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 using 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

Kik = 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 over time, 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 accounts receivable, measures the speed of repayment of an organization's accounts receivable, 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:

Accounts receivable 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.

The economic effect as a result of accelerating asset 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 is determined by multiplying the one-day sales turnover by the change in the duration of the turnover:

According to the Establishment “RCOP KSiK”, due to the acceleration of asset turnover by 23 days, there was a relative release of funds from turnover in the amount of 291.318 million rubles. ( ). If capital had turned over in 2008 not in 290 days, but in 313, as in 2007, then to ensure actual revenue in the amount of 4623 million rubles. it would be necessary to have in circulation not 3679 million rubles. current assets, and 3970 million rubles, that is, by 1269 million rubles. more.

3. WAYS TO IMPROVE THE FINANCIAL CONDITION OF THE RCOP KSiK Institution

An analysis carried out at the enterprise showed that the organization is in a financial condition that is far from ideal for normal functioning. This is largely due to small profits, low levels of profitability, and a large amount of long-term loans.

The organization is engaged in various types of activities (production, provision of services), one of which is agriculture, which occupies the most significant share in the structure of production. Despite its widespread development, unfortunately, agriculture in our country is, in most cases, unprofitable (regarding state-owned enterprises), especially in the livestock sector.

In the analyzed organization, the level of profitability for various types of activities is positive and quite high, and for agriculture – negative. The costs of producing livestock and crop products are high, and revenue is constrained by the level of purchase prices set by the state. In general, agricultural losses are covered by profits from other activities. However, the share of agriculture in the overall structure of production is very high (more than 50%) and even if losses are fully covered, profits remain low.

To solve this problem, it was decided to reduce agricultural production. In 2007, the livestock farm was closed and the entire livestock of cattle was sold. Every year, by a joint decision of the organization’s management and higher authorities, the area under cultivation is reduced, and more highly profitable crops are grown (rapeseed, sugar beets).

In the future, the management of the organization plans to completely stop agricultural activities. Thanks to this, according to economic calculations and business plans, the profitability of the organization will increase significantly, which will bring the commercial structure of the organization to a new level, the level of stable financial stability.

However, since agriculture is a real sector of the economy for our country and confidently occupies a large niche in the structure of the country’s economy, liberation from agriculture is completely impossible. In order to reduce the cost of agricultural production, it is necessary to carry out a number of measures:

Purchase of imported agricultural machinery, which is characterized by high productivity and lower consumption of fuels and lubricants, labor costs and more often requires repairs

Review the wage system, increase the share of incentive payments, carefully select workers, and draw up strict work schedules to prevent production downtime.

Taking into account the seasonal nature of production (the main work occurs in March-April, when sowing occurs, and July-August, when harvesting occurs), seasonally reduce workers while maintaining jobs.

Also, in order to make agricultural production profitable, it is necessary not to sell raw materials externally, but to establish processing production. Established government procurement prices apply to the sale of raw materials. However, when producing products from agricultural raw materials, their cost is included in the costs at the actual cost, which allows the costs to be reimbursed in full.

A stable financial condition is achieved with adequacy of equity capital, good quality of assets, a sufficient level of profitability taking into account operational and financial risk, adequacy of liquidity, stable income and ample opportunities to attract borrowed funds.

The study made it possible to make a number of proposals aimed at improving and restoring the financial condition of the enterprise. In order for RCOP KSiK to further increase its solvency, the management of the enterprise needs to take a number of measures to improve the health of the enterprise:

Based on the results of the analysis of the financial condition of RCOP KSiK, the following recommendations can be made to improve the financial status of the enterprise:

â if possible, reduce the enterprise’s debt, both receivables and payables: somewhat tighten the enterprise’s policy towards large debtors, freeing up funds, look for new sources of own funds to pay off accounts payable, without resorting to borrowed funds and without dragging the enterprise into a debt hole.

â control the status of settlements on overdue debts. In conditions of inflation, any deferred payment leads to the fact that the enterprise actually receives only part of the cost of the work performed, so it is necessary to expand the system of advance payments.

â strive to accelerate the turnover of capital, as well as to maximize its return, which is expressed in an increase in the amount of profit per ruble of capital. Increasing the return on capital can be achieved through the rational and economical use of all resources, preventing their overexpenditure and losses. As a result, the capital will return to its original state in a larger amount, i.e. with profit.

â the most efficient use of computer technology and the implementation of software most suitable for a given enterprise.

Thus, the above activities will help establish a stable financial condition of the “RCOP KSiK”, which is of undoubted interest for potential investors; for banks providing loans; for the tax service; for management and employees of the enterprise.

CONCLUSION

The study of the problems of development and improvement of the methodology for assessing financial condition in the conditions of the formation of a socially oriented market economy allowed us to draw the following main conclusions and proposals:

One of the conditions for the stable financial condition of an economic entity is the timely identification and implementation of on-farm reserves. To do this, it is necessary to reveal and study the underlying (primary) factors associated with taking into account the industry characteristics of the trading process, which determine the improvement of the financial and economic activities of the organization.

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 impact of changes in sales volume on turnover is defined as the difference between the conditional and basic turnover indicators, the impact of average working capital balances as the difference between the actual and conditional turnover indicator.

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.

By accelerating the turnover of working capital, material resources and the sources of their formation are released from circulation. The slowdown in turnover is characterized by the involvement of additional funds in turnover. A distinction is made between absolute and relative release of working capital. An absolute release occurs if the actual balances of working capital are less than the standard or the balances of the previous period when sales volumes are reduced or exceeded for the period under review.

In the case when the acceleration of turnover occurs simultaneously with an increase in the volume of output and at the same time the growth rate of production and sales volumes outstrips the growth rate of working capital balances, a relative release of working capital occurs.

