own asset negotiable solvency

Own current assets are involved in assessing the financial condition of the enterprise. The presence of own working capital is one of the important indicators of the financial stability of the organization. The absence of SOS indicates that all the working capital of the organization and, possibly, part of the non-current assets (with a negative value of own working capital) are formed from borrowed sources. Improving the financial position of the enterprise is impossible without effective management of working capital, based on identifying the most significant factors and implementing measures to increase the security of the enterprise with its own working capital.

The financial position of the enterprise can be assessed from the point of view of the short and long term. In the first case, the criteria for assessing the financial position are the liquidity and solvency of the enterprise, i.e. the ability to timely and in full make settlements on short-term obligations.

The liquidity of an asset is understood as its ability to be transformed into cash, and the degree of liquidity is determined by the duration of the time period during which this transformation can be carried out. The shorter the period, the higher the liquidity of this type of assets.

Speaking about the liquidity of an enterprise, they mean that it has working capital in an amount theoretically sufficient to repay short-term obligations, even if they do not meet the maturity dates stipulated by contracts.

Solvency means that the enterprise has cash and cash equivalents sufficient to pay for accounts payable requiring immediate repayment. Thus, the main signs of solvency are: a) the presence of sufficient funds in the current account; b) the absence of overdue accounts payable.

The amount of own working capital. It characterizes that part of the company's own capital, which is the source of coverage of its current assets (ie, assets with a turnover of less than one year). This is a calculated indicator that depends both on the structure of assets and on the structure of sources of funds. The indicator is of particular importance for enterprises engaged in commercial activities and other intermediary operations. Ceteris paribus, the growth of this indicator in dynamics is regarded as a positive trend. The main and constant source of increasing own funds is profit. It is necessary to distinguish between "working capital" and "own working capital". The first indicator characterizes the assets of the enterprise (section II of the balance sheet asset), the second - the sources of funds, namely the part of the enterprise's own capital, considered as a source of coverage of current assets. The value of own working capital is numerically equal to the excess of current assets over current liabilities. A situation is possible when the value of current liabilities exceeds the value of current assets. The financial position of the enterprise in this case is considered as unstable; immediate action is required to correct it.

Consider the main indicators and coefficients of SOS characterizing the solvency and liquidity of enterprises:

1) Own working capital- (reflects the sufficiency of permanent resources to finance permanent assets) SOS = SK-VA, page 490 - page 190 (form No. 1)

Own working capital is calculated as the value of the company's own funds minus non-current assets, and is an indicator of how much the company's working capital is formed from its own funds. The study of the dynamics of own working capital, both in absolute terms and in relation to the total value of assets, is a very important tool for financial analysis, since it allows the analyst to draw initial conclusions about the financial independence, solvency (liquidity) and efficiency of the enterprise.

If SOS > 0, then the enterprise has more permanent sources (resources) than it is necessary for self-financing.

If SOS< 0, then the source of coverage of fixed assets and non-current assets is short-term accounts payable. If the deadline for fulfilling obligations to creditors comes, and the indicator SOS does not change, then either the attraction of borrowed funds or the sale of fixed assets and non-current assets (and they, in turn, are among the slowest and most difficult to sell) will be required.

Therefore, the financial position of the enterprise is unstable and urgent measures are required to correct it.

2) Financial indicator F1- (used to characterize the liquidity of the enterprise) F1 = SOS- p. 210 - p. 220 (form No. 1)

If F1< 0 , this means a lack of own working capital ( SOS) for the formation of stocks of the enterprise, which is a negative indicator for the activities of the enterprise (periodic lack of funds for urgent needs, violation of solvency, etc.)

If F1 > 0, this means the sufficiency of own current assets ( SOS) for the formation of reserves, which is a positive moment for the activity of the enterprise (the enterprise has enough funds necessary for business development).

If F1 = 0, then the enterprise develops a situation in which all own current assets ( SOS) materialized in inventory for production. The extent to which such a policy is correct can be judged by the final indicators of financial and economic activity for the reporting period.

