Financial indicators of the efficiency of using working capital. Indicators characterizing the efficiency of using working capital

The efficiency of using working capital is measured by their turnover indicators.

The turnover of working capital is the duration of passage of working capital through individual stages of production and circulation.

The following indicators of working capital turnover are distinguished:

1. Turnover ratio;

2. Duration of one revolution;

3. Working capital utilization ratio. Financial and economic activities of an enterprise: Practical. manual.-- M.: Prior, 2010.-- 123 p.

In Russian economic practice, assessing the efficiency of use working capital carried out through indicators of its turnover. Since the criterion for assessing the effectiveness of working capital management is the time factor, indicators are used that reflect, firstly, the total turnover time, or the duration of one turnover in days, and, secondly, the speed of turnover.

The turnover ratio characterizes the level of production consumption of working capital. An increase in the direct turnover ratio, i.e. An increase in the turnover rate of working capital means that the enterprise uses working capital rationally and efficiently. A decrease in turnover indicates a deterioration in the financial condition of the enterprise. The turnover ratio is determined by dividing the volume of product sales at wholesale prices by the average balance of working capital at the enterprise:

Ko = Рп / OBS Sergeev I.V. Enterprise economy. Textbook. - M. - Finance and statistics. - 2008. -- 265 p.

Where Ko is the working capital turnover ratio, turnover;

OBS - average working capital balance, rub.

The duration of one turnover consists of the time spent by working capital in the sphere of production and the sphere of circulation, starting from the moment of acquisition of inventories and ending with the receipt of revenue from the sale of products manufactured by the enterprise. In other words, the duration of one turnover in days covers the duration of the production cycle and the amount of time spent on sales finished products, and represents the period during which working capital goes through all stages of circulation at a given enterprise. Financial art of an entrepreneur: Educational and practical work. hands / Auth. coll. under hand E. Stoyanova.-- M.: Perspective, 2010.-- 68 p.

The duration of one turnover (working capital turnover) in days is determined by dividing the working capital by one-day turnover, defined as the ratio of sales volume to the duration of the period in days or as the ratio of the duration of the period to the number of turnovers:

Formula for calculating the duration of working capital turnover:

where D is the duration of the working capital turnover, days;

T - duration of one period, days;

OK - working capital rubles;

Рп - volume products sold, rub.;

The shorter the duration of the circulation period or one turnover of working capital, the less working capital is required by the enterprise. The faster working capital circulates, the better and more efficiently they are used. Thus, the timing of capital turnover affects the total working capital requirement. Reducing this time is the most important area of ​​financial management, leading to increased efficiency in the use of working capital and an increase in their return. Financial and economic activity of an enterprise: Practical. manual.-- M.: Prior, 2010.-- 123 p.

The inverse turnover ratio or working capital load (fixation) coefficient shows the amount of working capital spent on each ruble of sold (commodity) products and is calculated as follows:

Kz = OBS / Rp

where Kz is the working capital load factor.

Comparison of turnover and load ratios over time allows us to identify trends in changes in these indicators and determine how rationally and effectively the working capital of the enterprise is used. Kovalev V.V. Financial analysis - M.: Finance and Statistics, 2012. - 432 p.

A general indicator of the efficiency of using working capital is its profitability indicator:

where P is profit

This indicator characterizes the profit received for each ruble of working capital and reflects the financial efficiency of the organization, since it is working capital that ensures the turnover of all resources.

Turnover indicators can be calculated for all working capital and for its individual elements, such as inventories, work in progress, finished and sold products, funds in settlements and accounts receivable (Table 1).

Table 1. Particular indicators of the use of working capital Kovalev V.V. Financial analysis - M.: Finance and Statistics, 2012. - 432 p.

	Index	Characteristic	Calculation formula
	Inventory turnover	shows the rate at which inventory is produced and released from the warehouse	Production costs/average inventory
	Work in progress turnover	Shows the length of time required to transform semi-finished products into finished products	Goods in stock / average annual work in progress
	Turnover of finished products	Shows the turnover rate of finished products	Volume of products sold (shipped) / average annual value of finished products
	Turnover of funds in calculations	Shows the expansion or reduction of commercial credit provided by the organization	Volume of products sold (shipped) / average value accounts receivable

Thus, the indicators make it possible to conduct an in-depth analysis of the use of own working capital (they are called private turnover indicators).

The effect of accelerating the turnover of working capital is expressed in the release and reduction of the need for them due to the improvement of their use. The release of working capital as a result of accelerating their turnover can be absolute and relative. Raitsky K.A. Enterprise Economics - M.: Marketing - 2009. - 693 p.

The absolute release of funds occurs in cases where, when implementing the planned production program, the actual amount of working capital at the enterprise is less than the planned need for them. The funds released as a result of the acceleration of turnover are concentrated in the current account in the form of free cash resources. Absolute release reflects a direct reduction in the need for working capital. Lyalin V.A., Vorobiev P.V. Financial management (company financial management).-- St. Petersburg, 2008.-- 108 p.

Absolute release occurs when

Co.fact< Со.план, Vреал = const ,

where Co.fact is the actual balances of the OS;

Co.plan - planned balances of the operating system;

Vreal - sales volume.

Absolute release is determined by the formula:

AB = Co.fact - Co.plan.

The release of funds will be relative if, simultaneously with the acceleration of turnover of working capital, an increase in the production program is planned and the released funds should be used to cover the increase in working capital due to an increase in output. Relative release reflects both the change in the amount of working capital and the change in the volume of products sold. To determine it, you need to calculate the need for working capital for the reporting year based on the actual turnover of product sales for this period and turnover in days for the previous period. The difference gives the amount of funds released.

In individual industries, the rate of turnover of funds is different, which follows from the technical and economic characteristics of a particular industry, the characteristics of production conditions and financial organization.

Thus, in industries with a long production cycle (shipbuilding, turbine construction, etc.), working capital circulates at a lower speed than in industries such as food and light, where the duration of the production cycle is short. Lyalin V.A., Vorobiev P.V. Financial management (company financial management).-- St. Petersburg, 2008.-- 108 p.

The release of working capital has a number of positive effects:

Products are produced at lower working capital costs;

Material resources are released;

The receipt of profit deductions into the budget is accelerating;

The financial position of the enterprise improves, because the financial resources released as a result of the above-plan acceleration of the turnover of funds remain at the disposal of the enterprise until the end of the year and can be successfully used (profitably invested). Manukovsky A.B., Khartukov B.M. Economic conditions: How to study the modern market: Proc. allowance.-- M.: Shk. international business MGIMO, 2009.--127 p.

Thus, the existing system of evaluation indicators of the efficiency of using working capital makes it possible to identify reserves for increasing turnover and profitability of working capital, as well as reduce the duration of production and financial cycles.

To analyze individual factors, capital management techniques in organizations use capital utilization ratios, which are presented in Table 2.

Table 2. Capital utilization ratios Financial and economic activities of the enterprise: Practical. manual.-- M.: Prior, 2010.-- 123 p.

Indicators	Methodology for calculating indicators
Autonomy coefficient (characterizes the share of ownership of the owners of the enterprise in the total amount of advanced funds)
Capital immobilization coefficient (shows what share of immobilized assets accounts for 1 ruble of equity capital)
Inventory coverage ratio with own working capital (characterizes the degree of sufficiency of own funds to cover inventory)
Working capital coverage ratio from own sources (shows what part current assets financed from its own sources and does not require borrowing)
Total liquidity ratio (shows the company’s ability to pay off current (short-term) obligations using only current assets)
Critical liquidity ratio (shows what part of the organization’s short-term liabilities can be immediately repaid at the expense of Money, funds in short-term securities, as well as proceeds from settlements)
Absolute liquidity ratio (shows what part of the short-term debt the company can pay off in the near future)
Net working capital (shows the excess of current assets over short-term liabilities)

Thus, an analysis of the coefficients given in Table 1 shows how strongly it depends on borrowed funds, how freely it can maneuver its own capital, without the risk of paying extra interest and penalties for non-payment or incomplete payment of accounts payable on time. This information is important, first of all, for the management of the organization when making financial decisions, as well as for counterparties - suppliers of raw materials and consumers of manufactured goods (works, services). It is important for them to know how strong the financial security of the uninterrupted process of the organization’s activities is. The turnover of working capital may accelerate or slow down. When turnover slows down, additional funds are involved in turnover. The effect of accelerating turnover is expressed in a reduction in the need for working capital due to improved use and savings, which affects the increase in production volumes, and as a result, financial results. Financial art of an entrepreneur: Educational and practical work. hands / Auth. coll. under hand E. Stoyanova.-- M.: Perspective, 2010.-- 68 p.

Acceleration of turnover leads to the release of part of the working capital (material resources, cash), which are used either for production needs or for accumulation in a current account. Ultimately, the solvency and financial condition of the enterprise improves. Holt R.N. Fundamentals of financial management: Trans. from English - M.: Delo, 2011. - 128 p.

The effective use of working capital has an active influence on the progress of production, financial results and the financial condition of the enterprise. The released material and monetary resources are an additional internal source of further investment, helping to increase the financial stability of the enterprise and its solvency. Under these conditions, the company fulfills its obligations in a timely manner and in full.
The efficiency of using working capital is characterized by a system of indicators:
Own working capital (own working capital) - characterizes that part of current assets that is financed from own funds or long-term liabilities.

SOK = Current assets - Current liabilities,

where SOK is own working capital;
JUICE must be gt; 0.

Having your own working capital is a necessary condition for ensuring the financial stability of an enterprise. It is recommended to set the minimum value of this indicator at 10% of the total volume of current assets.
The higher this indicator, the more stable the financial condition of the enterprise, the more opportunities it has to pursue an independent financial policy. However, having a ratio that is too high (more than 50% of current assets) is not very good, since the company uses funds ineffectively.
Working capital turnover is the duration of one complete circulation of funds, from the acquisition of inventories to the sale of finished products and the receipt of money in the company's current account.
The faster working capital goes through these phases, the more products an enterprise can produce using the same amount of working capital. Turnover depends on the specifics of production and sales conditions of products, features in the structure of working capital and other factors.
The turnover rate of working capital is calculated using the following indicators:
2.1. Turnover speed (turnover ratio) - the number of revolutions that working capital and its individual elements make during the analyzed period.
The turnover ratio is calculated using the following formula:

Ko = B / Sob,

where Ko is the turnover ratio of current assets;
B - revenue from sales of products;
Sov - average value of current assets for the analyzed period = (current assets at the beginning of the period + current assets at the end of the period) / 2.

2.2. The load factor of current assets is an indicator inverse to the turnover ratio. It shows how much working capital is per 1 ruble. revenue from product sales. The load factor is calculated using the following formula:

Kzos = 1 / Ko, or Kzos = Sob / B,

where Kzos is the load factor of current assets;

Ko - turnover ratio of current assets;

2.3. Turnover period (the duration of one turnover of working capital) is the average period during which money invested in production and business operations is returned.
The duration of one turnover of working capital is calculated by the formula:

Ext = T? Sob/V,

where Dob is the duration of one turnover of current assets, in days;
T - number of days in the analyzed period (year - 360 (365) days, quarter - 90 days);
Sob - the average value of current assets for the analyzed period;
B - revenue from sales of products.

There are general and private turnover.

General turnover characterizes the intensity of use of working capital in all phases of the circulation, without reflecting the characteristics of the circulation of individual elements or groups of working capital.
Partial turnover reflects the degree of use of working capital in each individual phase of the circulation, in each group, as well as for individual elements of working capital (inventory turnover, accounts receivable turnover, etc.).
The faster working capital circulates, the better and more efficiently they are used. Accelerating turnover leads to the release of part of the working capital (material resources, cash), which can be used by the enterprise for further expansion of production, development of new types of products, improvement of supply and sales and other measures to improve business activities.
The relative release of working capital is the difference between the organization's working capital requirement, calculated on the basis of the planned or actually achieved turnover in the reporting year, and the amount with which the organization ensured the implementation of the production program in the next year.
The relative release of working capital as a result of a change in the duration of one revolution is determined as follows:

Vos = (Dobf - Dobbaz) ? Vf,

where Dobf is the turnover period of working capital in the reporting period, in days;
Dobbaz - the period of turnover of working capital in the base (previous) period, in days;
Vf - average daily revenue from product sales in the reporting period.

