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Theoretical foundations of managing current assets of an enterprise, their concept. Indicators of efficiency of asset use, methods of their analysis. Analysis of the formation and use of working capital of the enterprise, proposals for increasing their efficiency.

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Introduction
Chapter 1. Theoretical foundations management of current assets of the enterprise

1.1 Concept and essence of current assets
1.2 Indicators of efficiency in the use of current assets of the enterprise
1.3 Methodology for analyzing the working capital of an enterprise

Chapter 2. Analysis of the formation and use of working capital of Tair LLC
2.1. Brief organizational and economic object of study

2.2 Analysis of the formation and use of current assets of Tair LLC

Chapter 3. Assessing the efficiency of using working capital at Tair LLC

3.1 Calculation of efficiency indicators for the use of current assets of Tair LLC
3.2 Proposals to improve the efficiency of working capital management of Tair LLC

Conclusion
References

Introduction

Relevance of the work. An important part of an enterprise's property is its working capital. To ensure an uninterrupted production process, along with fixed production assets, labor and material resources are needed. Objects of labor, together with the means of labor, participate in the creation of the product of labor, its use value. The presence of sufficient working capital of an optimal structure at the enterprise is a necessary prerequisite for its normal functioning in a market economy. Therefore, the enterprise must carry out rationing of working capital, whose task is to create conditions that ensure the uninterrupted production and economic activities of the company.

Currently, issues of managing working capital of organizations are of particular importance. Being an independent economic category, working capital has an effective impact on the process of production and sales of products. They play a decisive role in organizing the activities of the enterprise, in ensuring its financial stability and solvency, profit and profitability. The efficiency of working capital largely determines the efficiency of the organization. The complexity and variety of tasks associated with the use of working capital, increasing their turnover and impact, necessitate in-depth research in this area.

The purpose of this course work is to analyze the efficiency of using the organization's working capital.

The goal involves solving the following tasks:

Study the theoretical foundations of the analysis of an enterprise's working capital;

Conduct an analysis of the formation and use of current assets of Tair LLC;

Assess the effectiveness of management of current assets of Tair LLC.

The object of the study is Tair LLC.

The subject of the study is indicators of the efficiency of using working capital of a wholesale trade enterprise.

The methodological basis for writing a course work is the use of a combination of various methods in the process of conducting research: the method of analysis and synthesis, grouping and comparison, economic-statistical, economic-mathematical, expert, normative and other methods. The use of each of these methods is determined by the nature of the problems solved in the research process.

The course work consists of an introduction, 3 chapters, a conclusion, and a bibliography.

The practical significance of the work lies in the fact that measures to improve the efficiency of using working capital, developed as part of the analysis, can be used in the practical activities of the enterprise under study in order to improve the processes of its financial and economic activities.

Chapter1. Theoretical foundations of managing current assets of an enterprise

1.1 Concept and essence of current assets

In economic science, working capital is one of the most important and at the same time complex economic categories. Working capital is an integral part of current assets, so the study of current assets must begin by considering the category of working capital. Over the course of a long time, various interpretations of this concept have been put forward. There are three definitions of working capital

As the cost of inventory items;

How is the value of working capital and circulation funds;

As an advance cost, functioning in the form of circulating production assets and circulation funds.

At its core, working capital, based on their participation in the circulation, is not consumed, spent, or expended, but is advanced (in a targeted manner). Therefore, working capital is a part of an organization’s funds that is entirely consumed during the cycle and is included in current assets. Currently, the cost interpretation of the essence of working capital prevails. In other words, they have practically abandoned the understanding of working capital as a set of material and monetary values; working capital received the status of only the value category.

All sources from which working capital is formed can be considered as a kind of fund, which can be called a working capital fund.

Working production assets ensure the continuity of the production process, and circulation funds ensure the sale of production products on the market and the receipt of funds that guarantee the well-being of the enterprise. This economic role (purpose) of working capital determines their essence, which ensures the uninterrupted functioning of the production process and the circulation process.

Thus, working capital is considered only as the amount of money advanced to working capital and circulation funds, ensuring a systematic and continuous process of production and sales of products. At the same time, working capital includes inventories, work in progress and semi-finished products own production, deferred expenses, and circulation funds include finished products and cash.

Objects of labor are entirely consumed in the labor process, so their constant or periodic renewal is necessary, which, in turn, determines the availability of reserves.

Inventories are an economic category; they are created along the entire path of promotion of inventory items - from the place of their production (manufacturing, extraction) at manufacturing enterprises to the places of direct use of material resources at consumer enterprises or supply bases. The total stock of almost any brand of inventory (raw materials, materials, components, purchased semi-finished products, fuel, spare parts, low-value and wearable items, finished products, etc.) is placed in different places as they move to direct consumers.

One of the components of inventories is inventories. The need to create inventories is determined by the essence of the production process. Raw materials, materials, fuel necessary for the manufacture of products must be supplied continuously, and this can only be achieved if optimal reserves are created.

Finished goods inventories include the cost of products that are completed in production and ready for sale, where they are completed, packaged, and then shipped to the consumer.

Current assets are a term used in accounting, and Accounting Regulation 4/99 “Accounting statements of an organization” is defined as the name of the second section of the asset balance sheet, that is, current (mobile) assets include those assets that are reflected in the balance sheet its second section. current asset management

In the balance sheet, current assets include:

1) inventories, which include:

Material assets used in one or another type of activity as objects of labor: raw materials and materials, components, spare parts, fuel;

Products of labor: products ready for sale, goods (in warehouses of supply and distribution, trade, purchasing and other trade organizations), semi-finished products of own production;

Products in progress (products that have not gone through the entire technological processing cycle: incomplete products that have not passed testing and technical acceptance, unfinished work);

Instruments that generate income or are used for other purposes for less than 12 months. These include: equipment and household supplies, work clothes and safety shoes, uniforms and other means of labor, which are included in the funds in circulation. The exceptions are agricultural machines and implements, replacement equipment, special tools and special devices, weapons, working and productive livestock;

2) cash, which includes money in the enterprise’s cash desk (cash), in a current account and other bank accounts, including in a foreign currency account (cash, cash). Currency accounting is also carried out in Russian rubles at periodically changing foreign currency exchange rates against the Russian ruble, announced by the Central Bank of the Russian Federation;

3) accounts receivable, which is formed in the form of monetary debts to the enterprise for products and goods sold to buyers and customers (work performed, services provided) on the terms and at the cost stipulated by the business agreement, until they are paid; on bills received; on contributions of founders to the authorized capital; debts of other debtors, including accountable persons for amounts issued for travel or business expenses, etc. In general, accounts receivable represent funds in settlements. Long-term receivables, the repayment of which is doubtful, may turn into bad debt and, as a result, into losses;

4) short-term financial investments - investments of the enterprise in short-term liquid securities(shares, bonds, certificates) purchased to generate income for a period not exceeding one year, as well as providing short-term (up to a year) loans to other business entities.

From the definition of current assets it follows that it is illegal to identify the concepts of current assets and current assets. Current (mobile) assets, especially stocks of raw materials, materials, fuel, etc., are consumed and spent in the production process, and working capital, as the most liquid resources, is “not consumed or consumed”, since they are advanced into production.

If working capital were consumed and spent, then after each cycle of circulation the operating enterprise would have to replenish working capital by at least the entire amount of working capital and circulation funds used in the production and sale of products. In fact, this does not happen; on the contrary, after each cycle of circulation, a profitably operating enterprise receives an increase in the amount of money advanced into circulation.

In addition, it is obvious that the value of working capital cannot be equal to the value current assets. For example, current assets (according to the structure of the balance sheet) include all the organization’s funds, accounts receivable are determined by the sales price, etc.

The effective use of working capital is reflected in the acceleration of their turnover, and, consequently, in the reduction of their value. Working capital turnover refers to the duration of the complete circulation of funds from the moment of acquisition of working capital (purchase of raw materials, materials, etc.) and sale of finished products. The circulation of working capital ends with the receipt of revenue to the enterprise.

1.2 Indicators of efficiency in the use of current assets of the enterprise

The effective use of working capital has an active influence on the progress of production, financial results and the financial condition of the enterprise. The released material and monetary resources are additional internal source further investments contribute to increasing the financial stability of the enterprise and its solvency. Under these conditions, the company fulfills its obligations in a timely manner and in full.

The efficiency of using working capital is characterized by a system of indicators

Own working capital (own working capital) - characterizes that part of current assets that is financed from own funds or long-term liabilities.

SOK = Current assets - Current liabilities (1.1)

where SOK is own working capital;

RNS must be > 0.

Having your own working capital is a necessary condition for ensuring the financial stability of an enterprise. It is recommended to set the minimum value of this indicator at 10% of the total volume of current assets.

The higher this indicator, the more stable the financial condition of the enterprise, the more opportunities it has to pursue an independent financial policy. However, having a ratio that is too high (more than 50% of current assets) is not very good, since the company uses funds ineffectively.

Working capital turnover is the duration of one complete circulation of funds, from the acquisition of inventories to the sale of finished products and the receipt of money in the company's current account.

The faster working capital goes through these phases, the more products an enterprise can produce using the same amount of working capital. Turnover depends on the specifics of production and sales conditions, features in the structure of working capital and other factors.

The turnover rate of working capital is calculated using the following indicators:

Turnover speed (turnover ratio) is the number of revolutions that working capital and its individual elements make during the analyzed period.

The turnover ratio is calculated using the following formula:

Ko = V / Sob (1.2)

where Ko is the turnover ratio of current assets;

B - revenue from sales of products;

Sov - average value of current assets for the analyzed period = (current assets at the beginning of the period + current assets at the end of the period) / 2.

Load factor of current assets is an indicator inverse of the coefficient turnover. It shows how much working capital is per 1 ruble. revenue from product sales. The load factor is calculated using the following formula:

Kzos = 1 / Ko, or Kzos = Sob / B (1.3)

where Kzos is the load factor of current assets;

Ko - turnover ratio of current assets;

Turnover period (the duration of one turnover of working capital) is the average period during which money invested in production and business operations is returned.

The duration of one turnover of working capital is calculated by the formula:

Add = T H Sob / V (1.4)

where Dob is the duration of one turnover of current assets, in days;

T - number of days in the analyzed period (year - 360 days, quarter - 90 days);

Sob - the average value of current assets for the analyzed period;

B - revenue from sales of products.

There are general and private turnover.

General turnover characterizes the intensity of use of working capital in all phases of the circulation, without reflecting the characteristics of the circulation of individual elements or groups of working capital.

Partial turnover reflects the degree of use of working capital in each individual phase of the circulation, in each group, as well as for individual elements of working capital (inventory turnover, accounts receivable turnover, etc.).

The faster working capital circulates, the better and more efficiently they are used. Accelerating turnover leads to the release of part of the working capital (material resources, cash), which can be used by the enterprise for further expansion of production, development of new types of products, improvement of supply and sales and other measures to improve business activities.

