From the course “Enterprise Economics” to everyonea graduate of the Faculty of Economics is aware that working capital is a certain combination of various production assets and circulation funds not in kind, but in monetary terms. The activity of any firm must be assessed properly, often for this purpose, statistical information is analyzed, and specifically the turnover ratio. The main task of productive assets isservice of the production sphere at the enterprise, and the circulation funds deal with the corresponding sphere. It is also known that the most basic conditions for the efficient production and sale of products require the constant availability of stocks of material values in industrial warehouses. These values are mainly consumed directly in the production process, as well as during storage or maintenance of finished products. To characterize the statistical data on the enterprise constantly use turnover indicators.
On this basis, working capital canName the assets of an enterprise that, in the production process, are able to completely transfer their own value to the product created, but they can only participate in such a process once, and then lose their original form or change it.
These indicators provide an opportunityanalyze the dynamics of the enterprise activity and form a further development policy. One of these indicators, experts call the load factor of working capital. With it, you can find out how much working capital falls on a unit of marketable products. To determine this ratio is quite easy, you just need to calculate the ratio of the average balance of working capital to the total volume of products sold by the enterprise.
Based on this, we can concludethe existence of a reverse indicator that would describe the number of revolutions of the assets of the enterprise for a certain period. This indicator is the turnover ratio, which is calculated as the ratio of the volume of sales to the average value of the balance of working capital on the balance sheet of the company.
This ratio is a financial indicator of the intensity of use of the obligations of the enterprise or its assets, that is, the speed or number of their turnover over the selected time.
The turnover ratio can have several variations, among them are the following:
1. The ratio of revenue per year to the average value of current assets is the turnover of current assets.
2. The ratio of annual sales revenue and the cost of inventory - inventory turnover.
And there are a lot of such factors, because this universal indicator makes it possible to analyze the flow of all assets of an enterprise and identify the most necessary or, on the contrary, unnecessary resources.
That is, if during the calculation it was revealed thatIf the annual turnover ratio of any assets is three, then this means nothing more than the number of revolutions of these resources in twelve months.
It is also worth paying attention to the indicatorsrationing of working capital, which is used as the development and formation of standards and norms of expenditure of assets, which are necessary for the continuous availability of the minimum inventory at the enterprise. All funds of the company can be divided into normalized and non-standardizable. In this case, the first include inventories, and the second - cash assets, finished products, as well as receivables.
Оборотные средства занимают важную часть среди other assets of the company, so their analysis is an integral part of the formation of plans and forecasts for production, as well as its implementation.
