4. Assessing the impact of changes in turnover on the profit of the Belgorod district police department

For objective management of enterprise assets and informed management decision-making when planning current activities, it is important to assess the influence of the main factors on the increase in financial results and profitability.

The economic effect as a result of accelerating capital turnover is expressed in the relative release of funds from circulation, as well as in an increase in the amount of profit from sales.

To assess the impact of capital turnover and average annual capital balances on sales profit, a factor model (1) is used:

P= R PR ×K OB ×OK (1)

Where P is profit from sales;

R PR - profitability of sales;

KOB - capital turnover ratio;

OK - average annual working capital balances.

Based on this formula, the calculation of the impact of capital turnover on changes in profit is as follows (2):

∆P OK = P PR ×(K OBo - K OBb)×OK b (2)

Based on this formula, the calculation of the influence of average annual working capital balances on changes in profit is as follows (3):

∆P OK = P PRb × K OBb ×(OK b -OK o) (3)

Let us determine the impact of the value of current assets on the increase in sales revenue and present the results in Table 8

Table 8

The impact of changes in capital turnover on the revenue of the Belgorod Regional Pool for 2007-2009

Thus, the decrease in working capital turnover reduced revenue by 703 thousand rubles.

Based on the data in Table 5, the influence of the turnover indicators of the average annual capital balances of the Belgorod Regional Pool on the change in sales profit was calculated and presented in Table 9.

Table 9

The influence of turnover indicators of the Belgorod Regional Pool on profit for 2008-2009

According to Table 8, in 2009, the greatest impact on sales profit was from the acceleration of inventory turnover and accounts receivable. The decrease in capital productivity reduced profits by 34 thousand rubles. the influence of average annual balances is insignificant. This suggests that the intensive factor of growth in sales profit predominates. Based on this, we can conclude that it is necessary to control the turnover of receivables and inventories, since these factors have the greatest impact on changes in sales profit.

Accelerating the turnover of working capital reduces the need for them, allowing enterprises to free up part of their working capital either for the needs of the national economy (absolute release) or for additional production (relative release).

As a result of the acceleration of turnover, material elements of working capital are released, less reserves of raw materials, supplies, fuel, work in progress reserves, etc. are required, and therefore, monetary resources previously invested in these reserves and reserves are also released. The released monetary resources are deposited in the current account of enterprises, as a result of which their financial condition improves and their solvency is strengthened.

In order to really assess the positive and negative aspects of changes in turnover, it is necessary to calculate the amount of funds released or attracted. acceleration of turnover indicates a reduction in the need for working capital, and a slowdown requires the attraction of additional funds.

An analysis of the economic effect from changes in the capital turnover of the Belgorod Regional Pool for 2007-2009 is presented in Table 10

Table 10

The economic effect of changes in the turnover of the Belgorod Regional Pool for 2007-2009

In 2008, an acceleration of capital turnover by 3% contributed to the release of 4,565 thousand rubles from turnover. in 2009, capital turnover slowed down by 11%. This contributed to the involvement of an additional 121.1 thousand rubles into turnover.

This has a negative impact on the results of the enterprise’s activities, since it means a reduction in the profits of the Belgorod Regional Pool.

Based on the analysis of the relationship between capital turnover and enterprise profit, it was revealed that the acceleration of inventory and receivables turnover had the greatest impact on sales profit. In general, asset turnover slowed down, which suggests that additional funds in the amount of 121.1 thousand rubles were involved in turnover. The capital productivity of fixed resources has also decreased. Intensive factors for the growth of sales profits predominate; on this basis, we can conclude that it is necessary to control the turnover of receivables and inventories, since these factors have the greatest impact on changes in sales profits.

It is necessary to take measures to increase the capital turnover of the Belgorod Regional Pool in order to release additional resources from circulation and increase profits.

Reserves for accelerating capital turnover

Accelerating capital turnover is a top priority for enterprises. During the analysis, it was revealed that the turnover of receivables and inventories had the greatest impact on the profit of the Belgorod Regional Pool in 2009. The reduction in profits is facilitated by a decrease in the capital productivity of fixed assets and the turnover of working capital in general.

