Working production assets, working capital. Circulation and rationing of working capital

Working capital of an enterprise represents a valuation of circulating production assets and circulation funds. Working capital simultaneously functions both in the sphere of production and in the sphere of circulation, ensuring the continuity of the production process and sales of products.

Working capital assets are part of the means of production that are entirely consumed in each production cycle, fully transfer their value to the products produced and are fully reimbursed after each production cycle. They are classified according to the following elements:

• production inventories (raw materials, basic and auxiliary materials, purchased semi-finished products and components, fuel, containers, spare parts for equipment repair, low-value and wearable items); The category of low-value and wearable items includes: items that last less than one year and cost no more than 100 times as of the date of purchase (for budgetary institutions- 50 times) established by law Russian Federation minimum monthly wage per unit; special tools and special devices, replacement equipment, regardless of their cost; special clothing, special shoes, regardless of their cost and service life, etc.
• work in progress and semi-finished products of own production (WIP);
• work in progress represents products that have not been completed and are subject to further processing;
• deferred expenses, i.e. costs of developing new products, fees for subscription publications, payment of rent several months in advance, etc. These expenses are written off against the cost of production in future periods;
• circulation funds, i.e. the totality of funds functioning in the sphere of circulation; (products ready for sale, located in the warehouses of the enterprise; products shipped, but not yet paid for by the buyer; cash at the enterprise's cash desk and in bank accounts, as well as funds in unfinished settlements (accounts receivable).

Working capital constantly circulates, during which it passes through three stages: supply, production and sales (sales). At the first stage (supply), the enterprise uses cash to purchase the necessary production supplies. At the second stage (production), inventories enter production and, having gone through the form of work in progress and semi-finished products, are transformed into finished products. At the third stage (sales), finished products are sold and working capital takes cash form.

The structure of working capital is specific gravity the cost of individual elements of working capital in their total cost.

Sources of working capital formation

According to the sources of formation, working capital is divided into own and borrowed working capital. Own working capital is funds assigned to the authorized capital in the part intended for the formation of working capital necessary for the functioning of the enterprise. Own working capital can be replenished from profits, depreciation fund, etc.

In addition, enterprises, as a source of formation of working capital, can use funds equivalent to their own (so-called sustainable liabilities), which include: constant minimum arrears of wages and contributions for social needs; amounts accrued to employees for vacations; settlements with financial authorities regarding taxes and fees, etc.

Borrowed funds serve to cover the temporary needs of the enterprise in working capital; they are created through bank loans and accounts payable to suppliers.

Determining the need for working capital

To determine the enterprise's need for working capital, working capital is rationed. Working capital rationing refers to the process of determining the economically justified need of an enterprise for working capital to ensure the normal flow of the production process.

Standardized working capital includes all current production assets (inventories, work in progress and semi-finished products of own production, deferred expenses) and products ready for sale.

Working capital standards are calculated in physical terms (pieces, tons, meters, etc.), in monetary terms (rubles) and in days of supply. General standard The working capital of an enterprise is calculated only in monetary terms and is determined by summing the working capital standards for individual elements:

FOBSH = FPZ + FNZP + FRBP + FGP,

where FPZ is the standard of production reserves, rub.; FNPP – work-in-progress standard, rub.; FRBP – standard for deferred expenses, rub.; FGP – standard stock of finished products in the warehouses of the enterprise, rub.

The general stock norm (GRPi) determines for how many days the enterprise must be provided with working capital this species production stock.

Refineryi= NTEKi + NSTRi + NPODGi,

where NTEKi is the current stock norm, days; NSTRi – safety stock norm, days; NPODGi – norm of preparatory (technological) stock, days.

The current stock is necessary to ensure uninterrupted production at the enterprise during the period between regular deliveries. The rate of current stock is taken, as a rule, equal to half the average interval between two next deliveries.

Safety stock is provided to prevent the consequences associated with supply disruptions. The safety stock norm is set either within 30-50% of the current stock norm, or equal to the maximum time of deviations from the supply interval.

Preparatory (technological) stock is created in cases where raw materials and supplies arriving at the enterprise require appropriate additional preparation (drying, sorting, cutting, packaging, etc.). The standard of preparatory stock is determined taking into account specific production conditions and includes time for receiving, unloading, paperwork and preparation for further use of raw materials, materials and components.

Indicators of the use of working capital

The most important indicators of the use of working capital in an enterprise are the working capital turnover ratio and the duration of one turnover.

The working capital turnover ratio, showing how many revolutions the working capital made during the period under review, is determined by the formula:

KOOS = NRP/FOS,

where NRP is the volume of products sold for the period under review in wholesale prices, rubles; FOS – average balance of all working capital for the period under review, rub.

