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The working capital of the company. Long-term capital

Working capital concept

In the context of market relations, working capital becomes especially important

meaning. After all, they represent part of the productive capital,

which transfers its value to the newly created product completely and

returns to the entrepreneur in cash at the end of each circuit

capital. Thus, working capital is an important criterion in

determining the profit of the enterprise.

Working capital is the means that serve the process of activity,

participating simultaneously in the production process and in the implementation process

products. In ensuring the continuity and rhythm of the production process and

circulation is the main purpose of the working capital of the enterprise.

The materialized means of production are called the capital of the enterprise. Capital,

as a means of production is divided into means and objects of labor, which

participate in the creation of products and services, but differ in their functions in

the production process. The means of labor make up the material content

fixed assets, i.e. fixed capital, objects of labor -

circulating production assets, i.e. working capital. Regardless

whether the capital of the enterprise is divided into equity, borrowed, fixed

or reversible, constant or variable, it is in the process

continuous movement, taking only different forms depending on

specific stage of the circuit.

A feature of working capital is that it is not spent,

not consumed, but advanced in various types of operating costs

business entity. The purpose of the advance is to create the necessary

inventories, work in progress, finished goods

and conditions for its implementation.

Advance payment means that the used funds are returned

the enterprise after the completion of each production cycle or

circulation, including: production of products - their sale - receiving

proceeds from the sale of products. It is from the sales proceeds that

reimbursement of the advanced capital and its return to its original value.

Thus, the working capital intended to provide

the continuity of the production process and sales of products, can be

described as a set of funds advanced for

creation and use of circulating production assets and funds

treatment.

Working capital composition

By functional purpose, or role in the process of production and circulation,

the working capital of the enterprise is subdivided into working capital

funds and circulation funds. Based on this division, the working capital can be

describe as funds invested in working capital and

funds of circulation and making a continuous circulation in the process

economic activity.

The circulating production assets of enterprises consist of three parts:

Production stocks are objects of labor,

necessary to start production process consisting of raw materials,

main and auxiliary materials, fuel, fuel, spare parts and

component parts;

Work in progress (objects of labor that have entered

into the production process: materials, parts, assemblies and products) and

home-made semi-finished products;

Deferred expenses are immaterial items

circulating production assets, including the costs of preparation and

mastering new products.

Along with the listed real elements involved in

production inventories or work in progress, circulating

production assets are also represented by deferred expenses,

necessary for the creation of reserves, the installation of new equipment, etc.

Thus, circulating production assets serve the sphere

production, completely transfer their value to the newly created product,

at the same time, they change their original shape. And all this is in one

production cycle or circuit.

Another element working capital- circulation funds. They are not directly

participate in the production process. Their purpose is to ensure

resources of the circulation process, in servicing the circulation of enterprise funds

and the achievement of the unity of production and circulation. Circulation funds include:

finished products in warehouses, goods in transit, cash and funds in

settlements with consumers of products, in particular, accounts receivable.

Consolidation of circulating production assets and circulation funds into a single

reproduction is the unity of the production process and the implementation process

products. Working capital elements are continuously transferred from the sphere

production in the sphere of circulation and again return to production. In-

second, the elements of circulating funds and circulation funds have the same

the nature of movement, circulation, constituting a continuous process.

The role of working capital in the provision of financial assets of the enterprise

The target setting for working capital management is to determine the volume and structure of working capital, the sources of their coverage and the ratio between them, sufficient to ensure long-term production and effective financial activities of the enterprise.

The formulated target is strategic; no less important is the maintenance of working capital in an amount that optimizes the management of current activities. From these positions, the most important financial and economic characteristic of an enterprise is its liquidity, that is, the ability to “convert assets into cash and pay off your payment obligations”. For any enterprise, a sufficient level of liquidity is one of the most important characteristics of the stability of economic activity. Loss of liquidity is fraught not only with additional costs, but also with periodic interruptions in the production process.

