Turnover of current assets formula. Calculation of the turnover ratio of material working capital

The student must:

Know

Indicators characterizing turnover working capital;

be able to:

Calculate working capital turnover indicators.

Guidelines

To analyze the use of working capital, assessment financial condition enterprises and the development of a plan of organizational and technical measures to accelerate their turnover and reduce the duration of one turnover, indicators are used that reflect the real process of movement of working capital and the amount of their release.

The estimated need for working capital is directly proportional to the volume of production and inversely proportional to the speed of their circulation (the number of revolutions). How larger number turnover of working capital, the less the need for working capital.

The turnover of working capital and the efficiency of their use are characterized by the following indicators:

Turnover ratio working capital shows the number of revolutions made by working capital during the period of time under consideration:

Revolutions or , revolutions

The turnover ratio also characterizes return on working capital and shows what volume of output (in prices or at cost) is provided by one ruble of working capital. The higher the value of the working capital turnover ratio, the more efficiently the working capital of the enterprise is used in the period under review, the higher the return on each ruble invested in working capital.

The time during which working capital completes the circuit, i.e., passes through the production period and the circulation period, is called the period, or the duration of the turnover of working capital. This indicator characterizes average speed movement of funds at the enterprise. It doesn't match actual period production and sale of certain types of products. Duration of one revolution in days (Add) determined by the formula:

Where OS- balances (availability) of working capital:

averages over a period of time (OSSR) or at the end of the period (OSK), rub.;

Qcomrade; Qreal - volume of commodity or products sold, rub.

Stov - cost price commercial products, rub.;

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

Loading factor (consolidation) of working capital (Kz) -- an indicator that is the inverse of the turnover ratio. It characterizes the capital intensity of working capital and shows the amount of working capital that ensures the production of marketable or sold products in the amount of I rubles. (in prices or at cost) and is calculated using the formula:

Rub. OS/RUB

How less value working capital load factor, the more efficiently the company's working capital is used in the period under review.

When analyzing the use of working capital, the amount of their absolute and relative release is calculated.

Absolute release working capital. It makes sense to calculate this indicator only when the same volume production according to plan and actually, or with the same volume of production in the reporting and base periods, since when the volume of production changes, the required value (amount) of working capital also changes. Absolute release calculated as the difference between the average balance (availability) of working capital involved in turnover of the subsequent and previous periods

, rub.

This indicator can have either a “plus” or a “minus” sign. If Δ OSabs has a minus sign, then there is a release of working capital, and if Δ OSabs has a plus sign, then funds for this amount are additionally involved in circulation.

For example, in practice, absolute release (with a minus sign) occurs when the actual need for working capital in the reporting period is less than planned, provided the same volume of products is produced.

Relative release working capital takes place only when accelerating working capital turnover, i.e. when reducing the duration of the 1st revolution and an increase in the number of turnover of working capital in the subsequent period of time compared to the previous period. In this case, the volume of production may change:

, rub. or

Rub. or

Qone– one-day production output (in prices or at cost) in the subsequent period (or actual), rub.;

ΔAdd– reduction in the duration of one turnover of working capital in the subsequent period of time compared to the previous period, days.

Minus sign ΔAdd shows that there is a release of working capital.

If Q0 = Q1 or Qpl= Qf, then the value Δ OCotn=Δ OSabs

The effective functioning of any enterprise is impossible without the competent and rational use of working capital. Depending on the type of activity, stage life cycle or even the time of year, the amount of working capital of an organization may be different. However, it is the availability and proper use of these resources that determines how successful and long-lasting the activities of any business entity will be.

In order to assess the correct use of a company's working capital, there are many coefficients that analyze the speed of circulation, sufficiency, liquidity and many others, no less significant characteristics. One of the most important indicators necessary to determine the financial condition of an organization is the working capital turnover ratio.

Turnover ratio (K rev), or turnover rate, shows how many times during the period of time under study the enterprise is able to completely turn over its own working capital. Thus, given value characterizes the efficiency of the company. The larger the value obtained, the more successfully the company uses its available resources.

