Typical example 3. WORKING CAPITAL

Problem 1

Determine and analyze the structure of working capital of enterprises using the following data:

Elements of working capital	Amount, million rubles
	Enterprise 1	Enterprise 2
Productive reserves
Unfinished production
Future expenses
Finished products

Solution

The structure of working capital represents the share of each element in the total amount. Let us determine the structure of working capital of both enterprises:

Elements working capital	Enterprise 1		Enterprise 2
		Structure, %	Amount, million rubles	Structure, %
Productive reserves
Unfinished production
Future expenses
Finished products

The calculated structures make it possible to conclude that the second enterprise is more material-intensive than the first. At the same time, the first enterprise has to invest heavily in future expenses. Most likely, these are the costs of preparation and development of production, which are determined by the specifics of the production process. A higher proportion of work in progress may indicate a longer production cycle or a higher cost of processed raw materials or materials. In combination with the large share of finished products, this allows us to make the assumption that the second enterprise is most likely one of those that produces products with a higher share of added value.

Problem 2

Calculate the average quarterly and average annual balances of working capital, as well as the turnover of working capital (duration of turnover) and the turnover ratio for the year, using the following data:

Working capital balances		Volume of products sold
	Amount, thousand rubles		Amount, thousand rubles

The turnover ratio is determined by the formula

K about = R / OS.

To calculate the duration of turnover in days, use the formula

BEFORE = D · ObS / R.

Therefore, first you need to calculate the average working capital balances for the year and the sales volume for the year:

OS = [(2 500 + 2 600) / 2 + (2 600 + 2 400) / 2 + (2 400 + 2 400) / 2 +

+ (2,400 + 2,500) / 2] / 4 = 2,475 thousand rubles,

R= 3,000 + 3,500 + 2,900 + 3,100 = 12,500 thousand rubles,

K about= 12,500 / 2,475 = 5 rev/year,

BEFORE= 360 · 2,475 / 12,500 = 71 days.

Thus, working capital made 5 revolutions per year, while the duration of one revolution averaged 71 days.

Problem 3

The average balance of working capital in 2002 was 15,885 thousand rubles, and the volume of products sold for the same year was 68,956 thousand rubles. In 2003, the duration of the turnover is planned to be reduced by 2 days.

Find the amount of working capital that the company needs, provided that the volume of products sold remains the same.

Solution

First, let's calculate the duration of turnover for 2002:

BEFORE= 360 · 15,885 / 68,956 = 82 days.

Then we determine the duration of turnover for 2003:

BEFORE= 82 – 2 = 80 days.

Taking into account the new duration, we will calculate the need for working capital:

80 days = 360 · OS/ 68 956,

OS= 15,323 thousand rubles.

Previous

Working capital, being constantly in motion, moves from the sphere of production to the sphere of circulation, completing a circuit. The working capital circulation scheme is the same for all types of production, including construction. The movement of the value of working capital can be presented in the following form:

D – P t – P – N p – G p – D,

where D – cash;

P t – objects of labor intended for production;

P – production;

N p – work in progress;

G p – finished products.

For each construction organization, it is important to determine the minimum required amount of working capital, which should be sufficient to carry out an uninterrupted construction process. A significant excess of working capital over the required minimum requirement leads to the transformation of unjustified stocks of materials and diverted funds for unproductive costs.

The working capital standard (N) for each basic material is determined by the formula:

N = R o x D,

where R o is the one-day consumption of basic materials according to the cost estimate for construction and installation work;

D – stock norm, days.

The amount of working capital for construction and installation work in progress can be calculated based on the amount of the planned balance of work in progress at the end of the quarter of the planned year in which it is the smallest:

NP p = NP n + O smr – GO p,

where NP n is the balance of work in progress for construction and installation works at the beginning of the corresponding quarter of the planned year;

About construction and installation work - the volume of construction and installation work for the corresponding quarter of the planned year;

GO p – commissioning of finished facilities in the corresponding quarter of the planned year.

The minimum requirement of working capital for future expenses can be determined by the formula:

N bp = Q smr x K bp,

where Q construction and installation work is the volume of construction and installation work in the planned year;

K bp is a coefficient that takes into account the share of future expenses in the volume of construction and installation work for the previous year.

Indicators of efficiency in the use of working capital.