Relative release of working capital = (Dobf - Dobbaz) ? Vf = (22.5 - 25.7) ? 24 million / 360 days = -213,333 rub.

The turnover of working capital may accelerate or slow down. When turnover slows down, additional funds are involved in turnover. The effect of accelerating turnover is expressed in a reduction in the need for working capital due to improved use and savings, which affects the increase in production volumes and, as a consequence, financial results.
Factors that contribute to increasing the efficiency of using working capital include:
increase in production and sales volumes;
rational organization of production reserves (resource conservation, optimal rationing, improvement of the supply of raw materials);
reducing the presence of working capital in work in progress (overcoming the negative trend towards a decrease in capital productivity, accelerating technological process, introduction of new technologies);
effective organization of circulation (improvement of the payment system, rational organization of sales, systematic control of receivables).

More on topic 9.2. Indicators of efficiency in the use of working capital:

1. Topic 2. FIXED CAPITAL AND THE EFFECTIVENESS OF ITS USE. WORKING CAPITAL AND THE EFFECTIVENESS OF ITS USE

The need to analyze and evaluate working capital by the creditor bank

In general, we can say that current assets serve the current activities of the enterprise, and the entire operating cycle, uninterrupted operation and continuity of the enterprise depend on their condition. Therefore, analysis of changes in the structure of current assets is mandatory stage assessing the solvency of the borrowing enterprise.

The need to analyze the working capital of the borrower enterprise is due to the fact that this type of asset primarily ensures the solvency of the enterprise. Problems in managing the borrower's working capital lead to the following risks, which should be known to the creditor bank:

Insufficient funds. The enterprise must have funds to conduct current activities, in case of unforeseen expenses and in case of likely effective capital investments. Lack of funds in right moment is associated with the risk of interruption of the production process, possible failure to fulfill obligations, or loss of possible additional profits.

Insufficient own credit capabilities. This risk is due to the fact that when selling goods on credit, buyers can pay for them within several days or even months, resulting in the formation of receivables at the enterprise. As a result, there is an immobilization of one's own working capital, and if it exceeds a certain limit, it can also lead to a loss of liquidity and even a stoppage of production.

Insufficient industrial reserves. The enterprise must have a sufficient amount of raw materials to carry out efficient process production; there should be enough finished products to fulfill all orders, etc. Sub-optimal inventory levels carry the risk of additional costs or production interruption.

Excessive working capital. Since its value is directly related to financing costs, maintaining excess assets reduces income. Possible various reasons formation of excess assets: slow-moving and stale goods, the habit of “keeping in reserve”, etc.

After conducting the analysis, the lending bank must take into account that the most significant phenomenon that potentially carries the risk of the borrower’s inability to service the loan received is the following:

High level of accounts payable;

Suboptimal combination between short-term and long-term sources of borrowed funds;

High share of long-term debt capital.

Analysis of the efficiency of using working capital of business entities

The efficiency of using working capital is characterized by the following system of economic indicators:

Working capital turnover;

Load factor of funds in circulation;

Return on working capital indicator;

Liquidity ratios;

Return on current assets;

Calculation of the degree of financial stability depending on the degree of provision of reserves and costs by various types of sources;

General analysis of the state of the enterprise's working capital.

Considering the turnover of working capital, it should be noted that the financial position of the enterprise directly depends on how quickly the funds invested in assets turn into real money, that is, on the turnover of working capital.

The duration of one turnover of working capital is calculated by the formula:

where О – duration of turnover, days;

C – working capital balances (average or as of a specific date), rub.;

T – volume of commercial products, rub.;

D – number of days in the period under review, days.

A decrease in the duration of one revolution indicates an improvement in the use of working capital.

The number of turnovers for a certain period, or the working capital turnover ratio (K O), is calculated by the formula:

In addition to these indicators, the return on working capital indicator can also be used, which is determined by the ratio of profit from sales of the enterprise's products to the balance of working capital.

To assess solvency in the short term, the following indicators are calculated:

Coverage ratio (total). Gives overall assessment asset liquidity, showing how many rubles of the enterprise’s current assets account for one ruble of current liabilities. The logic for calculating this indicator is that the company pays off short-term liabilities mainly at the expense of current assets; therefore, if current assets exceed current liabilities, the enterprise can be considered to be operating successfully (at least in theory). The size of the excess is set by the coverage coefficient.

where A1 is the most liquid assets - the company’s cash and;

A2 – quickly realizable assets – accounts receivable and other assets;

A3 - slow-moving assets - inventories (without expenses of future periods of the balance sheet of Form No. 1), as well as items from section I of the balance sheet asset “Long-term financial investments” (reduced by the amount of investments in the authorized capital of other enterprises);

P1 - the most urgent obligations - accounts payable, other liabilities, as well as loans not repaid on time;

P2 – short-term liabilities – short-term loans and borrowed funds.

The value of the indicator can vary significantly by industry and type of activity, and its reasonable growth in dynamics is usually considered as a favorable trend. In Western accounting and analytical practice, the critical lower value of the indicator is given - 2; however, this is only an indicative value, indicating the order of the indicator, but not its exact normative value.

If the coverage ratio is high, then this may be due to a slowdown in the turnover of funds invested in inventories and an unjustified increase in accounts receivable.

A constant decrease in the ratio means an increasing risk of insolvency. It is advisable to compare this indicator with the average values ​​for groups of similar enterprises.

However, this indicator is very aggregated, since it does not take into account the degree of liquidity of individual elements of working capital.

The quick liquidity ratio (strict liquidity) is an intermediate coverage ratio and shows what part of current assets minus inventories and receivables, payments for which are expected more than 12 months after the reporting date, is covered by current liabilities.

The quick liquidity ratio is calculated using the formula:

It helps to assess the company's ability to repay short-term obligations in the event of a critical situation when it is not possible to sell inventories. This indicator is recommended in the range from 0.8 to 1.0, but can be extremely high due to an unjustified increase in accounts receivable.

The absolute liquidity ratio is determined by the ratio of the most liquid assets to current liabilities and is calculated using the formula:

This ratio is the most stringent criterion of solvency and shows what part of the short-term debt the company can repay in the near future. Its value should be no lower than 0.2. If a company can currently repay its debts by 20–25%, then its solvency is considered normal.

The equity ratio characterizes that part equity enterprise, which is the source of covering the current assets of the enterprise (that is, assets with a turnover of less than one year). This is a calculated indicator that depends both on the structure of assets and on the structure of sources of funds.

The indicator is especially important for enterprises engaged in commercial activities and other intermediary operations. Other than that equal conditions the growth of this indicator over time is considered a positive trend.

The main and constant source of increasing own working capital is profit. Return on current assets shows how many rubles of net profit are per 1 ruble of current assets.

Return on current assets is calculated using the following formula:

where RTA is the return on current assets,

PE – net profit of the enterprise,

АII, – the average value of section II of the enterprise’s balance sheet – current assets.

The most general indicator of the financial stability of an enterprise is the surplus or lack of sources of funds for the formation of reserves and costs. This surplus or deficiency is formed as a result of the difference in the size of sources of funds and the amount of inventories and costs.

Availability of own working capital E C. This indicator is calculated using the following formula:

E C = K + P D - A B

where K – capital and reserves;

P D – long-term loans and borrowings;

A B – non-current assets.

The total value of the main sources of formation of reserves and costs E O.

E O = E C + M

where M – short-term loans and borrowings.

Based on the above indicators, indicators of the provision of reserves and costs with sources of their formation are calculated.

Surplus (+) or deficiency (-) of own working capital ±E C:

±E C = E C – W

where Z – reserves.

Excess (+) or deficiency (-) of the total value of the main sources for the formation of reserves and costs ±E O:

±E O = E O – W

According to the degree of financial stability of the enterprise, four types of situations are possible:

Absolute stability of financial condition. This situation is possible under the following conditions:

Z< Е С + М

Normal stability of financial condition, guaranteeing the solvency of the enterprise. It is possible provided:

An unstable financial situation is associated with a violation of solvency and occurs under the condition of:

Z = E C + M + I O

where I O are sources that ease financial tension (temporarily available own funds, borrowed funds, bank loans for temporary replenishment of working capital and other borrowed funds).

Crisis financial condition:

W > E S + M

It is proposed to carry out a general analysis of the state of the enterprise's working capital by combining assessment indicators into a single table, where each indicator is assigned its own score and their sum rating is determined. Next, the deviation of the obtained score from the maximum is determined. possible meaning, and appropriate conclusions are drawn (Table 1) .

Indicator name	Minimum value		Average value		Maximum value
	meaning		meaning		Meaning
2. Current liquidity
3. Urgent liquidity
4. Absolute liquidity

Interesting are the approaches to assessing working capital, proposed in the work of L.Yu. Filobokova

- (K1, weight value 8);

Coefficient of provision with own working capital (K2, weight value 8);

Absolute liquidity ratio (K3, weight value 7);

Working capital mobility coefficient (K4, weight value 7);

Share of real net working capital in current assets (K5, weight value 6);

Return on working capital (K6, weight value 3);

Working capital turnover ratio (K7, weight value 5);

Inventory turnover ratio (K8, weight value 1-3);

Accounts receivable turnover ratio (K9, weight value 1-3);

Net cash flow profitability (K10, weight value 9).

An integrated indicator assessing working capital is calculated using the formula

Where K are weighting coefficients, Xij is the ratio of the value of a particular indicator to its maximum value for the total set of enterprises under study.

T.B. Kupriyanova, in her dissertation devoted to the development of recommendations for working capital management, also suggests using an integral indicator, the coefficients for calculating which are presented below:

Working capital turnover ratio (weight value 20);

Current ratio (weight value 20);

Own funds maneuverability coefficient (weight value 15);

Coefficient of provision of current assets with own working capital (weight value 10);

Accounts payable turnover ratio (weight value 10);

Debt to equity ratio (weight value 10);

Return on working capital ratio (weight value 10).

Analysis of working capital statusJSC "Enterprise A"

We will analyze the working capital of OJSC "Enterprise A" using the above methodological approaches ( table 2) .

Table 2. Analysis of changes in the working capital of the branchJSC "Enterprise A"

Title of articles
including:
finished products and goods for resale
Future expenses
including buyers and customers
Short-term financial investments
Cash
Other current assets
TOTAL for section II

As we can see, during the analyzed period, the volume of working capital of JSC Enterprise A increased by 534,205 thousand rubles.

The following items increased as part of working capital:

Cash – by 981,404 thousand rubles;

Other current assets – by 44,232 thousand rubles.

There was a decrease in other items.

An analysis of the working capital structure of the branch of OJSC "Enterprise A" is presented in table 3 .

Table 3.Analysis of the working capital structure of JSC "Enterprise A"

Title of articles
including:
raw materials, supplies and other similar assets
Future expenses
Value added tax on purchased assets
Accounts receivable (payments for which are expected more than 12 months after the reporting date)
including buyers and customers
Accounts receivable (payments for which are expected within 12 months after the reporting date)
including buyers and customers
Short-term financial investments
Cash
Other current assets
TOTAL for section II

The highest share in the structure of working capital belongs to short-term receivables – 49.87% in 2011. It should be noted that compared to 2009, the share of this item decreased by 9.48%.

During the analyzed period, there was a slight decrease in the share of reserves - from 21.75% in 2009 to 17.50% in 2011.

The share of cash increased during the analyzed period from 9.22% in 2009 to 25.74% in 2011, which indicates an increase in highly liquid items in the working capital structure of OJSC Enterprise A.

There is also an increase in the share of other current assets - from 2.74% in 2009 to 3.27% in 2011.