3) The most generalizing absolute indicator of financial stability is the surplus or lack of sources of funds for the formation of reserves and costs, i.e. the difference between the value of sources of funds and the value of stocks and costs. This refers to the provision of sources of own and borrowed funds, with the exception of accounts payable and other liabilities.

Depending on the ratio of the values ​​of indicators of inventories, own working capital and other sources of formation of reserves, the following types of financial stability can be distinguished with a certain degree of conventionality:

Three indicators of the availability of sources of formation of reserves and costs correspond to three indicators of the availability of reserves and costs with sources of formation.

Table 1. Algorithm for calculating absolute indicators characterizing various types of sources

It is possible to distinguish 4 types of financial situations:

1. Absolute financial independence. This type of situation is extremely rare and represents an extreme type of financial stability.

2. Normal independence of the financial condition, which guarantees solvency.

3. An unstable financial condition, associated with a violation of solvency, but in which it is still possible to restore balance by replenishing sources of own funds, by reducing accounts receivable, accelerating inventory turnover.

4. Crisis financial condition, in which the company is completely dependent on borrowed sources of financing. Equity capital, long-term and short-term loans and borrowings are not enough to finance working capital, that is, replenishment of stocks comes at the expense of funds generated as a result of slowing down the repayment of accounts payable.

4) The relative indicator characterizing the security of the enterprise SOS is the coefficient of the enterprise's security with its own working capital (Koss).

koss = SOS / OA

It is defined as the ratio of own working capital to the value of current assets of the enterprise (p. 490 - p. 190): p. 290. Equity in turnover is calculated as the difference between the organization's own capital and its non-current assets (p. 490 - p. 190) .Standard value Koss = 0.1

This method of assessment is considered quite tough, since it is customary in the world to qualify any financial ratios as unsatisfactory if they turn out to be worse than the industry average values ​​of the corresponding ratios. In Russia, when the entire industry may be in financial crisis, it is reasonable to compare the financial ratios of an enterprise with the same ratios of financially healthy open companies in the industry, whose shares in real terms do not fall in price on the stock market - or at least fall no faster than the price index declines. the entire stock market.

From the above, it follows that:

it is necessary to clearly distinguish between the state of insolvency, which can be established by the Federal Service of the Russian Federation for Insolvency (Bankruptcy) and Financial Recovery, and the state of bankruptcy, which can only be recognized by a court that takes into account all the circumstances of the case;

Critical factors for assessing the solvency (bankruptcy) of organizations are not so much values ​​such as the current liquidity ratio, commensurate with the current assets and borrowed current liabilities of the organization, but:

the ratio of the total debt to the entire balance sheet or market (liquidation) value of the company's assets;

the ratio of accounts payable for current and future payments (including taxes) and receivables for completed orders;

the same for overdue accounts payable and receivable. The recommended approach should prevent false conclusions about insolvency and even more so bankruptcy of enterprises in the context of the ongoing crisis of mutual non-payments in the economy, which especially affects organizations and enterprises specializing in the execution of long-term contracts of the contract type.

4) The coefficient of maneuverability of own working capital.

The maneuverability coefficient characterizes what share of equity sources is in a mobile form and is equal to the ratio of the difference between the sum of all sources of equity and the cost of non-current assets to the sum of all sources of equity and long-term loans and borrowings.

The coefficient shows what part of the volume of own working capital (in the special literature they are sometimes also called functioning, or working, capital) falls on the most mobile component of current assets - cash. It is determined by the ratio of the value of the amount of cash to the value of own working capital (the difference between current assets and liabilities).

When using this coefficient in economic analysis, it is necessary to remember its limitations. In the conditions of the Russian economy, which is still far from stable (stability should be understood primarily as the presence of stable legal and economic conditions: the regulatory framework, tax mechanism, price proportions, etc.), this coefficient should be treated with great caution. Only as normal, due to the specifics of the type of activity under consideration, structural relationships and proportions in property and sources of financing develop in stable conditions, this indicator will begin to acquire analytical value. First of all, it will act as an indicator of changes in the conditions for the receipt of funds and their expenditure.