With a low level of working capital, production activities are not properly supported, hence the possible loss of liquidity, periodic interruptions in work and low profits. At a certain optimal level of working capital, the profit becomes maximum. A further increase in the value of working capital will lead to the fact that the company will have at its disposal temporarily free, inactive current assets, as well as excessive financing costs, which will entail a decrease in profits (Figure 3).

Thus, the strategy and tactics of working capital management should ensure the search for a compromise between the risk of losing liquidity and operational efficiency. It boils down to solving two important problems.

The risk of losing liquidity or reducing efficiency due to the volume and structure of working capital potentially carries the following phenomena:

The most significant phenomena that potentially carry the risk of inability to finance are the following.

1. High level of accounts payable. When an enterprise purchases inventories on credit, accounts payable with certain maturities are generated. It is possible that the enterprise has "bought" more inventory than it needs in the near future or at an inflated price, and therefore, with a significant amount of credit and with excessive reserves inactive, the enterprise will not have enough cash to pay the bills, which , in turn, leads to default.

2. Suboptimal combination between short-term and long-term sources of borrowed funds. Despite the fact that long-term sources, as a rule, are more expensive, in some cases they can provide greater overall efficiency with less liquidity growth. The art of combining different sources of funds is a relatively new problem for most Russian managers.

3. A high proportion of long-term debt capital. In a stable economy, this source of funds is relatively expensive. Its relatively high share in the total amount of sources of funds also requires large expenditures for its maintenance, i.e. leads to a decrease in profits. This is the flip side of the coin: excessive short-term accounts payable increases the risk of losing liquidity, and an excessive share of long-term sources increases the risk of lowering profitability. Of course, the picture can change under some circumstances - inflation, specific or preferential lending terms, etc.

In the theory of financial management, various criteria for effective management of working capital and the sources of its formation have been developed. The main ones are the following:

The working capital financing models developed in the theory of financial management, on the one hand, proceed from the fact that the policy of its management should ensure the search for a compromise between the risk of liquidity loss and operational efficiency, on the other hand, when selecting funding sources, a decision is made that takes into account the period of their attraction and usage costs.

J. Brigham described the following three options for the policy of forming the working capital of the enterprise:

- “Quiet”, in which there is a relatively large level of inventory, accounts receivable and cash. It is associated with a minimal level of risk and reward.

- "Restraining", in which the level of working capital is minimized. She is able to bring the greatest profit, but also the most risky.

- “Moderate” is the average option.

E.S. Stoyanova in her works examines the policy of integrated operational management of current assets and current liabilities, which combines the policy of managing current assets with the policy of managing current liabilities. Its essence consists, on the one hand, in determining the sufficient level and rational structure of current assets, on the other, in determining the size and structure of funding sources for current liabilities.

Depending on the value specific gravity current assets In the composition of all assets, the following options for the current asset management policy are distinguished, in fact, similar to those described above:

Aggressive. Its main features are maintaining a high proportion of circulating assets and, accordingly, their low turnover. It provides a sufficient level of liquidity, but low return on assets.

Conservative. Its main feature is curbing growth and a low level of current assets, but carries a high risk of losing liquidity due to desynchronization of receipts and payments, therefore it is carried out either in conditions of sufficient predictability of receipts and payments, sales and stocks, or with strict savings.

Moderate is a compromise option. Its parameters are at an average level.

Each type of such policy must be matched with a financing policy. Depending on the value of the share of short-term liabilities, the composition of all liabilities includes the following policy options for managing short-term liabilities.

Aggressive. Its main feature is the predominance of short-term liabilities.

Conservative. The main feature is a low specific gravity.

Moderate is a compromise option. The average level of short-term loans.

Thus, the interpretation of the policies for the formation of the working capital of the enterprise by Western and domestic authors is similar in essence, so there is no need to focus on the differences in these approaches.

For the production of products, the means of labor alone (machines, fixtures, equipment) are not enough. In addition to them and the labor of the enterprise employees, the source material, raw materials, blanks are also needed - that from which the finished product is created in the production process - the objects of labor. And in order to be able to buy these objects of labor from suppliers and pay for the labor of workers, the enterprise needs money. Items of labor and monetary resources together form working capital of an enterprise... Management, determination of the optimal size, write-off of working capital into production - all these are important and pressing issues for any enterprise. You will find the answers to them and the indicators of working capital in this article.

