Working capital of enterprises: concept, economic essence, structure, sources of financing.

1. The concept and the economic essence of the working capital of the enterprise.

The process of production and sale of products can be carried out without interruption if the enterprise has not only the necessary fixed assets, intangible assets, but also circulating assets, mainly in the form of stocks of raw materials, materials, semi-finished products, fuel, etc. sphere of production, being the material basis of production and represent production assets. But in the process of functioning, the means of labor and objects of labor in different ways and to varying degrees transfer their value to the value of the product produced. This is the reason for the division of production assets into fixed and circulating assets.

In terms of material content, circulating production assets are objects of labor, as well as instruments of labor, which are included in the composition of low-value and wearing out items. Revolving production assets serve the sphere of production and completely transfer their value to the cost of finished goods, changing the original form in the course of one production cycle.

Revolving production assets represent the minimum stocks of raw materials, basic materials, purchased semi-finished products and components, auxiliary materials, fuel, spare parts for repairs, low-value and wearing items, as well as work in progress, which are the minimum necessary for the implementation of the production program.

The funds of circulation, although they do not participate directly in the production process, are necessary to ensure the unity of production and circulation. The nature and scope of their functioning create the prerequisites for separating them into an independent concept of "circulation funds".

Circulation funds consist of stocks of finished products in the company's warehouse, goods shipped to consumers, and cash balances in bank accounts and at the company's cash desk.

Working capital and circulation funds are closely related to each other. Their movement is of the same nature and constitutes a single process of the turnover of the enterprise's assets.

At the same time, there is a constant and natural change in the forms of the advanced value: it turns from monetary value into a commodity value, then into a production value, and again into a commodity and money value. Thus, there is an objective need to advance funds to ensure the continuous movement of circulating production assets and circulation funds in order to create the necessary production stocks, backlog of work in progress, finished products and conditions for its implementation.

The production and commercial (operational) cycle is a period of full turnover of the entire amount of circulating assets, during which a change in their form occurs.

The movement of the working capital of the enterprise in the process of the production and commercial cycle goes through four main stages, successively changing its form.

At the first stage, cash and other highly liquid assets (bills of exchange, deposits, etc.) are used to purchase raw materials, materials, fuel, etc., that is, reserves of factors of production.

At the second stage, stocks of individual factors of production as a result of direct production activities are converted into stocks of finished goods.

At the third stage, stocks of finished products are sold to consumers and are converted into accounts receivable before payment is due.

At the fourth stage (collection), the paid receivables are again converted into monetary assets (some of which can be stored in the form of highly liquid short-term financial investments until the maturity of their use).

The most important characteristic of the production and commercial cycle, which significantly affects the volume, structure and efficiency of using the working capital of the enterprise, is its total duration. It includes the period of time until the moment when cash and other highly liquid assets are spent on the purchase of inventories before the receipt of money from debtors for the finished goods sold to them.

Thus, the movement of circulating production assets and circulation funds is of the same nature and constitutes a single process. This makes it possible to combine working capital and circulation funds into a single concept - working capital

Working capital is a set of funds advanced for the creation and use of circulating production assets and circulation funds, which ensure the continuity of the production process and the sale of products.

The presence of working capital in the minimum required amounts, ensuring the normal production and commercial activities of the enterprise, is an indispensable condition for the successful performance of their functions.

At each specific enterprise, the amount of working capital, their composition and structure depend on the nature and complexity of production, the duration of the production cycle, the cost of raw materials, the terms of its supply, the accepted procedure for calculations, etc. are not the same. For example, at heavy industry enterprises it is lower than at light industry enterprises.

The current assets of the enterprise, being one of the main financial categories that have a significant impact on the sphere of production and the sphere of circulation, perform such basic functions as production and payment and settlement.

The production function is to provide money for the continuity of the production process.

The payment and settlement function of circulating assets is manifested in a direct influence on the state of settlements in the national economy and thereby on money circulation in the country. As already noted, the combination of circulating assets and circulation funds into one concept is based on the economic essence of circulating assets, designed to ensure the continuity of the entire reproduction process, during which funds necessarily go through both the stage of production and the stage of circulation.

However, the definition of circulating assets as advanced funds allocated for the creation of stocks of circulating production assets and circulation funds does not disclose the full economic content of this category, since it does not take into account that, along with advancing a certain amount of monetary costs, an objective process of advancing into the same reserves takes place. the value of the surplus product created by labor in the production process. Therefore, for profitable enterprises, as a rule, upon completion of the turnover of funds, the total amount of advanced working capital increases by the share of profit remaining at the disposal of the enterprise. For some unprofitable enterprises, upon completion of the turnover of funds, the availability of working capital is reduced by the amount of unplanned losses.

Thus, when determining the essence of the working capital of enterprises, it is necessary to proceed from the fact that their value is advanced into the created stocks of production assets and circulation funds. Therefore, when planning and accounting on the balance sheets of working capital, only in the amount of money advanced in them, the size of the national wealth of our country is deliberately reduced by the amount of the difference between the cost of finished goods and goods shipped and their cost. It is known that material circulating assets constitute a significant part of the country's national wealth. In addition, the amount of this difference reduces the amount of mismanagement losses allowed by individual enterprises and organizations in connection with damage to finished products, shortages and theft.

Based on the foregoing, we can give the following definition of the working capital of the enterprise.

Working capital represents the value advanced in monetary form for the formation and use of circulating production assets and circulation funds in the minimum required amounts, ensuring the continuity of the production process and the timeliness of settlements.

The correct organization, safety and efficiency of the use of circulating assets are of great importance for ensuring a continuous process of social reproduction, a stable financial condition of all business entities, normal monetary circulation, and the real accumulation of the country's national wealth.

All this is due to the special economic content of this financial category, its dual content, which combines the advanced funds and the cost of material resources in the form of reserves of raw materials, fuel, semi-finished products, finished products and other types of material assets. Therefore, the availability of working capital, on the one hand, characterizes the amount of funds, and, on the other hand, stocks of inventories as part of the national wealth.