The formula for calculating the coefficient of maneuverability of own working capital:

CmanSOS = SOS/SC

(P. 490 - P. 190 + P. 5 10) /P. 490 f1

It is believed that the optimal value of this indicator may approach 0.5.

5) The share of own working capital in covering stocks

This indicator characterizes that part of the cost of inventories, which is covered by own working capital, and also traditionally is of great importance in the analysis of the financial condition. The value of this coefficient must exceed the value 0,5.

Share of SOS_in_GZ = SOS/ZZ

where SOS - own working capital (p. 490 - p. 190), ZZ - stocks and costs (p. 210 + p. 220, second section of the balance sheet)

Cost price + others

RESULT

(-)

1/2 STEP - OWN NON-CURRENT AND CURRENT ASSETS

The postulate "Life is good." Purchased (or manufactured) goods are sold off the wheels. Demand exceeds supply. The businessman is happy. All stocks are being sold without a balance so far, there are no receivables, trading is only on the fact or in advance, as well as by appointment.

DDS

STEP 1 - DEFICIENCY OF OWN WORKING ASSETS

Postulate: “Greed is good. Greed is right. Greed exalts man. Greed pays off."

The entrepreneur is fed up with his fixed size of his business. He can earn more. To increase the turnover of the enterprise, it is necessary to increase working capital, it is also necessary to update fixed assets. Your own money is no longer enough, moreover, they have already been spent on non-current and current assets and are already in circulation. The fastest and easiest way is to increase current assets at the expense Borrowed capital across Deferred payment supplier. Short-term accounts payable appear on the balance sheet. Now a payment calendar should also appear - to control timely payments to suppliers for goods delivered on credit, so as not to delay payments.

AtEntrepreneur A wide choice of ways to increase the turnover of the enterprise. This can be not only a deferred payment from the supplier, but also bank loans, or loans from third parties, attracting a partner to the business. Risks at this stage are minimal, mistakes that can complicate the work of the enterprise and worsen the result have not yet been made.

STEP 2 - INCREASING COSTS WITH INCREASING TURNOVER

Postulate: "An increase in turnover always leads not only to an increase in revenue and profit, but also to an increase in costs." Those who are not ready to control, plan, minimize and limit them risk huge financial and economic problems. At this stage, budgeting should appear at the enterprise in order to accurately correlate income and expenses with each other and their receipt in time.

For an entrepreneur, with an increase in turnover, distribution costs increase: logistics costs. Appear: marriage, illiquid assets, regrading. The cash flow at the output begins to gradually decrease by the amounts arising from the increase in logistics costs, frozen in marriage, illiquid assets, regrading. The entrepreneur is not yet ready to make unpopular and cardinal decisions on this issue, all this hangs on the balance sheet. The markup exceeds the amount of losses, DDS remains positive.

DDS:

STEP 3 - ACCUMULATION OF COSTS, THE APPEARANCE OF RECEIVABLES

As the old man K. Marx used to say - "At the heart of any big capital lies a crime."

The basis of the movement of funds is another imperishable postulate:

"MONEY - PRODUCT - MONEY`". And this always assumes that the MONEY` is always greater than the MONEY per delta (markup). The size of the delta is almost equal to profit, minus costs.

Thus, an ideal deficit-free cash flow is obtained - i.e. cash flow, in which the outgoing cash flow is always greater than the incoming cash flow, and without attracting additional financing.

A business plan is being developed to increase the sales market. In order to keep regular customers, the entrepreneur begins to give goods for deferred payment, he has short-term receivables. A cash gap appears between the transfer of goods for sale and the receipt of money after its sale by debtors. To close the resulting gap, the entrepreneur is forced to take out loans. Non-current assets may also continue to increase. DDS is reduced and adjusted for the amount frozen in marriage, illiquid assets, regrading and receivables.

