As a result of the analysis, we received the amounts of additionally attracted working capital as a result of a slowdown in the turnover of current assets: - 87553 thousand rubles, 2006 - 312.3 thousand rubles, 2007 - 52609 thousand rubles.
The size of average working capital on the turnover of current assets affected the increase in the duration of turnover by 170 days, and the increase in sales proceeds reduced the duration of turnover by 91 days. The multidirectional influence of factors led to a general change in the duration of the turnover by 79 days.
Therefore, the desire to increase sales revenue will always give a positive result in the form of an increase in the turnover rate of current assets.
Each of the three components of the proceeds from the sale of goods affected the duration of one turnover of current assets in days downward, which means that each factor contributed to an increase in the turnover rate: a change (increase) in commercial expenses reduced the turnover duration by 5 days; change (increase) in cost goods sold– for 84 days; change (increase) in sales profit - for 1 day. The most significant impact was the cost.
However, the positive impact of the growth in sales revenue failed to overcome the negative impact on the duration of one turnover of current assets average annual cost working capital. But as it turned out, such a significant growth was not associated with an increase in inventories, it was due to a significant increase in receivables from buyers and customers to Yuzhnaya Zvezda LLC, a reduction in its turnover rate from 37.1 in 2006 to 4.75 turnover in 2007 .
To speed up turnover, you need to:
Improve production and marketing, normalize the allocation of working capital: in order to increase the economic efficiency of production and marketing of products, it is necessary to make more intensive use of the created production potential, to achieve the rhythm of production and marketing of products;
Fully and rhythmically fulfill business plans;
Improve the organization of production and marketing, introduce progressive forms and methods: development of a supply plan, implementation plan, control over the implementation of these plans in terms of time, receipt of products from workshops, organization of shipment and other functions;
Improve settlements with suppliers and buyers;
Improve claims handling;
Accelerate the turnover of funds by improving the collection of proceeds, strict limitation of cash balances in the cash desks of the enterprise, on the way, on the bank account;
Minimize stocks of household materials, low-value and wearing items, inventory, workwear in the warehouse, reduce accountable amounts, deferred expenses;
Do not allow the growth of receivables. For this you need:
Avoid debtors with a high risk of non-payment, such as buyers representing organizations, industries, or countries that are in serious financial difficulty;
Periodically revise the limit on the issue of goods on credit based on the financial situation of buyers and their own; when selling a large number of goods, immediately issue invoices to buyers so that they receive them no later than one day before the due date of payment;
Determine the period of overdue payments on accounts receivable, comparing this period with the average for the industry, with data from competitors and with indicators from previous years;
When granting a loan or a credit, require a pledge in an amount not lower than the amount of receivables for an upcoming payment, use the services of institutions and organizations that collect debts with a surety;
Pay off debt by set-off, i.e. providing a counter homogeneous claim, replacing the original circumstance with another or providing another performance of debt obligations;
Sell debts of debtors to a bank that carries out factoring operations, or other organizations on the basis of an assignment agreement, if the losses from the unpaid debt are significantly less than the funds that need to be spent on its collection;
Exchange receivables for shares or shares in the authorized capital of the debtor enterprise in order to increase its influence in its business.
The efficiency of the use of working capital of enterprises, therefore, depends primarily on the ability to manage them, improve the organization of production and marketing, and raise the level of commercial and financial work.
Particular attention is paid to the study of the reasons for the identified deviations for certain types of current assets and the development of measures to optimize them. The growth of commodity stocks may be the result of shortcomings in the organization of trade, advertising, the study of customer demand, other marketing activities, the presence of unclaimed and slow-moving product groups.
Bibliography
1. Gilyarovskaya L.T., D.V. Lysenko, D.A. Endovitsky: “Comprehensive economic analysis of economic activity”. - M .: TK Velby, publishing house Prospekt, 2006
2. Markaryan E.A. “”Economic analysis of economic activity” Edition 2, corrected and supplemented - Rostov n / D, Phoenix, 2005,
3. Selezneva N.N., Ionova A.F., “Financial analysis. Financial management”: textbook for universities. - 2nd ed., revised. and additional – M.: Unity-Dana, 2003.
4. Lyubushin N.P., Leshcheva V.B., Dyakova V.G. “Analysis of the financial and economic activity of an enterprise”: Textbook for universities - M .: Unity-Dana, 2003.
5. M.S. Abryutina, A.V. Grachev “Analysis of the financial and economic activity of an enterprise”, Educational and practical guide, Moscow: Delo and Service Publishing House, 1998
7. L.E. Basovsky “Theory of economic analysis” M.: INFRA-M. – 2001
8. Shchiborshch K.V. Analysis of economic activity. – M.: Business and service, 2003.
9. Economic analysis: Textbook for universities / Ed. Gilyarovsky L.T. – M.: UNITI-DANA, 2001
10. Sheremet A.D. Methods of financial analysis. – M.: Infra-M, 2000.
11. Theory of analysis of economic activity / Ed. Osmolovsky V.V. - Minsk: New Knowledge, 2001.
12. Selezneva N.N. The financial analysis. – M.: Unity-Dana, 2001.
Page 1
Current assets (current assets) are the funds invested by the organization in current operations during each cycle. Characteristic features working capital are:
Full consumption during one production cycle and full transfer of value to newly created products;
· being in constant circulation;
During one turnover, working capital changes its form from cash to commodity and from commodity to cash, passing through the stages of purchase, consumption and sale.
The peculiarity of working capital is that in the conditions of normal economic activity, working capital is not spent, but is advanced in different kinds current costs of the organization, returning after the completion of each turnover to its original value.
The period of time during which the turnover of funds takes place is the duration of the production and commercial cycle, which consists of the time interval between the payment of money for raw materials and materials and the receipt of money from the sale of finished products.
Calculation and evaluation of indicators of turnover of working capital
The efficiency of the use of working capital is characterized primarily by their turnover.
Turnover of funds -
an indicator characterizing the speed of movement of working capital of an enterprise equal to the time during which these funds carry out a full turnover.
The acceleration of capital turnover helps to reduce the need for working capital, increase production volumes, and hence increase profits. As a result, the financial condition of the enterprise improves, solvency is strengthened.
