Essence, classification, composition.
The composition of working capital is divided into:
- Production facilities;
- production materials (seeds, containers);
- work in progress (rearing young cattle, plowing winter plow, etc.);
- expenses for the future (summer camps, advanced rents, development of new products and other expenses).
2. Means of circulation.
- shipped but unpaid products;
- accounts receivable;
- money in the current account, as well as at the cash desk of the enterprise.
In the areas of turnover, distinguish:
- funds that are in the sphere of production;
- funds that are in circulation.
According to the sources of formation and replenishment of funds are:
The features of planning means distinguish:
- standardized;
- non-normative.
The performance indicators of the use of working capital represent a whole system of economic indicators, and, above all, working capital is characterized by such an indicator as turnover.
Turnover is the duration of a full turnover of funds, from the time they are acquired to the release, as well as the sale of finished products. It is not the same for different enterprises. It depends on which industry they belong to, and within the same industry - on the organization of production, marketing of products. In an agricultural enterprise - from specialization, etc.
Analysis of the use of working capital is carried out using indicators such as the duration of the turnover, the balance (average annual), the turnover ratio, the coefficient characterizing the loading of working capital in circulation.
The above indicators of the use of working capital of the enterprise are determined by the formulas:
Formula 1
T = Os * pVr
Where: T - the duration of the turnover, in days;
Os - the balance of current assets (average annual), in rubles;
p is the number of days of the period;
Bp - revenue, in rubles.
Formula 2
Os = 12O1 + O2 + 12Onn-1
Where: O1, O2 - balance of funds on the 1st day of the month, in rubles.
Working capital is used better if there is a reduction in the duration of the turnover.
Formula 3
Cob = VrOs
Cob = pT
Where: - revenue, in rubles;
Os - the average annual balance, in rubles.
The higher Kob, the more efficiently the funds are used.
Formula 4
KZ = 1Kob
Where: KZ - load factor (funds in circulation).
When accelerating turnover, resources are released from turnover. When slowing down, additional resources are involved in the turnover.
The level of profitability, the effect of financial leverage, the profitability of capital turnover - these are indicators of the effectiveness of the use of working capital.
The level of profitability is calculated on the products that are sold, and is expressed as a percentage.
Formula 5
Ur = VP-SS * 100%
Where: VP - gross output, in monetary units;
With - the cost of production, in monetary units.
The term capital is currently used. To evaluate how borrowed funds are used, you can apply an indicator called the financial leverage effect, which shows whether it is worth borrowing capital.
Formula 6
Efr = ROA-SP * 1- KnZskSk
Where: ROA - return on equity before tax, in%;
SP - loan interest;
Kn - tax rate;
ZkSk - the ratio of borrowed capital to loan capital.
Efr clearly demonstrates how many percent equity will increase due to the fact that borrowed funds are attracted to the company's turnover. It occurs when POA> SP.
Consider such indicators of the efficiency of the use of working capital, as the profitability of turnover and capital.
Return on sales is equal to profit divided by revenue from sales, multiplied by 100%.
Return on capital - profit divided by capital and multiplied by 100%.
Using performance indicators for the use of working capital, we can once again confirm that economic efficiency at the enterprise can actually be improved if certain conditions are met:
- When applying in production activities the achievements of progress.
- With the growth of labor productivity.
- With the organization of strict accounting and control.
- With a decrease in production costs (cost reduction).
- In the development of new markets for the sale of products.
- When improving the quality and increasing the number of products.