The efficiency of capital use depends on many factors, which can be divided into external ones, which have an impact regardless of the interests of the enterprise, and internal ones, which the enterprise can and should actively influence. External factors include such as the general economic situation, tax legislation, conditions for obtaining loans and interest rates on them, the possibility of targeted financing, participation in programs financed from the budget. These and other factors determine the framework within which an enterprise can manipulate the internal factors of the rational movement of working capital.

At the present stage of economic development, the main external factors affecting the state and use of capital include such as the crisis of non-payments, high taxes, and high bank loan rates.

The crisis in the sales of manufactured products and non-payments lead to a slowdown in capital turnover. Consequently, it is necessary to produce products that can be sold quickly and profitably, stopping or significantly reducing the production of products that are not in current demand. In this case, in addition to accelerating turnover, the growth of accounts receivable in the assets of the enterprise is prevented.

At the current rate of inflation, it is advisable to direct the profit received by the enterprise, first of all, to supplement working capital. The rate of inflationary depreciation of working capital leads to an underestimation of costs and their flow into profit, where working capital is dispersed into taxes and non-productive expenses.

Significant reserves for increasing the efficiency of capital use lie directly in the enterprise itself. For the Belgorod District Pool, such reserves are

At the stage of creating inventories, these may be:

Introduction of economically feasible stock standards;

Bringing suppliers of raw materials, semi-finished products, components, etc. closer to consumers;

Widespread use of direct long-term connections;

Expansion of the warehouse system of logistics, as well as wholesale trade in materials and equipment;

Integrated mechanization and automation of loading and unloading operations in warehouses.

At the work in progress stage:

Acceleration of scientific and technological progress (introduction of advanced equipment and technology, especially waste-free and low-waste, robotic complexes, rotary lines, chemicalization of production);

Development of standardization, unification, typification;

Improving forms of trade organization;

An important indicator of the intensity of use of working capital is the speed of their turnover. Working capital turnover is the duration of one complete circulation of funds, starting with the first and ending with the third phase. The faster working capital goes through these phases, the more products an enterprise can produce with the same amount of working capital.

In different economic entities, the turnover of working capital is different, as it depends on the specifics of production, conditions for selling products, the solvency of the enterprise, on the features in the structure of working capital and other factors.

The turnover rate of working capital is calculated using three interrelated indicators: the duration of one turnover in days, the number of turnovers per year (six months, quarter), as well as the amount of working capital per unit of products sold. The calculation of working capital turnover can be carried out both according to plan and actually.

The planned turnover can be calculated only for standardized working capital, the actual turnover can be calculated for all working capital, including non-standardized ones. A comparison of planned and actual turnover reflects the acceleration or deceleration of the turnover of standardized working capital.

When turnover accelerates, working capital is released from circulation; when it slows down, there is a need for additional involvement of funds in turnover. The duration of one revolution in days is determined based on formula 1.

O = Co: (T: D), (1)

or formula 2.

O = (Co × D) : T (2)

where O is the duration of one revolution, days;

Сo - average annual working capital balances, rub.;

T - volume of commercial products (at cost), rub.;

D - number of days in the reporting period

The turnover ratio shows the number of turnovers made by working capital per year (six months, quarter), and is determined by formula 3.

Ko = T: Co, (3)

where Ko is the turnover ratio, i.e. number of revolutions.

The working capital utilization ratio is an indicator inverse to the turnover ratio. It characterizes the amount of working capital per unit (1 rub., 1 thousand rub., 1 million rub.) of sold products, calculated according to formula 4.

Kz = Co: T, (4)

where Kz is the working capital load factor.

This indicator may indicate rational, efficient or, conversely, ineffective use of working capital only in comparison over a number of years and based on the dynamics of the coefficient. Turnover can be general or private. General turnover characterizes the intensity of use of working capital as a whole for all phases of the circulation, without reflecting the characteristics of the circulation of individual elements or groups of working capital. The overall turnover indicator seems to neutralize the process of improving or slowing down the turnover of funds in individual phases. Accelerating the turnover of funds at one stage can be minimized by slowing down the turnover at another stage and vice versa.

