Consequences of acceleration (slowdown) of turnover of working capital. System of business activity indicators characterizing capital turnover Cash turnover

1

The determination of effectiveness begins with the establishment of criteria, i.e. the main feature of performance assessment, revealing its essence. The meaning of the production efficiency criterion follows from the need to maximize the results obtained or minimize the costs incurred based on the set development goals of the enterprise.

The financial position of an enterprise is directly dependent on how quickly funds invested in assets are converted into real money.

The duration of funds being in circulation is determined by the cumulative influence of a number of multidirectional factors of an external and internal nature. The first should include the sphere of activity of the enterprise (production, supply and sales, intermediary, etc.), industry affiliation, size of the enterprise. The economic situation in the country has a decisive influence on the turnover of an enterprise's assets. The severance of economic ties and inflationary processes lead to the accumulation of reserves, which significantly slows down the process of turnover of funds. Internal factors include the pricing policy of the enterprise, the formation of the asset structure, and the choice of methodology for valuing inventory.

Current assets represent part of the advanced capital. Its cost includes inventories, work in progress, finished goods, accounts receivable and cash. Here, first of all, everything that is connected with labor is reflected - objects, means, payment. It is in the interests of the enterprise to organize work using collective funds in the most rational way, since its financial condition directly depends on this. The system of working capital turnover indicators is based on two interrelated financial ratios: the coefficient of the duration of one turnover and the turnover ratio, which characterize the efficiency of using working capital. The latter affects business activity, capital productivity and also the profitability of assets or activities of the enterprise.

Asset turnover reflects how many times during a period the capital invested in the assets of the enterprise is turned over, i.e. it evaluates the intensity of use of all assets, regardless of the sources of their formation. On the other hand, it shows how much of the company’s revenue has cash invested in assets

A high turnover rate, as a rule, indicates the efficient use of capital and a favorable environment within the company: a low level of inventory reduces the risk of unsold products remaining in the warehouse. However, if the coefficient is significantly higher than the industry average, then there is a shortage of purchased goods and materials and, as a result, the risk of causing customer dissatisfaction.

The following are the general indicators of turnover of current assets of an enterprise:

1. The turnover ratio of current assets (turnover of current assets in times), which characterizes the rate of turnover of current assets and shows the number of turnovers made by current assets during the period, and is calculated using the formula:

Kob=VRn/OBsr,

where Kob is the turnover ratio of current assets; VRn - revenue (net) from sales; OBav - average balances of current assets for the period.

2. The average duration of one turnover of current assets (turnover of current assets in days), characterizing the duration of the turnover of current assets, showing the average time spent by current assets in the process of circulation in days and determined by the formula:

Toba=(OBav∙D)/VRn=OBav/VRd,

where Toba is the average duration of one turnover of current assets (in days); VRn - revenue (net) from sales; OBav - average balances of current assets for the period; D - number of days in the period; VRD - average daily revenue (net) from sales.

As can be seen from the above formulas, the turnover ratio and the average duration of one turnover of current assets are inversely proportional, i.e. The higher the turnover rate of current assets, the shorter its duration. In other words, the intensification of the use of current assets implies an increase in the first indicator and, accordingly, a decrease in the second.

3. The economic effect of changes in the turnover of current assets, which characterizes their release from circulation as a result of an increase in its speed or their additional attraction into circulation as a result of a slowdown in its speed and is calculated using the formula:

(+/-)E=(Toba1 - Toba0)∙VRd1,

where (+/-)E is the magnitude of the economic effect from changes in the turnover of current assets; Toba1 and Toba0 - the average duration of one turnover of current assets (in days) in the reporting and previous periods, respectively; ВРд1 - average daily revenue (net) from sales during the reporting period.

In this case, the following three situations may occur related to the value of the economic effect from changes in the turnover of current assets:

1.Toba1 < Тоба0 >  E < 0, т.е. произошло высвобождение оборотных активов из оборота в результате повышения интенсивности их использования.

2.Toba1>Toba0>E>0, i.e. There was an additional attraction of current assets as a result of a decrease in the intensity of their use.