The relative release of working capital is the difference between the organization's working capital requirement, calculated on the basis of the planned or actually achieved turnover in the reporting year, and the amount with which the organization ensured the implementation of the production program in the next year.

The relative release of working capital as a result of a change in the duration of one revolution is determined as follows:

Vos = (Dobf - Dobbaz) Ch Vf (1.5)

where Dobf is the turnover period of working capital in the reporting period, in days;

Dobbaz - the period of turnover of working capital in the base (previous) period, in days;

Vf - average daily revenue from product sales in the reporting period.

1.3 Methodology for analyzing the working capital of an enterprise

An analysis of an enterprise's working capital begins with determining the availability of the organization's working capital. The availability of working capital at the disposal of a particular enterprise can be calculated both as of a certain date and on average for the past reporting period.

The availability of working capital as of the reporting date is determined directly from the balance sheet or in more detail - from synthetic and analytical accounting data.

Analysis of the efficiency of use of working capital by an enterprise begins with an analysis of the dynamics of their structure (percentage) based on data from the second section of the balance sheet, which indicates the main functional forms of working capital. Special attention refers to changes in inventories of raw materials, work in progress, and finished products.

Accelerating the turnover of working capital is an important factor in increasing the economic potential contained in it, since it allows, with the same amount of funds, to satisfy a larger volume of needs for them. The turnover rate is characterized by: the number of turnovers of working capital for a given period; average duration of one revolution, in days; consolidation coefficient.

To characterize the number of turnovers, the working capital turnover ratio is used, which is calculated as the ratio of the cost of products sold for a given period to the average balance of working capital for the same period.

The coefficient of consolidation of working capital is a value inversely proportional to the turnover ratio.

You can calculate the duration of turnover of both working capital as a whole and their individual functional elements - inventories, work in progress, finished products and others. Such an analysis allows us to identify those functional elements of working capital that slow down turnover and, therefore, reduce the efficiency of their use as a whole.

The total amount of the absolute release of working capital (or their loading into circulation) is determined according to the data in the second section of the balance sheet. The difference in the total value of current assets at the beginning and end of the year (quarter, month) shows their overall change for the analyzed period. The loading or release of working capital is also determined by their various functional elements - stocks of raw materials and materials, work in progress, etc.

Of great importance for determining the efficiency of the use of working capital is the calculation of the relative release of working capital. The amount of relative release is determined as the difference between the amount of working capital of the base period, recalculated for the growth in turnover for sales of products and services in the analyzed (reporting) period, and the actual amount of working capital in the analyzed (reporting) period.

Relative savings (investment) of working capital shows how much the actual amount of working capital is less (greater) than the amount that the enterprise would need in the analyzed period, based on the efficiency of their use in the base year (quarter, month). For these purposes, the basic amount of working capital is adjusted for the increase (decrease) in sales volume in the analyzed period compared to the base one. Accelerating the turnover of working capital is an important factor in increasing production efficiency.

The balance sheet and profit and loss statement of the organization serve as the information base for analyzing the organization's working capital.

Chapter2. Analfrom formation and usenegotiablefundsOOO "Tair»

2.1 Brief organizational and economicobject of study

The object of study of this course work is the limited liability company "Tair".

Tair LLC was founded in 2007 and over the years of its operation has become a steadily developing enterprise.

The main activity of the organization is wholesale trade in food products, delivery of products to retail outlets in the city and region, distribution of leading global and Russian companies.

Posted on http://www.allbest.ru/

Rice. 2.1. Organizational structure of Tair LLC

Table 2.1. Analysis of the results of financial and economic activities of Tair LLC for 2012-2013.

Indicators	Deviation (+,-)	Growth rate, %
Sales proceeds excluding VAT
Number of employees
Sales revenue per employee
Cost of goods sold
Gross profit
Business expenses
Payroll
Average monthly wages one employee
Profit (loss) from sales
return on sales
Other income
Other expenses
Profit (loss) before tax
Current income tax, penalties for paying taxes
Net profit (loss)
Profitability of final activities
Average annual property value
Average annual cost of fixed assets

Based on the results of the reporting period, it should be noted that the efficiency of using the organization’s labor resources increased by 45.75%, which is also assessed positively.

You should also evaluate positively the increase in profit from the sale of goods by 48.81% and the increase in return on sales by 0.17%.

A positive aspect in the organization’s activities during the reporting period is the reduction in the level of the organization’s commercial expenses by 0.05%.

Due to an increase in other income of the organization by 53.33% and a stable value of other expenses of the organization, the amount net profit the organization at the end of 2013 increased by 72.10%, with an increase in the profitability of the organization’s final activities by 0.98%, which is assessed positively.

An analysis of the organization’s property status indicates an increase in the economic potential of the organization and an increase in the material and technical base, since at the end of the reporting period there is an increase in the value of the organization’s property by 19.90%, while the value of both current and non-current assets of the organization increases by 18,674 and 283 thousand rubles respectively.

To summarize the analysis, it is necessary to give a positive assessment of the dynamics of the results of economic activities of Tair LLC based on the results of the analyzed period.

2.2 Analysis of the formation and use of current assetsLLC "Tair"

At the beginning of the analysis, it is necessary to consider changes in the overall structure of the enterprise’s property, identifying the share of current assets and the dynamics of its change in the total value of the property.

For this purpose, we will compile table 2.2.

Table 2.2. Analysis of the dynamics, composition and structure of the property of Tair LLC for 2012-2013.

Indicator name	Deviation	Growth rate, %

Property of everything, incl.
Non-current assets
Current assets

As follows from the data in Table 2.2, the total value of the organization’s property increased by 23,376 thousand rubles. This, in turn, was due to a significant increase in the value of the organization’s non-current assets by 75.06%, with an increase in the value of current assets by 34.92%.

This change had an insignificant impact on the property structure of Tair LLC in 2013, namely, if at the beginning of 2013 the share of current assets was 99.39%, then by the end of the year it was 99.21%.

However, the existing share of non-current assets at the level of 0.79% indicates a discrepancy with the optimal ratio of the share of non-current and current assets of the organization, amounting to 30 and 70%, respectively.

Table 2.3. Analysis of the dynamics of the composition and structure of current assets of Tair LLC for 2012-2013.

Indicator name	Deviation	Growth rate, %

Current assets, incl.

raw materials and materials
finished products and goods for resale
deferred expenses

Cash
Other current assets

From the data in the analyzed table it follows that the value of the organization’s current assets increased by 34.68%. A study of the structure of the organization's current assets indicates a predominance of the organization's reserves in the amount of 80.87%, the size of which increased by 24.76%.

Thus, the change in the structure of current assets should be assessed positively, since funds are immobilized in accounts receivable.

Table 2.4. Analysis of the composition and structure of receivables of Tair LLC for 2012-2013.

Cash	Deviation	Growth rate,%

Accounts receivable in total, including
Long-term accounts receivable
Short-term receivables

Settlements with buyers and customers
Advances issued
Other debtors
Overdue accounts receivable

The data in Table 2.4 indicates an increase in the amount of receivables of Tair LLC by more than 2 times. At the same time given value represented by an increase in short-term receivables of the analyzed organization.

Considering the structure of this indicator, it should be noted that in 2013 there were significant changes: debt for settlements with buyers and customers increased by more than 3 times, with an increase in the share of this type of debt by 15.82%. At the same time, the increase in other receivables amounted to 60.73%.

Consequently, the dynamics of the organization's receivables are assessed negatively. At the same time, as a positive point, it should be noted that the organization has no overdue accounts receivable.

Table 2.5. Matrix balance sheet of Tair LLC at the end of 2013.

Indicators	Charter capital	Additional capital	retained earnings	Short-term loans and credits	Accounts payable
Non-current assets

Short-term receivables
Cash
Other current assets

The data from the analysis indicate that the organization in its activities uses both its own and borrowed sources of financing to finance inventories and costs.

At the same time, most of the current assets are financed from the organization’s retained earnings, the amount of which at the end of 2013 amounted to 67,614 thousand rubles, which deserves a positive assessment.

Depending on the degree of liquidity, the assets of the enterprise are divided into the following groups.

A1. The most liquid assets - these include all items of the enterprise's funds and short-term financial investments (securities). This group is calculated as follows:

A1 = page 250 + page 260

A2. Quickly realizable assets are accounts receivable, payments for which are expected within 12 months after the reporting date.

A2 = page 240

A3. Slowly selling assets - items in section 2 of the balance sheet assets, including inventories, value added tax, accounts receivable, and other current assets.

Table 2.6. Analysis of the composition and structure of working capital of Tair LLC by degree of liquidity for 2012-2013.

				Deviation,(+,-)

	Most liquid assets (A1)
	Quickly realizable assets (A2)
	Slowly selling assets (A3)
	Hard to sell assets (A 4)

A3 = page 210 + page 220 + page 230 + page 270

A4. Hard-to-sell assets - items in section 1 of the balance sheet asset - non-current assets.

A4 = page 190

The results of the analysis indicate the predominance of the share of slowly selling assets of the organization, amounting to 81.11% at the end of the reporting period, the size of which increased by 14,449 thousand rubles in 2013. It is also necessary to note a significant increase in quickly sold assets by 9126 thousand rubles.

Table 2.7. Analysis of the composition and structure of working capital of Tair LLC by risk level for 2012-2013.

Working capital group	Composition of included asset balance sheet items	At the end of 2012	At the end of 2013	Deviation, (+,-)
		amount, thousand rubles	specific gravity, %	amount, thousand rubles	specific gravity, %	amount, thousand rubles	specific gravity, %
Working capital subject to inflation	Cash
	Accounts receivable

Working capital not subject to inflation
	Other means

Total amount of working capital excluding VAT

The data of the analysis allow us to conclude that in the structure of the organization's current assets, current assets that are not subject to inflation predominate - 81.76%.

At the same time, the amount of these assets in dynamics increased by 14,449 thousand rubles, which deserves a positive assessment. The structure of this group of assets is dominated by inventories, the share of which at the end of the reporting period amounted to 98.92%.

Chapter3. Assessing the efficiency of using working capitalfunds inLLC "Tair"

3.1 Calculation of efficiency indicators for the use of current assetsLLC "Tair"

The main indicators characterizing the efficiency of using the organization's working capital are indicators of the speed and time of circulation of the organization's working capital, as well as the profitability ratio of working capital.

Table 3. Analysis of the dynamics of the efficiency of using working capital of Tair LLC for 2012-2013.

Indicators	Deviation, (+,-)	Rate of change, %
Revenue from the sale of goods, thousand rubles.
One-day revenue, thousand rubles.
Net profit, thousand rubles.
Average annual cost of working capital, thousand rubles.
Time of circulation of working capital, days
Speed of circulation of working capital, turnover
Absolute release (involvement) of working capital into circulation
Relative release (involvement) of working capital into circulation

The efficiency of using the organization's working capital has improved, since the circulation speed of these assets has increased by 0.3 volumes, while the circulation time has been reduced by almost 13 days. This situation is assessed positively. Due to the influence of the above factors, at the end of the reporting period, an additional amount of the organization’s working capital is released in the amount of 8493.26 thousand rubles, which deserves a positive assessment.