Working capital: concept, composition and role in production

Working capital Is the enterprise's funds advanced into circulation funds and circulating production assets.

Working capital- this is the cost estimate of circulation funds and working capital assets.

The main purpose of working capital is ... make a turn! In the course of this process, circulating assets change the material form to monetary form, and vice versa.

The circulation of the company's working capital: money - goods, goods - money.

For example, a company has some funds that it spends on the purchase of raw materials and materials. This is the first transformation: money (not necessarily cash) was transformed into material objects - stocks (parts, blanks, material, etc.).

The inventory is then processed during the manufacturing process, moving into the work-in-progress (WIP) stage and ultimately becoming a finished product. These are the second and third transformations - stocks have not yet turned into cash for the enterprise, but have already changed their form and role.

And finally, the finished product is sold to the outside (sold to consumers or resellers) and the company receives money that can be spent again on the purchase of resources to resume the production process. And everything is repeated again in the second round. This is the fourth conversion of finished goods into cash.

Turnover of working capital- the most important indicator. The faster the funds of the enterprise turn around, the less the time gap between investments in production and the receipt of returns - revenue (and with it the profit).

It is important that the working capital of an enterprise, in contrast to fixed assets, participates in the production cycle only once and at the same time completely transfers its value to the finished product! This is what is the main difference between the working capital.

The structure of working capital includes various groups of objects of labor and cash. Enlargedly, they are all divided into two large groups: working capital and circulation funds. More about them below.

Composition of working capital:

1. Revolving production assets - include:

   a) production (warehouse) stocks- objects of labor that are still awaiting entry into production. Include:
   - raw materials;
   - basic materials;
   - purchased semi-finished products;
   - accessories;
   - auxiliary materials;
   - fuel;
   - container;
   - spare parts;
   - fast-wearing and low-value objects.

   b) stocks in production- objects of labor that have entered production, but have not yet reached the stage of finished products. Inventories in production include the following types of working capital:
   - work in progress (WIP) - processed products that are not yet finished and have not arrived at the finished product warehouse;
   - deferred expenses (BPO) - the costs that the company incurs at the moment, but they will be written off to the prime cost in the future period (for example, the cost of mastering new products, creating prototypes);
   - semi-finished products for own consumption - semi-finished products (for example, spare parts) produced by the enterprise itself exclusively for internal needs.

2. Circulation funds - these are the funds of the enterprise associated with the sphere of circulation, that is, with the maintenance of goods turnover.

   Circulation funds consist of the following elements:

   a) finished products:
   - finished products in stock;
   - shipped products (goods in transit; products shipped but not yet paid for).

   b) cash and settlements:
   - cash on hand (cash);
   - funds in the current account (or on the deposit);
   - profitable assets (funds invested in securities: stocks, bonds, etc.);
   - receivables.

The percentage between individual groups or elements of working capital is structure of working capital.

For example, in the production sphere, the share of circulating production assets is 80%, and of circulation funds - 20%. And in the structure of industrial stocks in industry, the first place (25%) is occupied by basic materials and raw materials.

The structure of the working capital of an enterprise depends on the industry, the specifics of the organization of production (for example, the introduction of the same logistics concepts greatly changes the structure of the working capital), the conditions of supply and sale, and on many other factors.

Sources of formation of the working capital of the enterprise

Everything sources of working capital of the enterprise can be divided into three large groups:

1. - their size is determined by the company independently. This is the minimum amount of stocks and funds sufficient for the normal functioning of production and sales, timely settlements with counterparties.

   Own sources of formation of working capital:
   - authorized capital;
   - Extra capital;
   - Reserve capital;
   - accumulation funds;
   - reserve funds;
   - depreciation deductions;
   - retained earnings;
   - other.

   An important indicator here is its own working capital, or, in other words, the working capital of the enterprise.

   Own working capital (working capital) Is the amount by which the current assets of the enterprise exceed its short-term liabilities.

