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Introduction

Problems of managing working capital of a business entity are increasingly attracting the attention of representatives of domestic financial science. This is due to the transformation processes taking place in the Belarusian economy, the development of not only various forms of ownership, but also the diversity of economic behavior of owners and managers of enterprises. Economic practices are becoming in demand for non-traditional, unique solutions, based on a deep synthesis of the achievements of modern financial theory and financial management experience.

Usage efficiency analysis working capital enterprises are produced by a significant number of economic entities. However, financial services, as a rule, use a standard set of indicators recommended by the Ministry of Economy of the Republic of Belarus, the State Statistics Committee of Belarus, etc., while economic science has a fairly wide selection of methods for analyzing the efficiency of using working capital of an enterprise (rating (score) assessment, financial diagnostics, audit and audit). However, there are no comprehensive methods aimed at identifying problem areas in the field of working capital management across industries.

As a rule, most Belarusian enterprises have difficulties planning the amount of working capital. The planning process is time-consuming, which makes it unsuitable for making operational management decisions. Planned data differs significantly from actual data. Economic planning traditionally does not extend to financial planning and therefore does not make it possible to determine the need for financing the activities of an enterprise. With such planning methods, it is impossible to reliably conduct scenario analysis and analysis of the financial stability of the enterprise to changing operating conditions.

The relevance and insufficient elaboration of certain provisions of the modern economy in relation to the problems of working capital management at enterprises in a transforming economy determined the choice of topic, purpose and objectives of the study.

The purpose of the course work is to study the process of working capital management at an enterprise and, on this basis, to develop specific recommendations for increasing the efficiency of their use. To achieve this goal, the following tasks are formulated in the work:

Determining the essence of “current assets” of an enterprise in a market economy;

Systematization and comprehensive presentation of factors influencing the size and condition of the enterprise’s working capital;

Determining the range of indicators necessary for the rating assessment of the state of the enterprise’s working capital, taking into account the correlation between them;

Generalization of the conditions and factors that determine the methodology for calculating the volume of working capital of an enterprise;

Research of methods of planning and management of accounts receivable;

The object of the study was the current assets of the following enterprises: OJSC “Molochny Mir”, OJSC “Grodno Meat Processing Plant”. The subject of the study was the economic relations that develop among business entities in the process of forming working capital, as well as the mechanisms for its financing.

The theoretical and methodological basis of the study consists of basic concepts modern theory enterprise economics: capital structure and methods of its management. Course work relies on classical and modern works domestic and foreign economists in the field of financial management of working capital in general - Blanka I.A., Brigham Yu.F., Van Horn J.K., Drobozina L.A., Rodionova V.M., Savitskaya G.V.; in area financial analysis- Bakanova M.I., Balabanova I.T., Rodionova V.M., Sayfulina R.S., Fedotova M.A., Sheremet A.D.; in the field of accounts receivable management - Novodvorsky V.D., Repin V.V., Svobodina M.V., Fasolyak N.D., Khorina A.N.; in the field of working capital cost management - Kovaleva V.V., Siegel J.G., Shima J.K.; in the field of working capital planning - Litvina M.I., Starovoitova M.K., Stoyanova E.S., Fomina P.A. and etc.

During the study, the provisions of the current legislation, regulatory materials at the state and regional level were applied, methodological provisions and directions.

Within the framework of the systems approach, methods of analysis and synthesis, grouping and comparison, scientific abstraction and modeling are used; In the practical part of the study, calculation and analytical methods, methods of structural-dynamic and comparative analysis were used.

1 . The role of working capital in ensuring the current activities of the enterprise

1.1 The essence of working capital and its classification

An indispensable condition for the enterprise to carry out economic activity is the availability of working capital (working capital). Working capital is money advanced into working capital. production assets and circulation funds.

The essence of working capital is determined by their economic role, the need to ensure production process, which includes both the production process and the circulation process. Unlike fixed assets, which are repeatedly involved in the production process, working capital operates only in one production cycle and, regardless of the method of production consumption, completely transfers its value to the finished product.

William Collins defines the essence of current assets as “... the short-term current assets of a firm that are quickly turned over during the production period.”

A similar definition of working capital is given by Doctor of Economic Sciences, Professor I.A. Blank: these are assets that characterize “... the totality of property assets of an enterprise that serve the current production and commercial (operating) activities and are completely consumed during one production and commercial cycle.”

G. Schmalen more accurately describes the process that working capital provides, in his opinion, “... working capital is used to create funds that are not designed for a specific period, but they directly support the process of processing and processing, sales of products, as well as the formation of monetary resources and their expenditure” Cherkasov V.E. V educational manual on financial management clarifies that “working capital is the current assets of a company that are cash or can be converted into cash within a year or one production cycle.”

The differences between working capital and working capital can be defined as follows:

Working capital, according to the accepted accounting methodology, characterizes the assets of the enterprise, and capital - the sources of funds;

Capital is usually understood as value that brings surplus value, and working capital transfers the value of working capital to the finished product;

Capital is a production relation that is presented in material or monetary form and has a specific social character. Working capital serves the production process, ensures its continuity, without being a relationship;

Working capital theory involves the separation of current assets, current debt and net working capital as the difference between current assets and debt. The theory of working capital operates in terms of its own and equivalent working capital;

The theory of working capital considers attracting borrowed funds as replenishing the lack of funds to ensure the continuity of the production process; in the theory of working capital, attracting loans is not related to the production process;

The theory of working capital considers a homogeneous group - current assets, without distinguishing between production assets and circulation funds, abstracting from their inherent features due to the participation of the former in production and the latter in the sale of products.

Working capital of enterprises according to their purpose in the reproduction process is divided into the following groups:

Productive reserves;

Unfinished production;

Finished products in warehouse and shipped;

Cash in hand and in the current account, and funds in settlements.