The second turnover indicator - the number of turnovers made by working capital during the reporting period (turnover ratio) can be obtained in two ways:

1) sales of products minus value added tax and excise taxes to the average balance of working capital, i.e. according to formula 5.

OR = P/CO, (5)

where СО - number of revolutions

P - sales of products

CO - average balance of working capital

2) the number of days in the reporting period to the average duration of one revolution in days, i.e. according to formula 6.

HO = B/P (6)

B - number of days in the reporting period,

P is the average duration of one revolution in days.

The third indicator of turnover (the amount of employed working capital per 1 ruble of products sold - this is the working capital load factor) is determined in one way as the ratio of the average balance of working capital to the turnover of product sales for a given period, i.e. according to formula 7.

This figure is expressed in kopecks. It gives an idea of ​​how many kopecks of working capital are spent to obtain each ruble of revenue from product sales.

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

The annual turnover is most often calculated.

When the turnover of working capital slows down, additional involvement in turnover occurs; when it accelerates, working capital is released from circulation. The amount of working capital released as a result of accelerated turnover or additionally attracted as a result of a slowdown is determined as the product of the number of days by which 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.

Accelerating the turnover of working capital is achieved through the introduction of new equipment, advanced technological processes, mechanization and automation of production into production. Such measures help to reduce the duration of the production cycle, as well as increase the volume of production and sales of products.

To speed up turnover, the following are important: rational organization of logistics, sales of finished products, adherence to savings in production costs for the sale of products, the use of forms of non-cash payments for products that help speed up payments, etc.

To study the reasons for changes in the rate of turnover of funds, consider the indicators of general turnover and indicators of private turnover. They relate to certain types of current assets and give an idea of ​​the time spent by working capital at various stages of their circulation. These indicators are calculated in the same way as inventories in days, but instead of the balance (inventory) on a certain date, the average balance of a given type of current asset is taken.

Partial turnover shows how many days on average working capital is in a given stage of the circulation. For example, if the private turnover of 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 to the moment they are used in production.

As a result of summing up the indicators of private turnover, we will not obtain an indicator of total turnover, since different denominators (turnovers) are taken to determine indicators of private turnover. These indicators make it possible to establish what influence the turnover of individual types of working capital has on the indicator of total turnover.

In analytical practice, the inventory turnover indicator is used. The number of turnovers made by inventories for a given period is calculated using the following formula:

Proceeds from the sale of products, works and services (minus value added tax and excise taxes) are divided by the average value under the item “Inventories” of the 2nd asset section of the balance sheet.

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. For example: equity capital turnover is calculated using the following formula:

Product sales turnover for the year (minus value added tax and excise taxes) is divided by the average annual cost of equity capital.

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

This indicator characterizes the efficiency of using funds invested in the development of the Technopark OJSC enterprise. It reflects the number of turnovers made by all long-term sources during the year.

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

If the financial breakthroughs of the enterprise, Technopark OJSC are covered by unstable sources of funds, on the date of reporting it is solvent and may even have free funds in bank accounts, but financial difficulties are expected in the near future. Unsustainable sources of working capital available on the 1st day of the period, the balance sheet date, but absent on dates within this period include: non-overdue debt for wages, contributions to extra-budgetary funds (above certain sustainable values); unsecured debt to banks for loans against inventory items; debt to suppliers for accepted payment documents, the payment terms of which have not yet arrived; in excess of amounts attributed to sustainable sources; debt to suppliers for supplies; arrears of payments to the budget in excess of amounts attributed to sustainable sources of funds.

It is necessary to draw up a final calculation of financial breakthroughs, i.e. unjustified expenditure of funds and sources to cover these breakthroughs.

Based on the above, we can conclude that an important indicator of working capital is the speed of their turnover. When comparing planned and actual turnover, you can see the acceleration or deceleration of the turnover of normalized working capital.

When the turnover of working capital slows down, they are additionally involved in turnover.

When turnover accelerates, working capital is released from circulation, i.e. An organization can produce more products with the same amount of working capital or the same volume of production with a smaller amount of working capital.

The economic effect as a result of accelerated turnover is expressed in the relative release of funds from circulation, as well as in an increase in the amount of revenue and profit.

