From the course "Enterprise Economics", every graduate of the Faculty of Economics knows that working capital is a certain combination of various production and circulation funds not in kind, but in cash. The activities of any company must be properly evaluated, often statistical information is analyzed for this purpose, and specifically, the turnover ratio . The main objective of production assets is to service the production sector at the enterprise, and circulation funds are engaged in the corresponding field. It is also known that the most basic conditions for the efficient production and sale of products require the constant availability of material assets in production warehouses. These values are mainly consumed directly in the production process, as well as during storage or maintenance of finished products. To characterize the statistical data at the enterprise constantly use indicators of turnover.
Based on this, working capital can be called those assets of the enterprise that in the production process are able to fully transfer their own value to the created product, but at the same time they can only participate in such a process once, after which they lose their original form or change it.
The mentioned indicators provide an opportunity to analyze the dynamics of the activity of the enterprise and form a further development policy. One of these indicators, experts call the load factor of working capital. With it, you can find out how many working capital falls on a unit of marketable products. To determine this ratio is quite easy, you just need to calculate the ratio of the average balance of current assets to the total volume of products sold by the enterprise.
Based on this, we can conclude that there is an inverse indicator that would describe the number of revolutions of the assets of the enterprise for a certain period. Such an indicator is the turnover ratio, which is calculated as the ratio of the volume of sales to the average value of the balance of working capital on the balance sheet of the company.
This ratio is a financial indicator of the intensity of use of the obligations of the enterprise or its assets, that is, the speed or quantity of their turnover for the selected time.
The turnover ratio can have several variations, among them the following are distinguished:
1. The ratio of revenue for the year to the average value of current assets is the turnover of current assets.
2. The ratio of annual sales revenue and inventory value - inventory turnover.
And there are a lot of such coefficients, because this universal indicator makes it possible to analyze the flow of all assets of the enterprise and identify the most necessary or, conversely, unnecessary resources.
That is, if during the calculation it was revealed that the annual turnover ratio of any assets is three, then this means nothing more than the number of revolutions of these resources over twelve months.
It is also worth paying attention to the indicators of rationing working capital, which are used as the development and formation of standards and norms for the expenditure of assets, which are necessary for the constant availability of minimum reserves at the enterprise. All company funds can be divided into standardized and non-standardized. At the same time, the former include inventories, and the latter includes monetary assets, finished goods, and also receivables.
Working capital occupy an important part among other assets of the enterprise, therefore, their analysis is an integral part of the formation of plans and forecasts for the production of products, as well as its implementation.