The slowdown in turnover requires the attraction of additional funds to continue the economic activity of the organization, at least at the level of the previous period.
The duration of the stay of funds in circulation is influenced by factors of internal and external nature. External factors include: the scope of the organization, industry affiliation, the scale of the organization, the economic situation in the country and the related business conditions of this organization. Internal factors - the pricing policy of the organization, the structure of assets, the methodology for estimating reserves.
To assess the turnover of working capital, the following are used:
1. Turnover ratio.
Cob. - turnover ratio (in revolutions);
Вр - proceeds from the sale of products, works, services;
OS - the average value of working capital.
The turnover ratio shows the number of turnovers made by working capital for the analyzed period of time and characterizes the volume of sales per 1 ruble invested in working capital.
1. The duration of one revolution.
Dl - the duration of the period of circulation of working capital (in days);
T - reporting period (in days).
1. Working capital utilization ratio - an indicator that is inverse to the turnover ratio. Shows the amount of working capital per 1 rub. sold products. The lower the load factor, the more efficiently working capital is used.
multiplier 100 - converting rubles into kopecks.
The amount of absolute savings (attraction) of working capital can be calculated by the formula:
= (108-91) *39993993/360=1888605,1
The calculated value shows the amount of release (additional attraction) of funds received from the acceleration (deceleration) of the turnover of working capital.
The value of the increase in the volume of production due to the acceleration of the turnover of working capital can be determined using the method of absolute differences:
= (3,327-3,967) *12022792= - 7694586,8
The amount of profit growth as a result of a change in the turnover of working capital:
=
*3,327/3,967=855233*0,839=717540,48-855233= - 137692,52
Ppl - planned profit;
Table No. 16
Indicators of turnover of working capital.
|
Indicators |
Deviation |
Rates of growth, % |
|||
|
1. Volume of output, rub. (p.010, f. No. 2) | |||||
|
2. Number of days of the analyzed period, days. | |||||
|
3. Average value of working capital, rub. (p. 290, f. No. 1) | |||||
|
4. The turnover ratio of funds, about. (page 1/page 3) | |||||
|
5. Duration of one revolution, days (p.3 ´ p.2) / p.1 | |||||
|
6. Coefficient of working capital utilization, kop. (p.3/p.1 ´ 100) |
The turnover of funds invested in the property of the organization is to study the levels of dynamics of various financial turnover ratios, which allow us to assess how efficiently the organization uses its assets.
Economic value of turnover:
- 1) the value depends on it necessary organizations assets for the implementation of the process of production and marketing of products (goods, works and services);
- 2) the acceleration of capital turnover contributes to a reduction in the need for working capital (absolute release), an increase in production volumes (relative release) and an increase in profits. As a result, the financial condition of the organization improves, its solvency is strengthened.
Turnover ratios are of great importance for assessing the financial condition of the organization, since the rate of turnover of capital, that is, the rate of its transformation into cash, has a direct impact on the solvency of the organization. In addition, an increase in the rate of capital turnover reflects, ceteris paribus, an increase in the production and technical potential of the organization. To do this, the main indicators of turnover and one complex indicator "business activity index" are calculated, giving the most generalized idea of the economic activity of the organization.
Asset turnover ratios
When analyzing the economic activities of the organization, during the financial analysis, to assess the intensity of the use of fixed assets, the asset turnover ratio is used.
The asset turnover ratio (turnover ratio, capital productivity indicator) reflects the efficiency of the organization's use of all available assets, regardless of the sources of their formation.
This coefficient characterizes the number of turnovers and shows how many monetary units of sold products were brought by each unit invested in assets. The growth of the asset turnover ratio in the reporting period means an acceleration of asset turnover, indicates more effective management assets of the organization only if the organization is profitable.
Another characteristic of asset turnover is the indicator of the duration of one turnover in days.
A decrease in the duration of one turnover of assets means an acceleration of turnover, and an increase means a slowdown in the turnover of assets.
The main factors affecting the value and speed of turnover of the organization's assets are:
- -- the scale of the organization (small business, medium, large);
- -- the nature of the business or activity, i.e. the sectoral affiliation of the organization (trade, industry, construction);
- -- the duration of the production cycle (the number and duration of technological operations for the production of products, the provision of services, works);
- -- Quantity and variety of consumed types of resources;
- -- geography of product consumers and geography of suppliers and subcontractors;
- -- system of payments for goods, works, services;
- - solvency of clients;
- -- the quality of banking services;
- -- growth rates of production and sales of products;
- -- the share of value added in the price of the product;
- -- accounting policy of the organization;
- -- Qualification of managers;
- -- inflation.
Fixed assets turnover ratio.
The turnover of fixed assets is a return on assets, that is, it characterizes the effectiveness of the use of fixed assets (funds) of the organization for the period. It is calculated by dividing the volume of net sales proceeds by the average value of fixed assets for the period:
The fixed asset turnover ratio shows how many monetary units of sold products account for a unit of investment in fixed assets. This indicator allows you to assess the ability of the organization to recover investments in fixed assets.
The main condition for the growth of capital productivity is the excess of growth in labor productivity over the growth rate of its capital-labor ratio.
Current assets turnover ratio
Reflects the efficiency of using current assets.
The ratio shows how many units of sold products are per unit of investment in current assets. The dynamics of this indicator has a direct impact on the financial results and financial condition of the organization. Negative dynamics indicates a deterioration in the financial position of the organization. In this case, in order to maintain normal entrepreneurial activity the organization is forced to attract additional financial resources.
A slowdown in the turnover of current assets leads to an increase in their balances, an acceleration leads to their reduction. Thus, when their turnover slows down, the organization needs to attract additional financial resources, and when the turnover accelerates, funds are released from circulation. You can calculate the amount of additional funds raised in one turnover using the formula
P(V) - attraction as a result of a change in the turnover of current assets
BP - sales proceeds
D - duration of the analyzed period
TOA - the period of turnover of current assets in the analyzed period
TOP - the period of turnover of current assets in the previous period
Inventory turnover ratio
Shows the rate at which inventory was turned over during the reporting period
The growth of the indicator in dynamics is considered as a positive trend and is characterized as an acceleration of the turnover of funds in stocks. The decrease in the turnover of funds in stocks reflects the outstripping growth of stocks in relation to the growth in sales of products.
