The need for working capital does not depend on. Determining the need for working capital

20.09.2019

Andrey Yakovlev
company financial analyst
"Service-Product"
Magazine " Financial management"
No. 7-8 (85) July-August 2009

What is the company's need for working capital in the current financial fashion to reduce? An analysis of the enterprise will help answer.

Today, the "buoyancy" of an enterprise largely depends on how the work with suppliers and buyers is built, or rather, how balanced the company's accounts payable and accounts receivable are. It is these two parameters that mainly determine the need for business debt financing, if we do not take into account all kinds of investment projects to create new and modernize existing production and trading capacities, which are currently frozen at most enterprises. And in order to determine the company's needs for borrowed money, it is better to start with an analysis of the sales structure, existing margins, the turnover period for accounts payable and receivable, as well as the timing of the goods in transit and in the warehouse.

What data is required

Let's consider how the need for borrowed funds is calculated using the example of the trading company "Service-Product". The company specializes in the distribution of alcoholic and juice products, in the range of about 2000 items, of which the most popular items are about 200. Purchases are made directly from manufacturers, respectively, for each supplier the range of products supplied is unique. Like the vast majority Russian companies, Service-Product faced an acute shortage of borrowed funds due to the crisis.

Table 1 Calculation of the financial cycle of the company (days)

Counterparty name	Deferred payment provided by suppliers	Deferred payment provided to customers	Time for delivery of goods	Stock of goods in stock	Financial cycle of the company (group 3 + group 4 + group 5-group 2)
Supplier No. 1	30	35**	5	21	31
Retail	-*	30	-	-	26
networks	-	45		-	41
Supplier No. 2	45	35	0	14	4
Retail	-	30	-	-	-1
networks		45		-	14
For the company as a whole	39 (30 x 41% + 45 x 59%)***	35(35X41% + 35X59%)	2 (5 X 41% +0 X 59%)	17(21 X 41% + 14 X 59%)	15

* The indicator does not depend on where the goods will be sold - retail or wholesale to the distribution network.

** Deferred payment granted to customers is calculated by the formula (Deferred payment for retail customers X Their share in turnover determined in purchase prices + Deferred payment for networks X Share in turnover determined in purchase prices).

*** Elements of the financial cycle for the company as a whole are determined taking into account the shares of suppliers in the company's turnover, determined in purchase prices.

The calculation of the need for debt financing and the search for ways to reduce it began with the collection and systematization of indicators characterizing business activity (see Table 1), namely:

the duration of the deferred payment provided by the supplier (accounts payable turnover period);

the terms during which buyers pay for the goods purchased from the "Service Product" (receivables turnover period);

the time of storage of goods in the warehouse and the presence of goods in transit.

All of this information was obtained from contracts with suppliers and contractors and from management records. For example, in an effort not to lose the trust of suppliers, "Service-Product" does not allow even the slightest delay in payments. Therefore, to calculate the financial cycle of the enterprise, contractual deferrals provided by suppliers were used.

With regard to the maturity of accounts receivable by customers, the situation is different. Not all of them can boast of strict payment discipline, therefore, the terms during which buyers pay for the products supplied to them were determined as the average period of receivables turnover for the previous month.

The time spent by the goods in transit is data from the management accounting of the company. And we are talking about the terms of delivery of goods from suppliers, but the time for transportation to the client is not taken into account. This is due to the fact that the contracts under which Service-Product operates assume that the moment of delivery of the goods is the date of its shipment from the manufacturer's warehouse.

To determine the time of storage of goods in the warehouse, a twofold approach was used. For a number of suppliers, this characteristic is determined on the basis of concluded contracts. This is due to the fact that some manufacturers oblige the distributor to keep a certain amount of their products - for example, the minimum balance of goods must be at least five days of sales volume. This requirement is strictly observed in the Service-Product, however, there are no stocks exceeding the standard established by the manufacturer. For the products of other suppliers that do not impose such restrictions on the distributor, the shelf life of their products was determined as the inventory turnover period based on the previous month's statistics.

