What is working capital. Working capital. The role of working capital in the provision of financial assets of the enterprise

Basic concepts of machinery and equipment assessment Formation of the machinery and equipment market is taking place in difficult conditions typical for the current state of the Russian economy as a whole. Machinery and equipment, being an indispensable condition for the development of society, continues and completes the process of producing products by delivering them to the place of consumption.

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A firm's capital turnover is the difference between the current assets that the company owns and its short-term liabilities.

Net equity

By the term "net capital" I mean the difference between the total amount of assets on the balance sheet of the enterprise and the amount of all liabilities. If the amount of assets exceeds the amount of liabilities, this indicates a positive net worth. Accordingly, negative net capital happens when the company has more liabilities than assets.

The net capital indicator is very important for a corporation, since a positive value indicates a stable financial condition of an economic entity. If the amount of assets significantly exceeds the amount of liabilities, the firm is highly stable. There is also relative stability - when the difference between assets and liabilities is immaterial.

Circulation of capital

Capital turnover is a process that begins with an investment in production, and ends with the fact that products are produced, works are performed or services are provided. Capital turnover is an ongoing process. Its duration is determined by how quickly the advanced funds will make a full turnover and when the owner of the company will receive an effect from it in the form of cash (sometimes in the form of a social effect).

The peculiarity of capital turnover is that the funds invested by the owner in production are not fully returned. The point here is that, in addition to working capital, fixed assets are involved in the production process, which are assets that transfer their value to finished products in parts, and are also consumed over several years.

Long-term capital

Fixed assets (OS) are assets that are able to take direct or indirect participation in the production process. Their distinctive feature is that fixed assets can be used for many years, and their value is transferred to the cost price in parts by means of depreciation deductions.

These include structures, buildings, vehicles, equipment, etc.

Determination of OS efficiency

There are a number of parameters that are used in enterprise economics to calculate the effectiveness of using a firm's OS. These include the following coefficients:

1. Fixed capital security.
2. Equipped with capital.
3. Return of fixed assets.
4. Capital intensity.

PF security

The first of the indicators that is used to assess the use of fixed assets is security. It is defined as the ratio of the value of fixed capital to the area of ​​agricultural land. It must be remembered that this parameter can only be used to assess the efficiency of the funds of agricultural enterprises. The calculation of the coefficient is presented below:

• About = Ssg. / N, where

About - fund availability;

SSG - the cost of capital on average per year;

Psu - the area of ​​agricultural land.

Armament

This index shows the size of fixed assets, which per one average annual employee of the enterprise:

• В = Ссг / К, where

B - armed with capital;

K is the average annual number of company personnel;

Ссг - the amount of fixed capital on average for the year.

Recoil

Return on assets is calculated as the ratio of all products in monetary terms, which were manufactured by the company during the analyzed period, to the cost of fixed assets for the period on average. This ratio plays an important role in assessing how efficiently the company is able to use its own fixed assets. An increase in the parameter is considered a positive trend, since it means that the volume of output is growing per one monetary unit of the value of fixed capital. The normative value of the return on assets is more than one.

• From = VP / Ss.y., where

From - return on assets;

VP - all gross products of the company in monetary terms;

SSG - the cost of a capital on average per year.

Capacity

Capital intensity is the inverse of the return on assets. It can be calculated in the following ways:

• E = (From) -1 = 1 / From, where

E - capital intensity;

From - return on assets.

Also, the indicator can be calculated as the ratio of the amount of fixed capital to the value of gross production created during the reporting period.

• Е = (Ссг. / ВП), where

E - capital intensity;

VP - the cost of gross output, which was produced by the enterprise for the reporting period;

SSG - the average cost of fixed capital for the reporting period.

The enterprise must strive to increase the rate of return on assets. This will mean that the underlying capital is being used efficiently. At the same time, the ratio of the capacity of fixed capital will decrease.

Working capital

These are enterprise funds that take part in the production process, are fully consumed, being part of the cost of production, and are used during one production cycle. Examples of working capital can be raw materials, money, wages of the company's staff, etc.

In the company's balance sheet, working capital is displayed in the second section of the asset. The components of this type of assets are:

1. Firm stocks.
2. Unfinished production.
3. Finished products of the company.
4. Receivables.

Liquidity

Liquidity - the ability of assets to be converted into cash in order to pay off the company's current debt. This one is at the center of all the constituent components of working capital.

Each asset of the company has a different degree of liquidity. The least liquid are non-current assets. The money in the cash desk of the company and on its accounts is an absolutely liquid asset.

Liquidity indicators

All assets are divided into four categories according to the degree of their liquidity:

1. The most liquid ones.
2. Assets that can be sold as soon as possible.
3. Assets that cannot be sold quickly.
4. Difficult to implement.