The amount of funds released from circulation due to acceleration (-E) or additionally attracted funds into circulation (+E) when the turnover of current assets slows down is determined by the following formula:

t=41 src="images/referats/24337/image007.png">

(turnover period of current assets of the reporting year – turnover period of the previous year) (1)

Let's calculate the economic effect for 2005:

. (27.40-22.22) = + 7042.78 thousand. rub.

The duration of the operating and financial cycles is of great importance when analyzing business activity (Table 3)

Table 3 Calculation and dynamics of turnover indicators

The table shows that in the period under review there is a decrease in the turnover ratios of receivables, inventories and accounts payable, as a consequence of an increase in the duration of turnover.

A decrease in the inventory turnover ratio and an increase in the duration of inventory turnover indicates a slow turnover of goods or a decrease in demand. In general, the lower the inventory turnover rate, the more funds are tied up in this least liquid item, the less liquid the working capital structure is, and the less stable the financial position of the enterprise. The organization is interested in reducing the turnover period of inventories and receivables and increasing the turnover period of accounts payable in order to reduce the turnover period of working capital.

It is beneficial for the financial condition of an enterprise to receive a deferred payment from suppliers, employees of the enterprise, or the state, since a deferred payment provides an additional source of financing. It is unfavorable to freeze part of the funds in reserves and provide deferred payments to customers. This creates the need for financing for the enterprise. The accounts receivable turnover ratio decreases due to an increase in the amount of accounts receivable. The decrease in the inventory turnover ratio was influenced by an increase in the amount of inventories and costs. As a result, the duration of the business cycle increases by 15.38 days. The decrease in the accounts payable turnover ratio is caused by an increase in the amount of accounts payable to a greater extent than the increase in cost. The duration of the financial cycle in 2005 has a value of 16.56, but in 2006 it increases by 15.38.

The determination of effectiveness begins with the establishment of criteria, i.e. the main feature of performance assessment, revealing its essence. The meaning of the production efficiency criterion follows from the need to maximize the results obtained or minimize the costs incurred based on the set development goals of the enterprise.

The financial position of an enterprise is directly dependent on how quickly funds invested in assets are converted into real money.

The duration of funds being in circulation is determined by the cumulative influence of a number of multidirectional factors of an external and internal nature. The first should include the sphere of activity of the enterprise (production, supply and sales, intermediary, etc.), industry affiliation, size of the enterprise. The economic situation in the country has a decisive influence on the turnover of an enterprise's assets. The severance of economic ties and inflationary processes lead to the accumulation of reserves, which significantly slows down the process of turnover of funds. Internal factors include the pricing policy of the enterprise, the formation of the asset structure, and the choice of methodology for valuing inventory.

Current assets represent part of the advanced capital. Its cost includes inventories, work in progress, finished goods, accounts receivable and cash. Here, first of all, everything that is connected with labor is reflected - objects, means, payment. It is in the interests of the enterprise to organize work using collective funds in the most rational way, since its financial condition directly depends on this. The system of working capital turnover indicators is based on two interrelated financial ratios: the coefficient of the duration of one turnover and the turnover ratio, which characterize the efficiency of using working capital. The latter affects business activity, capital productivity and also the profitability of assets or activities of the enterprise.

Asset turnover reflects how many times during a period the capital invested in the assets of the enterprise is turned over, i.e. it evaluates the intensity of use of all assets, regardless of the sources of their formation. On the other hand, it shows how much of the company’s revenue has cash invested in assets

A high turnover rate, as a rule, indicates the efficient use of capital and a favorable environment within the company: a low level of inventory reduces the risk of unsold products remaining in the warehouse. However, if the coefficient is significantly higher than the industry average, then there is a shortage of purchased goods and materials and, as a result, the risk of causing customer dissatisfaction.

The following are the general indicators of turnover of current assets of an enterprise:

1. The turnover ratio of current assets (turnover of current assets in times), which characterizes the rate of turnover of current assets and shows the number of turnovers made by current assets during the period, and is calculated using the formula:

Kob=VRn/OBsr,

where Kob is the turnover ratio of current assets; VRn - revenue (net) from sales; OBav - average balances of current assets for the period.

