Net working capital - is the company's resources, which it invests in the ongoing process of the production cycle.Material, labor, natural and financial assets of the company are used for the expression of certain objective and subjective relationships that develop in parallel with the development of the business case.
Net working capital is directly involved in the emergence of new value, making the operation of the circuit in the processes of the total capital of the organization.His relation to the size of the main index of production capacity has a direct impact on the size of the income from the sale of goods.Current and non-current assets are treated during the production process at different speeds.Material, labor and financial resources of the company have a little time going through the complete cycle.That is why a larger percentage of the share of current assets to total capital reduces the total time required to complete the work cycles.This, in turn, contributes to the new value, i.e. gains.
In a market economy, its own working capital of business entities is a single organic complex, which is involved in the general circulation of funds.Its main component - are financial resources that are invested in stocks of companies and funds handling.Their presence is a prerequisite for the functioning of the production and marketing of goods.
Net working capital of any company makes the circuit is continuous.Funds in the form of resource companies make the movement of the treatment sector in the manufacturing sector, and then back.Passing series three phase current assets change their real-life form.
first phase is characterized by the transfer of funds, which belong to the sphere of circulation, in the stocks, that is, in the sector of the production cycle.The second phase is characterized by movements in working capital by converting existing resources in semi-finished products, work in progress and finished goods.The third stage of the circuit relates to the implementation of the goods released.At this stage, its own working capital once again takes the form of cash.
Sources of enterprise assets are divided into two types: personal and engaging.The leading role in the commercial activities of the company plays a first type of capital.That organization's own funds ensure its sustainability in financial terms, and the ability to pursue an independent economic activity.If the company passed the privatization process, all available resources are fully in his possession.Companies are entitled to engage in their sale and transfer to other legal entities and citizens.By decision of the own resources of the enterprise may be leased, etc.Attracted by the financial resources, which are bank loans, help to ensure additional needs of the company in the media.
's working capital, the formula for calculating which is the difference between the amount of debt receivable and the amount of stocks with an index of accounts payable (it does not include loans and short-term loans), is analyzed by comparing these values for different periods.The growth of this figure indicates an increase in solvency and liquidity of the company.