Accounts receivable turnover ratio
Shows how many times, on average, receivables are converted into cash during the reporting period.
business activity profitability capital
An increase in this ratio may reflect an improvement in the situation in settlements with debtors and / or a decrease in sales with deferred payment, a decrease - a deterioration in the payment discipline of debtors or an increase in the number of settlements with deferred payment.
Liabilities turnover ratios.
Liabilities turnover ratios allow you to assess how effectively the organization uses the funds attracted under various conditions. The turnover ratio of obligations is calculated both for the entire amount of obligations, and for its individual types.
The turnover ratio of credits and loans.
Reflects the effectiveness of the organization's use of all long-term and short-term loans and borrowings.
The dynamics of the turnover of credits and loans reflects changes in the payment discipline in relations with creditors, and a decrease reflects deterioration.
The accounts payable turnover ratio is calculated in a similar way.
The increase in the turnover of accounts payable indicates an improvement in payment discipline in relation to creditors or a reduction in purchases with deferred payment.
The turnover ratios of assets, equity and liabilities and the duration of their turnover equally reflect the business activity of the organization and therefore the use of one or another indicator is determined by the choice of a financial analyst.
The stability of the financial position of the organization and its business activity is also characterized by the ratio of the terms of turnover of receivables and payables. Comparison of turnover ratios allows you to compare the conditions for granting and receiving loans
Foreign experience in assessing the business activity of an enterprise
To characterize the business activity of joint-stock companies in accounting and analytical practice, economically developed countries in addition to tempo indicators, the stability coefficient is used economic growth, calculated by the formula:
The equity capital of a joint-stock company can be increased either by issuing additional shares or by reinvesting the profits received. Thus, the ratio shows at what pace, on average, equity capital increases due to financial and economic activities, and not by attracting additional equity capital.
Thus, the coefficient of sustainability of economic growth shows what, on average, can develop commercial organization in the future, without changing the existing relationships between various sources financing, capital productivity, profitability of production, dividend policy, etc. The relationship of this coefficient with these indicators can be described by a rigidly determined factorial model
Economic interpretation:
the first factor of the model characterizes the dividend policy in a commercial organization, which is expressed in the choice of an economically feasible ratio between the dividends paid and the accumulated part of the profit;
the second factor characterizes the profitability of sales;
the third factor characterizes the return on resources (an analogue of the well-known in domestic statistics indicator "capital productivity");
the fourth factor, which is the coefficient of financial dependence, characterizes the ratio between borrowed and own sources of funds.
The above factor model describes both the production (second and third factors) and financial (first and fourth factors) activities of a commercial organization. It follows that a commercial organization can choose one of two approaches in building its economic potential. The first approach is to focus on the established proportions in the structure and dynamics of production, while the growth rate of production volumes is set by the current or dynamically averaged value of the CUER coefficient. According to the second approach, faster rates of development are assumed. At the same time, as follows from the model, a commercial organization can use certain economic levers: reducing the share of dividends paid, improving production process(decrease in capital intensity, increase in profitability), search for the possibility of obtaining economically justified loans, additional issue of shares.
The considered model is extremely important not only for the analyst, but also for financial manager, because it allows you to understand the logic of the action of the main factors in the development of the organization, to quantify their influence, to understand which factors and in what proportion it is possible and expedient to mobilize to improve production efficiency.
Moscow State University Service
Course work
Subject:
" Economic analysis "
Subject:
"Analysis of turnover of current assets".
Done: student
FVK groups 3.1.- T
Chernenko A.A.
Teacher:
Filimonova N.N.
Moscow, 2002
Introduction. 2
1. 1. Classification of working capital. 4
2. Analysis of the composition of current assets. 6
2.1. Cash flow analysis. nine
2.2. Analysis of receivables. ten
2.3. Analysis of inventories. thirteen
3. Analysis of the turnover of working capital. 21
3.1. General assessment of the turnover of the company's assets. 21
3.2. Calculation of the standard of working capital. 25
3.3. Analysis of the effectiveness of the use of working capital. 27
4. Analysis of the turnover of working capital at Intek Service LLC. 29
Conclusion 35
Introduction.
To improve the economic and financial activities of an enterprise, systematic economic analysis is essential.
The main task of the analysis is to identify and use the reserves of production. The formation of a market economy determines the development of analysis at the micro level, that is, at the level of an individual enterprise or its division. Since these grassroots links under any form of ownership form the basis of a market economy.
What does analysis study? - economic processes occurring in the country and at the enterprise, economic efficiency, costs, end results of the enterprise.
The economic activity of the enterprise consists of the following processes:
supplies,
production,
implementation and marketing.
At the first stage, the enterprise acquires the necessary fixed assets, production stocks.
On the second - part of the funds in the form of stocks goes into production, and part is used:
to pay employees,
paying taxes,
social security payments
other expenses.
This stage ends with the release of finished products.
At the third stage, the products are sold and the company receives funds, and, as a rule, more than the initial amount by the amount of profit received from the business.
The object of economic analysis are: all aspects of economic processes that are considered not in isolation from each other, but in interaction with each other. At the same time, causal relationships between individual aspects of economic processes are revealed and the factors that determine the results of these processes are revealed.
The essence of economic analysis is that it is a special kind of management activities an integral element of any management function, since the management process includes three stages:
Selection and processing of the necessary information.
Analysis of this information.
Making a managerial decision.
Thus, analysis is an intermediate link between collecting information and making a decision.
The main objective of this coursework is to determine the classification of working capital, determine the composition of working capital, give an overall assessment of the turnover of working capital, calculate the norms of working capital, analyze the effectiveness of the use of working capital, using the example of Intek Service LLC.
1. Classification of working capital.
The main working capital of the organization is entirely consumed in each production process, fully transfers its value to the finished product and changes its natural form.
Classification of working capital assets:
1. Working capital in inventories:
a) raw materials, basic materials;
b) purchased semi-finished products;
c) auxiliary materials;
d) fuel;
e) containers and packaging materials;
f) spare parts for current repairs;
g) low value and wear out quickly household inventory and tool.
2. Working capital in the production process:
a) work in progress;
b) the cost of developing new products;
c) semi-finished products of own production.
