For the period of each operating cycle. In other words, these are the firm's funds invested in current assets ( working capital). Working capital, like fixed capital, expresses certain production relations that develop with the development of entrepreneurship.

Working capital is directly involved in the creation of new value, functioning in the process of the circulation of all capital. In this case, the ratio of fixed and working capital affects the amount of profit received. Working capital circulates faster than fixed capital. Therefore, with an increase in the share of working capital in the total amount of advanced capital, the turnover time of the entire capital decreases, and, consequently, the possibility of the growth of new value increases, i.e. arrived.

There is a concept net working capital... Its value is determined as the difference between current assets and current liabilities, current liabilities. Under normal conditions of functioning of economic entities, the value of current assets is higher than current liabilities, i.e. the amount of working capital exceeds accounts payable.

Definition 2

Net working capital in traditional terminology, it is nothing more than its own working capital.

Working capital is characterized not only by the volume and structure, but also by the liquidity of current assets. The degree of liquidity is determined by the ability of current assets to turn into cash in the course of circulation. This takes into account that, for example, production stocks are less liquid than finished products, and the funds are absolutely liquid.

Features of working capital management determined by the structural affiliation of economic entities. If trade organizations have a high specific gravity goods, at industrial enterprises- raw materials and supplies, then financial corporations are dominated by cash and cash equivalents.

According to financial management theory, working capital consists of permanent and variable capital... That part of the current assets that is constantly at the disposal of the enterprise and in the amount of the required minimum provides economic activity, constitutes the basis of the constant working capital.

When an additional need for funds arises, due, for example, to the seasonal nature of production and sales or other objective reasons, a variable working capital is formed.

Remark 1

Thus, the efficiency of working capital management is determined by a number of factors: the volume and composition of current assets, their liquidity, the ratio of own and borrowed sources of coverage of current assets, the amount of net working capital, the ratio of constant and variable capital and other interrelated factors.

Definition 3

Working capital of business entities participating in the circulation of the market economy means, it is an organically unified complex. Working capital is money advanced into circulating production assets and circulation funds, which ensure both the production process and the circulation process.

The circulating capital (circulating assets) of the enterprise, participating in the process of production and sale of products, makes a continuous circulation. In this case, the funds are transferred from the sphere of circulation to the sphere of production and vice versa, taking the form of circulation funds and circulating production assets.

Working capital phases

Thus, passing through three successive phases, circulating assets change their natural-material form.

1. In the first phase(M - T) circulating assets, which initially have the form of cash, are converted into inventories, i.e. move from the sphere of circulation to the sphere of production.
2. In the second phase(T ... P ... T,) circulating assets participate directly in the production process and take the form of work in progress, semi-finished products and finished products.
3. Third phase the circulation of circulating assets (C - D) occurs again in the sphere of circulation. As a result of the sale of finished products, circulating assets take the form of cash again.

The difference between the received cash proceeds and the initially spent cash (D - D) determines the amount of the firm's cash savings. Thus, making a complete circuit (M - T ... P ... T - D,), the circulating capital functions at all stages in parallel in time, which ensures the continuity of the process of production and circulation. The circulating capital is an organic unity of its three phases.

Unlike fixed capital, which repeatedly participates in the production process, working capital functions in only one production cycle and completely transfers its value to the entire manufactured product.

According to the sources of formation, working capital is divided into equity and borrowed (attracted). Own working capital of enterprises with development entrepreneurial activity and corporatization plays a decisive role, as it ensures financial stability and operational independence of an economic entity. Own circulating assets of the privatized enterprises are at their complete disposal. Enterprises have the right to sell them, transfer them to other business entities, citizens, lease them, etc.

Borrowed capital, attracted in the form of bank credit of other forms, covers the additional need of the enterprise for funds. At the same time, the main criterion for the terms of lending by the bank is the reliability of the financial condition of the enterprise and the assessment of its financial stability.

Remark 2

The placement of working capital between enterprises of different industries predetermines the sectoral structure of working capital. So, in the sphere of production, the structure of working capital is determined by the degree of concentration, the nature and duration of the production process, its material consumption, the level of technical equipment and other factors. At the enterprises of the sphere of circulation, the share of inventories is higher.

Working capital management

Working capital management closely related to its composition and location. In various economic entities, the composition and structure of working capital is not the same, since it depends on the form of ownership, the specifics of the organization of the production process, relationships with suppliers and buyers, the structure of production costs, financial condition and other factors. Typical composition and placement of working capital are shown in the figure:

Picture 1.

The condition, composition and structure of inventories, work in progress and finished goods are an important indicator of the commercial activity of an enterprise. Determining the structure and identifying the trend of changes in the elements of working capital make it possible to predict the parameters of the development of entrepreneurship.

The structure of working capital (working assets) by sectors of the Russian economy, including industry, is presented in the table:

Figure 2.

The structure of working capital in industry is basically identical to the corresponding average indicators for the sectors of the economy. It is characteristic that about one third of the current assets in the industry are stocks. More than half of the funds are in the calculations, namely in accounts receivable. The share of short-term financial investments and funds accounts for almost $ 14 \% $. This is due to the fact that cash has absolute liquidity and quick turnover, in contrast to this type of current assets, such as receivables... The predominance of funds in settlements in the current conditions is due to the difficulties of the transition period, economic restructuring, inflation and, consequently, violations of financial and payment discipline.

