Of course "Business Economics" to each graduate of the Faculty of Economics knows that working capital is a kind of combination of different assets and funds treatment is not in physical and monetary terms.The activities of any company should be evaluated properly, it is often for analyzing statistical information - namely, the turnover ratio . main objective of production assets - the scope of this service in the undertaking, and the funds involved in handling the relevant field.We also know that the most basic conditions for efficient production and marketing require constant availability of stocks of wealth in the industrial warehouses.These values largely consumed directly in the production process and during storage, or maintenance of finished products.To characterize the statistical data in the enterprise is constantly used turnover ratios.
Based on this, working capital can be called those assets of the company, which in the production process are fully capable to carry its own value to the newly created product, but they can only once participate in such a process, and then lose their original form or change it.
These indicators provide an opportunity to analyze the dynamics of the activity of the enterprise and to generate further policy development.One such indicator experts called load factor of working capital.It can help you find out how much working capital has come from a unit of commodity products.To determine this ratio is easy enough, you just need to calculate the ratio of the average balance of current assets to total sales of products now.
Based on this we can conclude the existence of a reverse indicator that would describe the number of revolutions of the assets of the enterprise for the period.That indicator is the turnover ratio, which is calculated as the ratio of the volume of sales to the average balance of current assets on the balance sheet of the company.
This ratio is an indicator of the intensity of the use of the financial obligations of the company or its assets, that is, the speed or the amount of their turnover for the selected time.
turnover ratio may have several variations, among them are the following:
1. The ratio of revenue for the year to the average value of current assets - is the turnover of circulating assets.
2. The ratio of the annual revenue from sales and cost of inventory - the inventory turnover.
And there are many factors, because this versatile indicator provides an opportunity to analyze the flow of all assets of the enterprise and to identify the most needed or, on the contrary, unnecessary resources.
That is, if the calculation has been revealed that the annual turnover ratio of any asset is equal to three, it means nothing more than the number of revolutions of these resources for the twelve months.
should also pay attention to the indicators of the valuation of current assets, which are used as development and formation of regulations and norms of consumption of assets that are necessary for the continued availability of minimum reserves of the company.All funds of the company can be divided into normalized and nonnormable.This refers to the first inventories, while the second - monetary assets, finished products, as well as receivables.
Current assets occupy an important part among the other assets of the enterprise, so their analysis is an integral part of the formation of plans and forecasts for production, as well as its implementation.