3.Toba1=Toba0>E=0, i.e. there was no release or additional attraction of current assets into circulation, since the intensity of their use remained at the same level.

The release of current assets from circulation should be considered as a positive phenomenon, since a smaller amount of them began to be required to ensure a given level of current activity of a commercial organization; additional attraction of current assets in turn - as a negative phenomenon, since in order to ensure a given level of current activity of a commercial organization, their large sum.

Bibliographic link

Nurullaeva E.R., Franchuk M.V. ECONOMIC EFFECT FROM CHANGES IN ASSET TURNOVER // Advances in modern natural science. – 2012. – No. 4. – P. 154-155;
URL: http://natural-sciences.ru/ru/article/view?id=29962 (access date: 02/09/2020). We bring to your attention magazines published by the publishing house "Academy of Natural Sciences"

The economic effect as a result of accelerating asset turnover is expressed in the relative release of funds from circulation, as well as in an increase in the amount of revenue and profit.

The amount of funds released from circulation due to acceleration is determined by multiplying the one-day sales turnover by the change in the duration of the turnover:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

CONCLUSION

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

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

4. Assessing the impact of changes in turnover on the profit of the Belgorod district police department

For objective management of enterprise assets and informed management decision-making when planning current activities, it is important to assess the influence of the main factors on the increase in financial results and profitability.

The economic effect as a result of accelerating capital turnover is expressed in the relative release of funds from circulation, as well as in an increase in the amount of profit from sales.

To assess the impact of capital turnover and average annual capital balances on sales profit, a factor model (1) is used:

P= R PR ×K OB ×OK (1)

Where P is profit from sales;

R PR - profitability of sales;

KOB - capital turnover ratio;

OK - average annual working capital balances.

Based on this formula, the calculation of the impact of capital turnover on changes in profit is as follows (2):

∆P OK = P PR ×(K OBo - K OBb)×OK b (2)

Based on this formula, the calculation of the influence of average annual working capital balances on changes in profit is as follows (3):

∆P OK = P PRb × K OBb ×(OK b -OK o) (3)

Let us determine the impact of the value of current assets on the increase in sales revenue and present the results in Table 8

Table 8

The impact of changes in capital turnover on the revenue of the Belgorod Regional Pool for 2007-2009

Thus, the decrease in working capital turnover reduced revenue by 703 thousand rubles.

Based on the data in Table 5, the influence of the turnover indicators of the average annual capital balances of the Belgorod Regional Police on the change in profit from sales was calculated and presented in Table 9.

Table 9

The influence of turnover indicators of the Belgorod Regional Pool on profit for 2008-2009

	Change in profit
Asset turnover ratio
Change in asset value
Accounts receivable turnover ratio
Change in the value of accounts receivable
Working capital turnover ratio
Change in the value of working capital
Inventory turnover ratio
Change in inventory value
Capital productivity
Change in the value of fixed assets

According to Table 8, in 2009, the greatest impact on sales profit was from the acceleration of inventory turnover and accounts receivable. The decrease in capital productivity reduced profits by 34 thousand rubles. the influence of average annual balances is insignificant. This suggests that the intensive factor of growth in sales profit predominates. Based on this, we can conclude that it is necessary to control the turnover of receivables and inventories, since these factors have the greatest impact on changes in sales profit.

Accelerating the turnover of working capital reduces the need for them, allowing enterprises to free up part of their working capital either for the needs of the national economy (absolute release) or for additional production (relative release).

As a result of the acceleration of turnover, material elements of working capital are released, less reserves of raw materials, supplies, fuel, work in progress reserves, etc. are required, and therefore, monetary resources previously invested in these reserves and reserves are also released. The released monetary resources are deposited in the current account of enterprises, as a result of which their financial condition improves and their solvency is strengthened.

In order to really assess the positive and negative aspects of changes in turnover, it is necessary to calculate the amount of funds released or attracted. acceleration of turnover indicates a reduction in the need for working capital, and a slowdown requires the attraction of additional funds.