The efficiency of using working capital is characterized by a system of economic indicators, the most important of which is their turnover rate.

Working capital turnover is characterized by the number of cycles of complete circulation of funds during a planned period of time. The acceleration of working capital turnover indicates an increase in the output and sale of finished products per ruble of working capital of a construction organization.

The degree of use of working capital can be determined using their turnover indicators:

turnover ratio over time:

K rev = V / OS,

where B is revenue from the delivery of work in an amount equal to the volume of construction and installation work at the contract price for a certain period of time;

OS is the average amount of working capital for the same period.

The turnover ratio shows the number of turnovers of working capital for a specific period of time or the volume of production per 1 ruble. working capital for the period of time under review;

average duration of one revolution for the accepted billing period:

D av = T r / K rev,

where T r – duration of the billing period, days;

K rev – turnover ratio.

The duration of turnover characterizes the time required for working capital to pass through all stages of the circulation, and shows how many days later working capital is returned to the organization in the form of revenue from the sale of work and services.

is an absolute indicator that is used to determine the liquidity of an enterprise. Essentially, this indicator determines how much the company's current assets are greater than its short-term debts. In foreign literature, own working capital is also called working capital of the enterprise(working capital, net working capital).

What is own working capital (SOC). Economic sense

Let us analyze the general economic meaning of the indicator. The enterprise's own working capital shows the solvency/liquidity of the enterprise. The indicator is used to assess the company's ability to pay off debts using its current assets.

Own working capital. Synonyms

Synonyms for the indicator own working capital:

• own working capital,
• working capital of the enterprise,
• working capital,
• net working capital (NWC),

Own working capital. Balance calculation formula

Formula for calculating own working capital:

Own working capital = Current assets – Short-term liabilities

What are current assets?

Current assets of the enterprise- this is the sum of working capital (raw materials, supplies, components, fuel) and circulation funds (finished products, shipped but not paid for goods), expressed in money.

Formula for calculating SOS according to the Order of the Federal Office of Insolvency (Bankruptcy) dated August 12, 1994 No. 31-r On Methodological provisions for assessing the financial condition of an organization and establishing an unsatisfactory balance sheet structure is as follows:

Own working capital = line 490 – line 190

In the new balance (after 2011), the formula will be as follows:

SOS = p.1200 – p.1500

In addition to the first formula, there is another way to calculate this indicator. The second formula for calculating own working capital on the balance sheet.

Own working capital = (Equity capital + Long-term liabilities) – Non-current assets = p. 1300 + p.1530 – p.1100

In my opinion, the first formula is simpler to calculate and more convenient than the first. I recommend using it in your calculations.

In English literature, this indicator according to IFRS will be calculated as follows:

SOS(working capital) = Current Assets – Current Liabilities

CA – current assets,
CL – short-term accounts payable.

The company's balance sheet is taken from the company's official website. To understand the dynamics of changes in the solvency of an enterprise, we will take 1 year for analysis. The reporting period is a quarter. One quarter in 2013 and three in 2014.

Calculation of the indicator of own working capital for OJSC “Uralkali”

Own working capital 2013-4 = 87928663-47938587 = 39990076
Own working capital 2014-1 = 132591299-35610079 = 96981220
Own working capital 2014-2 = 115581096-34360221 = 81220875
Own working capital 2014-3 = 132981010-19458581 = 113522429

All SOS values ​​are >0 and they also increase over time. This suggests that the solvency of OJSC Uralkali is growing.

Own working capital. Standard

Own working capital can be greater than zero, equal to or less than zero. As a rule, own working capital = 0 for new enterprises. If SOS >0, then this indicates that the financial condition (solvency) of the enterprise is normal, if<0, то предприятие финансово неблагополучно, т.к. у него не хватает денежных средств для покрытия долгов.

Summary

The article examined the indicator “own working capital”, which is one of the important indicators for assessing the solvency/liquidity of an enterprise. Do not confuse it with the working capital ratio, because these are completely different things. If own working capital is greater than zero, then this indicates the financial stability of the enterprise.

The company's working capital is in constant motion. Intuitively, the faster they turn, the less overall need there is for them.

What makes up the duration of turnover of working capital?

