Working capital utilization factor: characteristics, indicators and calculation formula. Tsii (works, services)

To characterize the turnover of working capital, the following indicators are used:

1. turnover ratio (K o), that is, the number of revolutions made by working capital during the period;
2. utilization rate of funds in circulation (Кз);
3. indicator of the duration of one revolution in days (T).

Turnover ratio calculated by the formula

where P is the volume of sales (by main types of activities) for the period at cost, rub.;

C – the average value of working capital for the period, which can be defined as the chronological average, rub.

Load factor of funds in circulation is defined as the inverse indicator:

Duration of one revolution (turnover period) in days is determined by the ratio of the number of days of the reporting period (D) to the turnover ratio:

Based on the above formulas for turnover of funds speed(K o) can be defined by two formulas:

Based on these two equations, we can obtain the equality

R/S = D/T

From this we derive a formula widely used in practice for determining the duration of turnover in days: .

Let's consider example. The cost of products sold for the year is 20 million rubles. The average value of working capital for the year is 2 million rubles. In this case, the turnover ratio

T = (S∙D) / Ko

and the turnover period

T = D / Co = 365 / 100 = 36.5 days.

It follows that with the duration of one turnover being 36.5 days, working capital was turned over 10 times during the year. For every ruble of working capital there were 10 rubles. sold products. Obviously, the higher the turnover ratio, the better the use of working capital.

Working capital turnover indicators can be calculated similarly for all components of working capital involved in turnover and their individual elements. As a result of comparison of working capital turnover indicators, its acceleration or deceleration at the stages of their use is revealed. When the turnover of working capital accelerates, material resources and sources of their formation are released from circulation; when it slows down, additional funds are drawn into circulation.

The release of working capital due to the acceleration of their turnover can be absolute and relative. An absolute release occurs if the actual balances of working capital are less than the standard or balances of the previous period while maintaining or exceeding the sales volume for the period under review. Relative release of working capital occurs in cases where the acceleration of their turnover occurs simultaneously with an increase in production volume, and the growth rate of production volume is faster than the growth rate of working capital balances.

The main ways to reduce production inventories come down to their rational use, elimination of excess stocks of materials, improvement of rationing, improvement of supply organization, optimal selection of suppliers, and smooth operation of 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, and saving 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. The most important prerequisites for reducing investments of working capital in the circulation sector are the rational organization of sales of finished products, the use of progressive payment methods, timely execution of documentation and acceleration of its movement, compliance with contractual and payment discipline.

The structure of working capital at enterprises in different industries is determined by the specifics of their production and the nature of the products produced. For example, in ferrous metallurgy, the size and structure of working capital are determined by the continuous production process and the significant material intensity of products.

Along with the division of working capital by stages of circulation into working capital (functioning in the sphere of production) and circulating funds (functioning in the sphere of circulation), there is a second division into normalized and non-standardized working capital. Standardized working capital consists of working capital and finished products in the warehouse, ensuring the continuity of the production process. In the total amount of working capital of ferrous metallurgy enterprises, the predominant part (up to 90%) is made up of standardized working capital. The division of working capital into standardized and non-standardized is not rigid. The organization has the right to independently determine the list of working capital included in a particular group.

Working capital is the most important factor in the production process and takes up a fairly large share in the total value of the enterprise's property. Therefore, it is necessary to rationally approach the size of mobile assets and plan their values. For this, indicators of the efficiency of working capital operation are used (turnover ratio, load factor, profitability, etc.)

The essence of the indicator

This indicator is considered basic when planning the required amount of mobile funds, since it reflects the number of fund turnovers over the period. In other words, the working capital turnover ratio characterizes the efficiency of using working capital in order to generate income from core activities.

Like any ratio, the indicator is relative and reflects how many turnovers need to be made by mobile means to ensure a given rate of revenue.

How to calculate the working capital turnover ratio

In order to find this indicator, it is necessary to identify two quantities - income and working capital. In the planned calculation, income is reflected through the revenue indicator, and working capital is reflected 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 must be comparable, that is, both the revenue and the cost of mobile funds must be taken for one period, for example, a year.

General calculation formula

The turnover ratio is measured in the number of revolutions per period. In general, the formula for calculating the working capital turnover ratio is presented as:

Tr = TR/C rev,

Tr (turnoverratio) – working capital turnover ratio, rpm;

TR (total revenue) – revenue, rub.;

C ob – average value of mobile funds, rub.

The above indicators, in turn, are found using the following algorithm:

TR = P * Q,

P (price) – unit price of the product, rub.;

Q (quantity) – number of products produced and sold, rub.

C rev = (C np + C kp)/2,

C np – the amount of working capital at the beginning of the period, rub.;

Скп – the amount of working capital at the end of the period, rub.

Balance calculation formula

To find the turnover ratio, it is necessary to use data from the income statement and balance sheet.

The data will allow you to find the indicator only for the year; other periods cannot be calculated from the balance sheet information.