DDS:

STEP 4 – FORMATION OF A DEFICIENCY OF BORROWED CURRENT FACILITIES

Postulate: “Money, like drugs, can be fast or slow, cheap or expensive.”

The entrepreneur sits on the needle of borrowed funds and enjoys it for the time being. At this stage, with each new cycle at the enterprise, absolutely all indicators increase.

Stocks in the warehouse are increasing, but the quality of the purchase and assortment is decreasing due to the increase in the volume of deliveries.

The entrepreneur begins to give goods on a delay, including to unknown buyers. Due to competition in the market, old buyers have to cut prices. The markup ceases to cover the losses of the entrepreneur from freezing funds in current assets: stocks, marriage, illiquid assets, regrading, receivables. Uncollectible receivables appear due to the lack of analysis and monitoring of the financial condition of debtors.

One way to solve the problem of accounts receivable dramatically - Factoring. Of course, it is an effective solution to deal with cash gaps and receivables, and increases turnover. Some also offer receivables administration. But the effect of factoring will be short-lived. And it will be the same as if someone who is on heroin is planted with another cocaine. The short-term result will be positive, because the addition of fast expensive factoring money to slow cheap credit money will only have an effect in the short term - 1-2 quarters maximum. But it doesn't really solve the problem.

DDS:

STEP 5 - DEFICIENCY OF BORROWED WORKING ASSETS

Postulate: "When you sit down on drugs, the main thing is not to rush."

At this stage, the Enterprise is already an experienced drug addict. Sits on the needle of borrowed working capital. However, it works. The machine for the movement of money, goods and generation of losses is running at full speed. If the market conditions change and the trading margin falls, the risk of non-repayment of loans increases to at least 50%. It all depends on who and how will behave in this situation.

Part of the funds is frozen in non-liquid assets, marriage, regrading, part of the funds is frozen in receivables and bad receivables. The company has an increased demand for credit funds to replenish working capital due to their shortage.

In parallel with the increase in credit limits, another long overdue internal process begins - cost reduction. Since it is easiest to cut the one who is nearby, the process begins with a reduction in wages for staff.

This, in turn, leads to the formation of two parallel opposition movements in the collective. "Movement of staff in nature", which goes to other places, often with the same money. And "Movement to plunder the loot, or expropriation of expropriators in order to compensate for their losses on wages." In this movement, people so famously and with such fiction begin to rob the owner that you are simply amazed at the talent of our people. Moreover, if earlier this was done to increase their average revenues, sometimes not tied to the profits of the enterprise, now this is done for purely ideological reasons.

When the markup received from the sale, as well as borrowed funds, is not enough for timely settlements with suppliers and banks, there is a shortage of borrowed working capital, a liquidity crisis of the enterprise and a default. The curtain!!!

Communication between the client and the bank at this stage is not a spectacle for the faint of heart. They are more in places reminiscent of a conversation between the Huckster and the Drug Addict. The following words and expressions can be used by the borrower: "We'll take it at any interest!" will I be able to get this money?”, and finally - “What exactly do I need to do to get this money faster?”

An attempt to solve all the accumulated problems by obtaining new loans and refinancing old ones does not give any result.

DDS:

Diagnosis. Urgently required hospitalization and treatment in a drug treatment clinic at the place of residence.

Ways to treat dependence on borrowed working capital.

There is no panacea, but there are solutions that can reduce the intensity of passions.

1. In various banks, the calculation of the credit limit for replenishment of working capital may be limited to 50-70% of the average monthly turnover. This mechanism does not work because there are other banks with other methods, ready to give more or above. You can also negotiate with suppliers, also increase your lending limits. Factoring does not require collateral and current account turnover, but increases the overall debt burden of the company.

Only the enterprise itself can resolve this conflict with the total debt burden by limiting its borrowings. Banks can limit or cut limits after 1 month - after reviewing the quarterly reports, there are no more mobile and objective methods for monitoring the financial condition of the borrower. If the borrower made erroneous decisions or suffered losses in 1 month of the reporting quarter, the bank will be able to find out and document this only 3 months after the balance sheet is submitted. Agree, 3 months is a long time for the accumulation of mistakes and making new ones.