Its minimum duration is set by the duration of the production period, i.e. the time during which the manufactured product is in production: it is obvious that before the product is manufactured, the advanced funds will not be able to return to the entrepreneur. However, in reality, the duration of the turnover will be longer, since before they enter production, advanced funds in the form of raw materials, materials, semi-finished products, fuel, etc. will remain in the warehouse for some time, and after production is completed, will remain in the warehouse for some time in the form of finished products.

The duration of the turnover of working capital would be equal to the duration of the three indicated stages if both the purchase of raw materials and materials and the sale of finished products were carried out for cash (meaning without sales on credit). If an enterprise sells its products on credit, then it is forced to wait for the receipt of money for some time after the finished products have left the warehouse, i.e. The duration of turnover increases as the receivables are repaid.

But if the enterprise must make an advance payment for raw materials and other materials, then the duration of the turnover of its working capital will increase even more, since they will have to be advanced several days before the raw materials arrive at the enterprise.

How to determine the duration of a turnover?

You can try to determine it directly according to the scheme described above: we estimate the duration of each stage, and the total duration of the turnover is determined as the sum of the durations of all stages.

This method is sometimes used when determining the need for working capital for a newly designed enterprise, since in such cases other necessary information is often missing. When calculating for existing enterprises, this method is not used, since it gives very rough estimates.

Typically, the duration of turnover is defined as the time after which the funds advanced by him are returned to the entrepreneur, and this is done by comparing the advanced working capital and the revenue received for the products sold. This method is also not free from drawbacks. We will look at some of them later.

The turnover rate of working capital is characterized by the turnover ratio and the duration of one turnover in days.

The turnover ratio is calculated using the following formula:

where B is revenue from sales of the enterprise’s products, rubles; About average - the average value of working capital, rub.

Thus, the turnover ratio characterizes the number of revolutions made by each ruble invested in the working capital of the enterprise during the period under review.

As a rule, the amount of an enterprise's working capital is fixed at a certain date (beginning of the month, quarter, etc.). At the same time, it is clear that products produced over a period of time must be compared with working capital for the same period. That is why the formula includes the average amount of working capital for the same period for which revenue from product sales is taken.

The average value of working capital for a period in the simplest case is defined as half the sum of the values ​​of working capital at the beginning (Ob Beg) and the end (Ob End) of the period, i.e.

To increase accuracy, if possible, it is better to calculate working capital using a larger number of intermediate data (quarterly, monthly or even daily). For example, the annual average can be defined as the average value of working capital at the beginning and end of the year, or it can also take into account the values ​​at the beginning of the second, third and fourth quarters. In this case, the average annual value is determined by the so-called average chronological formula:

Let's return again to turnover indicators.

The duration of one revolution is determined by the formula

Where T- duration of the period, days.

In financial accounting and analysis, it is customary to take the duration of one month as 30 days, a quarter as 90 days, and a year as 360 days.

For effective management of working capital, it is important to know not only the duration of one turnover, but also its structure, i.e. the duration of turnover of each element of working capital. Typically, the following scheme is used for analysis.

As we have already found out, the working capital of an enterprise (OBC) at each point in time can be represented as the amount of money associated: in advances issued to suppliers (A); stocks of raw materials, materials, etc. (3); work in progress (WP); inventories of finished goods (FP); accounts receivable (Db); liquid funds necessary to service turnover (L).

Let’s write the formula for working capital turnover, using in the numerator not revenue, but cost of goods sold (Sb) (in principle, you can also use revenue, but it is believed that this will be more accurate):

Let us recall that the average value of working capital for the period is taken.

Now let's write a formula to determine the duration of one revolution (L). To do this, divide the duration of the period (T) by the turnover ratio.

Now let’s imagine the working capital of the enterprise as the sum of its component parts (taking each component as an average for the period):

In the resulting formula, each term characterizes the duration of turnover of the corresponding group of working capital. By observing these durations over time, it is possible to identify what is causing the negative change in the total duration, which element of working capital should be paid special attention to, where reduction reserves are laid, etc. The same result will allow us to identify the comparative effectiveness of accelerating the turnover of each element of working capital, for example, by one day.

It should be noted that these formulas have one very big drawback: in reality, the above indicators (at least some of them) are not at all what they say they are, or rather, who we take them to be. The point is that some of the results obtained are quite difficult to interpret economically.

