The turnover ratio of working capital characterizes. Working capital statistics

12.10.2019

The current assets of the enterprise are understood as the assets used in the current activities of the organization. According to Russian standards accounting (RAS), these include: stocks of raw materials and supplies, finished products and work in progress, cash and cash equivalents (such as air and railway tickets, travel tickets, etc.), goods purchased for resale, accounts receivable, and financial investments for a period of less than one year.

Without competent and rational use this group of assets is impossible for the economic activity of any organization.

That is why it is so important to carefully monitor the ways and procedures for using the company's working capital. In economic analysis, one of the most significant indicators that allow us to assess the effectiveness of the use of the company's working capital is the turnover ratio of the company's current assets.

Calculation procedure

Turnover ratio working capital allows you to determine how much efficiently and intensively current assets of the company are used.
In other words, it shows how much of an enterprise's revenue falls on one ruble of working capital.

Thus, the turnover ratio is calculated as:

K_ob = TR / (P_ (ob.sr.))

where:
TR is the revenue or the volume of products sold for the analyzed period of time, excluding VAT;
(P_ (ob.cr.)) - the average cost of the company's working capital for the specified period.

Since the main purpose of asset management of the company is profit maximization organization received per unit of invested capital, it is with the help of this coefficient that the owner can analyze the return received from current assets. The higher the value of this indicator, the more efficiently the working capital is used in the company!

Calculation data

Traditionally, data are used to calculate economic indicators accounting statements enterprises. To calculate the turnover ratio of current assets, the information provided in the Balance Sheet (Form No. 1) and the Statement of Financial Results (formerly the Profit and Loss Statement) (Form No. 2) is required. Obviously, reporting is used for the exact period of time that is being analyzed.

The average cost of the organization's working capital for twelve months is found as the difference between the value of the working capital at the beginning and at the end of the year, divided in half.

(P_ (ob.sr.)) = (P_ (ob.sr. 2) - P_ (ob.sr. 1)) / 2

where:
P_ (ob.sr.1) - the amount of the company's working capital at the beginning of the period;
P_ (ob.sr.2) - the amount of working capital at the end of the period.

All these data are presented in the balance sheet of the organization in the line "Total for Section II".

As for revenue (TR), information about it can be found in the second form of financial statements, in the Statement of financial results (line “Revenue”).

General information about the working capital of the enterprise can be obtained from the following video:

Factors affecting the value of the coefficient

Several factors affect the company's working capital turnover ratio. First, its meaning is related to working capital companies, i.e. the higher it is, the lower the final indicator. Secondly, the coefficient is also influenced by the indicator value of products sold.

Thus, if the company consistently demonstrates high rate proceeds, then an increase in working capital for one period may not affect the final value of the turnover ratio in any way.

Analysis of the turnover rate

When analyzing the turnover ratio, it should be understood that its values are not always directly related to the efficiency or inefficiency of the economic activity of the enterprise. In most cases, its value can be explained by several important factors at once:

the scope of the company;
production cycle;
stage of the life cycle.

So, for example, for material-intensive areas production is characterized by much lower values of the coefficient than for trading companies and a growing organization will always use more working capital than a declining organization. That is why it is possible to analyze the value of the turnover indicator only in dynamics. It is best to consider the coefficient values for 5 - 10 years. In this case, it is possible to clearly define both the length of one production cycle of the company and the efficiency of using working capital.

In addition, in order to understand how rationally the resources are used in a particular enterprise, it is worth comparing the data obtained with the industry average. But even in this case, the underestimated or overestimated value of the coefficient will not testify positive or negative results. Thus, it is impossible to draw any conclusions based only on the data on the value of the turnover ratio. To correctly determine the current situation, it is necessary complete economic analysis enterprises.

Information about the indicators of the efficiency of using working capital can be obtained from the following video:

How to increase the turnover rate

If, after analyzing the economic activities of the organization, it was revealed that there are no objective reasons for the underestimated value of the working capital turnover ratio, then it’s time to look solutions this problem, and there can be several such paths.

First, you can reduce the company's working capital, i.e. sell off the leftovers of finished products, reduce the purchase of raw materials and materials, deal with accounts receivable, and so on. Reducing the cost of working capital will allow the company to significantly increase the turnover ratio.

Secondly, you should pay attention to the amount of the company's revenue... If it is not possible to reduce current assets, then it is necessary to look for new ways of selling products. However, it should be understood that attracting new customers and increasing sales in most cases leads to an increase in production volumes. Thus, together with the company's revenue, the costs of working capital may also increase, which will entail a decrease in the value of the coefficient.

Possible reasons for the decline

If, when analyzing the turnover of the company's working capital, it was revealed that the value of this coefficient is continuously decreasing and this has nothing to do with the production cycle of the enterprise, then it's time to pay attention to the ways of using working capital.

First of all, it is necessary to conduct complex analysis of all components of the company's working capital and identify which line of the balance sheet has the greatest specific weight. More often than not, companies suffer from prohibitive inventories and accounts receivable.