Table 3.2. Analysis of the dynamics of Tair LLC’s own working capital for 2012-2013.

	Indicator name				Rate of change, %
	Own capital, thousand rubles.
	Long-term liabilities, thousand rubles.
	Non-current assets, thousand rubles.
	Own working capital (line 1+line 2-line 3)
	Current assets, thousand rubles.
	Inventories including VAT, thousand rubles.
	Equity capital agility ratio (line 4/line 1)
	Provision ratio of own working capital (page 4/page 5)
	Inventory coverage ratio with own working capital (line 4/line 6)

As follows from Table 3.2, the organization’s own working capital increased by 31.28%, which is assessed positively.

At the same time, the value of the organization’s agility coefficient remains unchanged - 0.99. Also worthy of a positive assessment is the increase in the dynamics of the reserve ratio with own working capital by 5.23%.

The value of this coefficient at 0.88 means that 88% of the organization’s reserves are financed from its own working capital.

Table 3.3. Analysis of the impact of the efficient use of working capital of Tair LLC on sales revenue

Indicators	Adjusted value	Magnitude of influence
Average cost of working capital, thousand rubles.
Circulation speed, rev.
Sales proceeds, thousand rubles. (page 1*page 2)

The data from the analysis allow us to conclude that increasing the efficiency of using the organization's working capital has a significant positive impact on the amount of revenue from the organization's sales.

Due to an increase in the turnover rate of working capital from 2.72 to 3.02 vol., sales revenue increased by 23,116 thousand rubles, which is assessed positively.

Due to the increase in the average annual cost of the organization's working capital, sales revenue increased by 50,826 thousand rubles, which deserves a positive assessment.

Continuing the analysis, let's look at the indicators business activity organizations and give them an assessment (Table 3.4.).

An assessment of the ratio of growth rates of the main estimated indicators of the organization’s activities allows us to conclude that an increase in the average value of assets by 31.77% indicates an emerging trend of increasing economic potential.

Table 3.4. Analysis of the dynamics of business activity of Tair LLC for 2012-2013.

	Indicators				Growth rate, %
	Sales revenue, thousand rubles.
	Net profit (loss), thousand rubles.
	Average assets, thousand rubles.
	Average equity capital, thousand rubles.
	Average cost of non-current assets, thousand rubles.
	Average value of current assets, thousand rubles.
	Average cost of inventories and expenses excluding VAT, thousand rubles.
	Selling expenses, thousand rubles.
	Average amount of accounts receivable, thousand rubles.
	Average amount of accounts payable, thousand rubles.
	Asset turnover rate, vol.
	Velocity of circulation of equity capital, vol.
	Speed of circulation of current assets, vol.
	Time of circulation of current assets, days.
	Inventory circulation time, days.
	Average repayment period for receivables, days.
	Average period for repayment of accounts payable, days.
	Duration of the operating cycle, days.
	Duration of the financial cycle, days.
	Return on assets, %
	Return on equity, %
	Ratio of average assets to average equity capital

Analysis of the dynamics of relative indicators of business activity indicates an increase in return on assets by 4.5%. During the analyzed period, the efficiency of using funds belonging to the owners of the organization deteriorated by 2.5%, thus, in the analyzed period, the organization receives 29.75 rubles. net profit from every 100 rubles. instead of 32.25 rub. own funds.

At the same time, asset turnover accelerated by 0.29 vol. An increase in the ratio means more intensive use of assets. From a financial point of view, the turnover of equity capital determines the rate of turnover of equity capital; from an economic point of view, it determines the activity of funds belonging to the owners of the organization.

In the analyzed organization for 2013, an acceleration of equity capital turnover was noted by 0.26 vol. An increase in the indicator indicates an increase in the level of business activity. The acceleration of turnover of current assets by 0.3 turnover had a positive impact on the level of business activity. The reason was a reduction in the circulation time of current assets by 13 days. Consequently, the dynamics of the organization’s business activity are assessed positively. At the same time, it should be noted negatively that the time for repaying the organization’s receivables increased by 4.18 days, with an increase in its value by 91.01%, which is assessed negatively.

3 .2 Proposals for improving the efficiency of working capital managementmeansLLC "Tair"

The data from the analysis indicate a fairly effective use of the organization's working capital. At the same time, as a negative point, it should be noted a significant increase in the amount of the organization’s receivables with a simultaneous increase in the period for its repayment.

The low turnover of receivables of Tair LLC is due to the provision of trade credit, the inability of buyers to pay bills, as well as poor performance in collecting receivables.

Subject to settlement and contractual discipline, trading organizations should not have large accounts receivable, as this leads to a diversion of working capital, a delay in their turnover, which ultimately leads to the formation of a need for additional sources of funds and worsens the financial condition of the organization. The larger the accounts receivable, the less cash the organization has.

Accounts receivable is a manageable quantity. To do this, it is necessary to implement specific measures to manage the process of changing accounts receivable:

Use the method of providing discounts for early payment.

Conclusion

The course work included an analysis of the efficiency of using working capital of Tair LLC.

Data from the analysis of the organization's performance results for 2012-2013. indicate an increase in the scale of the organization’s activities: there is an increase in revenue from the sale of goods by 45.75%, with an increase in the cost of goods sold by 45.54%. At the end of the reporting period, the organization increased its gross profit by 46.80%, with its level increasing by 0.12%, which deserves a positive assessment.

The results of the analysis indicate an increase in the value of the organization's current assets by 34.68%. A study of the structure of the organization's current assets indicates a predominance of the organization's reserves in the amount of 80.87%, the size of which increased by 24.76%.

At the same time, the amount of funds of the organization at the end of the reporting year was reduced by 506 thousand rubles, which deserves a negative assessment. Based on the results of the reporting period, it should also be noted that the organization’s accounts receivable more than doubled.

The structure of assets is dominated by the share of slowly selling assets of the organization, amounting to 81.11% at the end of the reporting period, the size of which increased by 14,449 thousand rubles in 2013. It is also necessary to note a significant increase in quickly sold assets by 9126 thousand rubles.

Thus, we can conclude that in the structure of current assets of the organization, current assets that are not subject to inflation predominate - 81.76%. At the same time, the amount of these assets in dynamics increased by 14,449 thousand rubles, which deserves a positive assessment. The structure of this group of assets is dominated by inventories, the share of which at the end of the reporting period amounted to 98.92%.

The data from the analysis indicate an increase in the organization's own working capital by 31.28%, which is assessed positively. At the same time, the value of the organization’s agility coefficient remains unchanged - 0.99. Also worthy of a positive assessment is the increase in the dynamics of the reserve ratio with own working capital by 5.23%. The value of this coefficient at 0.88 means that 88% of the organization’s reserves are financed from its own working capital.

At the same time, it should be noted negatively that the time for repaying the organization’s receivables increased by 4.18 days, with an increase in its value by 91.01%, which is assessed negatively.

To optimize the size of receivables of Tair LLC, it is necessary to implement specific measures to manage the process of changing receivables:

Timely identify unacceptable types of accounts payable and receivable (overdue (unjustified) debts).

Monitor the status of settlements with customers for deferred (overdue) debts.

If possible, target a larger number of buyers in order to reduce the risk of non-payment by one or more large buyers.

Monitor the ratio of accounts receivable and accounts payable: a significant excess of accounts receivable poses a threat to the financial stability of the enterprise and makes it necessary to attract additional (usually expensive) sources of financing.

References

1. Civil Code of the Russian Federation (part one) dated November 30, 1994, No. 51-FZ (as amended on February 7, 2011) // Consultant Plus.

2. Tax Code of the Russian Federation (Part One) dated July 31, 1998, No. 146-FZ (as amended on October 28, 2011) // Consultant Plus.

3. Tax Code of the Russian Federation (Part Two) dated August 5, 2000 No. 117-FZ (as amended on November 28, 2011) // Consultant Plus.

4. Vasiliev A.A. Improving the financial reserves management system. - M.: 2012. - 392 pp.;

5. Volkova O.N. Analysis of the economic activity of the enterprise, M.: PBOYuL, 2011. - 290 pp.;

6. Drobozina L. A. Finance. - M.: UNITY, 2013. - 355 p.

7. Hare N.E. Financial resources of enterprises. - M.: 2009. - 217 p.

8. Efimova O.V. Financial analysis, 2nd ed., M.: Publishing house “Accounting”, 2011. - 320 p.

9. Karaseva I.M. Formation and use of financial resources. - Volgograd: 2011. - 190 p.

10. Kovalev V.V. Finance. - M.: Prospekt, 2012. - 262 p.

11. Kovaleva A.M. Finance and credit. - M.: FiS, 2009. - 247 p.

12. Kravchenko L.I. Analysis of economic activities in trade: Textbook for universities. - 6th ed., revised. - Minsk: New knowledge, 2011. - 526 p.

13. Lushina S.I., Slepova V.I. Finance. - M.: REA, 2013. - 567 p.

14. Pyastolov S.M. Analysis of the financial and economic activities of an enterprise: Textbook. - 2nd ed., stereotype. - M.: IC "Academy"; Mastery, 2010. - 336 p.

15. Selezneva N.N., Ionova A.F. Financial analysis: Tutorial. - M.: Unity - Dana, 2012. - 479 p.

16. Surin O.K. Analysis of the financial and economic activities of the enterprise // Audit and taxation. - 2011. No. 1. - With. 17-20.

17. Chernova E. G. Finance, money, credit. - St. Petersburg: St. Petersburg University Publishing House, 2009. - 255 p.

18. Sheremet A.D., Saifulin R.S., Negashev E.V. Methodology of financial analysis. - M.: INFRA-M, 2011. - 209 p.

19. Economics and organization of activities of a trading enterprise: textbook. allowance / Under general. ed. A.N. Solomatina. - M.: INFRA - M, 2012. - 295 p.

20. Economics of an enterprise (firm): textbook / A.S. Pelikh, V.M. Juha, I.I. Bokov and others - Rostov n/Don: Phoenix, 2011.- 416 p.

21. Economics of an enterprise (firm): textbook / under. ed. O.I. Volkova, O.V. Devyatkina. - 3rd ed., revised. and additional - M.: INFRA - M, 2009. - 601 p.

22. Economics of a trading enterprise: textbook. allowance. At 2 o'clock Part 1 / Yu.L. Alexandrov, E.A. Batraeva, I.V. Petrucheniai etc.; Krasnoyarsk State trade-econ.in-t. - Krasnoyarsk, 2011. - 258 p.

23. Economic statistics: textbook / Ed. Yu.N. Ivanova. - M.: INFRA - M, 2013. - 480 p.

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Introduction

Each enterprise, starting its activities, must have a certain amount of money. Working capital of enterprises is designed to ensure their continuous movement at all stages of the circulation in order to satisfy production needs for monetary and material resources, ensure timeliness and completeness of payments, and increase the efficiency of using working capital.

