economic situation of any business is largely dependent on how quickly they invested in the development of production, to monetize.In economic science is "transformation" is characterized by the concept of turnover, and therefore the analysis of working capital serves a very important factor in the economic success of the business.The reasons for this dependence is that the turnover rate directly determines:
- the amount of capital advanced;
- the payment of interest on the loan;
- the need to attract additional investment resources;
- the amount of the cost of ownership of software resources and their storage;
- the amount of taxes paid.
this reason, the analysis of working capital ensures effective management of assets, and, in addition, is considered as a tool to proactively address the need for them.
duration of the period of stay in the back due to a number of factors, which include, in particular, the scope of activities of the company and its industry orientation, as well as the value of the enterprise
In the most general terms, current assets represent a portion of the total capital, which is usedto replenish current assets.For this part of the capital belongs to the objects of labor, now produced finished products, as well as being at this stage of turnover funds.Their peculiarity is that these resources tend to have very high turnover parameters, and therefore differ significantly from the equity capital.Actually this explains their functionality - current assets is primarily designed to serve the interests and needs of current production.Case another situation and that if we consider, for example, the real component, the analysis is working capital should be understood that these elements during the manufacturing process lose their natural form and fully included in the cost of the final product.
itself turnover this capital includes three main stages: procurement, production and follow- up.As a rule, each economic activity begins with the money used to purchase a certain amount of resources for production or trade.At this stage, current resources are converted into production and go out of production in material form.At the production stage, resources are transformed into marketable form, respectively, and current assets as well.Well, and, finally, in the implementation phase current resources are converted into cash.Just analysis of working capital and must determine which of them are in the sphere of production, which in the sphere of circulation, it is designed to give a professional assessment of the values of shipped products, accounts receivable, in a word all the elements of the structure of working capital.
sustainable management is possible only on terms of its compliance with certain principles of the use of current resources: optimal structure, economical consumption, stockpiling, rational distribution and redistribution, to minimize the time spent in the reserves.These principles in fact and fix the problems that aims to provide a modern method of analysis of working capital.For example, the objective results of the analysis of their structures can provide significant savings in resources for funding needs.For their assessment of such factors are:
- net assets, the parameters characterizing the needs of the company in such a resource, as working capital;
- liquidity, reflecting the overall financial condition of the building working capital.They are in some ways are conditional, because of their use in the analysis of working capital should be cautious.
Working capital is an important resource for the effective functioning of this enterprise.In this operation of the main components are the following stages of the economic process, as production and sale.Analysis and performance efficient use of working capital are designed to optimize these steps first.