Each of the four groups of assets corresponds to four groups of funding sources:

1. Urgent.
2. Short term.
3. Long term.
4. Permanent liabilities.

This classification was carried out in order to be able to determine the liquidity of the entire enterprise as a whole. A company is considered liquid when the size of each of the types of assets on the balance sheet exceeds the size of the corresponding liability.

Indicators for assessing the solvency of the enterprise

To determine the level of liquidity of an enterprise, the following indices are used:

1. Coverage ratio.
2. Quick ratio.
3. Absolute liquidity ratio.

Each of these indices shows how quickly a company is able to convert its assets into cash in order to pay off current accounts payable.

• KP = (Rev. A - ZU) / TO, where

KP - coverage ratio (the second name of the indicator is the company's current liquidity ratio);

About. A - current assets of the enterprise;

ЗУ - debts of founders on contributions;

TO - liabilities of a short-term nature (current).

This indicator shows how quickly a firm is able to recover its short-term debt using only working capital.

The second indicator - urgent liquidity - reflects the firm's ability to pay off all its current liabilities if it has problems selling products. The coefficient can be calculated as follows:

• Ksl = (TA - Z) / TO, where

Ksl - quick liquidity ratio;

TA - current assets of the firm;

З - reserves;

TO - current liabilities.

The last indicator for calculating the company's solvency is called absolute liquidity. The calculation formula is as follows:

• Cal = D / TO, where

Cal is the absolute liquidity ratio;

D - money, as well as their equivalents;

TO - current liabilities.

The value of this parameter should be approximately 0.2. This means that every day the company is able to pay off 20 percent of its current liabilities. The index shows what percentage of its obligations the company is able to pay off in the very near future.

Determination of the effectiveness of the use of working capital

As in the case of the fixed capital of the enterprise, there are indicators that characterize how effectively the company uses its working capital. There are three such parameters in total:

1. Turnover ratio.
2. Duration of capital turnover.
3. Load factor.

Turnover and working capital utilization

The first and main indicator in assessing the efficiency of capital use is the turnover ratio. This parameter is analogous to the rate of return on assets, which is used to calculate the efficiency of fixed assets.

• Cob = RP / Oob, where

The indicator indicates how many turnovers of working capital are made in one certain period. For an enterprise, it is considered positive when this coefficient increases.

The inverse index is the load factor. It can be calculated as follows:

• Kz = Oob / RP = 1 / Kob, where

Кз - load factor;

Cob - turnover ratio;

RP - products sold in monetary terms in a certain period;

Oob - the balance of working capital.

Capital turnover

This ratio is calculated based on the turnover ratio. The calculation formula is as follows:

• Pob = D / Cob, where

Wb - the period of the working capital turnover;

D is the number of days;

Cob is the turnover ratio.

The calculation is based on the number of days in the period. It can be a quarter, a month, half a year, or a whole year. The most often analyzed is the efficiency of capital turnover during the year.

The value of the ratio depends on the turnover ratio. A positive trend for an enterprise is a decrease in the turnover period, since this means that the turnover ratio is growing, and with it the rate of capital turnover is growing. The faster the capital rotates, the more attractive the firm is considered to be for investors.

Rate of return

The last metric commonly used to determine how capital is used is the rate of return. This indicator takes into account both circulating and basic. The rate of return of the company is calculated as the ratio of profit to the total cost of capital of the firm.

• Np = P / (Co.w. + Sob.s.) * 100%, where

Нп - profit rate;

P - profit;

SOS. - the cost of fixed assets;

Own. - the cost of working capital.

There are several ways to improve the efficiency of the use of working capital. First, a company can optimize its inventory. Secondly, attention should be paid to the growth rate of working capital. You should also increase the volume of sales of products. In this case, the rate of increase in sales must exceed the rate of increase in fixed assets.

The efficiency of using the capital of an enterprise seriously affects the result of economic activity. Any company should strive to use its capital more rationally, which will give it the opportunity to increase the number of manufactured products and the volume of profits.

Any production process at an enterprise is the result of the union of labor with the means of production, which are represented by fixed and circulating capital. Working capital is the most important element of production, which provides it with the necessary financial resources and determines the continuity of the operation of the enterprise.

Working capital represent the amount of money advanced for the creation of circulating production assets and circulation funds.

Revolving production assets - this is a part of the means of production that once participates in the production process, immediately and completely transfers its value to the manufactured products and, in the production process, changes (raw materials) or loses (fuel) its natural-material form. These include: raw materials, basic and auxiliary materials, components, not finished products, fuel, containers, overalls, deferred expenses, etc.