The problem of effective management of enterprises includes best use their funds, and first of all - working capital. The presence of sufficient working capital at the enterprise is a necessary prerequisite for its normal functioning in a market economy.

The main place in working capital is occupied by funds advanced into inventory assets. These include goods, inventories and other inventory items. Inventory includes raw materials, basic materials and purchased semi-finished products, low-value and high-wear items.

Other inventory items include the cost of containers, fuel, materials for household needs, and packaging materials.

Some part of working capital trading enterprises may be in the calculations. This is the debt of buyers for goods sold to them and services provided; debt of the population for goods and services sold to them on credit; claims amounts; various accounts receivable (customers for unpaid settlement documents, settlements for compensation of material damage, etc.). As a rule, accounts receivable arise as a result of non-compliance with financial and payment discipline and poor efforts to preserve property, which requires close attention from employees of the financial department.

Working capital is one of the components of the enterprise's property. The condition and efficiency of their use is one of the main conditions for the successful operation of an enterprise. The development of market relations determines new conditions for their organization. High inflation, non-payments and other crisis phenomena force enterprises to change their policy in relation to working capital, look for new sources of replenishment, and study the problem of the efficiency of their use.

CHAPTER 1. Analysis of the composition, structure, dynamics of working capital and assessment of their turnover

1.1 Concept and economic essence of working capital

Along with fixed assets for the operation of an enterprise, the availability of optimal quantity working capital.

Working capital is a collection of funds advanced to create circulating production assets and circulation funds, ensuring their continuous circulation.

Working capital ensures the continuity of production and sales of the enterprise's products. Working capital assets enter production in their natural form and are completely consumed during the manufacturing process, transferring their value to the product being created. Circulation funds are associated with servicing the process of circulation of goods. They do not participate in the formation of value, but are its carriers.

After the end of the production cycle, production of finished products and their sale, the cost of working capital is reimbursed as part of the proceeds from the sale of products (works, services). This creates the possibility of systematically resuming the production process, which is carried out through the continuous circulation of enterprise funds.

In their movement, working capital passes through three successive stages: monetary, productive and commodity.

The first stage of the circulation of funds is preparatory. It occurs in the sphere of circulation. This is where cash is converted into the form of inventory.

The productive stage is the direct production process. At this stage, the cost of the created products continues to be advanced, but not in full, but in the amount of the cost of the used production inventories; the costs of wages and related expenses, as well as the transferred cost of fixed assets, are additionally advanced. The productive stage of the cycle ends with the release of finished products, after which the stage of its implementation begins.

At the third stage of the circuit, the product of labor (finished products) continues to be advanced in the same amount as at the second stage. Only after the commodity form of the value of the produced products turns into money, the advanced funds are restored at the expense of part of the proceeds received from the sale of products. The rest of its amount is cash savings, which are used in accordance with their distribution plan. Part of the savings (profit), intended for the expansion of working capital, is added to them and completes subsequent turnover cycles with them.

The monetary form that current assets take at the third stage of their circulation is at the same time the initial stage of the turnover of funds.

The circulation of working capital occurs according to the following scheme:

D – T … P … T` - D`,

D – funds advanced by the business entity;

T – means of production;

P – production;

T` - finished products;

D` - cash received from the sale of products and including realized profit.

Dots (...) mean that the circulation of funds is interrupted, but the process of their circulation continues in the sphere of production.

Working capital during movement is at all stages and in all forms. This ensures a continuous production process and uninterrupted operation of the enterprise.

1.2 Composition and structure of working capital

The composition and structure of working capital are distinguished.

The composition of working capital is understood as the totality of elements that form working capital. The division of working capital into circulating production assets and circulation funds is determined by the peculiarities of their use and distribution in the areas of production and sales.

Working production assets include:

· Objects of labor (raw materials, basic materials and purchased semi-finished products, auxiliary materials, fuel, containers, spare parts, etc.);

· Labor equipment with a service life of no more than one year or a cost of no more than 100 times (for budgetary organizations– 50 times) set minimum size wages per month (low-value wearable items and tools);

· Work in progress and semi-finished products self-made(objects of labor that have entered the production process: materials, parts, assemblies and products that are in the process of processing or assembly, as well as self-made semi-finished products that have not been fully completed by production in some workshops of the enterprise and are subject to further processing in other workshops of the same enterprise);

· Future expenses (intangible elements of working capital, including costs for the preparation and development of new products that are produced in a given period, but are allocated to products of a future period; for example, costs for the design and development of technology for new types of products, for the rearrangement of equipment).

Circulation funds include:

· Enterprise funds invested in finished product inventories, goods shipped but not paid for;

· Funds in settlements;

· Cash in hand and in accounts.

The amount of working capital employed in production is determined mainly by the duration of production cycles for the manufacture of products, the level of technology development, the perfection of technology and labor organization.

The amount of circulating media depends mainly on the conditions for the sale of products and the level of organization of the supply and marketing system.

The relationship between the individual elements of working capital, expressed as a percentage, is called the structure of working capital. The difference in the structures of working capital of industrial sectors is determined by many factors, in particular, the peculiarities of the organization of the production process, the conditions of supply and sales, the location of suppliers and consumers, and the structure of production costs.

According to the sources of formation, working capital is divided into own and borrowed.

Own working capital is funds that are constantly at the disposal of the enterprise and are formed from its own resources (profit, etc.). In the process of movement, own working capital can be replaced by funds that are essentially part of one’s own, advanced for wages, but temporarily free (due to the lump sum payment of wages). These funds are called equivalent to own, or stable liabilities.

Borrowed working capital – bank loans, accounts payable and other liabilities.

Effective operation of an enterprise is achieving maximum results with minimum costs. Minimizing costs is, first of all, optimizing the structure of sources for the formation of working capital of an enterprise, i.e. reasonable combination of own and credit resources.

1.3 Rationing of working capital

Working capital management consists of ensuring the continuity of the production process and sales of products with smallest size working capital. This means that the working capital of enterprises must be distributed across all stages of the circulation in the appropriate form and in a minimum but sufficient volume.

IN modern conditions When enterprises are completely self-financing, correctly determining the need for working capital is of particular importance.

The process of developing economically justified amounts of working capital necessary for organizing the normal operation of an enterprise is called rationing of working capital. Thus, the rationing of working capital consists in determining the amounts of working capital necessary for the formation of constant minimum and at the same time sufficient reserves of material assets, minimum balances of work in progress and other working capital. Rationing of working capital helps to identify internal reserves, reduce the duration of the production cycle, and more quickly sell finished products.

They normalize working capital located in inventories, work in progress, and remaining finished products in the enterprise’s warehouses. These are standardized working capital. The remaining elements of working capital are called non-standardized.

In the process of rationing working capital, the norm and standard of working capital are determined.

Working capital norms characterize the minimum inventories of inventory items at an enterprise; they are calculated in days of supply, parts inventory norms, rubles per unit of account, etc.

The working capital norm is the product of the working capital norm by the indicator whose norm is determined. Calculated in rubles.

The working capital standard establishes the minimum estimated amount that is constantly necessary for the enterprise to operate. Actual inventories of raw materials, cash, etc. may be higher or lower than the standard or meet it. This is one of the most volatile indicators of current financial activity. Failure to fill the working capital standard may lead to a reduction in production and failure to fulfill the production program due to interruptions in production and sales of products.

Excessive reserves divert funds from circulation, indicate shortcomings in material and technical support, and irregular production processes and sales of products. All this leads to the death of resources and their ineffective use.

1.4 Working capital turnover

The criterion for the effectiveness of working capital management is the time factor. The longer working capital remains in the same form (cash or commodity), the lower, other things being equal, the efficiency of their use, and vice versa. The turnover of working capital characterizes the intensity of their use.

The role of the turnover indicator is especially great for industries in the sphere of circulation, including trade, catering, consumer services, intermediary activities, banking business, etc.

The efficiency of using working capital of industrial enterprises is characterized by three main indicators:

· Turnover ratio;

· Working capital utilization rate;

· Duration of one revolution.

The turnover ratio is determined by dividing the volume of product sales at wholesale prices by the average balance of working capital at the enterprise:

Ko = Rn / CO

Ko – working capital turnover ratio, turnover;

Рп – volume of products sold, rub.;

SO – average balance of working capital, rub.

The turnover ratio characterizes the number of turnovers made by the enterprise's working capital for a certain period (year, quarter), or shows the volume of products sold per 1 ruble. working capital.

Comparison of turnover ratios over the years allows us to identify trends in the efficiency of using working capital. If the number of turnovers made by working capital increases or remains stable, then the enterprise operates rhythmically and rationally uses monetary resources. A decrease in the number of turnovers made in the period under review indicates a drop in the rate of development of the enterprise and an unfavorable financial condition.

1.5 The value of accelerating turnover of working capital

The effect of accelerating the turnover of working capital is expressed in the release and reduction of the need for them due to the improvement of their use. A distinction is made between absolute and relative release of working capital.

Absolute release reflects a direct reduction in the need for working capital.

Relative release reflects both the change in the amount of working capital and the change in the volume of products sold. To determine it, you need to calculate the need for working capital for the reporting year based on the actual turnover of product sales for this period and turnover in days for the previous period. The difference gives the amount of funds released.

The release of working capital has a number of positive effects:

· Production of products occurs at lower costs of working capital;

· Material resources are released;

· Receipt of profit deductions into the budget is accelerated;

· The financial position of the enterprise improves, because the financial resources released as a result of the above-plan acceleration of the turnover of funds remain at the disposal of the enterprise until the end of the year and can be successfully used (profitably invested).

Unfortunately, the own financial resources that enterprises currently have cannot fully ensure the process of not only expanded, but also simple reproduction.

CHAPTER 2. Analysis of the composition, structure, dynamics of working capital and assessment of their turnover at JSC Gomelgazstroy

2.1 Technical and economic characteristics of OJSC “Gomelgazstroy”

OJSC "Gomelgazstroy" was created in the process of privatization of state property of the rental specialized mobile mechanized column No. 3 of the trust "Belspetsmontazh - 3" of the city of Gomel of the Belarusian concern for fuel and gasification "Beltopgaz" by the founding conference.

The founders of the Company are the Gomel Regional Committee for State Property Management with an ownership share of 98.7% and members of the rental team of the enterprise, transformed into an OJSC with an ownership share of 1.3%.

In the effective and profitable work of OJSC Gomelgazstroy, an important place is occupied by a rational organization and a properly formed production and personnel management system. Ensuring the proportionality of all elements of the production process and clear coordination of all levels of management is the most important condition for obtaining a positive effect from the operation of the enterprise as a whole.

The structure of the enterprise includes:

Management personnel (director, chief engineer, deputy directors, chief mechanic, heads of structural units, foreman, foremen);

Department specialists, laboratories;

Workers at construction and installation sites No. 1, 2 auxiliary production sites, mechanization site;

Staff service.

The structure of OJSC Gomelgazstroy is set out in detail in the staffing table. The distribution of functions and responsibilities is provided job responsibilities, qualified requirements.

