Turnover ratio working capital and duration of their turnover.

K ob.oa \u003d Sales proceeds / OA cf. (2.15)

To ob.oa2010= 35507/1137.5=31.21

To ob.oa2011=78025/2023.5=38.55

To ob.oa2012=147010/7454.5=19.72

Turnover for the analyzed periods continued to decline steadily by 2.196, 0.77 and 1.87 turnover, respectively, which is a negative trend and indicates a decline in production, sales, a decrease in the efficiency of resource use, overall profitability of production, as well as an increase in the instability of the financial condition enterprises. Moreover, the turnover decreased both due to the growth current assets as well as a 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. It is expressed in days and is calculated as follows:

Boa \u003d T / K vol.oa \u003d T * OA cf. / Sales proceeds (2.16)

Boa2010=365/31.21=11.69

Boa2011=365/38.55=9.46

Boa2012=365/19.72=18.51

If in 2008 the period of one turnover was much less than a month, then in 2009 it is almost half a month.

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:

Оact \u003d (Boa 1 - Boa 0) * Vyr.r 1 / T 1 (2.17)

Okt2011 \u003d (9.46-11.69) * (78025 / 365) \u003d -2.23 * 213.76 \u003d -476.7

Okt2012 \u003d (18.51-9.46) * (147010 / 365) \u003d 9.05 * 402.76 \u003d 3645.1

In 2012, the additional attraction of current assets increased to 3645.1 thousand rubles, which indicates a deterioration in rationality economic activity enterprises and an even greater decrease in the profitability of production.

Inventory turnover ratio.

The rate of turnover of inventories (K vol. Zap.) is one of the most important factors affecting the overall turnover of working capital.

Inventory turnover period (Vzap. c / c) is the average period of time required for the transformation of raw materials into finished products and subsequent sale.

K about. app. = Cost of goods sold / Zap. cf. (2.18)

K about. zap.2010=32165/1248=25.77

K about. zap.2011=68571/2062=33.25

K about. record 2012=11187/119908=0.09

In 2011, inventory turnover increased by 7.48 turnovers (from 25.77 to 33.25) - even more than the total turnover of current assets, which indicates an increase in production rates, efficient use of inventories and irrational economic policy in the field of purchasing materials and marketing of finished products.

In 2012, the rate of deceleration of inventory turnover significantly decreased. Turnover slowed down by 33.16 turnovers and amounted to 0.09 turnovers per year. Over the three analyzed periods, inventory turnover has slowed down, so the company needs to reconsider its marketing and sales policy, and prevent the accumulation of large stocks of materials and finished products in warehouses.

zap. c/c = T * Rec. cf. / Cost of goods sold (2.19)

zap. c/c2010=365*(1248/32165)=14.16

zap. c/c2011=365*(2062/68571)=10.97

zap. c/c2012=365*(119908/11187)=3912.2

With a decrease in inventory turnover, the period of one turnover increases accordingly. Which is not a positive change and indicates that the company is irrationally using resources. Current assets are concentrated in the least liquid form and this leads to a slowdown in their turnover and loss of profit.

Accounts receivable and cash turnover ratios.

The period of repayment of receivables is the ratio of the duration of the analyzed period to the turnover ratio of receivables and is calculated:

Vdz \u003d T * DZ. cf. / Sales proceeds (2.20)

Vdz2010=365*(468/35507)=4.81

Vdz2011=365*(917/78025)=4.28

Vdz2012=365*(1513/147010)=3.75

In 2011, the period of repayment of receivables decreased, therefore, its turnover increased. This indicates a decrease in commercial credit provided by the enterprise, the return of diverted funds into circulation, and most importantly, the acceleration of the process of paying for products sold. In 2012, the turnover period was reduced by almost a whole day.

The cash turnover period looks like this:

Vds = T * DS. cf. / Sales proceeds (2.21)

Vds2010=365*(4/35507)=0.04

Vds2011=365*(202/78025)=0.9

Vds2012=365*(810/147010)=2.01

The period of cash turnover in 2008 increased slightly (from 0.04 to 0.9 turnover), which indicates a decrease in the efficiency of their use, a slight decrease in the liquidity of working capital and its turnover, and also indicates the withdrawal of funds from circulation.