If the company's stocks grow from period to period, and the volume of products sold does not change, then the main problem is errors in logistics. In other words, the organization purchases more raw materials and materials than is needed for its current activities. To solve this problem, you should debug the supply chain, revise contracts with suppliers and once again calculate the optimal quantities of stocks for a continuous production process.

Another problem may be settlements with buyers and customers, it is from them that for the most part the accounts receivable of the enterprise are formed. Many large companies prefer to pay their suppliers only at the end of the reporting period, while finished goods were shipped at the very beginning. There are no universal solutions to this problem, and the organization itself chooses how to influence its customers.

Working capital Is a collection Money, advanced for the creation of working capital and circulation funds, ensuring the continuity of the company.

Composition and classification of working capital

Revolving funds- these are assets that, as a result of its economic activity, completely transfer their value to the finished product, take a one-time participation in, changing or losing their natural-material form.

Revolving production assets enter into production in their natural form and are entirely consumed in the manufacturing process. They transfer their value to the created product completely.

Circulation funds associated with the maintenance of the process of circulation of goods. They do not participate in the formation of value, but are its carriers. After completion, manufacture of finished products and their sale, the cost of working capital is reimbursed as part of (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.

Working capital structure- This is the ratio between the individual elements of working capital, expressed as a percentage. The difference in the structures of the companies' working capital is due to many factors, in particular, the characteristics of the organization's activities, the conditions of doing business, supply and sales, the location of suppliers and consumers, and the structure of production costs.

Revolving production assets include:

(raw materials, basic materials and purchased semi-finished products, auxiliary materials, fuel, containers, spare parts, etc.);
with a service life of no more than one year or a cost of no more than 100 times (for budgetary organizations- 50-fold) the established minimum wage per month (low-value quick-wear items and tools);
unfinished production and semi-finished products of our own manufacture (objects of labor that have entered the production process: materials, parts, units and products in the process of processing or assembly, as well as semi-finished products of our own production, not completely finished in production in some workshops of the enterprise and subject to further processing in other workshops. the same enterprise);
future spending(non-material elements of working capital, including the costs of preparing and mastering new products, which are produced in a given period, but are attributed to the products of the future period; for example, the costs of designing and developing technology for new types of products, for rearranging equipment).

Circulation funds

Circulation funds- funds of the enterprise operating in the sphere of circulation; component working capital.

Circulation funds include:

enterprise funds invested in stocks of finished products, goods shipped but not paid for;
funds in payments;
cash on hand and in accounts.

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.

Working capital is a more mobile part.

In each the circuit of circulating assets goes through three stages: monetary, production and commodity.

To ensure an uninterrupted process at the enterprise, working capital or material assets are formed, awaiting their further production or personal consumption. Inventories are the least liquid item among the items of current assets. The following methods of inventory estimation are used: for each unit of purchased goods; at the average cost, in particular, at the weighted average cost, moving average; at the cost of the first purchases in time; at the cost of the most recent purchases. The unit of accounting for working capital as inventories is a batch, a homogeneous group, and an item number.

Depending on the purpose, stocks are divided into production and commodity. Depending on the functions of use, stocks can be current, preparatory, insurance or warranty, seasonal and carryover.

Insurance stocks- a stock of resources intended for uninterrupted supply of production and consumption in cases of a decrease in supplies compared to those envisaged.
Current reserves- stocks of raw materials, materials and resources to meet the current needs of the enterprise.
Preparatory stocks- stocks, depending on the production cycle, are necessary if the raw material must undergo any kind of processing.
Carryover stocks- part of the unused current reserves that are carried over to the subsequent period.

Working capital is located simultaneously at all stages and in all forms of production, which ensures its continuity and uninterrupted operation of the enterprise. Rhythm, coherence and high performance largely depend on optimal sizes working capital(circulating production assets and circulation funds). Therefore, the process of rationing of circulating assets, which refers to the current financial planning at the enterprise, is of great importance. Rationing of working capital is the basis for the rational use of the company's economic assets. It consists in the development of reasonable norms and standards for their consumption, necessary for the creation of constant minimum stocks, and for the smooth operation of the enterprise.

The working capital ratio establishes their minimum estimated amount that is constantly required by the enterprise for work. Failure to fill the working capital standard can lead to a reduction in production, non-fulfillment of the production program due to interruptions in production and sales of products.

Normalized working capital- the size of production stocks, work in progress and balances of finished products in warehouses planned by the enterprise. Working capital stock rate - time (days) during which OBS are in production stock. It consists of the following stocks: transport, preparatory, current, insurance and technological. Working capital ratio - the minimum amount of working capital, including cash, required by a company, a firm to create or maintain carryover inventories and ensure continuity of work.

The sources of the formation of working capital can be profit, loans (bank and commercial, i.e., deferred payment), share (authorized) capital, share contributions, budget funds, redistributed resources (insurance, vertical management structures), accounts payable, etc.

The efficiency of using working capital affects the financial results of the enterprise. In its analysis, the following indicators are used: the availability of own working capital, the ratio between own and borrowed resources, the company's solvency, its liquidity, the turnover of working capital, etc. The turnover of working capital is understood as the duration of the sequential passage of funds through individual stages of production and circulation.