In general, the growth of working capital of OJSC “Enterprise A” for the analyzed period occurred due to the growth of cash and other current assets.

In order to characterize the main stages of cash circulation during the production activities of an enterprise, we will analyze the financial and operating cycles. On Figure 1 The stages of circulation of funds of OJSC "Enterprise A" in 2011 are presented.

Figure 1. Stages of cash circulation of OJSC "Enterprise A"

1 – Receipt of raw materials; 2 – Shipment of finished products; 3 - Payment for raw materials; 4 – receiving funds from buyers

The logic of the presented scheme is as follows. The operating cycle characterizes the total time during which financial resources are stored in inventories and accounts receivable.

The financial cycle, or cash circulation cycle, represents the time during which funds are withdrawn from circulation, that is, the financial cycle is shorter by the average time of circulation of accounts payable.

The reduction in operating and financial cycles over time is considered a positive trend. We will make calculations of these indicators in table 4.

The duration of the financial cycle is the time during which funds are withdrawn from circulation. In the branch of OJSC "Enterprise A", its duration increased over the analyzed period by 11 days - from 6 days in 2009 to 17 days in 2011, which is a negative trend, since there was an increase in the receivables turnover period.

Table 4. Analysis of the operating and financial cycles of JSC "Enterprise A"

Indicators
1. Time of circulation of accounts payable, days (line 620 f. No. 1)	Cost price
2. Time of circulation of inventories, days (line 210+220+270 f. No. 1)	Cost price
3. Time of circulation of receivables, days (line 230+240 f. No. 1)	DZsr.*365/Revenue
4. Duration of the enterprise’s operating cycle, days
5. Duration of the financial cycle of the enterprise, days

The operating cycle characterizes the time during which financial resources are immobilized in inventories and receivables. Its duration at the enterprise also increased - from 37 days in 2009 to 54 days in 2011, which can be characterized as a negative trend.

In order to assess the solvency of an enterprise and analyze the liquidity of the balance sheet, it is necessary to determine the degree to which the enterprise's liabilities are covered by assets, the period of conversion of which into cash corresponds to the period of repayment of the obligations.

Depending on the degree of liquidity, that is, the ability and speed of conversion into cash, the assets of the enterprise are divided into groups. Let's analyze the liquidity of the balance sheet of OJSC Enterprise A. To do this, we will group the assets of the balance sheet by the degree of liquidity, and the liabilities of the balance sheet by the degree of urgency of obligations in descending order, using table 5 .

Table 5. Analysis of liquidity of the balance sheet of JSC Enterprise A

	Index
	The most liquid assets (line 250 + line 260)
	Quickly sold assets (p. 230 + p. 240 + p. 270)
	Slowly selling assets (p. 210 + p. 220)
	Hard to sell assets (p. 190)
	Current liabilities (page 620)
	Short-term loans and borrowings (line 610 + 630 + 640 +660)
	Long-term liabilities (p. 590)
	Constant liabilities (page 490 - page 252)

Let's consider the ratio of asset and liability items on the balance sheet of JSC Enterprise A for 2009–2011:

Comparison of the most liquid (A 1) and quickly realizable assets (A 2) with the most urgent liabilities (P 1) and short-term liabilities (P 2) allows you to assess current liquidity.

As we see, during the analyzed period, OJSC “Enterprise A” observed only the second inequality - the excess of quickly realizable assets over short-term liabilities, which indicates the sufficiency of quick liquidity. Since the first inequality (the excess of the most liquid assets over the most urgent liabilities) is not met, the absolute liquidity standard is not met.

Comparing slow-moving assets with long-term liabilities reflects forward-looking liquidity, which is also insufficient.

The fulfillment of the fourth inequality (the excess of permanent liabilities over permanent assets) indicates that the minimum condition for financial stability is met - the presence of the enterprise's own working capital. During the analyzed period, OJSC Enterprise A did not meet this condition.

For the most detailed analysis, we will calculate the liquidity indicators of the balance sheet of OJSC "Enterprise A" in table 6 .

Table 6. Analysis of liquidity indicators of the branch balance sheetJSC "Enterprise A"

Indicator name	Calculation formula	Standard
Current ratio
Quick ratio
Absolute liquidity ratio
The amount of own working capital	page 190 f.No.1
Maneuverability coefficient of own working capital	p. 260 / (p. 490 - p. 190) f. No. 1
Share of working capital in assets	p. 290 / p. 300 f. No. 1
Share of own working capital in working capital	(p. 490- p. 190) / p. 190
Share of inventories in working capital	(p. 210+ p. 220) / p. 290
Share of own working capital in covering inventories and costs	(page 490 - page 190) / (page 210 + page 220)

Analysis of the data presented in Table 6 showed:

The current liquidity ratio of JSC "Enterprise A" does not meet the standard in 2009 and 2011;

The quick liquidity ratio did not meet the standard in 2009 - it was below the required value by 0.15 points in 2009;

The absolute liquidity ratio was below the standard in 2009;

The value of own working capital has a negative value, which in 2011 amounted to minus 3,767,852 thousand rubles;

The maneuverability coefficient of own working capital decreased during the analyzed period by 0.29 or 209%, which indicates that cash is fully included in the composition of own working capital, and its share is 39%;

The share of working capital in assets increased by 1% during the analyzed period, which is associated with an increase in cash and other current assets;

The share of inventories in current assets decreased from 24% in 2009 to 18% in 2011;

Inventories and expenses of OJSC Enterprise A for the analyzed period are not covered by its own working capital.

Thus, for 2009–2011, the liquidity indicators of the balance sheet of OJSC “Enterprise A” generally do not correspond to the normative ones.

Let's calculate the equity ratio using table 7.

Table 7. Analysis of the solvency of JSC "Enterprise A"for 2009–2011

Indicator name	Calculation formula	Standard
Current ratio
Own funds ratio

As we see, OJSC “Enterprise A” for 2009–2011 enough level own funds.

In market conditions, the role of profitability indicators is great. An analysis of the profitability of working capital of OJSC "Enterprise A" is presented in table 8.

Table 8. Analysis of the profitability of working capital of the branchJSC "Enterprise A"

Indicators
1.Net profit, thousand rubles.
2.Current assets, thousand rubles.
3.Profitability of current assets (item 1 / item 2)*100,%
4. Accounts receivable, thousand rubles.
5. Profitability of accounts receivable (item 1 / item 4) * 100, %
6. Inventories and costs, thousand rubles.
7. Profitability of inventories and costs (item 1 / item 6) * 100, %
8. Short-term financial investments, thousand rubles.
9. Profitability of short-term financial investments (item 1 / item 8) * 100, %

As the data presented in Table 8 show, there is a decrease in all indicators of profitability of working capital due to a decrease in the net profit of the enterprise.

Thus, the profitability of all current assets decreased in 2009–2011 from 15.82% to 2.51%, the profitability of inventories and costs from 66.51% to 13.79%, the profitability of accounts receivable - from 24.69% to 4. 76%.

Let's analyze the profitability of all assets of the enterprise using a factor model based on the method chain substitutions (Table 9) :

Table 9. Analysis and assessment of the profitability of assets of JSC "Enterprise A", thousand rubles.

Indicators
1. Profit from sales, P
2. Sales revenue, N
3. Total cost of products sold, Sp
4. Average inventory balances, including VAT, 3
5. Average balances of current assets, OA
6. Average asset balances, A
Estimated data - factors
7. Revenue per 1 rub. cost (item 2: item 3), X
8. Share of current assets in the formation of assets (clause 5: clause 6), Y
9. Share of inventories in the formation of current assets (clause 4: clause 5), Z
10. Inventory turnover in revolutions (clause 3: clause 4), L
11. Return on assets, rа
12. Change in return on assets to a variable base
Assessing the influence of factors on changes in return on assets
13. Revenue per 1 rub. cost, X
14. Share of current assets in the formation of assets, Y
15. Share of inventories in the formation of current assets, Z
16. Inventory turnover in revolutions, L
Cumulative influence of all factors

The results of the calculations allow us to conclude that in all analyzed periods, sales revenue was higher than cost. The company received its greatest profit in 2009.

The share of current assets in the formation of assets throughout the entire period under study remains virtually unchanged.

The dynamics of the indicator of the share of inventories in the formation of current assets indicates that over the three years under study there was a gradual decrease from 24% to 18%. This figure reached its maximum in 2009.

The fourth factor of the model - inventory turnover - shows how many turnovers inventories make during the reporting year in the process of production and sales of products. The dynamics of this indicator shows that the organization has developed unfavorable circumstances that contribute to a decrease in the efficiency of inventory use. This is understandable if you look at the dynamics of sales revenue and inventory.

Revenue from product sales is growing at a slower pace than inventories. In 2011, the inventory turnover rate decreased and amounted to 26.93 turns per year, that is, approximately 13.4 days. It should be noted that this indicator at the beginning of the analyzed period was at the level of 11.3 days.

The influence of each individual factor on the performance indicator can be determined using factor analysis. Its results are presented in the final part of Table 3.6.

The data obtained can be commented on as follows.

In 2010, compared to 2009, the main factor that influenced the growth of profitability of assets was price - the share of revenue per 1 ruble of cost. As a result of its impact, return on assets decreased by 6%.

The overall influence of factors on the growth of profitability of current assets in 2009–2010 was minus 7%.

In 2011, the factor of the share of revenue per 1 ruble of cost ceased to play a decisive role in changing the performance indicator. Due to its slight growth, return on assets increased by 3%.

The change in inventory turnover had a negative impact and amounted to minus 1%.

Also, a decrease in the share of inventories in the formation of current assets had a negative impact on the growth of profitability of assets. As a result of its impact, return on assets decreased by 1%.

The overall influence of factors on the growth of profitability of current assets in 2010–2011 was 1%.

The results of the analysis show that external factors have a great influence on changes in the level of production efficiency. At the same time, the organization has internal reserves for increasing production efficiency, for example, by optimizing the structure of assets, increasing their turnover, etc. Since the enterprise administration is unable to influence the change external factors, then the greatest efforts must be directed to the use of internal reserves.

Thus, using the proposed methodology, we analyzed in sufficient detail the influence of various factors on changes in the level of profitability of the organization’s main production activities.

We will conduct a general analysis of the state of working capital of the branch of OJSC "Enterprise A" by combining the assessment indicators into a single table 10.

Indicator name
	meaning		meaning		meaning
1. Return on current assets, %
2. Current liquidity
3. Urgent liquidity
4. Absolute liquidity
5. Growth rate of the most liquid assets, %
6. Growth rate of quickly sold assets, %
7. Growth rate of slowly selling assets, %
8. Share of working capital financing costs in their total amount, %

The rating of the working capital status of OJSC "Enterprise A" for 2009–2011 increased by 1 point, and its value by 2011 amounted to 23 points. This value refers to the average, that is, the state of working capital in the analyzed period is normal with a tendency to improve its structure.

Important when managing working capital is the process of rationing working capital and monitoring compliance with the calculated standards. The need to analyze compliance with standards is based on the fact that an enterprise can invest a significant amount of funds, for example, in inventories, which will disrupt its liquidity.

We will calculate the working capital needs of JSC Enterprise A based on available data on sales volume and working capital turnover period (Table 11) .

Table 11. Calculation of working capital ratioJSC "Enterprise A"

Indicator name
Sales volume (revenue from sales), thousand rubles.
Actual average value of current assets, thousand rubles.
Period of turnover of working capital, days
Working capital turnover ratio
Requirement for working capital = Revenue of the reporting period / Turnover of working capital of the previous period
Deviation of actual values ​​from calculated values

As we can see, in general, the available volume of working capital at the enterprise exceeds the calculated standard. In 2010, the excess amounted to 863,572 thousand rubles, and in 2011 – 1,639,643 thousand rubles.

Let's consider which items of working capital accounted for the excess over the standard. To do this, we will calculate the turnover of individual items of working capital (Table 3.2) and the need for working capital of OJSC “Enterprise A” for 2010 and 2011 and analyze deviations from actual data (Table 12) .