2. Do not attract short-term loans for solving long-term problems, such as opening new retail space, construction, acquisition of fixed assets. The logic of the borrower is simple - the easiest money to get is negotiable, so I invest my turnover in expansion, and cover the deficit with short-term loans.

There are even more exotic options for financing long-term investments. If the borrower cannot get an investment loan, including because of financial performance, then he takes short-term loans and will refinance them in time.

In my memory, both schemes led to technical defaults and borrower requests for rollover due to the mismatch of the financial cycle, project payback, and loan repayment terms. The second path more obviously ends with a default and a liquidity crisis at the enterprise.

3. The borrower must have its own full set of financial mechanisms for solving internal problems. Budgeting helps to control and plan income and expenses. But this is not enough. Internal directive documents of direct action are needed on the maximum value of marriage, illiquid assets, regrading with attributing it to the turnover of the enterprise. Accounts receivable should be clearly regulated in terms of terms, types and amounts. The financial condition of debtors must be monitored. When analyzing a borrower, banks often lose sight of the risk of non-return of receivables, which can only be realistically assessed by the borrower, including by involving the bank in the analysis of the debtor's balance sheet.

EPILOGUE.

Poverty and Wealth are like two different sides of the same coin. Poverty or lack of capital is the reason that pushes the entrepreneur to borrow to Wealth, and Wealth through borrowing capital and through the withdrawal of rent from circulation is the reason that leads to his Dependence on loans. Is there a golden mean in this vicious circle? I think no. No choice. Only loans. Unless, of course, there is a tight pocket with oil-gas-rubles or free government property. In extreme cases, there are also Colombian or Afghan investment funds, as well as Vladimir-Central mutual funds.

Business development always involves the reinvestment of earnings in order to increase the scale of the business, its turnover. Even if the goal is the subsequent sale of this business.

The game is always big. And when it comes to a growing market, or an increase in market share, there is nothing to do with a small or medium fixed equity capital. Therefore, the aphorism "you take - strangers and not for long, but you give - yours and forever" sounds very relevant in relation to our topic.

Working capital and working capital - can these concepts be considered identical? How do they affect the efficiency of the enterprise? If you didn’t find the answers to these questions, this article will help you understand the nuances that will make your business successful!

Working capital and their essence

Working capital of an enterprise is a combination of circulation funds and working capital assets. This allows them to serve not only the sphere of circulation, but also the sphere of production. This indicator may refer to the cost category, but it cannot be said that these funds act as a material value, because the production of finished products at their expense is impossible. But since they are value in monetary form, during their circulation they are able to take the form of work in progress, inventories, and even finished products. It should be understood the difference between working capital and the material assets of the enterprise - they are not consumed, not spent, not spent, but are advanced. I.e use of working capital assumes that after the end of one cycle of the circuit, they immediately enter the next circle.

The difference between working capital and working capital

Funds, working capital and circulation funds are indicators that exist in constant relationship. However, it should be noted that the task of working capital is reduced to a constant presence at all stages of the company's work, and working capital is present only at the stage of production, where they are completely consumed. That is, we can say that funds participate in the creation of new value only indirectly, while working capital directly affects its formation.

Classification of current assets

All funds can be classified within the following criteria:

1. By place and role in the production process current assets of the enterprise may be located:

In the field of circulation;
- in the field of production.

If we consider the structure and composition of working capital, then in this case we can understand how efficiently and rationally to place them in the sphere of circulation or production. If it is possible to achieve the optimal ratio of working capital in these two areas, then in this case we can say that the funds are used efficiently, and this, in turn, will have a positive impact on the business.

2. According to the degree of planning:

Normalized;
- non-standardized.

In domestic practice, such a concept as the rationing of working capital is known, that is, the process of establishing standards for their elements and determining the planned norms of stocks. As for non-standardized working capital, its size is usually determined promptly.

