The economic efficiency of spending available working capital (OS) is reflected in the result that is obtained in the course of the entire activity of the company or enterprise. Its effectiveness is determined by many indicators, among which the OS occupy a leading place, and the analysis of the efficiency of the use of working capital is the most important attribute in the implementation of the enterprise management strategy. This performance is characterized by an indicator such as OS turnover. It is understood as the time period during which 1 turnover of funds takes place, starting from the moment they are converted into inventories and ending with the moment when finished products come out and are sold on the market. A competent analysis of the efficiency of the use of working capital takes into account a whole system of interdependent indicators that are taken for a specific period of time - a year, six months, a day. For example, to calculate the value of fixed asset turnover in days, you can use the formula: T (0) = S-D, in which: C is the balance of the fixed asset for some date selected for analysis, T is the volume of goods, D is the number of days.
When this value is known, the number of revolutions can also be determined. To do this, you can apply the formula: K (o) = T / C, which also reflects the OS turnover ratio . It can be determined by the ratio of profit received as a result of the sale of goods produced by the enterprise to the balance of fixed assets. Moreover, their release can manifest itself as absolute and relative. With the absolute release of OS, the value of their actual balances should not exceed the value of the established norm or the value of the balances of the past period. With relative exemption, analysis of the efficiency of the use of working capital indicates the need to accelerate the turnover and growth of the corporation at the same time. Moreover, the growth rate of production cannot be lower than the growth rate of OS residues. The preservation of such conditions and trends can significantly save finances and at the same time increase the volume of current production.
As the analysis of the efficiency of working capital use demonstrates, in this case, the higher the value of the turnover ratio, the more efficiently the OS is used in the company.
As part of the management strategy, there are other parameters for the efficiency of using the OS, for example, the duration of the revolutions of the individual components of the OS. In particular, the duration of the turnover of TMZ shows the time spent on the conversion of raw materials into sold products. Analysis of the use of working capital of the enterprise involves a study of the turnover of receivables, and it shows the average amount of time for receipt of payment. The turnover period in days shows the time from the date of payment of the received raw materials to the date of receipt of profit from the sale on the goods market.
With all the options, each company always sets a goal as a strategic objective - to reduce the turnover and thereby achieve an increase in profit.
The analysis of own working capital contributes to the reduction of dependence on sources of financing. It is also important to consider that accounts receivable are the most important element of the operating system. The value of assets of receivables depends on the volume of products sold for loans, and the average amount of time between the beginning of the sale of goods and profit from this sale.
The economic activity of any company or company is always associated with the acceleration or deceleration of the process of turnover. Such dynamics is determined by comparing the actual values of turnover with their forecast or planned parameters. Of great significance is the rate of acceleration of turnover, which is characterized by a decrease in the time of one separately considered turnover.