Table 12. Calculation of working capital turnover of JSC Enterprise A

Indicator name
1. Sales revenue
2. Average value of current assets
3. Average inventory and costs
4. Average amount of accounts receivable
5. Average amount of cash and short-term financial investments
6. Turnover of current assets (clause 1 / clause 2)
7. Inventory turnover and costs (clause 1 / clause 3)
8. Accounts receivable turnover (clause 1 / clause 4)
9. Cash turnover and short-term financial investments (clause 1 / clause 5)

The planned volume of financial needs is calculated using the formula:

Table 13. Calculation of financial needs of JSC "Enterprise A"

Indicators			Deviation			Deviation
1. Average inventory and costs
2. Average amount of accounts receivable
3. Average amount of cash and short-term financial investments
4. Average value of current assets

As we can see, for all items of working capital, the actual values ​​are higher than the calculated standards. Consequently, the reserves for increasing the efficiency of using working capital of OJSC “Enterprise A” are:

Acceleration of working capital turnover;

Increasing the profitability of services.

Thus, as a result of the analysis, the following general conclusions can be drawn:

There is a decrease in the economic turnover of OJSC “Enterprise A” for 2009–2011;

During the analyzed period, the volume of working capital of JSC Enterprise A increased by 534,205 thousand rubles;

In general, the growth of the current assets of OJSC “Enterprise A” for the analyzed period was due to the growth of cash and other current assets;

In OJSC "Enterprise A", the duration of the financial cycle increased over the analyzed period by 11 days - from 6 days in 2009 to 17 days in 2011, which is a negative trend, since there was an increase in the period of receivables turnover;

The duration of the operating cycle at the enterprise also increased - from 37 days in 2009 to 54 days in 2011, which can be characterized as a negative trend;

For 2009–2011, the liquidity indicators of the balance sheet of OJSC “Enterprise A” generally do not correspond to the normative ones;

In 2009, normal financial stability was observed, since the amount of reserves and costs exceeded the value of own working capital, but was covered by the main sources for the formation of reserves and costs;

There is a decrease in all indicators of profitability of working capital due to a decrease in the net profit of the enterprise;

The state of working capital in the analyzed period can be assessed as normal with a tendency to improve its structure.

Estimate:

2 0

Availability commercial organization own working capital, its composition and structure, turnover rate and efficiency of use of working capital largely determine the financial condition of the enterprise and the stability of its position in the financial market, the main indicators of which are:
- solvency, i.e. the ability to repay your debt obligations on time;
- liquidity - the ability to make necessary expenses at any time;
- opportunities for further mobilization of financial resources.
Effective use of working capital plays a role
a major role in ensuring the normalization of the enterprise, increasing the level of profitability of production and depends on many factors. IN modern conditions huge Negative influence The efficiency of the use of working capital and the slowdown in their turnover are influenced by factors of the crisis state of the economy:
- reduction in production volumes and consumer demand;
- high inflation rates;
- severance of economic ties;
- violation of contractual and payment discipline;
- high level of tax burden;
- decreased access to credit due to high bank interest rates.
All of these factors influence the use of working capital, regardless of the interests of the enterprise. At the same time, enterprises have internal reserves for increasing the efficiency of using working capital, which they can actively influence. These include:
- rational organization of production reserves (resource conservation, optimal rationing, use of direct long-term economic ties);
- reducing the presence of working capital in work in progress (overcoming the negative trend towards a decrease in capital productivity, introducing the latest technologies, especially waste-free ones, updating the production apparatus, using modern, cheaper construction materials);
- effective organization of circulation (improving the payment system, rational organization of sales, bringing consumers of products closer to their manufacturers, systematic control over the turnover of funds in settlements, fulfilling orders through direct connections).
A general indicator of the efficiency of using working capital is the profitability indicator (Roc), calculated as the ratio of profit from sales of products (#рп) or other financial result to the average amount of working capital (C):
p Yarp 100 “ok _ r
""OK
Example. Substituting the conditional data given in table. 6.6, you can calculate the return on working capital for the base and planning periods.
Table 6.6. Initial data for calculating working capital turnover
Indicators Legend Basic
period Planned
period Increase (decrease)
1. Product sales volume or sales revenue, thousand rubles. BP 24,840 25,920 1,080
2. Profit (loss) from sales, thousand rubles. pRP 5 150 6 050 900
3. Average working capital, thousand rubles* 10,074 10,080 6
4. Number of days in period D 360 360
* The value of average working capital is determined as the sum of working capital at the beginning and end of the year, divided by 2.
„ „ 6050100%,p
Planned period: -10,080- =
This indicator characterizes the amount of profit received for each ruble of working capital and reflects the financial efficiency of the enterprise, since it is the working capital that ensures the turnover of all resources in the enterprise.
In Russian economic practice, the efficiency of using working capital is assessed through indicators of its turnover. Since the criterion for assessing the effectiveness of working capital management is the time factor, indicators are used that reflect, firstly, the total turnover time, or the duration of one turnover in days; secondly, the turnover rate.
The duration of one turnover consists of the time spent by working capital in the sphere of production and the sphere of circulation, starting from the moment of acquisition of inventories and ending with the receipt of revenue from the sale of products manufactured by the enterprise. In other words, the duration of one turnover in days covers the duration of the production cycle and the amount of time spent on the sale of finished products, and represents the period during which working capital passes through all stages of the circulation at a given enterprise.
The duration of one turnover (working capital turnover) in days (Obok) is determined by dividing the working capital (Sok) by one-day turnover, defined as the ratio of sales volume (RP) to the duration of the period in days (D) or as the ratio of the duration of the period to the number of turnovers ( Code):
06OK=SOK:^=^RP"D=1^=L"K3‘
Example. To calculate the duration of one revolution in days, 3 methods are used (Table 6.7).
Period 1st method
PC g rp Side = Sov. 2nd method O^ok =DKob 3rd method Obok=D.Kg
Basic, fri l.24 840,
10 0/4: = 146 days
360 360:2.466 = = 146 days 360*0.406 = = 146 days
Planned 25 920
10,080: * = 140 days 360,360: 2.571 = * 140 days 3600.389= 140 days
The shorter the duration of the circulation period or one turnover of working capital, the less other things being equal, the enterprise requires less working capital. The faster working capital circulates, the better and more efficiently they are used. Thus, the timing of capital turnover affects the total working capital requirement. Reducing this time is the most important area of ​​financial management, leading to increased efficiency in the use of working capital and an increase in their return.
The turnover rate characterizes the direct turnover ratio (number of revolutions) for a certain period of time - a year, a quarter. This indicator reflects the number of turnovers made by the working capital of the enterprise, for example, per year. It is calculated as the quotient of the volume of sold (or commodity) products divided by working capital, which is taken as the average amount of working capital for a certain period (usually a year):
„ _ RP obT,- »
""OK
i.e., substituting the values:
in the base period: 24,840: 10,074 = 2.466;
in the planning period: 25,920: 10,080 = 2.571.
The direct turnover ratio shows the amount of sold (or marketable) products per 1 ruble. working capital. An increase in this coefficient means an increase in the number of revolutions and leads to the fact that:
- production output or sales volume increases for each invested ruble of working capital;
- the same volume of production requires a smaller amount of working capital.
Thus, the turnover ratio characterizes the level of production consumption of working capital. An increase in the direct turnover ratio, i.e. An increase in the turnover rate of working capital means that the enterprise uses working capital rationally and efficiently. A decrease in turnover indicates a deterioration in the financial condition of the enterprise.
The inverse turnover ratio, or the loading (consolidation) factor of working capital (K3) shows the amount of working capital spent on each ruble of sold (commodity) products. This indicator is also called the working capital ratio. It is calculated as follows:
k - ^°6 = ^
3 RP Ko6
Or, substituting the values:
in the base period: 10,074: 24,840 = 0.406 or 1: 2.466 = 0.406; in the planning period: 10,080: 25,920 = 0.389 or 1: 2.571 = 0.389. The data obtained show that the company has experienced an increase in the efficiency of using working capital. This was reflected in an increase in the return on working capital from 51.12% to 60.02%. This positive shift was reflected in the acceleration of working capital turnover.
The duration of one revolution in days decreased from 146 to 140 days, the load factor or the provision of the production process with working capital decreased from 40.6 k. to 1 rub. of sold products up to 38.9 k. The number of turnover of working capital increased and amounted to 2.57 in the planning period versus 2.47 turnover per year in the base period, which means an increase in returns in the form of growth in sales revenue for each ruble of invested working capital.
Comparison of turnover and load ratios over time allows us to identify trends in changes in these indicators and determine how rationally and effectively the working capital of the enterprise is used.
Madug turnover indicators can be calculated for all working capital and for its individual elements, such as inventories, work in progress, finished and sold products, funds in settlements and accounts receivable.
Inventory turnover is calculated as the ratio of production costs to the average amount of inventory; work in progress turnover - as the ratio of goods received to the warehouse to the average annual volume of work in progress; turnover of finished products - as the ratio of shipped or sold products to the average value of finished products; Fund turnover in calculations is the ratio of sales revenue to average accounts receivable.
The listed indicators make it possible to conduct an in-depth analysis of the use of own working capital; they are called private turnover indicators.
The turnover of working capital may accelerate or slow down. When turnover slows down, additional funds are involved in turnover. The effect of accelerating turnover is expressed in a reduction in the need for working capital due to improved use and savings, which affects the increase in production volumes and, as a consequence, financial results. Acceleration of turnover leads to the release of part of the working capital (material resources, cash), which are used either for production needs or for accumulation in a current account. Ultimately, the solvency and financial condition of the enterprise improves.
The release of working capital as a result of accelerating their turnover can be absolute and relative. Absolute release is a direct reduction in the need for working capital, which occurs in cases where the planned volume of production is completed with a smaller volume of working capital compared to the planned requirement.
The relative release of working capital occurs in cases where, in the presence of working capital within the planned requirement, the production plan is exceeded. At the same time, the growth rate of production volume is faster than the growth rate of working capital balances. Data for calculating the relative savings of working capital are given in table. 6.8.?
Example. Calculation of relative savings of working capital. Table 6.8. Initial data
Indicators Conditional Basic Planned
notation period period
1. Volume of sales
duction or revenue from real estate
lization, thousand rubles VR 24 840 25 920
2. Growth rate about
duction K 1.044
Simple
3. Average turnover
funds, thousand rubles ^approx 10,074 10,080
4. Turnover turnover
funds, days Side 146 140
5. Turnover ratio
productivity K06 2.4657 2.5714
Calculation of working capital savings (ECS) can be done in various ways.
1st method: Eok = Sok.plSok.base "Simple"
Eok = 10,080 - 10,074 * 1.044 = - 432 thousand rubles;
1 (O^ok. base
25 920 (140146)
_ _ VRt
^ob.pl K ’ frontal base
25 920 25 920
2,5714 2,4657
= -432 thousand rubles;
OK
As we can see, the enterprise, as a result of increased efficiency in the use of working capital, has experienced a relative release of working capital. The financial result from the acceleration of turnover amounted to 432 thousand rubles.
Working capital management is important in solving the key problem of financial condition: achieving optimal?
the relationship between the growth of production profitability (maximizing profit on invested capital) and ensuring sustainable solvency, which serves as an external manifestation of the financial stability of the enterprise. An extremely important task is also the provision of reserves and costs of the enterprise with sources of their formation and maintaining a rational ratio between its own working capital and borrowed resources aimed at replenishing working capital.

