Working capital

WORKING CAPITAL

(floating capital) Funds available for doing business, including invested in publicly traded investments.

(working capital) The portion of a company's capital that is involved in its day-to-day business activities. It consists of current assets (mainly inventory, accounts receivable and cash) minus current liabilities (mainly accounts payable). In a normal production and trading cycle - the supply of goods by the supplier, the sale of inventory without prepayment, payment for the goods in cash, the use of the received cash to pay suppliers - working capital is an indicator net assets in circulation, sometimes called working assets.

Finance. Explanatory dictionary... 2nd ed. - M .: "INFRA-M", Publishing house "Ves Mir". Brian Butler, Brian Johnson, Graham Sidwell, et al. General editorial: Ph.D. Osadchaya I.M.. 2000 .

Working capital

Working capital is capital that participates and is fully expended during one production cycle. Working capital includes:
- material circulating assets;
- cash;
- short-term financial investments;
- funds in current settlements.

In English: Working capital

Synonyms: Revolving fund

English synonyms: Current capital, floating capital

Finam Financial Dictionary.

Working capital

1. A part of the productive capital, the value of which is fully transferred to the produced goods and returned in monetary form after its sale. The portion of a company's capital that is involved in its day-to-day business activities. It consists of current assets (mainly inventory, accounts receivable and cash) minus current liabilities (mainly accounts payable). In a normal production and trading cycle - the supply of goods by a supplier, the sale of inventory without prepayment, payment for goods in cash, the use of cash received to pay suppliers - working capital is an indicator of net assets in circulation, sometimes called current assets.

The share of the company's capital invested in current assets, in fact, all current assets. Net working capital is the difference between current assets and current (short-term) liabilities.

2. The excess of current assets over short-term liabilities, allowing the company to finance its ongoing operations; company funds that can be quickly converted into money. Working capital is formed from cash, easily realizable valuable papers, accounts receivable, inventories, finished goods, work in progress, materials, components and deferred expenses. The location of the components of the working capital is based on the criterion of liquidity - the ability to convert the company's funds into cash - an important indicator of the company's activities, by which the stability of its financial position is assessed.

Terminological Dictionary of Banking and Financial Terms. 2011 .

See what "Working capital" is in other dictionaries:

working capital- net working capital The difference between current assets and current liabilities. Sometimes also referred to as working capital. working capital Current assets of the company (enterprise), primarily ... ... Technical translator's guide

- (working capital) Part of the capital of an enterprise not invested in land, buildings or basic equipment. Working capital is used to maintain liquid balances, pay wages, purchase materials and expand credit ... ... Economic Dictionary

- (circulating capital, working capital) 1. Part of the company's capital that is involved in its daily business activities. It consists of current assets (mainly inventory, accounts receivable ... ... Business glossary

Working capital- (working capital, Current capital) current assets of the company (enterprise), primarily cash, stocks, receipts (gross working capital); usually we mean net working capital capital, which ... ... Economics and Mathematics Dictionary

Working capital concept of classical economics by Adam Smith. One of the basic concepts of the political economy of K. Marx. Not to be confused with the accounting term own circulating assets. Categories: CapitalEconomic termsFactors ... ... Wikipedia

The costs of raw materials, materials, labor, which are fully included in the price of products and are returned in cash after their sale ... Big Encyclopedic Dictionary

working capital- the most mobile part of the enterprise's capital, which, in contrast to fixed capital, is more fluid and easily transformed into cash. It is customary to refer to working capital as cash, easily realizable valuable ... ... Dictionary of economic terms

working capital- 1) see working capital (capital); 2) in broad sense circulating assets, that is, the sum of all funds in circulation at a given enterprise, both their own and others', but excluding illiquid assets (see liquidity) ... Reference commercial vocabulary

The costs of raw materials, materials, labor, which are fully included in the price of products and are returned in cash after their sale. * * * WORKING CAPITAL WORKING CAPITAL, costs of raw materials, materials, labor, which are completely ... ... encyclopedic Dictionary