Formula and calculation

The turnover ratio shows the number of revolutions made by working capital during the period of time under consideration. It is calculated as:

Where:

  • Q p is the volume of products sold at the organization’s wholesale prices excluding VAT;
  • F ob.av. – the average balance of working capital found during the period under study.

If you remember approximate view circulation cycle Money at an enterprise, it turns out that the money that the organization invests in the work of its company returns to it after some time in the form of finished products. This product The company sells to its customers and again receives a certain amount of money. Their value is the income of the organization.

Thus, general scheme“money-product-money” implies the cyclical nature of the company’s activities. The turnover ratio in this case shows how many similar turnovers the organization’s funds can make in a certain period of time (most often in 1 year). Naturally, for the effective and fruitful operation of an enterprise it is necessary that this value was as large as possible.

Necessary indicators for calculation

The working capital turnover ratio can be determined using the data presented in the financial statements of the organization. The quantities needed to determine it are shown in the first and second forms of financial statements.

So, in the general case, the volume of products sold is calculated as the revenue received by the organization in one cycle (since in most cases an annual coefficient is used for analysis, in the future we will take into account the time period t=1). Revenue for the specified period is taken from the income statement financial results(former income statement), where it is shown in a separate line as the amount received by the enterprise from the sale of work, goods or services.

The average balance of working capital is found from the second section of the balance sheet and is calculated as:

Where F 1 and F 0 are the amounts of the company’s working capital for the current and past periods of time. Note that if the calculations use data for 2013 and 2014, then the resulting coefficient will represent the rate of funds turnover specifically for 2013.

In addition to the turnover ratio in economic analysis, there are other values ​​that analyze the turnover rate of an organization’s working capital. Many of them are also closely related to this indicator.

Thus, one of the values ​​accompanying the turnover ratio is duration of one revolution (T rev). Its value is calculated as the quotient of dividing the number of days corresponding to the analyzed period (1 month = 30 days, 1 quarter = 90 days, 1 year = 360 days) by the value of the turnover ratio itself:

Based on this formula, the duration of one revolution can also be calculated as:

Another important indicator used when analyzing the financial condition of an organization is utilization rate of funds in circulation K load. This indicator determines the amount of working capital required to receive 1 ruble of revenue from product sales. In other words, the coefficient shows how many percent of the organization’s working capital falls on one unit of the final result. Thus, in another way the load factor can be called the capital intensity of working capital.

It is calculated using the following formula:

As can be seen from the methodology for calculating this indicator, its value is the inverse of the value of the turnover ratio. And this means that the lower the load indicator, the higher the efficiency of the organization.

Another generalizing factor in the efficiency of using working capital is the value profitability (R ob.av.). This ratio is characterized by the amount of profit received for each ruble of working capital, and shows financial efficiency activities of the organization. The formula for calculating it is similar to the values ​​​​used to find the turnover ratio. However, in this case, instead of revenue from sales of products, the enterprise’s profit before tax is used in the numerator:

Where π is profit before tax.

Also, as in the case of the turnover ratio, than more value return on capital, the more financially stable the enterprise’s activities.

Turnover ratio analysis

Before moving on to analyzing the turnover ratio itself and looking for ways to increase the efficiency of an organization, we will define what is generally meant by the concept of “working capital of a company.”

Working capital of an enterprise is understood as the amount of assets that have a lifespan beneficial use less than one year. Such assets may include:

  • stocks;
  • unfinished production;
  • finished products;
  • cash;
  • short-term financial investments;
  • accounts receivable.

In most cases, a company's turnover ratio is approximately same value over a long period of time. This value may depend on the types of core activities of the company (for example, for trade enterprises this indicator will be the highest, while in the field of heavy industry its value will be quite low), its cyclical nature (some companies are characterized by a surge in activity in certain seasons) and many others factors.

However, in general, in order to change the value of this ratio and increase the efficiency of using the company’s assets, it is necessary to competently approach the working capital management policy.