An analysis of the economic effect from changes in the capital turnover of the Belgorod Regional Pool for 2007-2009 is presented in Table 10

Table 10

The economic effect of changes in the turnover of the Belgorod Regional Pool for 2007-2009

Indicators				Change (+,-), thousand rubles.		Growth rate, %
Capital turnover ratio
Duration of one revolution
Amount of released (raised) funds

In 2008, an acceleration of capital turnover by 3% contributed to the release of 4,565 thousand rubles from turnover. in 2009, capital turnover slowed down by 11%. This contributed to the involvement of an additional 121.1 thousand rubles into turnover.

This has a negative impact on the results of the enterprise’s activities, since it means a reduction in the profits of the Belgorod Regional Pool.

Based on the analysis of the relationship between capital turnover and enterprise profit, it was revealed that the acceleration of inventory and receivables turnover had the greatest impact on sales profit. In general, asset turnover slowed down, which suggests that additional funds in the amount of 121.1 thousand rubles were involved in turnover. The capital productivity of fixed resources has also decreased. Intensive factors for the growth of sales profits predominate; on this basis, we can conclude that it is necessary to control the turnover of receivables and inventories, since these factors have the greatest impact on changes in sales profits.

It is necessary to take measures to increase the capital turnover of the Belgorod Regional Pool in order to release additional resources from circulation and increase profits.

Reserves for accelerating capital turnover

Accelerating capital turnover is a top priority for enterprises. During the analysis, it was revealed that the turnover of receivables and inventories had the greatest impact on the profit of the Belgorod Regional Pool in 2009. The reduction in profits is facilitated by a decrease in capital productivity of fixed assets and the turnover of working capital in general.

The efficiency of capital use 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. External factors include such as the general economic situation, tax legislation, conditions for obtaining loans and interest rates on them, the possibility of targeted financing, participation in programs financed from the budget. These and other factors determine the framework within which an enterprise can manipulate the internal factors of the rational movement of working capital.

At the present stage of economic development, the main external factors affecting the state and use of capital include such as the crisis of non-payments, high taxes, and high bank loan rates.

The crisis in the sales of manufactured products and non-payments lead to a slowdown in capital turnover. Consequently, it is necessary to produce products that can be sold quickly and profitably, stopping or significantly reducing the production of products that are not in current demand. In this case, in addition to accelerating turnover, the growth of accounts receivable in the assets of the enterprise is prevented.

At the current rate of inflation, it is advisable to direct the profit received by the enterprise, first of all, to supplement working capital. The rate of inflationary depreciation of working capital leads to an underestimation of costs and their flow into profit, where working capital is dispersed into taxes and non-productive expenses.

Significant reserves for increasing the efficiency of capital use lie directly in the enterprise itself. For the Belgorod District Pool, such reserves are

At the stage of creating inventories, these may be:

Introduction of economically feasible stock standards;

Bringing suppliers of raw materials, semi-finished products, components, etc. closer to consumers;

Widespread use of direct long-term connections;

Expansion of the warehouse system of logistics, as well as wholesale trade in materials and equipment;

Integrated mechanization and automation of loading and unloading operations in warehouses.

At the work in progress stage:

Acceleration of scientific and technological progress (introduction of advanced equipment and technology, especially waste-free and low-waste, robotic complexes, rotary lines, chemicalization of production);

Development of standardization, unification, typification;

Improving forms of trade organization;

The level of business activity is reflected in the assessment of the comparative efficiency of using the enterprise's material resources and in the amount of financial investments in these assets. Business activity in terms of efficient use of resources is assessed by a system of turnover indicators, which characterize the speed of return of funds invested in current production and economic activities.

The amount of cash aimed at acquiring the necessary resources begins the process of capital circulation, which is in continuous movement. Capital goes through three stages: procurement, production, and sales.

Procurement - the first stage - is the process of acquiring fixed assets, inventories and other types of valuables necessary for production. At the first stage, funds are transformed into material resources.

At the second production stage, funds in the form of inventories are transferred to work in progress. This stage ends with the release of finished products. Part of the funds goes to pay employees, pay taxes, social security payments and other expenses.