The duration of one turnover in days, showing how long it takes for the company to return its working capital in the form of revenue from sales of products, is determined by the formula:

Tob = n/KOOS,

where n is the number of days in the period under consideration.

Accelerating the turnover of working capital leads to the release of the company's working capital from circulation. On the contrary, a slowdown in turnover leads to an increase in the enterprise's need for working capital. Acceleration of working capital turnover can be achieved through the use of the following factors: faster growth rate of sales volumes compared to the growth rate of working capital; improvement of the supply and sales system; reducing material and energy consumption of products; improving product quality and competitiveness; reduction in production cycle time, etc.

Revolving funds - this is part of the production assets (a set of objects of labor), which is fully used during one production cycle, while completely or partially changing its consumer form and transferring its value to the cost of the manufactured product. In business practice, working capital includes , and self-made semi-finished products.

TO industrial reserves include stocks of raw materials, basic and auxiliary materials, purchased semi-finished products, fuel, containers, repair parts, low-value and wearable items.

Work in progress- these are objects of labor that are in industrial processing.

Semi-finished products of our own production- this is part of the items of labor that have undergone partial processing in a certain department of the enterprise, but need further refinement.

The enterprise's need for raw materials and other types of material resources is determined by special standards for their expenses. Enterprises determine these standards independently for specific types of resources. To the utmost general view The consumption rate represents the maximum permissible costs for the manufacture of a certain type of product. The consumption rate consists of two parts: actively used and unused.

Actively used part a certain type of resource is that part of it that directly goes into finished product(for example, the amount of leather in the shoes being manufactured). The unused part of a resource represents forced losses of a specific type of resource. For example, in a shoe factory, these losses consist of the fact that work in progress takes into account items of labor at a certain production stage, and semi-finished products are taken into account only if this stage is completed.

Deferred expenses represent current cash expenses that will be covered in subsequent periods at the expense of.
The ratio of different groups of working capital at each stage of the production process is characterized by their production and technological structure, and other working capital.

The required amount of standardized working capital is calculated by several methods. The most commonly used method is direct counting, i.e. determine standards for each of the elements.

The working capital standard in industrial inventories is defined as the product of the average daily consumption of a certain type of material and the standard of its stock in days.

There are several types of inventory in an enterprise. Let's list the main ones:

• transport (necessary for the enterprise to ensure uninterrupted operation during the transportation of materials);
• preparatory (necessary to ensure the operation of the enterprise during the preparation of received materials for their further production consumption);
• current (ensures the operation of the enterprise in the period between two deliveries).

The standard for working capital in work in progress is calculated as the product of the average daily volume of production by production cost, average duration production cycle and cost increase coefficient, which has specific calculation features for each specific enterprise.

The working capital standard for deferred expenses is calculated as the sum of the balance of funds at the beginning of the year and the amount of expenses planned for the next year, minus the amount of subsequent repayment of expenses.

The standard for working capital in finished product balances is determined at each enterprise, taking into account its specifics, as the required quantity of products that must be stored in the warehouse.

The total working capital standard of an enterprise is calculated as the sum of the standards for individual elements.

The efficiency of using working capital can be measured by several turnover indicators, for example as the cost ratio products sold at current prices for a certain period to the average balance of working capital for the same period.

Working capital- this is a set of funds advanced to create working production assets and circulation funds that ensure continuity economic activity companies.

Composition and classification of working capital

Revolving funds- these are assets enterprises, which, as a result of its economic activities, completely transfer their value to finished product, take one-time participation in production process, changing or losing its natural material form.

Working production assets enter production in their natural form and are entirely consumed during the production process. They transfer their cost completely to the product they create.

Circulation funds associated with servicing the process of circulation of goods. They do not participate in the formation of value, but are its carriers. After graduation production cycle, production of finished products and their sale, the cost of working capital is reimbursed as part of revenue from product sales(works, services). This creates the possibility of systematically resuming the production process, which is carried out through the continuous circulation of enterprise funds.

Structure of working capital- this is the ratio between the individual elements of working capital, expressed as a percentage. The difference in the structures of working capital of companies is determined by many factors, in particular, the characteristics of the organization’s activities, business conditions, supply and sales, location of suppliers and consumers, and the structure of production costs.

Working production assets include:

objects of labor (raw materials, basic materials and purchased semi-finished products, auxiliary materials, fuel, containers, spare parts, etc.);

means of labor with a service life of no more than one year or a value of no more than 100 times (for budgetary organizations- 50 times) the established minimum wage per month (low-value wearable items and tools);

work in progress and semi-finished products of own production (objects of labor that have entered into production process: materials, parts, assemblies and products that are in the process of processing or assembly, as well as semi-finished products of our own production, not fully completed by production in some workshops of the enterprise and subject to further processing in other workshops of the same enterprise);

deferred expenses(immaterial elements of working capital, including costs for the preparation and development of new products that are produced in a given period, but are allocated to products of a future period; for example, costs for the design and development of technology for new types of products, for the rearrangement of equipment).