2. Borrowed working capital- cover temporary additional need for working capital.

   As a rule, short-term bank loans and borrowings are used as a borrowed source of working capital.

3. Raised working capital- they do not belong to the enterprise, they were received from the outside, but are temporarily used in circulation.

   Attracted sources of working capital: accounts payable of the enterprise to suppliers, wage arrears to employees, etc.

Determination of the enterprise's need for its own circulating assets is made by it in the process of rationing.

This calculates working capital standard according to one of the special methods (direct counting method, analytical method, coefficient method).

This is how the rational volume of circulating assets used in the sphere of production and the sphere of circulation is determined.

Methods for writing off working capital into production

You can write off the working capital of an enterprise in production in various ways, each of which has its own advantages and disadvantages. Basic methods:

1. FIFO method(from the English. "First In First Out" - "first came, first left") - stocks are written off to production at the price of those stocks that arrived at the warehouse first. At the same time, within the framework of the FIFO method, it does not matter how much the circulating assets written off into production actually cost.
2. LIFO method(from the English "Last In First Out" - "the last one came, the first one left") - stocks are written off to production at the price of those stocks that arrived at the warehouse last. With the LIFO method, the cost of the written off inventory is also not important, since they will be accounted for at the price of the last ones received at the warehouse.
3. At the cost of each unit- that is, each unit of working capital is written off to production at its cost (so to speak "by the piece").

   An example of writing off inventories using this method: accounting jewelry, precious metals, etc.

4. Average cost- the average cost is calculated for each type of inventory and already for it the inventory is written off to production.

   This is perhaps the most widespread practice at Russian enterprises.

The optimal amount of working capital

One of the most important questions is the definition optimal amount of working capital, for example, the amount of inventory. To find the optimal provision with working capital of the enterprise, special methods are used (ABC analysis, Wilson's model, etc.). The solution to this problem is the theory of inventory management and logistics (for example, the concept of "Just-in-time" seeks to minimize warehouse stocks almost to zero).

The optimal amount of working capital- this is their level at which, on the one hand, an uninterrupted process of production and its implementation is ensured, and on the other hand, additional and unjustified costs do not arise.

At the same time, both large and small circulating assets of the organization (reserves) have their pros and cons.

Large amount of working capital (pros and cons):

• ensuring a smooth production process;
• availability of a safety stock in case of supply disruptions;
• the purchase of stock in large quantities allows you to get discounts from suppliers and save on transportation costs;
• the opportunity to win when prices rise due to the advance purchase of resources at a lower price;
• large funds allow you to pay suppliers on time, pay taxes, etc.

• large stocks - a high risk of spoilage;
• the amount of property tax is increasing;
• the costs of maintaining stocks are growing (additional storage space, personnel);
• immobilization of working capital (in fact, they are “frozen, withdrawn from circulation, do not work).

Small amount of working capital (pros and cons):

• minimal risk of deterioration of stocks;
• the costs of maintaining stocks are reduced (less storage space, personnel and equipment are required);
• acceleration of the turnover of working capital.

• the risk of disruptions in production due to late deliveries (after all, then the warehouse simply will not have the required amount of stock);
• an increase in the risks of untimely settlements with suppliers, creditors, and the tax budget.

Turnover ratio and turnover of working capital

The efficiency of using working capital and their condition can be analyzed using indicators such as the turnover ratio (working capital ratio) and turnover.

Working capital turnover ratio(To vol.) - a value showing how many full revolutions were made by circulating assets during the analyzed period of time.

The ratio of the turnover of working capital is calculated (a tautology is obtained, but what can be done) as the ratio of the volume of products sold to the average value of the company's working capital for the year. That is, this is the value of products sold per 1 ruble of working capital:

where: K vol. - the ratio of the turnover of current assets;

RP - products sold per year (annual proceeds from sales), rubles;

OBS Wed - the average annual balance of working capital (according to the balance sheet), rubles.

Turnover(T rev.) - the duration of one complete revolution in days.