The third stage - sales - includes the sale of finished products, the finding of funds in settlements (accounts receivable) and the receipt of funds in an amount exceeding the initial investment by the amount of profit received from commercial activities. The described circulation process includes several cycles:

• operating cycle (OC) - this is the total time spent by financial resources in inventories, debts, including those received in the form of deferred payments, commercial or commodity loans (accounts payable). Characterizes the period of one full turnover of the entire amount of current assets;
• production cycle combines the storage of industrial inventories from the moment they are received at the warehouse until the moment they are shipped to production; direct production of products; period of storage of finished products in the warehouse. Its duration depends on the specifics of production, scale, and industry. It is the production cycle that determines the duration of the operating cycle;
• financial cycle - the period of time between the repayment of accounts payable to suppliers of raw materials and supplies and the receipt of money from debtors (buyers) for shipped products. It begins from the moment of acquisition of inventories and ends with payment for sold products by customers. The financial cycle includes the time required to pay the supplier (advance payment), shipment of raw materials, their delivery (customs clearance if necessary), posting to the warehouse, shipping the goods to the buyer, deferred payment (accounts receivable), receiving money from the buyer for the goods sold . Reducing time at any stage leads to increased efficiency in the use of working capital. The faster the capital turns around (or in a shorter period), the less time is required to return the invested funds, taking into account the increase in profit. Consequently, the amount of necessary financial resources decreases, more finished products are sold and the profit received by the enterprise increases. Thus, the duration of funds being in circulation has a direct connection with the obtained results of financial and economic activities. Effective management of the turnover process requires a deep understanding of both the process itself in all its diversity and the reasons that influence its change.

It is advisable to divide all factors leading to a reduction or increase in turnover into external and internal. External ones include the influence of inflationary processes, market conditions, geographical location of consumers, suppliers, subcontractors, solvency of customers, quality of banking services, toughness of competition, information and lack of economic ties. Internal factors are the scope, scale of activity, industry affiliation, level of specialization and cooperation, payment system, level of organization, production management, degree of mechanization and automation, progressiveness of the technologies used, qualification level of management, structure and range of products, etc.

The system of turnover criteria includes several groups of indicators:

turnover ratios characterize the rate of turnover of funds and show how many turnovers capital makes over a certain period (number of turnovers); they also estimate the amount of products sold per ruble of funds:

where L A is the coefficient of asset turnover; No. p - revenues from sales; L - average value of assets.

An increase in turnover leads to a reduction in the costs required per turnover. As a result, resources are freed up as invested funds quickly turn into real money. The level of financial stability and the degree of solvency, the relative size of semi-fixed expenses, and the amount of invested financial resources depend on the rate of turnover of funds;

turnover period indicators () give an idea of ​​the average period for which funds invested in production and commercial activities are returned, or show the duration of one turnover in days:

Where T - the period under consideration in days. Number of days (T) in the analyzed period it is customary to count in a quarter (90), half a year (180), and a year (360).

The faster capital circulates, the fewer days it takes to transform it into monetary form, the better and more efficient its use. Reducing the time spent by funds in assets leads to a decrease in the need for working capital;

load factor (fixation or capital intensity ratio) of current assets characterizes the amount of current assets advanced per ruble of revenue. It is calculated by the ratio of the average value of current assets to sales volume (the reciprocal of the traditional current asset turnover ratio):

The ratio evaluates the dynamics of fixed current assets in one ruble of sales revenue and serves as a measure of operational efficiency: the lower the ratio, the more intensively the assets are used. It reflects the level of management of accounts receivable and inventory;

economic effect of slowdown release ) working capital as a result of acceleration (deceleration) of their turnover determined on the basis of one-day turnover, which is calculated by dividing sales revenue by the number of days of the analyzed period and then multiplying by the change in the turnover period:

where ±EF is the economic effect; - change in turnover period.