In 2012, the cash turnover period increased by 1.11, respectively, which can be regarded as a positive change and an increase in the efficiency of cash use, but their share in current assets is too small (below 1%) to be considered significant. The analysis of turnover indicators is presented in table 2.12.

Table 2.12. Analysis of turnover indicators of Livadia LLC for 2010-2012

	To ob.oa (number of obr. per year)	Woah (days)	Okt (thousand rubles)	K about. app.

To increase the profitability of working capital, the enterprise needs to use working capital more efficiently and change the amount of turnover and its structure, use progressive methods of selling products.

Thus, in reporting period significantly increased income from the main activities of Livadia LLC: revenue in 2011 amounted to 78,025 thousand rubles, in 2012 - 147,010 (growth rate of 188.41%), which indicates an increase in the production capacity of the enterprise.

Accordingly, production costs also increased: 1961 thousand rubles. in 2011 and 7124 - in 2012 (growth rate 363.28%, which is higher than the growth rate of revenue). Other income of the enterprise is insignificant.

The profit of the organization in the reporting period amounted to 4364.32 thousand rubles, which is 3179.66 thousand rubles. higher than profit in 2011 (growth rate 368.41%).

The number of personnel in 2011 is 47 people, in 2012 it increased by 2 people. and amounted to 49 people.

Average monthly wage increased by 116.13% (from 9687 to 11250 rubles per month).

In Livadia LLC in 2011, there was an increase in intangible assets by 1 thousand rubles, current assets by 23 thousand rubles. at the same time, the increase was due to an increase in inventories by 18 thousand rubles, short-term financial investments for 7 thousand rubles. cash for 2 thousand rubles.

These data positively characterize the activity of the enterprise.

The equity capital of LLC Livadia increased by 103.6%, this was due to the growth of retained earnings. The amount of long-term liabilities decreased by 2 thousand rubles. accounts payable increased by 21 thousand rubles, the growth was due to an increase in debt to suppliers and contractors by 11 thousand rubles, to the personnel of the organization by 5 thousand rubles, for taxes and fees by 9 thousand rubles.

The analysis of current assets is the most important area 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, the demand for this enterprise in the market.

Share work on social networks

If this work does not suit you, there is a list of similar works at the bottom of the page. You can also use the search button