Working capital- WORKING CAPITAL Short-term current assets (see Current assets), which relatively quickly turn over in the course of the company's economic activity. Working capital is raw materials, work-in-progress and finished stocks ... ... Dictionary of Economics

Books

• Enterprise Economics (CD), Tatyana Aleksandrovna Weiss, Vitaly Sergeevich Vasiltsov, E. N. Weiss. S D (COMPACT DISC) The electronic textbook "ENTERPRISE ECONOMY" is intended for students and teachers of universities, heads of enterprises and organizations. It is based on educational ...

For the period of each operating cycle. In other words, these are the firm's funds invested in current assets (working capital). Working capital, like fixed capital, expresses certain production relations that develop with the development of entrepreneurship.

Working capital is directly involved in the creation of new value, functioning in the process of circulation of all capital. In this case, the ratio of fixed and working capital affects the amount of profit received. Working capital circulates faster than fixed capital. Therefore, with an increase in the share of working capital in the total amount of advanced capital, the turnover time of the entire capital decreases, and, consequently, the possibility of the growth of new value increases, i.e. arrived.

There is a concept net working capital... Its value is determined as the difference between current assets and current liabilities, current liabilities. Under normal conditions of functioning of economic entities, the value of current assets is higher than current liabilities, i.e. the amount of working capital exceeds accounts payable.

Definition 2

Net working capital in traditional terminology, it is nothing more than its own working capital.

Working capital is characterized not only by the volume and structure, but also by the liquidity of current assets. The degree of liquidity is determined by the ability of current assets to turn into cash in the course of circulation. This takes into account that, for example, production stocks are less liquid than finished products, and funds are absolutely liquid.

Features of working capital management determined by the structural affiliation of economic entities. If trade organizations have a high specific gravity goods, at industrial enterprises- raw materials and materials, then financial corporations are dominated by cash and cash equivalents.

According to financial management theory, working capital consists of permanent and variable capital... That part of current assets that is constantly at the disposal of the enterprise and in the amount the required minimum provides economic activity, forms the basis of permanent working capital.

When an additional need for funds arises, due, for example, to the seasonal nature of production and sales or other objective reasons, a variable working capital is formed.

Remark 1

Thus, the efficiency of working capital management is determined by a number of factors: the volume and composition of current assets, their liquidity, the ratio of own and borrowed sources of coverage of current assets, the amount of net working capital, the ratio of constant and variable capital and other interrelated factors.

Definition 3

Working capital of business entities participating in the circulation of the market economy means, it is an organically unified complex. Working capital is money advanced into circulating production assets and circulation funds, which ensure both the production process and the circulation process.

The circulating capital (circulating assets) of the enterprise, participating in the process of production and sale of products, makes a continuous circulation. In this case, the funds are transferred from the sphere of circulation to the sphere of production and vice versa, taking the form of circulation funds and circulating production assets.

Working capital phases

Thus, passing through three successive phases, circulating assets change their natural-material form.

1. In the first phase(M - T) circulating assets, which initially have the form of cash, are converted into inventories, i.e. move from the sphere of circulation to the sphere of production.
2. In the second phase(T ... P ... T,) circulating assets participate directly in the production process and take the form of work in progress, semi-finished products and finished products.
3. Third phase the circulation of circulating assets (C - D) takes place again in the sphere of circulation. As a result of the sale of finished products, circulating assets take the form of cash again.

The difference between the received cash proceeds and the initially spent cash (D - D) determines the amount of the firm's cash savings. Thus, making a complete circuit (M - T ... P ... C - D,), the circulating capital functions at all stages in parallel in time, which ensures the continuity of the process of production and circulation, The circulating capital circulation is an organic unity of its three phases.

Unlike fixed capital, which repeatedly participates in the production process, working capital functions in only one production cycle and completely transfers its value to the entire manufactured product.