3. According to the sources of rationing:

Own;
- borrowed;
- involved.

Modern economic conditions in every possible way contribute to the fact that the enterprise could freely dispose of its working capital. They are at the disposal of the company, and its management can lease these funds, transfer them to other organizations, citizens, enterprises, institutions on the basis of permanent or temporary use.

Shortage of working capital and consequences for the enterprise

Today, the preservation of working capital of the enterprise is an urgent and important task for the head. How to determine their excess or deficiency? Working capital and their quantity illustrates the usual financial planning. To do this, it is important to make up the amount of the actual (expected) availability of own working capital. If the planned need is greater than the amount of the firm's own working capital, then in this case we can say that working capital is not enough for effective work. It is possible to fill their deficit just by attracting borrowed funds.

Sometimes the ratio is reversed, that is, the funds of the enterprise are in excess. This surplus can be used as a source to finance the increase in working capital.

Why can there be a lack of own funds? Sometimes the reasons are completely independent of the work of the enterprise. But, at the same time, the company itself may suffer excessive losses or carry out an illegal diversion of working capital, for example, in order to finance capital construction. Of course, economic conditions also play an important role in shaping the state of working capital. Thus, an increase in prices for inventory items purchased by enterprises leads to a shortage of their working capital on a large scale. In this case, a bank loan can become a source of replenishment, but in conditions of inflation it is provided only at high interest rates.

If we are already talking about how government policy affects the amount of working capital, we note that it can stimulate the production and financial activities of the company or hinder it. In the first case, the rational use of working capital can also be carried out. And not the last role in this process is played by the tax policy of the country. For example, attributing some tax payments to the cost of services, works or goods, advance payments of income tax or the specifics of paying VAT to the state budget cause a diversion of working capital that goes to non-production costs. In order to make up for the lack of own funds, enterprises begin to look for sources of their receipt: to take loans, violate financial discipline, etc. We can say that the lack of working capital in this case worsens the financial position of the company and reduces the efficiency of its work. That is why the organization of the firm's working capital necessarily includes such an item as systematic control over their safety and effective use. This is achieved by conducting audits, checking accounting and operational reporting, working with statistical data, etc.

Ways of formation of working capital of the enterprise

The funds should ensure the implementation of one important task - the movement at all stages of the circuit, due to which the needs of production in material and financial resources will be satisfied, the completeness of calculations and their timeliness will be ensured, which, in turn, will increase the use of working capital.

We have already talked about the important role of working capital in the work of the enterprise. This is especially true for firms operating on the basis of commercial calculation. In this case, they must have operational and property independence in order to be responsible for the decisions made and to operate profitably. The funds themselves are formed immediately after the organization of the company itself. The basis for their formation is the investment funds coming from the founders. Replenishment of own working capital throughout the entire period of operation of the company occurs with the help of profit and stable liabilities. The latter do not belong to the organization, but are constantly in its circulation. They are the source of the formation of working capital, or rather, their minimum balance. Sustainable liabilities can be represented by:

Reserve to cover future expenses;
- payroll arrears to employees;
- prepayment for goods or services;
- carry-over balances of the consumption fund;
- minimum carry-over debt on off-budget funds and the budget.

You can try to reduce the company's need for working capital, if there is a lack of them. At the same time, this will stimulate their more efficient use. To do this, they simply attract borrowed capital in the form of short-term bank loans to satisfy the company's temporary need for working capital.

Attracting loans for the formation of working capital can be carried out in the following areas:

Mediation and implementation of settlements on payment turnover;
- lending of materials, seasonal stocks of raw materials and expenses, the reason for which lies in the seasonal nature of production;
- temporary replenishment of the lack of working capital of the enterprise.

What do you need to know about working capital?

As you can see, the development of an enterprise is impossible without the use of working capital. That is why, their formation and use must be carried out only on the basis of a detailed analysis. Do not forget about this issue, paying attention only to marketing research or market research - it is important to investigate the processes of effective use of the internal reserves of the company. Together, this will certainly lead to an increase in profits and an increase in the position of the enterprise in the market!