OJSC "Gomelgazstroy" carries out the following activities:

· construction of gas supply systems;

· design of gas supply systems;

· manufacturing of gas supply system products (assemblies and parts);

· operation and technically related to operation, storage and transportation of radiation devices;

· shooting of underground and above-ground structures;

· intercity cargo transportation by road transport;

· operation of cranes;

· transportation dangerous goods(oxygen, sulfuric acid, etc.) by road transport;

· accreditation for types of non-destructive testing and other tests.

A five-day work week with two days off has been established; for workers at construction and installation sites there is a summarized accounting of working time with a reporting period of 0.5 years. Work is carried out in one shift.

OJSC Gomelgazstroy has five sections: construction and installation sections No. 1 and No. 2, auxiliary production section, mechanization section, welding and insulation quality control section.

Construction and major renovation gas supply facilities in Gomel and the Gomel region are carried out in areas and settlements susceptible to contamination by radioactive emissions from the Chernobyl nuclear power plant, according to the republican program and are of great social importance. The main financing of construction comes from the budget and the innovation fund of the Beltopgaz concern.

During its activity, the company’s team built and put into operation 1,876 km of gas networks and gasified 244 cities and towns of the Republic of Belarus, of which:

In the Gomel region – 219;

In the Mogilev region – 13;

In the Grodno region – 9;

In the Minsk region – 2;

In the Brest region – 1.

All objects under construction are accepted by the State Commissions within the agreed and planned time frame. During its activity, the enterprise did not have customers or State supervision bodies.

The production capacity of the company with the fullest use of production resources is more than 6000.0 million rubles for construction and installation work.

Existing capacity technological equipment allows you to increase volumes by 30-40%. All objects planned for construction are fully provided with materials and raw materials provided for by the production technology and design conditions. Improvement work is constantly underway technological processes and mechanization of construction work.

The main types of work at OJSC Gomelgazstroy are the construction of gas pipelines in cities and towns, gasification of residential buildings, boiler houses, industrial enterprises, agricultural enterprises, design of gas supply systems, production of components and parts by the auxiliary production site.

The technology for constructing gas pipelines consists of a preparatory period, welding and installation, insulation, and excavation work.

OJSC Gomelgazstroy is one of the oldest specialized enterprises in the region for the construction of gas supply systems. During its existence, extensive work experience has been accumulated, highly qualified personnel have been trained and trained, there is a production base that allows for the production of components, parts and other types of work in a factory environment, and there is an own laboratory for quality control of the work performed.

The main customers of OJSC “Gomelgazstroy” are: Republican Unitary Enterprise “Gomeloblgaz”, UKS of the regional executive committee, industrial enterprises, construction organizations of the city of Gomel and the region, owners of departmental housing stock, owners of housing facilities.

RPUE "Gomeloblgaz" uses funds from the innovation fund to construct gas distribution pipelines in cities, repair and replace gas pipelines. UKS of the regional executive committee is the customer for the construction of gas supply systems in the agricultural sector at the expense of the Chernobyl NPP.

Customers are also large construction organizations in the region: MPU "Mozyrmezhraigaz", OJSC "Mozyrpromstroy", SMP - 716 SRUP "Trest Beltransstroy", RPU "Zhlobinraigaz", OJSC "SMT No. 27" and others.

The production potential of OJSC "Gomelgazstroy" allows you to increase the number of customers by performing additional work on the installation of heating and water supply systems, the installation of smoke and ventilation ducts, the provision of cargo transportation and vehicle repair services, design work, surveying of underground and above-ground structures, inspection of welded joints, etc.

Reducing the cost of construction and installation work by reducing their cost allows us to attract additional customers for gasification of the housing stock of the population.

Work has been carried out to reduce emissions of pollutants into the atmosphere through the modernization of supply and exhaust ventilation by the community.

To calculate prices for construction and installation work financed from the budget and other sources, indices for cost elements calculated by the Republican Scientific and Technical Center for Pricing in Construction are used. Costings are prepared for the products of the auxiliary production site.

During the construction of gas pipelines, welding quality control is carried out non-destructive method(radiography) and mechanical tests in accordance with the requirements of SNiP 3.05.02-88. The quality control of the insulating coating is carried out using the instrumental method (GOST 9.602-89). The welding and insulation quality control area is accredited for types of non-destructive testing and other tests.

The production base of OJSC "Gomelgazstroy" is intended for storage, repair of automotive and construction equipment, as well as for storage, processing of necessary building materials and production of components and parts, welding of pipes with a diameter of up to 500 mm, has repair areas, storage facilities, household premises.

In the efficient and profitable operation of OJSC "Gomelgazstroy" special place is occupied by a rational organization of production and a properly formed management system. Ensuring the proportionality of all elements of the production process and clear coordination of all levels of management is the most important condition for making a profit - the most important economic indicator characterizing the final results of the economic activity of any commercial entity.

In the process of intra-company planning, in addition to efficiency criteria, private criteria can be used to establish and select the optimal values of planned indicators: cost, material intensity, labor intensity, profitability, break-even, shareholder income, market price, etc. The choice of certain economic indicators as evaluation criteria efficiency depends on specific production conditions and the specifics of the work.

Table 2.1 - Technical and economic indicators of production and economic activities of OJSC Gomelgazstroy for 2007-2008

Unit change	2007	2008	Growth rate %
1. Energy saving	%	- 16,1	-6,5
	million rubles	8568,2	8916,3	104,0
incl. on our own	million rubles	4472	4830	108,0
3. Volume of construction and installation work - total (in comparable prices)	thousand rubles	2920	3197	109,5
incl. on our own	thousand rubles	2579	2824	109,5
4. Volume of construction and installation work - total (in current prices)	million rubles	4513	4874	108,0
incl. on our own	million rubles	4005	4325	108,0
	million rubles	43	43	100,0
6. Capital investments	million rubles	43	43	100,0
incl. construction and installation works	million rubles	0	0
7. Sales revenue	million rubles	8568,2	8916,3	104,0
incl. secured by cash flow	million rubles	3983	4302	108,0
8. Cost of products sold	million rubles	6805,8	7403,4	99,5
including material	million rubles	2784	2755	99,5
depreciation of fixed assets	million rubles	139	148	107,6
wages	million rubles	1292	1455	108,0
social security contributions	million rubles	284	298	105,0
other costs	million rubles	679	584	86,0
9. Profit from sales	million rubles	619,3	500,7	81,0
10. Net profit	million rubles	389,4	121,6	31,2
11. Profitability of products sold	%	5,66	6,15	108,7
12. Payroll	million rubles	835,9	902,8	108,0
13. Average headcount	people	122	122	100,0
incl. personnel engaged in construction and installation work	people	89	89	100,0
14. Average monthly salary	rub.	570970	673700	118,0
15. Labor productivity	rub.	1762	1929	109,5
16. Commissioning of facilities by contractors	km	51,1	55,2	108,0
incl. on our own	km	51,1	55,2	108,0
17. Volume of sales of regular services to the population	million rubles	80,8	87,3	108,0

Table 2.2 - Completion of volumes of construction and installation work (thousand rubles)

As can be seen from the table, the volume of construction and installation work at current prices increased by 36.8%. At basic prices, this increase was only 9.4%. In particular, the volume of construction and installation work done on our own also increased during the period under study.

Table 2.3 - Summary indicators of production and economic activities of OJSC Gomelgazstroy for 2007

Name of indicators	Unit change	January-December	fact 2006
plan	fact	fulfilled plan, %	growth rate, %	January - December
1. Energy saving	%	-6,5	-16,1	247,7	+ 1,6
1. Capital investments	million rubles	4507	5837,6	129,5	139,9	4173,2
	million rubles	3812	5180,8	135,9	146,8	3529,9
2. Volume of contract work (in current prices)	million rubles	3973	5008,2	126,1	136,1	3679,4
including: on our own	million rubles	3392	4471,6	131,8	142,4	3141,0
3. Volume of construction and installation work (in 1991 prices)	thousand rubles	2884	2920,1	101,3	109,4	2670,0
including: on our own	thousand rubles	2469	2578,9	104,5	112,8	2286,3
4. Volume of construction and installation works (in current prices)	million rubles	3564	4513,4	126,6	136,8	3299,6
including numbers: on our own	million rubles	3032	4005,3	132,1	147,9	2708,0
5. Commissioning of fixed assets	million rubles	40	43	107,5	148,3	29
6. Sales revenue	million rubles	8362,1	8916,3	148,2	187,3	2551
including: secured by cash flow	million rubles	2578	4489	174,1	265,6	1690
7. Cost of products sold	million rubles	6982,2	7403,4	166,3	192,5	1989
8. Profit from sales	million rubles	367,4	324,1	77,1	157,0	135
9. Net profit, loss for the year	million rubles	113,8	121,6	115,4	127,7	47
10. Profitability of products sold	million rubles	11,94	5,54	46,4	81,6	6,79
11. Payroll fund	million rubles	793,4	835,9	105,4	145,0	576,3
12. Average number of employees	people	115	122	106,1	107,0	114
including: personnel engaged in construction and installation work	people	85	89	104,7	107,2	83
13. Average monthly salary (forecast indicator)	rub.	574900	570970	99,3	135,5	421272
14. Labor productivity (average monthly)	rub. (in 1991 prices)	1789	1762	98,5	105,4	1671
15. Commissioning of facilities by contractors	km	50,0	51,1	102,2	105,8	48,3
including: on our own	km	48,4	51,1	105,6	109,4	46,7
16. Volume of sales of paid services to the population	million rubles	8,6	80,8	939,5	1122,2	7,2
17. Gasification of individual houses	pcs.	654	157,2	416

Thus, the plan was exceeded in most respects. The plan remained unfulfilled only in terms of such indicators as profit from sales, profitability of products sold, average monthly wages, and labor productivity.

It is impossible to ignore the exceeding of the plan for the volume of sales of paid services to the population by 839.5%. The growth rate for this indicator is also very high (1022.2%).

Compared to last year, only the profitability of products sold decreased (by 18.4%).

There is an increase in other indicators.

2.2 Composition and structure of working capital of OJSC Gomelgazstroy

The organization's main working capital is entirely consumed in each production process, transfers its entire value to the finished product and changes its natural form.

Working production assets represent part of production assets, the material content of which is the objects of labor functioning in the sphere of production.

Working production assets are divided into a number of groups:

Industrial inventories (raw materials, basic materials, purchased semi-finished products, auxiliary materials, fuel, containers and packaging materials, spare parts for routine repairs, low-value and quickly wearing out household equipment and tools);

Work in progress – unfinished products subject to further processing;

Deferred expenses are the costs of preparation and development of new products, produced in a given period, but subject to repayment in the future.

Raw materials are objects of labor for the extraction or production of which labor was expended. Raw materials are for example: ore, cotton.

Materials are objects of labor that have already been subjected to industrial processing, for example rolled metal. Products are made from basic materials; they form its main material content.