According to the sources of formation, working capital is divided into equity and borrowed (attracted). Own working capital of enterprises with the development of entrepreneurial activity and corporatization plays a decisive role, since it ensures financial stability and operational independence of an economic entity. Own circulating assets of the privatized enterprises are at their complete disposal. Enterprises have the right to sell them, transfer them to other business entities, citizens, lease them, etc.

Borrowed capital, attracted in the form of bank credit other forms, covers the additional need of the enterprise for funds. At the same time, the main criterion for the terms of lending by the bank is the reliability of the financial condition of the enterprise and the assessment of its financial stability.

Remark 2

The placement of working capital between enterprises of different industries predetermines the sectoral structure of working capital. So, in the sphere of production, the structure of working capital is determined by the degree of concentration, the nature and duration of the production process, its material consumption, the level technical equipment and other factors. At the enterprises of the sphere of circulation, the share of stocks of commodity material values.

Working capital management

Working capital management closely related to its composition and location. In various economic entities, the composition and structure of working capital is not the same, since it depends on the form of ownership, the specifics of the organization of the production process, relationships with suppliers and buyers, the structure of production costs, financial condition and other factors. Typical composition and placement of working capital are shown in the figure:

Picture 1.

The condition, composition and structure of inventories, work in progress and finished goods are an important indicator of the commercial activity of an enterprise. Determining the structure and identifying the trend of changes in the elements of working capital make it possible to predict the parameters of entrepreneurship development.

The structure of circulating assets (circulating assets) by sectors of the Russian economy, including industry, is presented in the table:

Figure 2.

The structure of working capital in industry is basically identical to the corresponding average indicators for the sectors of the economy. It is characteristic that about one third of the current assets in industry falls on stocks. More than half of the funds are in the calculations, namely in accounts receivable. The share of short-term financial investments and funds accounts for almost $ 14 \% $. This is due to the fact that cash has absolute liquidity and quick turnover, in contrast to this type of current assets as accounts receivable. The predominance of funds in settlements in the current conditions is due to the difficulties of the transition period, economic restructuring, inflation and, consequently, violations of financial and payment discipline.

Based on the above, we can conclude that given view capital takes the form of investment in any entrepreneurial activity for a certain, short-term time cycle. Other terms are often used, such as current assets or current assets.

This economic term owes its name characteristic feature of this capital quickly enter and exit from circulation, which makes it a separate category on a par with fixed capital. This suggests that working capital has a high liquidity threshold. This indicator depends on:

• forms of expression of working capital, which can be presented in the form of cash (maximum liquidity ratio);
• finished products (medium);
• and production resources (the lowest degree of liquidity).

Working capital structure

The structural component of working capital depends on the type economic activity enterprises. For production cooperatives, the size of this capital is most often characterized by the volume and capacity of production, the level of the material and technical base and other factors. It is common for financial companies to appeal in cash and in the masses, and their equivalents. , based on the turnover and sale of certain goods, respectively, has capital in the form of products.

The amount of working capital depends on several criteria:

• the volume of current assets and their liquidity;
• the size of constant and variable capital;
• by the nature of current assets (own or borrowed);
• the nature of the economic activity carried out by the entity.

Conversion process

The use of working capital implies its transformation as a result of passing through several stages, because these assets are liquid, which means they are constantly involved in economic transactions. Let's analyze the process of converting working capital for the reporting period for a manufacturing enterprise.

1) At the first stage, the money that forms the circulating one is converted into certain goods and production stocks.

2) On next step the purchased materials are used for the manufacture of finished goods, semi-finished goods and unfinished goods.

3) Final stage is the process of subsequent resale of previously manufactured products, that is, its transformation into the initial investment.

For subjects of other forms of economic activity, this scheme will look somewhat different, for example, some enterprises realize their working capital in two stages: the stage of purchasing finished products and its subsequent resale to other firms and companies.