The following indicators of the turnover of working capital are distinguished:

turnover ratio;
duration of one turnover;
load factor of working capital.

Turnover ratio(turnover rate) characterizes the size of the volume of proceeds from the sale of products by the average cost of working capital. Duration of one revolution in days is equal to the quotient of dividing the number of days for the analyzed period (30, 90, 360) to the turnover of working capital. The inverse of the rate of turnover shows the size of the circulating assets advanced by 1 ruble. proceeds from the sale of products. This ratio characterizes the degree of utilization of funds in circulation and is called working capital load factor... The lower the value of the working capital load factor, the more efficiently the working capital is used.

The main goal of enterprise asset management, including working capital, is to maximize the return on invested capital while ensuring a stable and sufficient solvency of the enterprise. To ensure stable solvency, the enterprise must constantly have a certain amount of money on the account, which is actually withdrawn from circulation for current payments. Part of the funds should be placed in the form of highly liquid assets. An important task in terms of managing the working capital of the enterprise is to ensure the optimal balance between solvency and profitability by maintaining the appropriate size and structure of working assets. It is also necessary to maintain an optimal ratio of own and borrowed working capital, since the financial stability and independence of the enterprise, the possibility of obtaining new loans, directly depend on this.

Analysis of the turnover of working capital (analysis of the business activity of the organization)

Working capital- these are funds advanced by organizations to maintain the continuity of the production and circulation process and returned as part of the proceeds from the sale of products in the same monetary form with which they began their movement.

To assess the effectiveness of the use of working capital, the indicators of the turnover of working capital are used. The main ones are the following:

average duration of one turnover in days;
the number (number) of revolutions made by circulating assets during a certain period of time (year, half a year, quarter), otherwise - the turnover ratio;
the amount of employed working capital per 1 ruble of products sold (working capital load factor).

If the circulating assets go through all the stages of the circulation, for example, in 50 days, then the first indicator of the turnover (the average duration of one turnover in days) will be 50 days. This indicator roughly characterizes the average time that elapses from the moment of purchase of materials to the moment of sale of products made from these materials. This indicator can be determined by the following formula:

P is the average duration of one turnover in days;
СО - the average balance of working capital for reporting period;
Р - sales of products for this period (net of value added tax and excise taxes);
B - the number of days in the reporting period (360 in a year, 90 in a quarter, 30 in a month).

So, the average duration of one turnover in days is calculated as the ratio of the average balance of working capital to the one-day turnover for product sales.

The indicator of the average duration of one turnover in days can be calculated in another way, as the ratio of the number of calendar days in the reporting period to the number of revolutions made by circulating assets for this period, i.e. according to the formula: P = V / CHO, where CHO is the number of revolutions made by working capital for the reporting period.

Second turnover indicator- the number of revolutions made by circulating assets for the reporting period (turnover ratio) - can also be obtained in two ways:

as the ratio of product sales minus value added tax and excise taxes to the average balance of working capital, i.e. according to the formula: CHO = R / CO;
as the ratio of the number of days in the reporting period to the average duration of one turnover in days, i.e. according to the formula: CHO = V / P .

The third indicator of turnover (the sum of the employed working capital per 1 ruble of products sold, or otherwise - the factor of working capital utilization) is determined in one way as the ratio of the average balance of working capital to the turnover for sales of products for a given period, i.e. according to the formula: CO / R.

This indicator is expressed in kopecks. It gives an idea of how many kopecks of working capital are spent to receive each ruble of proceeds from the sale of products.

The most common is the first turnover indicator, i.e. average duration of one turnover in days.

Most often, the turnover is calculated per year.

In the analysis, the actual turnover is compared with the turnover for the previous reporting period, and for those types of current assets for which the organization sets standards - also with the planned turnover. As a result of this comparison, the amount of acceleration or deceleration of the turnover is determined.

The initial data for the analysis are presented in the following table:

In the analyzed organization, the turnover slowed down, both in terms of standardized and non-standardized working capital. This indicates a deterioration in the use of working capital.

When the turnover of circulating assets slows down, there is an additional attraction (involvement) of them in turnover, and when accelerating, there is a release of circulating assets from circulation. The amount of working capital released due to the acceleration of turnover or additionally attracted as a result of its slowdown is determined as the product of the number of days by which the turnover accelerated or slowed down by the actual one-day sales turnover.

The economic effect of accelerating turnover is that an organization can produce more products with the same amount of working capital, or produce the same volume of products with a smaller amount of working capital.

Acceleration of the turnover of working capital is achieved by introducing new technology into production, progressive technological processes, mechanization and automation of production. These measures help to reduce the duration of the production cycle, as well as to increase the volume of production and sales of products.

In addition, to speed up turnover essential has: rational organization of material and technical support and sale of finished products, compliance with the mode of saving in costs for production and sale of products, the use of forms of non-cash payments for products that contribute to the acceleration of payments, etc.