Circulation funds

Circulation funds- enterprise funds operating in the sphere of circulation; an integral part of working capital.

Circulation funds include:

enterprise funds invested in finished product inventories, goods shipped but not paid for;

funds in settlements;

cash in hand and in accounts.

The amount of working capital employed in production is determined mainly by the duration of production cycles for the manufacture of products, the level of technical development, the perfection of technology and labor organization. The amount of circulating media depends mainly on the conditions for the sale of products and the level of organization of the supply and marketing system.

Working capital is the more mobile part assets.

In every Circulation of working capital goes through three stages: monetary, production and commodity.

To ensure a smooth process, the enterprise is forming inventories working capital or material assets, awaiting their further industrial or personal consumption. Inventories are the least liquid item among the items current assets. The following methods for estimating reserves are used: production costs each unit of purchased goods; by average cost, in particular, by weighted average cost, moving average; at the cost of the first purchases; at the cost of the most recent purchases. The unit of accounting for working capital as inventory is a batch, a homogeneous group, and an item number.

Depending on their purpose, inventories are divided into production and commodity. Depending on the functions of use, stocks can be current, preparatory, insurance or warranty, seasonal and carryover.

Safety stocks- a reserve of resources intended for uninterrupted supply of production and consumption in cases of reduction in supplies compared to those provided.

Current stocks- stocks of raw materials, materials and resources to meet the current needs of the enterprise.

Preparatory supplies- Cycle-dependent inventories are required if raw materials are to undergo any processing.

Carryover stocks- part of unused current inventories that are carried over to the next period.

Working capital is located simultaneously at all stages and in all forms of production, which ensures its continuity and uninterrupted operation of the enterprise. Rhythm, coherence and high performance largely depend on optimal amounts of working capital(working production assets and circulation funds). Therefore, the process of rationing working capital, which relates to current financial planning at the enterprise, is of great importance. Rationing working capital is the basis for the rational use of a company's economic assets. It consists in developing reasonable norms and standards for their consumption, necessary to create constant minimum reserves and for the uninterrupted operation of the enterprise.

The working capital standard establishes the minimum estimated amount that is constantly required by the enterprise to operate. Failure to fill the working capital standard may lead to a reduction in production and failure to fulfill the production program due to interruptions in production and sales of products.

Standardized working capital- the size of inventories, work in progress and balances of finished products in warehouses planned by the enterprise. Working capital stock norm is the time (days) during which OBS are in production inventory. It consists of the following stocks: transport, preparatory, current, insurance and technological. Working capital standard is the minimum amount of working capital, including cash, necessary for a company or firm to create or maintain carry-over inventories and ensure continuity of work.

Sources for the formation of working capital can be profit, loans (bank and commercial, i.e. deferred payment), share (authorized) capital, share contributions, budget funds, redistributed resources (insurance, vertical management structures), accounts payable, etc.

The efficiency of using working capital affects the financial results of the enterprise. When analyzing it, the following indicators are used: the availability of own working capital, the ratio between own and borrowed resources, the solvency of the enterprise, its liquidity, turnover of working capital, etc. Turnover of working capital is understood as the duration of the sequential passage of funds through individual stages of production and circulation.

The following indicators of working capital turnover are distinguished:

turnover ratio;

duration of one revolution;

working capital load factor.

Funds turnover ratio(turnover speed) characterizes the amount of revenue from sales of products by the average cost of working capital. Duration of one revolution in days is equal to the quotient of dividing the number of days for the analyzed period (30, 90, 360) by the turnover of working capital. Magnitude, reverse speed turnover, shows the amount of working capital advanced for 1 rub. revenue from product sales. This ratio characterizes the degree of utilization of funds in circulation and is called working capital load factor. The lower the working capital load factor, the more efficiently working capital is used.

The main goal of managing enterprise assets, including working capital, is to maximize profit on invested capital while ensuring stable and sufficient solvency of the enterprise. To ensure sustainable solvency, the enterprise must always have a certain amount of money in its account, which is actually withdrawn from circulation for current payments. Part of the funds should be placed in the form of highly liquid assets. An important task in terms of managing working capital of an enterprise is to ensure an optimal balance between solvency and profitability by maintaining the appropriate size and structure of current assets. It is also necessary to maintain an optimal ratio of own and borrowed working capital, since the financial stability and independence of the enterprise and the possibility of obtaining new loans directly depend on this.

