The turnover ratio of current assets has increased. Working capital turnover indicators

In conditions market economy the stability of the company's position is largely due to its activity in work, which depends on effective use resources, breadth of markets, economic sustainability.

IN financial aspect The company’s activity is manifested by the rate of turnover of its funds, which can be analyzed by the turnover ratio working capital and other indicators.

The importance of indicators characterizing the turnover of funds is explained by the fact that they show the profitability of the company.

The coefficient (resource productivity) allows you to see the turnover rate of the entire capital of the company in the aggregate. It shows how many times it is carried out full cycle circulation and production for the period under consideration or how many monetary units each unit produced.

The turnover ratio is calculated by dividing the net proceeds received from sales by the annual average. This indicator allows you to assess the efficiency of using assets, regardless of the sources of their formation. Determining the resource efficiency indicator shows the amount of profit received from each ruble invested in assets.

Depends on the turnover rate financial condition firm, its liquidity and solvency. The most important indicators of resource productivity are the period and speed of turnover. The latter shows how many capital turnover occurred over a certain period of time. Average term, during which the return on investment in commercial operations will occur or is called the turnover period.

Low turnover (of goods, for example) indicates the low efficiency of the company's assets.

Working capital turnover ratio

A characteristic of the speed of turnover from the moment of payment until the return of money for sold material assets to the bank account is the turnover of funds (current). Their amount is calculated based on their total size, subtracting the balance of monetary assets in the current account.

The working capital turnover ratio is also calculated by the ratio of (revenue) from the sale of goods to the amount of the company's working capital. The calculation does not take into account VAT and excise duty. If this indicator decreases, we can say that turnover is slowing down.

If turnover accelerates at constant volume sales, the company will have to use less working capital. With an increase in turnover, the company spends less reverse funds, which allows it to use material and monetary resources more efficiently. Working capital released from production can be used in other industries. Thus, the working capital turnover ratio shows the entire set of processes in the company’s activities: a decrease in capital intensity, an increase in the rate of productivity growth.

The main factors influencing the turnover of current assets are a reduction in the duration of the general technological cycle, improvement in sales and supply conditions, improvement in the organization of production and technology, and clear organization of settlement payment relations.

Accounts receivable turnover ratio

In the process of operation, enterprises have to provide commodity loans to consumers, as a result, receivables accumulate. Its turnover rate determines the number of turnovers per year of funds invested in the calculations.

Turnover ratios or business activity enterprises– show the effectiveness of the enterprise (organization) using its capital and funds. These ratios show the rate of capital turnover and its conversion into cash. Turnover ratios directly determine the degree of solvency of an enterprise (ability to pay its obligations), financial stability And financial risk. Turnover ratios in their calculations do not use net profit as profitability ratios, but revenue from the sale of goods and services. This allows us to evaluate not the profitability of the enterprise, but its intensity and turnover rate of resources, assets, inventories, Money, accounts receivable and accounts payable.

This article will discuss the main enterprise turnover ratios most often used in financial practice, such as:

1. Asset turnover ratio
2. Turnover ratio equity
3. Current assets turnover ratio
4. Inventory turnover and asset cost ratio
5. Accounts receivable turnover ratio
6. Accounts payable turnover ratio
7. Cash turnover ratio

The asset turnover ratio is the ratio of revenue from products sold to all assets of the enterprise. This ratio shows the efficiency of use of assets and shows the number of turnovers of the entire capital for the period and the amount of cash that a unit of assets brought.

There are no standard values ​​for the asset turnover ratio, so it is necessary to directly study the dynamics of changes in this indicator over time for one enterprise or industry. In capital-intensive industries, asset turnover will be lower than in trade areas. The higher the asset turnover ratio, the greater the efficiency of asset use. This indicator differs from return on assets indicators in that it does not show the profitability of the enterprise, but characterizes the intensity of turnover. Therefore, turnover formulas use not net profit, but the enterprise’s revenue for reporting period. The formula for calculating the asset turnover ratio is as follows:

Asset turnover ratio= Sales revenue / Average assets for the period

Asset turnover ratio= line 10 Form No. 2 / (0.5 * (line 300 beginning of the year + line 300 end of the year))

The equity capital turnover ratio is calculated as the ratio of the volume of product sales (revenue) to the average annual cost of equity capital. The equity turnover ratio shows the activity and speed of the enterprise's use of its own capital.
There are no standard values ​​for the equity capital turnover ratio; it is necessary to study the dynamics of changes in this indicator for one enterprise. The formula for calculating the equity turnover ratio is as follows:

Equity turnover ratio= Revenue from sales of products / Average cost of equity capital for the period

Equity turnover ratio= line 10 Form No. 2 / 0.5* (line 490 at the beginning of the year + line 490 at the end of the year)

The turnover ratio of current assets shows the activity of use and the speed of circulation of current assets. This ratio characterizes how much current assets have transferred in one year full turn and how much revenue they brought in. Current assets include accounts receivable, cash, inventories and deferred expenses, short-term financial investments. The higher the value of this coefficient, the more effective the enterprise. Formula for calculating the turnover ratio of current assets:

Current assets turnover ratio= Net revenue from product sales / Average annual cost of current assets

Current assets turnover ratio= line 10 Form No. 2 / 0.5 (line 290 at the beginning of the year + line 290 at the end of the year)

The ratio of inventory turnover and asset costs shows the intensity of inventory use and turnover rate.
There are no standard values ​​for the turnover ratio. This indicator must be analyzed over time for a specific enterprise or industry. A decrease in the turnover ratio indicates the accumulation of excess inventory in the company's warehouses. The higher the ratio of inventory turnover and asset costs, the higher the activity of the enterprise in creating cash. An excessively high inventory turnover and asset cost ratio indicates severe inventory shortages and rapid depletion. Formula for calculating the inventory turnover ratio and asset costs:

Inventory turnover and asset cost ratio= Net revenue from product sales / Average annual cost of inventories

Inventory turnover and asset cost ratio= line 10 Form No. 2 / 0.5*[(line 210+line 220) at the beginning of the year + (line 210+line 220) at the end of the year]

The accounts receivable turnover ratio shows the rate of turnover of accounts receivable. There are no clear standard values ​​for the accounts receivable turnover ratio; they vary depending on the industry, but the higher the ratio, the faster consumers repay their obligations, which is beneficial for the enterprise. The formula for calculating the accounts receivable turnover ratio is as follows:

Accounts receivable turnover ratio= Revenue from sales of goods and services / Average annual value of accounts receivable

Accounts receivable turnover ratio= line 10 Form No. 2 / 0.5*[(line 230+line 240) at the beginning of the year + (line 230+line 240) at the end of the year]

The accounts payable turnover ratio shows the speed and intensity of repayment of the enterprise's obligations to borrowers and characterizes the number of turnovers in the repayment of accounts payable for the reporting period, which is usually one year. The standard value of the accounts payable turnover ratio depends on the industry and the nature of the enterprise's activities. The formula for calculating the accounts payable turnover ratio is as follows:

Accounts payable turnover ratio= Revenue from sales of goods and services / Average amount of accounts payable

Accounts payable turnover ratio= line 10 Form No. 2 / 0.5 * (line 620 at the beginning of the year + line 620 at the end of the year)

The cash turnover ratio shows the intensity of use of the enterprise's funds and shows the number of turnover for the reporting period. The formula for calculating the cash turnover ratio is as follows:

Cash turnover ratio= Revenue from sales of goods and services / Average amount of funds

Cash turnover ratio= line 10 Form No. 2 / 0.5 * (line 260 at the beginning of the year + line 260 at the end of the year)

conclusions
Turnover ratios are an important indicator of the efficiency of use of resources by an enterprise. These indicators, in contrast to profitability indicators, show turnover rate and intensity, because in their calculation formulas they use revenue values ​​(rather than net profit as for profitability ratios). Turnover ratios are studied in dynamics to analyze the direction and assess the nature of their changes for one enterprise, a group of similar enterprises and one industry.

The effective functioning of any enterprise is impossible without the competent and rational use of working capital. Depending on the type of activity, stage life cycle or even the time of year, the amount of working capital of an organization may be different. However, it is the availability and proper use of these resources that determines how successful and long-lasting the activities of any business entity will be.

In order to assess the correct use of a company's working capital, there are many coefficients that analyze the speed of circulation, sufficiency, liquidity and many others, no less significant characteristics. One of the most important indicators necessary to determine the financial condition of an organization is the working capital turnover ratio.

Turnover ratio (K rev), or turnover rate, shows how many times during the period of time under study the enterprise is able to completely turn over its own working capital. Thus, this value characterizes the efficiency of the company. The larger the value obtained, the more successful company uses the resources available to it.

Formula and calculation

The turnover ratio shows the number of revolutions made by working capital over the period of time under consideration. It is calculated as:

Where:

• Q p is the volume products sold at wholesale prices of the organization excluding VAT;
• F ob.av. – the average balance of working capital found during the period under study.