The lack of own working capital arises if the value of the current standard exceeds the amount of own and equivalent funds. The lack of own working capital is, as a rule, the result of a shortfall in the planned profit or its illegal, irrational use and other negative factors that have arisen in the course of the organization's commercial activities. The lack of own working capital is covered at the expense of the organization itself, and first of all, a part of the net profit remaining at its disposal is directed to cover the shortcoming.
Borrowed funds in the sources of the formation of working capital in modern conditions are becoming increasingly important and promising. The main form of borrowed funds are short-term bank loans. They cover the organization's temporary additional need for funds. The attraction of borrowed funds is due to the nature of production, complex settlement and payment relations that arose during the transition to a market economy, the need to fill the lack of own working capital and other objective reasons.
Borrowed funds in the form of loans are used more efficiently than own working capital, as they make a faster turnover, have a strictly designated purpose, are issued for a strictly stipulated period, and are accompanied by the collection of bank interest. This encourages the organization to constantly monitor the movement of borrowed funds and the effectiveness of their use. Borrowed funds are attracted not only in the form of a short-term bank loan, but also in the form of accounts payable, as well as other borrowed funds, that is, the balance of funds and reserves of the organization itself, temporarily not used for its intended purpose.
The formation of accounts payable is associated, as a rule, with the unscheduled attraction of funds from other enterprises, organizations or individuals into the economic turnover of the enterprise.

50. Significance and ways to accelerate the turnover of working capital;

Working capital is constantly in motion.

At each point in time, the firm buys, produces, sells, buys again, and so on. This ensures the continuity and continuity of the production and sales process. The volume of working capital should be sufficient for the production of products in the range and quantity requested by the market, at the same time minimal, not leading to an increase in production costs due to excess stocks.

An important requirement for the successful conduct of the economy is the rational use of working capital. The rational use of working capital finds its manifestation in the acceleration of their turnover: the sooner the circulation is completed, the less working capital serves the production process.

The effectiveness of the use of working capital is measured by the indicators of their turnover. The turnover of working capital is understood as the duration of the successive passage of funds through the individual stages of production and circulation. The circulation of working capital ends with the transfer of proceeds to the account of an economic entity.

The turnover of working capital is not the same, which depends on industry affiliation, organization of production and marketing of products, placement of working capital and other factors.

Indicators of turnover of working capital are important for assessing the financial condition. In addition, an increase in the rate of turnover of working capital, other things being equal, increases the attractiveness of the company in terms of investment activity.

In accordance with the stages of the circulation of working capital, there are three directions for accelerating their turnover:

1. At the stage of production stocks:

Establishment of progressive norms for the consumption of raw materials, materials, fuel, energy;

Systematic check of stock status;

Proper accounting and planning of resources;

Replacing expensive types of material resources with cheap ones without compromising quality.

2. At the production stage:

Improving the quality of products;

Reducing production losses;

Integrated use of raw materials and the use of production waste;

Reducing the duration of the production cycle and increasing its continuity;

Compliance with the rhythm of work.

3. In the field of circulation:

Comprehensive supply of the company with raw materials and materials,

Organization of marketing research,

Reduction of receivables and payables,

Acceleration of product sales,

Improving the methods of payment for products.

51. Determination of the planned need for working capital under the article: “Work in progress

The production process must run continuously, and this is ensured by the presence of a permanent backlog in work in progress, i.e. the presence of constant stocks of unfinished products at different stages of its processing:

D-T...P...->T"-D"

For work in progress, the need for own working capital is calculated based on the product of two indicators:

Stock rates in days;

The values ​​of one-day costs for gross production.

The inventory rate in days for completed production depends on two indicators:

The duration of the production cycle;

Cost escalation factor.

The duration of the production cycle is measured by the time from the first technological operation to the complete manufacture of the product, its acceptance in the prescribed manner and transfer to the warehouse of finished products.