Financial institutions have special forms of transformation of current assets. This is a consequence of the fact that the same banks carry out their activities with the help of several operations. As means, money supply and their equivalents (, precious metals) are almost always used. For example, the procedure for the turnover of funds for credit relations will differ from the activities of a bank or other financial institution on the exchange market. Accordingly, the flow pattern of circulating assets in both cases will be different.

In addition, do not forget that many business entities carry out both primary and secondary activities that are not prohibited by current legislation. That is, the same manufacturing enterprises as a secondary source of income, they can participate in financial transactions, lease relations, etc.

Sources of working capital formation

Modern economic conditions for doing business determine the use by business entities of the options and solutions provided by financial institutions, namely, loans and borrowings. Therefore, in the process of forming current assets, it most often uses borrowed funds along with its own. The size of personal capital characterizes the stability of the company, and its relative independence and isolation. Assets generated from credit funds are used to support their own activities and the set plan for the period. Therefore, most of the major corporations, when concluding cooperation agreements, pay Special attention the nature of the working capital available to a potential partner.

Working capital management of the company

It is important to remember that a competent and verified strategy for managing your current assets contributes to the success of any company. Most business entities make the mistake of preferring the formation of constant capital to working capital. After all, it is the transformation and movement of money and commodity masses that entails the receipt of growing profits.

Obviously, with the help of volumetric circulating transactions, the efficiency of the economic activity of the entity can increase by 20-30%.

Optimization of working capital

It takes place in several stages:

1. Resolution of the issue of repayment of existing obligations under accounts receivable and payable agreements and ratios.
2. Improving control over the movement of current assets within the organization, planning more effective schemes such movement.
3. Redistribution of resources between fixed and assets and circulating, in favor of the latter.
4. Improvement of the methodology for managing circulating assets, the creation of new ways of their application.

In the course of solving some of the above problems, an inexperienced entrepreneur should resort to the help of professional analysts and forecasters. Specialists in the field can help create an organizational base for effective management current assets. These funds must be in constant motion, therefore, daily administration of financial transactions is also necessary. Therefore, the indicators in this aspect will depend on correct organization and the qualifications of the composition of operating units. An improvement in the liquidity and turnover ratio of current assets will inevitably lead to an increase in the level of the company's income.

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Concept, classification and structure of working capital

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 - essential element production, providing it with the necessary financial resources and determining 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- these are objects of labor that once participates in the production process, immediately and completely transfers their value to the manufactured products and, in the production process, changes (raw materials, materials) or loses (fuel) their natural-material form... These include: raw materials, basic and auxiliary materials, components, not finished products, fuel, containers, overalls, deferred expenses, etc.

		Working capital

Finished products

Funds in production

productive reserves

Funds in payments

Receivables

Cash

Basic andsubsidiary

materials

raw material

fuel

container, packing

Unfinished production

Future expenses

Rice. Working capital structure

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 in the cash desk of the enterprise and in bank accounts). They do not participate in 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.

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

I. 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 production stocks - raw materials, basic and auxiliary materials, purchased semi-finished products, fuel, containers, spare parts;

ü funds in production (work in progress and semi-finished products of own production, prepaid expenses).

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.

Work in progress refers to those products that, at the time of calculation, are at any stage of production. 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.

II. By rationing coverage working capital is divided into standardized and non-standardized. For the normalized working capital, standards are established, i.e. minimum sizes (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).

III. 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, debt to personnel for wages). However, in the process of production and economic activities, for various reasons, an 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 optimal proportion between own and borrowed funds, which characterizes the financial stability of the enterprise. It is believed that the constant minimum amount funds for financing production needs are provided by its own circulating assets. The temporary need for funds, which has arisen 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 the light and food industries, 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.

Theme .Circulation of working capital

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: D-Pt-P-Np-Gp-D̉

→ first stage(supply) D-Fri involves the expenditure of funds and the supply of 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) Pt-Np-Gp circulating assets go into production, ultimately turning into finished products;

→ third stage(sales) Gp-D occurs when finished products are 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: 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.