MINISTRY OF EDUCATION AND SCIENCE

RUSSIAN FEDERATION

BRANCH OF MOSCOW STATE UNIVERSITY OF TECHNOLOGY AND MANAGEMENT in VYAZMA

COURSE WORK

Discipline: Enterprise Economics

Topic: Assessing the effectiveness of the formation and use of working capital of an enterprise

Vyazma, 2010

Introduction

Chapter 1. The role of working capital in ensuring the current activities of the enterprise

1.1 General concept working capital. The role of working capital in the production process. Composition and structure of the enterprise's working capital

1.2 Indicators of the effective use of working capital at the enterprise

Chapter 2. Calculation and analytical part

2.1 History of development and organizational structure Management of the Limited Liability Company "Vyazemsky Mill Plant"

2.2 Analysis of technical and economic indicators of the Limited Liability Company “Vyazemsky Mill Plant”

2.3 Assessment of the efficiency of use of working capital of the Limited Liability Company "Vyazemsky Mill Plant"

2.4 Ways to increase the efficiency of using working capital of the Vyazemsky Mill Plant Limited Liability Company

Conclusion

Literature

Introduction

The financial resources of an economic entity always have two areas of practical application: part of the funds is invested (invested) in fixed assets for various purposes, the other part of the funds is advanced into working capital (working capital).

Working capital is important, first of all, from the standpoint of ensuring the continuity and efficiency of the current activities of the enterprise.

IN financial activities working capital plays an important role, since the financial condition, liquidity and solvency of the organization in to a greater extent depend on the level of business activity, optimal use of working capital, assessment of its size and structure. Due to the fact that working capital forms the main share of the company's liquid assets, their value must be sufficient to ensure the rhythmic and uniform operation of the organization and, as a result, making a profit. Working capital management is aimed at meeting the current needs for financial resources to carry out statutory activities.

Economic assessment of the state of current assets is based on the use of indicators characterizing the degree of efficiency and usefulness of their use in the production process. Effective use of working capital plays a significant role in ensuring the normalization of the operation of the enterprise and increasing the level of profitability of production.

The policy for financing current assets is part of the general policy for managing its current assets, which consists in optimizing the volume and composition of financial sources of their formation (own and borrowed working capital) from the standpoint of ensuring the effective use of equity capital and sufficient financial stability of the enterprise.

Determining working capital requirements is integral part financial planning. The planned value of working capital is established through rationing, that is, determining the working capital standard. Rationing of working capital is the basis for the rational use of an enterprise's economic assets.

Use of working capital in economic activity should be carried out at a level that minimizes time and maximizes the speed of circulation of working capital and its transformation into real money supply for subsequent financing and the acquisition of new working capital. The purpose of the work is to assess the effectiveness of the formation and use of working capital of the enterprise.

working capital

Chapter 1. The role of working capital in ensuring the current activities of the enterprise

1.1 General concept of working capital. The role of working capital in the production process. Composition and structure of the enterprise's working capital

Working capital (working capital) is part of the enterprise's capital invested in its current (current) assets, which are renewed with a certain regularity to ensure current activities and, at a minimum, turn over once during the year or one production cycle. Working capital ranks second in size after fixed capital in the total volume of resources that determine the economy of an economic entity. The peculiarity of working capital is that they are not consumed, but are advanced. This ensures the continuity of the process of buying and selling goods. Unlike fixed capital, working capital during one production cycle completely transfers its value to the newly created product, and is reimbursed after each cycle in monetary form, and then in kind. Part of the working capital changes its physical form (raw materials, materials), part disappears without a trace as waste energy or gas.

Figure 1. Circulation of working capital

Figure 1 shows the circulation of working capital of the enterprise.

An enterprise's need for working capital depends on many factors:

Production and sales volumes;

The nature of the enterprise's activities;

Scale of activity;

Duration of the production cycle;

Enterprise capital structures;

Accounting policy of the enterprise and settlement system;

Conditions and practices of lending to the economic activity of an enterprise;

Level of logistics;

Types and structure of consumed raw materials;

The growth rate of production volumes and sales of the enterprise's products.

The structure of the working capital of the enterprise is presented in Figure 2.

Standardized working capital Non-standardized working capital

Figure 2. Structure of the working capital of the enterprise

Working capital in the practice of planning, accounting and evaluation is divided according to the following criteria:

According to their functional role in the production process: working capital and circulation funds.

The amount of working capital included in working production assets is determined by the organizational and technical level of production, the scope of activity, the scale of production and the duration of the production cycle of manufactured products. Working capital includes production inventories (raw materials, materials, fuel), work in progress, semi-finished products of own production, deferred expenses.

The amount of working capital included in the circulation funds is determined by the organization of marketing research and sales of products, the conditions for selling products, the distribution system, and methods of payment for products.

Funds of circulation are not directly involved in the production process, but are necessary to ensure the unity of production and circulation. The peculiarity of circulation funds is that they do not directly participate in the formation of value, but are carriers of already created value. The main purpose of circulation funds is to provide monetary funds for the rhythm of the circulation process.

Circulation funds are finished products, goods shipped and cash (in settlements (accounts receivable), in the cash register and in the current account).

On the practice of control, planning and management: standardized and non-standardized working capital. An enterprise may have standards for inventory, semi-finished products of its own production, finished products, and goods for resale.

By sources of working capital formation: own and borrowed working capital;

By liquidity (rate of conversion into cash):

absolutely liquid assets (cash and short-term financial investments: easily sold securities), quickly sold working capital, accounts receivable), slowly sold working capital (inventory);

According to the degree of risk of capital investment: working capital with minimal investment risk (cash, short-term financial investments); working capital with low investment risk (accounts receivable, inventories, balances of finished products and goods); working capital with an average investment risk: (low-value and wear-and-tear items, work in progress, deferred expenses); working capital with high risk investments (doubtful accounts receivable, stale inventories, finished products and goods that are not in demand).

By material content: objects of labor (raw materials, supplies, fuel, etc.), finished products and goods, cash and settlement funds.

The movement of working capital of an enterprise during the operating cycle goes through four main stages, consistently changing its forms.

At the beginning of any business activity, a certain amount of cash is required, which is then converted into productive resources (or goods for sale). These resources are processed during the production process and sold as finished products. As a result, the organization has accounts receivable and cash. Industrial inventories of an enterprise are one of the main components of working capital. The bulk of inventories are used as objects of labor and in the production process. They are entirely consumed in each production cycle and fully transfer their value to the cost of manufactured products. The following assets are accepted as inventories:

Used as raw materials, materials, etc. in the production of products intended for sale (performance of work, provision of services);

Intended for sale;

Used for the management needs of the organization.

Finished products are part of inventories. Finished goods are the final product of the production process, delivered to the warehouse and ready for sale.

Goods are also part of inventories purchased or received from other legal entities or individuals and intended for sale.

Depending on the role that industrial inventories play in the process of production, performance of work and provision of services, they are divided into the following groups:

raw materials and basic materials;

auxiliary materials;

purchased semi-finished products;

unfinished production;

Future expenses;

containers and packaging materials;

spare parts;

inventory and household supplies.

Work in progress and semi-finished products of our own production are parts, assemblies, products that have not passed all stages of processing, assembly, testing, acceptance, as well as objects of labor, the production of which is not completely completed from the point of view of this production, or has been completed, but they have not been handed over for finished goods warehouse.

Deferred expenses are expenses incurred in the reporting period, but attributable to the cost of a future period.

The main part of future expenses in organizations consists of expenses for preparation and development of production. In addition, deferred expenses include expenses for the repair of fixed assets if such repairs are carried out unevenly throughout the year and the organization does not create an appropriate reserve; expenses for the development of new production facilities and installations; amounts paid in advance for advertising of manufactured products; costs of obtaining a license to carry out a certain type of activity; costs for certification of products, works, services, etc.

Receivables are understood as the debt of other organizations, employees and individuals of this organization. Organizations and persons who owe this organization are called debtors.

Accounts receivable - consists of the debt of buyers for products purchased from a given organization, accountable persons for items issued to them on account sums of money and other debts.

Cash and securities are the most liquid part of current assets; the next component of working capital. Cash includes money on hand, in current and deposit accounts. Securities that constitute short-term financial investments include: securities of other businesses, government treasury notes, government bonds and securities issued by local governments.

Cash settlements are the most important factor in ensuring the circulation of funds, and their timely completion serves a necessary condition continuous production process.

Calculations are made in two forms:

By non-cash transfers through the bank system

In the form of cash payments (non-cash and cash payments).

To store money and make non-cash payments, each enterprise opens settlement and other necessary accounts.

Making payments by non-cash transfers through a bank is the main form of payment.

Relatively small amounts of money are used for cash payments. Such funds are stored and circulated through cash desks.

Working capital is also classified according to time: constant (systemic) and temporary (variable). The constant part of working capital, which includes inventories, can be considered equivalent to fixed capital, since investments in them are long-term, they are unchanged during one production and commercial cycle. The temporary part is current assets that constantly change their value. These include cash, short-term loans, and accounts receivable.

Working capital is characterized by the following positive features:

A high degree of structural transformation, as a result of which they can easily be transformed from one type to another when regulating commodity and cash flow in the operational process;

Greater adaptability to changes in the conditions of the commodity and financial markets - they are easily amenable to changes in the process of diversifying the operating activities of the enterprise;

High liquidity; if necessary, a significant part of them can be converted into monetary assets necessary for the ongoing maintenance of operating activities in its new variations;

Ease of control; basic management decisions associated with their turnover are sold within short period time.

However, they have the following disadvantages:

Part of the working capital in cash and in the form of accounts receivable is largely susceptible to loss of real value in the process of inflation;

Temporarily free (over-formed) current assets practically do not generate profit (except for free monetary assets that can be used in short-term financial investments); Moreover, excess inventories of inventory not only do not generate profit, but cause additional operating costs for their storage;

Inventories of current inventories in all their forms are subject to constant losses due to natural loss;

A significant part of working capital is exposed to the risk of losses due to the dishonesty of partners in business operations, and sometimes even its own personnel.

The main characteristics of working capital are their liquidity, volume and structure. The structure of working capital and its sources is shown in the balance sheet.

1.2 Indicators of effective use of working capital at the enterprise

The operational efficiency, financial stability and solvency of enterprises largely depend on the availability of working capital, their structure and level of use. Therefore, the current assets management system, along with planning, standardization and accounting, includes a regular assessment of their composition, dynamics, and compliance with the needs of current production and economic activities.

The purpose of the assessment is to identify possible improvements in the use of working capital and reduce the duration of the financial cycle. Ensuring the continuity of the production process and sales of products with less financial resources.

The main sources of information for assessing working capital are the balance sheet of the enterprise.

The structure of working capital is the ratio of individual elements of circulating production assets (inventories, work in progress, deferred expenses) and circulating assets (finished goods, accounts receivable, money in cash and on the current account), that is, it shows the share of each element in the total amount working capital.

Efficient use of an enterprise's working capital is one of the main conditions for the successful operation of an enterprise. Increasing the level of financial efficiency in the use of working capital is an important reserve for increasing the financial stability of the enterprise.

Assessing the efficiency of working capital includes:

Comparison of the growth rate of current assets with the growth rate of revenue from sales of products (works, services);

Assessment of the dynamics of such indicators of the use of current assets, such as changes in their balances in the reporting period compared to the previous period,

Determination of the turnover ratio of current assets and the average duration of turnover;

Load factor of funds in circulation;

Return on working capital indicator;

Calculation of the relative release of funds from circulation as a result of accelerating their turnover or, conversely, the involvement of additional funds in circulation as a result of a slowdown in the turnover of current assets: factor analysis of the influence of the turnover of current assets on sales proceeds;

Determination of profitability of current assets;

Determination of liquidity ratios;

Calculation of the degree of financial stability depending on the degree of provision of reserves and costs by various types of sources;

General analysis of the state of the enterprise's working capital.

The efficiency of using working capital is directly dependent on the turnover of working capital.

Working capital turnover represents the duration of one complete circulation of funds from the moment the working capital is converted in cash into inventory and until the finished product is released and sold.

The circulation of funds is completed by crediting proceeds from sales to the organization’s account.

Improving the use of working capital is aimed at accelerating turnover, that is, increasing the number of turnovers and reducing the turnover period. Accelerating the turnover of working capital will free up significant amounts and, thus, increase production volumes without additional financial investments, and use the released funds in accordance with the needs of the enterprise.