Directly in the analysis of the current activities of the organization, it is possible to identify the following reserves for accelerating the turnover of working capital, which consists in eliminating:

excess inventories: 608 thousand rubles;
goods shipped, not paid on time by buyers: 56 thousand rubles;
goods in safe custody with buyers: 7 thousand rubles;
immobilization of working capital: 124 thousand rubles.

Total reserves: 795 thousand rubles.

As we have already established, the one-day sales turnover in this organization is equal to 64.1 thousand rubles. So, the organization has the ability to accelerate the turnover of working capital by 795: 64.1 = 12.4 days.

To study the reasons for changes in the rate of turnover of funds, it is advisable, in addition to the considered indicators of general turnover, to calculate also indicators of private turnover. They refer to certain types of circulating assets and give an idea of the time spent on circulating assets at various stages of their circulation. These indicators are calculated in the same way as stocks in days, however, instead of the remainder (stock) at a certain date, the average balance of this type of current assets is taken here.

Private turnover shows how many days on average there are circulating assets in a given stage of the circuit. For example, if the private turnover for raw materials and basic materials is 10 days, this means that, on average, 10 days pass from the moment the materials arrive at the organization's warehouse until they are used in production.

As a result of summing up the indicators of private turnover, we will not get an indicator of the total turnover, since different denominators (turnovers) are taken to determine the indicators of private turnover. The relationship between the indicators of private and general turnover can be expressed by the terms of the total turnover. These indicators make it possible to establish what effect the turnover of certain types of working capital has on the overall turnover rate. The terms of the total turnover are determined as the ratio of the average balance of a given type of circulating assets (assets) to the one-day sales turnover. For example, the summand of the total turnover for raw materials and basic materials is equal to:

Divide the average balance of raw materials and basic materials by the daily sales turnover (after deducting value added tax and excise taxes).

If this indicator is, for example, 8 days, then this means that the total turnover due to raw materials and basic materials accounts for 8 days. If we sum up all the terms of the total turnover, the result will be an indicator of the total turnover of all working capital in days.

In addition to those considered, other indicators of turnover are calculated. So, in analytical practice, the inventory turnover indicator is used. The number of turnovers made by stocks for a given period is calculated using the following formula:

Works and services (minus and) divided by the average value under the item "Inventories" of the second section of the balance sheet asset.

Acceleration of inventory turnover indicates an increase in the efficiency of inventory management, and a slowdown in inventory turnover indicates their accumulation in excessive amounts, and ineffective inventory management. Indicators are also determined that reflect the turnover of capital, that is, the sources of formation of the organization's property. So, for example, turnover equity capital, calculated according to the following formula:

Sales turnover for the year (net of value added tax and excise taxes) divided by the average annual cost of equity.

This formula expresses the efficiency of using equity capital (authorized, additional, reserve capital, etc.). It gives an idea of the number of revolutions made by the organization's own sources of activity per year.

The invested capital turnover is the sales turnover for the year (after deducting value added tax and excise taxes) divided by the average annual cost of equity capital and long-term liabilities.

This indicator characterizes the effectiveness of the use of funds invested in the development of the organization. It reflects the number of revolutions made by all long-term sources during the year.

When analyzing the financial condition and the use of working capital, it is necessary to find out from what sources the financial difficulties of the enterprise are compensated. If the assets are covered by stable sources of funds, then the financial condition of the organization will be stable not only at this reporting date, but also in the near future. Sustainable sources should be considered own circulating assets in sufficient amounts, non-decreasing balances of carry-over debt to suppliers under accepted settlement documents whose payment deadlines have not yet come, constantly carrying over arrears on payments to the budget, a non-decreasing part of other accounts payable, unused balances of special-purpose funds (accumulation funds and consumption, as well as the social sphere), unused balances of targeted financing, etc.

If the financial breakthroughs of the organization are blocked by unstable sources of funds, it is solvent at the reporting date and may even have free funds in bank accounts, but in the near future it will face financial difficulties. The unstable sources of working capital are available on the 1st day of the period (the date of the balance sheet), but absent on the dates within this period: outstanding arrears in wages, deductions to extra-budgetary funds (in excess of certain stable values), unsecured debts to banks on loans for inventory items, debts to suppliers under accepted settlement documents, the payment terms of which have not come, in excess of the amounts attributed to sustainable sources, as well as debts to suppliers for non-invoiced deliveries, arrears in payments to the budget in excess of the amounts attributed to sustainable sources of funds.

It is necessary to make a final calculation of financial breakthroughs (i.e. waste of funds) and sources of coverage for these breakthroughs.

The analysis ends with a general assessment of the financial condition of the organization and drawing up an action plan to mobilize reserves to accelerate the turnover of working capital and increase liquidity and strengthen the organization's solvency. First of all, it is necessary to assess the provision of the organization with its own circulating assets, their safety and use for their intended purpose. Then, an assessment is made of compliance with financial discipline, the solvency and liquidity of the organization, as well as the completeness of use and security of bank loans and loans from other organizations. Measures are outlined for the more efficient use of both equity and borrowed capital.