Theme.

From the point of view of production efficiency, the volume of working capital should be optimal, i.e. sufficient to ensure an uninterrupted production process, but at the same time minimal, not leading to the formation of excess stocks, freezing of funds, an increase in production and sales costs. The need for the formation of working capital in optimal size is caused by the fact that between the time of consumption of material resources in production and the receipt of proceeds from the sale there is a time lag, which depends on many internal and external factors. The amount of working capital, sufficient for the normal functioning of the production process and the sale of products, is established by rationing working capital, which is the basis for their rational use.

Rationing of working capital- this is the process of determining the minimum, but sufficient for the normal course of the production process, the amount of working capital at the enterprise. In a market economy, the value of the regulation of working capital is very high: enterprises must independently establish and control the standard for working capital, since ultimately this determines the efficiency of the enterprise and its financial position (solvency, stability, liquidity). The underestimation of the value of working capital entails an unstable financial position, interruptions in the production process and, as a result, a decrease in the volume of production and profitability. On the contrary, the overestimation of the amount of working capital freezes funds in any form (warehouse stocks, suspended production, surplus raw materials and materials), thereby preventing investment in the expansion and renewal of production.

Insurance, or guarantee, stock is necessary in case of unforeseen circumstances (for example, in the event of a shortage of raw materials) and is set, as a rule, in the amount of 50% of the current stock, but it may be less than this value depending on the location of suppliers and the likelihood of interruptions. Transport stock is created only if the terms of cargo turnover are exceeded in comparison with the terms of document turnover. Document flow - the time for sending settlement documents and submitting them to the bank, the time for processing documents in the bank, the time of the mail run of the documents. In practice, transportation stock is determined on the basis of historical data. Technological stock created during the preparation of materials for production, including analysis and laboratory tests. Technological stock is considered only if it is not part of the production process.

Preparatory stock is established on the basis of technological calculations or by means of timekeeping and refers to materials that cannot immediately go into production (wood drying, grain processing). delivery (by water transport). The standard ( N) working capital is determined by the formula

H = Ro * D, where D is the stock rate in days. Po = ∑ annual cost estimate 360.

Topic questions:

economic content and organization of working capital at the enterprise:

composition, placement of working capital by stages of circulation:

production and financial cycle;

structure of the organization's current assets;

determination of the optimal value of working capital,

necessary for the normal functioning of the enterprise;

methods for determining the need for working capital;

sources of financing of working capital;

indicators of the efficiency of using working capital.

ECONOMIC MAINTENANCE AND ORGANIZATION OF WORKING CAPITAL AT THE ENTERPRISE

Any enterprise conducting entrepreneurial activity with the aim of making a profit must have a certain capital invested in fixed and current assets.

Working capital - is a set of investments in one of component parts property, namely in the means ensuring the continuous functioning of the production and commercial cycle.

Despite the general similarity of the concepts - "working capital", "working capital", working capital "- they have differences. The term "current assets" is identical to the term "current assets" B and is used in the field of accounting. They are also often referred to as "current assets". "Revolving funds" is a term used to define the types of assets in their material and material form, placed according to the stages of circulation and by purpose. The definition of "working capital" is given above and indicates the amount of investment in current assets.

Circulating (current) assets is a set of production circulating assets that is constantly in motion.

and circulation funds in monetary terms designed to ensure a smooth process of production and sale.

The classification of circulating assets is schematically shown in Fig. 5.1.

Rice. 5.1.

I level of classification - on a functional basis; Level II - by types of working capital;

Level III - by elements of working capital

The composition and structure of circulating assets depend on the size of the enterprise, the scale and type of its activities, the distance from the markets for the supply of material resources and the sale of finished products, as well as on other factors.

The structure of working capital is the proportion of the distribution of funds between individual elements of current assets. Based on the analysis of the structure of current assets, it is possible to determine what part of the working capital is financed from own sources and long-term loans, and what part is financed from attracted ones, including short-term loans.