2. Composition and structure of working capital

An important indicator of the structure of working capital is the ratio between the funds invested in the sphere of production and in the sphere of circulation. The correct distribution of the total amount of working capital between the sphere of production and the sphere of circulation largely determines their normal functioning, the speed of turnover and the completeness of the performance of their inherent functions: production and payment accounting.

Rice. 6.2. Classification of the working capital of the enterprise.

Thus, according to the economic content, current assets can be classified into:

1. revolving production assets;

2. circulation funds.

The division of circulating assets into circulating production assets and circulation funds is due to the presence of two spheres of individual circulation of funds: the sphere of production and the sphere of circulation. Reflecting the peculiarities of their sphere of application, revolving funds and circulation funds are interrelated and interdependent. Therefore, an increase in the efficiency of the use of working capital is achieved by the best use of both working capital and circulation funds.

The composition of circulating assets is understood as a set of elements that form circulating production assets and circulation funds.

The structure of working capital is understood as the ratio between the elements in the total amount of working capital. It is influenced by the peculiarities of the organization of specific production, material and technical support, the accepted procedure for payments for inventory items. The study of the structure is the basis for predicting future changes in the composition of working capital.

The elements of working capital are: raw materials, basic materials and purchased semi-finished products; auxiliary materials; fuel and fuel; container and container materials; spare parts for repair; tools, household inventory and other wearing items; work in progress and semi-finished products of our own production; Future expenses; finished products; goods shipped; cash; debtors; others.

According to the place and role in the reproduction process, circulating assets are divided into the following four groups:

¾ funds invested in production stocks;

¾ funds invested in work in progress and prepaid expenses;

¾ funds invested in finished products;

¾ cash and settlements.

According to the degree of planning, working capital is divided into standardized and non-standardized. Non-standardized items include goods shipped, cash and settlements. All other elements of working capital are subject to standardization

According to the sources of formation, working capital is divided into own (and equated to them) and borrowed.

The presence of own and borrowed funds in the turnover of the enterprise is explained by the peculiarities of the organization of the production process. The constant minimum amount of funds for financing production needs is provided by its own funds. The temporary need for funds, which arose under the influence of reasons dependent and independent of the enterprise, is covered by a loan and other borrowed sources.

3. Sources of financing for working capital.

One of the most important principles of organizing circulating assets is their division according to the sources of formation. All sources of financing of working capital are subdivided into own and equivalent funds, borrowed, attracted and other sources.

Working capital formed from own sources in most industries is the basis of the economic activity of enterprises. Own funds play a major role in organizing the circulation of funds, since enterprises operating on the basis of commercial accounting must have a certain property and operational independence in order to conduct business profitably and be responsible for the decisions made.

The formation of working capital occurs at the time of the organization of the enterprise, when its authorized capital is created. The source of formation in this case is the investment funds of the founders of the enterprise.

To reduce the overall need of the enterprise for working capital, as well as to stimulate their effective use, it is advisable to attract borrowed funds. Borrowed funds are mainly short-term bank loans, with the help of which the temporary additional needs of the enterprise in working capital are satisfied.

Therefore, the second most important source of the formation of working capital is a bank loan.

The main purposes of attracting loans for the formation of working capital are: lending to seasonal stocks of raw materials, materials and costs associated with the seasonal production process; temporary replenishment of the lack of own circulating assets; settlements and mediation of payment turnover.

The attracted sources are securities, resources of higher organizations, appropriations from the budget.

It is also necessary to highlight other sources of the formation of working capital, which include the enterprise's funds that are temporarily not used for their intended purpose (funds, reserves, etc.).

The correct ratio between own, borrowed and attracted sources of the formation of working capital plays an important role in strengthening the financial condition of the enterprise.

In addition, in the turnover of enterprises there are constantly funds that are equated to their own, the so-called stable liabilities.

Sustainable liabilities are funds that do not belong to the enterprise, but are constantly in its turnover. Such funds serve as a source of formation of working capital in the amount of their minimum balance.

These funds do not belong to the enterprise and organizations, but since the availability of such funds (liabilities) is sustainable, they are equated to their own. Such funds serve as a source of formation of working capital in the amount of their minimum balance. These include: minimum, rolling over from month to month, wage arrears to employees of the enterprise, reserves to cover future expenses, minimum, rolling debts to the budget and off-budget funds, creditors' funds received as an advance payment for products (goods, works, services ), funds of buyers on pledges for returnable packaging, carry-over balances of the consumption fund, debts for certain types of taxes, etc.

4. Indicators of the effectiveness of the use of working capital.

Trade organizations should use working capital efficiently and effectively. This presupposes, firstly, the safety of its own circulating assets, the inadmissibility of reducing their amount at the disposal of the enterprise. A prerequisite for the safety of its own circulating assets is the profitable operation of the enterprise. Secondly, working capital (own and borrowed) should be used for specific purposes and in the amount stipulated by the financial plan. Thirdly, working capital should be used effectively, i.e. plans must be carried out with a minimum amount of working capital.

The effective use of working capital is understood as their functioning, in which a stable state of finances is ensured, financial and budgetary discipline is strictly observed, and the highest results are achieved at the lowest cost.

The level of efficiency of using the total amount of working capital and their individual types is characterized by a system of value and natural, quantitative and qualitative indicators.

When assessing the overall efficiency of the use of working capital, the profitability (profitability), capital productivity ratios, capital intensity are calculated.

The profitability of funds most fully characterizes the efficiency of the financial activities of trade enterprises, comparing costs with the results. On the one hand, it includes income - the most important element of the surplus product created in a socialist society, on the other hand - the circulating capital available at the enterprise. The profitability of operating assets is determined by the ratio of the amount of income to the average annual balances of working capital. The profitability of current assets is usually studied over a long period (5-10 years); analyze the absolute size and rate of its change, and most importantly, identify the forecast reserves of growth.