Industrial inventories and work in progress represent production working capital of associations and enterprises (working capital of production). Industrial stocks are located only in the sphere of production, and not in the production process itself, since in this moment over time they are not processed, but are potential elements of production. However, they are necessary because they ensure continuity of the production process. Work in progress is items of labor that are directly in the production process and are being processed. Essentially, these are unfinished products of varying degrees of readiness.

The main purpose of working capital of production (inventories and work in progress) is to ensure the uninterrupted and rhythmic nature of the production process.

Finished products, as well as cash in the cash register, on the current account and funds in settlements constitute working capital. The need for these working capital is determined by the continuity of the process of circulation of funds of production associations (enterprises).

To define the concept of working capital, we formulate external and internal factors on which the size and condition of the enterprise’s current assets depend.

TO external factors should include: the general economic situation in the country; features of tax legislation; inflation (deflation) rates; level of bank lending rates; trends in the development of the investment market (investment climate); economic potential of the region.

The internal factors on which the size and condition of the enterprise’s current assets depend include: the competitiveness of the enterprise in the market; organization of warehousing; scale of activity of the enterprise (small business, medium, large); quantity and variety of resource types consumed; location of counterparties; growth rates of production and sales of products; share of added value in the price of the product; accounting policy enterprises; quality of work of top managers and personnel of the enterprise.

The amount of working capital is determined not only by the needs of the production process, but also by random factors. Therefore, it is customary to divide working capital into constant and variable.

In the theory of financial management, there are two main interpretations of the concept of “constant working capital”. According to the first interpretation, constant working capital represents that part of cash, accounts receivable and inventory, the need for which is relatively constant throughout the entire operating cycle. This is the average, for example, over time, value of current assets that are under the constant control of the enterprise. According to the second interpretation, constant working capital can be defined as the minimum necessary to carry out production activities. This approach means that an enterprise needs a certain minimum of working capital to carry out its activities, for example, a constant cash balance in a current account, some analogue of reserve capital.

The variable working capital category reflects additional current assets needed during peak periods or as safety stock. For example, the need for additional inventory may be associated with maintaining a high level of sales during seasonal sales. At the same time, as sales proceed, receivables increase. Additional funds are needed to pay for supplies of raw materials and supplies, as well as labor activity preceding a period of high business activity.

Thus, taking into account the above factors, the concept of “current assets” has been formulated - these are assets that characterize the totality of property assets of an enterprise serving current production and commercial activities, the value of which is determined by its scale and nature and depends on the duration and specifics of the production cycle, the state of the enterprise’s fixed assets , its relationships with counterparties, as well as macroeconomic parameters.

1.2 The role of working capital in providing the enterprise with financial resources

The goal of working capital management is to determine the volume and structure of working capital, the sources of their coverage and the ratio between them, sufficient to ensure long-term production and efficiency financial activities enterprises.

The formulated target is of a strategic nature; no less important is maintaining working capital in an amount that optimizes the management of current activities. From these positions, the most important financial and economic characteristic of an enterprise is its liquidity, i.e. the ability to “convert assets into cash and pay off its payment obligations.” For any enterprise, an adequate level of liquidity is one of the most important characteristics of the stability of economic activity. Loss of liquidity is fraught not only with additional costs, but also with periodic stoppages of the production process.

When working capital levels are low, production activities are not properly supported, hence possible loss of liquidity, periodic disruptions and low profits. At some optimal level of working capital, profit becomes maximum. A further increase in the amount of working capital will lead to the fact that the enterprise will have at its disposal temporarily free, inactive current assets, as well as unnecessary financing costs, which will lead to a decrease in profits.

Thus, the strategy and tactics of working capital management must ensure a compromise between the risk of loss of liquidity and operational efficiency. This comes down to solving two important problems.

1. Ensuring solvency. There is no such condition if the company is unable to pay bills, fulfill obligations and, possibly, declares bankruptcy. A company that does not have sufficient working capital may face the risk of insolvency.

2. Ensuring an acceptable volume, structure and profitability of assets. Different levels of different current assets are known to have different effects on earnings. For example, high level production and material inventories will require correspondingly significant current costs, while a wide range of finished products can further help increase sales volumes and increase income. Each decision related to determining the level of cash, accounts receivable and inventory must be considered both from the point of view of the profitability of this type of asset and from the point of view of the optimal structure of working capital.

The theory of financial management has been developed various criteria effective management of working capital and sources of its formation. The main ones are the following:

1. Minimization of current accounts payable. This approach reduces the possibility of liquidity loss. However, such a strategy requires the use of long-term sources and equity to finance most of the working capital.

2. Minimization of total financing costs. In this case, the emphasis is on the primary use of short-term accounts payable as a source of covering assets. This source is the cheapest, however, it is characterized by a high level of risk of non-fulfillment of obligations, in contrast to the situation when financing of working capital is carried out mainly from long-term sources.

3. Maximizing the total value of the firm. This strategy integrates the working capital management process into the firm's overall financial strategy. Its essence is that any decisions in the field of working capital management that contribute to increasing the economic value of the enterprise should be considered appropriate.

Working capital financing models developed in the theory of financial management, on the one hand, proceed from the fact that the management policy should ensure a search for a compromise between the risk of loss of liquidity and operational efficiency, on the other hand, when selecting sources of financing, a decision is made that takes into account the period of their attraction and usage costs.

Yu. Brigham described the following three policy options for the formation of working capital of an enterprise:

- “Calm”, in which there is a relatively high level of inventories, receivables and cash. It is associated with a minimal level of risk and profit.

- “Containing”, in which the level of working capital is reduced to a minimum. It can bring the greatest profit, but is also the most risky.

- “Moderate” is the average option.

