Working capital utilization factor is determined by the formula. Indicators of the effectiveness of the use of working capital

Average balance working capital

ObS = (ObCng + ObSkg) / 2

Kz \u003d 1: Kob \u003d ObS: Vrp

It characterizes the amount of working capital spent on 1 ruble of sold products.

turnover– duration of one revolution (days)

Tob \u003d Dk / Kob \u003d Dk × ObS / Vrp

Dk - quantity calendar days in a period, in days

Cob - turnover ratio

The shorter the duration of the turnover or the greater the number of turnovers made with the same volume of products sold, the less working capital is required.

At the same time, a distinction is made between absolute release of working capital and relative release.

Absolute release means a direct reduction in the need for working capital by accelerating turnover.

The relative release of working capital reflects both the amount of working capital and the change in the volume of products sold. The calculation is made by comparing the practical balance of working capital with the conditional value of the need for working capital with actual revenue and the previously established turnover rate.

Relative release working capital

deltaObS = ObSfact - (Tob base × Vrp fact) / Dk

Vrp = 120 million rubles/year

ObS = 9 million rubles.

Delta Tob – Decreased by 3 days

Tob1 = 27 days

Tob2 = 24 days

1) V = const ObC2 = 8 million rubles

Delta ObSabs = 1 million rubles

2) ObS - const

Vrp = 135 million rubles/year

For the production of products in the amount of 135 million rubles / year, while maintaining the same turnover, it is necessary to increase the amount of turnover. funds

ObS = 10.125 million rubles

Delta VHundred = 1.25

The main ways to reduce working capital

The main ways to reduce inventories are reduced to their rational use; elimination of excess stocks of materials; improvement of regulation; improving the organization of supply, including by establishing clear contractual terms of supply and ensuring their implementation, optimal choice suppliers, streamlined transport. An important role belongs to improving the organization of warehouse management.

Reducing the time spent by working capital in work in progress is achieved by improving the organization of production, improving the equipment and technology used, improving the use of fixed assets, especially their active part, savings at all stages of the movement of working capital.

In the sphere of circulation, working capital does not participate in the creation of a new product, but only ensures its delivery to the consumer. Excessive diversion of funds into the sphere of circulation is a negative phenomenon. The most important prerequisites for reducing the investment of working capital in the sphere of circulation are the rational organization of the sale of finished products, the use of progressive forms of payment, the timely execution of documentation and the acceleration of its movement, the observance of contractual and payment discipline.

Accelerating the turnover of working capital allows you to free up significant amounts and thus increase the volume of production without additional financial resources and use the released funds in accordance with the needs of the enterprise.

• Financial result: transformation of the concept dictionary B.A. Raizberg L.Sh. Lozovsky E.B. Starodubtseva Financial results results economic activity company and its divisions expressed as financial indicators such as profit loss change
• The need to take into account other income and expenses in marginal analysis Dictionary Edited by A. N. Azriliyan M Institute new economy 2004. 2. Lukasevich and I ... Financial management textbook M Eksmo 2007. 3. Finance of enterprise organizations Edited by NV Kolchina
• Financial strategy and approaches to determining the potential of an enterprise, financial and production potential and strategy as a necessary element for its development LITERATURE 1. Dictionary of foreign words Ed by I. A. Vasyukov M 1972. 2.

Working capital utilization factor: calculation for the project

Current assets are the most important factor in the production process and occupy a fairly large share in the total value of the property of the enterprise. Therefore, it is necessary to rationally approach the value of mobile assets and plan their values.

Attention

For this, indicators of the efficiency of working capital exploitation are used (turnover ratio, load factor, profitability, etc.) Table of contents: 1. The essence of the indicator2. How to calculate the turnover ratio of working capital3.

Analysis and normative value of the turnover ratio current assets Essence of the indicator This indicator is considered basic when planning the required amount of mobile funds, as it reflects the number of turnovers of funds for the period.

Financial vocabulary

Important

Possible reasons for the decrease Turnover slowdown may occur due to an increase in the duration of one turnover, the causes of which are unjustified growth of inventories, the appearance of buyers' debts, a failure in manufacturing process and, as a result, unfinished products. Also to possible reasons include a decrease in demand, due to which finished products remain in stock longer, production volumes fall.