Analysis of working capital turnover (analysis of the organization’s business activity)

Working capital- these are funds advanced by organizations to maintain the continuity of the production and circulation process and returned to organizations as part of the proceeds from the sale of products in the same monetary form with which they began their movement.

To assess the efficiency of using working capital, working capital turnover indicators are used. The main ones are the following:

average duration of one revolution in days;

the number (number) of turnovers made by working capital during a certain period of time (year, half-year, quarter), otherwise - the turnover ratio;

the amount of employed working capital per 1 ruble of products sold (working capital load factor).

If working capital goes through all stages of the circulation, for example, in 50 days, then the first turnover indicator (the average duration of one turnover in days) will be 50 days. This indicator approximately characterizes the average time that passes from the moment of purchasing materials to the moment of sale of products made from these materials. This indicator can be determined using the following formula:

P is the average duration of one revolution in days;

SO - average balance of working capital for the reporting period;

P - sales of products for this period (less value added tax and excise taxes);

B - the number of days in the reporting period (in a year - 360, in a quarter - 90, in a month - 30).

So, the average duration of one turnover in days is calculated as the ratio of the average balance of working capital to the one-day turnover of product sales.

The average duration of one turnover in days can be calculated in another way, as the ratio of the number of calendar days in the reporting period to the number of turnovers made by working capital during this period, i.e. according to the formula: P = V/CHO, where CHO is the number of turnovers made by working capital during the reporting period.

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

as the ratio of product sales minus value added tax and excise taxes to the average balance of working capital, i.e. according to the formula: NOR = R/SO;

as the ratio of the number of days in the reporting period to the average duration of one revolution in days, i.e. according to the formula: NOR = W/P .

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

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

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

Most often, turnover is calculated per year.

During the analysis, the actual turnover is compared with the turnover for the previous reporting period, and for those types of current assets for which the organization sets standards - also with the planned turnover. As a result of this comparison, the magnitude of the acceleration or deceleration of turnover is determined.

The initial data for the analysis are presented in the following table:

Turnover (in days)	For the previous year	For the reporting year			Acceleration (-) deceleration (+) in days
		According to plan	In fact	Against the plan		Against previous year
Standardized working capital Non-standardized working capital All working capital

In the analyzed organization, turnover slowed down, both for standardized and non-standardized working capital. This indicates a deterioration in the use of working capital.

When the turnover of working capital slows down, there is an additional attraction (involvement) of them into circulation, and when it accelerates, working capital is released from circulation. The amount of working capital released as a result of the acceleration of turnover or additionally attracted as a result of its slowdown is determined as the product of the number of days by which turnover accelerated or slowed down by the actual one-day sales turnover.

The economic effect of accelerating turnover is that an organization can produce more products with the same amount of working capital, or produce the same volume of products with a smaller amount of working capital.

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

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

Directly when analyzing the current activities of an organization, the following reserves for accelerating the turnover of working capital can be identified, which consist in eliminating:

excess inventories: 608 thousand rubles;

goods shipped but not paid for on time by buyers: 56 thousand rubles;

goods in safe custody from buyers: 7 thousand rubles;

immobilization of working capital: 124 thousand rubles.

Total reserves: 795 thousand rubles.

As we have already established, the one-day sales turnover in this organization is 64.1 thousand rubles. So, the organization has the opportunity to accelerate the turnover of working capital by 795: 64.1 = 12.4 days.

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

Private turnover shows how many days on average working capital remains at a given stage of the circulation. For example, if the private turnover of raw materials and basic materials is 10 days, this means that on average 10 days pass from the moment the materials arrive at the organization’s warehouse to the moment they are used in production.

As a result of summing up private turnover indicators, we will not get an overall turnover indicator, since different denominators (turnovers) are taken to determine private turnover indicators. The relationship between the indicators of private and general turnover can be expressed by the terms of total turnover. These indicators make it possible to establish what impact the turnover of individual types of working capital has on the overall turnover indicator. The components of total turnover are defined as the ratio of the average balance of a given type of working capital (assets) to the one-day turnover of product sales. For example, the term for the total turnover of raw materials and basic materials is equal to:

The average balance of raw materials and basic materials is divided by the daily turnover of product sales (less value added tax and excise taxes).

If this indicator is, for example, 8 days, then this means that the total turnover due to raw materials and basic materials accounts for 8 days. If you sum up all the components of the total turnover, the result will be an indicator of the total turnover of all working capital in days.

In addition to those discussed, other turnover indicators are also calculated. Thus, the inventory turnover indicator is used in analytical practice. The number of turnovers made by inventories for a given period is calculated using the following formula:

Revenue from product sales, works and services (less value added tax And excise taxes) divided by average value under the item “Inventories” of the second asset section of the balance sheet.