In addition to the above data, in order to calculate the need for debt financing, Service-Product needed to determine the turnover in purchase prices (the cost of goods supplied by manufacturers). Moreover, accounting data preferred a more complex approach to determining this indicator. Its essence boils down to an analysis of the structure of turnover and markups that apply to goods from different manufacturers (see Table 2). In the course of work on optimizing the financial cycle, these data will be needed to analyze how certain management initiatives will affect the financial performance of the company. Let's make a reservation right away that such a solution became possible due to the fact that trade margins are tied to suppliers, and not to specific names or categories of their goods. This is a fairly standard pricing practice for many distribution companies.

Table 2 Main indicators of the trading company for the month

Counterparty name	Share in turnover, %	Turnover, rub.	Markup, %	Gross profit, rub.*	Turnover in purchase prices, rub.	Share in turnover in purchase prices, %
Supplier No. 1	40	4 000 000	13	474308	3 525 692	41
Retail	70	2 800 000	15	365 217	2 434 783	69
networks	30	1 200 000	10	109 091	1 090 909	31
Supplier No. 2	60	6 000 000	18	934 783	5 065 217	59
Retail	70	4 200 000	20	700 000	3 500 000	69
networks	30	1 800 000	15	234 783	1 565 217	31
Total	100	10 000000	16	1409 091	8 590 909	100

* Gross profit in rubles per month = Turnover: (1 + Margin) x Margin.

Calculation of the need for debt financing

The need for debt financing can be determined as the difference between the available companies in this moment own working capital and the amount of working capital necessary to maintain the existing financial cycle.

The amount of available own working capital is calculated based on the balance sheet data using the following formula:

Own working capital \u003d Equity capital (p. 490) + Long-term liabilities (p. 590) - Non-current assets (p. 190).

Of course, ideally, you will have to draw up a management balance sheet so that the data contained in it are relevant at the time of the calculations.

And the amount of working capital required by the company can be calculated as the product of turnover in purchase prices and the company's financial cycle (reduced to 30 days), which is determined by the classical formula:

Fiscal Cycle (Days) = Customer Deferral (Days) + Delivery Deferral (Days) + Inventory Hold Time (Days) - Vendor Deferral (Days).

By the way, the logic of calculating the financial cycle manufacturing enterprise will be similar in many respects, with the only difference that the formula will add the time spent on the production of products, and the shelf life of stocks will need to be calculated separately for stocks finished products, semi-finished products, raw materials and materials.

Example 1

Own current assets of the trade enterprise amount to 4 million rubles. The financial cycle for the company as a whole is 15 days (see Table 1 on page 21), and the turnover in purchase prices is 8,590,909 rubles (see Table 2 on page 22). Accordingly, in order to work with suppliers and customers on the same terms, the company needs 4,295,455 rubles of working capital (8,590,909 rubles X 15 days: 30 days). Hence the need for financing to replenish working capital is 295,455 rubles (4,295,455 - 4,000,000). (On the journal's website www.fd.ru, you can download the MS Excel file, which contains all the calculations described in the article - for this you need to click on the link "Additional material" located next to the title of this article.)

Is it worth changing something in working with contractors

By itself, the calculation of the need for funding is undoubtedly useful. CFO the enterprise receives a clear reference point, in fact, this is exactly what the limit on the credit line should be, about which it is necessary to negotiate with banks. But in a crisis, when bankers are extremely wary of borrowers, getting the necessary funding is problematic. However, using the data collected in the previous stages, it is possible to develop a set of solutions that will help the company to become less dependent on bank financing and assess the risks and losses associated with them.

As a rule, such measures come down to the fact that the payment delays provided to customers are reduced, and, conversely, the terms of payment to suppliers are increased.