E.S. Stoyanova in her works considers the policy of integrated operational management of current assets (TA) and current liabilities (LP), which combines the TA management policy with the TP management policy. Its essence lies, on the one hand, in determining a sufficient level and rational structure of TA, on the other hand, in determining the size and structure of TA funding sources.

Depending on the size of the share of current assets in the composition of all assets, the following policy options for managing current assets are distinguished, essentially similar to those described above:

Aggressive. Its main features are maintaining a high proportion of current assets and, accordingly, their low turnover. It provides a sufficient level of liquidity, but a low return on assets.

Conservative. Its main feature is growth inhibition and a low level of current assets, but it carries a high risk of loss of liquidity due to desynchronization of receipts and payments, so it is carried out either in conditions of sufficient predictability of receipts and payments, sales volumes and inventories, or with strict savings.

Moderate is a compromise option. Its parameters are at an average level.

Each type of such policy must be matched by a funding policy. Depending on the size of the share of short-term liabilities, the following policy options for managing short-term liabilities are distinguished among all liabilities.

Aggressive. Its main feature is the predominance of short-term liabilities. - Conservative. The main feature is low specific gravity. - Moderate - a compromise option. Average level of short-term credit.

The compatibility of various types of TA and TP management policies is illustrated by the policy selection matrix for integrated operational management of TA and TP. Based on it, some types of current asset management policies are not compatible with certain types of current liability management policies. This applies to an aggressive policy for managing current assets, which is not combined with a conservative policy for managing current liabilities, and vice versa. First of all, this is due to the fact that measures for managing current assets come into direct conflict with methods for managing current liabilities (for example, with an aggressive policy for managing current assets, the company does its best to increase the share of current assets in the total assets of the enterprise, while with a conservative policy for managing current liabilities the company actually refuses short-term loans).

The aggressive policy of managing current assets combines well (one can even talk about addition and the emergence of a cumulative effect) with the aggressive policy of managing the current liabilities of the enterprise (in this case, an aggressive PKU arises). A similar thing happens in the case of combining a conservative policy for managing current assets with a conservative policy for managing current liabilities (in this case, a conservative PKU arises).

The policy of aggressive management of current assets and the conservative policy of management of current liabilities and vice versa, as well as all types of moderate policy of management of current assets and moderate policy of management of current liabilities, are normally combined, leading to moderate PKU. This matrix has practical meaning when making decisions on the policy of integrated management of current assets and current liabilities. The company can make the right choice in this fundamental issue, having all the information (necessarily reliable) about internal environment enterprises and the main parameters of the external environment.

1.3 Analysis of the efficiency of using working capital of business entities

The efficiency of using working capital is characterized by the following system economic indicators:

Working capital turnover;

Load factor of funds in circulation;

Return on working capital indicator;

Liquidity ratios;

Return on current assets;

Calculation of the degree of financial stability depending on the degree of provision of reserves and costs by various types of sources;

General analysis of the state of the enterprise's working capital.

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, supplies, etc.) to the release and sale of finished products. The circulation of working capital is completed by crediting the proceeds to the company's account.

The turnover of working capital is not the same various enterprises, which depends on their industry affiliation, and within one industry - on the organization of production and sales of products, placement of working capital and other factors.

Working capital turnover is characterized by a number of interrelated indicators: the duration of one turnover in days, the number of turnovers for a certain period (turnover ratio), and the amount of working capital employed at the enterprise per unit of production (load factor).

Working capital turnover is calculated both as a whole and by individual elements (inventories, work in progress, finished goods). This makes it possible to identify at what stage of the circulation of working capital the acceleration or deceleration of the overall turnover of funds occurs.

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

O = C / (T/D), (1)

where O is the duration of the turnover, days; C - working capital balances (average or as of a specific date), rub.; T - volume of commercial products, rub.; D - number of days in the period under review, days.

A decrease in the duration of one revolution indicates an improvement in the use of working capital.

The number of turnovers for a certain period, or the working capital turnover ratio (To), is calculated using the formula:

Ko = T/S. (2)

Kz = S/T. (3)

In addition to these indicators, the return on working capital indicator can also be used, which is determined by the ratio of profit from sales of the enterprise's products to the balance of working capital.

Working capital turnover indicators can be calculated for all working capital involved in turnover and for individual elements. Changes in the turnover of funds are identified by comparing actual indicators with planned or indicators of the previous period. As a result of comparison of working capital turnover indicators, its acceleration or deceleration is revealed. When the turnover of working capital accelerates, material resources and sources of their formation are released from circulation; when it slows down, additional funds are drawn into circulation.

During the liquidity analysis, the following tasks are solved: - assessing the sufficiency of funds to cover obligations that expire in the relevant periods; - determining the amount of liquid funds and checking their sufficiency to fulfill urgent obligations; - assessment of the liquidity and solvency of the enterprise based on a number of indicators.

To assess solvency in the short term, the following indicators are calculated:

Coverage ratio (total). Gives a general assessment of the liquidity of assets, showing how many rubles of the enterprise's current assets account for one ruble of current liabilities. The logic for calculating this indicator is that the company pays off short-term liabilities mainly at the expense of current assets; therefore, if current assets exceed current liabilities, the enterprise can be considered to be operating successfully (at least in theory). The size of the excess is set by the coverage coefficient.

Kp=(A1+A2+A3): (P1+P2), (4)

where A1 is the most liquid assets - the enterprise’s cash and short-term financial investments; A2 - quickly realizable assets - accounts receivable and other assets; A3 - slowly selling assets - inventories (without deferred expenses balance sheet form No. 1), as well as articles from section I of the balance sheet asset “Long-term financial investments” (reduced by the amount of investments in the authorized funds of other enterprises); P1 - the most urgent obligations - accounts payable, other liabilities, as well as loans not repaid on time; P2 - short-term liabilities - short-term loans and borrowed funds.