The economic effect indicator may have a “plus” sign, which is regarded as additionally required financing, and a “minus” sign, indicating the amount of funds released from circulation. If the duration of the turnover has increased, additional days of the operating cycle will need to be financed in the amount of one-day turnover for each extra day. And vice versa: a reduction in turnover days (-D1) will indicate that as a result of more efficient use of resources in the next cycle, less funds will be required by the amount of the effect obtained.

The release of working capital due to the acceleration of their turnover can be absolute and relative:

• if the actual balances of working capital are less than the standard or the balances of the previous period, such a release is considered absolute. This means that current assets were more fully involved in turnover and more products were produced;
• in a situation of accelerated production growth in the presence of current assets within the limits of the previous need, a relative release takes place.

A comprehensive assessment of turnover is carried out using economic and mathematical models, identifying the causes and relationships of a number of indicators. The sequence of calculation procedures using the example of turnover of current assets (Table 13.2) includes analysis and assessment of factor dependencies of the turnover ratio, sales revenue and turnover period.

The change in the turnover ratio is influenced by two factors: sales revenue and the average value of current assets. The method of chain substitutions determines the quantitative impact of each of them on the turnover ratio:

Impact of changes in sales revenue ( AH^P)):

The impact on the turnover ratio of changes in the average balances of current assets for the period (Yes^^):

Sales volume may change due to the amount of resources consumed, i.e. extensive factor of asset use, and their intensive use - turnover ratio. An increase in revenue due to the turnover ratio characterizes the increased quality of operating capital management.

The calculation of factors in the multiplicative model = = AOxYA AO can be carried out using the absolute difference method:

Change in revenue due to the average annual value of current assets (DL^ 0)):

Change in revenue due to turnover ratio (LA"Dlo):

The influence of factors on the turnover period in a multiple model is carried out by the method of chain substitutions:

• change in the turnover period due to current assets
• (D ^(LO)) :

Change in turnover period due to sales revenue ():

Turnover ratios (business activity ratios) - a group of coefficients showing the intensity of use of assets or liabilities. The main turnover ratios are:

Relative indicators of business activity (turnover) characterizing the efficiency of using the organization's resources are turnover ratios. The average value of indicators is defined as the chronological average for a certain period (based on the amount of available data); in the simplest case, it can be defined as half the sum of indicators at the beginning and end of the reporting period.

All coefficients are expressed in times, and the duration of the turnover is in days. These indicators are very important for the organization. Firstly, the size of the annual turnover depends on the speed of funds turnover. Secondly, the size of the turnover, and, consequently, the turnover rate is associated with the relative value of production (circulation) costs: the faster the turnover, the less costs there are for each turnover. Thirdly, the acceleration of turnover at one or another stage of the circulation of funds entails an acceleration of turnover at other stages. The financial position of an organization and its solvency depend on how quickly funds invested in assets turn into real money.

Let's consider the formulas for calculating the most common turnover ratios (business activity).

Asset turnover ratio

The turnover of funds invested in the organization’s property can be assessed:

• turnover rate - the number of turnovers that the organization’s capital or its components make during the analyzed period;
• turnover period - the average period during which funds invested in production and commercial operations are returned to the organization’s economic activities.

The asset turnover ratio reflects the degree of turnover of all assets at the disposal of the organization on a certain date and is calculated as the ratio of sales revenue to the average value of the organization's assets for the period.

Asset turnover ratio = Revenue / Average amount of assets in the period

Total capital turnover period (in days) = Duration of the reporting period (90, 180, 270 and 360 days) / Total capital turnover ratio

Balance formula:

Koa = page 010 f. No. 2 / ((p. 300-244-252)ng + (p. 300-244-252)kg f. No. 1) / 2

Koa = page 010 f. No. 2 / 0.5 x (line 300 at the beginning of the year + line 300 at the end of the year) f. No. 1

where ng - data at the beginning of the reporting year; kg - data at the end of the reporting period.