The turnover of current assets is calculated according to the following formula:

where: T about. - turnover of working capital, days;

T p. - the duration of the analyzed period, days;

To vol. - the ratio of the turnover of working capital.

Acceleration of turnover allows you to draw additional funds into circulation, increase the return on their use, shorten the period between investment and profit.

Slow down turnover- a sign of "freezing" of resources, their "stagnation" in stocks, work in progress, finished goods. Accompanied by the diversion of funds from circulation.

Let's summarize. Working capital is the most important component economic activity, without which it is simply not possible to manufacture products and sell goods to consumers. This is a kind of "blood" in the "organism" of the enterprise, feeding its "organs" (workshops, warehouses, services). And the efficiency of working capital, the efficiency of their use, has a huge impact on the economic results of the company.

Galyautdinov R.R.

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The essence, composition, structure and purpose of the working capital of the enterprise.

Determination of the enterprise's need for working capital.

Indicators of the use of the working capital of the enterprise.

4. Ways to improve the efficiency of using working capital

enterprises.

1. Essence, composition, structure and purpose of the working capital of the enterprise

Working capital is used along with the fixed capital for the operation of the enterprise. The economic purpose of working capital is to ensure a continuous production process and economic activity of the enterprise.

The term "working capital" (its synonym in domestic accounting - working capital) refers to the mobile assets of an enterprise, which are cash or can be converted into them during a year or one production cycle. Net working capital is defined as the difference between current assets (working capital) and current liabilities (accounts payable) and shows how much current assets are covered by long-term sources of funds. An analogue of this indicator in domestic practice is the value of its own circulating assets.

Typical composition and classification of working capital are presented in table. 1.

According to the sources of formation, the current assets of the enterprise are divided into own and borrowed.

Revolving production assets enter the production process in their in kind, and in each production cycle they are completely consumed, change their natural-material form and transfer their value to the created product, and are also fully reimbursed after each production cycle:

1. Productive reserves- these are objects of labor that have not yet entered the production process and are in the warehouses of the enterprise in the form of stocks. The need for production stocks is due to the fact that the production process is carried out, as a rule, continuously, and the receipt of objects of labor - periodically.

2. Work in progress and self-made semi-finished products- these are objects of labor that are at different stages of processing, but not yet ready for implementation.

3. Future expenses(BPO) - these are costs that an enterprise incurs in the reporting period, but which are subject to repayment at the expense of the enterprise's sources of funds in future periods (for example, associated with the development of the release of new types of products - the manufacture and purchase of tools and devices for the manufacture of new types of products, payment per project, subscription to magazines, etc.).

4. Finished products(GP): GP in the warehouses of the enterprise - produced at the given enterprise and ready for shipment to consumers; GP shipped, en route, but not paid by buyers.

5. Goods shipped but not paid by buyers.

6. Cash- at the cash desk, on current accounts, on foreign currency accounts, other funds.

7. Short-term financial investments- investments in dependent companies; own shares purchased from shareholders; other short-term financial investments (intended for resale in the short term in order to generate income).

8. Acquired property taxes

9. Receivables(DZ) - DZ, payments for which are expected more than 12 months after the reporting date, and DZ, payments for which are expected within 12 months after the reporting date, including from buyers and customers, on promissory notes receivable, debt of subsidiaries and dependent companies, on advances issued, debts of participants (founders) on contributions to the statutory fund, from other debtors.

10. Other current assets- Debts of business entities for overpayments and erroneous deliveries; inventory items accepted prior to clarification; tax payments subject to offset (except VAT), etc.

In its movement, circulating assets pass sequentially 3 stages- money, production and commodity.

Money stage: D - T - PZ.

Production stage consists in the transformation of inventories into finished products by applying to them the labor of the enterprise's employees, which materializes into work in progress and is actually the source of the enterprise's profit creation: PZ - WIP - GP.

Commodity stage is to turn the finished product into money:

GP - T "- D"

Scheme complete circulation of working capital the enterprise is shown in Fig. 1.