Working capital is the capital invested by an enterprise (firm) in current activities for the period of each operating cycle. In other words, these are funds invested in current assets (current assets). Working capital, like fixed capital, expresses a certain product of the relationship in the process of entrepreneurial activity.
Working capital participates directly in the creation of new value, functioning in the process of the circulation of all capital.
At the same time, the ratio of fixed and working capital affects the amount of profit received. Working capital circulates faster than fixed capital. Therefore, with an increase in the share of working capital in the total amount of advanced capital, the turnover time of the entire capital decreases, and therefore the possibility of growth of new value increases, i.e. arrived.
There is a concept of net working capital (or own working capital). It is defined as the difference between current assets and current liabilities. Under normal operating conditions, this value is positive.
Working capital is characterized not only by the volume and structure (by specific weight), but also by the liquidity of current assets.
Liquidity is the rate of transformation of individual elements of circulating assets into cash in the course of circulation.
Features of working capital management
The peculiarities of working capital management are determined by the branch affiliation of economic entities. For example, trade organizations have a high share of goods, industrial enterprises have raw materials and work in progress, and financial corporations are dominated by cash and cash equivalents. The efficiency of working capital management is determined by its volume and composition.
Working capital is money advanced into circulating production assets and circulation funds, which ensure both the production process and the circulation process.
The circulating capital (circulating assets) of the enterprise, participating in the process of production and sales of products, makes a continuous circulation, while the funds pass from the sphere of circulation to the sphere of production and vice versa, consistently taking the form of circulation funds and circulating production assets. Thus, passing through three successive phases, circulating assets change their natural - material form.
In the first phase (D – T), circulating assets, which have the initial form of cash (D), are transformed into inventories (T), i.e. move from the sphere of circulation to the sphere of production. In the second phase (T ... P ... T1) circulating assets are directly involved in the production process and take the form of work in progress, semi-finished products and finished products. The third phase of the circulation of circulating assets (T1 - D1) occurs again in the sphere of circulation. As a result of the sale of finished products, circulating assets take the form of cash again. The difference between the received cash proceeds and the initially spent cash (D1 - D) determines the amount of cash savings of the firm (enterprise).
Thus, completing a full circuit (M - T ... P ... T1 - M1), the circulating capital functions at all stages in parallel in time, which ensures the continuity of the process of production and circulation. Working capital participates in only one production cycle and completely transfers its value to the entire manufactured product.
Working capital management is related to its composition and placement. The composition and structure of working capital is not the same for various business entities and depends on the specifics of the organization of the production process, financial condition and other factors.
Typical composition and placement of working capital are presented in Table 7.1.
Table 7.1
Working capital of the enterprise

More on the topic 7.4. Working capital of the enterprise: economic content and fundamentals:

1. 1.3. Sectoral features of the formation of working capital
2. 5.2. Rationalization of the capital structure of agricultural formations based on an objective assessment of the elements of working capital
3. Financial aspects of the circulation of fixed and working capital
4. Working capital (working capital) of enterprises: the essence, composition and ways of increasing the efficiency of use

The problems of finding channels for attracting, expanding the volume and efficiency of using the company's working capital are becoming increasingly acute in the current economic conditions of Russia. And this is connected not only with the variety of forms of ownership, but also with the situation on the market.

Current assets are resources that are consumed in full during one production cycle. It is a liquid asset that directly brings net profit to any company, in contrast to the economic activities of a company, which generates profits indirectly. But talking about the proceeds received from the circulation of working capital is not entirely correct, because it also does not exist as an independent unit. It always becomes the basis for the emergence and development of the organization. Without this asset, no organization can exist. This is why it is so important for any leader to be able to effectively manage working capital firms.

• Authorized capital of the organization: size, accounting, analysis and audit

What is the working capital of the enterprise

Features of current assets flow from their essence. These funds are spent in full over several production cycles. An example of such funds is chocolate supplied to production line for making sweets.

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Working capital, working capital and current assets - this is the share of the company's capital, which is used in the day-to-day work of the company. These are investments that are spent on maintaining the day-to-day operation of all departments of the firm.

Working capital contains:

• company stocks;
• accounts receivable;
• VAT separated from the value of purchased goods;
• investments;
• cash from the organization's cash register, as well as funds stored in the company's current account.

Working capital functions during the operating period of the firm. As already noted, working capital is expended in one production cycle. Therefore, the value of its cost is ultimately distributed among all manufactured units of finished goods.

Its main function- ensuring a stable and continuous workflow. This stability is possible thanks to the constant circulation of circulating assets. In carrying out its function, working capital goes through 3 phases:

1. In the first stage, working capital exists in the form of cash. These funds, being in monetary circulation, are directed to the purchase of raw materials and materials for the subsequent manufacture of the final product.
2. In the next phase, this capital circulates in the sphere of production and is transformed into the final products of the firm.
3. In phase 3, the working capital is converted back to cash. This is done through the sale of products.

One of the cornerstones of financial management is the competent and efficient management of the company's working capital. It is not difficult to determine the working capital in the balance sheet and track its function in the structure of the firm's work. For these purposes, there is a clear classification system for the following featured:

1. Sources of working capital:

• gross current assets - a set of borrowed and own funds, ensuring the smooth operation of the company at the moment;
• net current assets - a set of borrowed and own funds, the depth of the loan for which is more than one year. There is a generally accepted scheme for determining net working capital. This value is found by subtracting the amount of current financial liabilities from the amount of gross current assets (OA - TFO);
• own circulating assets - capital created from the firm's own assets. (COA = OA - D3K - TFO);
• current financial liabilities (short-term);
• gross current assets;
• long-term borrowed capital - is a set of long-term financial liabilities of the organization, taken from a third-party structure in a loan at interest, and converted into working capital. But company policy may not allow this, and the organization may not use long-term loans for this purpose.

1. Types of assets:

• stocks, raw materials;
• final products of the company;
• short-term DZ.