The value of the indicator can vary significantly by industry and type of activity, and its reasonable growth in dynamics is usually considered as a favorable trend. In Western accounting and analytical practice, the critical lower value of the indicator is 2; however, this is only an indicative value, indicating the order of the indicator, but not its exact normative value.

If the coverage ratio is high, then this may be due to a slowdown in the turnover of funds invested in inventories and an unjustified increase in accounts receivable.

A constant decrease in the ratio means an increasing risk of insolvency. It is advisable to compare this indicator with the average values ​​for groups of similar enterprises.

Experience has shown that it is impossible to justify the general value of this indicator for all enterprises, since it depends on the field of activity, the structure and quality of assets, and the speed of repayment of accounts payable.

However, this indicator is very aggregated, since it does not take into account the degree of liquidity individual elements working capital.

The quick liquidity ratio (strict liquidity) is an intermediate coverage ratio and shows what part of current assets minus inventories and receivables, payments for which are expected more than 12 months after the reporting date, is covered by current liabilities. The quick liquidity ratio is calculated using the formula:

Kb.= (A1+A2): (P1+P2). (5)

It helps to assess the company's ability to repay short-term obligations in the event of a critical situation when it is not possible to sell inventories. This indicator is recommended in the range from 0.8 to 1.0, but can be extremely high due to an unjustified increase in accounts receivable.

The absolute liquidity ratio is determined by the ratio of the most liquid assets to current liabilities and is calculated using the formula:

Cab. liquid = (A1): (P1+P2). (6)

This ratio is the most stringent criterion of solvency and shows what part of the short-term debt the company can repay in the near future. Its value should be no lower than 0.2. If the enterprise is in this moment can repay his debts by 20 - 25%, then his solvency is considered normal.

Various liquidity indicators are important not only for managers and financial workers of the enterprise, but are of interest to various consumers of analytical information: absolute liquidity ratio - for suppliers of raw materials and materials, quick liquidity ratio - for banks; coverage ratio - for buyers and holders of shares and bonds of an enterprise.

Own funds ratio. Characterizes that part of the enterprise's equity capital that is the source of covering the enterprise's current assets (i.e., assets with a turnover of less than one year). This is a calculated indicator that depends both on the structure of assets and on the structure of sources of funds.

Kob.ob.av. = (P4-A4): (A1+A2+A3). (7)

The indicator has a special important for enterprises engaged in commercial activities and other intermediary operations. All other things being equal, the growth of this indicator in dynamics is considered as a positive trend. The main and constant source of increasing own working capital is profit. The amount of own working capital is numerically equal to the excess of current assets over current liabilities. Theoretically (sometimes practically) a situation is possible when the value of current liabilities exceeds the value of current assets. From a theoretical perspective, this situation is anomalous, since in this case one of the sources of covering fixed assets and non-current assets is short-term accounts payable. Financial position the enterprise in this case is considered as unsustainable; immediate measures are required to correct it.

Typically, when analyzing return on assets, an analysis of current assets, that is, its working capital, is carried out, since their influence on this indicator is significant and is subject to serious influences depending on the state and organization of working capital.

Return on current assets shows how many rubles of net profit are per 1 ruble of current assets.

Return on current assets is calculated using the following formula:

RT.a.=PP/AII, (8)

where P is the profitability of current assets, PE is the net profit of the enterprise, AII, - average value Section II of the enterprise's balance sheet - current assets.

Calculation of the degree of financial stability depending on the degree of provision of reserves and costs by various types of sources. The most general indicator of the financial stability of an enterprise is the surplus or lack of sources of funds for the formation of reserves and costs. This surplus or deficiency is formed as a result of the difference in the size of sources of funds and the amount of reserves and costs, meaning the provision of supplies and costs with certain types of sources.

In order to characterize the sources of funds for the formation of reserves and costs, indicators are used that reflect different degrees of coverage of types of sources. Among them:

Availability of the EU's own working capital. this indicator is calculated using the following formula:

Ec=K+Pd-Av, (9)

where K - capital and reserves; Ld - long-term loans and borrowings; Av - non-current assets.

The total value of the main sources of formation of reserves and costs Eо.

Eo=Ec+M, (10)

where M - short-term loans and borrowings.

Based on the above indicators, indicators of the provision of reserves and costs with sources of their formation are calculated.

Excess (+) or shortage (-) of own working capital

±Ec: ±Ec=Ec-Z, (11)

where Z is reserves.

Excess (+) or deficiency (-) of the total value of the main sources for the formation of reserves and costs ±Eo:

±Eo=Eo-Z. (12)

According to the degree of financial stability of the enterprise, four types of situations are possible:

Absolute stability of financial condition. This situation is possible under the following conditions:

Z<Ес+М. (13)

Normal stability of financial condition, guaranteeing the solvency of the enterprise. It is possible provided:

Z=Ec+M. (14)

An unstable financial situation is associated with a violation of solvency and occurs under the condition of:

Z=Ec+M+Io, (15)

where Io are sources that ease financial tension (temporarily available own funds, borrowed funds, bank loans for temporary replenishment of working capital and other borrowed funds).

Crisis financial condition:

Z>Es+M. (16)

The calculation of these indicators and the determination of situations based on them make it possible to identify the situation in which the enterprise is located and to outline measures to change it.

It is proposed to carry out a general analysis of the state of an enterprise's working capital by combining assessment indicators into a single table, where each indicator is assigned its own score and the rating is determined based on their sum. Next, the deviation of the obtained score from the maximum is determined. possible meaning, and appropriate conclusions are drawn.

For the analyzed enterprise, a system of indicators is proposed that has the lowest correlation dependence (Appendix 1).

First of all, it is necessary to determine the profitability of production and economic activities in the period under review from the use of working capital by the enterprise. The evaluation criterion is the return on current assets, which characterizes the level of net profit in relation to the current assets of the enterprise at its disposal.