Rice. 1. - Scheme of the circulation of the working capital of the enterprise

where D is the money available to the enterprise at the time of its creation or received as a result of the sale of products (works, services);

T - inventory items acquired by the enterprise and necessary to start (continue) the production process;

PZ - production stocks, i.e. inventory items in the warehouses of the enterprise;

WIP - work in progress;

GP - finished products;

T "- the finished product of the enterprise (goods, works, services), expressed in commodity form, that is, products for which there is already a buyer;

D "- funds received as payment for products to the current account of the enterprise.

DД - change in the value of working capital. In this case, D "= D + DD.

When DД> 0, the working capital increases, i.e. the enterprise has a profit, and at DD< = 0 оборотный капитал не увеличивается, т.е. предприятие является нерентабельным или убыточным.

It should be noted that for the normal functioning of the enterprise and the continuity of the circulation of working capital, it must be simultaneously at all stages and in all forms, since the absence of any element of working capital leads to a halt in circulation.

Along with the fixed capital for the operation of the enterprise, the availability of the optimal amount of working capital (working capital) is of great importance.

Types and sources of working capital formation.

The main components of working capital are working capital, cash and short-term financial investments.

Working capital can be divided into capital in production and capital in circulation.

Working capital refers to the totality of funds advanced for the creation of working capital and circulation funds, providing a continuous circulation of funds.

Revolving production assets (capital in production) this is:

Raw materials, fuel, containers, spare parts

Semi-finished products and work in progress

Basic and auxiliary materials

Productive reserves

Future expenses

Circulation funds (capitalin circulation) this is:

Finished products

• Other inventory items

  Goods shipped

  Cash

  Receivables

  Short-term financial investments

Working capital ensure the continuity of production and sales of the company's products.

Revolving production assets enter production in their natural form and are wholly consumed in the manufacturing process. They transfer their value to the product they create. Circulation funds are associated with servicing the process of goods circulation. They do not participate in the formation of value, but are its carriers. After the end of the production cycle, the manufacture of finished products and their sale, the cost of working capital is reimbursed as part of the proceeds from the sale of products (works, services). This makes it possible to systematically resume the production process, which is carried out through the continuous circulation of the enterprise's funds.

In its movement, circulating assets go through three successive stages: monetary, productive and commodity, while simultaneously being at all stages and in all forms of production, which ensures its continuity and uninterrupted operation of the enterprise.

Rhythm, consistency and high performance largely depend on the optimal size of working capital (and working production assets, and circulation funds). Therefore, the process of rationing of working capital, which refers to the current financial planning at the enterprise, is of great importance. The working capital ratio establishes its minimum estimated amount, which is constantly necessary for an enterprise to work. Failure to comply with the working capital ratio can lead to a reduction in production, failure to fulfill the production program due to interruptions in production and sales of products. However, excess stocks divert money from circulation. All this leads to insufficient or inefficient use of resources.

The sources of the formation of the elements of the working capital of the enterprise are in all cases financial resources. They include their own funds (included in the authorized capital, special funds and formed from profit) and borrowed funds (borrowed funds include loans received from commercial banks, commercial loans, accounts payable to suppliers and borrowed funds from legal entities and individuals).

Indicators of the availability, use and turnover of working capital.

The efficiency of the use of working capital affects the financial results of the enterprise. When analyzing it, the following indicators are used: the availability of its own working capital, the ratio between its own and borrowed resources, the solvency of the enterprise, its liquidity, the turnover of working capital, etc.

The presence of own circulating assets, as well as the ratio between own and borrowed circulating resources characterize degree of financial stability enterprises.

Enterprise solvency, i.e. its ability to fulfill obligations in a timely manner and in full is determined using special coefficients that take into account the real and potential financial resources of the enterprise, the ratio between its obligations and cash receipts, etc.

The solvency of an enterprise expresses it liquidity- the ability to make the necessary expenses at any time. Liquidity depends on the amount of debt and on the volume of liquid assets, which usually include cash, securities and easily realizable elements of working capital.

When analyzing working capital, indicators that characterize turnover rate working capital and its elements.