The structure of current assets reflects the specifics of the production (operating) cycle, as well as the duration and characteristics of the financial cycle. The production cycle begins with the purchase of raw materials and ends with the shipment of finished products. The financial cycle begins with the payment of accounts payable for the supply of raw materials and materials and ends with the payment by the buyer of the receivable (Figure 5.2).

Organization of working capital at an enterprise is an important area of ​​activity for financial services. The tasks of working capital management include: determining the composition and structure of working capital, determining the need for working capital, identifying the sources of forming working capital, disposing of working capital and their effective use.

The size and structure of current assets must meet the needs of the organization. Working capital should be minimal, but sufficient for uninterrupted and successful work companies. Each enterprise determines minimum size requirements for working capital by their types. This need is usually called the norm. Some types of circulating assets are considered to be standardized, that is, they should be used to calculate the norms of need, others are not standardized, it is not necessary to calculate the norms for them. Non-standardized working capital includes cash and settlements (accounts receivable).

Working capital ratios can be calculated different methods... These methods should be carefully studied and practiced in their application on the example of your own or any other enterprise.

When developing the norms of working capital, it is necessary to take into account their dependence on the following factors:

• the duration of the production cycle for the manufacture of products;
• the rate of consumption and stocks of objects of labor and other material values ​​provided for in the production plan and in the plan of material and technical supply;
• consistency and clarity of work of procurement, processing and production shops;
• supply conditions (duration of intervals, their observance, sizes of supplied consignments of materials);
• remoteness of suppliers from enterprises and the proportion of transit and warehouse forms of material and technical supply;
• speed of transportation and uninterrupted operation of transport;
• time of preparation of materials for launching them into production;
• the frequency of launching materials into production;
• implementation of measures according to the plan to improve production efficiency;
• conditions for the sale of products;
• systems and forms of payments, speed of document flow. The main methods of rationing working capital: direct account method; analytical method; coefficient method.

Direct counting method it is used for the initial calculation of standards and with a significant change in business conditions. This method consists in calculating the value of the norms for each element with the greatest possible detail and taking into account all influencing factors. Then the standards in monetary terms are summed up in the general standards.

Analytical method applies when the planning period does not provide for significant changes in the conditions of management in comparison with the previous period. In this case, the calculation of the working capital ratio is carried out on an aggregated basis, with an adjustment for the growth of production volume or taking into account individual factors affecting the value of the standard (for example, the inflation index).

Coefficient method is based on the basic size of the standard with clarification for each element of the size of the standard, taking into account changes in the conditions of delivery, production, sale, calculations, etc.

Rationing of working capital is carried out in monetary terms. The standardization process includes five consecutive stages of calculation.

1. Calculation of stock norms for each element of standardized working capital. The rates are set in days of stock and mean the duration of the company's property in the state of this type of working capital. For example, the stock rate for materials is 15 days. This means that the materials are in the warehouse in the form of production stocks for no more than 15 days. During these days, they must be used up in production and replaced with new receipts from suppliers of materials. A work-in-progress rate of, say, 5 days is based on a production cycle of 5 days. During this period, the products must pass full cycle manufacturing, technical quality control and compliance with standards and technical specifications and posted to the finished goods warehouse. The stock rate of finished goods shows the duration of the stay of finished goods in the warehouse. If the rate is set at 7 days, then a shipment lot must be accumulated during this period and the products must be released to the buyer or shipped to the carrier.

Under the item "Deferred expenses", the rate is set in monetary terms and is based on planned calculations of the need for this element of working capital. Calculations can be based on the analysis of average multi-year data of movement on the accounting account "Deferred expenses".

The rates are subdivided into private and aggregate. Private norms are calculated by types of inventories, products, etc. If the enterprise is multifunctional, then the calculations are carried out by type of activity, by territorial basis. On the basis of particular norms, aggregate norms are developed.

