For the mobilization of internal production resources. As a result of the acceleration of turnover, an absolute and relative release of working capital can be achieved.
The absolute release of working capital is ensured when enterprises use a smaller amount of funds than was envisaged by the plan or in comparison with the amount in the previous period.
The relative release of working capital is the result of an increase in the volume of production and maintaining the volume of working capital at the same level. Cost savings,
The release of working capital as a result of the acceleration of their turnover can be absolute and relative. The absolute release of working capital occurs in cases when, when fulfilling the planned production program of enterprises (associations), the actual amount of working capital turns out to be less
There is a concept of relative and absolute release of working capital.
Due to the absolute release of working capital, there is an acceleration of turnover with a constant production output. With a relative release of working capital, there is a change in both working capital and output, but at the same time the growth rate of working capital is much less than the growth rate of output.
The relative release of working capital is the result of an increase in the volume of products sold while maintaining the average amount of working capital at the same level or increasing it at a rate that lags behind the growth rate of production. The savings generated in this case are determined by comparing the actual size of the working capital with the amount of funds that would be required for turnover, provided
As a result of the measures carried out by the enterprise aimed at the better use of working capital, an absolute and relative release of working capital can be achieved. The absolute release of working capital is provided in cases where the company uses a smaller amount of funds in comparison with the plan or with the previous period. This is possible with a decrease in the balances of normalized working capital.
The absolute release (loading) of funds from the turnover should be the sum of the values of the two specified factors. The total amount of the absolute release of working capital, or their loading into circulation, is found according to the data of section II of the balance sheet. The difference in the total value of current assets
The total release of working capital is defined as the sum of their absolute and relative release.
The release of working capital due to the acceleration of their turnover can be absolute and relative. An absolute release takes place if the actual balances of working capital are less than the standard or the balances of the previous period with a decrease or excess in the volume of sales for the period under study (this is a direct reduction in the need for working capital). Relative release occurs in cases when, in the presence of circulating assets within the limits of the need for them, an accelerated growth of production is ensured. Comparison of the coefficients makes it possible to identify trends in changes in these indicators and to determine how rationally and efficiently the working capital of an economic entity is used.
What is the procedure for calculating the released working capital as a result of accelerating their turnover
The release of working capital as a result of the acceleration of their turnover can be absolute and relative. Absolute release is a direct decrease in the need for working capital, which occurs in cases where the planned volume of production is fulfilled with a smaller amount of working capital compared to the planned need.
The relative release of circulating assets occurs in those cases when, in the presence of circulating assets within the planned requirements, the overfulfillment of the production plan is ensured. At the same time, the rate of growth of the volume of production outstrips the rate of growth of the balances of working capital. Data for calculating the relative savings in working capital are given in table. 6.8.
As you can see, at the enterprise, as a result of an increase in the efficiency of the use of working capital, there was a relative release of working capital. The financial result from the acceleration of turnover amounted to 432 thousand rubles.
The size of the release of circulating assets from circulation or attracting them into circulation as a result of changes in the turnover of circulating assets in the reporting period compared to the previous period can be determined as follows
Absolute release of working capital
The absolute release of working capital in 1998, in fact compared to last year 2000 1930 = 70 thousand rubles. compared to 2000 - 1945 = 55 thousand rubles. according to plan.
In conditions of expanded reproduction at industrial enterprises, a relative release of working capital is most often observed in the planned year compared with the reporting year, with an increase in their absolute size.
How to determine the absolute release of working capital
Relative release of working capital
The relative release of working capital as a result of the acceleration of turnover in the planned year will be equal to 400 million rubles. (4000 - 3600).
The relative release of working capital is calculated by the formula
The analysis of the release of working capital due to the acceleration of their turnover is carried out for all working capital and separately for normalized assets.
The release of working capital from circulation through the indicator of their turnover is influenced by such factors as a change in the average balances of working capital and a change in the volume of sales. The influence of changes in the average balances of working capital is determined by the formula
The impact on the release of working capital from the turnover of changes in the volume of sales is calculated by the formula
At machine-building enterprises, in addition to these main indicators, auxiliary ones are used that characterize the effect of the measure on one or another side of the production and financial activities of the enterprise; marriage, etc. Efficiency can also be characterized by the improvement of sanitary and hygienic and working conditions of workers.
If we consider the effect of reducing the execution time of partial processes, which are elements of the system, on the efficiency of the process of manufacturing products, that is, on the system, then it can be argued that such influence, as a rule, is absent. This can be confirmed by the fact that reducing the execution time of partial processes does not lead to an acceleration of the transition
One of the most important indicators of the company's production efficiency is asset turnover. After all, the faster the values go through the full production cycle, the more efficient the functioning of the enterprise. The release of working capital is the financial result of accelerating the turnover of current assets. Consider what are current assets, and also what role is played by the release of working capital.
The valuable property of the organization used in the course of carrying out economic activities can be classified depending on the degree of liquidity, that is, the ability to quickly turn into a monetary equivalent, as well as on how long the period of use of the asset is. If we are talking about non-current assets, then we cannot speak of them as liquid values. This category includes machinery and equipment, capital structures, intangible assets and other property with similar characteristics. The use of such assets exceeds one calendar year and is transferred to the value of manufactured products in parts.