Semi-finished products are labor products that have gone through one or more stages of production, but still require further processing or assembly.

Containers and packaging materials - represent all types of packaging and materials necessary for their production.

Work in progress is items of labor that are being processed or awaiting further processing and have not yet been included in the finished product.

Along with working capital, the enterprise has circulation funds that function in the sphere of circulation. These include:

Finished products in warehouses;

Products shipped but not paid for;

Accounts receivable;

Cash in bank accounts, in pending settlements.

The totality of working production assets and circulation funds constitutes working capital.

An analysis of the structure and dynamics of working capital of OJSC Gomelgazstroy is presented in Table 2.4.

Table 2.4 - Structure of the enterprise’s working capital, million rubles

To determine the reasons for changes in the amount of working capital for 2007-2009, we will conduct a factor analysis. First-order factors include: inventories and costs, taxes on acquired assets, accounts receivable, cash.

Change in working capital, total:

∆K about =K about about1 - To about about0 (2.1)

∆K about =1552.2-1367.1=185.1 million rub.

Changes in inventories and costs

∆K ob(dzz) =K coz ob1 - K coz ob (2.2)

∆K rev(dz) =1218.3-818=400.3 million rub.

Change in accounts receivable

∆K about (ddz) =K code about1 - K about about (2.3)

∆D xi ob(ddz) =263.7-281.4=-17.7 million rub.

Change in cash

∆K ob(dds) =K codes ob1 - K codes ob (2.4)

∆K ob(dds) =67.1-216.7=-149.6 million rub.

Working capital for 2008 increased by 585.4 million rubles. Greatest negative influence The increase in working capital was influenced by changes in inventories and costs that occurred due to an increase in work in progress. The growth of accounts receivable does not indicate an ineffective policy for managing accounts receivable at the enterprise.

The structure of working capital is presented in table 2.5

Table 2.5 Changes in the structure of working capital

A rational structure of working capital is when the largest part of it is invested in inventory, and the smallest part in cash and receivables. The table shows that the structure of working capital of a given enterprise fully complies with this rule. It also follows from the table that the components of working capital in percentage terms for the period under review changed throughout the period under review. So in 2008, reserves increased by 29.8%, and in 2009, reserves increased by 18.7% compared to 2008. The largest part of the reserves consists of raw materials, materials and other material assets, and a small part consists of deferred expenses. Accounts receivable have been declining over the years and in 2009 this figure decreased by 4.9% compared to 2007. The cash item decreased significantly, from 2007 to 2009 by 37.3%.

2.3 Analysis of accounts receivable

From table 2.5 it can be seen that the share of accounts receivable in the composition of working capital decreases in 2008 by 26.7%, in 2009 it decreases by 3.6% compared to the previous year. This is explained by the fact that due to the increasing frequency of non-payments for manufactured and supplied products, the plant’s financial policy is aimed at fulfilling orders and delivering products on an advance payment basis. Orders for the production of mechanical parts and assemblies are carried out with a 50% advance payment. Delivery of finished products is carried out after 100% advance payment. Reliable relationships were established with suppliers and contractors.

To assess accounts receivable turnover, the following group of indicators is used (Table 2.6.).

1. Accounts receivable turnover

where VR is revenue from product sales, million rubles;

SDZ – average accounts receivable, million rubles.

2. Receivables repayment period.

Table 2.6.-Receivables turnover indicators

The table shows that the turnover period of accounts receivable is decreasing. This is a positive result of the enterprise's activities. Reducing the period of debt overdue reduces the risk of non-repayment.

2.4 Analysis of the efficiency of using working capital

The most important indicators of the efficiency of using working capital are:

· current ratio;

· turnover ratio;

Duration of one revolution, in days;

· working capital load factor;

· profitability of working capital.

The working capital turnover ratio shows the number of revolutions that working capital makes during the planning period and is determined by the formula:

To rev. =Proceeds from sales / Average working capital

The average duration of turnover of working capital (turnover in days) is determined by the ratio of the product of the average balance of working capital and the number of days in the period to the amount of product sales for this period:

Duration of turnover =360 / Asset turnover

Loading = Average working capital / Sales revenue

Return on working capital shows how much profit for billing period time the enterprise receives per ruble of its working capital.

Return on working capital. =Net profit / Average working capital

An analysis of the efficiency of using working capital is presented in table. 4.

The most common method for calculating the working capital needs of an enterprise is based on the volume of products sold, determined in the business plan for the coming period and the level of the working capital consolidation ratio for previous periods.

Knowing the need for working capital and the availability at the beginning of the planning period, it is easy to then calculate the additional need for working capital and determine the sources of covering this need (from own or borrowed financial resources).

If we assume that the planned volume of sales of the enterprise’s own products is determined on the basis of marketing research, analysis of the existing structure and consumer requirements recorded in supply contracts already concluded and expected to be signed, then the main problem is the justified determination of the planned level of the working capital consolidation coefficient.

Of course, we can proceed from the actual value of the consolidation coefficient in the reporting period closest to the planned one; however, it is more expedient to first analyze the current level of working capital and identify possible reserves for reducing the need for it.

Table 2.7 – Calculation of working capital requirements in 2008

The total planned need for working capital, based on the target for the volume of products sold for 2007, is 6771 million rubles. will be equal to: 0.28*8568.2 = 2399.1 million rubles. Taking into account the increase in sales volume in 2008 by 26.7.0%, an increase in working capital by 1214 million rubles is required. In 2008 Working capital amounted to 1,367 million rubles, which is 43.7% less than the plan.

The current ratio shows whether the company has enough funds that can be used to pay off short-term obligations. It characterizes the overall provision of the enterprise with funds for conducting business activities. OJSC Gomelgazstroy only in 2008 received this coefficient with a value greater due to the restructuring of accounts payable.

To current liquid 2007 = 1917.7/ 2079.1 = 0.92;

To current liquid 2008=1367.1/1197.9 = 1.1;

To current liquid 2009=1552.2/1720.8 = 0.90

An increase in the turnover ratio and a reduction in the period of one turnover during the period under review indicate the effective use of working capital.

Turnover 2007 = 6762.3/1917.7 = 3.5;

To rev. 2008 =8916.3/1367.1 = 6.5;

To rev. 2009 = 8568.2/1552.2 = 5.5

As a result of the increase in the turnover ratio, the absolute release of working capital was ensured, i.e. fulfillment or overfulfillment of the production plan is ensured with a smaller amount of working capital than provided for by the plan.

Duration of turnover 2007 =360/3.5 = 103 days;

Duration of turnover 2008 = 360/ 6.5 = 55 days;

Duration of turnover 2009 = 360/ 5.5 = 65 days.

Also, to assess the efficiency of using working capital, the working capital load factor is calculated. It characterizes their amount per 1 ruble of products sold.

Load = Average working capital / Sales revenue

To download 2007 = 1917.7 / 6762.3 = 0.28 rubles;

To download 2008 = 1367.1 / 8916.3 = 0.15 rubles;

To download 2009 = 1552.2 / 8568.2 = 0.18 rub.

Analyzing the data obtained, we can say that in 2007, for 1 ruble of sold products there were 0.28 rubles of working capital. This figure in 2008 was 0.15 rubles and in 2009 0.18 rubles, respectively.

R obor. cap. =Net profit / Average working capital

R rev.cap. 2007 = 389.4 / 1917.7 = 0.2;

R rev.cap. 2008 = 121.6/ 1367.1 = 0.1;

R rev.cap. 2009 = 389.4/ 1552.2 = 0.3.

Thus, in 2007, the enterprise received 0.2 rubles of profit per ruble of working capital; this figure in 2008 was 0.1 rubles. In 2009, the enterprise received 0.3 rubles of net profit per ruble of working capital, which is the best result for the period under study.

2.5 Cash flow analysis

Cash flow analysis is carried out according to the reporting period. At first glance, such an analysis, like any other section of retrospective analysis, is of relatively low value to a financial manager; however, arguments can be made that to a certain extent justify its implementation.

The important role of cash flow analysis, which creates the basis for the formation of effective policies and management decisions by the organization's management, is due to a number of reasons: cash flows serve the functioning of the organization in almost all aspects of its activities; optimal cash flows ensure the financial stability and solvency of the organization; rationalization of cash flows contributes to the achievement of rhythm in the production and commercial process of the organization; effective cash flow management reduces the organization's need to attract borrowed capital; optimization of cash flows is a prerequisite for accelerating the capital turnover of the organization as a whole.

The purpose of cash flow analysis is to obtain the required volume of their parameters, giving an objective, accurate and timely description of the directions of receipt and expenditure of funds, volumes, composition, structure, objective and subjective, external and internal factors that have different effects on changes in cash flows.

Table 5 presents data from the cash flow statements of OJSC Gomelgazstroy for 2007 and 2008, which served as the basis for the analysis of cash flows. As a result of its production activities in 2007, the organization significantly increased the volume of money supply in terms of both cash inflows and cash outflows. This situation can be assessed positively, since it is a consequence of an increase in the scale of production and sales of products. A positive point is the excess of cash inflow over cash outflow in 2007 and 2008, which ensured the achievement of a positive net cash flow of 4,680 thousand rubles, respectively. and 9722 thousand rubles. The amount of positive cash flow in 2005 increased by 602,672 thousand rubles compared to 2004, and in 2004 compared to 2003 it increased by 1,650,518 thousand rubles. The growth rate in 2005 was 21.1%, and in 2004 - 137.6%. Considering cash flow indicators by type of activity, it should be noted that the largest volume of money supply provides the main current activities of the organization. In 2003 and 2004 The company's funds are presented in the context of current activities. The amount of cash inflow from current activities in 2005 amounted to 3,325,416 thousand rubles, which is 475,417 thousand rubles. more than in the previous year. The share of this indicator in the total volume of all cash receipts was 96.31% in 2003. This is explained by the relative intensification of the investment and financial activities of the enterprise. According to Tables 8 and 9, it is possible to analyze the structure of inflows and outflows of funds of OJSC Gomelgazstroy for 2007 - 2008. Indicators characterizing individual elements of positive cash flows are combined into three groups (Table 2.8)

Table 2.8 - Structure of cash inflow of OJSC Gomelgazstroy for 2007-2008

As can be seen from Table 2.8, the largest inflow of funds from OJSC Gomelgazstroy in 2007-2008. was provided by sales proceeds and advances received. The absolute value of the increase in these indicators in 2008 compared to 2007 decreased by 25.7 million rubles. The growth rate in 2008 compared to 2007 was 99.7%.

At the same time, a comparison of the relative indicators of the structure of cash inflows showed a decrease in 2008 compared to 2007 in the share of receipts in the form of revenue and advances by 0.3%. The amount of receipts in the form of loans and credits in 2008 decreased by 568.3 million rubles. The share also decreased by 4.1%. This circumstance indicates an increase in the organization’s own cash resources and increased financial independence from borrowed capital.