In general, the turnover ratio of working capital makes it possible to sufficiently qualitatively assess the efficiency of operating working capital. But for a more complete and objective assessment, it is advisable to calculate other indicators of efficiency and liquidity stability.

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Calculation of the company's working capital turnover ratio

Accelerating the turnover of working capital and releasing them as a result of this in any form will allow the enterprise to allocate funds for development without attracting additional financial resources. Improvement in the use of working capital can be achieved through:

• economical and rational use of material resources;
• optimization of the size of inventories and backlogs of work in progress;
• accelerate the turnover of working capital.

Determining the need for working capital.

To determine the needs of the enterprise in working capital, the rationing of working capital is carried out. Rationing of working capital is the process of determining the minimum, but sufficient (for the normal course of the production process) amount of working capital at the enterprise.

Analysis of the turnover of funds - ratio and indicators

The turnover of working capital (duration of one turnover, days) (Add) shows how long it takes for the company to return its working capital in the form of proceeds from the sale of products, calculated by the formula: Add \u003d Dk / Kob, or Add \u003d SOobs × Dk / Vr , where Dk is the number of calendar days in the period under review, days. Working capital utilization factor (Kzag) in turnover shows the amount of working capital attributable to 1 ruble of sold products, is found by the formula: Kzag \u003d COob.s / Vr. The coefficient of efficiency (profitability) of working capital (Kef) shows how much profit from the sale of products falls on 1 ruble of working capital, is calculated by the formula: Kef \u003d Preal / COob.s, where Preal is the profit from sales in the period under review, rub.

Turnover ratios (indicators of business activity)

Of particular importance in the activities of each subject is the analysis of changes in the movement of working capital and means of circulation, which is carried out in relation to the pace of production. What is required to work with working capital? Duration of turnover Work with the assets of the enterprise should bring benefits to its owner.

Info

In this case, analysis is indispensable. The following indicators serve as a characteristic of the expediency of using working capital:

• Load factor
• Indicator of intensity of use (turnover)
• Turnover duration

These factors make it possible to assess the quality of working capital management. Definition of indicators This ratio is the ratio of proceeds from the sale of goods to the value of working capital, which are listed on the balance sheet of the organization.

How to calculate the turnover of working capital in days according to the balance

Rationing of working capital depends on the following factors:

• duration production cycle production of products;
• consistency and clarity in the work of procurement, processing and manufacturing shops;
• supply conditions;
• remoteness of suppliers from consumers;
• speed of transportation, type and uninterrupted operation of transport;
• the time of preparation of materials for the launch of their production;
• conditions for the sale of products;
• systems and forms of settlements, speed of document flow, possibilities and forecasting of factoring4

The following elements of working capital are normalized:

• productive reserves;
• unfinished production;
• Future expenses;
• finished products in the warehouse of the enterprise.

Working capital turnover ratio

The data will allow you to find the indicator only for the year, it is impossible to calculate other periods according to the balance sheet information. Methodology (formula) for calculating the turnover ratio of current assets on the balance sheet: Tr = p.
2110 OFR / (line 1200np BB + line 1200kp BB) / 2, where Tr (turnoverratio) - the turnover ratio of working capital, about / year; line 2110 OFR - revenue according to the statement of financial results, rub.; line 1200np BB - the amount of working capital at the beginning of the year, rub.; line 1200kp BB - the amount of working capital at the end of the year, rub. An example of a balance sheet calculation It is necessary to calculate the turnover ratio for 2014 using the example of Ekran LLC.

Line code As of December 31, 2013 As of December 31, 2014 II. CURRENT ASSETS Total for section II 1200 400 000 500 000 Revenue 2110 1500 000 1 800 000 Tr = 1800 000 / (400 000 + 500 000)/2 = 4 rev/year.

Current assets of the enterprise

In other words, the turnover ratio of working capital characterizes the efficiency of working capital exploitation in order to generate income from the main activity. Like any coefficient, the indicator is relative and reflects how many turns it takes with mobile devices to ensure a given rate of revenue.

