Working capital of the enterprise

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customary to distinguish between fixed and working capital of the enterprise.Under the main material factors meant durables.We are talking about buildings, machinery, equipment and so on.Working capital of the enterprise is constantly changing, as it is spent on the purchase of the necessary funds for a particular cycle.Below it is possible to understand the salary for the employees, funds for the purchase of raw materials and so on.

Working capital enterprise

Each production process is a combination of the means of production with labor.As mentioned above, they are the working capital of the enterprise.Current assets - a major element of production.They help businesses to function continuously.

Current assets - this means money, which the management of advances to create productive assets, as well as various types of foundations treatment.

industrial use revolving funds refers to the means of production involved in the production process only once, bringing their value to manufactured products, losing its own natural-material form.These are the raw materials, components, work clothes and so on.

in the Fund include treatment means that somehow the process of service sales.In the manufacturing process, they do not take part, but the need to ensure the unity of implementation and production.

Working capital organization is in constant motion, it can operate in several areas simultaneously.Circuit stages of the production cycle stages:

- current assets transferred from the money-form into the shape of a commodity.That is going procurement of labor;

- enter production, working capital, are transformed into finished products;

- finished products sold to consumers - that is coming true.Working capital at this stage of the newly transferred in cash.

Part of cash will continue to re-use for the purchase of objects, providing the process of labor and so on.

continuous production process is achieved in that the circulating means are simultaneously in each of the three stages.At these stages, they are not the same amount of time.It depends on the specific situation and certain factors (factors marketing and so forth).Delay working capital could cause serious trouble.

working capital for the company to classify:

- the turnover.It is divided into funds treatment, as well as current operating assets.

- coverage of valuation.In this case, it is divided into means of nonnormable and regulated.Regulated funds set minimum sizes, and nonstandardized established on the basis of evidence.

- sources of formation.This refers to the division into equity and debt.As the name implies, the company owned its own and borrowed - to someone else.The organizations do often have to resort to all sorts of loans.The need for them arises when the detected lack its own resources.

structure of working capital - is the ratio of the individual elements in their totality.Its analysis can be very useful, since it is an excellent way to diagnose the financial condition of the company.If it can find that the finished product is sold poorly, current assets used inefficiently.It also makes it possible to establish the circumstances under which the profit would have been much more.To conduct such an analysis should be experts.