The simplest of these indicators is working capital turnover ratio... This is an important indicator of the efficiency of using working capital, which is calculated as follows:

where P- the cost of products sold for the period

O- the average balance of working capital for the period

The advantage of this indicator is the extreme simplicity of calculation and clarity of content.

Now you can determine the indicator the average duration of one turnover in days. The peculiarity of this indicator in comparison with the turnover ratio is that it does not depend on the duration of the period for which it was calculated.

where T- the duration of the period for which the indicators are determined, days (T = 30; 90; 360)

Comparison of the turnover ratios in dynamics over the years allows us to identify trends in the change in the efficiency of the use of working capital. If the number of revolutions made by circulating assets increases or remains stable, then the enterprise works rhythmically and rationally uses monetary resources.

Acceleration of the turnover of circulating assets contributes to their absolute and relative release from circulation. Under absolute release means a decrease in the amount of working capital in the current year compared to the previous year with an increase in product sales. Relative release takes place when the growth rate of sales outstrips the growth rate of working capital. In this case, a smaller volume of working capital provides a larger amount of sales.

The next indicator used to characterize working capital is fastening factor working capital. This coefficient is the reciprocal of the turnover rate

It characterizes the amount of the average working capital balance per one ruble of sales proceeds.

It is also important for the enterprise indicator of provision with own circulating assets, which is calculated as the ratio of the amount of own working capital to the total amount of working capital.

Determination of the firm's need for working capital

The problem of determining the company's need for working capital is an important component of financial planning.

The tasks solved in the process of operational management of the production and commercial activities of the company also imply the determination of the company's need for working capital.

The most common method for calculating the need for a company's working capital is based on the volume of products sold, determined in the business plan for the upcoming period and the level of the working capital consolidation ratio for previous periods: multiplying the one-day output by the work-in-progress rate in days. The need for working capital for finished products is established by multiplying the one-day output of products at cost by the rate of working capital for finished products. The need for circulating assets for stocks of goods is determined by multiplying the one-day turnover of these goods at purchase prices by their stock rate in days. The need for cash at the cash desk is determined by multiplying the one-day turnover at sales prices by the norm of the stock of cash in days.

Any production process at an enterprise is the result of the union of labor with the means of production, which are represented by fixed and circulating capital. Working capital is the most important element of production, which provides it with the necessary financial resources and determines the continuity of the operation of the enterprise.

Working capital represent the amount of money advanced for the creation of circulating production assets and circulation funds.

Revolving production assets - this is a part of the means of production that once participates in the production process, immediately and completely transfers its value to the manufactured products and, in the production process, changes (raw materials, materials) or loses (fuel) its natural-material form. These include: raw materials, basic and auxiliary materials, components, not finished products, fuel, containers, overalls, deferred expenses, etc.

Circulation funds include funds serving the process of selling products (finished products in a warehouse; goods shipped to customers, but not yet paid by them; funds in settlements; cash at the cash desk of the enterprise and in bank accounts). They do not participate in the production process, but are necessary to ensure the unity of production and circulation.

The share of circulating production assets and circulation funds in the structure of circulating assets depends on the industry affiliation of the enterprise, the duration of the production cycle, the level of specialization and cooperation, and other factors.

The current assets of the enterprise are in constant motion and function simultaneously in two areas: the sphere of production and the sphere of circulation. During the production cycle, they go through three stages. circuit:

→ first stage (supply) involves spending money and supplying objects of labor. At this stage, there is a transition of circulating assets from the monetary form to the commodity one;

→ on second stage (production) circulating assets go into production, ultimately turning into finished goods;

→ third stage (marketing) occurs when the finished product is sold to consumers. Circulating assets move from the sphere of production to the sphere of circulation and again change their form - from commodity to money.

Thus, the funds make one turn, then everything is repeated again: the money from the sale of products is directed to the acquisition of new objects of labor, etc.