How to calculate the turnover ratio of working capital In order to find this indicator, it is necessary to identify two quantities - income and working capital. Income in the planned calculation is reflected through the revenue indicator, and working capital - through the average balance of mobile funds.

The turnover ratio is found through the ratio of income and working capital. It is worth noting that the indicators should be comparable, that is, both the revenue and the cost of mobile funds should be taken for one period, for example, for a year.

Efficiency of the use of working capital: indicators, ways to improve. To analyze the use of working capital, estimates financial condition industrial enterprise and the development of organizational and technical measures to accelerate their turnover, a system of indicators is used that characterize the real process of the movement of working capital and the amount of their release. Efficient use of working capital helps to increase financial stability enterprise and its solvency. Under these conditions, the enterprise timely and fully fulfills its settlement and payment obligations, which allows it to successfully carry out business activities.

Load factor of funds in circulation balance formula

A decrease in the load factor indicates an accelerated turnover rate, as a result of which there is a reduction in the turnover period during which it can produce and sell more, thereby increasing profitability and reaching more high level production. Therefore, an increase in the turnover rate and a decrease in the load factor indicates a stable and productive work and creates all the prerequisites for further improvement of the situation.

Maintaining the correct ratio of the income received from sales and the state of working capital will ensure solvency, as well as reach the organization to a new level. Noticed an error? Select it and press Ctrl+Enter to let us know.

This is the reciprocal of the turnover ratio.

To fastening \u003d OS / Q or To fastening \u003d 1 / K about

This indicator is similar to the capital intensity indicator calculated for working capital.

It reflects how much working capital falls on the ruble of sold products.

3. Duration of one turnover (D o) working capital

D o \u003d T / K about,

where T is the number of days in the period (year - 360 days, quarter - 90 days).

K about - turnover ratio

The acceleration of turnover characterizes the increase in the efficiency of the use of working capital for the period

Substituting in this formula the value of the indicator K about, we obtain a formula for calculating the duration of the circulation of working capital:

D o \u003d T * OS / Q

In the process of managing working capital, the duration of the turnover of individual elements of current assets is considered.

Duration of inventory turnover :

This indicator reflects the period of time required for the transformation of inventories into finished products and its implementation.

D mz \u003d (T * MZ sr) / C st

МЗ av - the average value of stocks of inventory items

C st - the cost of goods, services

Turnover duration accounts receivable:

D dz \u003d DZ / V,

DZ - accounts receivable

Duration of accounts payable turnover:

Reflects the average time to receive a payment.

D kz \u003d short circuit / V,

where B is the one-day sales revenue.

KZ - accounts payable

Turnover duration Money:

Reflects the time from the moment the enterprise pays for production resources until the moment it receives proceeds from the sale of products, i.e. this is the period between payments for raw materials and labor and repayment of receivables.

D ds \u003d D mz + D dz - D kz.

If the duration of the cash flow is 60 days, this means that the company from the start of production within 60 days must find additional sources financing.

Each company sets itself the task of reducing the duration of the turnover of funds in order to increase profits and reduce the need for financial resources.

The duration of the cash flow can be reduced by:

1. reducing the duration of the turnover of inventory;

2. reduction in the duration of the turnover of receivables;

3. increase in the period of circulation of accounts payable.

One of the most important elements of the company's working capital is accounts receivable. The total amount of receivables is determined by 2 factors:

1) the volume of sales on credit;

2) the average time interval between the shipment of goods and receipt of revenue.

To control the state of receivables and prevent bad debts, the company classifies debt by age, and also studies the indicator of receivables turnover in days.

As a result of the acceleration of turnover (intensity of use of fixed assets), a certain amount of fixed assets is released

Under turnover acceleration is understood as a reduction in the duration of one revolution

The effect of accelerating the turnover of working capital is reflected in the rate of their release. There are absolute and relative release of working capital.

Relative release- the difference between the need for working capital of the enterprise, calculated on the basis of the planned or actually achieved turnover in the reporting year and the amount with which the enterprise ensured the fulfillment or overfulfillment production program next year.

In conditions of expanded reproduction on industrial enterprises most often there is a relative release of working capital in the planning year compared to the reporting year with an increase in their absolute size.