Methodology (formula) for calculating the turnover ratio of current assets on the balance sheet:

Tr = line 2110 OFR / (line 1200 np BB + line 1200 kp BB)/2,

Tr (turnoverratio) – working capital turnover ratio, rpm;

line 2110 OFR – revenue according to the financial results report, rub.;

line 1200 np BB – the amount of working capital at the beginning of the year, rub.;

line 1200 kp BB – the amount of working capital at the end of the year, rub.

Example of calculation by balance

Tr = 1800,000 / (400,000 + 500,000)/2 = 4 rev/year.

Thus, the turnover ratio for 2014 is 4 turnovers, that is, mobile funds will turn over four times during the period.

Analysis and standard value of the turnover ratio of current assets

The indicator must be calculated constantly and identify dynamics over several years, because data for one period does not give an overall picture of the situation.

There are no specific normative coefficient values, but each enterprise sets a target value for itself.

In general, the more revolutions mobile capital makes, the higher the income will be, but at the same time there will be a release of working capital from operation.

Video - indicators of efficiency in the use of working capital:

A decrease in the ratio compared to the previous period reflects a negative trend - the organization will not receive part of the revenue. To level out the negative aspects, it is rational to involve additional mobile funds in production.

What most often depends on

We can identify a list of factors that most strongly influence the value of the coefficient under consideration.

Firstly, this indicator can be significantly changed by the time spent by working capital in inventories, accounts receivable, unsold products in the warehouse and unfinished products.

Secondly, the turnover ratio depends on changes in the duration of technological and production cycles, personnel qualifications, conditions for the sale of services, goods and works and, in general, on the peculiarities of the organization of the company’s activities.

What does an increase in the working capital turnover ratio lead to?

The growth of the indicator is more often perceived as a positive factor - the faster mobile funds turn around, the more revenue the company will receive. Accelerating turnover leads to an improvement in other indicators of effect and efficiency - profit, etc.

But there are also negative aspects to this - too much inventory needs to be stored somewhere, and this entails additional costs. Due to faster turnover, productivity also increases, which leads to higher wages.

Therefore, before planning to increase the ratio, it is necessary to adjust not only the potential additional income, but also the increasing costs associated with it.

Possible reasons for the decline

A slowdown in turnover may occur due to an increase in the duration of one turnover, the reasons for which are an unjustified increase in inventories, the appearance of customer debt, a failure in the production process and, as a result, unfinished products.

Possible reasons also include a decrease in demand, due to which finished products remain in stock longer and production volumes fall.

In general, the working capital turnover ratio allows for a fairly qualitative assessment. But for a more complete and objective assessment, it is advisable to calculate other indicators of efficiency and liquidity stability.

Video - the working capital of the enterprise and the efficiency of their use in the form of a turnover ratio:

In the article we will talk about working capital load factor, and also consider the formula for calculating the indicator for the business plan. This coefficient is inverse and represents the ratio of the average cost of working capital for the period to revenue from sales of products. It shows the amount of working capital spent per 1 ruble of products sold. The formula for calculating the working capital load factor is discussed below.

K rev – turnover ratio.

The period for which the cost of working capital is averaged can be equal to: 30 days, 180 days, 360 days.

The working capital utilization ratio characterizes the efficiency of using working capital. The lower the load factor, the more efficiently the business operates and the more efficient use of working capital.

Summary

The main task in managing the assets of an enterprise is to maximize the profit on invested money while ensuring the liquidity and solvency of the company. In order to ensure sufficient solvency, the enterprise must have a certain amount of money in its account, which is not involved in production turnover. One of the important tasks in managing working capital of an enterprise is to ensure an optimal balance between the solvency of the enterprise through maintaining the appropriate amounts of working capital (see “

Working capital turnover rate is the most important indicator of the intensity of their use and is determined using the following interrelated indicators:

· Turnover ratio;

· Duration of one revolution in days;

· Working capital utilization rate.

Turnover ratio (Kob) shows the number of revolutions made by working capital per year (half year, quarter) and is determined by the formula

Kob = R/O, Where

P – cost of products sold (revenue from sales) for a certain period;

О – average balance of working capital for the same period (average annual cost of working capital).

The higher the turnover ratio, the better the use of working capital.

Example. P = 200 million rubles, O = 40 million rubles. (in a year)

Cob = 200 / 40 = 5 rev.

This means that during the year, every ruble invested in working capital made 5 revolutions.

Index duration of one revolution in days does not depend on the duration of the period for which it was calculated. For example, 2 turnovers of funds in each quarter of the year will correspond to 8 turnovers per year with a constant duration of one turnover in days.

The duration of one revolution in days is determined:

D = T / Kob, Where

Kob – turnover ratio;

T – duration of the period (T=30; 90: 360 days)

With Cob = 5, the duration of one revolution will be 360 ​​/ 5 = 72 days

A decrease in the duration of one revolution indicates an improvement in the use of working capital.

Load factor working capital(Кз) – the inverse indicator of the turnover ratio:

Kz = 1 / Ko = O / R

It characterizes the amount of the balance of working capital per 1 ruble. proceeds from sales.

In the example considered, Kz = 1 / 5 = 40 / 200 = 0.2

For 1 rub. revenue from RP accounted for 20 kopecks of the cost of working capital inventories. The lower the working capital load factor, the more efficiently working capital is used.