Next, it is necessary to comprehensively assess the current state of the enterprise’s working capital, which characterizes its solvency. The evaluation criterion is liquidity indicators. It should be noted that the group of liquidity indicators has an average correlation between themselves, but in relation to other rating indicators they have weak correlations.

Indicators of the growth rate of working capital items are necessary to predict the dynamics of changes in their condition. The growth of the most liquid assets (cash and short-term financial investments) indicates that the company has cash to pay for its internal and external obligations; in addition, this may be associated with the repayment of accounts receivable, an effective policy for the sale of products and payments for them etc. A significant increase in quickly and slowly sold assets indicates an unproductive growth of working capital due to accounts receivable, inventories, finished products, etc. A positive trend is their reduction in the structure of current assets. However, in this case, it should be borne in mind that the created production capacity may not be fully used due to the lack of raw materials, materials, etc., which will negatively affect the financial condition of the enterprise as a whole.

The optimal value of the production cycle size, as a rule, is individual for each enterprise, so it is quite difficult to unambiguously rank the values ​​of this indicator. In this regard, it is recommended to analyze the turnover of working capital items as part of a detailed analysis of the financial condition of the enterprise, and to include the indicator “Share of working capital financing costs in their total amount” into the rating indicators. It is obvious that, ideally, an enterprise should strive not just to minimize financing costs, but to completely eliminate them, however, in the conditions of the Russian economy, this is quite difficult to achieve in practice. In this regard, it is recommended to take a value of no more than 20% as a positive value for the share and costs of financing working capital in their total amount for food industry enterprises.

Using the example of OJSC “Grodno Meat Processing Plant”, we will determine the efficiency of using working capital on a quarterly and annual basis financial statements based on the results of 2007 and testing the rating assessment.

The company's working capital during the analyzed period increased from 56,640 to 115,702 thousand rubles. or by 104.28% (See Appendix 2). The increase in current assets occurred due to an increase in work in progress, finished goods, accounts receivable, cash, while reducing the amount of inventories and other current assets.

The structure of current assets has not changed significantly. The bulk of working capital invariably falls on accounts receivable (73.9% at the end of the year). The second largest at the end of the period is finished goods (15.8%).

The duration of the production cycle was formed mainly due to the repayment period of accounts receivable (304 days at the end of the period) and amounted to 434 days (See Appendix 3). Due to the uneven repayment periods of accounts payable and receivable, the value of the production and commercial cycle has negative meaning.

A negative value of the production and commercial cycle means that loans from suppliers and buyers more than cover the need for financing the production process.

All values ​​of the enterprise's liquidity ratios do not fall within the control range (See Appendix 4). The value of the current liquidity ratio (0.7724 at the beginning and 1.0226 at the end of the analyzed period) shows that the current liabilities of the enterprise are not fully covered by current assets.

The quick liquidity ratio also indicates that the enterprise’s ability to repay short-term obligations with liquid and quickly salable assets is insufficient for financial stability in the event of a critical situation when it is not possible to sell inventories.

The absolute liquidity ratio showed that the company is able to repay only 0.2% of short-term debt at the end of the period using the most liquid assets (cash).

The equity ratio at the end of the period has a positive value, although it does not fall within the recommended range. This indicates that the company has its own funds necessary for financial stability.

According to the calculation of the degree of financial stability of the enterprise, we can conclude that both at the beginning and at the end of the period, the enterprise had an unstable financial condition associated with a violation of solvency (See Appendix 5).

The indicator “Share of working capital financing costs in their total amount” amounted to 46% at the end of the period.

The points scored indicate a transition period at the enterprise. In this phase, it is recommended to pay sufficient attention to the analysis of the financial condition of the enterprise, which is preferably carried out quarterly. As a result of financial analysis, it is necessary to determine and analyze projected values ​​of profits and losses, and develop a cash flow forecast. It is then advisable to prepare a forecast of the balance sheet of assets and liabilities in the form of a balance sheet, which is a good test of the forecast of profits, losses and cash flows. Based on these forecasts, one should calculate financial ratios, which allow you to assess solvency, financial position, financial stability and sustainability. Analysis of these ratios and indicators may necessitate the development of a new version of the financial plan.

Thus, the analysis of the role of working capital in ensuring the current activities of the enterprise and its assessment allowed us to draw the following conclusions:

1. The main features of the circulation of value, revealing the economic nature of working capital, are the advance nature of raising funds; combining the value advanced into circulating production assets and circulation funds into a single economic category; availability of working capital in minimum size ensuring continuity of the production and sales process.

2. Current assets of an enterprise are assets that characterize the totality of property assets of the enterprise serving current production and commercial activities, the value of which is determined by its scale and nature and depends on the duration and specifics of the production and commercial cycle, the state of the enterprise’s fixed assets, its relationships with counterparties, as well as macroeconomic parameters.

3. Qualitative analysis external and internal factors influencing the size and condition of the enterprise's working capital allows us to timely identify hidden reserves in the process of working capital management, take measures for their use, and, ultimately, detail through the budgeting process the impact of each factor on specific financial indicators.

4. When analyzing the efficiency of using working capital of an enterprise, it is necessary to include in the evaluation group coefficients that have a weak correlation between themselves in order to avoid duplication of information characterizing the current state of working capital.

5. A rating assessment of the state of working capital of food industry enterprises will allow timely detection of hidden reserves for financial development in order to increase the efficiency of production and economic activities of the industrial enterprise as a whole.

2. Planning and management of working capital of the enterprise

2.1 Features of working capital rationing

The standardization function should be considered as a process of developing scientifically based calculated values ​​that establish quantitative and qualitative assessment various elements, used in the production and management process. This function influences the behavior of the object, disciplines the development and implementation of production tasks with clear and strict standards, ensuring a uniform and rhythmic progress of production, its high efficiency. Calculated calendar and planning standards (production cycles, batch sizes, backlogs of parts, etc.) serve as the basis for planning, determine the duration and order of movement of objects of labor in the production process.

