In a market economy, the stability of the company's position is largely due to its activity in the work, which depends on the goodwill, efficient use of resources, breadth of markets, economic stability.
in the financial aspects of the activity shown its rate of turnover means that allows you to analyze the turnover ratio of current assets and other indicators.
importance of indicators describing the turnover of funds, explained by the fact that they show a company's profitability.
asset turnover ratio (the impact of resources) allows you to see the turnover rate of the total capital of the company in the aggregate.It shows how many times the full cycle of production and circulation for the period, or any number of monetary units gave each unit.
turnover ratio is calculated by dividing the net proceeds received from the sale, at an average annual cost of capital.The indicator provides an assessment of the effectiveness of the asset regardless of their source.Determination of the impact of resources shows the amount of profit received from each ruble invested in assets.From
turnover rate depends on the financial condition of the company, its liquidity and solvency.An important indicator of the impact of resources are the period and the rate of turnover.The latter shows how many turns of the capital was for a certain period of time.The average period for which it will return invested in commercial operations or production resources, called the period of turnover.
Low turnover (goods, for example) indicates the low efficiency of the firm's assets.
turnover ratio of current assets
characteristic turnover rate of payment until the return of the money for the sold material values to the bank account serves the turnover of funds (negotiable).Their sum is calculated based on the total size, subtract the balance of assets in the current account.
working capital turnover ratio is calculated as the ratio of gross income (revenue) from sales of goods to the amount of working capital of the company.The calculation can not take into account the VAT and excise duty.With a decrease in this indicator can be said that there is a delay of turnover.
If there is an acceleration of turnover at constant volume of sales, the company will have to use less working capital.With an increase in turnover, the company spends less inverse funds, which allows him to use the material and financial resources more efficiently.Current assets released from production, can be used in other industries.So, working capital turnover ratio shows the entire set of processes in the company: lower capital intensity, increased productivity growth.
main factors influencing the turnover of circulating assets are the shortening of the overall process cycle, improving the marketing and supply, improvement of production and technology, efficient organization of the estimated payment relations.
accounts receivable turnover ratio
enterprises in operation have to give commodity credits to consumers, resulting in accumulated receivables.The index determines the amount of its turnover for the year of revolutions of the funds invested in the calculations.