Other related works that may interest you.vshm>
12810.		Analysis of the effectiveness of the use of current assets on the example of the enterprise JSC UNTK	115.22KB
	Circulation funds include funds that serve the process of selling products ( finished products in stock; goods shipped to customers, but not yet paid for by them; funds in settlements; cash at the cash desk of the enterprise and on bank accounts). They do not participate in the production process, but are necessary to ensure the unity of production and circulation.
21237.		Analysis of the use of current assets and their impact on the solvency of the enterprise on the example of JSC "Znamensky Sugar Plant"	132.42KB
	Working capital is one of the components of the property of the enterprise. High inflation, non-payments and other crisis phenomena are forcing enterprises to change their policy in relation to working capital to look for new sources of replenishment to study the problem of the effectiveness of their use. Analysis of the effectiveness of the use of working capital of enterprises is carried out by a significant number of economic entities. while financial science has a wider choice of methods for analyzing the effectiveness of the use of working capital ...
19797.		Analysis of the efficiency of working capital and ways to improve it (on the example of JSC "SSGPO")	141.72KB
	Working capital is an indispensable condition for the implementation of business activities by the enterprise. Essentially, working capital is cash advanced into working capital. production assets and circulation funds, do not confuse them with money invested in fixed assets.
15956.		Analysis of the effectiveness of the use of working capital LLC "Quick Service Restaurants"	154.96KB
	Analysis of the effectiveness of the use of working capital LLC Fast Service Restaurants. Problems of using working capital of the enterprise. Working capital ensures the continuity and rhythm of all processes flowing at the enterprise: supply, production, marketing, financing. The company has sufficient working capital prerequisite for its normal functioning in a market economy.
4813.		ANALYSIS OF THE EFFICIENCY OF THE USE OF WORKING ASSETS OF THE ENTERPRISE ON THE EXAMPLE OF LLC TPP "MERCURY"	406.11KB
	The concept of the composition and structure of working capital. Information base for the analysis of the effectiveness of the use of working capital. The coefficients characterizing the efficiency of the use of working capital ...
8172.		Analysis of the financial condition and efficiency of the use of working capital of the enterprise (on the example of LLC TD "Makarov plus company")	603.39KB
	Working capital ensures the continuity and rhythm of all processes occurring at the enterprise firm: supply of production, marketing, financing. In Russia, up to 40 of all enterprise resources are concentrated in working capital. Working capital of the company is constantly in motion, making a circuit.
7716.		Accounting for intangible assets, reserves, contingent assets and liabilities	29.29KB
	An intangible asset is identifiable if its specific future economic benefits to be derived from that asset can be clearly distinguished from those derived from goodwill. Control over an intangible asset means that the company has the right to receive future economic benefits from the asset, as well as the ability to prevent others from accessing these benefits.
19786.		Economic efficiency of the use of working capital of the enterprise and ways to improve it (TOO "Agrofirma Dievskaya")	102.6KB
	The essence of working capital is determined by their economic role, the need to ensure production process, which includes both the production process and the circulation process. Working capital is an indispensable condition for the implementation of business activities by the enterprise. In fact, working capital is cash advanced to working capital and circulation funds.
15105.		Improving the efficiency of the use of working capital in Fast Service Restaurants LLC	279.1KB
	Current assets of the enterprise and their management The concept of the composition and structure of working capital. Sources of working capital formation. The efficiency of the use of working capital. Analysis of the use of working capital at the enterprise Fast Service Restaurants LLC.
20578.		ANALYSIS OF RESERVES AND WAYS TO INCREASE THE PROFITABILITY OF THE ENTERPRISE, IN ORDER TO INCREASE ITS MARKET VALUE, ON THE EXAMPLE OF LLC "GUILDIYA"	196.02KB
	Profit is the primary incentive to create new or develop existing enterprises. The opportunity to make a profit encourages people to look for more effective ways combination of resources, to invent new products for which demand may arise, to apply organizational and technical innovations that promise to increase production efficiency. Working profitably, each enterprise contributes to the economic development of society, contributes to the creation and enhancement of social wealth and the growth of the well-being of the people.

The turnover of funds invested in the property of the organization is to study the levels of dynamics of various financial ratios turnover, which allows you to evaluate how efficiently the organization uses its assets.

Economic value of turnover:

• 1) the amount of assets necessary for the organization to carry out the process of production and marketing of products (goods, works and services) depends on it;
• 2) the acceleration of capital turnover helps to reduce the need for working capital ( absolute release), increase in production volumes (relative release) and increase in profits. As a result, improved financial condition organization, strengthening its solvency.

Turnover ratios are of great importance for assessing the financial condition of an organization, since the rate of capital turnover, that is, the rate of its transformation into monetary form, has a direct impact on the solvency of the organization. In addition, an increase in the rate of capital turnover reflects, under other equal conditions increasing 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 a more efficient management of the organization's assets 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 assesses the organization's ability 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 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 with the acceleration of turnover, 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.

Asset turnover ratios, 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 the accounting and analytical practice of economically developed countries, in addition to tempo indicators, they use the economic growth sustainability coefficient 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 already established relationships between various sources of 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 leverage: reducing the share of dividends paid, improving the production process (reducing capital intensity, increasing profitability), finding 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, since 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.

Turnover analysis allows you to assess the organization's ability to generate income by making a turnover "money - goods - money". As a result of the turnover analysis, one can understand the conditions for material supply, the sale of finished products, the conditions for settlements with buyers and suppliers, etc.

What is turnover?

turnover- this is a value that characterizes the time period for which the full circulation of goods, money, or the number of these circulations for the time period is carried out.

Thus, the value of the asset turnover ratio equal to 3 shows that the organization during the year receives revenue three times the value of its assets (assets “turn around” 3 times in a year).