1. Functionality in the current activities of the organization:

• means that serve the production cycle. This includes inventories, raw materials for final products, work in progress and, in fact, final products;
• capital that serves the mechanism of monetary circulation. This section includes DZ and the aggregate of goods and materials in monetary terms minus the firm's debt to creditors.

1. The length of time for which funds are applied:

• the permanent component of working capital is the lower threshold of the funds necessary to maintain the normal operation of the company, its current activities and the performance of the assumed functions. This value does not depend on the increase in sales and production volumes compared to the previous period, and is also not subject to seasonality. This does not include the funds required to stockpile commodities and materials during peak demand;
• the variable component of working capital is the sum of funds that fluctuate depending on the amount of sales, inventory, seasonal changes in the structure of demand, etc.

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Fixed and working capital: what is the difference

The capital of the organization is formed from the main and circulating. The amounts of both components through a full turnover are converted into cash with only one difference - in different periods of time required to complete the process.

Main capital‒ part of the organization's funds that are used in the long term as buildings, structures, machinery and equipment, machine tools, personal computers. The cost of these funds is distributed among all units of manufactured products through depreciation. Ultimately, the funds spent by the owner of the company for the acquisition of fixed assets are returned to him in the form of net profit. As an example, we can cite concrete rooms, the service life of which is from fifty years, cars, the service life of which is more than ten years. Suppose that a businessman has spent 500,000 rubles to buy a car. Term useful use is ten years old. Thus, every year 1/10 part (that is, 50,000 rubles) of the value of the car will be distributed among all the products of the company intended for the final consumer.

Working capital- a necessary component in the activities of any company. The entire amount of working capital is ultimately included in the price of the finished product or product. As an example, here we can cite a hand tool - a cook's knife, which after a year goes into substandard.

The working capital also includes the salaries of the employees. Every entrepreneur seeks to reduce the period of capital turnover. The sooner the funds spent on remuneration of personnel are returned, the more financial opportunities will arise for other investments, which in any case will ultimately be used to increase profits over the previous period.

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How is the structure of working capital

• To a large extent, the content of working capital is influenced by the sphere in which the enterprise is located.

It is possible to analyze the influence of a specific sphere on the structure of working capital based on the turnover indicators, which reveals the ratio of the level of the required asset to the average statistical profit per day.

• Stages of enterprise development.

In the process of prosperity, each company goes through certain stages - a stage of strong growth, a stage of gaining a stable position in the market and a stage of declining sales. Depending on the stage, the corresponding structure and amount of working capital are allocated.

• Carrying out work with contractors.

The amount of working capital is influenced by the geographical location of buyers and suppliers, and supply agreements.

• Inflation time.

This provision is one of the main ones, directly from which actions with working capital are determined.

• Changes in the level of sales in different periods of seasonality.

For a number of factors, the products of the enterprise may depend on the level of growth or decline in sales during the season.

• Competition.

To attract buyers in a highly competitive environment with consolidation of positions in the market, enterprises are trying to give buyers a long delay in payments with the formation of such conditions that the products that the client needs always remain in the warehouse.

If an enterprise is a monopolist in its industry with the right to put forward its own conditions, reduce the term for loans, while limiting the range of products with high popularity, then it has a real opportunity to reduce the volume of working capital, which cannot be said about the first case.

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How and from what the working capital is formed

One of the main methods of organizing working capital is to divide it into parts depending on the sources with which the formation takes place. Each of the sources for the formation of working capital is divided into personal and equivalent funds, borrowed, attracted, etc. Sources of, thanks to which current assets and working capital are formed, are recorded in the balance sheet liabilities of the company's accountants.

1. Own working capital

Working capital, which was formed from the personal sources of the enterprise, in many areas of industrial production forms the basis of the working processes of production. Personal financial resources are of great importance in the process of organizing the turnover of funds, since organizations that carry out activities relying on commercial calculation must have property independence in order for production to be profitable, and the company can be held responsible for the actions taken.

Formation circulating assets in terms of equity capital is carried out during the period of organization of production, when its authorized capital is formed. In this situation, the source for creation is the investments that the founders of the enterprise make. The main place in the organization of finance turnover is occupied by its own funds.

On an equal footing with statutory funds, the source of financing for working capital is the organization's earned income, as well as stable liabilities, which are equated to personal funds. They are not owned by the enterprise, but are continuously involved in its turnover.

1. Debt working capital

In order to reduce the level of the organization's need for the use of working capital, as well as to stimulate its fruitful use, it is necessary to attract borrowed funds. In most cases, these are short-term loans from commercial banks, which are able to meet the auxiliary needs of the organization in current assets. Therefore, the second source of creating working capital is a loan taken from a bank.

The main objectives involving bank loans to create working capital are considered:

• implementation of the process of crediting seasonal stocks of materials, raw materials and costs associated with seasonal production;
• compensation for the shortage of personal working capital of the enterprise;
• carrying out calculations and payment turnovers.

Attracted sources are liquid valuable documentation, the capabilities of higher-level companies, deductions from the company's budget. It is necessary to note other sources of working capital creation, to which the funds of the enterprise are related, which are temporarily not used for their intended purpose. An accurate match between personal, borrowed and borrowed working capital sources is essential to improving a company's financial health. In addition, in the turnover of the organization there are always funds that are equal in value to their own - stable liabilities.

1. Stable liabilities

Sustainable liabilities are funds that are not owned by the organization, but are always present in its circulation. They are the sources of the creation of working capital in the amount of their smallest balance. These finances do not relate to the company and the enterprise, but since they (liabilities) are always available, they are often equated with their own means of production.