Thus, a reduction in inventories can be achieved through a more economical and rational use of resources, reducing the material intensity of production and the amount of losses. In addition, significant improvements can be achieved through more effective management supplies.

The amount of work in progress is reduced by rationalizing the production cycle and reducing the cost of inventory. And reducing the amount of finished products in stock can be achieved with the help of more advanced logistics and aggressive marketing policies of the organization.

Note that a positive impact on even one of the values ​​presented above already has a significant impact on the turnover ratio. In addition, it is possible to achieve an increase in the efficiency of using working capital at an enterprise in indirect ways. Thus, the value of the indicator will be higher with an increase in the organization’s profit and sales volumes.

If, when plotting the dynamics of the turnover ratio over a long period of time, one can note a stable decrease in its value, this fact may be a sign of a deterioration in the financial condition of the company.

Why might it be declining?

There are several reasons for reducing the turnover ratio. Moreover, its value can be influenced by both external and internal factors. For example, if the general economic situation in the country worsens, the demand for luxury goods may fall, the appearance of new models of electrical equipment on the market will reduce the demand for old ones, and so on.

There may also be several internal reasons for a decrease in turnover rate. Among them it is worth highlighting:

  • errors in working capital management;
  • logistics and marketing errors;
  • growth of the company's debt;
  • use of outdated production technologies;
  • change in the scale of activity.

Thus, most of the reasons for the deterioration of the situation at the enterprise associated with management errors and low qualifications of workers.

At the same time, in some cases the value of the turnover ratio may decrease due to the transition to new level production, modernization and use of new technologies. In this case, the value of the indicator will not be associated with the low efficiency of the company.

Let's consider a certain organization "Alpha". Having analyzed the company’s activities for 2013, we learned that revenue from sales of products at this enterprise amounted to 100 thousand rubles.

At the same time, the amount of working capital was equal to 35 thousand rubles in 2013 and 45 thousand rubles in 2012. Using the data obtained, we calculate the asset turnover ratio:

Since the resulting coefficient is 2.5, we can note that in 2013 the Alpha company had the duration of one turnover cycle:

Thus, one production cycle of the Alpha enterprise takes 144 days.

Explanation of the essence of the working capital turnover indicator

Working capital turnover (English equivalent - Current Asset Turnover) - indicator business activity, which measures the efficiency of use current assets company (cash, inventory, inventory, accounts receivable). The ratio demonstrates the ratio of revenue to the average amount of current assets for the period. The value of the indicator indicates the number of revolutions made by current assets. In fact, an increase in the value of the indicator indicates that the company needs fewer resources in order to maintain the current level of activity. This leads to the release of part of the financial resources, which can be used to intensify current activities. A decrease in turnover leads to an increase in the need for financial resources. In the absence of access to cheap financial resources this will lead to an increase in the company's financial costs.

Standard value of working capital turnover:

The value of the indicator fluctuates depending on the field of activity of the company, so how is it normative meaning absent. A higher value compared to competitors indicates intensive use of current assets. The increase in the indicator during the study period is good sign, since it indicates permanent job companies to improve the management policy of inventories, accounts receivable, cash and other current assets.

Directions for solving the problem of finding an indicator outside the standard limits

If the indicator value is low, then the reserves for increasing it can be as follows:

Reducing the amount of inventory to a minimum permissible level which will ensure uninterrupted operational process;

Sales promotion and reduction in the amount of inventories of finished products and goods;

Implementation of measures to accelerate the repayment of accounts receivable;

Formula for calculating working capital turnover:

Asset turnover (for the year) = Revenue (Net income) / Average annual volume of current assets (1)

As with other annual averages, it must be remembered that there are several ways to calculate the average annual amount of current assets. If you have access to internal information of the company, then you should find the average based on the value of the indicator at the end of each working day. If there is monthly reporting, then the value of the indicator at the end of each month is used. If there are only annual reports, then the value at the beginning of the study period and at the end of the study period is used.