The analyzed organization has a reserve for accelerating the turnover of working capital for 12.4 days (this reserve is noted in this paragraph). To mobilize this reserve, it is necessary to eliminate the causes of the accumulation of excess stocks of raw materials, basic materials, spare parts, other production stocks and work in progress.

In addition, it is necessary to ensure the targeted use of working capital, preventing their immobilization. Finally, receiving payments from buyers for goods shipped by them that were not paid on time, as well as the sale of goods that are in custody with buyers due to refusal to pay, will also accelerate the turnover of working capital.

All this will help to strengthen the financial condition of the analyzed organization.

Indicators of the availability and use of working capital

Working capital - consumed in one production cycle, materially included in the product and completely transfer their value to it.

The availability of working capital is calculated both on a specific date and on average for the period.

Indicators of the movement of working capital characterize its change during the year - replenishment and disposal.

Turnover ratio of working capital

It is the ratio of the value of products sold for a given period to the average balance of circulating assets for the same period:

To turnover= Cost of products sold for the period / Average balance of working capital for the period

The turnover ratio shows how many times the average balance of working capital has turned around for the period under review. In terms of economic content, it is equivalent to the rate of return on assets.

Average turnaround time

Determined from the turnover ratio and the analyzed time period

Average duration one turn= The duration of the measurement period for which the indicator is determined / the ratio of the turnover of working capital

The coefficient of fixation of working capital

The value is inversely proportional to the turnover rate:

To anchoring= 1 / K turnover

Reinforcement ratio = average balance of working capital for the period / cost of products sold for the same period

In terms of economic content, it is equivalent to the capital intensity indicator. The fastening coefficient characterizes the average size the cost of working capital per 1 ruble of the volume of products sold.

Working capital requirement

The company's need for working capital is calculated on the basis of the coefficient of fixing the working capital and the planned volume of sales of products by multiplying these indicators.

Provision of production with working capital

It is calculated as the ratio of the actual working capital stock to the average daily consumption or the average daily requirement for it.

Acceleration of the turnover of working capital helps to increase the efficiency of the enterprise.

Task

According to the data for the reporting year, the average balance of the company's working capital amounted to 800 thousand rubles, and the cost of products sold for the year in existing wholesale prices the enterprise amounted to 7200 thousand rubles.

Determine the turnover ratio, the average duration of one turnover (in days) and the fixing ratio of working capital.

Turnover ratio = 7200/800 = 9
Average turnaround time = 365/9 = 40.5
To fixing the current assets = 1/9 = 0.111

Task

For the reporting year, the average balance of the company's working capital amounted to 850 thousand rubles, and the cost of products sold for the year - 7200 thousand rubles.

Determine the turnover ratio and the fixing ratio of working capital.

Turnover ratio = 7200/850 = 8.47 revolutions per year
Consolidation ratio = 850/7200 = 0.118 rubles of working capital per 1 ruble of sold products

Task

The cost of products sold in the previous year amounted to 2,000 thousand rubles, and in reporting year in comparison with the previous year increased by 10% while reducing the average duration of one turnover from 50 to 48 days.

Determine the average balance of working capital in the reporting year and its change (in%) compared to the previous year.

Solution

The cost of products sold in the reporting year: 2000 thousand rubles * 1.1 = 2200 thousand rubles.

Average working capital balance = Volume of products sold / K turnover

Turnover ratio = Duration of the analyzed period / Average duration of one turnover

Using these two formulas, we derive the formula

Average working capital balance = Volume of products sold * Average duration of one turnover / Duration of the analyzed period.

Average remainder of the previous year = 2000 * 50/365 = 274
Average remainder of Ob.av. in the current year = 2200 * 48/365 = 289

289/274 = 1.055 In the reporting year, the average balance of working capital increased by 5.5%

Task

Determine the change in the average coefficient of fixing current assets and the influence of factors on this change.

K fixation = average working capital balance / cost of goods sold

To consolidation by the concern, the base period = (10 + 5) / (40 + 50) = 15/90 = 0.1666
To consolidate the concern reporting period = (11 + 5) / (55 + 40) = 16/95 = 0.1684

Index of general change in the coefficient of reinforcement

= СО (average balance) _1 / РП (sold products) _1 - СО_0 / РП_0 = 0.1684 - 0.1666 = 0.0018

Index of change in the coefficient of reinforcement from changes in the average balance of working capital

= (CO_1 / RP_0) - (CO_0 / RP_0) = 0.1777 - 0.1666 = 0.0111

Index of change in the coefficient of reinforcement from changes in the volume of products sold

= (CO_1 / RP_1) - (CO_1 / RP_0) = -0.0093

The sum of the individual indices must equal the general index = 0.0111 - 0.0093 = 0.0018

Determine the total change in the balance of working capital, and the amount of released (involved) working capital as a result of changes in the speed and changes in the volume of sales.