These include:

• the smallest debt on salary payments to employees of the organization, which passes from month to month;
• available stocks to cover future expenses;
• the least debt to the budget and other funds;
• monetary funds of creditors, which are received by the enterprise in the form of an advance payment for goods;
• Buyers' finances for pledges for returnable packaging;
• debts of the enterprise for tax payments, etc.

1. The main source of creating the working capital of the enterprise are and customers' funds to pay for partially finished products.

The sources of working capital are indistinguishable at the time of capital circulation. In the process of creating products, the data on the funds with which the material used in the course of work was purchased does not appear in any way. But the method of creating working capital significantly affects the rate of turnover, increasing or, conversely, slowing down the rate. In addition, the nature of the sources of creation and the methodology different ways the use of personal and borrowed funds are the main points that affect the efficiency of the implementation of working capital and all available capital of the enterprise. A clear use of these funds has an impact on the production process, on the material results and financial position of the enterprise, allowing you to achieve positive results with minimal involvement of working capital.

What determines the amount of working capital

The value of the net working capital consists of raw materials and stocks of materials that the enterprise has in the form of work in progress, quickly failing and inexpensive items, as well as debts and manufactured products. The total cost of the above listed components fixes the level of funds that are needed to cover them.

It is important to know that the level of the working capital of the enterprise depends on the amount of expenses that are spent on the purchase of materials, raw materials and overhead waste in the release of quickly sold goods. Also, the level of working capital depends on the duration of the time period of the cycle of the working process of production and sale of finished goods, the cost of overhead indirect costs of the enterprise, the volume of the loan received and the period for its payment.

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How and why to calculate working capital

The calculation of working capital is carried out according to the balance sheet data. One of the existing formulas, which is used to calculate own working capital - COK:

SOK = TA‒THEN, where

TA and TO are current assets and current liabilities, respectively.

In order to calculate the working capital according to the formula, you need the indicators of the second and fifth chapters of the balance sheet.

The second chapter "Current assets" of the balance sheet contains six main lines, in which the most liquid assets are spelled out - the property of the enterprise quickly realizable in financial equivalent. From the standpoint of availability, the most effective in the structure of the company's working capital are financial resources: they can be sold at any time by paying for the resources required for the operation of the enterprise. You just need to draw up an order for the required payment and send it to the bank or pay the suppliers in banknotes directly from the cash desk.

Together with cash, financial equivalents take part in the calculation of working capital, which include assets that can be easily converted into cash. An example of such financial equivalents is short-term demand deposits with banks (for a period of up to three months). At the moment when the enterprise will have no funds, then such an asset can be quickly converted into money that is needed to maintain a continuous technological process at the enterprise.

The structure of current assets, which are involved in calculating the working capital, includes the indicators of the company's balance sheet, in the form of inventories in warehouses and debtors' debt. These are much less liquid assets, and in order to turn them into cash, special actions are needed. But all the same, all existing assets, which include VAT and other types of working capital, form the total value of TA (current assets), which takes part in calculating the working capital of the enterprise.

In the structure of TO (current liabilities), which are deducted from the value of TA when calculating working capital, we will talk about the next section.

Working capital indicator and working capital of the enterprise depends on the amount of short-term maintenance. The higher the amount of debt by this moment, the lower the level of working capital, provided that it does not undergo any changes.

THAT in the balance sheet is spelled out in the fifth section "Short-term liabilities", which contains five lines. From the point of view of the speed of repayment, the most important are credit loans: such debts should be repaid constantly, and in case of a delay in payment, there may be rather big additional expenses in the form of penalties from the bank.

The unpaid accounts payable on time will also bring negative consequences. For example, the existence of unpaid in due time wages employees will entail large cash costs, since compensation will have to be paid. Its value is calculated on the basis of one three hundredth of the refinancing rate for each day of delay, if other amounts of payment are not spelled out in the collective agreement of the enterprise. These funds will have to be obtained from the turnover of the enterprise, and the funds may not be enough to ensure uninterrupted production of products.

If the company has unpaid tax fees, this will also lead to additional financial costs for the payment of penalties.

The larger the amount required to eliminate urgent obligations, the more difficult it will be to maintain the current activities of the enterprise, and, of course, the level of working capital will significantly decrease.

RNS can be calculated using a different formula. In this case, the indicators from the first, third and fourth sections of the balance sheet should be involved.

To calculate the amount of own working capital, you need to add the organization's equity, reflected in section 3 of the balance sheet, with the sum of the company's long-term liabilities from section 4 of the balance sheet, and subtract the company's non-current assets from section 1 of the balance sheet. We briefly reflect this calculation in formula:

SOK = SK + DO‒VNA, where:

CK is the organization's own capital;

DO - long-term liabilities of the company;

ВHA - non-current assets of the company.

For example. Entrepreneur Alekseev opened LLC Alekseevskoe. According to corporate law, the size of the authorized capital of an organization with this form of ownership must exceed ten thousand rubles. The businessman opened a current account, transferred there an amount of ten thousand rubles. But it is obvious that this will not be enough for him to carry out his current activities: the purchase of raw materials and Supplies, rental of premises, etc. If the size of the authorized capital was much higher, he would not have faced such a difficulty.

When determining the amount of own working capital, the calculation takes into account the amount of additional and reserve capital, the amount of retained earnings (uncovered loss) and the amount of revaluation of non-working assets.

Also, when determining the amount of own working capital, the amount of the company's long-term borrowed funds (long-term working capital), the estimated liabilities of the organization and other liabilities of the company from section 4 of the balance sheet are taken into account.