The acceleration or deceleration of asset turnover is identified by comparing actual indicators with planned ones or the previous period. When the turnover of working capital (working capital) accelerates, material resources and sources of their formation are released from circulation; when it slows down, additional funds are drawn into circulation. The release of working capital can be absolute or relative.

R 2008 = 600 thousand rubles R 2009 = 612 thousand rubles.

O 2008 = 120 thousand rubles. O 2009 =110.5 thousand rubles

K2008 = 600 / 120 = 5.0 K 2009 = 612 / 110.5 = 5.54

D 2008 = 360 / 5 = 72 days D 2009 = 360 / 5.54 = 65 days

Absolute release of O 2008 - O 2009 = 120 - 110.5 = 9 thousand rubles of working capital compared to 2008. Relative release of working capital as a result of accelerated turnover:

Votn = Pz / T * (D 1 - D 2)

Votn = 612 / 360 * (72 – 65) = 11.9 thousand rubles, or in another way. The need for working capital in 2009 with a turnover of 2008 and sales volume of 2009 is equal to

612 * 72 / 360 = 122.4 thousand rubles.

The relative release of working capital will be:

122.4 - 110.5 = 11.9 thousand rubles.

is divided according to the following formula:

where K is the load factor of funds in circulation, kopecks;

Converting rubles to kopecks.

Load factor of funds in circulation (X) -value, reverse-

based on the funds turnover ratio (K^). The lower the coefficient

The loading factor of funds, the more efficiently working capital is used

Funds at the enterprise, its financial position improves.

Due to the fact that working capital consists of turnover

new funds and circulation funds, then the turnover ratios

The possibilities for them can be determined as follows:

working capital turnover ratio;

-average balance of working capital for the reporting period;

circulation fund turnover ratio;

-average balance of circulating funds for the reporting period.

Working capital consists of production inventories,

Work in progress, accounts receivable and dis-

Moves of future periods. Therefore, for a more detailed analysis

You can determine the turnover ratio for each element

Menta of revolving funds.

This methodological approach is also valid for background elements.

Dov appeal. For example, the production turnover ratio

Water inventories and accounts receivable may be

Defined from expression

inventory turnover ratio;

-average balance of inventories for the reporting period;

accounts receivable turnover ratio;

- average balance of accounts receivable for the reporting period.

Accelerating the turnover of working capital is important

Reading, first of all, to improve the financial condition of

Acceptance, and ultimately to achieve maximum profit.

The basis for accelerating the turnover of working capital

Are the magnitude of the volume of production and the speed of its

Implementations. Between sales volume and equipment turnover

There is a direct and inverse relationship between company funds.

The magnitude of the increase in production volume due to the acceleration of turnover

The readability of working capital (all other things being equal) can be

but determine using the chain substitution method:

Where is the increase in production volume due to accelerated turnover?

Working capital,

turnover ratio in the reporting and planning periods;

average balance of working capital in the planning period

The influence of working capital turnover on the increase

Profits can be determined by the formula

where is the increase in profit in the planning period due to the acceleration of turnover

Working capital turnover,

Profit of the enterprise in the reporting period.

Acceleration of turnover of working capital leads to their

Release. Let's show this with a conditional example.

Example. During the reporting year, the volume of product sales amounted to

Million rubles, and the average annual working capital balance is 5 million

rub. For the planning period, the volume of sales is envisaged

tions to increase by 20%, and the turnover ratio by one

Turnover

Determine the indicators for the use of working capital in the period

even and planned periods and their release.

Solution

We determine the indicators for the use of working capital for

reporting period:

We determine indicators for the use of working capital

in the planning period:

3. Determine the release of working capital:

where is the need for working capital in the planning period, if not

there was an acceleration of their turnover;

the need for working capital in the planning period, taking into account

Volume of accelerating their turnover.

The turnover of working capital at an enterprise depends

on the following factors: duration of the production cycle;

The quality of products and their competitiveness; ef-

Efficiency of working capital management at the enterprise

In order to minimize them; solving the problem of reducing material

Product containers; method of supplying and marketing products; struc-

Tours of working capital, etc.

REGULATORY FRAMEWORK OF THE ENTERPRISE

AND WAYS TO IMPROVE IT

The level of use of material resources is significantly

To a certain extent, it is determined by the state of the regulatory framework at the enterprise.

The regulatory framework is understood as the entire set of norms and norms

materials, which is used in the enterprise for planning and

Analysis of the consumption of material resources.

The rate of consumption of material resources is the maximum

permissible planned value of consumption of raw materials (materials or fuel)

Va), which can be spent to produce a unit

Products (or work).

The rate of consumption of material resources can be represented as follows:

following form:

the amount of consumption rate,

net mass, or useful flow;

-total technological waste and losses,

- other organizational and technical waste and losses.

The first and main element of the norm is pure mass

Products, i.e., useful consumption of material resources for production

Production of products, or volume of work (excluding any waste)

Dov and losses).

The second element of the consumption rate is the total technological