In 2008, there was an increase in cash receipts from other types of activities of the organization (dividends, interest, income from the sale of property), the amount of which almost doubled, the share increased by 2.0%. This indicates the effectiveness of decisions made in the organization. According to Table 6, cash outflow in 2007 - 2008. to a greater extent due to business transactions related to remuneration and wage accruals. The outflow of funds for this reason increased in 2004 by 774,086 thousand rubles, and in 2005 - by 179,888 thousand rubles. However, in 2004 and 2005. the share decreased by 2.6% and 3.2%, respectively, and amounted to 48.8% and 45.6% of the total negative cash flow.

Table 2.9 – Structure of cash outflow of OJSC Gomelgazstroy for 2007-2008

Indicator	Amount of funds, million rubles.		Growth rate, %	Specific gravity, %		Deviation
Indicator	2007	2008	Growth rate, %	2007	2008	Deviation
1. Payment for goods, works, services, advances	8972,6	8044,4	89,7	65,2	62,1	-928,2
2. Remuneration with accruals	1692,0	1825,5	107,9	12,3	14,1	133,5
3.Dividends, interest, loans paid	1296,9	846,4	65,3	9,4	6,5	-450,5
4. Calculations with the budget	1593,1	927,0	58,2	11,6	7,2	-666,1
5. Other payments	211,8	1318,3	622,4	1,5	10,1	1106,5
6. TOTAL:	13766,4	12961,6	94,2	100	100	-804,8

In 2008, a decrease in absolute indicators of cash outflows was observed for almost all constituent elements, except for business transactions for wages and other payments compared to 2007. Assessing this situation and comparing the scale of negative and positive cash flows in 2008 as a whole, we can conclude that the decrease in the volume of cash outflow is a consequence of a decrease in the volume of production and economic activities of OJSC Gomelgazstroy, which negatively affected the financial results of the enterprise.

The analysis carried out is the basis for developing measures to effective management working capital, and ultimately to strengthen the financial condition of the enterprise.

CHAPTER 3. Proposals to improve the efficiency of using working capital

In order for an enterprise to avoid a cash shortage caused by an increase in accounts receivable and irrational increase, it is necessary to implement a system of rationing of current assets. To do this, you will need to calculate working capital standards, test the correctness of the results obtained, and automate procedures for adjusting and monitoring established standards. The creation of standards for all current assets is unjustified. As a rule, non-standardized items of current assets include “Deferred expenses”, “VAT”, “Other debtors and creditors”. It is advisable to standardize only those items of current assets in respect of which the following conditions are met:

· business transactions with one or another group of current assets are of a regular nature.

· current assets for which it is planned to develop a standard are significant (the share of which in the total amount of current assets is more than 5-10%) and homogeneous in composition. For example, rationing an item such as “Other accounts receivable,” which is heterogeneous in composition, is quite labor-intensive and can be assessed as economically unjustified.

· the company can manage this type of current asset. Often, part of the accounts receivable is beyond the control of the company’s financial director.

The system for managing current assets at an enterprise must be comprehensive, so each element of current assets is subject to regulation. But you should still start with the most problematic elements of existing current assets.

In order to avoid such problems, it is necessary to perform the following steps sequentially:

1. Construction of an operating cycle model. The operating cycle is the period during which funds are diverted from the turnover of the enterprise. It begins from the moment advances are issued to suppliers and ends on the date of receipt of funds for products sold on deferred payment terms. In order to determine the duration of the operating cycle, you will need to establish the average execution time of the following business processes:

· transportation of goods from the supplier, acceptance, quality control, storage, production, registration of transport documents, transportation of goods to the final buyer - inventory cycle;

· prepayment, deferred payment, collection, banking operations related to the transfer of funds from buyer to seller, settlement cycle.

Working capital standards will depend on the execution time of the listed business processes.

2. Development of internal regulations on standardization. This document represents methodological recommendations on standardization of working capital, which contains standards defined for various current assets of the company, methods for their calculation and the data sources necessary for this and a list of those responsible for compliance with standards.

3. Testing the developed standardization model. Testing is necessary to understand whether it allows existing system management accounting, obtain the data necessary for standardization, estimate the labor intensity of work associated with this process.

4. Correction of the developed methodology. After testing has been carried out, it is necessary to take into account the comments of users of the standardization system and adjust the standardization provisions. Changes may concern developed standards, approaches to calculation, principles for obtaining data, etc.

5. Automation. Using Excel to calculate and control standards is extremely labor-intensive, so it is necessary to automate these processes using specialized software. This can be either a separate software product or additional module ERP systems.

In conclusion, it should be noted that typical mistakes, allowed during the implementation of the standardization system, are the incorrect distribution of responsibility for compliance with adopted standards and the absence of a bonus system. The most common scheme for distributing responsibility for compliance with accepted standards can be presented as follows. For fulfilling the standard:

· The head of the sales department is responsible for the inventory of goods in the warehouse;

· The sales manager is responsible for accounts receivable.

Once responsibility has been distributed among company officials, an incentive system is created to ensure compliance with regulations. One option is a mechanism where employees are paid a fixed amount of remuneration if the deviation of the actual value of current assets (for example, goods in a warehouse) from the standard value is within the established percentage.

The greatest difficulties in implementing a rationing system arise with employees who previously used funds uncontrollably. Thus, purchasing managers used to be able to keep a surplus of goods in the warehouse just in case. A similar situation was in the sales departments: in order to fulfill the sales plan, it was possible to “forgive” the client’s delays and not demand immediate repayment of the debt. To prevent such problems, it is necessary to identify those responsible, motivate them to achieve established standards and monitor implementation.

Introducing standards for inventories at the enterprise

The working capital standard in market conditions represents the enterprise's need for working capital necessary to create optimal inventories.

The standard of own working capital for materials is determined as the product of the cost of one-day consumption and the standard of working capital in days. The average working capital norm for materials in days is calculated in general as a weighted average of the working capital stock norms for individual types of materials.

The standard of reserves of material resources Add is determined in days by the sum of the following standards:

Add = Dt + Dp + Dtek + Dstr

where Dt is the travel time of material resources paid for by the enterprise (transport stock), days;

DP - time for unloading, delivery of materials to the enterprise’s warehouses, acceptance and storage, as well as the time for preparing materials for production (preparatory stock), days;

Dtek - time of presence of material resources in the current stock, days;

Dstr - time of presence of material resources in the safety stock, days.

The rate of working capital for the formation of the current stock depends on the frequency and uniformity of supplies of raw materials and basic materials.

The average interval between deliveries is determined based on actual receipts according to warehouse records for the reporting year. Moreover, if two or more receipts of the same type of raw materials from one or more suppliers coincide on the same day, they are taken into account in calculating the interval in the total amount as one delivery.

Small random batches are not taken into account in calculating the average interval. These include batches received from warehouses of supply and distribution organizations, in cases where this type of material is received as a transit supply.

For raw materials and materials (pipes and ferroalloys) arriving periodically at approximately equal intervals and in batches, the average interval is determined by dividing the number of days in the quarter (90) by the actual number of deliveries (Table 7).

Table 3.1 - Calculation of the average interval between deliveries of pipes and ferroalloys to determine working capital for the formation of the current stock.

Pipe			Ferroalloys
Date of receipt of material	Supply volume	Number of deliveries	Date of receipt of material	Supply volume	Number of deliveries
15.01.10	1767	1	30.01.10	295	1
27.01.10	1798	1	17.02.10	299	1
10.02.10	1445	1	15.03.10	411	1
28.02.10	1451	1	29.03.10	452	0,5
12.03.10	1055	1
29.03.10	1440	0,5
TOTAL:	9286	6,5	1457	3,5

1. Average interval per quarter (pipe) = 90/ 6.5 = 14 days;

Working capital ratio = 14/2 = 7.

2. Average interval per quarter (ferroalloys) = 90/ 3.5 = 26 days;

Working capital ratio = 26 / 2 = 13.

The rate of working capital for the formation of current stock for each type of raw material, basic materials and purchased materials is taken at the rate of 50% of the average interval between deliveries. This is because the current stock of each material changes from its maximum size when the next delivery is received to its minimum size before the next delivery. In addition, for some types of raw materials and supplies, maximum current reserves may be formed, while for others, minimum ones.

Similarly, we calculated the norm for the current stock for auxiliary materials. It was 30 days. For cast iron (semi-finished products), deliveries occur daily, therefore the current stock norm is equal to one day.

The creation of a safety stock is aimed at ensuring the normal operation of the enterprise in cases of possible supply interruptions caused by deviations in the frequency and quantities of supplies.

The safety stock should not take into account the reserve in case of natural disasters, major accidents, excess consumption of raw materials and materials due to defects in production and increased waste, damage to raw materials and materials due to unsatisfactory storage, as well as a reserve for exceeding the plan.

The rate of working capital for the formation of safety stock is calculated for all types of raw materials for which the current stock was calculated.

Determine the size of the safety stock in days; 50% of the current stock is set.

OJSC Gomelgazstroy carries out some supply of materials from the Belarusian metallurgical plant. The calculation of working capital norms in days for materials is given below

Table 3.2 Calculation of working capital standards for materials and semi-finished products

Since the share of ferroalloys, pipes and auxiliary materials in production is only 13%, we will combine these materials into one group and calculate the weighted average rate of working capital for them as a whole using the formula:

(24 days*4t+17 days*25t+49 days*1t)/(4t+25t+1t)=19 days

Thus, the standard:

for semi-finished products amounted to 4 days * 334.5 thousand. rub. = 1338 thousand rubles;

according to materials amounted to -19 days * 674.8 thousand rubles. = 12,821.2 thousand rubles.

To calculate the standard of own working capital for work in progress, it is necessary to determine the standard of working capital for the production of marketable products. The rate of working capital is determined based on the duration of the production cycle and the rate of increase in costs.

The duration of the production cycle includes:

a) the direct processing process (technological stock);

b) keeping processed products at work places (transport stock);

c) the presence of processed products between individual operations and individual workshops due to differences in the rhythms of equipment operation (working stock);

d) the presence of products during mass production in the form of a reserve in case of interruptions (safety stock).

Table 3.3- Calculation of production cycle duration

The average production cycle time will be:

2*0.069+25*0.276+1*0.008+18*0.123+2*0.078+23*0.445=19.7 days.

To determine the rate of working capital for work in progress, in addition to data on the duration of the production cycle, it is necessary to know the degree of readiness of the products. It is reflected by the so-called cost increase coefficient, which is determined by the formula:

K(n) = (+ 0.5)/(+)

where K(n) is the cost increase coefficient;

Costs incurred one-time at the beginning of the production process (materials, process fuel);

Subsequent costs until the end of production of products (wages, social security/insurance).

Costs for the half-year amounted to 601,580.4 thousand rubles, including one-time costs of 332,726.5 thousand rubles, then the cost increase coefficient is equal to:

(332726,5 + 0,5*268853,9)/601580,4 = 0,77

The rate of working capital for work in progress, defined as the product of the average duration of the production cycle in days and the cost increase coefficient, will be:

n = 19.7 * 0.76 = 15 days.