Turnover is often calculated in terms of the number of days it takes to complete one turn. To do this, 365 days are divided by the annual turnover ratio. For example, an asset turnover ratio of 3 shows that assets are turned over in an average of 121.7 days (i.e., revenue equal to the value of the organization's assets is received during this period).

Turnover ratios

Turnover ratios- show the intensity of use (rate of turnover) of certain assets or liabilities. Turnover ratios are indicators of the business activity of the enterprise.

Among the most popular turnover ratios in financial analysis use:

• turnover of current assets
• inventory turnover
• receivables turnover
• accounts payable turnover
• asset turnover
• equity turnover

The higher the asset turnover ratio, the more intensively the assets are used in the organization's activities, the higher the business activity. However, turnover is highly dependent on industry specifics. In trade organizations where large amounts of proceeds pass, the turnover will be higher; in capital-intensive industries - lower. Comparative analysis turnover ratios of two similar enterprises in the same industry can show differences in the effectiveness of asset management. For example, a large turnover of receivables indicates a more efficient collection of payments from buyers.

• money cycle
• inventory turnover
• Equity turnover

Working capital turnover

Working capital turnover(eng. working capital turnover) - characterizes the speed of turnover of working capital from the moment of payment for material assets to the return of money for sold products to a bank account. The amount of working capital is calculated based on their total size minus the balance of funds in the bank account of the enterprise.

With the acceleration of turnover with the same volume of products sold, the company needs less working capital. If the turnover of working capital accelerates, then this reduces the need for enterprises in working capital, allows you to use cash and material resources more effective. Working capital released from production can be used in other branches of production. Thus, the indicator of turnover of working capital reflects the entire set of economic processes: the acceleration of the growth rate of labor productivity, the decrease in the capital intensity of production, etc.

The main factors for accelerating the turnover of working capital are: reduction in the total duration technological cycle; improvement of technology and organization of production; improving the conditions for supplying enterprises and marketing products; clear organization of payment and settlement relations.

money cycle

Money cycle, or working capital cycle(English cash conversion cycle, operating cycle) is the period of circulation of funds from the moment of acquisition of resources (raw materials, materials, labor) and until the moment of sale of finished products and receiving money for it. This period reflects the effectiveness of the organization's working capital management.

A short cash cycle allows the organization to quickly return the money invested in current assets. The shorter the cycle, the better for the organization. There are even cases when an enterprise has a negative cash cycle indicator. For example, this occurs in enterprises with strong market positions, so they can dictate terms to both buyers (reducing the payment period for their products) and suppliers (receiving payment deferrals from them).

inventory turnover

inventory turnover(English inventory turnover) - the process of updating and replacing stocks by moving material assets (money invested in them) from the category of stocks to the production and / or sales process. Shows how many times during the analyzed period the organization used the average available inventory balance.

In practice, a situation often arises when managers, fearing a possible shortage of goods, create excess stocks to make sure, and do not think that this leads to excessive costs, freezing funds and reducing profits.

A good manager avoids large stocks with low turnover, preferring to free up resources by accelerating the turnover of goods.

Inventory turnover is an important criterion and should be carefully analyzed.

If the resulting ratio is too high (compared to the previous period or to average data), this may indicate insufficient stocks. If the ratio is too low, then this may mean that the inventory is large or not in demand. For example, a coefficient equal to 3 means that a given product or group of products turns over 3 times within a month.

Inventory turnover characterizes the mobility of the funds that the company invests in the creation of stocks: the faster the money is returned to the company in the form of proceeds from the sale of finished products, the higher the business activity of the organization.

There are no generally accepted standards for turnover indicators; they should be analyzed within the framework of one industry and, even better, in dynamics for a particular enterprise. A decrease in the inventory turnover ratio may reflect the accumulation of excess inventory, poor warehouse management, and the accumulation of unusable materials. But high turnover is not always a positive indicator, since it can indicate the depletion of stocks, which can lead to interruptions in production.

In addition, inventory turnover depends on the organization's marketing policy. For organizations with a high profitability of sales, the turnover is lower than for enterprises with a low rate of return.