Formula for calculating the average annual amount of current assets:

Average annual volume of current assets (most The right way) = Sum of volumes of current assets at the end of each working day / Number of working days (2)

Average annual volume of current assets (if only monthly data is available) = Sum of volumes of current assets at the end of each month / 12 (3)

Average annual volume of assets (if only annual data is available) = (Volume of assets at the beginning of the year + volume of assets at the end of the year) / 2 (4)

An example of calculating working capital turnover:

Company OJSC "Web-Innovation-plus"

Unit of measurement: thousand rubles.

Current assets turnover (2016) = 900/(134/2+122/2) = 7.03

Current assets turnover (2015) = 885/(122/2+110/2) = 7.63

The data obtained show that the efficiency of use of current assets by the Web-Innovation-plus company is decreasing. If in 2015, for every ruble of current assets, goods and services worth 7.63 rubles were sold, then in 2016 - only 7.03 rubles. The main factor in the decline in the indicator is the constant increase in the amount of receivables for goods and services. Given that sales volume remains relatively stable during the study period, an increase in the amount of receivables for goods and services is a negative phenomenon. To increase the turnover of current assets, it is necessary to take measures to return the company's funds. To eliminate the risk of a problem occurring in the future, it is necessary to develop a comprehensive strategy for commercial lending to clients. As part of the strategy, it is necessary to divide all buyers into groups, depending on the history of cooperation, their financial condition and their importance for the company. The main share of commodity (commercial) loans should fall on the most reliable and important clients.

Working capital of an enterprise refers to assets used in the current activities of the organization. According to Russian standards accounting(RAS) these include: stocks of raw materials and supplies, finished goods and work in progress, cash and cash equivalents (such as air and railway tickets, travel tickets, etc.), goods purchased for resale, accounts receivable debt, as well as financial investments for a period of less than one year.

Without competent and rational use This group of assets makes economic activity of any organization impossible.

That is why it is so important to carefully monitor the ways and procedures for using the company’s working capital. In economic analysis, one of the most significant indicators for assessing the effectiveness of the use of a company's working capital is the turnover ratio of the company's current assets.

Calculation procedure

The working capital turnover ratio allows you to determine how much rational and intensive The company's current assets are used.
In other words, it shows how much revenue an enterprise receives per ruble of working capital.

Thus, the turnover ratio is calculated as:

K_rev = TR/(P_(rev.avg.))

Where:
TR is the revenue or volume of products sold during the analyzed period of time excluding VAT;
(P_(ob.av.)) — average cost the company's working capital for the specified period.

Since the main goal of managing company assets is profit maximization organization received per unit of invested capital, then it is with the help of this coefficient that the owner can analyze the return received from current assets. The higher the value of this indicator, the more efficiently the working capital is used in the company!

Data for calculation

Traditionally for calculation economic indicators data from the company's financial statements is used. To calculate the turnover ratio of current assets, the information presented in the Balance Sheet (Form No. 1) and the Statement of Financial Results (formerly the Profit and Loss Statement) (Form No. 2) is required. It is obvious that reporting is used precisely for the period of time that is being analyzed.

The average cost of an organization's working capital for twelve months is found as the difference between the value of working capital at the beginning and end of the year, divided in half.

(P_(rev.average)) = (P_(rev.average 2) - P_(rev.average 1))/2

Where:
Р_(vol.av.1) - the amount of the company’s working capital at the beginning of the period;
Р_(vol.av.2) - the amount of working capital at the end of the period.

All this data is presented in the organization’s balance sheet in the line “Total for Section II”.

As for revenue (TR), information about it can be found in the second form of financial statements, in the Statement of Financial Results (line “Revenue”).

General information about the working capital of an enterprise can be obtained from the following video material:

Factors influencing the value of the coefficient

Several factors influence a company's working capital turnover ratio. Firstly, its meaning is related to the amount of working capital companies, i.e. the higher it is, the lower the final figure. Secondly, the coefficient is also affected by the indicator amount of products sold.

Thus, if a company consistently demonstrates high revenue, then an increase in working capital for one period may not have any effect on the final value of the turnover ratio.