Raw materials- this is the object of labor, for the extraction or production of which labor was expended. Raw materials are, for example: ore, cotton.
materials- these are objects of labor that have already undergone industrial processing, for example, rolled metal. Products are made from basic materials, they form its main material content.
Semi-finished products- products of labor that have passed one or more stages of production, but require further processing or assembly.
Containers and packaging materials- represent all types of packaging and materials necessary for their manufacture.
Unfinished production- these are objects of labor that are being processed or awaiting further processing and have not yet become part of the finished product.
The composition, structure and value of the 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 association (enterprise) not only produces products, but also sells them, therefore, in addition to circulating production assets, it also has circulation funds. To circulation funds include finished products in the warehouse of the enterprise, cash on hand and on the current account with the State Bank, as well as in pending payments for shipped products.
The sum of circulating production assets and circulation funds in monetary terms is current assets of the association (enterprise).
All property of the enterprise can be divided into:
1. Immobilized assets (1 section of the balance sheet)
2. Mobile assets (balance sheet section 2), which include stocks, cash, receivables, etc.
The stability of the financial position of an enterprise largely depends on the appropriateness and correctness of investing financial resources in assets. The structure of economic assets largely depends on the type of activity of the enterprise.
Analysis of the composition of current assets.
Section 2 of the balance sheet "Current assets" combines various items that include current assets (current assets).
Current assets include:
Stocks (including raw materials, materials, IBE, finished products, goods shipped, etc.).
VAT on purchased assets.
Accounts receivable short-term and long-term debt.
Short-term financial investments.
Cash (including cash, current account, foreign currency account, etc.)
Other current assets.
For the purposes of in-depth analysis, it is advisable to group all current assets into risk categories. For example, it is more likely that receivables will be easier to sell (convert to cash) than work in progress or deferred expenses. In this case, the scope of a particular type of working capital should be taken into account. Assets that can only be used with purpose, have a greater risk (lower probability of realization) than multi-purpose assets. The more funds invested in assets that fall into the high claim category, the lower the company's liquidity.
|
Degree of risk |
Group of current assets |
|
Minimum |
Cash money affinities, easily marketable short-term securities |
|
Accounts receivable of enterprises with a normal financial position + stocks (excluding stale ones) + finished products of mass consumption in demand |
|
|
Industrial and technical products, work in progress, deferred expenses |
|
|
Accounts receivable of enterprises in a difficult financial situation, stocks of finished products that are out of use, stale stocks, illiquid assets |
In the development of the above analysis, it is advisable to assess the trend in the ratio of hard-to-sell assets and the total value of assets, as well as hard-to-sell and easy-to-sell assets.
The upward trend in these ratios indicates a decrease in liquidity.
When conducting such an analysis, it should be remembered that the classification of working capital into hard-to-sell and easy-to-sell cannot be constant, but changes with changes in specific economic conditions.
For example, in the context of supply instability and the ongoing depreciation of the ruble, enterprises may be interested in investing in inventories and other types of inventory, the market prices of which are steadily growing, which gives reason to classify the assets of this group as easy to sell.
There are also more serious negative consequences of such a significant amount of hard-to-sell assets on the company's balance sheet. This so-called dead capital slows down the turnover of funds in the enterprise and, consequently, reduces the efficiency of its activities. Often, at our enterprises, the drop in the values of profitability indicators is largely determined by the presence and growth of the share of hard-to-sell assets.
Finally, hard-to-sell assets reflected as separate elements of working capital distort the true picture of the enterprise's liquidity, misleading its management and business partners.
The situation is aggravated by the fact that at many of our enterprises control over the safety of inventory items has been significantly weakened.
Often carried out formally, the inventory does not allow the head of the enterprise and his accounting department to draw up an objective picture of the presence and safety of material assets.
If hard-to-sell assets make up a significant part of working capital, then the management of the enterprise and its chief accountant should take urgent measures to stabilize the financial position of the enterprise.
These measures should be:
inventory of the state of property in order to identify assets of "low" quality (worn-out equipment, stale stocks of materials;
receivables, unrealistic to collect) and clarification of the real value of the property of the enterprise;
improving the organization of settlements with buyers (in conditions of inflation, as usual, it is more profitable to sell products faster and cheaper than to expect more favorable conditions for its sale);
reduction of excessive stocks of inventory and, as a result, a decrease in cash outflow.
Cash flow analysis.
Of particular importance to stable activity enterprises has a cash flow rate. One of the main conditions financial well-being enterprise is the inflow of funds to cover its current liabilities.
The lack of such a minimum required cash reserve is indicative of his serious financial difficulties.
Excessive amounts of cash indicate that the company actually suffers losses associated, firstly, with inflation and the depreciation of money, and, secondly, with the missed opportunity for their profitable placement and additional income.
In this regard, there is a need to assess the rationality of cash management in the enterprise.
Exist various ways such an analysis.
In particular, a kind of barometer of the occurrence of financial difficulties is the tendency to reduce the share of cash in the composition of the current assets of the enterprise with an increasing volume of its current liabilities. Therefore, a monthly analysis of the ratio of cash and the most urgent obligations (the term of which ends in the current month) can give a fairly eloquent picture of the excess (lack) of cash at the enterprise.
Another way to assess the adequacy of cash is to determine the cash turnover ratio.
For this purpose, the formula is used:
Internal accounting data are used to calculate average cash balances.
In order to reveal the real cash flow at the enterprise, to assess the synchronism of the receipt and expenditure of funds, and also to link the amount of the received financial result with the state of funds at the enterprise, it is necessary to identify and analyze all directions of receipt (inflow) of funds, as well as their disposal (outflow).
Analysis of receivables.
A significant proportion of receivables in the composition of current assets determines their special place in the assessment of the turnover of working capital. In the most general view changes in the volume of receivables for the year can be characterized by balance sheet data.
For purposes internal analysis analytical accounting information should be involved: data from order journals or records of settlements replacing them with buyers and customers, with suppliers for advances issued, accountable persons, with other debtors.
To summarize the results of the analysis, a summary table is compiled in which receivables are classified according to the terms of formation.