Example 2

Let's take the previous example. Suppose a company managed to increase the delay in payment under contracts with suppliers by 3 days and reduce the time allotted for paying for goods delivered to customers by the same amount. In addition, it turned out to reduce inventory to 14 days and get rid of the loss of time for delivery - 2 days (of course, the time for transportation will not go anywhere, but in the contract with the supplier you can specify that delivery is considered the date the goods arrive at the distributor's warehouse, and not the moment of shipment from the seller's warehouse). Then the financial cycle of the enterprise will no longer be 15 days, but only 4 days. Accordingly, the amount of working capital required for the company's operations will be RUB 1,145,455 (RUB 8,590,909 X 4 days: RUB 30). At the same time, the need for credit resources will disappear, and moreover, 2,854,545 rubles (4,000,000 - 1,145,455) can be invested.

At the same time, when calculating the future increase in cash flow, do not forget about the risk:

an increase in the number of late payments by customers;

increase in uncollectible receivables;

untimely payment for goods shipped by suppliers and the subsequent accrual of penalties;

reduction in turnover due to the lack of any demanded goods in the warehouse.

Perhaps the only difficulty and certain subjectivity in such calculations is the assessment of how the analyzed indicator will change after the optimization of the financial cycle. Most often, the entire calculation is based on expert judgments. However, in the practice of the Service-Product company, data obtained from the analysis of accumulated statistics is often used. Let us illustrate how this works in relation to the risk of an increase in bad receivables after the reduction of customer payment deferrals. In the company's practice, a situation has developed in which no more than 5 percent of the total volume of products supplied to customers remains unpaid by buyers. Oddly enough, it works here psychological factor: since they have reduced the deferred payment for me, then I will collect products from them and will not pay until they drag me to court. According to the company's statistics, a decrease in deferral to customers results in an increase in uncollectible receivables by 0.05 percent. Accordingly, planning to once again reduce the delay in payment to counterparties, the company's management assumes that the increase in the volume of non-payments will not exceed 0.05 percent. And the losses associated with such a decision can be estimated as the product of existing bad receivables by 0.05 percent. By analogy, you can act in relation to all other risks.

By the way, developing measures to optimize the need for working capital, it will be quite justified if we consider the savings and additional costs not in general, but for each specific initiative: increasing the delay in payment of debts to suppliers, reducing inventory, etc. The fact is that some decisions will be unprofitable for the enterprise, which may remain unnoticed if you calculate only "total savings from the complex shortening of the financial cycle" and "total additional losses associated with planned changes".

Each enterprise seeks to increase the efficiency of the use of its capital. The profitability of the organization, its market value and stable development in the future depend on this. It is for this reason that the relevant departments of each enterprise tirelessly conduct analytical studies of various economic indicators. This allows you to evaluate the effectiveness of the organization.

One of the important issues in the conduct of the study is the assessment is carried out according to the established methodology. How this part of the assets of the enterprise is controlled will be discussed later.

Characteristic

Determine the need for working capital allows a certain methodology, which is actively used by the analytical service of almost every modern enterprise. This is necessary for certain reasons.

The capital that takes part in the turnover is used to organize technological cycles. It is completely consumed within one production period and changes its form. First, financial resources are directed to various technological operations. Then the finished product is obtained, which goes on sale. After its implementation, the organization receives a profit.

In other words, current assets are completely consumed during one cycle. It is for this reason that they are called revolving. The faster these resources are converted back into money, the more profit the company has. If such funds are accumulated at the enterprise more than necessary, the capital is operated inefficiently. With a lack of current assets, there are failures in production technology, downtime of equipment. This is also a negative thing.

Composition and sources of formation

Enterprises in working capital allows you to optimize the amount financial resources. In this case, the speed of one production cycle will be optimal. The company will be able to get the maximum profit from the use of its available resources.

Working capital includes inventories, finished goods, work in progress, cash on hand, and loan funds provided to buyers. The listed balance sheet items can be formed from both own and borrowed sources of financing.

It is the structural consideration of assets in circulation that makes it possible to make a decision on measures to improve the situation in production. It should also be taken into account that the use of own sources of financing is cheaper for the organization. However, harmonious expansion in practice is impossible without the involvement of borrowed working capital.

Rationing

For each organization is made taking into account the peculiarities of its functioning. The indicator of the amount of resources for the technological cycle is affected by its duration, market, conditions of accounts payable and receivable.