The duration of the production cycle is determined by the following factors:

The time of direct processing of the product, for this time, a technological reserve will be created;

The time of transportation of semi-finished products within the workshop, between workshops, as well as the time of transportation to the warehouse - for this time - the transport stock;

The time of accumulation of semi-finished products before the start of each next operation, for these purposes, a working stock is created;

The time spent by semi-finished products in stocks to ensure the continuity of the production process, in case of any failures, an insurance stock is created.

After the duration, the cost increase coefficient is calculated - the need to calculate the coefficient is due to the fact that the objects of labor necessary to create products, as well as other monetary costs, are not involved in production immediately, but in parts. Depending on the intensity of the increase in costs, the need for working capital will be different.

In this regard, there are different types of production:

1) with a uniform increase in costs (they increase equally);

2) with an uneven increase in costs;

3) with a mixed increase in costs (some increase evenly, some unevenly).

Depending on the sources of formation, working capital of enterprises is divided into own, which are part of the material and technical base of the enterprise, borrowed and attracted.

Own funds should ensure the property and operational independence of the organization, necessary to ensure efficient production activities. Own working capital indicates the degree of financial stability of the enterprise, its position in the financial market.

The initial formation of own funds occurs at the time of the establishment of the enterprise and the formation of its authorized capital. The source of own working capital at this stage is the funds of the founders.

In the future, with the development of entrepreneurial activity, own working capital is replenished at the expense of profits. The profit of the enterprise in the process of its distribution is directed to cover the increase in the standard of working capital. Own working capital is provided for permanent use by enterprises during their creation to ensure the minimum (within the limits) availability of raw materials, materials, other inventories, work in progress, finished products, investments in deferred expenses and others necessary for the implementation of the production program.

Borrowed funds

Borrowed sources of working capital are mainly short-term loans and borrowings. The main directions of attracting loans for the formation of working capital: lending to seasonal stocks of raw materials, materials and costs; temporary replenishment of the lack of own working capital; implementation of settlements and mediation of payment turnover.

A bank loan is provided exclusively in cash on terms of repayment, urgency, payment on the basis of loan agreements. The provision of a bank loan can be carried out in one of the following ways: issuing a one-time loan, opening a credit line, lending to the borrower's current account and other methods.

Factoring is a kind of bank lending operations and at the same time a way of financing the current activities of an enterprise.

When concluding a financing agreement against the assignment of a monetary claim, he transfers or undertakes to transfer funds to the other party (client), while the client, in exchange for these funds, cedes or undertakes to cede to the financial agent his monetary claim against a third party (debtor) arising from provision by the client to this person of goods, performance of work or provision of services.

Commercial credit is a form of mutual financing (crediting) of organizations (enterprises). It is a special payment procedure, an obligation from contracts for the sale of goods, the provision of services, the performance of work, etc. An agreement, the execution of which is associated with the transfer of money or other things defined by generic characteristics to the ownership of another party, may provide for a loan, in including in the form of an advance payment, prepayment, deferral and installment payment for goods, works, services.

A commercial loan is provided to the enterprise by suppliers in the form of a deferral or installment payment. The buyer provides a commercial loan to the supplier in the form of an advance payment or prepayment.

Involved funds

In addition to profit as its own source of replenishment of working capital, each enterprise has funds equivalent to its own. These are additionally raised funds that do not belong to the enterprise, but are constantly in circulation. Additional attracted and equated to own funds include: accounts payable, reserves of future payments, stable liabilities.

Sustainable liabilities are funds that do not belong to the enterprise, but are constantly in circulation and are used on completely legal grounds. Sustainable liabilities include:
- the minimum carry-over debt for wages, deductions to off-budget funds, which is due to a natural discrepancy between the accrual period and the date of payment of wages, transfer of mandatory payments;
- minimum debt on reserves to cover future expenses and payments;
- debts to customers for advance payments and partial payment (prepayment) for products;
- arrears to the budget for certain types of taxes, the accrual of which occurs earlier than the payment deadline.