The return on assets ratio characterizes the turnover per 1 rub. working capital, and is calculated as the ratio of turnover to the average stock of working capital. The ratio of capital intensity (loading) of funds in circulation is the inverse indicator of capital productivity and is determined by dividing the average stocks of working capital by turnover. This coefficient shows what size of working capital is involved in one ruble of turnover. The lower the rate of working capital utilization, the more efficiently they are used.

These indicators are rarely used in practice; usually, the efficiency of the functioning of all financial resources is determined by the turnover and income.

The most important indicator of the efficiency of the use of working capital is the time of commodity circulation. This is due to the fact that the size of the circulating assets required by trade enterprises is directly proportional to the volume of trade and inversely proportional to the turnover rate.

The circulation time of funds is measured by the duration of one turnover and the turnover ratio. The duration of one turnover (T0) is calculated by the ratio of the product of the average amount of working capital at the disposal of the enterprise for a certain period (Z0) and the number of days in the period (t) to the amount of sales for a given period (Q), i.e.

T0 = ​​Z0 * t * Q.

The average size of working capital is determined based on the amount of working capital for certain dates and is calculated either by the arithmetic average formula

The turnover of funds invested in certain types of stocks or costs is understood as the transition to the next stage of the circuit. So, for monetary funds, the turnover is not their receipt, but an advance payment for the purchased goods and other needs; for stocks, the turnover is issue or shipment; for shipped goods, the turnover is characterized by the receipt of proceeds. In general, for the entire mass of circulating assets, including standardized ones, turnover is the completion of the circuit upon receipt of proceeds.

Average annual balances of current assets can be determined by the formulas of the average chronological or arithmetic mean (according to the data of current accounting and reporting). When calculating the indicators of the turnover of working capital, the comparability of the data must be ensured. So, if the average inventory is included in the calculation at the purchase cost, then the turnover is taken in the same estimate. A similar principle should be followed when determining the turnover of goods shipped. When calculating the turnover of other types of current assets in retail trade, it is customary to take the turnover in retail prices (in public catering, according to the sales value). The turnover in days (circulation time) for all types of circulating assets is determined by summing it up for certain types of circulating assets. Turnover can also be studied in the number of revolutions (velocity of circulation) by dividing the volume of turnover for the period under study by the average balances of current assets.

The turnover of working capital is usually studied in dynamics. For certain types of current assets and for the enterprise as a whole, it is established how much their turnover has accelerated or slowed down and how much money has been released or additionally invested as a result. To determine the amount of funds released or additionally invested as a result of changes in the circulation time of current assets, it is necessary to multiply the actual average daily turnover of the reporting period by the acceleration or deceleration of the turnover of circulating assets in days. At the same time, for commodity stocks, the average daily turnover is usually taken at purchase value, for other types of circulating assets - at retail prices (at public catering establishments - at sales value).

The turnover indicator (in this case, the duration of one turnover on average for the period) is calculated as the ratio of the average balance of working capital (for example, inventory) to the average daily sales in a certain period and is measured in days of turnover. To characterize the rate of turnover of funds, in some cases, the indicator of the turnover ratio is used, which determines the number of revolutions during the corresponding period. Acceleration of turnover is of great importance because it creates the opportunity to ensure the continuity of production and sales with a smaller amount of working capital.

The actual turnover can be determined both for all circulating assets, and separately for standardized and non-standardized assets, as well as for individual elements; the planned turnover - only in terms of standardized funds.

It is necessary to distinguish between the turnover of funds in days and the stock of funds in days of turnover. The velocity of circulation of funds in days expresses the duration of one turnover. The stock of funds in days of turnover shows how many days there are working capital. It is calculated by the ratio of the amount of working capital on a specific date to the average daily turnover of the period under study.

The turnover ratio (eoc) indicates the number of turnovers made during a specific period. It is calculated by the formula eoc = t: To, where t is the number of days in the period;

To is the duration of one revolution.

The turnover ratio complements the turnover rate in days. The shorter the period of turnover in days, the more circuits go through circulating assets and the less the need for them.

To characterize the rate of turnover of circulating assets, an indicator is used that expresses the value of the average duration of the turnover in days, and is calculated by dividing the amount of investments in circulating assets (normalized or all) by the value of the average daily turnover. In the calculation of turnover, data on the amount of working capital for the asset of the balance sheet are used.

When calculating the turnover rate of all current assets, cash balances on the current account are excluded from their amount. This is primarily due to the fact that the acceleration of turnover may be accompanied by the release of funds stored in the current account. If you calculate the turnover with the inclusion of the balance on the current account in the amount of working capital, then the actual acceleration of turnover may not be identified. In addition, as noted, a considerable part of the balance on the current account is made up of amounts not related to current assets.

For other inventory items (materials, raw materials, fuel, fuel, containers, low-value and wearing out items), the turnover calculated in relation to the volume of goods turnover does not quite accurately characterize the time of their circulation. In this regard, for other inventory items, it is also necessary to determine the turnover based on their average daily consumption. This indicator is usually called the private turnover of current assets. Private indicators of the turnover of circulating assets are calculated by dividing the average balances of certain types of other inventory items by their average daily consumption. For accounts receivable, the private turnover rate is determined by the ratio of its average balances to the average daily repayment amount. Partial indicators of the turnover of current assets show how many days on average the balances of other inventories are spent (updated), and for accounts receivable, for what period it is repaid.

For a generalized assessment of the efficiency of using circulating assets, an integral indicator is calculated, determined by extracting the square root of the product of the growth rate or decrease in the turnover of circulating assets (in the number of revolutions) and their profitability. The integral indicator of the efficiency of using current assets is studied by the rate of its change over a number of years. The growth in the rate of the integral indicator of the efficiency of working capital indicates an improvement in their use.

ECONOMIC ESSENCE OF CURRENT CAPITAL

T.N. Batova

Working capital is the most important resource in ensuring the current activities of enterprises. The question of the economic essence of working capital has been discussed for many years in the economic literature. However, even now there are definitions of circulating assets that do not fully reflect their content and functions in the production mechanism.

Reproduction in a society where the law of value and commodity-money relations operate is the unity of the movement of value and use value. From the stage of production to the sale of a commodity, both processes coincide: use value and value move together, the creation of use value is at the same time the creation of value.