Average change in the balance of working capital = 620 - 440 = 180 (increased by 180)

General index of changes in the balance of working capital (CO) = (RP_1 * pro 1. turnover_1 / days in the quarter) - (RP_0 * pro 1. turnover_0 / days in the quarter)

Duration of 1 turnover in the reporting quarter = 620 * 90/3000 = 18.6 days
Duration of 1 turnover in the previous quarter = 440 * 90/2400 = 16.5 days

Index of changes in fixed assets from changes in the volume of products sold

= RP_1 * prod.1v._0 / quarter - RP_0 * prod.1ob._0 / quarter = 3000 * 16.5 / 90 - 2400 * 16.5 / 90 = 110 (increase in the balance of working capital due to an increase in the volume of products sold )

The index of changes in fixed assets from changes in the rate of turnover of working capital

= RP_1 * prod.1ob._1 / quarter - RP_1 * prod.1ob._0 / quarter = 3000 * 18.6 / 90 - 3000 * 16.5 / 90 = 70

The total capital turnover ratio is one of the indicators of the business activity of an enterprise. Reflects the rate of turnover of all funds of the company. That is. how many times in the analyzed period a full cycle occurs (from the production of goods (services) to sales and profit.

This is an indicator of the effectiveness of the use of the firm's property. Since it shows how much money from the sale brings each unit of assets.

Analysis of turnover to determine business activity

Business activity reflects the performance of the company in relation to the amount of funds invested or the amount of their consumption in the production process. The indicator is expressed in the dynamism of the development of the enterprise, the fulfillment of the assigned tasks, the rate of turnover of funds.

Depends on the turnover:

the value of the annual turnover;
the amount of expenses (the higher the rate of turnover, the less expenses are accounted for for each turnover);
the speed of the turnover at each stage (acceleration at one stage entails an increase in the speed of turnover at the other stages).

The higher the turnover, the less the company needs to attract additional funds or the more products it can release. As a result of the acceleration of the turnover of assets, circulating assets are freed up, less materials, raw materials, fuels and lubricants are required. Accordingly, the financial resources that the organization has invested in these reserves are released.

Business analysis involves the study of various ratios. One of the main ones is the indicator of the total capital (assets) turnover.

Total capital turnover ratio (resource efficiency): formula

As a rule, the analyzed period is taken as a year. The ratio shows how many times the assets of the company are “turned around”. The rate of turnover - the rate at which funds are converted into money supply - directly affects the solvency of an organization.

The formula for the total capital turnover ratio:

revenue / average assets.

Total capital turnover ratio - balance formula:

p. 2110 / (0.5 * (p. 1600np + p. 1600kp)),

where p. 2110 - from form 2 (statement of financial results), p. 1600 - from form 1 (balance sheet).

Let's calculate the capital efficiency indicator using Excel tools. Data:

Indicator rate

Let's analyze the coefficient of total capital turnover. The normative value for the indicator has not been established. Most often, the figures obtained are compared with the corresponding values in the industry. For example, in capital-intensive areas, the turnover will be lower than in trade.

The higher the coefficient, the sooner the capital "turns around", the more more money the company earns from every ruble of the asset. For the analyst, the dynamics of the indicator over a number of periods is important.

The acceleration in capital turnover reflects:

increasing production and technical potential;
increase in profits (based on each unit of the asset);
high efficiency in the use of assets.

The growth of the indicator may be artificial due to the use of leased fixed assets.

A decrease in the ratio indicates a decrease in sales or an increase in financial injections into the assets used.

Let's go back to the example and display it on the chart:

The stable growth of the capital turnover indicator indicates the efficiency of the use of the company's assets. The release of funds (due to the acceleration of turnover) allows the organization to improve the material and technical base, possibly launch a new product, open a new direction of sales.

Consider the turnover ratio of working capital (assets). This coefficient is included in the group of indicators of Business activity and shows the intensity of the use of enterprise resources.

Let us analyze this coefficient according to the following scheme: first we will consider its economic meaning, then the calculation formula and standard, and also calculate the ratio of the turnover of working capital for a domestic enterprise in order to clearly see everything. Let's start!

Turnover ratio of current assets (assets)... Economic meaning

Determines the efficiency of the enterprise not in terms of profitability, but in terms of the intensity of the use of working capital (assets). The coefficient shows how many times during the selected period (year, month, quarter) circulating assets are turned over.

What is included in the working capital?

Current assets include:

Stocks,
Money,
Short-term investments,
Short-term receivables.

What determines the value of the working capital turnover ratio?

The value of the coefficient is directly related to:

With the duration of the production cycle,
Personnel qualifications,
The type of activity of the enterprise,
The pace of production.

Trading enterprises have the maximum values of the coefficient, and the minimum - capital-intensive research enterprises. That is why it is customary to compare enterprises by industry, and not all together.

Working capital turnover ratio... Synonyms

The synonyms for this ratio can be the following: the turnover ratio of current assets, the turnover ratio of mobile assets, the ratio of the functioning capital. It is useful to know the synonyms for the coefficient, since it is often called differently in the literature. And so that this does not mislead you, you need to assume what the indicator has synonyms. By the way, this is one of the problems of the domestic economy - for some reason every economist wants to name the coefficient in his own way. There is no unity in terms and definitions.