At the same time, in organizations and departments, standards are created and applied that define technical level manufactured products (standards and technical specifications), regulatory documents characterizing the rights and responsibilities of various levels of management, forming the rules of behavior of the system as a whole (instructions, methods), etc. In this understanding, standardization refers to the function of organizing the system.

Consequently, the functions of organization and regulation are dual in nature. Thus, the organization function characterizes the creation (improvement) of a management system, and at the stage of organizing work it is implemented through direct production management. The normalization function is implemented using regulatory documents, instructions when creating the system, and the developed calendar and planning standards are used when planning production activities.

At the analyzed enterprises, the problems of planning and use of working capital are not given due attention. Rationing of working capital is not carried out at all enterprises; calculations and adjustments of standards, if made, are extremely irregular and mainly based on production inventories. The use of outdated methods does not always ensure the validity of calculations. All this indicates the need to attract more attention from financial workers of enterprises to the issues of rationing of working capital and the development of specific areas for improving rationing.

When considering the problems of standardization and the use of standards in an enterprise, one should distinguish between two completely different concepts: norm-measure and norm-directive. Managing the production, economic and financial activities of an enterprise by establishing rules (standards) regulating these activities allows for analysis and control over the implementation of these rules by the relevant services. It can be considered as a normative method of management, to which in a market economy there is no reasonable alternative. In its essence, a norm is a measure of what should be. And to understand its scientific content in economics, one must take into account that the applied economic, technical and economic standards are measures that have numeric value, which are used to study and apply objective economic laws in business practice. Normative management consists in establishing a norm with the help of which an influence is exerted on the object of control in order to change the essence and the result of this influence is checked by comparing the essence (actual) with the proper one.

In a market economy, it becomes especially topical issues rational and effective organization of processes for managing and monitoring the movement of material and financial flows in order to increase the efficiency of the logistics of the enterprise itself and the marketing of its finished products. This is necessary to optimize inventory levels and their efficient use, reduce their levels, and also minimize working capital invested in these inventories.

The lack of production reserves at an enterprise leads to a disruption in the rhythm of its production, a decrease in labor productivity, overexpenditure of material resources due to forced irrational replacements and an increase in the cost of products. The lack of sales reserves does not allow for the uninterrupted process of shipment of finished products; accordingly, this reduces the volume of its sales, reduces the amount of profit received and the loss of potential clientele of consumers of the products manufactured by the enterprise. At the same time, the presence of unused inventories slows down the turnover of working capital, diverts material resources from circulation and reduces the rate of reproduction and leads to high costs for maintaining the inventories themselves. The functioning of an industrial enterprise with a relatively high level of reserves will be completely ineffective. In this case, the enterprise has reserves for certain groups of inventory items that are greater than their actually necessary values ​​- excess reserves (“staying”). In this regard, it must additionally invest significant working capital in them, which consequently leads to a lack of free financial resources - a decrease in the solvency of the enterprise, the inability to timely acquire the material resources and equipment necessary for production, pay off taxes and wages with the budget and extra-budgetary funds. staff, etc. In addition, a high level of excess inventory leads to an increase in the company’s costs for maintaining the inventory itself: the need to have large warehouse areas, the need to have increased staff (storekeepers, loaders, accountants) to process and account for materials in the warehouse, these are additional communal payments and property taxes. All this leads to increased costs for: depreciation due to created additional storage facilities for the storage of excess inventories, the cost of wages for increased accounting and warehouse personnel (storekeepers, loaders processing these inventories), increased utility bills - for lighting, heating of additional warehouse premises, etc. Additional costs increase the cost of finished products produced by an industrial enterprise and reduce its competitiveness in the goods market.

Therefore, in a market economy, the manager of an enterprise, management and employees of its supply and sales services, planning and financial services must strive for effective management of the movement of material and financial resources - management of supply and sales processes, inventories and working capital invested in these inventories. They must promptly warn about the presence and emergence of shortages of inventory items at the enterprise, which threaten to disrupt the uninterrupted organization of the production process, and identify excess reserves of material resources in order to determine the possibility of their sale. The presence of optimal reserves at the enterprise, which can be ensured by organizing management and control over the flow of material and financial resources, the condition and level of reserves, allows the enterprise in question to operate smoothly with a small volume of “dead” material resources and small sizes diverted working capital invested in these inventories. This will make it possible to identify excess inventories, the sale of which will make it possible to reduce the costs of maintaining the inventories themselves and, accordingly, increase production efficiency.

The working capital standard for stocks of raw materials, basic materials and purchased semi-finished products is calculated on the basis of their average daily consumption (P) and the average stock rate in days.

One-day consumption is determined by dividing the cost of a certain element of working capital by 90 days (with a uniform nature of production - by 360 days). The average rate of working capital is determined as a weighted average based on the rate of working capital for individual species or a group of raw materials, basic materials and purchased semi-finished products and their daily consumption.

The rate of working capital for each type or homogeneous group of materials takes into account the time spent in current (T), insurance (C), transport (M), technological (A) and preparatory (D) stocks.

Current stock is the main type of stock required for the smooth operation of an enterprise between two next deliveries. The size of the current stock is influenced by the frequency of supplies of materials under contracts and the volume of their consumption in production. The working capital rate in the current inventory is usually assumed to be 50% of the average supply cycle, which is due to the supply of materials from several suppliers and in different terms.

Safety stock is the second largest type of stock, which is created in case of unforeseen deviations in supply and ensures the continuous operation of the enterprise. Safety stock is generally assumed to be 50% of the current stock, but may be less than this amount depending on the location of suppliers and the likelihood of supply disruptions.