Realization is the limit of a single movement. From this moment on, there is a kind of bifurcation of the movement of the commodity: the movement of the product in its material-material form and the movement of the product in the form of value. Both processes become relatively independent. As a material value, any product comes from production either to the sphere of consumption (in production or non-production), or to an increase in inventories. Once consumed, this product ends up as a use value. As a value, the product goes through a more complex movement. The realized value splits into parts, one of which replaces the advanced means of production - fixed assets (to the extent that they transferred their value to finished products) and circulating assets, and the other forms income. At the last stage, the movement of value in the process of reproduction acquires relative independence, which consists in the fact that after the sale of the product, it takes the form of money and is opposed to material values.

Acceleration or deceleration of the movement of value, most of which are current assets, directly affects the results of economic activity.

In practice, and often in theory, two concepts are identified: working capital and working capital. In our opinion, these are two independent economic categories. Each manufacturing enterprise for the normal course of production uses production assets - fixed and circulating, as well as circulation funds. In contrast to them, working capital is a consequence of the self-supporting organization of economic activity. They are a form of value movement in the context of self-supporting relations. With a non-accounting organization of activity, this specific form of value movement is not formed. In this case, current expenses are made from funds received in accordance with the estimate from the financing organization, and, accordingly, the proceeds come from the same organization. Economic responsibility is manifested here in the punctual fulfillment of estimates of expenses and receipts, there is no self-financing. Therefore, there are no objective grounds for the emergence of such a form of movement of value, which are circulating assets.

Further, working capital is spent on the production of goods, consumed in production, transferring their value to it, while working capital is not consumed in production (as well as in circulation), but only advanced. The difference between advance payments and cost costs was pointed out by K. Marx in “Capital”: “Capital value is generally advanced, and not spent, since this value, after going through various phases of its circulation, again returns to its starting point ... This characterizes it as advanced. price" . Working capital of the advance

They are paid in monetary form and, after the sale of products, they return to the initial point of advance payment in the same form in order to repeat the circuit again.

Raw materials, materials, fuel, etc. in the form of value, they represent revolving funds. Here value is embodied in a certain kind of material values, inseparable from them. On the contrary, circulating assets are value in monetary form, in the form of a universal equivalent of these values. The current assets of the enterprise form a monetary fund intended to create stocks of material assets. Revolving funds and represent these reserves. Different, therefore, the purpose and functions performed by circulating assets and circulating assets.

Unlike circulating assets, which are directly involved in the formation of the production costs of an enterprise, circulating assets do not take direct part in this process. If the value of circulating assets were directly and directly transferred to the manufactured product, then it would naturally decrease with each turnover and, therefore, after the completion of the next turnover, they would have to be replenished each time, which in reality does not happen.

Hence, circulating assets represent value, inextricably linked with its consumer form, with the material shell of the objects of labor. In contrast to them, working capital has only value in monetary form.

Any enterprise acts in the system of the national economy as a buyer of goods (services) and as a seller of its products. It creates the stocks necessary for normal operation by purchasing raw materials, materials, energy and reduces stocks processed into finished products by selling. The involvement and release of working capital in the process of circulation occurs through payments: in the first case - through the purchase of goods and payment for services, in the second - sales. The function of working capital is to pay for material assets and services provided to enterprises from the sum of money advanced for these purposes. In other words, the function of circulating assets is the payment and settlement service of the turnover of value in the enterprise. In payments and receipts of funds at every moment, the movement of the company's working capital is manifested. However, the movement of material values ​​is reflected in the movement of circulating assets not exactly, not mirrored, but precisely as the dynamics of payments and receipts of money, as a result of sales and purchases. Consequently, the movement of production assets at each moment of time reflects the turnover of material factors of reproduction, and the movement of working capital reflects the turnover of money and payments. Although the latter process is the result of the movement of material values, they may not coincide. Under normal operating conditions of enterprises, the necessary circulating assets correspond to circulating funds and circulation funds. If there are significant deviations from the normal requirements for the material and technical supply of production, sales of products, bank settlements, this compliance is violated. With a slowdown in the movement of funds, for example, when there are more material resources than required, or the finished product is not shipped on time, there are more working and circulation funds than necessary, and there is not enough working capital. Conversely, there may be more circulating assets than circulating assets if the production plan is overfulfilled in excess of the standard stocks.

Thus, circulating assets are a special form of the movement of value, its circulation. They are advanced in the form of money to create stocks of raw materials, materials, semi-finished products, finished goods, tools, inventory and other quickly wearing material values. Their function is to provide payment and settlement services for the circulation of values. By means of payments, it is the circulating assets that regulate the volume and rate of this circulation. This is precisely what economics is about

ical essence of working capital. In fact, they represent a kind of financial lever for managing the current production and economic activities of the enterprise.

Literature

1. Marx K. and Engels F. Soch., Ed. 2nd, vol. 23.

2. Zaitsev N.L. Economics of an industrial enterprise: Textbook. M .: INFRA-M, 1996.

3. Enterprise Economics / Ed. By E.L. Cantor. SPb: Peter, 2003.

4. Economics of the radio engineering industry: Textbook for universities / Ed. VC. Bekleshova. M .: Higher. shk., 1987.

5. Economics: Encyclopedic Dictionary / V.G. Zolotogorov. 2nd ed., Stereotype. Minsk: Book House, 2004.

The concept and the economic essence of working capital. Working capital is an obligatory and very important element of agricultural production, along with the main production assets. They ensure the implementation of a continuous process of production and sale of products.

Circulating assets are objects of labor and material values ​​used in the production process. In every agricultural enterprise, they are designed to ensure the continuity of production. The required number is established on the basis of technological standards.

In agriculture, due to the discrepancy between the production period and the working period and the seasonal nature of production, the formation in certain periods of significantly large stocks of circulating assets (feed, seeds, fertilizers, fuels and lubricants, etc.) is required. Specialization and intensification of agricultural production have a significant impact on the size of working capital. With in-depth specialization in the production of livestock products, more feed is required, and in the production of grain crops - seeds, mineral fertilizers, fuels and lubricants, etc.