The analysis of short-term debt is carried out on the basis of the data of analytical accounting of settlements with suppliers, received bank loans, settlements with other creditors
(magazines-orders No. 4, 6, 8, 10, statements, etc.).
In the course of the analysis, a selection of obligations is made, the terms, the repayments of which occur in the reporting period, as well as deferred and overdue obligations.
To assess the turnover of accounts receivable, the following group of indicators is used.
Accounts receivable turnover.
It should be borne in mind that the longer the period of delay in debt, the higher the risk of non-payment.
The share of receivables in the total volume of current assets.
allowing you to manage accounts receivable:
Monitor the status of settlements with buyers on deferred (overdue) debts;
Target as many buyers as possible to reduce the risk of non-payment by one or more large buyers;
Monitor the ratio of accounts receivable and payable: a significant excess of accounts receivable poses a threat to the financial stability of the enterprise and makes it necessary to attract additional (usually expensive) sources of financing;
Use the method of providing discounts for early payment.
Analysis of inventories.
Inventory valuation is carried out for each of their types (inventory, finished products, goods, etc.).
The turnover of inventories characterizes the speed of movement of material assets and their replenishment. The faster the turnover of capital placed in stocks, the less capital is required for a given volume of business transactions.
Inventory turnover varies greatly across industries. In industries with a long production cycle, maintaining inventory requires more capital.
The timing of the turnover of inventories of enterprises in the same industry, as a rule, characterizes how successfully they use capital. As it was found out earlier, the accumulation of stocks is associated with a very significant additional outflow of funds, which makes it necessary to assess the possibility and feasibility of reducing the shelf life of material assets. The fall in the purchasing power of money forces enterprises to invest temporarily free funds in stocks of materials. In addition, the accumulation of stocks is often a forced measure to reduce the risk of non-delivery (undersupply) of raw materials and materials necessary 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 accumulation of stocks of inventory items inevitably leads to an additional outflow of funds due to:
increase in costs arising in connection with the possession of stocks (rent of storage facilities and their maintenance, expenses for the movement of stocks, property insurance, etc.);
increase in costs associated with the risk of losses due to obsolescence and damage, as well as theft and uncontrolled use of inventory items; it is well known: the greater the volume and period of storage of property, the weaker (more difficult) control over its safety;
increase in taxes paid.
Under conditions of inflation, the actual cost of spent inventories (the amount of their write-off to cost) is significantly lower than their current market value.
As a result, the amount of profit turns out to be "inflated", but it is from it that the tax due will be calculated.
The picture is similar with the value added tax.
That the amount of property tax increases with the increase in the volume of stocks, probably, does not require explanation; diversion of funds from circulation, their "death".
Excessive stocks stop the movement of capital, violate the financial stability of the activity, forcing the management of the enterprise to urgently find the necessary current activities money (usually expensive). Therefore, not without reason, excessive inventories are called the "graveyard of business."
These and other negative effects of a stockpiling policy often completely offset the positive effects of savings from earlier purchases.
A significant outflow of funds associated with the costs of the formation and storage of stocks makes it necessary to find ways to reduce them.
At the same time, of course, we are not talking about reducing the amount of costs for the creation and maintenance of stocks of inventory items to a minimum.
Such a solution would most likely turn out to be ineffective and would lead to an increase in losses of a different kind (for example, from damage and uncontrolled use of inventory items).
The challenge is to find a "golden mean" between excessively large stocks, which can cause financial difficulties (lack of funds), and excessively small stocks, dangerous for the stability of production.
Such a task cannot be solved in the conditions of spontaneous formation of reserves; an established system of control and analysis of the state of reserves is necessary.
In the theory and practice of inventory management, the following main signs of an unsatisfactory resource control system are distinguished:
a trend towards a constant increase in the duration of storage of stocks;
continuous growth of stocks, noticeably outpacing the dynamics of the increase in the volume of products sold;
frequent downtime of equipment due to lack of materials;
lack of storage space;
periodic refusal of urgent orders due to lack (absence) of inventories;
large amounts of write-offs due to the presence of obsolete (stale), slow-moving stocks;
Significant amounts of inventory write-offs due to their deterioration and theft.
The main objectives of control and analysis of the state of stocks:
ensuring and maintaining liquidity and current solvency;
reduction of production costs by reducing the cost of creating and storing stocks;
reduction of loss of working time and equipment downtime due to lack of raw materials and supplies;
prevention of damage, theft and uncontrolled use of material assets.
Achieving the set goals involves the implementation of the following accounting and analytical work.
An assessment of the rationality of the structure of reserves, which makes it possible to identify resources, the volume of which is clearly excessive, and resources, the acquisition of which needs to be accelerated.
This will avoid unnecessary investment of capital in materials, the need for which is reduced or cannot be determined. It is equally important in assessing the rationality of the structure of stocks to establish the volume and composition of spoiled and slow-moving materials. This ensures that inventories are maintained in the most liquid state and that funds immobilized in inventories are reduced.
Determining the timing and volume of purchases of material assets. This is one of the most important and difficult tasks for the current conditions of the functioning of Russian enterprises in the analysis of the state of stocks.
Despite the ambiguity of the decisions made for each specific enterprise, the general approach to determining the volume of purchases, which allows taking into account:
the average volume of consumption of materials during the production and commercial cycle (usually determined on the basis of the results of the analysis of the consumption of material resources in the past periods and the volume of production under the conditions of the intended sale);
an additional amount (safety stock) of resources to cover unforeseen material costs (for example, in the case of an urgent order) or an increase in the period required to form the necessary stocks.
Selective regulation of stocks of material assets, suggesting that attention should be focused on expensive materials or materials that have a high consumer value. attraction.
In foreign practice, the so-called ABC method has become widespread, the methods of which can also be applied at Russian enterprises.
The main idea of the ABC method is to evaluate each type of material in terms of its value. This refers to the degree of use of the material for a specific period; the time required to replenish stocks of this material, and the costs (losses) associated with its absence in the warehouse; the possibility of replacement, as well as losses from replacement.
A small share of these material resources in the total volume of material assets stored in the warehouse determines the main amount of cash outflow during the formation of stocks.
Such materials are considered as group A resources.
Group B materials are secondary; they are less expensive than materials of group A, but surpass them in the number of items.