Working capital turnover ratio... Calculation formula

The calculation formula is as follows:

Working capital turnover ratio = Sales revenue / Current assets

What should be noted is that current assets are taken as an average at the beginning and end of the reporting period. It is necessary to add the value at the beginning of the period with its end and divide by 2.

By new form balance sheet(after 2011) the working capital turnover ratio will be calculated as follows:

Working capital turnover ratio = line 2110 / (line 1200 + line 1200 kg) * 0.5

According to the old form of the balance sheet, the ratio was calculated as follows:

Working capital turnover ratio = line 010 / (line 290ng. + 290 kg.) * 0.5

Indicator of working capital turnover

Together with the turnover ratio of working capital, it is useful to calculate turnover rate which is measured in days. The formula for calculating the turnover of working capital:

Turnover of current assets = 365 / Ratio of turnover of current assets

Sometimes in calculations for a place 365 days take 360 days.

Video lesson: "Calculation of key turnover ratios for OAO Gazprom"

Working capital turnover ratio... Calculation on the example of OJSC Rostelecom

Calculation of the turnover ratio of working capital (assets) for OJSC Rostelecom. Enterprise balance

Calculation of the turnover ratio of working capital (assets) for OJSC Rostelecom. Gains and losses report

To calculate the ratio, public reporting is enough, which can be taken from the official website of the company. Let's take 4 reporting periods (quarter each), so we can cover a whole year for our diagnostics. Since the calculation of the coefficient uses the data at the beginning and end of the reporting year, in our case it will turn out for 4 reporting periods - 3 calculated coefficients.

Working capital turnover ratio 2014-1 = 73304391 / (112128568 + 99981307) * 0.5 = 0.69
Working capital turnover ratio 2014-2 = 143213504 / (99981307 + 96694304) * 0.5 = 1.45
Working capital turnover ratio 2014-3 = 214566553 / (96694304 + 110520420) * 0.5 = 2

The value of the coefficient has increased over the year. It can be concluded that OJSC Rostelecom has increased the efficiency of its activities. This is largely due to the fact that the Revenue was increasing. It was the increase in revenue that gave an increase in the values of the coefficient, since the value of fixed assets (line 1200) did not change much.

Working capital turnover ratio... Standard

It should be noted right away that this coefficient cannot be negative. Low values indicate that the company has accumulated excessive working capital.

How can this coefficient be increased?

To do this, it is necessary: to increase the competitiveness of products (there will be more sales from this), to reduce the production cycle manufacture of products, improve the product sales system.

Summary

The article discusses the ratio of the turnover of working capital. This indicator belongs to the group of indicators "Business activity" and assesses the efficiency of the enterprise not from the point of view of profitability (as the indicators from the "Profitability" group do), but from the position of the intensity of the use of working capital. An important role in the ratio is played by the Revenue indicator (it is in the numerator). If we talk about the fact that this ratio must be constantly increased, then we must first of all increase the Revenue from our activities (since fixed assets can not be changed so quickly, in the example for OJSC Rostelecom, fixed assets did not change much over the year) ... Thus, the ratio of working capital turnover shows our sales, which provide Revenue. A decrease in this ratio is a direct sign either to the fact that our sales have decreased or we have begun to accumulate excess current assets. It is useful to compare the ratio with the ratio of a similar business (industry leader) or with the industry average. In addition, for the analysis, it is useful to evaluate changes in the coefficient in dynamics over a period (for a year, for example).

The management of any enterprise, as well as its investors and creditors, are interested in the performance indicators of the company. Various techniques are used to conduct a comprehensive analysis.

The indicators of profitability and business activity are studied without fail. If the first group considers net profit in the analysis process, then the second one considers sales proceeds. The research is carried out using a system of indicators. One of the first to study the turnover ratio, the formula of which takes into account all the assets of the company. Further, its structural components are examined. Liability indicators are also involved in the analysis. This allows you to understand how quickly the company converts available resources into money, and is calculated on debt obligations.

Reverse cycle concept

The turnover ratio of the company's assets allows us to estimate the speed at which the company's capital goes through its full cycle. The company that owns the resources uses them to manufacture products, sell them and make a profit.

The period for which the funds available to the organization go through all the stages is called the turnover cycle. First, resources are converted into finished products. Then it is sent on sale. Customers purchase goods or services and the money is returned back to the organization.

The faster the full cycle takes place, the more sales revenue the company receives. Therefore, she is interested in speeding up the turnover. Analysis of business activity allows you to highlight the constraining factors. The asset turnover ratio, the formula of which considers its structural elements, makes it possible to harmoniously distribute and use property.

Turnover period

The turnover ratio, the formula of which shows a numerical result, is not always absolutely informative. Its growth in dynamics speaks of a positive trend for the organization. But this indicator does not reveal information about the duration of the cycle.

Therefore, such odds are presented in days. The analyst can then accurately determine how long the period lasts. This allows you to find the optimal value of the coefficient. The researcher assesses the turnover cycle of permanent and current assets, accounts payable. But it is the movable property that deserves the closest attention, and this analysis reflects the system of the company's interaction with suppliers, its sales and material support of current activities.