The economic essence of working capital lies in the fact that they completely transfer their value to newly created agricultural products. The cost of working capital is included in the total cost of production. Working capital participates in the production process during one production cycle and, therefore, requires constant replacement at the same level with simple reproduction or increased in size with expanded reproduction. Circulating assets in the production process change their material form, which distinguishes them from fixed assets. Thus, the seed during the production process is transformed under the influence of natural, biological and soil factors into plants, and the mineral fertilizers applied to the soil are converted into various nutrients that create conditions for the formation of plants.

In the production process, a certain part of agricultural products is not sold, but in natural form in the form of seeds, feed, milk for feeding calves, etc. is again supplied for on-farm turnover.

Composition and assessment of working capital. Working capital is a set of circulating production assets and circulation funds in value form. Circulation funds consist of ready-to-sell marketable products, funds in settlements with buyers, as well as funds required to purchase raw materials, materials, fuel, etc.



The circulating assets of agricultural enterprises include: raw materials and materials, fertilizers and plant and animal protection products, solid and liquid fuels, fuels and lubricants, containers and container materials, seeds and planting materials, construction materials for repairs and other needs of the main activity, spare parts for the repair of machinery and agricultural machinery, feed, young animals and animals for 7-1526 fattening, low-value and quick-wear inventory costing up to 50 times the minimum wage.

Work in progress is included in the working capital at the cost of costs in agriculture, produced in a given year for the harvest of winter and spring crops of the next year, as well as costs in animal husbandry for incubating eggs, etc., which are transferred to the next year. The work in progress of industrial and auxiliary divisions includes the costs of purchasing raw materials and materials for processing agricultural products, etc.

The working capital of agriculture is in a state of continuous movement, carrying out a circuit for a certain time, successively passing through three main stages. At the first stage, the enterprise acquires the objects of labor necessary for production activities (raw materials, materials, fertilizers, pesticides, etc.). Inventories acquired by the farm enter the production sphere.

In the second stage, production stocks are consumed in production, and at the end of which they are turned into products. The transition of inventories in the form of production costs means the entry of working capital directly into the production process.



At the third stage, the products produced by the economy are sold and the circulating assets take the form of money. This stage takes place in the sphere of circulation, in which circulating assets change their commodity form to monetary. The monetary form that circulating assets take at the third stage of their circulation is at the same time the initial stage of the circulation of funds. Current assets in motion are simultaneously at all stages and in all forms.

Thus, the circulation of circulating assets occurs according to the scheme: D-S "... P ... T-D",

where D - funds advanced by commodity producers for the purchase of material resources;

Cn - means of production;

P - production;

T - finished product;

D "- funds received from the sale of products.

Consequently, the movement of working capital includes three stages - supply, production and sale. In this case, the first and third stages of the circulation relate to the sphere of circulation, and the second to the sphere of production. The duration of the stay of circulating assets in the sphere of production is determined by the time of production, and the duration of their stay in the sphere of circulation is the time of circulation. The time of production and the time of circulation add up to the time of the circuit.

Working capital of agriculture can be conditionally subdivided into two parts. The first of them includes items and materials that have not yet entered the production process and are in production stocks (stocks of seeds and planting materials, feed, fertilizers, pesticides, fuels and lubricants, spare parts, etc.). The second group is represented by objects and materials already in the production process in the form of produced, but not yet finished products (young animals, fattening animals, work in progress).

According to the sources of education, circulating assets are divided into own and borrowed assets. Own working capital is created in the process of distribution of finished products. Part of the produced grain, potato tubers, seeds of other agricultural crops, as well as livestock products remains directly at the enterprise to form the retired working capital. Own circulating assets are estimated at the cost of their production at the given enterprise.

Borrowed or purchased circulating assets are valued at the prices of their acquisition and delivery to the place of consumption. To purchase working capital (mineral fertilizers, pesticides, fuels and lubricants, spare parts, building materials, etc.), agricultural enterprises use borrowed resources.

An important indicator for the enterprise is the availability of its own circulating assets (OS). It is calculated using the formula:

Os = Ss / Ss + Zs

where Сс - the sum of the company's own circulating assets;

Зс - the amount of borrowed working capital.

The minimum amount of own working capital on the recommendation of the Ministry of Finance of the Russian Federation should be 10% of the total need for working capital.

Features of the use of working capital. In the production of agricultural products, working capital has an unequal effect on the final results of economic activity. According to the degree of influence on the production process and the economic efficiency of crop and livestock industries, they are subdivided into working capital:

Directly contributing to the increase in the volume of gross agricultural production;

Indirectly affecting the production process and the efficiency of industries.

The first group includes such circulating assets as seeds, planting material, feed, fertilizers, chemicals, animals for growing and fattening. The second group includes objects of labor that ensure the functioning of fixed assets and maintaining them in working order. These are mainly fuels and lubricants, spare parts for the repair of machinery and equipment.

The composition and structure of working capital changes depending on the specialization of the enterprise. So, in farms specializing in the production of grain crops, fuel, seeds, spare parts predominate in the structure of working capital, while in livestock enterprises in the composition of working capital, feed, animals for growing and fattening occupy the largest share. At the same time, due to the seasonal nature of production, the ratio of working capital in a particular enterprise changes during the year and in certain periods. The largest amount of fuel and lubricants is created in the enterprise during the most intense periods of agricultural work: soil preparation, sowing and planting of agricultural crops, harvesting. In subsequent periods, stocks of working capital are reduced to a minimum, and then increase again. In agriculture, there is a cyclical use of working capital throughout the year. These features of objects of labor must be taken into account when forming working capital and creating stocks of resources for the successful implementation of the planned volumes of agricultural work. The size of inventories and work in progress depends on the nature of the production cycle (sowing, care, harvesting), the volume of work performed, and the amount of products produced.