Turnover ratio analysis

When analyzing the turnover ratio, it should be understood that its values ​​​​are not always directly related to efficiency or inefficiency economic activity enterprises. In most cases, its value can be explained by several important factors:

  • the company's field of activity;
  • production cycle;
  • stage of the life cycle.

So, for example, for material-intensive areas production characteristically much lower coefficient values ​​than for trading companies, and an organization in a growth stage will always use large quantity working capital than an organization in decline. That is why it is possible to analyze the value of the turnover indicator only in dynamics. It is best to consider the coefficient values ​​over 5–10 years. In this case, it is possible to clearly determine both the length of one production cycle of the company and the efficiency of using working capital.

In addition, in order to understand how rationally resources are used at a particular enterprise, it is worth comparing the data obtained with industry averages. But even in this case, underestimated or overestimated values ​​of the coefficient will not testify about positive or negative results. Thus, it is impossible to draw any conclusions based only on data on the value of the turnover ratio. To correctly determine the current situation it is necessary full economic analysis enterprises.

Information about efficiency indicators for the use of working capital can be obtained from the following video:

How to increase your turnover ratio

If, after analyzing the organization’s economic activities, it was revealed that there are no objective reasons for the underestimated value of the working capital turnover ratio, then it’s time to look for solutions this problem, and there may be several such ways.

Firstly, you can reduce the company's working capital, i.e. sell off the remaining finished products, reduce purchases of raw materials and materials, deal with accounts receivable, and so on. Reducing working capital costs will allow the company to significantly increase its turnover ratio.

Secondly, you should pay attention to the company's revenue. If it is not possible to reduce current assets, then it is necessary to look for new ways to sell products. However, it should be understood that attracting new customers and increasing sales volumes in most cases leads to an increase in production volumes. Thus, along with the company’s revenue, working capital expenses may also increase, which will entail a decrease in the value of the ratio.

Possible reasons for the decline

If, when analyzing the company’s working capital turnover, it was revealed that the value of this ratio is continuously decreasing and this is in no way related to the production cycle of the enterprise, then it’s time to pay attention to ways to use working capital.

First of all, it is necessary to carry out comprehensive analysis all components of the company’s working capital and identify which line of the balance sheet has the largest specific gravity. Most often, companies suffer from excessively large inventories and receivables.

If a company's inventories grow from period to period, but the volume of products sold does not change, then the main problem is errors in logistics. In other words, the organization purchases more raw materials and materials than is needed for its current activities. To solve this problem the supply chain should be debugged, contracts with suppliers should be reviewed, and optimal inventory levels for a continuous production process should be calculated once again.

Another problem may be settlements with buyers and customers; it is from them that, for the most part, the company’s receivables are formed. Many large companies prefer to pay their suppliers only at the end of the reporting period, while the finished products were shipped at the very beginning. There are no universal ways to solve this problem, and the organization itself chooses how to influence its clients.

The company invests its working capital in current business and production operations.

Turnover ratios(indicators) have great value to assess, analyze and forecast the financial condition of the company or enterprise, since the rate at which current assets are converted into cash has a significant impact on profitability, creditworthiness and solvency.

The turnover ratio characterizes:

  • number of revolutions, which working capital makes during the analyzed period of time (for example, a quarter or a year);
  • revenue, per one monetary unit, for example, one ruble of working capital.

Formula for calculating the working capital turnover ratio

The turnover ratio can be determined by dividing the revenue received over a period of time by the average amount of working capital for the same period.

The formula that determines the turnover ratio is the ratio of sales revenue for a quarter or year to the average amount of working capital:

Cob = RP/CO, where

  • To ob.- turnover ratio;
  • RP- sales revenue for the analyzed period (for example, quarter or year);
  • CO- the average amount of working capital for the same period (calculated as the arithmetic mean: the amount of working capital at the beginning and end of the same period, divided by two).

What are the sources of information for the calculation?

The source of information for calculating the turnover ratio is:

  • annual accounting balance;
  • income statement(formerly profit and loss).

The balance of the line with code 1200 shows the total amount of current assets.