Group C materials are considered relatively unimportant - these are the least expensive and most numerous material values.
Their acquisition and maintenance are accompanied by an insignificant (in comparison with the total amount) cash outflow.
Typically, the cost of holding such stocks is less than the cost of maintaining tight control over the ordered batches, insurance (reserve) stocks and stock balances.
Material resources are divided into the listed groups depending on the specific conditions of production.
The key point here is that group A materials are most carefully controlled.
Particular attention is paid to:
calculation of the need for them;
scheduling the formation of stocks and their use;
substantiation of the value of insurance stocks, inventory.
Calculation of indicators of turnover of the main groups of stocks and their comparison with similar indicators of past periods in order to establish the compliance of the availability of stocks with the current needs of the enterprise.
To do this, calculate the turnover of materials accounted for on various sub-accounts ("Raw materials", "Purchased semi-finished products and components, structures and parts", "Fuel", "Containers and packaging materials", "Spare parts", etc.), and then the total material turnover by determining the weighted average.
Since inventories are accounted for at the cost of their procurement (acquisition), then to calculate the inventory turnover ratio, not sales proceeds are used, but the cost of goods sold.
To estimate the inventory turnover rate, the following formula is used:
Analysis of the turnover of working capital.
General assessment of the turnover of the company's assets.
The financial position of the enterprise is directly dependent on how quickly the funds invested in assets are converted into real money.
The following are related to the turnover rate:
The minimum required amount of advanced (involved) capital and related cash payments (interest on bank loans, dividends on shares, etc.);
The need for additional sources of funding (and fees for them);
The amount of costs associated with the possession of inventory and their storage;
The amount of taxes paid, etc.
Separate types of assets of the enterprise have different turnover rates.
The duration of 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 (manufacturing, supply and marketing, intermediary, etc.), industry (there is no doubt that the turnover of working capital at a machine-tool plant and a confectionery factory will be objectively different), the scale of the enterprise (in most cases, the turnover of funds at small enterprises is much higher than at large ones - this is one of the main advantages of small businesses) and a number of others.
No less impact on the turnover of assets is exerted by the economic situation in the country and the associated business conditions of enterprises.
Thus, inflationary processes, the absence of well-established economic relations with suppliers and buyers in most enterprises lead to a forced accumulation of stocks, which significantly slows down the process of turnover of funds.
However, it should be emphasized that the period of funds in circulation is largely determined by the internal conditions of the enterprise, and primarily by the effectiveness of its asset management strategy (or lack of it). Indeed, depending on the pricing policy applied, the structure of assets, the methodology for assessing inventories, the enterprise has more or less freedom to influence the duration of the turnover of its funds.
It should be borne in mind that the value of the turnover ratio of current assets is directly affected by the methodology adopted at the enterprise for their assessment, and based on the tasks and the chosen asset management strategy, the enterprise has a certain ability to regulate the value of the turnover ratio of its assets.
In the general case, the turnover of funds invested in property can be assessed by the following main indicators: the turnover rate (the number of revolutions that the capital of the enterprise or its components make during the analyzed period) and the turnover period - the average period for which returns to the economy invested in production commercial transactions cash.
The rate of turnover of an enterprise's assets is usually calculated using the formula:
The average value of assets according to the balance sheet is determined by the formula:
where the turnover of assets is numerically equal to the turnover ratio of current assets.
Each industrial association (enterprise) must improve the use of working capital.
To assess the use of working capital, two indicators are used:
duration of one revolution in days
H \u003d T 1 + T 2 + T 3,
T 1 - procurement cycle (acquisition and delivery of materials, fuel, etc.);
T 2 - production cycle;
T 3- product sales cycle;
2) the number of turnovers during the planned period or the turnover ratio, which characterizes the output of products for 1 rub. working capital:
K about. = T / H
T - duration of the planning period, days.
The shorter the duration of one revolution, the more revolutions the working capital will make.
With the acceleration of the turnover of working capital, the need for them decreases, a reserve is created to increase output.
To accelerate the turnover of working capital, it is necessary to reduce the time they spend in the sphere of production and in the sphere of circulation.
For this you need:
reduce the time of processing and assembly of products by mechanization and automation of the production process;
improve the use of new technology;
accelerate the control and transportation of products during their processing;
reduce stocks of materials, fuel, packaging, work in progress to the established standard;
ensure the rhythmic work of all production sites and workshops of the enterprise, timely delivery of materials to the enterprise and workplaces;
accelerate the shipment of finished products; promptly and quickly make settlements with consumers;
improve product quality, prevent the return of finished products from the consumer, etc.
Calculation of the standard of working capital.
The calculation of the norm of working capital is carried out, as a rule, by the method of direct counting, based on the indicators of the production program for the planned period, the volume of production and sales, the range, the frequency of deliveries. duration of the production cycle.
The calculation can be made analytical method, based on the relationship between the growth rate of production volume and the size of normalized working capital, in the previous period.
standard- this is the minimum planned amount of working capital that is constantly needed by the association (enterprise) for normal operation. Standard (need) of working capital for materials in monetary terms H is determined by the formula
H = RD,
R - one-day consumption of materials according to the estimate of production costs, rubles;
D - the rate of working capital in days of stock.
Calculation of the standard of working capital in work in progress H o.s is determined by the formula
N o.s \u003d SPK n.s / D + Z r,
With - the production cost of marketable products according to the cost estimate for the planned period;
P - the duration of the production cycle, calculated according to the production schedule;
K n.z - coefficient of increase in costs (the ratio of the cost of work in progress to planned cost products);
D - the number of days in the planning period;
Z r - the value of the reserve stock of work in progress.
Analysis of the effectiveness of the use of working capital.
Particular attention should be paid to the efficiency of the use of working capital, since the rational use of working capital affects the main indicators of economic activity. industrial enterprise: to increase production volume, reduce production costs, increase the profitability of the enterprise. An analysis of the effectiveness of the use of working capital should help identify additional reserves and help improve the main economic indicators of the enterprise.
The main synthetic indicator of the use of working capital is:
Profitability ratio of assets (property).