Indicators of the effectiveness of the use of working capital. The economic efficiency of the use and consumption of working capital in agricultural production is characterized by a system of indicators. An important role among them is assigned to such as:

The ratio of the turnover of working capital;

Turnover duration;

Working capital consumption per unit of turnover value;

The cost of products sold per ruble of the balance of working capital;

The profitability of the total means of production, etc.

The turnover ratio of working capital is found by the formula:

K = Sr + M-F / Os

where Ср is the cost of agricultural products sold, rubles;

M is the cost of young animals transferred to the main herd, rubles;

F - proceeds from the sold cattle of the main herd, rubles;

OS - the average balance of working capital for the year, rubles.

The turnover of circulating assets characterizes the intensity of their use. The turnover in days allows us to judge how long the circulating assets go through all stages of the circulation at a particular agricultural enterprise. The higher the turnover in days, the less money the company needs, the more economically the financial results are used.

Using the turnover ratio of working capital, calculate the average duration of one turnover of labor assets during the year. It is found by dividing the number of calendar days in a year by the turnover ratio. To do this, use the formula:

where B0 is the duration of one turnover of working capital per year, days.

An important indicator of efficiency is material efficiency, which is defined as the ratio of the output of gross output to the gross income of agriculture per unit of the cost of working capital.

Ohm = VP / Co or VD / Co

The inverse indicator of material efficiency is the material consumption of products. It shows how much material working capital in value terms was used in the process of producing the value of a unit of output. A decrease in the consumption of working capital per unit of agricultural products created indicates resource savings and an increase in production efficiency as a whole.

Along with these indicators, to characterize the efficiency of the use of working capital, the amount of working capital per 1 ruble is calculated. turnover, as well as the cost of products sold per ruble of the average annual balance of working capital.

A generalizing indicator of the effectiveness of the aggregate means of production (fixed and circulating) is their profitability or the rate of profit.

The effectiveness of the use of working capital affects the financial results of agricultural enterprises. When analyzing financial activities, indicators are used that characterize the state and efficiency of using the resources of the enterprise:

Availability of own circulating assets;

The ratio between own and borrowed resources;

The solvency of the enterprise;

The liquidity of the enterprise;

Turnover of working capital.

The presence of its own working capital, as well as the ratio between its own and borrowed working capital, shows the financial stability of the enterprise.

The solvency of an enterprise is characterized by its ability to timely and fully fulfill its obligations. The solvency of an enterprise expresses its liquidity, the ability to make the necessary expenses at any time. Liquidity depends both on the amount of debt and on the volume of liquid funds, which include cash resources, securities and easily realizable components of working capital.

One of the most important factors in increasing the rate of development of agriculture, reducing the cost of production and increasing production efficiency is to improve the use of working capital. The rational use of circulating assets and the reduction on this basis of the material consumption of production leads to a reduction in the cost of production and, ultimately, to an increase in the profitability of the enterprise. The primary role in increasing the efficiency of using working capital is assigned to increasing crop yields and animal productivity, improving product quality, economical use of mineral fertilizers, fuels and lubricants, feed, seeds, and accelerating the turnover of objects of labor throughout the year. Important directions for increasing the efficiency of using working capital are also improving the quality and reducing the cost of material resources of agricultural production, improving production technology, deepening specialization and developing concentration of production, introducing the achievements of scientific and technological progress in agriculture, improving the organization and material incentives for labor.

An indispensable condition for the rational use of working capital is the improvement of the rationing of objects of labor.

An equally important problem of the effective use of working capital is the creation of normal conditions for storing seeds, feed, fuels and lubricants, mineral fertilizers and chemical means of protection, building materials and spare parts. Reducing the loss of these types of working capital during storage and use helps to reduce the consumption of working capital per unit of production and reduce the cost of basic production.

Acceleration of the turnover of funds allows you to free up part of the monetary resources for additional investments, the organization of new production facilities, and the expansion of production. This can be achieved by reducing the time spent on circulating assets in production. To do this, it is necessary to use varieties and hybrids of agricultural crops with a short growing season, growing and fattening early-maturing cattle and poultry breeds with a high fee for fodder, the introduction of progressive methods of cultivation and harvesting of products.

One of the ways to better use production assets is the optimal ratio of fixed and circulating assets. The lack of working capital, as practice shows, affects the use of fixed assets and, ultimately, the results of the entire activity of the enterprise. Thus, the lack of fuel and lubricants leads to the underutilization of tractors, combines, trucks, and this, in turn, leads to untimely performance of agricultural work and a shortage of a significant part of the products. and lead to inefficient use of productive livestock and production facilities.

To carry out its activities, an enterprise must have not only fixed assets, but also circulating assets. Insufficient provision of the enterprise with circulating assets paralyzes its activities and leads to a deterioration in the financial situation.

Working capital - assets of an enterprise (firm), which, as a result of its economic activity, completely transfer their value to the finished product, take a one-time part in the production process, changing or losing their natural material form.

A characteristic feature of working capital is a high turnover rate. The circulating assets of the enterprise are all the time in the process of circulation (in other words, in the circuit).

Circulation of working capital of the enterprise

In each circuit, circulating assets go through three stages: monetary, production and commodity.

At the first stage, the enterprise uses funds to purchase resources for production consumption (raw materials, materials, fuel, etc.). At this stage, cash flows into production inventories. They enter production consumption, are consumed in the production process, and a finished product is formed. In the second stage, production stocks are converted into finished goods. The third stage: the sale of finished products takes place.

Thus, we can say that the period of time during which the turnover of funds is made is the duration of the production and commercial cycle. It consists of the period between the payment of resources and the receipt of funds from the sale of finished products.

In the process of the circulation of circulating assets, one part of them is always in the sphere of production, and the other - in the sphere of circulation. Working capital is constantly flowing from one sphere to another. This is related to the division of working capital into two parts: working capital and circulation funds.

Working capital is that part of working capital that is constantly in the production sphere.

Circulation funds - that part of circulating assets that is constantly in the circulation.


Classification of working capital

Production stocks are items of labor that are awaiting production consumption (raw materials, materials, purchased semi-finished products, fuel, fuel, components, containers and container materials, spare parts for the current repair of fixed assets, etc.). Have a fairly low liquidity (but the lowest liquidity is in work in progress).