After adding up the equity capital of the organization and its long-term liabilities, you need to subtract the amount of the organization's funds from the first section of the balance sheet (these are non-current assets). The result of the calculation will be the calculation of the amount of the company's own current assets.

Below, using an example of a real situation, a mechanism for calculating the amount of an organization's own current assets will be described by using the two formulas presented earlier. Determination of the amount of own working capital helps the head of the organization and top management to assess the amount of capital invested in working capital. The equity working capital value can be greater than zero, less than zero, or equal to zero.

In a situation where the value of its own working capital is less than zero, the firm cannot fulfill its obligations in the short term. In such a situation, there is already a risk of bankruptcy of the enterprise. This state of affairs may be due to the following factors:

• insufficiently competent management of the organization's capital;
• an increase in the number of construction in progress or a significant increase in the design cost of such construction;
• an increase in the amount of DZ;
• the inefficiency of the organization as a whole and the growth of uncovered losses;
• other.

The huge share of own working capital also has negative consequences for the organization. In the case when the value of the ROC is much greater than the value that is really needed at the moment for the current activities of the organization, the question of illiteracy in the management and redistribution of the company's resources can be raised. For example, an unreasonable redistribution of the company's income or an overestimated number of loan obligations to various banks.

If SOC = 0, then, most likely, the company was recently born, or its working capital at this stage of development in full size financed from loans.

To achieve performance efficiency, the head of the organization and the CFO need to analyze the amount of their own working capital. It is also necessary to strive to reduce the amount of invested working capital and stocks in the warehouse, to increase the efficiency of the collection system for remote control.

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Phased working capital management

Stage 1. Drawing up a plan and timely control of the results obtained, making management decisions

Drawing up a plan for current assets implies:

1. Formulation and approval of the company's current asset management policy.

The formulation of decisions on the maintenance of the current asset management policy is carried out jointly with all existing heads of departments of the organization - the general director, commercial director, production director, etc. Such a resolution is signed by the general director. Depending on what policy is planned for each type of current asset, the volumes and time periods of goods that are sold in installments will change, as well as the volumes of the minimum stock of goods, etc.

The management of the company's current assets is based on 3 main approaches:

• moderate;
• conservative;
• aggressive.

Based on the results of the creation of a policy in the field of management of the organization's working capital, an acceptable time frame for the provision of a commercial loan, norms for commercial loans, basic rules for working with employees and suppliers of the organization must be established. After the basic rules for the formation of working capital have been drawn up, it is necessary to find out to what extent the enterprise needs them.

1. Carrying out calculations for the needs of the organization in circulating assets.

As a rule, the organization's calculations for the needs for current assets are carried out in the form of a percentage of the company's sales. For each type of asset, the level of interest is fixed according to the average statistical data for previous periods. Using this principle of calculation, one can hope to achieve sufficiently high results, provided that the sales market develops fairly stable, without any major changes in the work processes with suppliers and the provision of loans to their customers. In the event that an organization wants to make changes to the working conditions with counterparties, the calculation of the needs of current assets should be carried out as a period of turnover, which must be multiplied with the daily need for the desired form assets.

In order to assess the company's needs for current assets using the above method, the following should be done Steps:

• It is necessary to formulate the firm's budget, on the basis of which the daily need for production in raw materials and materials should be determined.
• Based on the existing norms of the enterprise for the provision of loans for buyers, the process of evaluating the finances is carried out, for which the shipment of products is carried out every day with the provision of installments.
• The time frame for the turnover of loans granted to debtors is approved, equal to the period of deferred payment, which is fixed in the agreement between the organizations.

Based on the results of planning working capital, the form and volume of working assets are identified in the context of loans to debtors, funds and existing stocks.

Stage 2. Implementation of the process of control over the execution of the set plans

To create a fruitful control scheme, there are a number of steps that need to be taken action:

• calculate the necessary indicators for control;
• appoint responsible specialists who will monitor the implementation of the required indicators;
• to create a methodology by which the staff will be motivated.

At the same time, it is important not to forget that the above actions must be taken in relation to each category of current assets. As practice shows, in the role of control indicators are such norms that reflect the limit and turnover.

Distribution of responsibility for the implementation of standards according to the scheme:

1. The department that deals with the supply of the enterprise is appointed responsible for the time periods of the turnover of existing stocks, prepayments and arrears from the suppliers of the enterprise.
2. The production department is appointed responsible for the time period for which the finished product is released.
3. The department, which is responsible for the sale of products, is appointed responsible for the period of the turnover of the goods produced, prepayment and debts owed.
4. You also need to formulate a plan for motivating the personnel of the enterprise, which is needed for the speedy implementation of the tasks.

1. stage. Making decisions on the management of current assets

To implement the approved norms and regulations for the management of working capital, it is necessary to formulate a number of documents, which will be approved by the order of the general director of the organization. This package of documents comprises:

• regulations for the management of available stocks;
• regulations on the management of debtor loans;
• a number of additions to the provision on material bonuses.

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How is working capital financing carried out?

Investment in working capital in the company is carried out through one of the several strategies:

• A cautious strategy is a development path in which most of the company's assets fall on material assets, stocks of raw materials and finished products, and easily marketable securities of the enterprise.
• A restrictive strategy is a development path in which part of the company's financial resources, valuable documents and debtors' loans are reduced to zero in the assets of the enterprise. The negative side of such a strategy is that it provokes the creation of conditions for the emergence of a large proportion of creditor loans, which go to cover a variable proportion of working capital.
• A moderate strategy is a development path that takes an intermediate place between the two previous strategies. With such a strategy, the company in some situations may have excessive current assets, but this is perceived as a price to pay for strengthening the company's liquidity at a high level.