Accounts receivable turnover

Accounts receivable turnover(English receivable turnover) - measures the speed of repayment of the organization's receivables, how quickly the organization receives payment for the sold goods (works, services) from its customers.

The accounts receivable turnover ratio shows how many times in a period (usually a year) an organization has received payment from customers in the amount of the average balance of unpaid debts. The indicator measures the effectiveness of work with customers in terms of collection of receivables, and also reflects the organization's policy regarding sales on credit.

For the turnover of accounts receivable, as well as for other indicators of turnover, there are no clear standards, since they are highly dependent on the industry characteristics and technology of the enterprise. But in any case, the higher the coefficient, i.e. the faster buyers repay their debt, the better for the organization. Wherein efficient operation not necessarily accompanied by high turnover. For example, when selling on credit, the balance of receivables will be high, and the turnover ratio will be low.

Accounts payable turnover

Accounts payable turnover(accounts payable turnover) is an indicator that links the amount of money that an organization must return to creditors (mainly suppliers) by a certain date and the current value of purchases or goods and services purchased from creditors. The ratio shows how many times (usually per year) the organization repaid the average amount of its accounts payable.

A high share of accounts payable reduces financial stability and solvency of the organization, however, accounts payable to suppliers and contractors allows the enterprise to use "free" money for the duration of its existence.

The benefit of the enterprise in this case is not difficult to calculate: it consists in the difference in the amount of interest on the loan equal to the amount of this debt (if the enterprise took this money from the bank at interest), for the time the debt was on the balance sheet of the enterprise, and the amount of this accounts payable. That is, the profit of the enterprise is how much the bank would have to pay for interest on a loan for providing a given amount for a given period.

If the turnover of receivables is higher (i.e., the ratio is less than) the turnover of accounts payable, then this is a positive factor.

The turnover of accounts payable is highly dependent on the industry, the scale of the organization. For creditors, a higher turnover ratio is preferable, while the organization itself is more profitable with a low ratio, which allows it to have the balance of outstanding accounts payable as a free source of financing for its current activities.

Asset turnover (resource return)

Asset turnover (resource return)(English asset turnover) - allows you to determine the number of turnovers of capital over a period of time.

The asset turnover ratio allows you to evaluate the efficiency of using all the assets of the enterprise, regardless of the source of their formation. In addition, the determination of the resource return ratio clearly shows how many rubles of profit a company receives from each ruble invested in assets.

The financial condition of the enterprise, its solvency and liquidity directly depend on the rate of turnover of invested funds.

The most important indicators of asset turnover are the speed and period of turnover. The rate of turnover means the number of turnovers of the company's capital or its components for the estimated period of time. The turnover period is the average time required to return the funds invested in production or commercial operations.

The coefficient characterizes various aspects of activity: from a commercial point of view, it reflects either excess sales or their insufficiency; financial - the rate of turnover of invested capital; from the economic point of view, the activity of the funds that the investor risks. If it significantly exceeds the level of implementation over the invested capital, then this entails an increase in credit resources and the possibility of reaching the limit beyond which creditors begin to participate more actively in the business than the owners of the company. In this case, the ratio of liabilities to equity increases, the risk of creditors increases, in connection with which the company may have serious difficulties associated with the inability to pay its obligations. On the contrary, a low indicator means the inactivity of a part of own funds. In this case, the equity turnover ratio indicates the need to invest own funds in production.

current assets- one of the resources without which the commercial activity of the enterprise is impossible. Calculation and analysis of indicators turnover current assets characterizing the efficiency of managing this resource will be considered in this article.

Current assets, their composition and indicators for analysis

Systematic analysis commercial activities enterprises as an element of effective management is based on the calculation of a number of indicators and the normalization of their values. Comparison of actual and standard indicators makes it possible to identify various patterns in business processes, eliminate risks, and make timely and correct management decisions.

The main source of information for calculating analytical coefficients is financial statements.

A significant part of the calculations is based on information about the movement and balances current assets.