2. Calculation of one-day consumption by elements of working capital in monetary terms. In the process of rationing, data from the cost estimate for the production of products (works, services) are used. As a rule, calculations are made on the basis of the indicators of the IV quarter of the planned year, if the production is not of a pronounced seasonal nature. For production stocks, one-day turnover is calculated on the basis of the data of the item "Material costs" of the estimate of production costs; for work in progress - based on the cost of gross production; for finished products - based on the production cost of marketable products.

According to the item "Material costs" of the estimate, it is planned to spend 4,500 thousand rubles in the IV quarter. One-day consumption is determined by dividing the amount by 90 days (conditional quarter duration):

4500: 90 = 50 thousand rubles.

The cost of gross production according to the planned estimate for the IV quarter is 8100 thousand rubles. One-day turnover in work in progress is equal to: 8100: 90 = 90 thousand rubles.

The production cost of marketable products according to the planned estimate for the IV quarter is 9720 thousand rubles. One-day turnover of finished goods stocks is equal to: 9720: 90 = 108 thousand rubles.

3. Determination of the standard for a specific type of working capital based on the norms of the stock and their one-day consumption.

• 1. Let's define the OS standard for inventories: One-day consumption of materials in the amount of 50 thousand rubles. multiplied by the stock rate in days - 15 days. The standard for inventories is 50 x 15 = 750 thousand rubles.
• 2. Let's define the OS standard for work in progress:
• 90 x 5 = 450 thousand rubles.
• 3. Let's define the OS standard for stocks of finished products:
• 108 x 5 = 540 thousand rubles.
• 4. Analysis of the average need for funds to cover future expenses. Determine the amount that the company usually invests in deferred expenses. An enterprise can plan to increase this amount if an increase in expenses is expected, or a decrease if it is expected to write off deferred expenses to the cost of production. In the first case, additional investments in working capital will be required, in the second, on the contrary, the need for working capital under this item decreases, but an increase in the cost price will entail an increase in the standard for items "Work in progress" and "Finished goods".

Let's assume that the average need for deferred expenses is 40 thousand rubles:

• a) the company plans to create a repair fund in a larger size than before. The increase will amount to 10 thousand rubles. Consequently, the standard of working capital under the item "Prepaid expenses" B will be:
  • 40 + 10 = 50 thousand rubles.
• b) the company plans to write off 20% of deferred expenses to the cost price, then the standard will be:
  • 40x0.8 = 32 thousand rubles.
  • 5. Determination of the general standard of working capital for the planned year:
    • a) 750 + 450 + 540 + 50 = 1,790 thousand rubles;
  • b) 750 + 450 + 540 + 32 = 1,772 thousand rubles.

An important role in organizing the turnover of enterprise funds is played by sources of formation of working capital. The student must know the classification of sources and the signs of dividing them into own and involved. You should carefully consider the characteristics of your own sources and be able to assess their role in the organization of the enterprise at the present stage.

Own source is the part of equity that is not directed to investments in fixed assets. This value is calculated as the difference between the size of the company's equity capital (total Section III balance sheet) and the cost of non-current assets (the result of the I section of the balance sheet). Equity includes authorized capital, reserve capital, additional capital and profit of the enterprise.

The amount of own working capital can also be determined as the difference between the value of current assets (total of section II of the balance sheet) and the amount of short-term liabilities (items "Short-term loans and borrowings" and "Accounts payable" in section IV of the balance sheet).

Attracted sources are divided into permanent and temporary. The first include the so-called t stable liabilities. This is a constant amount of accounts payable to suppliers, according to accrued but not paid salaries, according to calculations with the budget. This is the value of the minimum, normal (not overdue) accounts payable, which is constantly present in the calculations of the enterprise. This is the most profitable way to attract funds into circulation from third parties. The second group of attracted funds includes credits and loans , attracted into circulation on the terms of urgency, payment and repayment.