Work in progress is a work in progress that is being processed at workplaces. They have already entered the production process and are at various stages of it. The least liquid part of the company's working capital.

Semi-finished products of our own production - parts, assemblies, products that have not gone through all stages of the production process, as well as objects of labor, finished production in some shops and to be processed in other shops of the enterprise or sales (car engine, wheels). Refers to work in progress, but can be outsourced.

Deferred expenses - non-tangible elements of working capital, including costs incurred in this reporting period, but related, due to the economic content or established accounting or planning practice, to future periods (for example, rent payments, costs of preparing and mastering new types of products , the cost of preparatory work for the season in seasonal industries, the cost of developing new enterprises / units / workshops / etc.).

Cash and securities are the most liquid part of working capital. Money has absolute liquidity, while securities are slightly less liquid. Funds include funds in the settlement, current, foreign currency and other accounts of the company, as well as in the cash desk. Securities include securities of other companies, government bonds, etc.

Accounts receivable - it includes various types of debt to an enterprise (firm) of legal entities and individuals. It can be of the following types: settlements with debtors for goods and services; settlements with subsidiaries; advances given to suppliers and contractors, etc. More liquid than work in progress, but does not have absolute liquidity.

Finished products - material assets that have passed the entire technological cycle, fully equipped, passed the necessary tests and technical checks. As a rule, finished products are delivered to the finished product warehouse in the appropriate natural-material form.

According to the scope of rationing, current assets are divided into standardized working capital (working capital in stocks of inventories) and non-standardized working capital (accounts receivable, funds in settlements, cash in the cash desk of the enterprise and in bank accounts).

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

The presence of own and borrowed funds in the turnover of the enterprise is explained by the peculiarities of the organization of the production process. The constant minimum amount of funds to finance the needs of production is provided by its own circulating assets. The temporary need for funds, which has arisen under the influence of reasons dependent and not dependent on the enterprise, is covered by a loan and other sources.

The structure of circulating assets is understood as the ratio of their individual elements in their entire totality.

Knowledge and analysis of the structure of working capital at the enterprise are very important, since it characterizes to a certain extent the financial condition at one time or another of the work of the enterprise. For example, an excessive increase in the share of accounts receivable, finished goods in stock, work in progress indicates a deterioration in the financial condition of the enterprise. Accounts receivable characterizes the diversion of funds from the turnover of a given enterprise and their use by debtors, debtors in their turnover. An increase in the share of work in progress, finished products in the warehouse indicates the diversion of working capital from circulation, a decrease in sales, and therefore profit. All this testifies to the fact that at the enterprise working capital must be managed in order to optimize their structure and increase their turnover.

The structure of working capital at the enterprise is unstable and changes over time under the influence of many reasons.

The structure of working capital at enterprises of various industries is far from the same and depends on:

  • * specifics of the enterprise. At enterprises with a long production cycle (for example, in shipbuilding), the share of work in progress is high; at mining enterprises there is a large proportion of deferred expenses. At those enterprises in which the production process is short-lived, as a rule, there is a large proportion of inventories;
  • * the quality of the finished product. If an enterprise produces low-quality products that are not in demand among buyers, then the share of finished products in warehouses increases sharply;
  • * the level of concentration, specialization, cooperation and combination of production;
  • * acceleration of scientific and technological progress. This factor affects the structure of circulating assets in many ways and practically on the ratio of all elements. If the enterprise introduces fuel-saving equipment and technology, waste-free production, then this immediately affects the decrease in the share of inventories in the structure of working capital.

Other factors also affect the structure of working capital. It should be borne in mind that some factors are long-term, while others are short-term.

    Working capital, their economic essence and classification. Indicators of the effectiveness of the use of working capital. Improving the use of working capital.

1.1. Working capital, their economic essence and classification.

Along with fixed assets, the availability of the optimal amount of working capital is of great importance for the operation of the enterprise.

Working capital is a set of funds advanced for the creation of working capital assets (auxiliary materials, inventory, spare parts, overalls, etc.) and circulation funds (inventory, investments in settlements, cash balances), ensuring their continuous circulation.

Working capital ensure the continuity of production and sales of the company's products. Revolving production assets enter production in their natural form and in the process of manufacturing products are entirely consumed, transferring their value to the product being created. Circulation funds are associated with servicing the process of goods circulation. They do not participate in the formation of value, but are its carriers. One of the conditions for the continuity of the enterprise is the constant renewal of its material basis.

After the end of the production cycle, the manufacture of finished products and their sale, the cost of working capital is reimbursed as part of the proceeds from the sale of products (works, services). This creates the possibility of a systematic renewal of the production process, which is carried out through the continuous circulation of the enterprise's funds.

In its movement, circulating assets go through three successive stages: monetary, productive and commodity.

The first stage of the circulation of funds is preparatory. It takes place in the sphere of circulation. This is where the transformation of funds into the form of inventories takes place.

The production stage is an immediate production process. At this stage, the cost of the created products continues to be advanced, but not completely, but in the amount of the value of the used production stocks, the costs of wages and related expenses, as well as the transferred value of fixed assets, are additionally advanced. The productive stage of the circulation ends with the release of finished products, after which the stage of its implementation begins.

At the third stage of the circulation, the product of labor (finished product) continues to be advanced in the same amount as at the second stage. Only after the commodity form of the value of the produced product turns into monetary, the advanced funds are restored at the expense of a part of the proceeds received from the sale of products. The rest of its amount is money savings, which are used in accordance with the plan for their distribution. A part of the savings (profit) intended for the expansion of working capital is added to them and completes the subsequent cycles of turnover with them.

The monetary form, which is taken by circulating assets at the third stage of their circulation, is at the same time the initial stage of the circulation of funds.

The circulation of circulating assets takes place according to the scheme:

D - T ... P ... T` - D`, where

D - funds advanced by an economic entity;

T - means of production;

P - production;

T` - finished product;

D` - cash received from the sale of products and including realized profit.