If we recall the approximate form of the cash circulation cycle at an enterprise, it turns out that the money that the organization invests in the work of its company returns to it after some time in the form finished products. The company sells these products to its customers and again receives a certain amount of money. Their value is the income of the organization.

Thus, general scheme“money-product-money” implies the cyclical nature of the company’s activities. The turnover ratio in this case shows how many similar turnovers the organization’s funds can make in a certain period of time (most often in 1 year). Naturally, for the effective and fruitful operation of an enterprise it is necessary that this value was as large as possible.

Necessary indicators for calculation

The working capital turnover ratio can be determined using the data presented in financial statements organizations. The quantities needed to determine it are shown in the first and second forms of financial statements.

So, in general case the volume of products sold is calculated as the revenue received by the organization in one cycle (since in most cases an annual coefficient is used for analysis, in the future we will take into account the time period t=1). Revenue for the specified period is taken from the income statement financial results(former income statement), where it is shown in a separate line as the amount received by the enterprise from the sale of work, goods or services.

The average balance of working capital is from the second section balance sheet and is calculated as:

Where F 1 and F 0 are the amounts of the company’s working capital for the current and past periods of time. Note that if the calculations use data for 2013 and 2014, then the resulting coefficient will represent the rate of funds turnover specifically for 2013.

In addition to the turnover ratio in economic analysis There are other quantities that analyze the speed of circulation of an organization’s working capital. Many of them are also closely related to this indicator.

Thus, one of the values ​​accompanying the turnover ratio is duration of one revolution (T rev). Its value is calculated as the quotient of dividing the number of days corresponding to the analyzed period (1 month = 30 days, 1 quarter = 90 days, 1 year = 360 days) by the value of the turnover ratio itself:

Based on this formula, the duration of one revolution can also be calculated as:

Another important indicator used when analyzing the financial condition of an organization is utilization rate of funds in circulation K load. This indicator determines the amount of working capital required to receive 1 ruble of revenue from product sales. In other words, the coefficient shows how many percent of the organization’s working capital falls on one unit of the final result. Thus, in another way the load factor can be called the capital intensity of working capital.

It is calculated using the following formula:

As can be seen from the methodology for calculating this indicator, its value is the inverse of the value of the turnover ratio. And this means that the lower the load indicator, the higher the efficiency of the organization.

Another generalizing factor in the efficiency of using working capital is the value profitability (R ob.av.). This ratio is characterized by the amount of profit received for each ruble of working capital and shows the financial efficiency of the organization. The formula for calculating it is similar to the values ​​​​used to find the turnover ratio. However, in this case, instead of revenue from sales of products, the enterprise’s profit before tax is used in the numerator:

Where π is profit before tax.

Also, as in the case of the turnover ratio, the higher the return on capital value, the more financially stable the enterprise’s activities.

Turnover ratio analysis

Before moving on to analyzing the turnover ratio itself and looking for ways to increase the efficiency of an organization, we will define what is generally meant by the concept of “working capital of a company.”

Under working capital enterprise is understood as the value of assets with a useful life of less than one year. Such assets may include:

• stocks;
• unfinished production;
• finished products;
• cash;
• short-term financial investments;
• accounts receivable.

In most cases, a company's turnover ratio is approximately same value over a long period of time. This value may depend on the types of core activities of the company (for example, for trade enterprises this indicator will be the highest, while in the field of heavy industry its value will be quite low), its cyclical nature (some companies are characterized by a surge in activity in certain seasons) and many other factors.

However, in general, in order to change the value of this ratio and increase the efficiency of using the company’s assets, it is necessary to competently approach the working capital management policy.

Thus, a reduction in inventories can be achieved through a more economical and rational use of resources, reducing the material intensity of production and the amount of losses. In addition, significant improvements can be achieved through more effective management supplies.

The amount of work in progress is reduced by rationalizing the production cycle and reducing the cost of inventory. And a reduction in the amount of finished products in the warehouse can be achieved with the help of more advanced logistics and aggressive marketing policy organizations.

Note that positive impact even one of the values ​​presented above already has a significant impact on the turnover ratio. In addition, it is possible to achieve an increase in the efficiency of using working capital at an enterprise in indirect ways. Thus, the value of the indicator will be higher with an increase in the organization’s profit and sales volumes.

If, when plotting the dynamics of the turnover ratio over a long period of time, one can note a stable decrease in its value, this fact may be a sign of a deterioration in the financial condition of the company.

Why might it be declining?