The annual calculation of the need for working capital can lead to a change in the amount of working capital compared to the previous period. These changes show an increase (+) B or a decrease (-) in the amount of working capital at the end of the period compared to the beginning. The increase in working capital requires additional sources financing. Such sources can be sustainable liabilities and profit of the enterprise.

If it is possible to increase the normal accounts payable, that is, to change the terms of delivery and settlements on them in favor of your company, not to transfer taxes to the budget before the established deadline and with a large overpayment, provide for the even payment of wages within the timeframe established by law (at least twice per month), then stable liabilities can be the source of an increase in the need for working capital.

In other cases, such a source should be the retained earnings of the enterprise. With significant changes in business conditions, a significant increase in production volumes, they resort to borrowing funds for circulation. However, it should be borne in mind that borrowing in working capital is usually short-term. For a relatively short period of time, the company must have time to earn a profit in order to return the loans along with interest, and after payment there must be enough profit to cover the further need for working capital. If it is impossible to achieve such an increase in profit, the owners should be asked to increase the size of the authorized capital.

A sharp increase in the scale of the enterprise should be supported by financial resources not only in terms of investments in fixed assets, but also in working capital. Otherwise, interruptions in supply, settlements and, as a result, unprofitable activity of the enterprise, which can lead to bankruptcy, are inevitable.

An essential aspect of working with working capital is the calculation of indicators of the efficiency of using working capital. The financial position of the enterprise, the indicators of its liquidity and solvency depend on how quickly the funds invested in the turnover turn into real money.

The main indicators of the efficiency of the use of working capital include:

The turnover period is the number of days during which the circulating assets are returned to the enterprise, having completed the full cycle of procurement, production and sale of products. The turnover period is calculated by dividing the duration of the analyzed period by the turnover ratio. Since the production and commercial cycle ends with the sale, then the indicators of revenue from sales and the average value of working capital in the analyzed period are involved in the calculation of turnover:

where About ok - the duration of one turnover of working capital, days;

From ok - the average value of the working capital in rubles (calculated as the arithmetic mean of the amount of current assets at the beginning and end of the period or the average chronological);

R p - the value of the volume of sales for the analyzed period, rubles;

D - duration of the period, days.

The turnover ratio is the number of revolutions made by circulating assets for the analyzed period:

where K about - the turnover ratio;

D - the duration of the analyzed period, days;

About ok - turnover period, days.

The faster the advanced circulating assets turn around, the better the attainable result - with the help of the same amount of funds, more products are produced and sold.

Solvency - the ability to timely and fully fulfill payment obligations arising from trade, credit and other transactions of a monetary nature without liquidating long-term assets.

Liquidity - the ability of an organization to timely repay its debt obligations. Liquidity depends on the amount of debt, as well as the amount of liquid funds. Liquids - current working assets, working capital existing in the form of cash or assets that can be quickly and easily converted into cash, as well as debts, but not inventories. A company's liquid current assets indicate how much cash capital a company can have to meet creditors' claims for immediate debt repayment, if any.

Return on current assets - an indicator that provides a comprehensive assessment effective use working capital:

Thus, if a company seeks to maintain or increase the profitability of the invested working capital, then it should accelerate the turnover when the profitability of sales decreases, and, when the turnover slows down, increase the profitability of sales. In other words, by providing the buyer with a deferred payment (slowing down the turnover), you need to take a fee for this, and by receiving money in advance (accelerating the turnover), you can provide discounts. It is impossible to simultaneously provide discounts and give a deferred payment, this will lead to a drop in profitability and a loss of solvency of the supplier.

Indicators of the efficiency of the use of working capital are used in assessing the financial stability of an organization. The higher the indicators of turnover ratios, liquidity, solvency, the stronger its financial stability.

Immobilization of circulating assets should not be allowed - the diversion of circulating assets from the company's turnover for costs that are not provided for by the plan or do not have established sources of coverage.