Circulation funds include funds serving the process of selling products (finished products in a warehouse; goods shipped to customers, but not yet paid by them; funds in settlements; cash in the cash desk of the enterprise and in bank accounts). They do not participate in the production process, but are necessary to ensure the unity of production and circulation.

The share of circulating production assets and circulation funds in the structure of circulating assets depends on the industry affiliation of the enterprise, the duration of the production cycle, the level of specialization and cooperation, and other factors.

The current assets of the enterprise are in constant motion and function simultaneously in two areas: the sphere of production and the sphere of circulation. During the production cycle, they go through three stages. circuit:

→ first stage (supply) involves spending money and supplying objects of labor. At this stage, there is a transition of circulating assets from the monetary form to the commodity one;

→ on second stage (production) circulating assets go into production, ultimately turning into finished goods;

→ third stage (marketing) occurs when the finished product is sold to consumers. Circulating assets move from the sphere of production to the sphere of circulation and again change their form - from commodity to money.

Thus, the funds make one turn, then everything is repeated again: money from the sale of products is directed to the acquisition of new objects of labor, etc.

In the process of movement, circulating assets are simultaneously at all stages and in all forms, as a result of which the continuity and rhythm of the production process at the enterprise is achieved. The duration of the finding of working capital at each stage of the circulation is not the same and depends on the technological properties of raw materials and finished products, the duration of the production cycle, the characteristics of the material and technical supply and sales of products. So, for example, the seasonality of the supply of raw materials in some industries (fruit and vegetable industry) causes a delay in working capital at the first stage of the circulation; in industries with a long production cycle (shipbuilding), there is a delay in working capital at the second stage of the circulation in the form of work in progress; the uneven sale of products causes the accumulation of funds at the third stage of the circulation.

In the practice of economic work to study the composition and structure of working capital are classified according to several criteria.

By areas of turnover (by economic content) circulating assets are subdivided into circulating production assets (sphere of production) and funds of circulation (sphere of circulation).

Separate parts of working capital have different purposes and are used in different ways in production and economic activities, therefore they are classified for the following items.

Revolving funds:

ü production stocks - raw materials, basic and auxiliary materials, purchased semi-finished products, fuel, containers, spare parts;

ü work in progress and semi-finished products of our own production;

ü expenses of future periods.

Circulation funds:

ü finished products in warehouses;

ü products shipped but not paid for;

ü funds in payments;

ü cash on hand and on accounts.

Price work in progress consists of the cost of raw materials, basic and auxiliary materials, fuel, energy, water, part of the cost of the OPF transferred to the product, as well as wages accrued to employees. The amount of work in progress depends on the duration of the production cycle and the size of the batch.

The costs of mastering new products, preparatory and other work, calculated for a long time, amount to Future expenses and written off to the cost of production in the future. Their need is due to the implementation of work related to the financing of promising changes in the structure of products, technology, etc.

By rationing coverage working capital is divided into standardized and non-standardized. For the normalized working capital, standards are established, i.e. minimum sizes (working capital in inventories). The amount of non-standardized working capital is controlled not according to standards, but according to actual data (accounts receivable, funds in settlements, cash on hand and on the accounts of the enterprise).

By sources of formation working capital is divided into own and borrowed. Own assets are current assets that are in constant use of the enterprise. These include the funds that the enterprise is endowed with during its organization (authorized capital), deductions from profits, stable liabilities (for example, salary arrears to staff). However, in the process of production and economic activities, for various reasons, an enterprise often has an additional need for financial resources, which is covered by borrowed funds (for example, bank loans).

The presence of own and borrowed funds in circulation is explained by the peculiarities of the organization of the production process. Each enterprise is faced with the task of maintaining an optimal proportion between its own and borrowed funds, which characterizes the financial stability of the enterprise. It is believed that a constant minimum amount of funds to finance production needs is provided by its own working capital. The temporary need for funds, which has arisen under the influence of reasons dependent and not dependent on the enterprise, is covered by borrowed funds.

Under structure of working capital the ratio of their individual elements in the totality is understood. It depends on the industry affiliation of the enterprise, on the level of specialization and cooperation, on the quality and competitiveness of the products, the duration of the production cycle, and the rate of scientific and technological development of the enterprise. At enterprises with a long production cycle (for example, in heavy machine building, shipbuilding), the share of work in progress is high; in the light and food industries, where the production cycle is relatively short, production stocks prevail in the structure of working capital with a low share of work in progress; there are no unfinished products at all in the electric power industry; at the enterprises of the mining industry there is a significant share of deferred expenses.