In the process of movement, circulating assets are simultaneously at all stages and in all forms, as a result of which the continuity and rhythm of the production process at the enterprise is achieved. The duration of the finding of working capital at each stage of the circulation is not the same and depends on the technological properties of raw materials and finished products, the duration of the production cycle, the characteristics of the material and technical supply and sales of products. So, for example, the seasonality of the supply of raw materials in some industries (fruit and vegetable industry) causes a delay in working capital at the first stage of the circulation; in industries with a long production cycle (shipbuilding), there is a delay in working capital at the second stage of the circulation in the form of work in progress; the uneven sale of products causes the accumulation of funds at the third stage of the circulation.

In practice economic work to study the composition and structure of current assets are classified according to several criteria.

By spheres of turnover (by economic content) circulating assets are subdivided into circulating production assets (sphere of production) and funds of circulation (sphere of circulation).

Separate parts of working capital have different purposes and are used in different ways in production and economic activities, therefore they are classified for the following items.

Revolving funds:

ü productive reserves- raw materials, basic and auxiliary materials, purchased semi-finished products, fuel, containers, spare parts;

ü work in progress and semi-finished products of our own production;

ü expenses of future periods.

Circulation funds:

ü finished products in warehouses;

ü products shipped but not paid for;

ü funds in payments;

ü cash on hand and on accounts.

Price work in progress consists of the cost of raw materials, basic and auxiliary materials, fuel, energy, water, part of the cost of the OPF transferred to the product, as well as wages accrued to employees. The amount of work in progress depends on the duration of the production cycle and the size of the batch.

The costs of mastering new products, preparatory and other work, calculated for a long time, amount to Future expenses and written off to the cost of production in the future. Their need is due to the implementation of work related to the financing of promising changes in the structure of products, technology, etc.

By rationing coverage working capital is divided into standardized and non-standardized. For the standardized working capital, standards are established, i.e. minimum dimensions(working capital in inventories). The amount of non-standardized working capital is controlled not according to standards, but according to actual data (accounts receivable, funds in settlements, cash on hand and on the accounts of the enterprise).

By sources of formation working capital is divided into own and borrowed. Own assets are current assets that are in constant use of the enterprise. These include the funds that the enterprise is endowed with during its organization (authorized capital), deductions from profits, stable liabilities (for example, debts to personnel for wages). However, in the process of production and economic activities, for various reasons, the enterprise often has an additional need for financial resources, which is covered by borrowed funds (for example, bank loans).

The presence of own and borrowed funds in circulation is explained by the peculiarities of the organization of the production process. Each enterprise is faced with the task of maintaining an optimal proportion between its own and borrowed funds, which characterizes the financial stability of the enterprise. It is believed that a constant minimum amount of funds to finance production needs is provided by its own working capital. The temporary need for funds, which arose under the influence of reasons dependent and not dependent on the enterprise, is covered by borrowed funds.

Under structure of working capital the ratio of their individual elements in the totality is understood. It depends on the industry affiliation of the enterprise, on the level of specialization and cooperation, on the quality and competitiveness of the products, the duration of the production cycle, and the rate of scientific and technological development of the enterprise. At enterprises with a long production cycle (for example, in heavy machine building, shipbuilding), the share of work in progress is high; in light and Food Industry where the production cycle is relatively short, production stocks prevail in the structure of working capital with a low share of work in progress; there are no unfinished products at all in the electric power industry; at the enterprises of the mining industry there is a significant share of deferred expenses.

Analysis of the structure of working capital at the enterprise is of great importance, since it is a kind of mirror, which reflects the financial condition of the enterprise. So, an excessive increase in the share of receivables, finished goods, work in progress indicates a deterioration financial condition... Accounts receivable characterizes the diversion of funds from the turnover of a given enterprise and their use by debtors in their turnover. The unsatisfactory organization of sales of finished products leads to an increase in the share of finished products in the warehouse (overstocking), the diversion of a significant part of working capital from circulation, a decrease in sales, and, consequently, profits. On the contrary, a well-organized system of sales of products, the release of goods according to the orders of consumers, and an established mechanism for shipment do not allow circulating assets to be delayed at this stage of the circulation.

Organization of working capital at an enterprise includes determining the need for working capital, their structure, sources of forming working capital and managing the use of working capital (increasing their turnover).