The speed of turnover of working capital at enterprises of various industries is not the same. In enterprises with a long production cycle, funds are turned around more slowly than in enterprises with a short production cycle.

The amount of funds additionally involved in circulation or released from circulation is determined by the formula:

∆С s \u003d (D o otch. - D o bas.) * V,

C c - the amount of funds additionally involved in the turnover, if C c<0 или сумма высвобожденных из оборота средств, если С с >0

D about rep. - the duration of one turnover of working capital in the reporting period, days

D about bases - the duration of one turnover of working capital in the base period, days

B - average daily actual revenue from the sale of products in the reporting period.

or according to the formula

∆С s = (t d. rep. - t d. base.) * In otch. /T

In the report - revenue in the reporting period

T is the number of days in the period

The director of the company, who has before his eyes only indicators of profit and overall profitability, cannot always understand how to correct them in the right direction. In order to have all the levers of control in hand, it is absolutely necessary to also calculate the turnover of working capital.
The picture of the use of working capital consists of four main indicators:

• Duration of turnover (determined in days);
• How many times working capital makes a turnover in the reporting period;
• How much working capital is accounted for per unit of products sold;
• Load factor of funds in circulation.

Let's consider the calculation of these data using the example of a conventional enterprise, as well as the calculation of a number of important coefficients for understanding the significance of turnover indicators in the overall picture of the company's success.

Turnover ratio

The basic formula that determines the turnover rate of working capital is as follows:

Cob is the turnover ratio. It shows how many turnovers of working capital were made for a specific period of time. Other designations in this formula: Vp - sales volume for reporting period;
Oav, - the average balance of working capital for the reporting period.
Most often, the indicator is calculated for a year, but absolutely any period necessary for analysis can be selected. This ratio is the rate of turnover of working capital. For example, the annual turnover of a mini-store mobile phones amounted to 4,800,000 rubles. The average balance of funds in circulation was 357,600 rubles. We get the turnover ratio:
4800000 / 357 600 = 13.4 turns.

Turnover duration

It also matters how many days one revolution lasts. This is one of key indicators, which shows how many days the company will see the funds invested in turnover in the form of cash receipts and will be able to use them. Based on this, it is possible to plan both making payments and expanding turnover. Duration is calculated like this:

T is the number of days in the analyzed period.
Let's calculate this indicator for the above digital example. Since the enterprise is trading, it has a minimum number of days off - 5 days a year, for the calculation we use the figure of 360 working days.
Calculate how many days the company could see the money invested in turnover in the form of revenue:
357,600 x 360 / 4,800,000 = 27 days.
As you can see, the turnover of funds is short, the management of the enterprise can plan payments and use funds for expanding trade almost monthly.
To calculate the turnover of working capital, the profitability indicator is also important. To calculate it, you need to calculate the ratio of profit to the average annual balance of working capital.
The profit of the enterprise for the analyzed year amounted to 1,640,000 rubles, the average annual balance was 34,080,000 rubles. Accordingly, the profitability of working capital in this example is only 5%.

Load factor of funds in circulation

And one more indicator necessary for assessing the speed of turnover of working capital is the utilization factor of funds in circulation. The coefficient shows how much working capital is advanced for 1 rub. revenue. This is the working capital intensity, which shows how much working capital must be spent in order for the company to receive 1 ruble of revenue. It is calculated like this:

Where Kz - the load factor of funds in circulation, kop.;
100 - transfer of rubles to kopecks.
This is the opposite of the turnover ratio. The smaller it is, the better the use of working capital. In our case, this coefficient is equal to:
(357,600 / 4,800,000) x 100 = 7.45 kop.
This indicator is an important confirmation that working capital is used very rationally. The calculation of all these indicators is mandatory for an enterprise that seeks to influence the efficiency of work with the help of all possible economic levers.
Forecast NOW! can be calculated

• Turnover in monetary and physical units both for a specific product, and for a group of goods, and for a cut - for example, for suppliers
• The dynamics of changes in turnover in any necessary sections

An example of calculating the turnover rate for groups of goods:

