Every enterprise has a certain margin of working capital.They consist of funds-treatment (SE stock, shipped products, etc.) and current assets (materials as the main and auxiliary, raw materials, instruments of labor, which is spent in one production cycle, and hence the cost is transferred to the manufactured goodsand services all at once).
Efficiency of working capital due to a variety of factors.If the internal are directly dependent on the activity of the organization, external have an impact regardless of the interests of the company and its activities.These include:
- the country's economy as a whole;
- especially legislation, in particular, the tax;
- interest rates on credit products and their production conditions;
- targeted financing;
- Other.
Given these features, the company's management can make the most optimal management plan of their own resources.
Efficiency of working capital is characterized by specific indicators coefficients:
- Turnover (Cob).
- duration 1 turnover in days (Cob / day).
- load funds 1 turnover (Kzag / v) .Ekonomicheskaya efficient use of working capital is as follows: the company actively engages in the production process of working capital, the lower the costs to be incurred for the production.Thus, released reserves to increase production, modernization of equipment, introduction of new equipment, technology and others.
Any enterprise has significant opportunities to increase the efficiency of working capital.If we talk about the production, the biggest reserves inherent in stocks.Of course, they are required to ensure continuity of the production process, but at the same time they are not participating in the production.To organize the efficient use of reserves of the enterprise and their reduction must be their rational use.Also, the following measures are appropriate:
- effective organization storage,
- improving valuation,
- improvement of supplying enterprise policy.
If the company's management has set itself the goal of significantly improving the efficiency of working capital, and will close the improvement of the production process, equipment and production technology, it will be possible to achieve reduction of the period of stay current assets in the process of work in progress that will have a positive impact on all areas of the organization.
Also for such a measure, the efficiency of working capital, it is important to prevent excessive funding of treatment as current assets are only helping to bring the goods, works or services to the public.To do this efficiently organize sales service, to apply modern methods of calculation, to maintain discipline.If the turnover rate will increase, certainly free up resources that can be used to meet the current needs of the organization.