The economic efficiency of using working capital is characterized by turnover indicators: the number of revolutions for a certain period; duration of one revolution, in days; the amount of working capital employed at the enterprise per unit of production (load factor).

The working capital turnover ratio characterizes the output of products for each ruble of working capital or the number of revolutions. With an increase in the indicator, the turnover of working capital accelerates, which means that the efficiency of using working capital improves.

where Vр – revenue from sales of products, works, services (rubles);

Coefficient of fixation (loading) of working capital per 1 ruble of products: shows the amount of working capital per 1 ruble of products sold. This is the inverse ratio of the turnover ratio.

The consolidation ratio of all working capital is the sum of the consolidation ratios for individual elements: the consolidation ratio of inventories, the consolidation ratio of receivables, the consolidation ratio of cash and short-term financial investments.

Turnover in days determines the rate of turnover of enterprise funds, the speed of change in the forms of cost of production revolving funds and circulation funds, that is, it characterizes the duration of turnover in days.

The turnover of working capital in days is calculated both for all working capital and for individual elements (similar to the coefficients of fixation of working capital).

Such turnover indicators for individual elements are called partial indicators, the sum of which gives the turnover indicator of all working capital (obtaining more accurate results).

Reducing this time is the most important area of ​​financial management, leading to increased efficiency in the use of working capital and an increase in their return. A reduction in turnover time leads to the release of funds from circulation, and an increase in it leads to an additional need for working capital.

where D is turnover in days;

T – reporting period (in days).

Increasing the efficiency of using working capital can be achieved both through an increase in the volume of products sold and through the release of working capital due to the acceleration of their turnover.

Accelerating the turnover of working capital is one of the most important factors in increasing production efficiency. The amount of working capital required to produce a certain volume of products is inversely proportional to the speed of their turnover. Therefore, the acceleration of turnover leads to the release of working capital.

A distinction is made between absolute and relative release of working capital.

Absolute is called a release in which the same volume of products will be obtained with a smaller amount of working capital, and relative - when, due to the acceleration of turnover, a larger volume of products is obtained with the same amount of working capital, that is, when the growth rate of sales volumes outstrips the growth rate of working capital.

In other words, absolute release reflects a direct reduction in the need for working capital. Relative release reflects both the change in the amount of working capital and the change in the volume of products sold.

Released working capital is calculated as the difference between the actual and planned need for normalized funds (absolute release (involvement) of working capital ):

E = CO base. – CO report

where SObas., SOotch. – average balance of working capital in the base and comparison periods, respectively, rub.;

and the amount of released working capital (working capital savings) (E) is determined by the formula ( relative release (involvement) of working capital):

E = V R report . (D base - D report . ) ,

E= V R. report . - V R. report . ,

To ob.base. To the general report .

where Vр is revenue from sales of products, works, services, rubles;

Cob.bas., Cob.report. – the number of revolutions in the base and reporting periods, respectively;

D base, D report. – duration of one revolution in days in the base and reporting periods, days.

In other words, the greater the number of turnovers made by working capital during the reporting period relative to the base period with the same volume of output, the higher the savings in working capital, and vice versa, the slowdown in turnover is accompanied by the involvement of additional funds in turnover.

The turnover ratio and turnover rate are the most widely used indicators, but when assessing the efficiency of using working capital, the return on working capital indicator (return on working capital) is also calculated. This is a general indicator.

TO department = P

where P is profit from sales of products (rub);

СО – average working capital (rub.).

The return on working capital ratio shows how much profit an enterprise receives from each ruble invested in working capital, regardless of the sources of raising these funds.

Using turnover indicators, you can calculate the duration of the operating and financial cycles. The operating cycle (OC) characterizes the total time in days during which financial resources are mobilized in inventories and receivables:

OT = T (Z) + T (DZ), days

where T (Z) is the period of inventory turnover;

T (DZ) – period of repayment of receivables.

The duration of the financial cycle (FC) characterizes the time between the deadline for payment of one’s obligations to suppliers and the receipt of money from buyers, that is, it shows the time during which funds are diverted from circulation:

FC = T (Z) + T (DZ) – T (KZ), days

where T (КЗ) is the period of repayment of accounts payable.

The reduction in the duration of the operating and financial cycle is seen as a positive trend.

The presence of own working capital, as well as the ratio between own and borrowed working resources characterize the degree of financial stability of the enterprise.

To assess the sufficiency of own working capital necessary to ensure the financial stability of the enterprise, the following are determined: the coefficient of provision of current assets with own working capital, the coefficient of provision of inventories with own working capital, the coefficient of maneuverability.

In a market economy, along with the indicated indicators characterizing the efficiency of using working capital, it is also necessary to consider the influence of the values ​​and structure of working capital on the solvency of the enterprise.

The solvency of an enterprise (the ability to timely and fully fulfill its obligations) expresses its liquidity—the ability to make 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 marketable elements of working capital.

Main liquidity ratios of current assets:

The absolute liquidity ratio is the ratio of the most liquid assets to short-term liabilities and shows what part of short-term borrowed liabilities can be repaid immediately using available funds:

Feces = ___ cash + short-term financial investments___

Short-term liabilities

The normal value of the coefficient is 0.2-0.5

Critical liquidity ratio (interim coverage) - characterizes the solvency of the enterprise, taking into account upcoming receipts from debtors. It shows what part of the current debt the organization can cover in the near future, subject to full repayment of receivables:

K Cl (pp) = + short-term accounts receivable + other current assets Short-term liabilities

The normal value of the coefficient is 0.7-1.0

Current liquidity ratio (full coverage) - reflects the projected payment capabilities of the organization, subject to the repayment of short-term receivables and the sale of existing inventories:

cash + short-term financial investments +

K tl (pp) = + short-term accounts receivable + inventories

Short-term liabilities

The normal value of the coefficient is ³ 2.0

Working capital liquidity ratio:

Clos = current assets

Short-term liabilities

This is a general indicator of the liquidity and solvency of an enterprise. The efficiency of using working capital depends on many factors, which can be divided into external ones, which have an impact regardless of the interests of the enterprise, and internal ones, which the enterprise can and should actively influence. On modern stage economic development, the main external factors influencing the state and use of working capital include such as the crisis of non-payments, the severance of economic ties, high taxes, conditions for obtaining and high rates of bank loans, a decrease in production volumes and consumer demand.

However, the enterprise has internal reserves, the use of which will, to some extent, smooth out the impact of external factors. Rational organization of production reserves (resource conservation, rationing); effective organization of the sales and payment system; reduction in the time spent by working capital in work in progress and other factors.

Chapter 2. Technical and economic characteristics of the enterprise

2.1 History of development and organizational structure of management of the Limited Liability Company “Vyazemsky Mill Plant”

In 1991, the Vyazemsky Bread Products Plant was transformed into Vyazmazernoprodukt OJSC.

In 1992, together with the Okrim company (Italy), a corn processing line was put into operation in the buildings of a feed mill. The company began producing corn oil, corn flour and cereals.

In the same year, the mill was reconstructed with the replacement of sieves, the installation of a rotary beating apparatus and multi-level RCIE filters, which increased the output volume and improved the quality of high-quality flour. At the enterprise, extrusion equipment was installed in the feed mill building corn grits, which made it possible to produce ready-made breakfast cereals.

Since 1996, after the reconstruction of the feed mill, bread, confectionery and pasta products began to be produced. In 1998, equipment for a mill for conventional grinding of rye flour was put into operation. In 1999, a line for the production of barley and pearl barley was introduced in the elevator building. Since 1999, the enterprise began to work on customer-owned grain, processing food wheat, together with the company Agro Holding.

Since 2000, the company has experienced a decline in production.

This enterprise was transformed into OJSC Vyazemsky Mill Plant in 2002.

The company was subsequently declared bankrupt.

Currently this enterprise is a Limited Liability Company.

Wheat bran;

The main technical and economic indicators are general parameters of the enterprise and in their totality they reflect the general state of affairs at the enterprise - in the production, technical, commercial, social, economic and financial spheres.

Table 1. Initial data for the analysis of the main technical and economic indicators of Vyazemsky Mill Plant LLC for 2007-2008

No.	Indicators	2007	2008
1	2	3	4
1.		72000	72000
2.		45841	39996
3.	Commercial products, thousand rubles.	254419	245830
4.		254400	245830
5.		93450	93510
6.		350	328
7.		18984	25741
8.		236741	235995
9.		12360	8658

Table 2. Indicators characterizing the production and sale (sale) of products of Vyazemsky Mill Plant LLC for 2007-2008

No.	Indicators	2007	2008
1	2	3	4	5
1.	Product output in physical terms, tons	45841	39996	87,2
including:
-flour	32851	27936	85,0
-wheat bran	6970	6060	86,9
- compound feed	6020	6000	99,7
2.		254419	245830	96,6
including:
-flour	212217	205050	96,6
-wheat bran	18122	16180	89,3
- compound feed	24080	24600	102,2
3.	Products sold (its sales volume), thousand rubles.	254400	245830	96,6
Continuation of Table 2
1	2	3	4	5
4.		5,550	6,146	110,7
including:
-flour	6460	7340	113,6
-wheat bran	2600	2670	102,7
- compound feed	4000	4100	102,5
5.		100,0	100,0	-

During 2008, Vyazemsky Mill Plant LLC reduced production volumes by 12.8 percent. This is due to increased competition in the sales market for manufactured products, and also partly with rising prices for raw materials.

As a result of the analysis of production and sales (sales) of products, Vyazemsky Mill Plant LLC in 2008, partly failed to properly organize its production activities. Additional sources of financing for the purchase of raw materials were not found, as well as by the sales service, measures were not taken to promote the existing market and to search for new markets for the products.

Table 3. for 2007-2008

No.	Indicators	2007	2008	Actual data in percentage (times) to 2007
1	2	3	4	5
Production capacity, tons	72000	72000	100,0
Product output in physical terms, tons	45841	39996	87,2
	0,64	0,56	-
Commercial products, thousand rubles.	254419	245830	96,6
	254400	245830	96,6
Average annual cost of fixed production assets, thousand rubles.	93450	93510	100,1
	2,72	2,62	96,3
	350	328	93,7
Products sold per 1 worker, thousand rubles	726,9	749,5	103,1
	4520	6540	144,7
Total cost of commercial products, thousand rubles.	236741	235995	99,7
	17659	9373	53,1
Profit (loss) before tax, thousand rubles.	12360	8658	70,1
	0,93	0,96	103,2
	0,08	0,04

But the reduced output indicates a decrease in the effective use of the production and technical potential of the enterprise. This is confirmed by the production capacity utilization rate, the value of which in 2008 was only 56 percent.

The indicator “sold products per 1 ruble of the cost of fixed production assets” characterizes the market activity of the use of fixed production assets. This figure also decreased and amounted to 96.3 percent compared to the level of the previous analyzed period. The decrease in this indicator was influenced by a reduction in sold products by 3.4 percent. The number of employees at OJSC Vyazemsky Flour Mill has decreased and amounts to 328 people. The reduction in numbers affected the labor productivity indicator, which, despite the decrease in production volumes, increased. In 2008, the value of the labor productivity indicator, calculated based on sold products, increased by 3.1 percent compared to the same period last year

In 2008, the average monthly salary increased by 44.7 percent compared to the previous analyzed period and amounted to 6,540 rubles. The increase in average monthly wages was influenced by both an increase in funds allocated for wages (in 2008, 13.6 percent more funds were allocated than in 2007) and a reduction in the number of employees.

The table data shows that labor productivity increased by only 3.1 percent, and the average monthly wage increased by 44.7 percent. This indicates ineffective use of funds allocated to pay for labor.