The dots (...) mean that the circulation of funds is interrupted, but the process of their circulation continues in the sphere of production.

Current assets in motion are at all stages and in all forms. This ensures a continuous production process and smooth operation of the enterprise.

The rhythm, coherence and high performance of the enterprise largely depend on its availability of working capital. Excessive diversion of funds into reserves in excess of the actual need leads to the death of resources, their ineffective use.

Distinguish between the composition and structure of working capital.

The composition of working capital is understood as a set of elements that form working capital. The division of circulating assets into circulating production assets and circulation funds is determined by the peculiarities of their use and distribution in the spheres of production and sales.

Revolving production assets include:

Productive reserves; Production stocks are items of labor prepared for launching into the production process. In their composition, one can, in turn, distinguish the following elements: raw materials, basic and auxiliary materials, fuel, fuel, purchased semi-finished products and components, containers and container materials, spare parts for maintenance, low-value and wearing items.

Work in progress and home-made semi-finished products; Work-in-progress and home-made semi-finished products are objects of labor that have entered the production process: materials, parts, assemblies and products that are in the process of processing or assembly, as well as home-made semi-finished products that are not fully completed in some workshops and subject to further processing in others. workshops of the same enterprise.

Future expenses. Deferred expenses are unfinished elements of working capital, including the costs of preparing and mastering new products, which are produced in a given period (quarter, year), but are attributed to the products of the future period.

Circulation funds include:

    finished products in warehouses;

    goods in transit (products shipped);

    cash;

    funds in the calculations.

The ratio of circulating production assets and circulation funds is on average 4: 1.

The amount of circulating assets employed in production is mainly determined by the duration of production cycles for the manufacture of products, the level of development of technology, the perfection of technology and the organization of labor.

The amount of means of circulation depends mainly on the conditions for the sale of products and the level of organization of the supply and marketing system of products.

The ratio between the individual elements of working capital, expressed as a percentage, is called the structure of working capital. The difference in the structures of the working capital of industries is determined by many factors, in particular, the peculiarities of the organization of the production process, the conditions of supply and sale, the location of suppliers and consumers, and the structure of production costs.

      Indicators of the effectiveness of the use of working capital.

In the system of measures aimed at improving the efficiency of the enterprise and strengthening its financial condition, an important place is occupied by the rational use of working capital. The problem of improving the use of working capital has become even more urgent in the conditions of the formation of market relations. The interests of enterprises require full responsibility for the results of their production and financial activities. Since the financial position of enterprises is directly dependent on the state of working capital and involves the comparison of costs with the results of economic activities and reimbursement of costs with their own funds, enterprises are interested in the rational organization of working capital - the organization of their movement with the minimum possible amount to obtain the greatest economic effect.

The efficiency of using working capital is characterized by a system of economic indicators, primarily the turnover of working capital.

The turnover of circulating assets is understood as the duration of one complete circulation of assets from the moment the circulating assets in monetary form are converted into inventories and until the release of finished products and their sale. The turnover of funds is completed by crediting the proceeds to the company's account.

The turnover of circulating assets is not the same at enterprises of both one and different sectors of the economy, which depends on the organizations of production and sales of products, the allocation of circulating assets and other factors.

The criterion for the efficiency of working capital management is the time factor. The longer the circulating assets remain in the same form (monetary or commodity), the lower, other things being equal, the lower the efficiency of their use, and vice versa. The turnover of circulating assets characterizes the intensity of their use.

The role of the turnover indicator is especially great for the branches of the circulation sphere, including trade, public catering, consumer services, intermediary activities, banking business, etc.

The efficiency of using working capital is characterized by three main indicators:

    Turnover ratio;

    Working capital load factor;

    The duration of one revolution.

The turnover ratio is determined by dividing the volume of product sales by the average balance of working capital at the enterprise:

Cob = Pp ÷ CO, where (1.1)

Kob - the ratio of the turnover of working capital, turnover;

Рп - the volume of products sold, rubles;

СО - the average balance of working capital, rubles. Average balance of working capital for a month - the amount of working capital at the beginning and end of the month, divided by two: for a quarter - the sum of three average monthly balances divided by three; for the year - the sum of four quarterly balances divided by four.

The turnover ratio characterizes the number of circuits made by the circulating assets of the enterprise for a certain period (year, quarter), or shows the volume of products sold per 1 ruble. working capital.

Comparison of the turnover ratios in dynamics over the years allows us to identify trends in the change in the efficiency of the use of working capital. If the number of revolutions made by circulating assets increases or remains stable, then the enterprise works rhythmically and rationally uses monetary resources. A decrease in the number of revolutions made in the period under review indicates a drop in the rate of development of the enterprise, an unfavorable financial condition.

The working capital utilization ratio is inverse to the turnover ratio. It characterizes the amount of working capital spent on 1 ruble. products sold:

Кз = СО ÷ Рп, where (1.2)

Кз - coefficient of working capital utilization.

The duration of one turnover in days is found by dividing the number of days in the period by the turnover ratio To:

T = D ÷ Kob, where (1.3)

D is the number of days in the period (360, 90).

The effect of accelerating the turnover of circulating assets is expressed in the release, reducing the need for them in connection with the improvement of their use. Distinguish between absolute and relative release of working capital.

The absolute release reflects a direct decrease in the need for working capital.

The relative release reflects both a change in the amount of working capital and a change in the volume of products sold. To determine it, you need to calculate the need for working capital for the reporting year based on the actual sales turnover for this period and the turnover in days for the previous period. The difference gives the amount of funds released.

The release of working capital has a number of positive effects:

Production of products takes place at lower costs of working capital;

Material resources are released;

Receipt of deductions from profit to the budget is accelerated;

The financial position of the company is improving, because The financial resources released as a result of the over-planned acceleration of the turnover of funds remain at the disposal of the enterprise until the end of the year and can be successfully used (profitably invested).

Unfortunately, the own financial resources, which enterprises currently have, cannot fully ensure the process of not only extended, but also simple reproduction.