Analysis of the structure of working capital at the enterprise is of great importance, since it is a kind of mirror that reflects the financial condition of the enterprise. Thus, an excessive increase in the share of accounts receivable, finished goods, work in progress indicates a deterioration in the financial condition. Accounts receivable characterizes the diversion of funds from the turnover of a given enterprise and their use by debtors in their turnover. The unsatisfactory organization of sales of finished products leads to an increase in the share of finished products in the warehouse (overstocking), the diversion of a significant part of working capital from circulation, a decrease in sales, and, consequently, profits. On the contrary, a well-organized system of sales of products, the release of goods according to the orders of consumers, and an established mechanism of shipment do not allow circulating assets to linger at this stage of the circulation.

Organization of working capital at an enterprise includes determining the need for working capital, their structure, sources of forming working capital and managing the use of working capital (increasing their turnover).

The essence, composition, structure and purpose of the working capital of the enterprise.

Determination of the enterprise's need for working capital.

Indicators of the use of the working capital of the enterprise.

4. Ways to improve the efficiency of using working capital

enterprises.

1. Essence, composition, structure and purpose of the working capital of the enterprise

Working capital is used along with the fixed capital for the operation of the enterprise. The economic purpose of working capital is to ensure a continuous production process and economic activity of the enterprise.

The term "working capital" (its synonym in domestic accounting - working capital) refers to the mobile assets of an enterprise, which are cash or can be converted into them during a year or one production cycle. Net working capital is defined as the difference between current assets (working capital) and current liabilities (accounts payable) and shows the extent to which current assets are covered by long-term sources of funds. An analogue of this indicator in domestic practice is the value of its own circulating assets.

Typical composition and classification of working capital are presented in table. 1.

According to the sources of formation, the current assets of the enterprise are divided into own and borrowed.

Revolving production assets enter the production process in their natural form, and in each production cycle are completely consumed, change their natural-material form and transfer their value to the created product, and are also fully reimbursed after each production cycle:

1. Productive reserves- these are objects of labor that have not yet entered the production process and are in the warehouses of the enterprise in the form of stocks. The need for production stocks is due to the fact that the production process is carried out, as a rule, continuously, and the supply of objects of labor - periodically.

2. Work in progress and self-made semi-finished products- these are objects of labor that are at different stages of processing, but not yet ready for implementation.

3. Future expenses(BPO) - these are costs that the company incurs in the reporting period, but which are subject to repayment at the expense of the company's sources of funds in future periods (for example, associated with the development of the release of new types of products - the manufacture and purchase of tools and devices for the manufacture of new types of products, payment per project, subscription to magazines, etc.).

4. Finished products(GP): GP in the warehouses of the enterprise - produced at the given enterprise and ready for shipment to consumers; GP shipped, en route, but not paid by buyers.

5. Goods shipped but not paid by buyers.

6. Cash- at the cash desk, on current accounts, on foreign currency accounts, other funds.

7. Short-term financial investments- investments in dependent companies; own shares purchased from shareholders; other short-term financial investments (intended for resale in the short term in order to generate income).

8. Acquired property taxes

9. Receivables(DZ) - DZ, payments for which are expected more than 12 months after the reporting date, and DZ, payments for which are expected within 12 months after the reporting date, including from buyers and customers, on promissory notes receivable, debt of subsidiaries and dependent companies, on advances issued, arrears of participants (founders) on contributions to the statutory fund, from other debtors.

10. Other current assets- Debts of business entities for overpayments and erroneous deliveries; inventory items accepted prior to clarification; tax payments subject to offset (except VAT), etc.

In its movement, circulating assets pass sequentially 3 stages- money, production and commodity.

Money stage: D - T - PZ.

Production stage consists in the transformation of inventories into finished products by applying to them the labor of the enterprise's employees, which materializes into work in progress and is actually the source of the enterprise's profit: PZ - WIP - GP.

Commodity stage is to convert the finished product into money:

GP - T "- D"

Scheme complete circulation of working capital the enterprise is shown in Fig. 1.

Rice. 1. - Scheme of the circulation of the working capital of the enterprise

where D is the money available to the enterprise at the time of its creation or received as a result of the sale of products (works, services);

T - inventory items acquired by the enterprise and necessary to start (continue) the production process;

PZ - production stocks, i.e. inventory items in the warehouses of the enterprise;

WIP - work in progress;

GP - finished products;

T "- the finished product of the enterprise (goods, works, services), expressed in a commodity form, that is, products for which there is already a buyer;

D "- funds received as payment for products to the current account of the enterprise.

DД - change in the amount of working capital. In this case, D "= D + DD.

When DД> 0, the working capital increases, i.e. the enterprise has a profit, and at DD< = 0 оборотный капитал не увеличивается, т.е. предприятие является нерентабельным или убыточным.

It should be noted that for the normal functioning of the enterprise and the continuity of the circulation of working capital, it must be simultaneously at all stages and in all forms, since the absence of any element of working capital leads to a stop of the circulation.