Acceleration of inventory turnover indicates an increase in the efficiency of inventory management, and a slowdown in inventory turnover indicates their accumulation in excessive amounts, ineffective inventory management. Indicators are also determined that reflect the turnover of capital, that is, the sources of formation of the organization’s property. So, for example, turnover equity, is calculated using the following formula:

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

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

Turnover of invested capital is the turnover of product sales for the year (minus value added tax and excise taxes) divided by the average annual cost of equity capital and long-term liabilities.

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

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

If the organization’s financial breakthroughs are covered by unstable sources of funds, it is solvent at the reporting date and may even have free funds in bank accounts, but in the near future it will face financial difficulties. Unsustainable sources include sources of working capital that are available on the 1st day of the period (the balance sheet date), but are absent on dates within this period: undue debt for wages, contributions to extra-budgetary funds (above certain sustainable values), unsecured debt to banks for loans for inventory items, debt to suppliers for accepted payment documents, the payment terms of which have not arrived, in excess of the amounts classified as sustainable sources, as well as debt to suppliers for uninvoiced supplies, debt for payments to the budget in excess of amounts classified as sustainable sources of funds.

It is necessary to make a final calculation of financial breakthroughs (i.e., unjustified spending of funds) and sources of covering these breakthroughs.

The analysis ends with a general assessment of the financial condition of the organization and the drawing up of an action plan to mobilize reserves to accelerate the turnover of working capital and increase liquidity and strengthen the solvency of the organization. First of all, it is necessary to assess the organization’s provision with its own working capital, their safety and use for their intended purpose. Then an assessment is made of compliance with financial discipline, solvency and liquidity of the organization, as well as the completeness of use and security of bank loans and loans from other organizations. Measures are being planned for more efficient use of both equity and borrowed capital.

The analyzed organization has a reserve for accelerating the turnover of working capital for 12.4 days (this reserve is noted in this paragraph). To mobilize this reserve, it is necessary to eliminate the reasons causing the accumulation of excess reserves of raw materials, basic materials, spare parts, other inventories and work in progress.

In addition, it is necessary to ensure the targeted use of working capital, preventing their immobilization. Finally, receiving payments from buyers for goods shipped to them that were not paid on time, as well as the sale of goods held in custody by buyers due to refusal to pay, will also speed up the turnover of working capital.

All this will help strengthen the financial condition of the analyzed organization.

Indicators of the availability and use of working capital

Working capital is consumed in one production cycle, materially enters the product and completely transfers its value to it.

The availability of working capital is calculated both on a specific date and on average for the period.

Indicators of the movement of working capital characterize its changes during the year - replenishment and disposal.

Working capital turnover ratio

It is the ratio of the cost of products sold for a given period to the average balance of working capital for the same period:

To turnover= Cost of products sold for the period / Average balance of working capital for the period

The turnover ratio shows how many times the average balance of working capital was turned over for the period under review. In terms of economic content, it is equivalent to the capital productivity indicator.

Average turnover time

Determined from the turnover ratio and the analyzed time period

Average duration of one revolution= Duration of the measurement period for which the indicator is determined / Working capital turnover ratio

Working capital consolidation ratio

The value is inversely proportional to the turnover ratio:

To fastening= 1 / To turnover

Consolidation ratio = average working capital balance for the period / cost of goods sold for the same period

In terms of economic content, it is equivalent to the capital intensity indicator. The consolidation coefficient characterizes the average cost of working capital per 1 ruble of sales volume.

Working capital requirement

The enterprise's need for working capital is calculated based on the coefficient of fixation of working capital and the planned volume of product sales by multiplying these indicators.

Provision of production with working capital

It is calculated as the ratio of the actual working capital stock to the average daily consumption or average daily need for it.

Accelerating the turnover of working capital helps to increase the efficiency of the enterprise.

Task

According to the data for the reporting year, the average balance of the enterprise's working capital amounted to 800 thousand rubles, and the cost of products sold during the year at the current wholesale prices of the enterprise amounted to 7,200 thousand rubles.

Determine the turnover ratio, the average duration of one turnover (in days) and the coefficient of consolidation of working capital.

To turnover = 7200 / 800 = 9

Average turnover time = 365 / 9 = 40.5

K securing collective funds = 1/9 = 0.111

Working capital ( working capital) are assets of an enterprise that are renewed with a certain regularity to ensure current activities, investments in which are turned over at least once during the year or one production cycle.

According to currently accepted national economy classification within the working capital of industry the following groups are distinguished:

1) working capital;

2) circulation funds.