Balance formula since 2011:

Koa = line 2110 No. 2 / 0.5 x (line 1600 at the beginning of the year + line 1600 at the end of the year) f. No. 1

Current asset turnover ratio (current asset turnover)

This coefficient characterizes the turnover rate of all mobile devices of the enterprise:

Current assets turnover ratio = Revenue / Average annual value of current assets

Period of turnover of current assets (in days) = Duration of the reporting period / Turnover ratio of current assets

Kooa = line 010 f. No. 2 / (page 290 ng + page 290 kg f. No. 1) / 2

Kooa = line 2110 / 0.5 x (line 1200 at the beginning of the year + line 1200 at the end of the year)

The indicator characterizes the number of complete product circulation cycles in a period. Or how many monetary units of sold products brought in each monetary unit of assets. Or in other words, it shows the number of turnovers of one ruble of assets during the analyzed period.

This indicator is used by investors to evaluate the effectiveness of capital investments.

Capital productivity. Non-current assets turnover ratio

Capital productivity reflects the efficiency of using the enterprise's fixed assets and is calculated using the formula:

Capital productivity = Revenue / Average annual cost of fixed assets

Fo = page 010 f. No. 2 / (page 120ng + page 120kg f. No. 1) / 2

Fo = line 2110 / 0.5 x (line 1150 at the beginning of the year + line 1150 at the end of the year)

Equity turnover ratio

The ratio shows the rate of turnover of equity capital or the activity of funds at risk to shareholders:

Equity turnover ratio = Revenue / Average equity capital

Equity turnover period (in days) = Duration of the reporting period / Equity turnover ratio

Kosk = page 010 f. No. 2 / ((pages 490-244-252+640+650)ng + (pages 490-244-252+640+650)kg f. No. 1) / 2

Kosk = page 010 f. No. 2 / (page 490ng + page 490kg f. No. 1) / 2

Kosk = line 2110 No. 2 / 0.5 x (line 1300 at the beginning of the year + line 1300 at the end of the year)

If this ratio is too high, then this means a significant excess of sales over invested capital, which entails an increase in credit resources and the possibility of reaching the limit when creditors are more involved in the business than owners. In this case, the ratio of liabilities to equity increases, the security of creditors decreases, and the company may have serious difficulties associated with a decrease in income. On the contrary, a low ratio means the inactivity of part of one's own funds. In this case, the coefficient indicates the need to invest one’s own funds in another source of income that is more appropriate to the given conditions.

It is useful to compare the values ​​of the equity turnover ratio with the values ​​for the same period operating capital turnover ratio. Functioning capital is the amount of own working capital that is constantly involved in turnover, i.e. the difference between own working capital and long-term accounts receivable along with overdue accounts receivable. The coefficient is calculated using the formula:

Operating capital turnover ratio = Revenue / Average operating capital for the period

By analyzing the values ​​of this coefficient, you can see a slowdown or acceleration in the turnover of capital directly involved in production activities. The resulting values ​​of this coefficient are cleared, in comparison with the indicator of total asset turnover, from the influence of enterprise investments that do not have a direct impact on sales volume, with the exception of investments in their own development.

Invested capital turnover ratio

The coefficient shows the turnover rate of the enterprise's long-term and short-term investments, including investments in its own development. The numerator is net sales revenue, the denominator is the average amount of invested capital for the period.

Invested capital turnover ratio = Revenue / (Average equity capital + Average long-term liabilities)

Turnover period of invested capital (in days) = Duration of the reporting period / Turnover ratio of invested capital

Kik = page 010 f. No. 2 / ((page 490ng + page 490kg)/2 + (page 590ng + page 590kg)/2) f.No.1

Kik = page 2110 No. 2 / (0.5 x (page 1300ng + page 1300kg) + 0.5 x (page 1400ng + page 1400kg))

The turnover of invested capital significantly depends on investment business processes in terms of making real and financial investments, as well as on the efficiency of operating activities in terms of using available resources. With an increase in investment activity and an intensive increase in property, turnover decreases, since newly acquired assets cannot immediately provide adequate returns in the form of revenue growth.

When analyzing these coefficients in dynamics, you can see how much faster or slower the capital that is temporarily withdrawn from production activities turns in comparison with the capital involved in production. In a more detailed analysis, it is necessary to take into account the structure of invested capital.