Let's consider such a conditional problem. Suppose Someone bought 100 thousand rubles at the beginning of the quarter. materials, rented premises with equipment, hired workers, evenly processed all the materials during the quarter, produced a certain amount of products, spending only 450 thousand rubles on it, and on the last day of the quarter sold the products wholesale for 500 thousand rubles. and at this point he ceased his activities.

How many turnovers did the money invested in the purchase of materials make, and how many days on average was each unit of material in the warehouse? From the logic of the problem it follows that all costs, including costs for materials, made one revolution, since there were no second and subsequent revolutions, and each unit of material was in the warehouse for an average of half a quarter, i.e. 45 days

Let us now try to determine the number of revolutions using the formula, taking into account that the average balance of material in the warehouse for the quarter was

Then the inventory turnover ratio will be equal to

and the duration of one revolution

As already noted, the economic meaning of one turnover of material inventories can be interpreted as the time during which, on average, materials lie in the warehouse. In this sense, the result obtained above cannot be interpreted at all, since the material was in the warehouse not for 9 days, but much longer.

The use of costs instead of revenue in calculating material turnover does not help the situation. Using 450 thousand instead of 500 thousand in the calculation, we get a turnover ratio of 9, and the duration of one revolution is 10 days.

Therefore, the turnover indicators of individual elements of working capital - they are called private turnover indicators - are calculated using slightly different formulas. In these formulas, instead of revenue for products sold, an indicator is used that characterizes turnover (consumption or output) for the element for which turnover is calculated. In other words, in the proceeds from the sale of products it is necessary to compare with the element in question only that part of it in the formation of which this element was directly involved.

Thus, the material costs of the enterprise (without depreciation) must be compared with the reserves of raw materials, supplies, and fuel, since the material costs were formed by transferring the cost of these reserves to the finished product. Therefore, if a certain enterprise has an average annual stock of raw materials, fuel, materials in the warehouse, etc. amounted to 500 thousand rubles, and material costs for manufactured products (without depreciation) - 3 million rubles, this really means that working capital in materials turned over six times in a year (3 million / 500 thousand), the duration of one turnover is equal to 60 days, or, what is the same, each unit of stock in the warehouse lay on average for 60 days.

It is necessary to compare the cost of production with work in progress; with stocks of finished products - shipment of products at cost (since finished products in the warehouse are accounted for at cost); with accounts receivable - the volume of products sold.

Although the turnover of accounts payable is not related to the turnover of working capital, the approach to determining the rate of turnover of accounts payable is the same. And this indicator itself is of great practical importance.

Let us return once again to the previous conditional example: its further analysis will allow us to better understand the meaning of turnover indicators.

Suppose that at the beginning of his activity Someone advanced all the money necessary to produce the planned products.

Since the total cost amounted to 450 thousand rubles, then, therefore, this amount was advanced. At the initial moment for 100 thousand rubles. materials were purchased from it, and the rest of the money was in the current account. In this case, what are the indicators of turnover of working capital and the duration of one turnover?

The initial value of working capital is 450 thousand rubles. (in the material stock and on the current account), the final one is also 450 thousand rubles. (in the stock of finished products), therefore, the average value of working capital is also 450 thousand rubles. If we determine the turnover ratio of working capital through the cost of manufactured products, then it will be equal to 1, and the duration of one turnover will be 90 days, which fully corresponds to our ideas about the nature of the process.

If we determine the turnover ratio through revenue, we will be faced with the fact that the turnover ratio will no longer be equal to 1:

and the duration of the turnover will be less than 90 days. Moreover, if we manage to sell products at a higher price, for example for 675 thousand rubles, then the turnover ratio will be equal to 1.5, and if for 900 thousand rubles, then 2.

This happened because profit intervened in the calculation. Profit is created in the production process and is not transferred by working capital. The amount of profit received per turnover does not affect the rate of turnover, so including it in the calculation distorts the results obtained.

Let's return to our example. Let us now assume that the necessary funds were invested in the event in question in two steps: 200 thousand rubles. at the beginning and 250 thousand rubles. in the middle of the period.

Let's determine the average amount of working capital for the period: in the first half of the period they were equal to 200 thousand rubles, in the second - 450 thousand, and on average 325 thousand rubles. Now let’s find the turnover ratio and the duration of one revolution:

At first glance, another unexpected result, since, let me remind you, we had only one production cycle and it lasted 90 days.