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The concept of working capital as the value of working capital and circulation funds of an enterprise. The relationship between the enterprise's need for working capital and the scale of its activities. Sources of formation and efficiency of use of working capital.

Definition

Working capital is the company's funds invested in current assets.

In other words, these are the funds necessary to conduct business, including those invested in investments traded on the market. It can also be said that it is the portion of a firm's capital employed in its day-to-day business activities. Working capital is the most liquid and mobile assets on the balance sheet of an enterprise. Current assets include:

Inventories (including finished products, materials and raw materials, shipped goods, work in progress, goods for resale);

Accounts receivable;

VAT on purchased goods;

Financial investments;

Money (funds in the current account and in the cash register).

The role and importance of working capital in the activities of an enterprise

Working capital is used in a short period of time, spent within one production cycle, transferring its entire cost to the manufactured product. Its main function is to guarantee uninterrupted production and sales of products. Going through three stages in succession, working capital continuously circulates. In the first phase “money-commodity” (supply), working capital, which initially has the form of money, turns into reserves, that is, it passes from circulation to production. At the second stage “product-production-product”, current assets participate in the process and turn into work in progress, semi-finished products and finished products. The third stage “commodity-money” (sales) again occurs in the sphere of circulation. After the sale of finished products, working capital again turns into money. The basic principle of working capital management is to identify the most optimal, acceptable volume and structure, sources of covering working capital sufficient for the effective operation of the enterprise.

Performance indicators

The main criterion for the efficiency of working capital is turnover. For analysis purposes, the following financial indicators are often used: working capital turnover ratio and time of one turnover. The turnover ratio determines the number of turnovers carried out by current assets over any period of time and is determined by the formula: To turnover = Sales proceeds / Cost of current assets. An increase in the ratio reflects a positive trend and has a positive effect on the investment attractiveness of the company. The time of one turnover is the ratio of the number of days in a period (D) to the turnover ratio: T rev = D/C rev OK. The shorter the turnover time, the more efficiently current assets are used. The following measures contribute to increasing the efficiency of working capital:

Reducing lost working time;

Rational organization of the workplace and production process;

Determining the ideal volume of a consignment of goods, inventories, money in current accounts;

Competent work with accounts receivable.

What is net working capital? Consideration of the concept

Net working capital is the most important financial indicator used to determine the financial strength of a company. His optimal size depends on the needs of the enterprise, the size and type of activity, the turnover period of working capital and the possibilities of obtaining loans. Too high a value for this indicator reflects inefficient use of resources. At the same time, a small or negative value of net working capital indicates that the company is unable to cope with short-term obligations, which is fraught with bankruptcy. Net working capital = current assets (section 2 of the balance sheet) - current liabilities (section 5 of the balance sheet). An increase in this indicator reflects an increase in liquidity and an increase in the creditworthiness of the enterprise.

Introduction

Chapter 1. The role of working capital in ensuring the current activities of the enterprise

1.1 General concept working capital. The role of working capital in the production process. Composition and structure of the enterprise's working capital

1.2 Indicators of the effective use of working capital at the enterprise

Chapter 2. Calculation and analytical part

2.1 History of development and organizational structure of management of the Limited Liability Company “Vyazemsky Mill Plant”

2.2 Analysis of technical and economic indicators of the Limited Liability Company “Vyazemsky Mill Plant”

2.3 Assessment of the efficiency of use of working capital of the Limited Liability Company "Vyazemsky Mill Plant"

2.4 Ways to increase the efficiency of using working capital of the Vyazemsky Mill Plant Limited Liability Company

Conclusion

Literature

Introduction

The financial resources of an economic entity always have two areas of practical application: part of the funds is invested (invested) in fixed assets for various purposes, the other part of the funds is advanced into working capital (working capital).

Working capital is important, first of all, from the standpoint of ensuring the continuity and efficiency of the current activities of the enterprise.

In financial activities, working capital plays an important role, since the financial condition, liquidity and solvency of the organization largely depend on the level of business activity, optimal use of working capital, assessment of its size and structure. Due to the fact that working capital forms the main share of the company's liquid assets, their value must be sufficient to ensure the rhythmic and uniform operation of the organization and, as a result, making a profit. Working capital management is aimed at meeting the current needs for financial resources to carry out statutory activities.

Economic assessment of the state of current assets is based on the use of indicators characterizing the degree of efficiency and usefulness of their use in the production process. Effective use of working capital plays a significant role in ensuring the normalization of the operation of the enterprise and increasing the level of profitability of production.

The policy for financing current assets is part of the general policy for managing its current assets, which consists in optimizing the volume and composition of financial sources of their formation (own and borrowed working capital) from the standpoint of ensuring the effective use of equity capital and sufficient financial stability of the enterprise.

Determining working capital requirements is integral part financial planning. The planned value of working capital is established through rationing, that is, determining the working capital standard. Rationing of working capital is the basis rational use economic assets of the enterprise.

The use of working capital in business activities should be carried out at a level that minimizes time and maximizes the speed of circulation of working capital and its transformation into real money supply for subsequent financing and the acquisition of new working capital. The purpose of the work is to assess the effectiveness of the formation and use of working capital of the enterprise.

working capital

Chapter 1. The role of working capital in ensuring the current activities of the enterprise

1.1 General concept of working capital. The role of working capital in the production process. Composition and structure of the enterprise's working capital

Working capital (working capital) is part of the enterprise's capital invested in its current (current) assets, which are renewed with a certain regularity to ensure current activities and, at a minimum, turn over once during the year or one production cycle. Working capital ranks second in size after fixed capital in the total volume of resources that determine the economy of an economic entity. The peculiarity of working capital is that they are not consumed, but are advanced. This ensures the continuity of the process of buying and selling goods. Unlike fixed capital, working capital during one production cycle completely transfers its value to the newly created product, and is reimbursed after each cycle in monetary form, and then in kind. Part of the working capital changes its physical form (raw materials, materials), part disappears without a trace as waste energy or gas.