2. The average duration of one turnover of current assets (turnover of current assets in days), characterizing the duration of the turnover of current assets, showing the average time spent by current assets in the process of circulation in days and determined by the formula:

Toba=(OBav∙D)/VRn=OBav/VRd,

where Toba is the average duration of one turnover of current assets (in days); VRn - revenue (net) from sales; OBav - average balances of current assets for the period; D - number of days in the period; VRD - average daily revenue (net) from sales.

As can be seen from the above formulas, the turnover ratio and the average duration of one turnover of current assets are inversely proportional, i.e. The higher the turnover rate of current assets, the shorter its duration. In other words, the intensification of the use of current assets implies an increase in the first indicator and, accordingly, a decrease in the second.

3. The economic effect of changes in the turnover of current assets, which characterizes their release from circulation as a result of an increase in its speed or their additional attraction into circulation as a result of a slowdown in its speed and is calculated using the formula:

(+/-)E=(Toba1 - Toba0)∙VRd1,

where (+/-)E is the magnitude of the economic effect from changes in the turnover of current assets; Toba1 and Toba0 - the average duration of one turnover of current assets (in days) in the reporting and previous periods, respectively; ВРд1 - average daily revenue (net) from sales during the reporting period.

In this case, the following three situations may occur related to the value of the economic effect from changes in the turnover of current assets:

1.Toba1 < Тоба0 >  E < 0, т.е. произошло высвобождение оборотных активов из оборота в результате повышения интенсивности их использования.

2.Toba1>Toba0>E>0, i.e. There was an additional attraction of current assets as a result of a decrease in the intensity of their use.

3.Toba1=Toba0>E=0, i.e. there was no release or additional attraction of current assets into circulation, since the intensity of their use remained at the same level.

The release of current assets from circulation should be considered as a positive phenomenon, since a smaller amount of them began to be required to ensure a given level of current activity of a commercial organization; additional attraction of current assets in turn - as a negative phenomenon, since in order to ensure a given level of current activity of a commercial organization, their a large amount.

Bibliographic link

Turnover ratios (business activity ratios) - a group of coefficients showing the intensity of use of assets or liabilities. The main turnover ratios are:

Relative indicators of business activity (turnover) characterizing the efficiency of using the organization's resources are turnover ratios. The average value of indicators is defined as the chronological average for a certain period (based on the amount of available data); in the simplest case, it can be defined as half the sum of indicators at the beginning and end of the reporting period.

All coefficients are expressed in times, and the duration of the turnover is in days. These indicators are very important for the organization. Firstly, the size of the annual turnover depends on the speed of funds turnover. Secondly, the size of the turnover, and, consequently, the turnover rate is associated with the relative value of production (circulation) costs: the faster the turnover, the less costs there are for each turnover. Thirdly, the acceleration of turnover at one or another stage of the circulation of funds entails an acceleration of turnover at other stages. The financial position of an organization and its solvency depend on how quickly funds invested in assets turn into real money.

Let's look at the formulas for calculating the most common turnover ratios (business activity).

Asset turnover ratio

The turnover of funds invested in the organization’s property can be assessed:

• turnover rate - the number of turnovers that the organization’s capital or its components make during the analyzed period;
• turnover period - the average period during which funds invested in production and commercial operations are returned to the organization’s economic activities.

The asset turnover ratio reflects the degree of turnover of all assets at the disposal of the organization on a certain date and is calculated as the ratio of sales revenue to the average value of the organization's assets for the period.

Asset turnover ratio = Revenue / Average amount of assets in the period

Total capital turnover period (in days) = Duration of the reporting period (90, 180, 270 and 360 days) / Total capital turnover ratio

Balance formula:

Koa = page 010 f. No. 2 / ((p. 300-244-252)ng + (p. 300-244-252)kg f. No. 1) / 2

Koa = page 010 f. No. 2 / 0.5 x (line 300 at the beginning of the year + line 300 at the end of the year) f. No. 1

where ng - data at the beginning of the reporting year; kg - data at the end of the reporting period.