Let's look into the current situation. It can be presented as follows: the first 200 thousand rubles. turned around in 90 days, the second 250 thousand rubles. - within 45 days. And on average we get:

In other words, 65 days. The duration of one turnover is interpreted quite simply: part of the money was in circulation for 90 days, the other part for 45 days, and on average it was 65 days.

The 1.38 revolutions per production cycle is more difficult to interpret. In fact, both components of the capital made one turnover, but they made it in different times and at different speeds: 200 thousand rubles. turned around once in 90 days, and 250 thousand rubles. also once, but within 45 days. It’s easy to calculate that 200 thousand rubles. the turnover ratio is 1, and for 250 thousand rubles. - 2. But this does not mean at all that 250 thousand rubles. actually made two revolutions.

Since the working capital of an enterprise always consists of parts circulating at different times and at different speeds, the turnover ratio should be understood as the weighted average turnover rate of the various components of the advanced capital, and the duration of one turnover - as the weighted average of the durations of their turnovers.

Let us now turn to the partial turnover ratios, which characterize the turnover of individual components of working capital. First, let's calculate the inventory turnover ratio. As has already been determined, the average stock of materials is 50 thousand rubles, material costs for the period are 100 thousand rubles, hence the inventory turnover ratio is 2, and the duration of one turnover is 45 days. We will get exactly the same result if we try to calculate the indicators of finished goods inventory turnover: they will also be 2 and 45 days. But we are sure that there was only one revolution. More surprises!

In order to explain them, it is important to understand that, using the above formulas, we calculate the turnover of capital tied up in reserve rather than advanced capital. In the example under consideration, the average capital tied up in reserve is indeed 2 times less than the advanced capital (at the beginning 100, and at the end 0, on average 50), therefore the speed of its turnover is 2 times higher, and the duration of one revolution is 2 times less. But at the same time, the duration of the turnover of average associated capital is interpreted differently from that of advanced capital.

The duration of the turnover of capital advanced to the reserve can be understood as the time during which this stock will be in stock, those. will be completely used up. In this example, it is 90 days, and the turnover ratio of the advanced capital is 1 (100 / 100).

The duration of the turnover of capital tied up in a stock can be understood as the time during which on average, each unit of inventory will be in the warehouse. Since part of the stock will be used up on the first day, and part will lie until the very last, 90th day, then in general it will turn out that each unit will remain in the warehouse for 45 days on average.

These circumstances must be taken into account when calculations require moving from the frequency of capital advances to the period of its commitment, and vice versa. For example, move from the delivery interval to the warehouse to the average storage period. With a uniform increase (or decrease) of the stock, this problem is solved by dividing or multiplying by 2; in other cases it is more complicated. We will look at one of these options below.

The question may arise why these problems did not appear when we considered the turnover of all working capital, but began when we moved on to private turnover indicators. In fact, they occur there too, but are less acute.

Let's return again to the original version, when the entrepreneur immediately advances 450 thousand rubles. In this case, we get a turnover ratio of 1, and the duration of the turnover is 90 days, i.e. indicators of turnover of advanced capital. Why? In fact, we obtained indicators of average tied capital. It’s just that in this case the advanced one coincided with the average one: being advanced, it gradually, through the supply of material and processing, passed into the form of finished products, but at the same time it remained equal to 450 thousand rubles all the time.

This, in fact, is the main difference between the study of the turnover of working capital as a whole and the turnover of its individual components: working capital changes its shape in the process of circulation, but at the same time, as a rule, its size changes insignificantly, so the average associated working capital is always approximately equal advanced (an exception to this rule are industries with pronounced seasonality, but there turnover indicators should be calculated differently). The size of the individual components regularly changes over a wide range, and therefore here the advanced funds are almost never equal to the average associated ones.

To complete the presentation, it remains to find out what turnover indicators in the example under consideration will be given by the usual scheme based on the use of cost.

Let's consider the same example. Let 450 thousand rubles be advanced at once. For 100 thousand rubles. The material was immediately purchased, and the rest are on the current account, spent on processing as necessary. Processing occurs instantly, after which the finished products are sent to the warehouse, where they remain until the end of the quarter. Then we have:

Thus, the total period of turnover of working capital is 90 days. - breaks down as follows: 10 days. - inventory turnover; 35 days - cash turnover; 45 days - finished product inventory turnover.