The total cost of marketable products for the analyzed period decreased by 746 thousand rubles, or only 0.3 percent, despite the decreased production output in physical terms by 12.8 percent. And since the rate of decrease in cost is lower than the rate of decrease in marketable products, the costs of production and sales of products have not decreased, which can be assessed negatively. This is confirmed by the table data: costs per ruble of sold products increased by 0.03 rubles or 3.2 percent, which does not allow us to conclude that costs have decreased, and therefore production costs have been saved.

A general assessment of the financial condition of an enterprise is given on the basis of such effective financial indicators as profit and profitability. In the analyzed period, Vyazemsky Mill Plant LLC received a profit in the amount of 9,373 thousand rubles from the sale of products (half of the profit of 2007), as well as a profit from all financial and economic activities, but in the amount of 8,658 thousand rubles. As a result of the analysis of technical and economic indicators, we can conclude that Vyazemsky Mill Plant LLC is still profitable and profitable in 2008, despite the decline in most of the main performance indicators of the enterprise.

Chapter 2. Calculation and analytical part

2.1 History of the development of the Limited Liability Company "Vyazemsky Mill Plant"

Construction of the Vyazemsky bakery plant began in 1968. In 1974, the reconstruction of the enterprise began. The enterprise put into operation a high-quality grinding mill and a new mill elevator with a capacity of 24 thousand tons of grain. A feed mill with a capacity of 500 tons per day was put into operation. In subsequent years, its technical re-equipment began, which made it possible to further increase its productivity.

From 1986 to 1987, the mill was reconstructed with the replacement of equipment with more advanced equipment from the Swiss company "Buller", which made it possible to increase the mill's capacity.

In 1988, the construction of the grain dryer was completed, and transport and handling equipment was replaced.

In 1991, the Vyazemsky Bread Products Plant was transformed into Vyazmazernoprodukt OJSC. In 1992, together with the Okrim company (Italy), a corn processing line was put into operation in the buildings of a feed mill. The company began producing corn oil, corn flour and cereals. In the same year, the mill was reconstructed with the replacement of sieves, the installation of a rotary beating apparatus and multi-level RCIE filters, which increased the output volume and improved the quality of high-quality flour. At the enterprise, in the feed mill building, equipment for extruding corn grits was installed, which made it possible to produce ready-made breakfast cereals.

Since 1996, after the reconstruction of the feed mill, bread, confectionery and pasta products began to be produced. In 1998, equipment for a mill for conventional grinding of rye flour was put into operation. In 1999, a line for the production of barley and pearl barley was introduced in the elevator building. Since 1999, the enterprise began to work on customer-owned grain, processing food wheat, together with the company Agro Holding. Since 2000, the company has experienced a decline in production.

In 2001, the products of the confectionery and bread shops, the cereal shop were excluded from production, the production of ready-made breakfasts was also suspended, and the lines for the production of rye flour and pasta were “mothballed”, since these products are unprofitable.

This enterprise was transformed into OJSC Vyazemsky Mill Plant in 2002. The company was subsequently declared bankrupt. Currently this enterprise is a Limited Liability Company.

LLC "Vyazemsky Mill Plant" was created by a group of individuals in order to satisfy legal entities and individuals in products for industrial and material and technical purposes, consumer goods and services, as well as to make profit for its participants and operates in accordance with current legislation and on the basis charter of the enterprise.

The constituent documents of a limited liability company are the constituent agreement signed by its founders and the Charter approved by them.

To ensure the activities of the enterprise, an authorized capital is formed at the expense of the participants. The procedure for forming the fund and its size are established by the participants. The participants of the enterprise form the authorized capital by making both a property contribution and in cash. Participants are responsible for the obligations of the enterprise within the limits of their contributions.

To ensure the activities of the enterprise at the expense of the participants, a statutory fund was formed, the size of which was 20 thousand rubles.

Participants have the right to participate in the management of the affairs of the enterprise in the manner established by the charter, receive information about the activities of the enterprise and receive a portion of the profits from the activities of the enterprise.

Participants are required to comply with the provisions constituent documents, provide assistance to the enterprise in carrying out its activities.

An enterprise is liable for its obligations with all its property, but is not liable for the obligations of its founders.

The enterprise is a legal entity and operates on the basis of the charter and legislation Russian Federation, has an independent balance sheet, a corner stamp, a seal with its name, settlement and other accounts in state and commercial banks and other necessary details.

The enterprise maintains accounting and statistical records in accordance with the procedure established by law. Financial and statistical reports are provided by the company in the manner and within the time limits established by law.

The enterprise has the right to create branches and representative offices on the territory of the Russian Federation, which are provided with fixed and working capital at the expense of the enterprise.

Vyazemsky Mill Plant LLC produces and sells flour, animal feed, processing of agricultural products, construction, commissioning and finishing works.

The main goal of the enterprise is to provide the population and enterprises with flour products and make a profit.

Currently the company produces the following types of products:

Flour of the highest grade, first and second;

Wheat bran;

Compound feeds of various recipes.

In December 2003, a line for packaging flour into paper bags weighing 2 kilograms was introduced.

The company's products are high quality and competitive.

The main suppliers of raw materials (grain) are the Novosibirsk, Rostov, Kursk, Omsk, Tambov regions, Krasnodar and Stavropol territories.

Main sales market: Smolensk, Moscow, Ryazan, Tver and southern regions Russia, as well as Belarus and the Komi Republic.

OJSC "Vyazma Mill" is located at the address: Smolensk region, Vyazma, st. Elevatornaya, 1.

The enterprise is located outside the city limits on the 225th kilometer of the Moscow-Minsk highway, and has railway access tracks.

2.2 Analysis of technical and economic indicators of the Limited Liability Company “Vyazemsky Mill Plant”

The purpose of the technical and economic analysis is to study the technical, organizational and economic level of the enterprise, to evaluate the results of its production, economic and financial activities.

The main technical and economic indicators are general parameters of the enterprise and in their totality they reflect the general state of affairs at the enterprise - in the production, technical, commercial, social, economic and financial spheres.

The information base for the analysis of technical and economic indicators is data from current cost accounting and reporting of the enterprise.

The initial information for the analysis of the main technical and economic indicators of Vyazemsky Mill Plant LLC is presented in Table 1.

Table 1. Initial data for the analysis of the main technical and economic indicators of Vyazemsky Mill Plant LLC for 2008-2009

No.	Indicators	2008	year 2009
1	2	3	4
Production capacity, tons	72000	72000
Product output in physical terms, tons	45841	39996
Commercial products, thousand rubles.	254419	245830
Products sold (its sales volume), thousand rubles.	254400	245830
Average annual cost of fixed production assets, thousand rubles.	93450	93510
Average annual number of industrial production personnel (employees), people	350	328
Funds allocated for wages, thousand rubles.	18984	25741
Total cost of commercial products, thousand rubles.	236741	235995
Profit (loss) before tax, thousand rubles.	12360	8658

An analysis of production and sales of products is presented in Table 2.

During 2009, Vyazemsky Mill Plant LLC reduced production volumes by 12.8 percent. This is due to increased competition in the sales market for manufactured products, and also partly with rising prices for raw materials.

The decrease in this indicator affected the value of both commercial and sold products, each of which decreased by 3.4 percent compared to the same period last year.

Table 2. Indicators characterizing the production and sale (sale) of products of Vyazemsky Mill Plant LLC for 2008-2009

No.	Indicators	2008	year 2009
1	2	3	4	5
1.	Product output in physical terms, tons	45841	39996	87,2
including:
-flour	32851	27936	85,0
-wheat bran	6970	6060	86,9
- compound feed	6020	6000	99,7
2.	Commercial products, thousand rubles.	254419	245830	96,6
including:
-flour	212217	205050	96,6
-wheat bran	18122	16180	89,3
- compound feed	24080	24600	102,2
3.	Products sold (its sales volume), thousand rubles.	254400	245830	96,6
4.	Average price of 1 ton of manufactured products, thousand rubles.	5,550	6,146	110,7
including:
-flour	6460	7340	113,6
-wheat bran	2600	2670	102,7
- compound feed	4000	4100	102,5
5.	Sales of products (its sales volume) to marketable products, percentage	100,0	100,0	-

The average price of 1 ton of manufactured products increased by 596 rubles or 10.7 percent, which, against the backdrop of a decrease in production and sales volumes, indicates ongoing inflationary processes.

So, due to the increase in prices, the value of marketable products increased by (6,146 thousand rubles - 5,550 thousand rubles)x39996 thousand rubles = 23850.8 thousand rubles, and due to a decrease in the number of products produced, marketable products decreased by (39996 thousand rubles -45841 thousand rubles)x5 .550 thousand rubles = -32439.8 thousand rubles.

Based on the data on the production and sales (sales) of products, we can conclude that the enterprise was able to sell all the products produced in the analyzed period. In this regard, the sales volume in the analyzed period amounted to 100.0 percent of the production volume. This is explained by the fact that the company works under orders and fulfills contractual obligations for the supply of products.

As a result of the analysis of production and sales (sales) of products, Vyazemsky Mill Plant LLC in 2009, in part, failed to properly organize its production activities. Additional sources of financing for the purchase of raw materials were not found, as well as by the sales service, measures were not taken to promote the existing market and to search for new markets for the products.

The results of the analysis of the main technical and economic indicators of Vyazemsky Mill Plant LLC are presented in Table 3.

An analysis of the production and technical base of Vyazemsky Mill Plant LLC shows a low level of utilization of the enterprise's production capacity and a low indicator of market activity in the use of fixed production assets.

The analysis showed that the production capacity of the enterprise in the analyzed period remained unchanged.

But the reduced output indicates a decrease in the effective use of the production and technical potential of the enterprise.

This is confirmed by the production capacity utilization rate, the value of which in 2009 was only 56 percent.

Table 3. Main technical and economic indicators of Vyazemsky Mill Plant LLC for 2008-2009

No.	Indicators	2008	year 2009	Actual data in percentage (times) to 2008
1	2	3	4	5
Production capacity, tons	72000	72000	100,0
Product output in physical terms, tons	45841	39996	87,2
Power factor	0,64	0,56	-
Commercial products, thousand rubles.	254419	245830	96,6
Products sold, thousand rubles.	254400	245830	96,6
Average annual cost of fixed production assets, thousand rubles.	93450	93510	100,1
Products sold per 1 ruble of fixed production assets, rub.	2,72	2,62	96,3
Average annual number of industrial production personnel (employees), people.	350	328	93,7
Products sold per 1 worker, thousand rubles	726,9	749,5	103,1
Average monthly wage, rub.	4520	6540	144,7
Total cost of commercial products, thousand rubles.	236741	235995	99,7
Profit (loss) from sales (sale) of products, thousand rubles.	17659	9373	53,1
Profit (loss) before tax, thousand rubles.	12360	8658	70,1
Costs per 1 ruble of products sold (sold), rub.	0,93	0,96	103,2
Overall product profitability	0,08	0,04	-

The indicator “sold products per 1 ruble of the cost of fixed production assets” characterizes the market activity of the use of fixed production assets. This figure also decreased and amounted to 96.3 percent compared to the level of the previous analyzed period. The decrease in this indicator was influenced by a reduction in sold products by 3.4 percent.

The number of employees at Vyazemsky Mill Plant LLC has decreased and amounts to 328 people. The reduction in numbers affected the labor productivity indicator, which, despite the decrease in production volumes, increased. In 2009, the value of the labor productivity indicator calculated based on sold products increased by 3.1 percent compared to the same period last year. In 2009, the average monthly salary increased compared to the previous analyzed period by 44.7 percent and amounted to 6,540 rubles. The increase in average monthly wages was influenced by both an increase in funds allocated for wages (in 2009, 13.6 percent more funds were allocated than in 2008) and a reduction in the number of employees.

The table data shows that labor productivity increased by only 3.1 percent, and the average monthly wage increased by 44.7 percent. This indicates ineffective use of funds allocated to pay for labor. The total cost of marketable products for the analyzed period decreased by 746 thousand rubles, or only 0.3 percent, despite the decreased production output in physical terms by 12.8 percent. And since the rate of decrease in cost is lower than the rate of decrease in marketable products, the costs of production and sales of products have not decreased, which can be assessed negatively.