Working capital has diametrically opposite characteristics. This category of values is largely determined by significant liquidity (with the exception of unrealistic receivables and stale inventories).
The working capital is transferred its value to the manufactured products in full. The use of this category of property for the most part does not exceed the duration of one production cycle or one calendar year.
What is the amount of released working capital?
In the case when, in the process of doing business, by rationalizing the use of working capital, a decrease in the need for them is achieved, we can talk about the release of working capital (the formula for the calculation will be presented below).
The importance of the process of releasing assets for the company should not be underestimated, since the actual savings in material costs are one of the basic sources of cost reduction, increased profitability and the level of real profits.
Absolute and relative release of working capital
In essence, in practice, there is a relative and absolute release of working capital.
The absolute release of working capital is a direct reduction in the organization's need for working assets. This type of cost reduction occurs in cases where asset balances are significantly lower than the standard set by the company, or the amount noted in previous periods.
With regard to the relative release of working capital (we will consider the formula below), this indicator examines the relationship between a decrease in the number of working capital of a company and an increase in the amount of marketable output produced by an enterprise. This type of release takes place in cases where the process of accelerating the passage of the cycle by circulating assets is carried out simultaneously with an increase in the number of released marketable products. At the same time, the rate of production growth should significantly outstrip the increase in asset balances.
In order to determine the amount of the released circulating assets, both in absolute and relative versions, it is enough to use mathematical calculation formulas. Let's consider each of them.
The absolute release of working capital - the formula - can be represented as follows:
Release absolute = (Duration of 1 turnover in the base period - Duration of 1 turnover in the reporting period) / Volume of current assets / Period.
In this case, the relative release will be determined using the formula:
Relative release = Volume of current assets in the reference period * Growth rate of manufactured products - Volume of current assets in the reporting period.
Thus, it will not be difficult to determine the release of working capital, both in absolute and relative terms, when using the following formulas for calculation.
The process of absolute release occurs when the real demand for assets is significantly lower than the planned one. At the same time, it will be necessary to compare the real demand for assets, relevant for the previous period, and their planned demand, provided that the production volumes either remain at the current level or increase.
The relative release is manifested in the form of a decrease in the real value of the company's assets in the period under review in comparison with the results achieved earlier.
Let's consider how the amount of released working capital is determined using a practical example.
In the current year, the real V output was reached - 1200 thousand rubles, while the volume of all current assets amounted to 1500 thousand rubles, the planned V production for the next year - 2000 thousand rubles. provided that the asset turnover will be increased by 5 days.
- Let's define the turnover:
O = 1500 / (1200/360) = 45 days;
- Amount of working capital:
OS = 20,000 * 45/360 = 2,500 thousand rubles;
- The amount of working capital next year:
OS = 2000 * (45 - 5) / 360 = 2220 tr.
- Relative asset release:
ОВ = 2500 - 2220 = 280 tr.
Calculation of the relative and absolute release of current assets using the above formulas allows organizations to accelerate the turnover of existing assets and identify hidden reserves, which, in turn, will ensure the emergence of free cash resources that the company can use to develop its business without involving third parties. sources of funding for activities.
absolute release relative release
circulating assets of circulating assets
| It occurs when the actual demand is less than the planned one. In this case, the actual amount of the average balances of the normalized working capital for the previous period is compared with the planned demand for this period while maintaining or increasing the volume | It is characterized by a decrease in their actual cost in a given period in comparison with the achieved turnover for the planned period or, in fact, for previous years. Occurs in cases where the turnover of working capital accelerates with an increase in the volume of production at the enterprise |
| - the absolute release of working capital is the difference between the planned demand for a given period and the actual amount of average balances of normalized working capital | - the relative release of working capital is the difference between the planned and estimated need for standardized working capital |
Rice. 3. Release of working capital
Example. The actual volume of commercial products at cost in the current year is 2500 thousand rubles, the actual amount of all working capital at the end of the current year is 2800 thousand rubles, the volume of commercial products for the coming year is 3600 thousand rubles. with an expected acceleration of the turnover of working capital by 4 days.
Under these conditions, the turnover of current assets in the current year will be:
O = 2800 / (2500/360) = 40 days
The amount of working capital, based on the volume of marketable products in the planned year and turnover in the current year, will be set at 4000 thousand rubles.
[(36000 x 40) / 360]
The amount of working capital, based on the volume of marketable products, in the coming year, taking into account the acceleration of their turnover, will amount to 3600 thousand rubles.
The relative release of working capital as a result of the acceleration of turnover in the coming year will be equal to 400 thousand rubles.