The working capital of enterprises consists of three parts:

1. Inventory;

2. Work in progress and semi-finished products of own production;

3. Deferred expenses.

Industrial inventories are items of labor prepared for launch into the production process; They consist of raw materials, basic and auxiliary materials, fuel, fuel, purchased semi-finished products and components, containers and packaging materials, spare parts for routine repairs of fixed assets. The size of these reserves is established in such a way as to ensure uninterrupted and rhythmic work. Typically, a distinction is made between current, preparatory and safety stocks. The current stock is intended to ensure the uninterrupted progress of the production process between two subsequent deliveries of raw materials, materials, purchased products and semi-finished products. Preparatory stock is necessary while preparing materials for production use. Safety stock is intended to ensure an uninterrupted production process in case of deviations from accepted delivery intervals.

Work in progress and self-made semi-finished products are objects of labor that have entered the production process: materials, parts, units and products that are in the process of processing or assembly, as well as self-made semi-finished products that have not been fully completed by production in some workshops of the enterprise and are subject to further processing in other workshops of the same enterprise.

Deferred expenses are intangible elements of working capital, including costs for the preparation and development of new products that are produced in a given period (quarter, year), but are attributed to products of a future period (for example, costs for the design and development of technology for new types of products, relocation of equipment, marketing, etc.).

Working production assets in their movement are also connected with circulation funds serving the sphere of circulation. They include finished products in warehouses, goods in transit, cash and funds in settlements with consumers of products, in particular, accounts receivable. The totality of the enterprise's funds intended for the formation of working capital and circulation funds constitutes the enterprise's working capital.

Circulation funds consist of four groups:

finished products in warehouses (in containers) of enterprises;

goods in transit (shipped);

funds in a bank account, in letters of credit or at the cash desk of an enterprise;

funds in settlements with suppliers and buyers.

The structure of working capital at an enterprise shows the share of individual elements in the total amount of funds. In the production structure, the ratio of working production assets and circulation funds is on average 4:

1. In the structure of industrial inventories on average in industry, the main place is occupied by raw materials and basic materials. Significantly lower than the share of spare parts and packaging (about 3%). Industrial inventories themselves have a higher share in fuel and material-intensive industries. The structure of working capital depends on the industry of the enterprise, the nature and characteristics of the organization production activities, conditions of supply and sales, settlements with consumers and suppliers.

main production working capital

The condition, composition, structure of inventories, work in progress and finished products are important indicators commercial activities of the enterprise.

The structure of working capital at enterprises in various industries is not the same and depends on many factors:

specifics of the enterprise. In enterprises with a long production cycle (for example, in shipbuilding), the share of work in progress is large; mining enterprises have a large share of deferred expenses. At those enterprises in which the production process is fleeting, as a rule, there is a large share of production inventories;

quality of finished products. If an enterprise produces low-quality products that are not in demand among buyers, then the share of finished products in warehouses increases sharply;

level of concentration, specialization, cooperation and combination of production;

accelerating scientific and technological progress. This factor affects the structure of working capital in various ways and practically on the ratio of all elements. If the enterprise introduces fuel-saving equipment and technology, waste-free production, then this immediately affects the reduction in the share of inventories in the structure of working capital.

Other factors also influence the structure of working capital. It must be borne in mind that some factors are long-term in nature, while others are short-term.

The structure of working capital at an enterprise is unstable and changes dynamically under the influence of many reasons.

In the oil industry, the largest share (almost one third) was occupied by auxiliary materials ( borehole pumps, belts, ropes, demulsifiers, ferrous and non-ferrous metals, timber, etc.). In the gas industry, auxiliary materials accounted for half of the working capital. In the oil refining and petrochemical industries, raw materials and auxiliary materials accounted for 34.6% and 50.6%, respectively. In all branches of the oil and gas industry, a large share was accounted for by low-value and wear-out tools, fixtures, equipment and spare parts for repairs.

Drilling is characterized by a large proportion of low-value and wearable items, tools and devices, as well as basic materials, which in total account for about 60% of the total working capital of drilling enterprises. This is the result of the fact that in the process of constructing production wells, large number expensive tools with a very short service life - drill pipes, extensions, tool joints, bits, traveling rope, etc.

At the same time, the peculiarity of the production process in drilling and the conditions of material and technical supply require the creation of somewhat larger reserves of material assets than is necessary for the normal operation of enterprises in other industries.

In general, industrial reserves ranged from 69% (oil production) to 81% (gas) by industry.

The change in the status of oil and gas enterprises and the new conditions for economic development during the transition to market relations completely changed the approach to working capital and their structure.