Figure 1. Circulation of working capital

Figure 1 shows the circulation of working capital of the enterprise.

An enterprise's need for working capital depends on many factors:

Production and sales volumes;

The nature of the enterprise's activities;

Scale of activity;

Duration of the production cycle;

Enterprise capital structures;

Accounting policy of the enterprise and settlement system;

Conditions and practices of lending to the economic activity of an enterprise;

Level of logistics;

Types and structure of consumed raw materials;

The growth rate of production volumes and sales of the enterprise's products.

The structure of the working capital of the enterprise is presented in Figure 2.

Standardized working capital Non-standardized working capital

Figure 2. Structure of the working capital of the enterprise

Working capital in the practice of planning, accounting and evaluation is divided according to the following criteria:

By functional role in the production process: working capital and circulation funds.

The amount of working capital included in working production assets is determined by the organizational and technical level of production, the scope of activity, the scale of production and the duration of the production cycle of manufactured products. Working capital includes production inventories (raw materials, materials, fuel), work in progress, semi-finished products own production, Future expenses.

The amount of working capital included in the circulation funds is determined by the organization of marketing research and sales of products, the conditions for selling products, the distribution system, and methods of payment for products.

Any commercial organization, conducting production or other commercial activities, must have certain functioning property or active capital in the form of fixed and working capital.

Working capital is funds that serve the process of economic activity, participating simultaneously in the production process and in the process of selling products.

The management of the enterprise spends a long time on solving short-term financial problems related to the management of current assets. A key place is occupied by the problems of sufficiency of current assets, the mechanism for their planning and replenishment, and effective use.

Characteristics working capital:

Full consumption during one production cycle and full transfer of their value to newly created products;

Working capital, as the most liquid resources, is not spent or consumed, but they are constantly renewed in economic circulation;

During one turnover, circulating assets change their form from monetary to commodity and from commodity to monetary;

The absolute need for current assets depends on the volume of economic activity and therefore must be regulated

Rhythm, coherence and high performance The operation of an enterprise largely depends on its availability of working capital. A lack of funds advanced for the purchase of inventories can lead to a reduction in production and failure to fulfill the production program. Excessive diversion of funds into reserves that exceed the actual need leads to the deadening of resources and their ineffective use.

The concept of managing current assets comes down to providing the enterprise with a minimum amount of monetary resources to maintain its constant solvency (liquidity). It includes the following elements:

Accounting for all components of working capital at each reporting date;

Analysis of the state and reasons due to which negative trends have developed in providing the enterprise with current assets;

Development and implementation of economic services of the enterprise and modern techniques working capital management;

Control for current state essential elements current assets

According to the sources of formation, working capital is classified into own (about 40%), which are formed through deductions from profits, and borrowed (bank loan, accounts payable, receivables and other borrowed funds).

Based on the degree of liquidity, a distinction is made between slowly sold, quickly sold and absolutely liquid assets.

Slowly selling assets include: inventories, long-term receivables.

Quickly realizable assets include accounts receivable. Accounts receivable are converted into cash through certain deadlines. Current assets include accounts receivable whose repayment period does not exceed one year. It includes:

Accounts receivable from core activities;

Accounts receivable from financial transactions;

Advances to employees;

Funds on deposits.

Absolutely liquid assets include cash on hand and in bank accounts. 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. Thus, the criterion for assessing current assets, and the indicator characterizing the measure of the intensity of their use, is turnover.

Working capital of an enterprise performs two functions: production and settlement. Performing the production function, working capital, advanced into circulating production assets, maintains the continuity of the production process and transfers its value to the manufactured product. Upon completion of production, working capital passes into the sphere of circulation in the form of circulation funds, where they perform a second function, consisting in completing the circuit and converting working capital from a commodity form into money. Thus, according to their functional purpose, the working capital of an enterprise is divided into circulating production assets and circulation funds. Revolving funds include:

Inventory (raw materials, basic and auxiliary materials, fuel, purchased products and semi-finished products, containers, spare parts for repairs, low-value and wearable items at residual value);

Assets in the production process (work in progress,

The peculiarity of working capital is that under normal business conditions they are not spent, but are advanced into various types of current expenses of the enterprise, returning to their original value after the completion of each turnover. Working capital is always in motion, making a circuit, during which it goes through three stages, changing its shape.

At the first stage, working capital (money capital) is transferred from the monetary form to the commodity form. At the same time, objects of labor and labor are purchased, that is, production reserves are created.

At the second stage, production inventories, with the participation of tools and labor, are transformed into work in progress and, as the production process is completed, into finished products. This stage is the process of production consumption of inventories.

At stage 3, the industrial enterprise sells finished products, and the funds, released from the commodity, again take the form of money.

The circuit is considered complete when funds for sold products arrive in the company’s bank account and provide surplus value.

Current assets must ensure the continuity of the production process. To do this they must:

Be advanced (invested) in inventories;

Be at all stages of the production cycle simultaneously.

The absence of any element of current assets at any stage of production and sales may lead to its stop.

Considering current assets, we can distinguish them as positive sides, as well as individual shortcomings.

Positive points:

Monetary assets have a high degree of liquidity;

When regulating cash flows at an enterprise, individual elements of current assets are characterized by a transition from one type to another;

High-quality management of current assets allows you to increase the speed of their turnover and thereby reduce the enterprise’s need for working capital, etc.

However, current assets also have certain disadvantages:

The amount of current assets in that part that is in cash or in the form of accounts receivable is affected by the rate of inflation;

Excessive inventories of inventory lead to a slowdown in the turnover rate of current assets, which, in turn, leads to an additional need for working capital in the enterprise. At the same time, the company’s costs for storing excess inventory items increase.