Cost cycle

It is current assets that are of great interest to analysts in the presented analysis. Therefore, for the assessment, the current assets turnover ratio is used, the formula of which is discussed below.

In order to have information about the factors influencing this indicator, the financial manager necessarily considers the cycle duration of the components of current assets. Their duration (except for cash) is summed up.

This is how the cost cycle indicator is obtained. The longer it is, the more financial sources the company directs into circulation. They accumulate in it.

The faster the cost cycle occurs, the more funds are released from circulation. They can be used more constructively.

General formula

The calculation of the ratio or assets has a general form. This is explained by the identical indicator with which one or another item of property or capital is compared. The formula looks like this:

Cob = Calculation Base / Asset (or Liability).

The turnover ratio, the formula of which is used by the financial services of enterprises, assumes to take into account the average annual value of the indicator. Only the graded article changes. The numerator of the formula is also selected depending on the coefficient under study.

When considering accounts receivable, advance payments with buyers, their average annual value is compared with the proceeds from sales. If the rate of turnover of debt on loans and advances to suppliers is calculated, the cost price acts as the calculation base. She also participates in the consideration of indicators of turnover of finished products, work in progress.

The inventory turnover ratio, the formula of which corresponds to the above methodology, takes material costs as a base.

Financial statements

To determine the indicators of business activity, the data of the financial statements are used. The denominator is found according to Form No. 1 "Balance", and the numerator is found according to Form No. 2 "Profit and Loss Statement". The asset turnover ratio, the formula of which was considered above, according to the reporting, has the following form:

Cob = s. 2110 (form 2) / s. 1600 wed. (form 1).

To determine the turnover ratio of current assets, the data of line 1200 of the balance sheet is taken into the denominator. The indicator that determines the turnover of permanent assets in the previous formula applies the data reflected in item 1150 of the balance sheet.

V general view the calculation of the turnover of current liabilities looks like this:

Kotp = s. 2110 (form 2) / s. 1300 Wed (form 1).

If investors need to estimate the speed of movement in the presented methodology, the amount s is applied. 1500 and p. 1400. To calculate the turnover of debtors' debts, the data from p. 1230, and stocks - the sum of s. 1210 and c. 1220.

Stocks

When assessing the movement of stocks, it is more expedient to use a method that shows the result in days. This is one of the most important characteristics that the finance department determines. There should be enough stocks so that the production cycle runs without interruptions and interruptions. But materials should not accumulate, "freeze" in current assets companies.

The inventory turnover ratio, the formula of which was considered earlier, allows you to determine the period in days:

Tz = Material costs / Inventories (avg.) * 360.

If the reporting period takes a different number of days, its duration is taken into account. In general, the amount of sales proceeds is used in the numerator for the calculation. But when it comes to stocks, their movement is determined by the amount of material costs.

To optimize the indicator and speed up the cycle, it is necessary to reduce the amount of “dead” inventory that is not purchased with each new operating period.

Accounts receivable, finished goods

The turnover ratio, the calculation formula of which examines such current assets as receivables and finished goods, is also of interest to analysts. If a significant amount of funds accumulates in these balance sheet items, this negatively affects the work of the company. If, after the analysis carried out, a too long period of turnover of debts of debtors is determined, it is necessary to change the system of settlements with buyers.

Perhaps you should switch to an advance, non-cash type of payment. The amount of bad debt is also determined.

If the enterprise accumulates a significant amount of finished goods and work in progress, the sales system is revised, equipment is modernized.

Current assets

The duration of the periods of turnover of balance sheet items is added up. This allows you to assess the efficiency of the operation of the company's property. In general, the mobile resources of the company allows you to study the turnover ratio of working capital (the formula was presented earlier).

The increase in the duration of the cost cycle has a negative impact on a number of other indicators. Increases when its absolute value decreases. The return on equity is also decreasing. In this case, a whole system of measures is being developed to optimize the structure of the company's property.

Accounts payable

Analysts are looking at more than just the speed of an organization's asset cycle. They also investigate the capital turnover ratio (the formula was considered earlier). This methodology shows how many times during the operating period the company settles with creditors for its obligations.

Therefore, for the calculation, it is the current debt that is taken into account. Often, an enterprise with a large amount of receivables determines a significant number of current liabilities. This is a negative trend. Such an organization is limited in its ability to attract borrowed capital, acquire materials, resources for production on credit. By optimizing the structure of assets, it is possible to improve the liabilities indicators.

Economic effect

A special place in the financial and economic analysis is occupied by the turnover ratios. Balance formulas allow you to find factors constraining development. A qualitative assessment of business activity makes it possible to determine how effectively a company conducts its business activities.

All indicators obtained during the analysis are reviewed in dynamics and compared with similar coefficients of competing companies. If the turnover ratio, the formula of which allows you to assess the structure of the balance, decreases, the cycle period is accelerated. At the same time, the organization expands its sales markets, it has regular suppliers and customers. This is a competent commercial policy of the enterprise.

The acceleration of the turnover period indicates a simultaneous increase in the return on capital. The company uses its assets efficiently. Therefore, the presented system of indicators is necessarily analyzed by the financial service of the organization.