Page 5 of 7

Topic 4 Working capital of the enterprise

1. Working capital and current assets of the enterprise
2. Determining the need for working capital
3. Assessing the efficiency of using working capital

1. Structure of the enterprise’s working capital
Working capital - This is a set of funds advanced for the creation and use of circulating production assets and circulation funds to ensure the continuous process of production and sales of products.
Working production assets - these are objects of labor (raw materials, basic materials and semi-finished products, auxiliary materials, fuel, containers, spare parts, etc.); labor tools, items and tools with a service life of no more than 12 months; work in progress and deferred expenses. Working production assets enter production in their natural form and are completely consumed during the manufacturing process, i.e. transfer all their value to the product they produce.
Circulation funds - These are enterprise funds invested in finished product inventories, goods shipped but unpaid, as well as funds in settlements and cash in the cash register and accounts. Circulation funds are associated with servicing the process of circulation of goods. They do not participate in the formation of value, but are its carriers.
The movement of working production assets and circulation funds is of the same nature and amounts to single process . After the end of the production cycle, production of finished products and their sale, the cost of working capital is reimbursed as part of the proceeds from the sale of products (works, services).
Working production assets and circulation funds, being in constant movement, provide uninterrupted circulation of funds. At the same time, there is a constant and natural change in the forms of advanced value: from monetary she turns into commodity , then in production , back in commodity And monetary :

D-T-P-T-D

Monetary stage of the circulation of funds is preparatory: It occurs in the sphere of circulation and consists in the transformation of funds into the form of inventories.
Production stage represents the direct production process. At this stage, the cost of used inventories continues to be advanced, namely, the costs of wages and related expenses, and also transfers the cost of fixed assets to manufactured products. The production stage of the circuit ends with the release of finished products, after which the stage of its implementation begins.
On commodity stage of circulation the product of labor (finished products) continues to be advanced in the same amount as at the production stage. Only after the transformation of the commodity form of the value of manufactured products into monetary , the advanced funds are restored at the expense of part of the proceeds received from the sale of products. The remaining amount is cash savings, which are used in accordance with their distribution plan. Part of savings (profit) , intended for expansion of working capital , joins them and completes subsequent turnover cycles with them.
Working capital function consists of payment and settlement services for the circulation of material assets at the stages of acquisition, production and sale. In this case, the movement of working capital assets at each point in time reflects the turnover of material factors of reproduction, and the movement of working capital reflects the turnover of money and payments.
Thus, working capital is in constant motion. During one production cycle they make cycle of three stages .
At the first stage The enterprise spends money to pay bills for supplied items of labor. At this stage, working capital moves from the monetary form into the commodity form, and cash from the sphere of circulation into the sphere of production.
At the second stage acquired working capital goes directly into the production process and is converted first into inventories and semi-finished products, and after completion of the production process into finished products.
At the third stage finished products are sold, as a result of which working capital from the sphere of production enters the sphere of circulation and again takes on monetary form.
At each stage, the time spent on working capital is not the same. It depends on the consumer and technological properties of the product, the characteristics of its production and sale. The total duration of the circulation of working capital is a function of the time spent by these funds at each stage of the circulation. Therefore, an increase in the duration of the circulation of working capital leads to the diversion of own funds and the need to attract additional resources to maintain continuity of production.
In conditions market economy An irrational increase in the duration of turnover of working capital leads to a decrease in the competitiveness of the enterprise as a whole and a deterioration in its economic situation. Therefore, for a market economic system, the rational provision of an enterprise with working capital is extremely important and necessitates the appropriate organization of management of these funds.