One of the effective methods for determining the need for assets for carrying out production activities is normalization. This is the optimal amount of each article of assets in circulation, which is able to ensure the continuous release of finished products, the fulfillment of the production and sale plan.

Each enterprise operates in special conditions. The established amount of working resources for one enterprise may not be suitable for another organization. Therefore, when choosing normative values of all articles take into account the peculiarities of the company's work within a particular industry. Compare several competing companies.

Methods of determination

There are several ways determining the needs of the enterprise in working capital. Analysts use one of the following methods. The first technique is called the coefficient approach. This method involves dividing existing working resources according to the degree of their change under the influence of production volume. Based on this information, a decision is made on the need to increase or decrease the amount of funds in circulation.

The second approach is called the analytical method. It takes into account the value of the actual average balances of funds for each item. At the same time, the rate of production growth is also taken into account.

The third approach is called direct counting. He assumes precise definition norms for each article of assets in circulation. The fourth category includes all other approaches. This can be, for example, a graphical method, expert judgment, etc.

Normalization procedure

It is rationing that is one of the most popular ways to determine the need for a technological cycle in financial resources. In the course of calculations, the minimum amount of funds that is necessary for each production operation for its uninterrupted flow is determined.

First, the required amount of resources for each individual element of current assets is determined. It is estimated how quickly this or that resource is spent, as well as what are its real reserves in the enterprise. Next is the total need of the enterprise in financial resources. To do this, the analytical service performs a simple calculation. Helps to identify the need for working capital formula:OH \u003d Rd * NZ \u003d O / T * NZ, where OH is the standard for a certain article of working capital, Rd is the daily expense of own funds to finance turnover for a separate article, O is the expenditure of funds for a certain period, T is the duration of the study period, NZ is the reserve rate for a specific element.

After defining the norms for each separate article, they are summed up. This allows you to determine the total need of the organization in financial sources to finance production activities.

Analytical Method

can be calculated various methods. One popular approach is the analytical approach. This calculation option is suitable for those organizations that do not plan to make large-scale changes in their work in the future.

The presented approach makes it possible to determine the norms in an enlarged form. This takes into account the growth rate of production in the future period and existing needs for financial resources in the past. The adjustment is made under the influence of changes in the planned volume of output.

Analytical Method Calculation Example

The analytical method allows you to calculate the required amount working capital. Determining the need for working capital can be seen with an example. The company produced products last year at a cost of 530 thousand rubles. Actual balances at the beginning of the period under review were: I quarter - 34 thousand rubles, II quarter - 20 thousand rubles, III quarter - 22 thousand rubles, IV quarter - 28 thousand rubles. It is planned that this indicator at the beginning next year will amount to 30 thousand rubles. The output will increase. The cost of sales will be, according to the plan, 750 thousand rubles.

The analytical method involves a certain calculation. The average balance of working resources is determined:

OS \u003d (0.5 * 34 + 20 + 22 + 28 + 0.5 * 30) / (5-1) \u003d 25.5 thousand rubles.

One-day issue in fact is: 530/360 = 1.47 thousand rubles.

Stock rate last year is calculated in days: 25.5 / 1.47 = 17.34 days

In the planned period, the company will produce daily products in the amount of: 750/360 = 2.08 thousand rubles.

By analogy with last year, the norm of working resources in the planned period will be: 17.34 * 2.08 = 36.07 thousand rubles.

Regression analysis

The above method is not always possible. It cannot be applied in the process of planning non-standardized resources in circulation. These include accounts receivable, financial investments and cash on hand.

The presented methodology allows you to determine the number of current assets in the planning period, taking into account one important nuance. This is the regression coefficient. It is characterized by the dependence of the amount of working capital on changes in the volume of production.

Calculation in regression analysis

Determining the need for working capital of the corporation, enterprises can be performed by calculating the regression method. For this, a certain formula is used: ON \u003d OS + Kr * SP, where PO is the enterprise's planned need for working capital, OS is the amount of working capital, which does not depend on the volume of production, Kp is the regression coefficient (shows how much the number of assets in circulation changes with an increase or decrease in output), SP is the cost of production.