The implementation of any of the three development paths is determined by the level of certainty / uncertainty of the processes for the supply and sale of products at the enterprise:

If the process of supplying and marketing a product is well planned, that is, it is known in advance about the volumes of supplies, the timing of the sale of the product, the timing of payments, etc., then you can go along the path of a restrictive strategy. The implementation of any other strategy in this situation may lead to the need to replenish current assets from external sources.

In a situation where the size of shipments, the timing of product sales, etc., are not determined, the company should opt for a cautious strategy. It is also possible to implement a restrictive strategy, but for this it is imperative to create a sufficient stock of working capital.

Three methods sponsoring a fixed and variable share of working capital:

1. Fixing the time frame during which the asset and liabilities will exist by department.

• The turnover of commodity and financial assets of the enterprise, which is expected to be sold in less than one month (30 days), can be credited with a bank short-term loan for 30 days.
• The purchase of equipment, which is planned to be used in production for a five-year period, can be financed through a five-year medium-term loan, and you can also use the leasing system.
• Construction of your own warehouse or purchase of land with already erected industrial and warehouse premises, financing with a twenty-year long-term loan is possible, and you can also use mortgage lending.

The use of this funding mechanism is hampered by two factors: low level of predictability; Ordinary shares without a liquidation date may act as a source of financing for OC.

1. The entire amount of fixed assets and some of the fixed working capital are subsidized by loans with a high credit depth, and the remainder of the fixed working capital is subsidized by short-term loans (bills of exchange to pay off debt).
2. The injection of funds into the constant component of working capital and part of the variable component occurs through loans with great depth and short-term credit, if necessary, the remaining part of the variable working capital is financed through short-term loans.

Loans to replenish working capital are issued by commercial banks of the Russian Federation for a period of 1 month to 1 year. The limitation on the amount of lending, as a rule, is fixed on the basis of the net volume - the turnover of funds in the settlement accounts of the enterprise that wants to issue a loan, and usually does not go beyond two-thirds of the turnover per month. When calculating the possible ceiling of the loan, additional costs can also be taken into account. receipts of money, which the borrower is obliged to support with supporting documentation. The structure of the working capital of the company, economic activity and material resources of the enterprise that draws up a loan is studied. The amount of interest is determined by the repayment period and the amount specified in the loan agreement.

As loan collateral, which can be provided by a company that issues a loan or another person, the bank examines:

• stocks of products, materials, finished goods in industrial storage facilities;
• products in production;
• technical equipment and vehicle fleet;
• all real estate of the enterprise;
• documentation and existing loan commitments.

The value of the pledged property, as a rule, is set at a level not higher than seventy percent of the average market value. At certain points (for example, in relation to buildings and structures, technical equipment of the enterprise) to determine market price it is worth contacting an independent expert appraiser. All property that is secured against a loan is insured in one of the firms that cooperates with this bank (you can choose one from several insurance companies).

Additional security(additional guarantees): surety individuals or other companies and enterprises with a stable financial position.

All of the above factors are taken into account both in combination and in the context of the influence of each of them on the issuance of a loan.

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How to evaluate the effectiveness of working capital

The main norms for the process of evaluating effectiveness are "Return on assets" and "net" working capital. In terms of the shape and size of its own working capital, it is difficult to assess the effectiveness of management. For such an assessment, it is necessary to study the structure of the working capital of the enterprise, the sources of its financing and the specifics of its functioning in a particular firm.

To do this, determine the size of the net working capital. The amount of net profit is determined as the difference between the working capital of the enterprise and short-term liabilities.

In the process of managing working capital for the director of the enterprise, the main place in his work is the desire to achieve the amount of net working capital equal to zero.

In the event that the working capital is above zero, then when sponsoring it, it is necessary to use the personal financial resources of the organization, which are much more expensive than the funds raised.

The ideal option is when the volume of net working capital is fixed at “0” - working capital is fully financed from short-term attracted finance.

1. In Western practice, they often use profitability indicator working capital.

With the help of this indicator, it is possible to give a more complete assessment of the effectiveness of financial management.

Return on current assets (in%) = Return on sales (in%)× Turnover of current assets = Operating profit/ Average price of current assets

Based on this value, the level of efficiency of working capital is determined, and a number of consequences are identified, due to which there are differences between the intended targets and the actual results. When the level of net working capital is minus or when the profitability of working capital does not meet the planned values, when assessing the efficiency of working capital, adjustments to the financial policy are recorded.

1. Turnover working capital is an indicator that characterizes the efficiency of the use of working capital.

The working capital turnover characterizes the rate of movement of the working period - the time during which the full turnover of these financial assets is carried out. When assessing the turnover of active funds, the following are used:

Turnover ratio(one of the indicators and ratios of working capital, which can be used to judge the effectiveness of the organization) - show the number of revolutions required for payback (repayment) of the enterprise's capital. Computing uses by the formula:

Cob = Bp / Oss, where:

Вр - the amount of profit from the sale of products, from which VAT and other additional charges are deducted. taxes;

Oss - the average level of the cost of working capital for the period of the studied time.

Duration of turnover in days (Dlo) - the period of time during which the working capital is converted into cash. The following is used for the calculation. formula:

Dlo = Oss× D / Vr, where:

D - the number of days for the investigated period of time. Compared to the previous indicator, this one is independent of the duration of the studied time.

Fastening ratio working capital (Kzo) - the level of working capital per one ruble of profit from the sale. The calculation applies formula:

Kzo = Oss / Vr

This indicator characterizes the value of the average balance of working capital, which accounts for one ruble of profit from the sale. In order to be confident in the accuracy of the calculations, it is necessary to carry out calculations of the private turnover indicators, taking into account the turnovers for specific areas of stocks, individual levels or for each component of the working capital.