There are several reasons for reducing the turnover ratio. Moreover, its value can be influenced by both external and internal factors. For example, if the general economic situation in the country worsens, the demand for luxury goods may fall, the appearance of new models of electrical equipment on the market will reduce the demand for old ones, and so on.

There may also be several internal reasons for a decrease in turnover rate. Among them it is worth highlighting:

• errors in working capital management;
• logistics and marketing errors;
• growth of the company's debt;
• use of outdated production technologies;
• change in the scale of activity.

Thus, most of the reasons for the deterioration of the situation at the enterprise associated with management errors and low qualifications of workers.

At the same time, in some cases, the value of the turnover ratio may decrease due to the transition to a new level of production, modernization and the use of new technologies. In this case, the value of the indicator will not be associated with the low efficiency of the company.

Let's consider a certain organization "Alpha". Having analyzed the company’s activities for 2013, we learned that revenue from sales of products at this enterprise amounted to 100 thousand rubles.

At the same time, the amount of working capital was equal to 35 thousand rubles in 2013 and 45 thousand rubles in 2012. Using the data obtained, we calculate the asset turnover ratio:

Since the resulting coefficient is 2.5, we can note that in 2013 the Alpha company had the duration of one turnover cycle:

So one production cycle Alpha enterprise takes 144 days.

Working capital turnover ratio is an important economic indicator, indicating the following production parameters:

1. Intensity of use of tangible and intangible assets.
2. The rate of turnover of means of production.
3. General activity of the enterprise.

Calculation of the working capital turnover ratio

This indicator is calculated as the ratio of revenue to the current assets of the enterprise.

Most often, it is calculated over 12 months, subject to full production capacity.

The formula for calculation is as follows:

KO = VR/SOB,

where KO is the working capital turnover ratio,
VR – revenue received from sales of products;
SOB – the sum of average working capital balances.

For example, the value of KO = 4 will indicate a fourfold turnover of assets, that is, revenue from goods sold was 4 times higher than the funds spent on their production.

The SOB indicator is calculated using the formula as follows:

SOB=(ΣOSi)/n,
where OSi is the balance of working capital for the reporting period (for example, a quarter or a month),
n is the number of reporting periods (4 or 12, respectively).

Sometimes the concept of VAT includes value added tax (VAT); it is added to the amount of average current balances.

Formation of the working capital turnover ratio

High KO shows the activity of the enterprise, success in selling its products.

KO is highly dependent on the industry of the company.

The trade industry traditionally has large values KO;
branches of science, art, stock exchanges are low.

It is correct to use the indicator only to compare the performance of enterprises in the same industry or the same enterprise over different periods of time.

In addition, the rate of turnover of funds is determined by the correct calculation of their quantity.

Their underestimation entails instability in production operations and supply interruptions.

An inflated amount of working capital has a bad effect on the activity of the productive process, slows down the search for innovation, new solutions, and prevents exponential profit growth.

This indicator is determined

• volume and rate of production,
• varieties of necessary raw materials,
• required personnel qualifications,
• timing of production processes,
• the nature of the organization's activities.

The higher the rate of asset turnover, the less actual means of production are required

Their quantity can be determined by 3 methods:

1. Analytical. The method is suitable for enterprises that have been on the labor market for a year or more. Forecast of the number of assets that will be used in production process, is built on the basis of the real balances and capabilities of the enterprise.

2. Coefficient. In this case, accountants start from production development strategies, taking into account amendments that arise along the way. For a competent strategy it is necessary detailed analysis indicators for previous reporting periods.

3. Direct counting. Provides for the permanent calculation of working capital, taking into account daily (monthly) needs and requirements. Involvement of funds in production occurs based on their need. Suitable for newly opened businesses.

Analysis of the working capital turnover ratio

KO is an adequate indicator to assess the maturity of the company, the correctness of its approach to production and the fidelity of the intended strategy.

The growth of CO may indicate the following processes:

• increasing the level of enterprise performance;
• growth in sales volumes;
• reduction in the level of working capital;
• increased profits;
• rational use of resources;
• introduction of progressive innovative methods.

A decrease in the indicator may indicate such phenomena as:

• falling demand for manufactured goods;
• presence of debt;
• unsuccessful production strategy;
• transition of the enterprise to a new level, changes in scale and methods of production.

In this case, it is necessary to take into account not only its specific value, but also the level of its growth compared to the previous reporting period, expressed as a percentage.

The enterprise is considered:
profitable when the KO value is greater than 1;
super profitable if KO is more than 1.36.