This is confirmed by the table data: costs per ruble of sold products increased by 0.03 rubles or 3.2 percent, which does not allow us to conclude that costs have decreased, and therefore production costs have been saved.

A general assessment of the financial condition of an enterprise is given on the basis of such effective financial indicators as profit and profitability. In the analyzed period, Vyazemsky Mill Plant LLC received a profit in the amount of 9,373 thousand rubles from the sale of products (half of the profit of 2007), as well as a profit from all financial and economic activities, but in the amount of 8,658 thousand rubles.

As a result of the analysis of technical and economic indicators, we can conclude that Vyazemsky Mill Plant LLC is still profitable and profitable in 2009, despite the decline in most of the main performance indicators of the enterprise.

2.3 Assessment of the efficiency of use of working capital of the Limited Liability Company "Vyazemsky Mill Plant"

Assessing the efficiency of using working capital of an enterprise includes an assessment of the composition and structure (percentage), which is carried out on the basis of data from Section II of the balance sheet “Current assets”, where the main functional forms of working capital are grouped. The purpose of the assessment is to track changes in dynamics (horizontal analysis) and identify the most significant components (vertical analysis).

Table 4 presents an analysis of the composition and analysis of the structure of the enterprise’s current assets, as well as data from the analysis of the structure of assets (property) of Vyazemsky Mill Plant LLC, that is, the ratio of non-current and current assets in the enterprise’s property.

Table 4. Analysis of the composition and structure of assets of Vyazemsky Mill Plant LLC for 2009

Indicators	Absolute values, thousand rubles		Specific gravity in percent		Changes in absolute values, thousand rubles	In percent (times) by the beginning of the year
	For the beginning of the year	At the end of the year	For the beginning of the year	At the end of the year
1	2	3	4	5	6		7
Non-negotiable assets
1.Intangible assets	-	-	-	-	-		-
2.Fixed assets	26729	92332	100,0	100,0	65603		3.5 times
3.Unfinished construction	-	-	-	-	-		-
4.Long-term financial investments	-	-	-	-	-		-
5.Other non-current assets	-	-	-	-	-		-
Total: non-current assets	26729	92332	100,0	100,0	65603		3.5 times
Negotiable assets
1. Inventories	26159	1354	15,5	1,3	-24805		5,2
including
- raw materials	17303	972	66,1	71,8	-16331		5,6
- costs in work in progress	-	-	-	-	-		-
- finished products and goods for resale	8576	81	32,8	5,9	-8495		1,0
- goods shipped	-	-	-	-	-		-
- Future expenses	280	302	1,1	22,3	22,0		107,9
2. Value added tax on purchased assets	8318	541	4,9	0,5	-7777,0		6,5
3. Accounts receivable (payments for which are expected within 12 months after the reporting date)	134581	103066	79,5	98,17	-31515		76,6
Including
- buyers and customers	43415	84276	32,3	81,8	40861		1.9 times
Short-term financial investments	-	-	-	-	-
5. Cash	262	31	0,2	0,03	-231		11,8
- other working capital	-	-	-	-	-		-
Total: current assets	169320	104992	86,4	53,2	-64328		62,0
Total: enterprise assets	196049	197324	100,0	100,0	1275		100,7

The results of the analysis showed: positive and negative changes in the composition of the assets of Vyazemsky Mill Plant LLC in the analyzed period.

The total amount of the enterprise's funds increased by 1,275 thousand rubles or 0.7 percent (this is a positive moment in the work of the enterprise);

Current assets, which at the beginning of the analyzed period occupied 86.4 percent (mobility level) of the enterprise’s property, decreased by 33.2 percent and indicate the formation of Vyazemsky Mill Plant LLC with a less mobile asset structure at the end of the analyzed period (negative point).

The amount of current assets at the end of the analyzed period decreased by 64,328 thousand rubles (38.0 percent) with a high growth rate of non-current assets of 3.5 times ( negative point). At the same time, their structure also changed.

Accounts receivable is a necessary and important element of the life of a modern enterprise. In Vyazemsky Mill Plant LLC, receivables predominate in current assets, both at the beginning and at the end of the analyzed period. Moreover, its share in the total volume of current assets increased by 17.67 percent and amounted to 98.17 percent (an increase in accounts receivable over 40 percent of the amount of working capital is a negative point), since less weight accounts receivable in the total volume, the more mobile the structure of the enterprise's property. An increase in the share of accounts receivable to 98.17 percent indicates a large diversion of the enterprise’s funds from circulation. A positive point is the fact that the amount of accounts receivable decreased by 31,515 thousand rubles. However, the company will not be able to operate normally until it receives more than half of its debt.

The main share of accounts receivable, 81.8 percent, falls on buyers and customers.

In addition, there is a significant increase in this indicator by 1.9 times or by 40,861 thousand rubles, despite the fact that the company works on orders. Large debts to debtors indicate certain difficulties in selling products. The enterprise should pay Special attention to assess the condition internal control over timely repayment of debts by buyers. The enterprise as a whole still needs to select disciplined buyers and evaluate their solvency, as well as monitor the timeliness of payments.

The share of reserves is 1.3 percent, and they are dominated by raw materials and materials - 71.8 percent. The value of the inventory indicator decreased by 24,805 thousand rubles, and is only 5.2 percent of the level of the previous analyzed period.

A reduction in the share of industrial inventories indicates a decrease in production potential. However, a decrease in the size of inventories with a decrease in sales volume is a positive aspect in changing the structure of current assets. The largest share of reserves consists of raw materials and materials. Moreover, the figure decreased by 16,331 thousand rubles and amounted to only 5.6 percent by the beginning of the analyzed period. In the structure of current assets, there was a decrease in the “cash” indicator by 231.0 thousand rubles, with a simultaneous decrease in the share (negative point). During the analyzed period, the company experienced a shortage of available cash. A decrease in funds in the current account below 10.0 percent of the amount of working capital is a negative point in the work of the enterprise.

An assessment of the sources of formation of working capital of the Limited Liability Company “Vyazemsky Mill Plant” is presented in Table 5.

Table 5. Analysis of the calculation of own working capital of Vyazemsky Mill Plant LLC for 2009 (thousand rubles)

Indicators	For the beginning of the year	At the end of the year	Deviations
			In absolute terms	Percentage (times)
1	2	3	4	5
Own funds	43380	30617	-12763	70,6
Fixed assets	26729	92332	65603	5.5 times
Current assets	169320	104992	-64328	62,0
Including:	26159	1354	-24805	5,2
Own working capital	16651	-61715	-78366	4.7 times
Coefficient of provision of current assets with own working capital (Koss) (>0.1)	0,1	-0,59	-0,69	-
Inventory coverage ratio with own working capital (0.6-0.8)	0,64	-45,6	-46,24	-
Agility coefficient (0.5)	0,38	-2,02	-2,40	-

The results of Table 5 show that the indicator of own working capital of Vyazemsky Mill Plant LLC at the end of the analyzed period has negative value. This suggests that working capital is provided through borrowed and credit funds.

The main problem of the enterprise is the lack of its own working capital. One of the options for solving this problem is to increase equity capital (attracting investors, increasing retained earnings) or assessing the composition of current assets (in our case, collecting your debt).

To determine the share of participation of own funds in the formation of the enterprise's current assets, the coefficients presented in Table 5 were calculated. At Vyazemsky Mill Plant LLC, reserves are formed from borrowed sources.

The negative value of the maneuverability coefficient (-2.02) shows what part of the company’s own funds is in mobile form, allowing these funds to be maneuvered relatively freely.

The value of this coefficient also confirms the lack of own working capital at the end of the analyzed period at Vyazemsky Mill Plant LLC.

For a general assessment of the liquidity of current assets, we will calculate the main liquidity ratios of current assets.

The negligible values ​​of the liquidity ratios presented in Table 6 do not allow us to evaluate the assets of Vyazemsky Mill Plant LLC as liquid. In Vyazemsky Mill Plant LLC, the value of the absolute liquidity ratio is so low that it indicates that Vyazemsky Mill Plant LLC in the near future can repay no more than 0.02 percent of short-term debt using its available cash.

The current liquidity ratio shows that both at the beginning and at the end of the year, Vyazemsky Mill Plant LLC is insolvent .

Table 6. General assessment of liquidity of current assets LLC "Vyazemsky flour mill" for 2009

Table 7 shows the calculation of the enterprise's working capital turnover indicators.

Table 7 Assessment of the dynamics of the main indicators of the use of current assets of Vyazemsky Mill Plant LLC for 2008-2009

The data in Table 7 indicates that the rate of decline in revenue from product sales lags behind the rate of decline in average balances of current assets. This indicates an improvement in the use of current assets in 2009:

The turnover of current assets accelerated by 0.10 turnover per year;

The duration of one revolution was reduced by 12 days;

The allocation of working capital to 1 ruble of sales revenue decreased from 0.59 rubles in the previous period to 0.56 rubles in the reporting period.

Reducing the duration of turnover of current assets by 12 days is not significant. In the analyzed period, at Vyazemsky Mill Plant LLC, the factors for accelerating turnover were: a reduction in inventories of material resources, a reduction in the stock of finished products in the warehouse.

The efficiency of using current assets is characterized by a profitability indicator. Calculation of profitability of current assets is presented in Table 8.

Table 8. Calculation of the profitability of current assets of Vyazemsky Mill Plant LLC for 2008-2009

The obtained calculation data show that in Vyazemsky Mill Plant LLC in 2009, 1 ruble of current assets accounted for 7 kopecks of profit from the sale of products.

2.4 Ways to increase the efficiency of using working capital of the Vyazemsky Mill Plant Limited Liability Company

The effective use of working capital plays a big role in ensuring the normalization of the enterprise, increasing the level of profitability of production and depends on many factors. Factors that contribute to increasing the efficiency of using working capital include:

Increasing production and sales volumes;

Rational organization of production inventories;

Reducing the presence of working capital in work in progress;

Effective organization of circulation.

Increasing the efficiency of using working capital is ensured by accelerating their turnover at all stages of the circulation.

Significant reserves for increasing the efficiency of using working capital are built directly into the enterprise itself. In the production sector, this applies primarily to inventories. Inventories play an important role in ensuring the continuity of the production process, but at the same time they represent that part of the means of production that is temporarily not involved in the production process. Effective organization of inventory is an important condition for increasing the efficiency of using working capital. The main ways to reduce inventories come down to their rational use; liquidation of excess stocks of materials; improving standardization; improving the organization of supply, including by establishing clear contractual terms of supply and ensuring their implementation, optimal selection of suppliers, and smooth operation of transport. An important role belongs to improving the organization of warehouse management.

Reducing the time spent by working capital in work in progress is achieved by improving the organization of production, improving the equipment and technology used, improving the use of fixed assets, especially their active part, and introducing the latest technologies.

In the sphere of circulation, working capital does not participate in the creation of a new product, but only ensures its delivery to the consumer. Excessive diversion of funds into circulation is a negative phenomenon. The most important prerequisites for reducing investments of working capital in the circulation sector are: rational organization of sales of finished products, the use of progressive forms of payment, timely execution of documentation and acceleration of its movement, compliance with contractual and payment discipline, systematic control of accounts receivable.

Accelerating the turnover of working capital allows you to free up significant amounts and thus increase production volume without additional financial resources, and use the released funds in accordance with the needs of the enterprise.

Conclusion

The economic efficiency of improving the use and saving of working capital is very large, since they have a positive impact on all aspects of the production and economic activities of the enterprise.

Using data from Vyazemsky Mill Plant LLC, the work assessed the composition and structure of working capital and drew conclusions. This paper presents proposals for improving the efficiency of working capital management of an enterprise.

The importance of accelerating the turnover of working capital was noted. The effect of accelerating the turnover of working capital is expressed in the release and reduction of the need for them due to the improvement of their use

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