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How to optimize working capital

Any company has a certain amount of inventory, even in those conditions when the organization is just starting its activities and it may seem that its workflow is thought out to the smallest detail. There will be constant losses that can be avoided.

1. Stocks.

The volume of stocks in the warehouse in most organizations is considered to be the norms, which are expressed in rubles. At the same time, not every manager is aware of what kind of products are stored in the warehouse. First of all, you should calculate all purchased products that are in the warehouse, first counting the nomenclature, and then translating it into a monetary equivalent. The reasons for this action can be different - for example, an uneven delivery plan for products or frequent shipments in small batches, while it is more profitable to deliver products less often, but in large quantities. Make a logical conclusion from this: enter into a dialogue with the supplier, discuss with him a more convenient delivery schedule for the goods.

In the event that your organization has already carried out similar actions a couple of years ago, it should be done again, since the product market is undergoing frequent changes. Some suppliers left the market, others opened up - the economically unstable situation brought great innovations to the list of suppliers and buyers, and also influenced the formation of prices. If you are a large buyer, then you have the right to ask suppliers to open their warehouses in close proximity to your company - this will help you free your company's warehouse from reloading, you will gain the opportunity to store products there only for the next few hours. It is also logical that the seller will agree to your offer only if it is profitable for him too, give him a guarantee that you will buy a certain volume of products constantly or conclude an agreement with him on a single fixed price.

1. Warehouse.

Reduce the area of ​​storage of stock - this will help you to reduce the volume of traffic, the number of vehicles in the enterprise and the number of workers who work in warehouses. To do this, it is necessary to eliminate pantries directly in the shops, arranging the issuance of products directly from supply warehouses. Also ask how your storekeepers work. Often they work around the clock, while the workshop releases goods or accepts new raw materials only at certain hours.

1. Transport.

Think about what is more profitable: to buy and maintain your own vehicles for the company, or to rent cars. Also, think about which type of road transport suits you best: it may turn out that you send your goods by train, while it is cheaper to transport it by car. In some situations, the ideal option is to use one transport in winter, and completely different in summer. If your company has its own cars - take up the issue of VAT compensation for the purchase of fuel. This is also one of the systems for returning money to company accounts.

1. Sales.

All the principles that are used to optimize the supply chain process should be applied to sales. Make a plan for the supply of products for buyers, which will be the most convenient for them, calculate the volumes of products that need to be kept in the warehouse in order to provide buyers with uninterrupted supplies of goods, and find out what type of transport will be carried out. It is possible that you will reduce your inventory to zero and carry out a workflow without using a warehouse. Even the most elementary correct actions can save about 15% of the cost of purchased raw materials.

Inventories that relate to work in progress should also be rationed. By calculating the value chain for each product you produce, the opportunities that you can use to carry out the optimization process immediately emerge. In addition, the results of the study will tell you whether your company needs such stocks, and if so, what should be their volume, as well as where to equip a warehouse for their storage, and how these stocks will be replenished in the future.

1. Document flow.

Make a list of the papers that are filled out in each of the areas of your production. You will be surprised to find out that more than a third of all documents are simply not needed or are not needed in the form in which they are formed now. Here's one example. An electronic accounting system has been introduced in the warehouse, each card for a specific product is generated in a computer base. But at the same time, storekeepers also draw up cards in paper form, and also report by filling out the journal of receipt and issuance of raw materials. Why is this needed? Indeed, for the correct bookkeeping, only an electronic card is needed. And the reason lies in the habit "and so they have always done." As a result, we overlap two types of document management: the old one was not eliminated and the new one was introduced. In other cases, it happens that identical documents are filled out in several departments at once. As a result, it is necessary to reduce the workflow, which will help to release employees from unnecessary duties in order to perform really necessary actions, as well as to regulate the number of employees.

1. Manufacturing standards.

Calculate the norms of the principal and additional materials that are spent on the production of your products. In some cases, it becomes funny from what reference books technologists and designers are guided by. For example, the mass of one meter of material and its density are prescribed in GOSTs, but in some cases, a guide on material consumption is used to calculate them, in which all indicators are increased by 15-20%. This leads to the fact that production bears large losses, and employees have the opportunity to steal materials and cover defective products. You should also keep the rates of electricity consumption under control. These simple steps will guarantee you up to 25% budget savings in the production of goods.

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Expert opinion

Optimization of working capital according to the classical algorithm

Andrey Skorochkin,

Manager of the Business Efficiency Group of KPMG in Russia and the CIS, Moscow

Today this issue is highly relevant. At a time when our country was experiencing strong economic growth, every organization sought to get the largest share of the market's sales while promoting a new product. But the increase in the productivity of the enterprise due to internal reserves was paid minimal amount time. Meanwhile, the working capital, which has been accumulated over the years of rapid growth, today can play the role of one of the most important sources that provide financial sponsorship of all operations of the enterprise. Improving working capital can help to extract from 15 to 30% of the financial resources of its original volume. Another 10 to 15% of finances will be able to ensure the centralization of cash management of the enterprise. In order to successfully resolve this issue, it is necessary to settle three main points:

• How much money frozen in the cycle of operations can be extracted without lowering the level of productivity and without reducing the volume of all activities of the enterprise?
• What should be the optimal indicators of turnover of stocks, accounts payable and receivable, and in what ways can they be achieved?
• To what extent does the enterprise really need financial resources and with the help of what management operations it is possible to achieve the level of their reduction?

In other words, it is necessary to find out what to do (to establish the nature of the necessary innovations) and in what ways to achieve it (to choose a method that will allow the decisions to be fruitfully implemented).