Balance formula since 2011:

Koa = line 2110 No. 2 / 0.5 x (line 1600 at the beginning of the year + line 1600 at the end of the year) f. No. 1

Current asset turnover ratio (current asset turnover)

This coefficient characterizes the turnover rate of all mobile devices of the enterprise:

Current assets turnover ratio = Revenue / Average annual value of current assets

Period of turnover of current assets (in days) = Duration of the reporting period / Turnover ratio of current assets

Kooa = page 010 f. No. 2 / (page 290 ng + page 290 kg f. No. 1) / 2

Kooa = line 2110 / 0.5 x (line 1200 at the beginning of the year + line 1200 at the end of the year)

The indicator characterizes the number of complete product circulation cycles in a period. Or how many monetary units of sold products brought in each monetary unit of assets. Or in other words, it shows the number of turnovers of one ruble of assets during the analyzed period.

This indicator is used by investors to evaluate the effectiveness of capital investments.

Capital productivity. Non-current assets turnover ratio

Capital productivity reflects the efficiency of use of the enterprise's fixed assets and is calculated using the formula:

Capital productivity = Revenue / Average annual cost of fixed assets

Fo = page 010 f. No. 2 / (page 120ng + page 120kg f. No. 1) / 2

Fo = line 2110 / 0.5 x (line 1150 at the beginning of the year + line 1150 at the end of the year)

Equity turnover ratio

The ratio shows the rate of turnover of equity capital or the activity of funds at risk to shareholders:

Equity turnover ratio = Revenue / Average equity capital

Equity turnover period (in days) = Duration of the reporting period / Equity turnover ratio

Kosk = page 010 f. No. 2 / ((pages 490-244-252+640+650)ng + (pages 490-244-252+640+650)kg f. No. 1) / 2

Kosk = page 010 f. No. 2 / (page 490ng + page 490kg f. No. 1) / 2

Kosk = line 2110 No. 2 / 0.5 x (line 1300 at the beginning of the year + line 1300 at the end of the year)

If this ratio is too high, then this means a significant excess of sales over invested capital, which entails an increase in credit resources and the possibility of reaching the limit when creditors are more involved in the business than owners. In this case, the ratio of liabilities to equity increases, the security of creditors decreases, and the company may have serious difficulties associated with a decrease in income. On the contrary, a low ratio means the inactivity of part of one's own funds. In this case, the coefficient indicates the need to invest one’s own funds in another source of income that is more appropriate to the given conditions.

It is useful to compare the values ​​of the equity turnover ratio with the values ​​for the same period operating capital turnover ratio. Functioning capital is the amount of own working capital that is constantly involved in turnover, i.e. the difference between own working capital and long-term accounts receivable along with overdue accounts receivable. The coefficient is calculated using the formula:

Operating capital turnover ratio = Revenue / Average operating capital for the period

By analyzing the values ​​of this coefficient, you can see a slowdown or acceleration in the turnover of capital directly involved in production activities. The resulting values ​​of this coefficient are cleared, in comparison with the indicator of total asset turnover, from the influence of enterprise investments that do not have a direct impact on sales volume, with the exception of investments in their own development.

Invested capital turnover ratio

The coefficient shows the turnover rate of the enterprise's long-term and short-term investments, including investments in its own development. The numerator is net sales revenue, the denominator is the average amount of invested capital for the period.

Invested capital turnover ratio = Revenue / (Average equity capital + Average long-term liabilities)

Turnover period of invested capital (in days) = Duration of the reporting period / Turnover ratio of invested capital

Kik = page 010 f. No. 2 / ((page 490ng + page 490kg)/2 + (page 590ng + page 590kg)/2) f.No.1

Kick = page 2110 No. 2 / (0.5 x (page 1300ng + page 1300kg) + 0.5 x (page 1400ng + page 1400kg))

The turnover of invested capital significantly depends on investment business processes in terms of making real and financial investments, as well as on the efficiency of operating activities in terms of using available resources. With an increase in investment activity and an intensive increase in property, turnover decreases, since newly acquired assets cannot immediately provide adequate returns in the form of revenue growth.