These results should be understood as follows. Out of 90 days quarter 10 days the enterprise worked to “justify” the costs of the material (the cost of products produced in 10 days is exactly equal to the cost of the material), for the next 35 days. “worked off” the advanced funds. Finally, the last 45 days. "worked for a warehouse."

If you look a little more closely at the mechanism of action of this formula, it is easy to see that it divides the total duration of turnover of working capital between the turnover of individual components in proportion to the size of each part: if, as in this example, the average size of inventories is 1/9 of the average value of working capital funds, then the duration of their turnover is equal to 1/9 of the duration of turnover of all current assets. In this case, all revolutions are performed strictly sequentially, since if we assume that the revolutions of some parts occur in parallel, then the sum of the partial durations will not give the total. It is clear that in reality the rule is just the opposite situation: all components of working capital turn around in parallel, so the above interpretation is a serious simplification.

In conclusion, we note that private turnover indicators can also be calculated for individual divisions of the enterprise. It is only important that the above rule is followed: the indicator in the formation of which they directly participated is compared with the working capital of the division.

Let us pay attention to the fact that the sum of the turnover time according to particular indicators, unfortunately, does not coincide with the turnover time of all working capital.

The company's assets are the value expression of the resources that support the production process. The company's property complex includes non-current assets (administrative and production buildings, equipment, machines, vehicles), as well as working capital, the structure of which includes such types of property as:

Money in cash and in bank accounts;

Inventories - inventory, raw materials, manufactured products, goods for sale and other materials;

Debts from debtors for services/goods supplied but not yet paid for;

Short-term financial investments and other assets.

All current assets are accumulated in the second section of the balance sheet and are considered as current assets, that is, participating in turnover.

The article will discuss such a concept as the average annual cost of working capital. Let's find out how this indicator is calculated and what it means.

Working capital on the balance sheet

As already noted, in the balance sheet hierarchy, current assets are collected in the second section of the BO-1 report. Each type of property has a separate line:

▪ 1210 - MPZ;

▪ 1220 - VAT on acquired property;

▪ 1230 - obligations of debtors;

▪ 1240 - Fin. attachments;

▪ 1250 - cash, cash equivalents;

▪ 1260 - others.

The total final cost of working capital is recorded in line 1200 of the balance sheet. It accumulates the absolute value of cash balances in the company for each position at the beginning of a given analyzed period and its end. In accounting, the value of assets on the balance sheet is called book value.

Book value of property

Economists analyze book value based on research objectives. For example, when it is necessary to find out the size of the balance of property as a whole for a section or for each position separately, determine the dynamics (growth or decrease in the value of assets) and, based on a comparison of absolute indicators, draw conclusions about the state of working capital on a certain date. In addition to internal users of the information available in financial statements, companies are required to inform various external users - founders, creditors, insurers, investors, providing them with various information, including the availability of assets.

Where is the book value used?

Information on the book value of assets is very necessary when analyzing the business activities of a company - the main tool in assessing the production and financial condition of the company. Using this indicator, intra-company coefficients are calculated:

▪ return on assets, which determines the amount of profit received for each ruble invested in the purchase of raw materials and production;

▪ asset turnover, indicating the efficiency of their use.

By comparing the initial and final values ​​that determine the value, the economist can draw conclusions about the growth or decrease in the amount of current assets in monetary terms for a given period, determine the relative values ​​characterizing the growth rate of indicators for each line of the second section of the balance sheet. However, the figures only provide information about the availability of property on a certain date, not always reflecting the real picture, since in the life of an enterprise the intensity of work is not the same, and this leads to uneven purchases and consumption of working capital, for example, in companies that depend on seasonality cycles.

It is more expedient to analyze the state of assets over short periods of time or calculate an indicator such as the average annual cost of working capital. The value of this indicator is calculated to make many economic calculations.

Why is the average annual cost of working capital calculated?

A detailed analysis of changes in the structure and composition of property, including working capital, is impossible without calculating the average value of property for the year. How is the average annual cost of working capital calculated? Analysts turn to balance sheet line 1200, and if it is necessary to calculate any one type of property, for example inventory, to the line corresponding to this position. The calculation formula is:

O av = (O n + O k) / 2,

where O n - the amount of working capital at the beginning of the analyzed period, O k - at the end of the period, 2 - the number of reporting dates.