Evaluation of the dynamics of changes in turnover by goods/groups of goods is also very important. At the same time, it is important to correlate the turnover schedule with the service level schedule (how much we satisfied the demand of consumers in the previous period).
For example, if the turnover and the level of service are declining, then this is an unhealthy situation - you need to study this group of goods more carefully.
If turnover is increasing, but the level of service is decreasing, then the increase in turnover is most likely provided by fewer purchases and an increase in shortages. The opposite situation is also possible - the turnover decreases, but with this calculation, the level of service - customer demand is provided by large purchases of goods.
In these two situations, it is necessary to evaluate the dynamics of profit and profitability - if these indicators grow, then the ongoing changes are beneficial for the company, if they fall, then measures must be taken.
Forecast NOW! it is easy to assess the dynamics of turnover, service level, profit and profitability - it is enough to conduct the necessary analysis.
Example:

Since August, there has been an increase in turnover with a decrease in the level of service - it is necessary to evaluate the dynamics of profitability and profit:

Profitability and profits have been falling since August, we can conclude that the dynamics of changes is negative

The effectiveness of the functioning of a business entity is assessed during the financial analysis. One of its indicators is the turnover ratio. The parameter allows you to understand how effectively the management of the company's assets is managed, which is possible according to the criteria for assessing the frequency and intensity of their use. What is the working capital utilization factor, what does it characterize, how is it calculated and applied in the analysis?

What is the working capital utilization factor

general information

The working capital utilization factor includes such indicators as the cost of products that were sold and the value of working capital, determined for the time period, which is the base in carrying out settlement operations.

It is the reciprocal of the turnover ratio. Since it identifies the amount of working capital that was spent on the production and sale of products in the equivalent of one ruble, it is used in conjunction with the turnover ratio to evaluate the parameter.

The main difference between the coefficient and the profitability parameter is the use of not net profit, but the total proceeds from the sale of the results of the work of business entities. Therefore, it can be judged that the parameter identifies the degree business activity, while profitability determines the level of profitability.

The higher the turnover rate, the better the company's solvency, and the more financially stable it is. It can be used to judge how much trade turnover should be produced in order to recoup all investments in the business.

Kinds

According to the turnover rate applied to working capital, the intensity of their use becomes clear. It is influenced by interrelated economic parameters:

• turnover ratio;
• utilization factor of funds in circulation;
• the duration of one cycle, displayed in days.

According to the turnover ratio, one can judge how many times the working capital of a business entity can turn around during the reporting period. It is defined as private total amount for which products were sold or services were rendered, to the value of the assets of a revolving enterprise. All figures are taken into account for the same period. It is believed that the larger the value of the parameter, the more efficient activity subject, which is explained by the optimal use of all means in the production process.

Read also: Economic profitability: formula

The duration of one turnover does not depend on the period for which the calculation is made. For example, one turnover per quarter corresponds to four turnovers per year. In this case, the duration of one cycle remains unchanged. You can calculate the value as a quotient of the total cycle time and the turnover ratio. The cycle can last for any reporting period. Reducing the duration of the turnover indicates an improvement in the use of enterprise resources.

The working capital utilization factor formula determines the inverse turnover parameter. According to it, one can judge the balances of working capital, which fall on each ruble of products sold. The lower the index value, the more efficient use company funds.

Calculation formula

The process of acceleration and deceleration of turnover is identified by comparing planned and actual values. It is acceptable to compare the current data with the values ​​of the previous period. When the process is accelerated, material resources and sources of their occurrence are released from the cycle. If it slows down, it is necessary to involve additional funds to reach the proper level.

Application to different objects

Turnover can be applied to assets, which dictates the rules for its evaluation in dynamics.

An increase in the parameter leads to an increase in revenue received through the use of assets. It is defined as the ratio of revenue for a certain period to the value of assets.

The indicator can be applied to current assets, which category includes funds that are quickly converted into cash. Standard value value is missing. Its evaluation is also made in dynamics.

If we apply the value to cash, then it will identify how actively management manages them, and also show the number of their turnovers for a given time period. To calculate it, it is necessary to determine the proceeds received from the sales of manufactured products and divide it by the amount of cash. The parameter is evaluated according to the trend of change.