The acceleration of the turnover of working capital depends on the time they spend at various stages of the cycle, reducing its duration. It is achieved by an increase in output and sales of products, a more complete and rational use of material resources, and a reduction in the time of the technological cycle. The turnover is affected by the use of the latest achievements of scientific and technological progress.
Analysis of the turnover of working capital at Intek Service LLC.
Let's analyze the turnover ratio of current assets at the enterprise LLC "Intek-Service" for 2001.
The table shows that the increase in the turnover ratio was affected by the decrease in the duration of working capital.
During the analyzed period, the duration of working capital decreased by 1 day. And accordingly, the turnover ratio increased by 0.13.
The duration of the turnover of assets may change due to the amount of revenue and average balances. To calculate the influence of factors, the chain substitution method is used:
P about. = 6000*90 / 20000= 27 days.
P vol. \u003d 13000 * 90 / 20000 \u003d 58.5 days.
P about. \u003d 13000 * 90 / 45000 \u003d 26 days.
Hence the change in the duration of the turnover of working capital due to:
Amounts of turnover of working capital
P about. = 26- 58.5 = - 32.5 days
Average balances of working capital
P about. Balances = 58.5 - 27 = + 31.5 days
The economic effect as a result of the acceleration of capital turnover is expressed in the relative release of funds from circulation, as well as in an increase in the amount of revenue and the amount of profit.
The amount of funds released from circulation due to acceleration
(-E) or additionally attracted funds into circulation (+ E) with a slowdown in the turnover of capital is determined by multiplying the one-day turnover for the sale by the change in the duration of the turnover:
E \u003d Sum of revolutions \ days * P rev. \u003d 45000 \ 90 * (26-27) \u003d - 500 million rubles.
In our example, due to the acceleration of the turnover of working capital for 1 day, there was a relative release of funds from turnover in the amount of 500 million rubles.
If the capital turned over in the reporting quarter not in 26 days, but in 27, then to ensure actual revenue in the amount of 45,000 million rubles. it would be necessary to have in circulation not 13,000 million rubles. working capital, and 13,500 million rubles, i.e. for 500 million rubles. more.
The same result can be obtained in another way, using the capital turnover ratio. To do this, from the average amount of working capital of the reporting period, it is necessary to subtract its estimated value, which would be required to ensure the amount of turnover at the capital turnover ratio of the previous year.
E \u003d 13000-45000 / 3.33 \u003d - 500 million rubles.
To establish the impact of the turnover ratio on the change in the amount of revenue, you can use a factor model:
Vk.rev. \u003d 13000 * (3.46 - 3.333) \u003d 1647 million rubles.
In k1 \u003d (13000-6000) * 3.3333 \u003d 23333 million rubles.
In total = 45,000 -20,000 = 25,000 million rubles.
P \u003d K vol. * P + K1 \u003d (3.46 - 3.3333) * 0.66 * 13000 \u003d 1087 million rubles.
After analyzing our company, we saw that due to the acceleration of the turnover of working capital in the reporting period, the company additionally received profit in the amount of 1087 million rubles.
Let us determine the change in the turnover of working capital and the amount of release (involvement) at the enterprise Intek-service LLC.
Let's draw the appropriate conclusions.
Remaining working capital for:
240 million rubles
242 million rubles
238 million rubles
240 million rubles
236 million rubles
242 million rubles
244 million rubles
242 million rubles
Average quarterly balances of working capital for 1 sq. =
(240/2 + 242 + 238 + 240/2) / 4-1 = 240 million rubles.
Average quarterly working capital balances for Q2 =
(236/2 + 242 + 244 + 242/2) / 4-1 = 240 million rubles.
Turnover of working capital for 1 sq. = 240 * 90 / 473, 7 =
Working capital turnover for 2 sq. = 240 * 90 / 509, 4 =
release amount = 509.4 / 90 * (-3.2) = - 18.1 million rubles.
Let's conclude:
The table shows that in the second quarter, the proceeds from the sale of products amounted to 509.4 million rubles. compared to the 1st quarter, in which the sales proceeds amounted to 473.7 million rubles.
As a result, the deviation amounted to + 35.7 million rubles, we can conclude that the profit of the enterprise increased due to an increase in sales proceeds, as well as due to a decrease in the turnover of working capital (in days).
In the second quarter, the turnover ratio of working capital decreased and amounted to 42.4 days, compared with the 1st quarter, the indicator was 45.6 days, the deviation was 3.2 days.
It can be concluded that the lower the turnover of working capital, that is, the less time spent on the process of turnover of funds, the higher the proceeds from the sale of products, and hence the greater the profit of the enterprise.
Thus, it is possible to advise the enterprise to continue working in this direction and continue to use its resources efficiently.
At the end of the analysis, the enterprise should develop measures to accelerate the turnover of working capital:
Reducing the duration of the production cycle due to the intensification of production:
use of the latest technologies,
mechanization and automation of production processes,
increasing the level of labor productivity,
more full use production capacity of the enterprise,
labor and material resources, etc.
Improving the organization of material and technical supply in order to ensure the uninterrupted supply of production with the necessary material resources and reduce the time spent by capital in stocks.
Acceleration of the process of shipment of products and registration of settlement documents.
Reducing the time spent on receivables.
Level up marketing research aimed at accelerating the promotion of goods from the manufacturer to the consumer
(including market research, improvement of the product and the forms of its promotion to the consumer, the formation of the correct pricing policy, the organization of effective advertising, etc.).
Conclusion
This term paper was the study of the analysis of the turnover of working capital in the form that is universal for all enterprises, regardless of their type of activity.
Analysis of the use of working capital helps to identify additional reserves to improve the economic performance of the enterprise.
Using the example of Intek Service LLC, we considered how, by accelerating the turnover of capital, an enterprise can receive additional profit.
Based on the foregoing, we can conclude that the analysis of the financial and economic activities of the enterprise, subject to its correct implementation, will bring
company additional profit
Bibliography.
- 1. Raw materials, materials, purchased semi-finished products
- 2. Fuel
- 3. Container
- 4. Spare parts for repair.
- 5. Low-value and wearing items.