To current assets include the following types of company assets:

• stocks, including raw materials, materials, goods for resale and goods shipped, finished products, prepaid expenses;
• VAT on purchased assets;
• accounts receivable;
• financial investments;
• cash.

In accordance with PBU 4/99 "Accounting statements of the organization" data on current assets enterprises are contained in section II of the balance sheet. Often in the literature you can find the terms "working capital" or "funds in circulation."

Value current assets used in the calculation of the following indicators:

• profitability;

• liquidity;

• financial stability.

Let's take a closer look at analysis turnover of current assets, which is one of the aspects characterizing the business activity of the enterprise.

Why do you need a current asset turnover analysis?

The dynamics of indicators characterizing the turnover of working capital is necessarily disclosed in the information accompanying financial statements(clauses 31, 39 PBU 4/99), as part of a group of coefficients that allow interested users of financial statements to assess the financial stability, liquidity and business activity of an enterprise. current assets and their fair assessment are carefully checked in the process of auditing financial statements.

Competent management of funds in circulation allows you to effectively attract credit sources to finance current activities. To assess the creditworthiness of an enterprise, banks use well-known indicators for assessing financial and economic activities. Based on the ranking of these indicators, an enterprise is assigned a certain rating, on which credit conditions depend, including the credit rate, the amount of collateral and the loan term. current assets may also serve as collateral for loan obligations.

The presence of a system of analytical coefficients greatly facilitates the dialogue with the tax authorities, if it is necessary to explain the causes of seasonal losses. current assets may cause an excess of VAT deductions over the amount of VAT accrued.

Consider the procedure for calculating turnover ratios.

Current assets turnover ratio

The turnover ratio shows how many times in the period under review current assets converted into cash and vice versa. The coefficient is calculated by the formula:

Kob \u003d B / SSOA,

where: Cob - turnover ratio of current assets ;

B - revenue for the year or another analyzed period;

SSOA - average cost current assets for the analysis period.

Attention should be paid to the calculation average cost current assets. For the purposes of obtaining the most correct value of the turnover ratio, it makes sense to divide the analyzed period into equal intervals and calculate the average cost using the following formula:

SCOA \u003d (COA0 / 2 + COA1 + COAn / 2) / (n - 1),

where: SSOA - average cost current assets for the period of analysis;

SOA0 - the balance of funds in circulation at the beginning of the analyzed period;

СОА1, СОАn - the balance of funds in circulation at the end of each equal interval of the analyzed period;

n is the number of equal time intervals in the analyzed period.

This method of calculating the average value of funds in circulation will take into account seasonal fluctuations in balances, as well as the influence of external and internal factors.

Nevertheless, the value of the calculated turnover ratio provides only general information about the state of business activity of the enterprise and is of no value for management without analyzing its dynamics, comparing it with standard indicators.

Turnover of current assets: formula in days

The most informative indicator from the point of view of managing the commercial activities of an enterprise is the turnover of current assets in days or other units of time (weeks, months). This indicator can be calculated using the formula:

About \u003d K_dn / Cob,

where: About - turnover in days;

K_dn - the number of days in the analysis period;

Cob - turnover ratio of current assets.

The normative values ​​of turnover in days and the turnover ratio are set by the enterprise independently based on the analysis of a combination of factors, such as the terms of contracts, industry specifics, region of activity, etc.

current assets have a different structure depending on the type of activity. For example, if an enterprise provides services and does not have stocks, the focus in the analysis of current assets turnover will be on receivables. Efficient Management this type of funds in circulation will give the company the opportunity to release the funds frozen in receivables and thereby improve the financial position of the enterprise.

How to set the standard for the turnover of receivables? It is necessary to compare the turnover of receivables with the turnover of accounts payable. Economical effect from the management of receivables will be the higher, the greater the excess in days of the turnover of accounts payable over the turnover of receivables.

An analysis of the dynamics of receivables turnover indicators will make it possible to identify negative trends in the event that uncollectible debts appear in the receivables.

Results

current assets enterprises are a rapidly changing resource that most sharply reacts to changes in external and internal business environment. Turnover indicators current assets are an important indicator of the effectiveness of the commercial activities of the enterprise.