When analyzing these coefficients in dynamics, you can see how much faster or slower the capital that is temporarily withdrawn from production activities turns over in comparison with the capital involved in production. In a more detailed analysis, it is necessary to take into account the structure of invested capital.

Debt capital turnover ratio

Debt capital turnover ratio = Sales proceeds / Average debt capital

Debt capital turnover period (in days) = Duration of the reporting period / Debt capital turnover ratio

Kz = line 010 f. No. 2 / ((page 590ng + page 590kg)/2 + (page 690ng + page 690kg)/2) f.No.1

Kz = line 2110 No. 2 / (0.5 x (line 1500ng + line 1500kg) + 0.5 x (line 1400ng + line 1400kg))

Accounts receivable turnover ratio

The ratio shows the rate of turnover of receivables, measures the speed of repayment of the organization's receivables, how quickly the company receives payment for goods sold (work, services) from its customers:

Accounts receivable turnover ratio = Revenue / Average annual accounts receivable

Kodz = page 010 f. No. 2 / ((p. 240-244) ng + (p. 240-244) kg f. No. 1) / 2

Kodz = line 2110 / 0.5 x (line 1230 at the beginning of the year + line 1230 at the end of the year)

Accounts receivable turnover period ( accounts receivable turnover in days) characterizes the average repayment period of receivables and is calculated as:

Receivables turnover period = Duration of the reporting period / Code

When analyzing business activity, special attention should be paid to the turnover of receivables and payables, because these quantities are largely interrelated.

A decrease in turnover can mean both problems with paying bills and a more efficient organization of relationships with suppliers, providing a more profitable, deferred payment schedule and using accounts payable as a source of cheap financial resources.

Accounts payable turnover ratio

This is an indicator of how quickly an enterprise repays its debts to suppliers and contractors. The accounts payable turnover ratio shows how many times (usually per year) the company pays the average amount of its accounts payable, in other words, the ratio shows the expansion or reduction of commercial credit provided to the company:

Accounts payable turnover ratio = Revenue / Average annual accounts payable

Kokz = page 010 f. No. 2 / (page 620ng + page 620kg f. No. 1) / 2

Kokz = line 2110 / 0.5 x (line 1520 at the beginning of the year + line 1520 at the end of the year)

Accounts payable turnover period = Duration of the reporting period / Kokz

Accounts payable turnover period ( accounts payable turnover in days). This indicator reflects the average period for repayment of a company's debts (excluding obligations to banks and other loans).

Inventory turnover ratio (inventories and costs)

The indicator reflects the inventory turnover of the enterprise for the analyzed period:

Inventory turnover and cost ratio = Cost / Average annual cost of inventory

Komz = page 020 f. No. 2 / ((page 210+220)ng + (page 210+220)kg f. No. 1) / 2

Komz = line 2120 / 0.5 x ((line 1210 + line 1220)ng + (line 1210 + line 1220)kg)

Cash turnover

The indicator indicates the nature of the use of funds in the enterprise:

Cash turnover ratio = Revenue / Average cash

Codes = page 010 f. No. 2 / (page 260ng + page 260kg f. No. 1) / 2

Codes = line 2110 / 0.5 x (line 1250 at the beginning of the year + line 1250 at the end of the year)

Cash turnover indicators characterize the speed of transformation of assets into cash, as well as the speed of repayment of liabilities; indicators reflect the degree of business activity and operational efficiency of the organization.

Economic effect as a result of accelerated turnover

The economic effect as a result of accelerated turnover is expressed in the relative release of funds from turnover, as well as in an increase in the amount of profit. The amount of funds released from circulation due to acceleration (-E) or additionally attracted funds into circulation (+E) when turnover slows down is determined by multiplying the one-day sales turnover by the change in the duration of the turnover:

E = (Actual revenue/Days in the period) * ΔReb

ΔDeb = Deb 1 - Deb 0

Pob = (Ost * D) / Revenue from sales of products

Where,
D - the number of calendar days in the analyzed period (year - 360 days, quarter - 90, month - 30 days);
Ost - the average annual value of working capital;
Reb 1 - duration of one revolution in the reporting period;
Reb 0 - duration of one revolution in the previous period.