- 6. Other materials
- 11240067
- 3200790
- 450627
- 25800
- 448263
- 2077180
- 8344573
- 5438712
- 300210
- 293500
- 520747
- 72608957
- 12075960
- 4959202
- 730437
- 193570
- 95880
- 74103622
- 7508680
- 3680300
- 20400
- 125730
- 873130
- 582515
- 7. Economic result
- (releases during turnover acceleration, additional attraction during deceleration):
- a) in days
- - current assets.
- - material working capital.
- b) in the amount, rubles
- - current assets
- - material working capital
- 1997
- 52391498 : 31592291= 1,6
- 52391498: 48535429= 0,07
- 1998
- 1) inventory turnover ratio
- 72608957: 32747381,5= 2,2
- 2) turnover ratio of current assets
- 72608957: 7312276= 0,99
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"Methodology of financial analysis" Sheremet A.D. Moscow: INFRA-M, 2000.
"Financial analysis" Efimova O.V. Moscow Accounting, 1999
"Theory of economic analysis" M.I. Bakanov, A.D. Sheremet, Moscow: Finance and Statistics, 2001
"Analysis of the economic activity of the enterprise" Savitskaya G.V., 2nd edition, revised and supplemented, Moscow, Minsk: IP Ecoperspektiva, 2001.
The financial application of an enterprise is directly dependent on how quickly the funds invested in assets turn into real money.
However certain types assets of the enterprise have a different rate of turnover. Thus, real estate and other non-current assets (fixed assets, intangible assets and others), which are funds intended for long-term use by the enterprise, have the longest period of turnover.
All other assets, called current assets, being intended for sale or consumption, can repeatedly change their form (tangible to monetary and vice versa) during one operating cycle of the enterprise.
The duration of the funds in circulation is determined by the combined influence of a number of multidirectional factors of an external and internal nature. The first should include the scope of the enterprise (Production, supply and marketing, intermediary, and others), industry affiliation (for example, there is no doubt that the turnover at a machine-tool plant and a confectionery factory will be objectively different), the scale of the enterprise (in most cases, the turnover of funds at small enterprises it turns out to be much higher than at large ones - this is one of the main advantages of small business) and a number of others.
No less impact on the turnover of the enterprise has the economic situation in the country and related conditions of economic enterprises. Thus, the ongoing inflationary processes in the country, the lack of established economic relations with suppliers and buyers for most enterprises, lead to the forced accumulation of stocks, which significantly slows down the process of turnover of funds. Let us consider the reasons for the change in current assets in the Ulyanovsk OAO Simbirsk-spirt for 1997-1998.
Table 3 - Reasons for the change in current assets of Ulyanovsk OAO "Simbirsk-spirt" in 1998.
|
Reasons for increasing working capital |
Amount, rub. |
Reasons for the decrease in working capital |
Amount, rub. |
|
Net income (after taxes) |
1. Expenses due to profit remaining at the disposal of the enterprise |
||
|
2. Depreciation (depreciation) |
2. Capital investment |
||
|
3. Growth own funds |
3. Long-term financial investments |
||
|
4. Increase in debt on loans and borrowings |
4. Reducing debt on loans and borrowings |
||
|
5. Increase in accounts payable |
5. Reducing accounts payable |
||
Deviation balance:
19599975=40195131-20595156
The increase in current assets was due to an increase in own funds by 3900071 rubles and due to an increase in accounts payable by 26270615 rubles. Capital investments for the reporting period amounted to 1,854,054 rubles.
Fines and penalties paid out of net profit in 1998 amounted to fines, penalties paid out of net profit amounted to 1,317,468 rubles. Material charitable help and other expenses amounted to 16,305,502 rubles.
Let's consider the composition and movement of inventories in the Ulyanovsk JSC "Simbirsk-spirt" for 1997-1998.
Large stocks of raw materials and materials slow down the process of turnover against 30 days according to the standard affects the financial position of the enterprise. A large share in the stocks of raw materials and materials is illiquid products (old labels, corks, chemicals with expired shelf life). The analysis of low-value consumable items in the warehouses of the enterprise (777 days) also indicates a large volume of illiquid products, namely: obsolete calculators and telephones, defective tools, etc. which amounted to 3460 rubles or % 3460/448263.
A large supply of fuel (for 267 days) is explained by the fact that, by order of the Head of the Administration of Ulyanovsk, Simbirsk-spirt OJSC must provide fuel to rural areas during the sowing campaign on account of offsets with the local budget.
Table 4 - Composition and movement of inventories in the Ulyanovsk JSC "Simbirsk-spirt" in 1998.
|
Indicators |
Balance at the beginning of the year |
Received, rub. |
Spent, rub. |
Balance at the end of the year |
Balance at the end of the year |
||
|
Amount, rub. |
Amount, rub. |
In days of consumption |
|||||
|
|
|
|
|
|
|||
The most important step in the analysis of the financial condition of the enterprise is the study of indicators of the turnover of current assets of the enterprise, allowing to characterize the effectiveness of their use. The study and analysis of the turnover of current assets is important, since the speed of their turnover is directly dependent on such important indicators, as the volume of sales of products, works, services.
Let's analyze the data on the turnover of current assets in the Ulyanovsk JSC "Simbirsk-spirt" in 1997-1998.
Table 5 - Analysis of the turnover of current assets in the Ulyanovsk JSC "Simbirsk-spirt" for 1997-1998.
|
Indicators |
Actually |
Deviations (+,-) |
|
|
1. Proceeds from sales (works, services), excluding VAT and excises, rubles |
|||
|
2. One-day sales, rub. |
|||
|
3. Average cost of working capital, rubles |
|||
|
4. Average cost of current assets, rubles |
|||
|
5. Duration of one turnover of current assets, days |
|||
|
6. Duration of one turnover of material circulating assets, days |
|||
|
|
As follows from Table 5, compared to last year, the duration of the turnover of current assets slowed down by 28 days, which may lead to deterioration Financial Regulations enterprises. The consequence of this was the need to attract additional funds in economic turnover in the amount of 5590888 rubles (201691.5 * 2.2). The acceleration of the turnover of material circulating assets by 61 days allows the enterprise to freely use 27,066,999 rubles in circulation (calculation 201691.5 * (-61) * 2.2). To calculate these indicators, we needed the following coefficients:
The next stage of work will be the study of the composition and structure of the financial resources of the enterprise of the Ulyanovsk OAO Simbirsk-spirt.
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