In the income statement, line code 2110 reflects sales proceeds, excluding value added tax and excise taxes.

Cob = line 2110 Form 2 / (line 1200 beginning year Form 1 + line 1200 ending year Form 1) / 2

Example.

The billing period is one year.

The proceeds from the sale are 900 million rubles.

The average annual amount of working capital is 300 million rubles.

Let's calculate the turnover ratio:

This means that per ruble of working capital, goods worth 3 rubles were sold. The annual amount of working capital (300 million rubles) made 3 turnovers.

What factors does the coefficient depend on?

The value of the turnover ratio is influenced by various economic, political and production factors.

External factors:

  • industry in which the company operates or organization;
  • enterprise size(small, medium, large);
  • scope and type of activity enterprises;
  • economic situation in the country;
  • inflationary processes;
  • expensive loans;
  • promotion taxes.

Internal factors directly depend on the operation of the enterprise itself, for example:

  • management system efficiency assets;
  • accounting policies;
  • price policy;
  • volume of sales and the rate of its change;
  • assessment methods stocks;
  • system improvement calculations;
  • qualification personnel.

The turnover ratio mainly depends on the industry in which the organization or enterprise operates. Trade enterprises have the highest coefficients. Business in the field of science or culture does not have such a high indicator.

How to determine the profitability of working capital of fixed assets?

The profitability of the enterprise's turnover shows how effectively the organization's working capital is used - the amount of profit per 1 ruble of current assets.

Formula for calculating the profitability of working capital

K p = PE/SO, Where

  • Emergency— net profit for the analyzed period (for example, quarter or year);
  • CO— average amount of working capital.

Balance sheet profitability formula:

K p =line 2400 / line 1200.

If the profitability ratio increases, then the company receives enough profit to make efficient use of current assets.

Analysis of the turnover ratio of current assets

Turnover ratio analysis- the main component of financial analysis.

Carried out using:

  • comparison of actual indicators(proceeds from sales, amounts of current assets) with planned ones;
  • comparison of actual indicators with relevant historical data.

As a result of the comparison, either the acceleration of turnover (the coefficient will increase) or the slowdown (the coefficient will decrease) is determined.

Increase in coefficient:

  • leads to release material resources;
  • volume increase products;
  • helps increase business activity and profits;
  • allows you to allocate funds for development and modernization, without attracting additional loans for this;
  • indicates improved methods of using and organizing inventory at the enterprise.

An increase in the turnover ratio indicates that current assets are used efficiently and effectively. In general, the financial condition and solvency of the enterprise improves.

Increasing the turnover ratio is achieved by:

  • increase in sales growth compared to growth working capital;
  • technology modernization production;
  • improving the marketing system, sales and supply;
  • increasing competitiveness;
  • quality improvement products;
  • reduction in production cycle;
  • payment compliance disciplines.

A decrease in the turnover ratio leads to a deterioration in the financial condition of the organization or enterprise, there is a need to raise additional funds.

Reasons for reducing the working capital turnover ratio

The economic crisis and its components have a negative impact on the turnover ratio, for example:

  • decline in volumes production;
  • decline in consumer demand;
  • violation of contractual and payment agreements obligations.

Also, a decrease in the turnover ratio can be caused by the following reasons:

  • accumulation and excess of working capital(most often stocks);
  • low qualifications personnel;
  • growth of accounts payable enterprises;
  • ineffective marketing policy;
  • errors in the logistics system.

Timely detection and elimination of the causes of a decrease in the turnover ratio will help to avoid a financial crisis and bankruptcy of the enterprise.

Is there a normal turnover ratio?

There is no norm or so-called standard turnover ratio.

Therefore, the main task for economists– observe in a timely manner what will happen to the dynamics of changes in the indicator over certain periods of time. For comparison, you can use data from other organizations and enterprises that operate in a similar industry.

If the turnover ratio increases over time This means that the financial well-being and solvency of the enterprise is growing.

If the turnover ratio decreases every year, it is recommended to immediately review economic policy business.



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