Debt capital turnover ratio

Debt capital turnover ratio = Sales proceeds / Average debt capital

Debt capital turnover period (in days) = Duration of the reporting period / Debt capital turnover ratio

Kz = page 010 f. No. 2 / ((page 590ng + page 590kg)/2 + (page 690ng + page 690kg)/2) f.No.1

Kz = line 2110 No. 2 / (0.5 x (line 1500ng + line 1500kg) + 0.5 x (line 1400ng + line 1400kg))

Accounts receivable turnover ratio

The ratio shows the rate of turnover of accounts receivable, measures the speed of repayment of an organization's accounts receivable, how quickly the company receives payment for goods sold (work, services) from its customers:

Accounts receivable turnover ratio = Revenue / Average annual accounts receivable

Kodz = page 010 f. No. 2 / ((p. 240-244) ng + (p. 240-244) kg f. No. 1) / 2

Kodz = line 2110 / 0.5 x (line 1230 at the beginning of the year + line 1230 at the end of the year)

Accounts receivable turnover period ( accounts receivable turnover in days) characterizes the average repayment period of receivables and is calculated as:

Receivables turnover period = Duration of the reporting period / Code

When analyzing business activity, special attention should be paid to the turnover of receivables and payables, because these quantities are largely interrelated.

A decrease in turnover can mean both problems with paying bills and a more efficient organization of relationships with suppliers, providing a more profitable, deferred payment schedule and using accounts payable as a source of cheap financial resources.

Accounts payable turnover ratio

This is an indicator of how quickly an enterprise repays its debts to suppliers and contractors. The accounts payable turnover ratio shows how many times (usually per year) the company pays the average amount of its accounts payable, in other words, the ratio shows the expansion or reduction of commercial credit provided to the company:

Accounts payable turnover ratio = Revenue / Average annual accounts payable

Kokz = page 010 f. No. 2 / (page 620ng + page 620kg f. No. 1) / 2

Kokz = line 2110 / 0.5 x (line 1520 at the beginning of the year + line 1520 at the end of the year)

Accounts payable turnover period = Duration of the reporting period / Kokz

Accounts payable turnover period ( accounts payable turnover in days). This indicator reflects the average period for repayment of a company's debts (excluding obligations to banks and other loans).

Inventory turnover ratio (inventories and costs)

The indicator reflects the inventory turnover of the enterprise for the analyzed period:

Inventory turnover and cost ratio = Cost / Average annual cost of inventory

Komz = page 020 f. No. 2 / ((page 210+220)ng + (page 210+220)kg f. No. 1) / 2

Komz = line 2120 / 0.5 x ((line 1210 + line 1220)ng + (line 1210 + line 1220)kg)

Cash turnover

The indicator indicates the nature of the use of funds in the enterprise:

Cash turnover ratio = Revenue / Average cash

Codes = page 010 f. No. 2 / (page 260ng + page 260kg f. No. 1) / 2

Codes = line 2110 / 0.5 x (line 1250 at the beginning of the year + line 1250 at the end of the year)

Cash turnover indicators characterize the speed of transformation of assets into cash, as well as the speed of repayment of liabilities; indicators reflect the degree of business activity and operational efficiency of the organization.

Economic effect as a result of accelerated turnover

The economic effect as a result of accelerated turnover is expressed in the relative release of funds from turnover, as well as in an increase in the amount of profit. The amount of funds released from circulation due to acceleration (-E) or additionally attracted funds into circulation (+E) when turnover slows down is determined by multiplying the one-day sales turnover by the change in the duration of the turnover:

E = (Actual revenue/Days in the period) * ΔReb

ΔDeb = Deb 1 - Deb 0

Pob = (Ost * D) / Revenue from sales of products

Where,
D - the number of calendar days in the analyzed period (year - 360 days, quarter - 90, month - 30 days);
Ost - the average annual value of working capital;
Pob 1 - duration of one revolution in the reporting period;
Reb 0 - duration of one revolution in the previous period.