A typical algorithm for improving working capital and increasing the level of liquidity involves the following actions:

• improving positions on accounts payable and receivable: first - avoid moments that lead to late payments on debts; second - compare your loan conditions with those that exist on the market, try to improve your conditions whenever possible by talking with counterparties; third - all operations should be performed automatically to the maximum; engage in short-term planning of all financial resources in individual departments and for the organization as a whole;
• fixing a certain rate and reducing stocks, launching such a mechanism that can maintain the company's stocks at an optimal level;
• the introduction of effective principles for managing working capital and monitoring its position to maintain the optimal level of funds that are involved in production operations;
• Despite the fact that drawing up such an algorithm is a laborious process, almost all the difficulties, based on the practice of companies, are not associated with writing such plans, but with their implementation. After all, the task is not to achieve a momentary result, carrying out operations with working capital, but also to achieve a long-term, fruitful result - and for this it is necessary to establish all production operations and clearly distribute job duties and responsibility for their implementation between the employees of the company.

Working capital ( English Working Capital) is a financial concept that describes the difference between current assets and current liabilities of an enterprise. If current liabilities exceed current assets, the company has a working capital deficit. This means that it cannot pay off its current liabilities using only its current assets. Thus, a normally functioning enterprise should have a surplus.

The structure of working capital in the balance sheet of the enterprise

The diagram below shows the decomposition of the structure of the company's working capital, namely the main elements of current assets and current liabilities.

All the elements presented in the figure above are reflected in the balance sheet of the enterprise.

Calculation formula

Working Capital = Current Assets - Current Liabilities

Purpose and objectives of working capital management

The goal of working capital management is to ensure business continuity while reducing the operating cycle. This allows you to achieve an increase in free cash flow ( English Free Cash Flow, FCF) and, consequently, increase economic value added ( English Economic Value Added, EVA).

To achieve the main goal, the following tasks must be solved.

1. Cash management... The key point is the determination of such a balance of funds, which would allow not only uninterrupted financing of operating activities, but also to reduce the cost of maintaining the balance of funds.
2. Accounts receivable management... It is necessary to develop a credit policy that would be attractive to buyers and would shorten the collection period.
3. Inventory Management... The focus is on determining the order size, order point, and safety stock that will help ensure smooth operations while minimizing inventory investment, storage and ordering costs.
4. Short-term finance management... The challenge for managers is to identify suitable sources to finance seasonal or unanticipated working capital requirements.

Sources of financing for working capital

From the point of view of the choice of the source of financing in the working capital of the enterprise, its constant and variable parts are distinguished. The fixed part is usually financed by long-term debt or equity capital. In turn, its variable part (for example, seasonal or unforeseen need) is usually financed from short-term sources of debt financing.

1. Short-term loan... If the company has a temporary need for additional working capital, a short-term loan (maturity less than 12 months) is a convenient source of financing.
2. Credit line... If the need for additional financing cannot be foreseen in advance, the credit line can satisfy it in a short time.
3. Factoring... The disadvantage of this funding source is its high cost, but it can be used when other sources are not available.
4. Trade receivables... If the company has a solid business reputation, its management may ask suppliers to increase the grace period, for example, from 30 to 40 days. The disadvantage of this funding source is that an increase in trade receivables is not good sign for other creditors.
5. Financing from own funds... Retained earnings are a widely used source of funding for additional working capital requirements. In exceptional cases, owners can provide additional funds by increasing the authorized capital.

Financial cycle

The financial cycle of an enterprise is the period of time that it takes for current assets and liabilities to be converted into cash. In other words, this is the time it takes for one complete turnover of working capital. As a rule, the shorter its duration, the lower the costs associated with servicing the financing.

Formula

The following formula is used to calculate the duration of the financial cycle:

Financial cycle = DSO + DSO - DPO

where DSI is the period of inventory turnover in days ( English Days Sales of Inventory), DSO - the period of collection of receivables in days ( English Days of Sales Outstanding), DPO is the maturity of accounts payable ( English Days of payables outstanding).

In turn, the above indicators are calculated using the following formulas:

Obviously, the duration of the financial cycle can be reduced either by increasing the maturity of accounts payable, or by reducing the period of inventory turnover and the collection period of receivables. However, each of these methods has its own disadvantages.

Reduced inventory levels can lead to production problems and thus lower sales. To shorten the collection period for receivables, the company must introduce a more stringent credit policy, which can also have a negative effect on sales. In turn, an increase in the maturity of accounts payable will lead to its growth in the balance sheet, which will lead to a decrease in liquidity indicators and will be negatively perceived by the company's creditors.

Calculation example

Suppose that the balance sheet of the company looks like this.

thousand cu

In addition, the entity's revenue for 20X8 was $ 45,320,600, cost of sales was $ 27,625,500, and the credit purchase budget was $ 21,250,000. At the same time, the share of sales on credit in the proceeds amounted to 70%.

Let's calculate the amount of working capital at the beginning and end of the year, as well as its average value.

Working capital 20X7 = 8,300,000 - 6,050 = 2,250,000 c.u.

Working capital 20X8 = 9,550,000 - 6,950 = 2,600,000 c.u.

The average balance on the Inventory account is CU 3,525,000, on the Accounts receivable account in CU 2,975,000, and on the Accounts payable account CU3,525,000.

Whereas the sales on credit in 20X8 amounted to CU31,724,420. (45 320 600 × 70%), we will calculate the terms of inventory turnover, collection of accounts receivable and repayment of accounts payable.

Thus, the full period of the company's working capital turnover is 18.1 days (46.6 + 34.2-62.7).