The Ministry of Economy does not introduce KO standards, but notes that the efforts of production managers should be aimed at increasing it.

Along with it, the following indicators are used:

1. liquidity ratio;
2. financial independence ratio;
3. financial stability ratio;
4. percentage ratio of working capital to their general level;
5. percentage ratio of equity and borrowed capital.

When studying their reduction or increase using formulas, a point system is used

In particular, when KO is reduced by 0.01, 0.3 points are removed.

Based on the total number of points, organizations are divided into five classes:

1. Excellent financial condition, high solvency, good dynamics and development forecasts.
2. Financial indicators are close to optimal, forecasts are favorable.
3. The organization has a sustainable economic system, without development trends.
4. Profit is zero or close to given value, financial condition is not stable.
5. The organization is undergoing a crisis and its financial condition is unprofitable.

Accelerating the turnover of working capital occurs with the help of:

• increasing the growth of product sales in comparison with the growth of working capital,
• updating the materials supply and sales system,
• reducing the consumption of materials and energy for production,
• improving product quality,
• increasing the competitive ability of the product,
• reduction of production time.

To characterize the turnover of working capital, the following indicators are used:

1. turnover ratio (K o), that is, the number of revolutions made by working capital during the period;
2. utilization rate of funds in circulation (Кз);
3. indicator of the duration of one revolution in days (T).

Turnover ratio calculated by the formula

where P is the volume of sales (by main types of activities) for the period at cost, rub.;

WITH - average value working capital for the period, which can be defined as the chronological average, rub.

Load factor of funds in circulation is defined as the inverse indicator:

Duration of one revolution (turnover period) in days is determined by the ratio of the number of days of the reporting period (D) to the turnover ratio:

Based on the above formulas for turnover of funds speed(K o) can be defined by two formulas:

Based on these two equations, we can obtain the equality

R/S = D/T

From this we derive a formula widely used in practice for determining the duration of turnover in days: .

Let's consider example. The cost of products sold for the year is 20 million rubles. The average value of working capital for the year is 2 million rubles. In this case, the turnover ratio

T = (S∙D) / Ko

and the turnover period

T = D / Co = 365 / 100 = 36.5 days.

It follows that with the duration of one turnover being 36.5 days, working capital was turned over 10 times during the year. For every ruble of working capital there were 10 rubles. sold products. Obviously, the higher the turnover ratio, the better the use of working capital.

Working capital turnover indicators can be calculated similarly for all components of working capital involved in turnover and their individual elements. As a result of comparison of working capital turnover indicators, its acceleration or deceleration at the stages of their use is revealed. When the turnover of working capital accelerates, they are released from circulation material resources and the sources of their formation; if it slows down, additional funds are involved in circulation.

The release of working capital due to the acceleration of their turnover can be absolute and relative. An absolute release occurs if the actual balances of working capital are less than the standard or balances of the previous period while maintaining or exceeding the sales volume for the period under review. Relative release of working capital occurs in cases where the acceleration of their turnover occurs simultaneously with an increase in production volume, and the growth rate of production volume is faster than the growth rate of working capital balances.

The main ways to reduce inventories come down to their rational use, liquidation of excess stocks of materials, improvement of rationing, improvement of supply organization, optimal choice suppliers, well-established transport. An important role belongs to improving the organization of warehouse management.

Reducing the time spent by working capital in work in progress is achieved by improving the organization of production, improving the equipment and technology used, improving the use of fixed assets, and saving at all stages of the movement of working capital.

In the sphere of circulation, working capital does not participate in the creation of a new product, but only ensures its delivery to the consumer. The most important prerequisites for reducing investments of working capital in the circulation sector are the rational organization of sales of finished products, the use of progressive payment methods, timely execution of documentation and acceleration of its movement, compliance with contractual and payment discipline.

The structure of working capital at enterprises in different industries is determined by the specifics of their production and the nature of the products produced. For example, in ferrous metallurgy, the size and structure of working capital are determined by the continuous production process and the significant material intensity of products.

Along with the division of working capital by stages of circulation into working capital (functioning in the sphere of production) and circulating funds (functioning in the sphere of circulation), there is a second division into normalized and non-standardized working capital. Standardized working capital consists of revolving funds and finished products in the warehouse, ensuring continuity of the production process. In the total amount of working capital of ferrous metallurgy enterprises, the predominant part (up to 90%) is made up of standardized working capital. The division of working capital into standardized and non-standardized is not rigid. The organization has the right to independently determine the list of working capital included in a particular group.