Calculation example

Let's look at an example of how the average annual cost of working capital is calculated (balance sheet formula). The initial data is presented in the table of balance sheet values ​​of working capital.

Let's calculate the value using the above formula based on balance data:

About av = (8411 + 9300) / 2 = 8856 thousand rubles. - the average current assets for the year (line 1200 in the balance sheet) amounted to 8856 thousand rubles.

Using the same calculation algorithm, the average annual cost of working capital (thousand rubles) is calculated by position:

▪ inventories (line 1210) - O av = (5200 + 5450) / 2 = 5325 thousand rubles;

▪ VAT on purchased materials - O av = (242 + 210) / 2 = 226 thousand rubles;

▪ accounts receivable - O av = (510 + 620) / 2 = 565 thousand rubles;

▪ cash - O av = (2460 + 3020) / 2 = 2740 thousand rubles.

The average annual cost of working capital, the calculation formula for which is presented in the review, is used by economists to calculate coefficients demonstrating the financial condition of the company, the level of stability, as well as determining the reasons (positive and negative) that led to changes. Based on the analysts' findings, the company's management makes decisions on the further management of available resources.

Formula for calculating the average chronological

A type of arithmetic average, which includes value, is the chronological average, calculated from the totality of values ​​at different moments or for different periods of time.

In mathematics, it is used to find the average level in time series. In accounting, the chronological average characterizes in more detail the value of an individual asset at equal intervals of time. The calculation formula is:

О ср/хр = (½ x О 1 + О 2 + О 3 + ….+ О n -1 x ½) / n-1, where

O - balance as of a certain date, n - number of reporting dates.

Calculation of the average chronological

Returning to the example presented above, let’s supplement the initial data on the cost of inventory at the beginning of each month:

Let's calculate the average chronological average for the oil reserves quarterly for 2016:

1 sq. O avg/hr = (1/2 x 5200 + 4960 + 5460 + ½ x 5530) / 4-1 = 5261.66 thousand rubles;

2 sq. О avg/hr = (1/2 x 5530+ 5360 + 4980 + ½ x 4890) / 4-1 = 5183.33 thousand rubles;

3 sq. O avg/hr = (1/2 x 4890 + 4780 + 4980 + ½ x 5180) / 4-1 = 4931.66 thousand rubles;

4 sq. O av/hr = (1/2 x 5180 + 5450 + 5550 + ½ x 5450) / 4-1 = 5438.33 thousand rubles;

Thus, the average amount of inventories for the 1st quarter is 5261.66 thousand rubles, for the 2nd - 5183.33 thousand rubles, for the 3rd - 4931.66 thousand rubles, for the 4th - 5438 .33 thousand rub. By analyzing the resulting numerical series, the economist can draw a conclusion about the availability of reserves in each quarter and establish the dynamics of changes depending on the company’s activities or industry affiliation. By calculating the average chronological value, the values ​​of the indicators are undoubtedly more accurate. These values, used in economic calculations, provide the most realistic figures. This is important primarily for internal users - company management. External users are quite satisfied with absolute indicators of the book value of assets.

Calculation of turnover ratio

A general indicator of the use of working capital in a company is the turnover ratio, defined as the ratio of turnover (revenue) to the average cost of working capital for the year:

To r/p = B: About avg, where B is revenue, About avg is the average annual cost of working capital. The formula demonstrates the number of completed turnovers of the average balance of funds invested in current assets during the production process.
Using the above example and supplementing it with information from the Profit and Loss Statement on the amount of revenue (326,000 thousand rubles), we calculate the turnover ratio:

K rev = 326,000 / 8856 = 36.8 times, i.e., over the course of a year, the funds invested in production in the amount of the average balance turn over 36.8 times.

In addition, turnover is calculated in days, i.e., they find out how many days the company will receive revenue equal to the average annual cost of working capital. The calculation is carried out according to the formula:

K rpm = 365 / K rpm.

K rpm = 365 / 36.8 = 9.92 days will be required for the company to receive revenue in the amount of the average cost of working capital for the year.

Normal value of coefficients

There are no general standard values ​​for turnover values.

Ratios are usually analyzed over time or in comparison with similar industry companies. We only note that a very low ratio indicates excessively accumulated working capital assets, which should intensify efforts to increase the liquidity of assets.