A relative release of working capital also occurs when the duration of one turnover is reduced compared to the previous period or planning period. An increase in the duration of one revolution indicates an additional attraction of working capital into circulation.

The amount of funds released from circulation due to acceleration (-E) or additionally attracted funds into circulation (+E) during a slowdown in turnover is determined by multiplying the one-day sales turnover in the reporting period by the change in the duration of turnover for the analyzed period.

where RP is the volume of product sales in the reporting period;

D - number of days in the period;

ΔPOB - change in the duration of turnover in days.

To determine the influence of working capital turnover on changes in production volume, use the following relationship:

RP = BER x CO

The influence is determined by the method of chain substitutions or deviations:

Δ RP(OB) = ΔKOB x CO1,

where Δ RP(OB) is the change in production volume under the influence of working capital turnover;

ΔKOB - change in turnover ratio;

CO1 - average cost of working capital in the reporting period.

To analyze the impact of working capital turnover on changes in sales profit, you can use the following relationship:

ΔPr(OB) = PR0 x K(KOB) - PR0,

where ΔPr(OB) is the change in profit under the influence of turnover;

PR0 - profit from sales for the base period;

K(KOB) - coefficient of relative growth in the number of working capital turnover.

To determine the influence of working capital turnover on the profitability of an enterprise’s assets, the following relationship is used:

ΔPa(OB) = P0n x ΔKOB,

where ΔPa(OB) is the change in the profitability of the enterprise’s assets under the influence of turnover;

P0n - profitability of sales in the base period.

Along with determining the overall turnover rate of the entire set of current assets of an enterprise, the calculation of the weighted duration of turnover by type of current assets is of great practical importance.

In addition to the method of determining the need for working capital by the weighted duration of turnover, two more methods are used for calculation: directly by consolidation coefficients and by autonomous calculations of individual elements of current assets.

Using the above methodology, the use of all working capital, as well as their individual types, is analyzed. To do this, calculate private turnover indicators:

1 inventory turnover;

The economic effect of accelerating inventory turnover is expressed in the release of working capital, reducing the company's need for them due to improved use. A distinction is made between absolute and relative release of working capital.

Absolute release reflects a direct reduction in the need for working capital. The amount of absolute release is determined as the difference in the amounts of working capital invested in inventories in the analyzed periods.

Let's look at an example. In 2016, trade turnover amounted to 2,500,000 rubles, while the average annual cost of inventory was 500,000 rubles. The turnover was 5 revolutions. In 2017, turnover accelerated; turnover was also 2,500,000 rubles, but the average annual cost of inventory was 300,000 rubles. The turnover was equal to 8.33 revolutions, and the absolute release of working capital is defined as 500,000 rubles - 300,000 rubles = 200,000 rubles.

Relative release reflects the difference in working capital that would be needed in the current period with the turnover of the previous period. When do we need to determine relative release? In the previous example, turnover has not changed over the year, but you can often observe a situation where, as turnover accelerates, the cost of inventory remains the same, but turnover increases. That is, to increase sales the company did not need additional attraction of working capital.

Let's look at an example. In 2016, trade turnover amounted to 2,500,000 rubles, while the average annual cost of inventory was 500,000 rubles. The turnover was 5 revolutions. In 2017, turnover accelerated, the average annual cost of inventory was 500,000 rubles, and turnover was equal to 4,000,000 rubles. There was no absolute release of working capital: they were all invested in inventory, but the company benefited from the fact that it did not need to raise additional funds to increase sales. Let's determine this benefit. The logic is as follows.

We need to determine the average annual value of inventory, which would be if turnover remained the same as in 2016. The difference between this value and the actual one in 2017 will be the economic benefit from accelerating turnover in this case.

The turnover in 2016 was 5 revolutions. Let me remind you that turnover in turnover is defined as the ratio of turnover to the average annual cost of inventories. In our case, this is 2,500,000 rubles/500,000 rubles – 5 revolutions. If turnover had not changed in 2017, then the average annual cost of inventories would have been 4,000,000 rubles / 5 turnovers = 800,000 rubles. That is, we would need to attract an additional 300,000 rubles: 800,000 rubles – 500,000 rubles. The company did not need to attract these funds due to the fact that it took measures to accelerate turnover.

If you calculate turnover in days, then the effect of its acceleration is determined by the formula:

Economic effect = (turnover in the previous period - turnover in the current period) * turnover for the year / 365 days

In the period under review, the economic effect is equal to:

Turnover in 2016 = 500,000 rubles * 365 days / 2,500,000 rubles = 73 days

Turnover in 2017 = 500,000 rubles * 365 days / 4,000,000 rubles = 45.625 days

Economic effect = (73 days – 45.625 days) * 4,000,000 rubles / 365 days = 300,000 rubles.

According to my observations, almost every company has large reserves for accelerating turnover. More and more often people come to me with the question of how to achieve the turnover that the manager/owner of the company sets as a target. The site has several articles on this topic. For example,

If you want to quickly find a solution, understand what steps need to be taken specifically in your company, get a clear and clear plan to speed up turnover, I suggest getting my consultation.

The consultation will include:

Calculation of standard turnover by suppliers and company;

Calculation of actual turnover by suppliers and company;

Identification of positions with large surpluses;

Discussion of an action plan to get rid of these surpluses;

Identification of reserves for increasing turnover (frequency of order placement, work with suppliers).

The duration of the consultation is 1.5 hours.

Before the consultation, you need to send all the data that will be required for calculations. I make the calculations, and then we jointly analyze your indicators during a consultation on Skype.

Cost - 6,000 rubles.