QUESTIONS AND TASKS FOR KNOWLEDGE SELF-CONTROL
1. What is meant by the working capital of the enterprise?
2. What are the signs of the classification of working capital.
3. What is meant by revolving funds and what is their composition?
4. What are circulation funds and what is their composition?
5. What factors affect the structure of working capital?
6. What are the stages that form the circulation of working capital?
7. What is the essence of the rationing of working capital?
8. What are the components of the working capital standard?
9. How is the efficiency of using working capital estimated?
10. Name the measures to improve the efficiency of the use of working capital.
ADDITIONAL LITERATURE
1. Babuk I.M. Enterprise economics: a textbook for students of the system of advanced training and personnel training / I.M. Babuk, V.I. Demidov, L. Grintsevich, V.T. Pyko. - Minsk: BNTI, 2002 .-- 263 p.
2. The Big Dictionary of Economics / Ed. A.N. Azrimyan. - 4 - ed. add. and revised - M .: Institute of New Economy, 1999.
3. Gruzinov V.I., Gribov V.D. Enterprise Economics: Textbook. manual.-2nd ed., add. - M .: Finance and Statistics, 2001.
4. Zaitsev N.L. Organization economics. - M .: "Exam", 2000.
5. Kozik P. Management of working capital of the enterprise // NEG, №38, 2002. p.21.
6. Leshko V. Working capital management // Economy. Finance. Control. -No.12.-2000.-p.30-32.
7. Directory of the enterprise financier. - 2nd ed., Add. and revised - M .: INFRA-M, 2000.
8. Economy of the enterprise and industries: Uch. Benefit / Under. ed. A.S. Pelikh. 4th ed add. and revised - Rostov-on-Don: Phoenix, 2001.
9. The economy of the enterprise. Workshop: Textbook / A.N. Senko, E.V. Crum. - Mn .: Vysh. shk., 2002.
10. Enterprise Economics: Textbook / Under. Ed. prof. OI Volkova - 2nd ed. revised and add. - M .: INFRA-M, 1999.
Great value in enterprise use has their turnover. The turnover of working capital is understood as their real movement in the process of reproduction. Acceleration turnover important for the economic activity of each enterprise.
For a certain period (O) is determined in days as the ratio of the average balance of working capital (CO) to the one-day sales turnover (OR):
O = CO / (OP / 360) or (CO * 360) / OP
Turnover is determined on the basis of all working capital of the enterprise as a whole and separately -. The actual sales turnover is calculated in; the average annual balance - according to the balance sheets as the chronological average of the monthly balances.
Acceleration or deceleration turnover is determined by comparing the turnover for the reporting year with the previous year, and for the normalized working capital - with the planned turnover indicators. When calculating the turnover for individual elements of standardized working capital, their average balances must be divided by one-day sales of products.
Acceleration effect turnover of working capital is expressed in the release, reducing the need for them in connection with the improvement of their use. Distinguish absolute and relative release of working capital.
Absolute release reflects a direct decrease in the need for working capital.
For example, if the average working capital in 2010 was 10 million rubles, and in 2011 - 9.5 million rubles, then the absolute release was 0.5 million rubles. This, however, does not take into account the change in the volume of products sold.
Relative release reflects both a change in the amount of working capital and a change in the volume of products sold. To determine it, you need to calculate the need for working capital for the reporting period (year), based on the actual sales turnover for this period and the turnover in days for the previous period (year). The difference will give the amount of the release of working capital.
For example, there is the following data for the enterprise for 2010 - 2011. (in thousand rubles):
The turnover in days for 2010 will be:
10000 * 360/360000 = 10 (days)
The need for working capital in 2011 with a turnover of 2010 and the volume of products sold in 2010 will be equal to:
400,000 * 10/360 = 11,111 (thousand rubles).
Taking into account that the average balance of working capital in 2011 amounted to 9500 thousand rubles, the relative release is equal to 1611 thousand rubles. (11 111 - 9500).
The indicators of the efficiency of using working capital are determined by calculating the turnover ratio, the average duration of one turnover and the amount of released working capital as a result of accelerating their turnover.
To analyze the use of working capital, assess the financial condition of the enterprise and develop 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). The more the number of revolutions, the less the need for working capital.
Working capital turnover ratio (turnover rate) calculated:
where RP - volume of products sold per year, rubles
The introduction of the achievements of scientific and technological progress and a clear organization of material and technical supply and sales have a great influence on the acceleration of turnover. Average duration of one revolution is determined by:
,
where T lane - time of the planned period, days.
The inverse value of the rate of turnover, shows the size of the circulating assets advanced by 1 ruble. proceeds from the sale of products. This ratio characterizes the degree of utilization of funds in circulation and is called working capital load factor:
.
The lower the value of the working capital load factor, the more efficiently the working capital is used.
The amount of the release of working capital as a result of the acceleration of their turnover is determined by:
,
where T cd- duration of the planning period, calendar days;
Scheduled or base time of one turnover, days;
Actual (reported) turnaround time, days;
Acceleration of turnover of one turnover, days.
The release of working capital can be absolute and relative. Absolute release arises when the actual demand is less than the planned one, that is, it is the difference between the planned demand for a given period and the actual sum of the average balances of the normalized working capital. Relative release - this is the difference between the planned and estimated need for working capital.
Absolute release of working capital can also be calculated through the turnover ratio according to the formula:
.
Relative release of working capital calculated by the formula.
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