2. Determining the need for working capital
Efficient use of working capital largely depends on the correct determination of the need for working capital, which will allow the enterprise to receive the profit planned for a given production volume with minimal costs. Understatement the amount of working capital entails instability financial situation, interruptions in the production process and a decrease in production volumes and profits. Overstatement the size of working capital reduces the ability of the enterprise to make capital expenditures to expand production.
When planning the optimal need for working capital, the funds that will be advanced to create inventories, work-in-progress reserves and accumulation of finished products in the warehouse are determined.
Three methods are used for this: analytical, coefficient and direct counting method. An enterprise can apply any of them, focusing on its work experience and existing scale of activity, the nature of economic relations, accounting, and the qualifications of economists.
Analytical and coefficient methods applicable to those enterprises that have been operating for more than a year, have formed a production program and organized the production process, have statistical data for past periods on changes in the value of the planned part of working capital and do not have a sufficient number of qualified economists for more detailed work in the field of working capital planning.
Analytical method involves determining the need for working capital in the amount of their average actual balances, taking into account the growth of production volume. To eliminate the shortcomings of past periods in organizing the movement of working capital, it is necessary to conduct a detailed analysis in two directions:
analyze the actual balances of industrial inventories (in order to identify unnecessary, redundant, illiquid inventories);
explore all stages of work in progress (to identify reserves for reducing the duration of the production cycle, study the reasons for the accumulation of finished products in the warehouse).
When planning the need for working capital, it is also necessary to take into account the specific operating conditions of the enterprise in the coming year. This method is used in enterprises where funds invested in material assets and costs occupy a large share in the total amount of working capital.
At coefficient method reserves and costs are divided into depending on changes in production volumes (raw materials, materials, work in progress costs, finished goods in warehouse) and independent (spare parts, low-value wearable items, deferred expenses). In the first case, the need for working capital is determined based on their size in the base year and the growth rate of production in the coming year. If an enterprise analyzes the turnover of working capital and seeks opportunities to accelerate it, then the real acceleration of turnover in the planned year must be taken into account when determining the need for working capital.
For the second group of working capital, which does not have a proportional dependence on the growth of production volume, the need is planned at the level of their average actual balances for a number of years.
If necessary, you can use analytical and coefficient methods in combination . First, the analytical method determines the need for working capital, depending on the volume of production, and then, using the coefficient method, changes in production volume are taken into account.
Direct counting method provides for a reasonable calculation of inventories for each element of working capital, taking into account all changes in the level of organizational and technical development of the enterprise, transportation of inventory items, and the practice of settlements between enterprises. This method is very labor-intensive and requires highly qualified economists and the involvement of workers from many departments of the enterprise in standardization. At the same time, the use of this method allows you to most accurately calculate the enterprise's need for working capital.
The direct counting method is used when creating a new enterprise and periodically clarifying the working capital needs of existing enterprises. The main condition for using the direct counting method is a thorough study of supply issues and the production plan of the enterprise. Great value It also has stability of economic relations, since frequency and security of supply are the basis for calculating stock norms. The direct counting method involves rationing working capital invested in inventories and costs, finished products in the warehouse. In general, its contents include:
development of stock standards for certain most important types of inventory items of all elements of regulated working capital;
determination of standards in monetary terms for each element of working capital and the total need of the enterprise for working capital.

3. Assessing the efficiency of using working capital
To assess the efficiency of using working capital, two groups of indicators are used:

1. indicators overall assessment efficient use of working capital;
2. indicators of the efficiency of using working capital by groups of working capital.

The first group includes indicators:
the degree of provision of the enterprise with its own working capital;
duration of one turnover of working capital;
working capital turnover ratio;
utilization rate of funds in circulation.
The degree of provision of an enterprise with its own working capital (СОС) is determined by the formula:
Soos=OS-NOS,
(preferably positive value about 0: > 0)
where: OS is the average annual value of standardized working capital (average balance of working capital);
NOS - working capital standard.
The duration of one turnover of working capital (CA) for a period of N days is determined by the formula:
PO=OS/N,
(preferably minimum value > min)
The working capital turnover ratio (Ko) is determined by the formula:
Co=RP/OS*100,
(preferably maximum value > max)
where: RP – volume of product sales (sold products).
The utilization rate of funds in circulation (Кз) is determined by the formula:
Kz=OS/RP*100
(preferably minimum value > min)
The second group includes indicators:
the share of debt for wages to employees in the enterprise's accounts payable;
the share of debt to suppliers for unpaid supplies in the enterprise's accounts payable;
ratio of receivables and payables of the enterprise;
the ratio of accounts receivable and volume of commercial output;
the ratio of accounts payable to the volume of commercial output.
The share of debt for wages to employees in the enterprise's accounts payable (Dot/kz) is determined by the formula:
Dot/kz=Kzot/kz*100, (> min)
where: Labor Code - arrears of wages to employees;
KZ - accounts payable of the enterprise.
The share of debt to suppliers for unpaid supplies in the enterprise's accounts payable (Additional/kz) is determined by the formula:
Additional/short-circuit = short-circuit/short-circuit*100 (> min)
where: KZp - debt to suppliers for unpaid supplies.
The ratio of accounts receivable and short-term accounts payable of an enterprise (Sdz/kz) is determined by the formula:
Sdz/kz=DZ/Kzk*100, (> min)
where: DZ – accounts receivable of the enterprise;
KZK – short-term accounts payable of the enterprise.
The ratio of accounts receivable and the volume of commercial output (Sdz/tp) is determined by the formula:
Sdz/tp=DZ/tp*100 (> min)
The ratio of short-term accounts payable and the volume of commercial output (Skz/tp) is determined by the formula:
RMS/TP=KZ/TP*100 (> min)
The second group of indicators in to a greater extent characterizes the rationality of the structure of the enterprise's working capital and its overall financial condition.