The working capital standard for work in progress is defined as the product of the cost of one-day expenses according to the cost estimate for the production of marketable products and the working capital standard:

Nnp = 2,705.1 thousand rubles. * 15 days = 40,576.5 thousand rubles.

The working capital standard for finished products is determined as the product of the one-day turnover of marketable products at production cost and the working capital standard. The latter is set depending on the time required for selection individual species and brands of products, for completing batches of shipped products, for packaging and transportation of products from the warehouse of supplier enterprises to the departure station, as well as the time of loading.

Ngp = 1523.2 thousand rubles * 7 days = 10 662.4 thousand rubles.

Conclusion

In the process of completing the course work, we found out that working capital is one of the components of the enterprise’s property. Their effective use is an important condition for the successful operation of an enterprise. Therefore, it is necessary to analyze the current assets of the enterprise, the purpose of which is to improve the efficiency of working capital management. The purpose of management, in turn, is to determine the volume, structure, and sources of covering working capital. The risks caused by insufficient analysis of the structure and volume of working capital are also considered. These risks are:

1. Insufficiency of goods - the risk of additional costs or interruption of the enterprise.

2. Inadequacy of own credit capabilities - risk of loss of liquidity.

3. Insufficient funds. - the risk of interruption of the production process, failure to fulfill obligations, loss of additional profit.

4. Excessive volume of working capital. - the risk of increasing financing costs and reducing income.

Sources of information for analyzing current assets are also identified. Such sources are mainly financial reporting forms Form No. 1, Form No. 2, Form No. 5. Data from Form No. 2 are used to calculate some business activity ratios.

Chapter 2 examines the composition of current assets of the enterprise OJSC Gomelgazstroy, which is understood as a set of elements that form current assets. Based on the data obtained in the calculations for the course work, we can say that the current assets of OJSC Gomelgazstroy, compared with the beginning of the reporting period, decreased by 365.5 million rubles for the period from 2007 to 2009. Judging by the data in the table, we conclude that the greatest value belongs to the item “inventories”, which increased by 628.5 million rubles. Accounts receivable, in turn, decreased due to a decrease in short-term debt. The increase in cash during the reporting period was insignificant.

The next step in completing the work was the calculation of the coefficients necessary for the analysis of the current assets of the enterprise. There is an increase in accounts receivable turnover, which reflects an improvement in the payment discipline of customers. The following can be said about the cash turnover ratio: the average cash turnover period has decreased, and the turnover has increased, and this in turn shows that Gomelgazstroy OJSC effectively manages highly liquid assets.

When calculating the impact of changes in turnover ratios, current assets are saved by accelerating turnover.

As a result, we can assume that for the effective operation of an enterprise, it is advisable to normalize items of current assets in respect of which the conditions given in the text of Chapter 3 of this course work are met. It is also necessary to automate all processes and motivate staff to complete assigned tasks.

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One of the factors for improving the financial position of an enterprise is the acceleration of turnover of working capital.

The task of analyzing the turnover of working capital is to identify ways to accelerate their turnover in order to release the largest amount of working capital.

To assess the efficiency of using working capital, the following indicators are used:

1. Working capital turnover ratio, characterizing the number of turnovers made by working capital during the reporting period:

where is revenue from product sales minus VAT and excise tax, thousand rubles.

Average cost of working capital for the year, thousand rubles.

2. Working capital consolidation coefficient, that is, the amount of working capital per 1 ruble of products sold:

3. Duration of one turnover of funds, in days, that is, the time during which working capital goes through all stages of one turnover:

where is the number of days in the reporting period.

The volume of products sold is determined on the basis of Form No. 2 “Report on Financial Results”. The cost of working capital is taken according to Form No. 1 “Balance Sheet”. The average cost of working capital for the year is calculated as the sum of working capital at the beginning of the year and the end of the year divided by two.

During the analysis, the reported indicators of working capital turnover are compared with the indicators for the previous period.

The amount of released (-) or additionally involved (+) working capital due to acceleration or deceleration of their turnover is calculated by the formula:

where is the duration of one revolution in days in the previous and reporting year; - actual sales volume in the reporting year; - number of days in the reporting year; - one-day turnover in the reporting period.

Accelerating the turnover of working capital allows either, with the same amount of working capital, to increase the volume of production, or, with the same volume of production, to free up part of the working capital (Table 27).

The working capital turnover ratio decreased from 3.62 to 2.67. This means that working capital began to make fewer turnovers during the reporting period compared to the previous year. Along with this, there has been a reduction in the time during which working capital passes through all stages of one circuit. In the previous year, the speed of one turnover was 100 days, and in the reporting year this duration (speed) of turnover increased to 135 days. Thus, the turnover rate of working capital decreased by 35 days, which may indicate a deterioration in the financial condition of the enterprise. One-day turnover for sales of products (works, services) also decreased from 11,936 thousand rubles. up to 10043 thousand rubles. This fact entailed the release of the company's working capital.

Table 27

Calculation of efficiency indicators for the use of working capital

Indicators	Previous	Reporting	Change

Revenue from sales of goods excluding VAT and excise taxes
Working capital, thousand rubles at the beginning of the year
at the end of the report. period
Average cost of working capital funds, thousand rubles
Turnover ratio working capital
Duration (speed) one revolution, days
Consolidation factor working capital
One-day turnover sales of products (works, services), thousand rubles.
Amount released (-), additionally involved (+) working capital, thousand rubles

General assessment of the enterprise's asset turnover

The financial position of an enterprise, its liquidity and solvency indicators directly depend on how quickly funds invested in current assets turn into real money.

The speed of funds turnover is related to:

· minimally the required amount of advanced (involved) capital and related cash payments (interest for using bank loans, dividends on shares, etc.);
· the need for additional sources of financing (and payment for them);
· the amount of costs associated with the ownership of inventory items and their storage;
· amount of taxes paid, etc.

Certain types of enterprise assets have different turnover rates.

The duration of funds in circulation is determined by the combined influence of a number of multidirectional external and internal factors. The first should include the field of activity of the enterprise (production, supply and sales, intermediary, etc.), industry affiliation (there is no doubt that the turnover of working capital at a machine tool plant and a confectionery factory will be objectively different) the scale of the enterprise (in most cases, the turnover of funds in small enterprises is much higher than in large ones - this is one of the main advantages of small businesses) and a number of others. The economic situation in the country and the associated operating conditions of enterprises have no less impact on asset turnover. Thus, inflationary processes and the lack of established economic relations with suppliers and buyers in most enterprises lead to the forced accumulation of inventories, which significantly slows down the process of funds turnover.

However, it should be emphasized that the period during which funds are in circulation is largely determined by the internal conditions of the enterprise, and primarily by the effectiveness of its asset management strategy (or lack thereof). Indeed, depending on the application pricing policy, structure of assets, methods of assessing inventory, the enterprise has more or less freedom to influence the duration of the turnover of its funds.

It should be borne in mind that the value of the turnover ratio of current assets is directly influenced by the methodology adopted at the enterprise for their assessment and, based on the tasks at hand and the chosen asset management strategy, the enterprise has a certain ability to regulate the value of the turnover ratio of its assets.

IN general case the turnover of funds invested in property can be assessed by the following main indicators: turnover rate (the number of turnovers that the capital of the enterprise or its components make during the analyzed period) and the turnover period - the average period for which they return to the farm, invested in production and commercial operations cash.

The turnover rate of an enterprise’s assets is usually calculated using the formula:

The duration of one revolution (Before) is determined by the formula:

Where Co - working capital balances for the period;

Tper - number of days in the period;

Vreal is the amount of products sold.

The turnover ratio shows the number of revolutions made during a certain period. It is determined by the formula:

Coefficient OS loading characterizes the amount of OS per 1 ruble. products sold:

IN As a result of the acceleration of turnover (the intensity of use of fixed assets), a certain amount of fixed assets is released.

Absolute release occurs when

Where Co.fact - actual balances of the operating system;

Co.plan -- planned remnants of the operating system;

Vreal is the volume of sales. The absolute release is determined by the formula

The shorter the duration of one revolution, the more revolutions the working capital will make. By accelerating the turnover of working capital, the need for them is reduced and a reserve is created to increase production output.

To speed up the turnover of working capital, it is necessary to reduce the time they spend both in the sphere of production and in the sphere of circulation. To do this, it is necessary to reduce the processing and assembly time of products through mechanization and automation of the production process; improve the use of new technology; speed up control and transportation of products during processing; reduce stocks of materials, fuel, packaging, work in progress to the established standard; ensure the rhythmic operation of all production areas and workshops of the enterprise, timely delivery of materials to the enterprise and workplaces; speed up the shipment of finished products; timely and quickly make payments to consumers; improve product quality, prevent the return of finished products from consumers, etc.

Return on working capital

Particular attention should be paid to the efficiency of the use of working capital, since the rational use of working capital affects the main indicators of the economic activity of an industrial enterprise: an increase in production volume, a reduction in production costs, and an increase in the profitability of the enterprise. Analysis of the efficiency of using working capital should help identify additional reserves and help improve the basic economic indicators of the enterprise.

One of the criteria for the efficiency of using working capital is the amount of working capital, which depends on:

· turnover current assets (with what frequency the funds invested in operational activities are returned to the enterprise);
· working capital structure (what part of current assets is financed from own funds and how resources are distributed in the operating cycle).

The most important synthetic indicator of the use of working capital is the return on assets (property) ratio. This ratio shows how much profit the company receives from each ruble invested in assets.

For analytical purposes, both the profitability of the entire set of assets and the profitability of current assets are calculated. This indicator provides a comprehensive assessment of the efficiency of using working capital.

The indicator can be presented as a product of two other indicators: return on sales and turnover of current assets (Fig. 5).

Rice. 5. Return on current assets

Acceleration turnover of working capital depends on the time they spend at various stages of the circulation, reducing its duration. It is achieved by increasing production and sales of products, more complete and rational use of material resources, and reducing the technological cycle time. Turnover is affected by usage the latest achievements scientific and technological progress.

Coursework analysis of the efficiency of using working capital of an enterprise. Analysis of working capital Analysis of the use of working capital of organizations

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Theoretical foundations of managing current assets of an enterprise, their concept. Indicators of efficiency of asset use, methods of their analysis. Analysis of the formation and use of working capital of the enterprise, proposals for increasing their efficiency.

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Introduction

The problem of effective management of enterprises includes best use their funds, and first of all - working capital. The presence of sufficient working capital at the enterprise is a necessary prerequisite for its normal functioning in a market economy.

The main place in working capital is occupied by funds advanced into inventory assets. These include goods, inventories and other inventory items. Inventory includes raw materials, basic materials and purchased semi-finished products, low-value and high-wear items.

Other inventory items include the cost of containers, fuel, materials for household needs, and packaging materials.

2.2 Composition and structure of working capital of OJSC Gomelgazstroy

2.3 Analysis of accounts receivable

2.4 Analysis of the efficiency of using working capital