The calculation is also made for each item of current assets separately. This allows us to take into account their specifics, to identify ways to improve the use of financial resources by the enterprise. After that, the obtained values are summarized.

It should be noted that in order to calculate the norms for stocks, the indicator of the cost of finished products is used for calculations. To calculate this indicator in the study of receivables, financial investments, the indicator of sales proceeds is used.

Comparison of methods

The methods presented above allow you to calculate the required amount working capital. Determining the need for working capital for each case is carried out using a specific technique. For current planning, the direct counting approach or the analytical method should be used. The coefficient method is suitable for long-term planning.

In the context of the need for financial resources for each element, the most detailed picture is presented. However, this approach is characterized by rather great complexity.

The calculation and analytical approach will help to identify internal reserves. They will help the company maximize the efficiency of using its own funds. However, this approach, like the method of coefficients, does not allow to cover the features of the organization's work. Therefore, depending on the purpose of the analysis, it is necessary to select suitable method calculation.

Ways to improve the situation

In the course of the financial analysis out of sight should not be missed working capital. Determining the need for working capital is an important part of the study of the company's financial performance. Identification of the need for working capital allows you to optimize the capital structure.

If large surpluses of financial resources are found in circulation, it is necessary to take measures to reduce them. special attention deserves accounts receivable and inventory. For some organizations, it remains relevant to improve the rationing procedure itself. In this case, financial resources will be spent deliberately and expediently.

In order to increase the efficiency of turnover financing, in some cases it is necessary to modernize warehouse equipment, supply chain management and other areas.

Having considered the features of the calculation working capital needs as well as the importance of conducting such a study, it is possible to correctly assess the amount of financial resources of the enterprise that are directed to conduct technological cycles.

Determining the needs of the enterprise in its own working capital is carried out in the process of rationing, i.e. determination of the standard of working capital. The purpose of rationing is to determine the rational amount of working capital diverted to certain period into the sphere of production and circulation.

Consumption rate material resources- this is the maximum allowable planned value of the consumption of raw materials (materials or fuel) that can be spent to produce a unit of output (or work).

The structure of the consumption rate is the composition and quantitative ratio of individual elements that form the consumption rate of material resources for the production of a unit of output. Its improvement consists in increasing the share of useful consumption in the norm.

In addition to the norm, there is also the concept of "norm". Consumption rates are element-by-element components of the rate. Their purpose is to serve as the basis for establishing norms or to act as norms that determine the consumption of certain material resources per unit of surface, mass, length.

The following main methods of normalization of working capital are used: direct account, analytical, coefficient.

The direct account method provides for a reasonable calculation of stocks for each element of working capital, taking into account all changes in the level of organizational and technical development of the enterprise, transportation of goods material assets, the practice of settlements between enterprises. This method, being very time-consuming, requires highly qualified economists, involvement of employees of many enterprise services (supply, legal, product marketing, production department, accounting) in the rationing. But this allows you to most accurately calculate the company's need for working capital.

The analytical method is used in the case when the planning period does not provide for significant changes in the conditions of the enterprise in comparison with the previous one. With the available working capital, their actual stocks are adjusted, and excess ones are eliminated.

With the coefficient method new standard is determined on the basis of the standard of the previous period by making changes to it, taking into account the conditions of production, supply, sale of products (works, services), settlements.

Analytical and coefficient methods are applicable to those enterprises that have been operating for more than a year, have basically formed a production program and organized the production process and do not have enough qualified economists for more detailed work in the field of working capital planning. In practice, the most common method of direct counting (advantage: reliability, the most accurate calculations of private and aggregate standards).

Features of various elements of working capital determine the specifics of their rationing.

Sincerely, Young Analyst

Analysis of the use of working capital of the enterprise

Determination of the company's need for working capital

Composition and classification of working capital

An indispensable condition for the implementation of the enterprise economic activity is the availability of working capital (working capital). working capital- these are funds advanced to working capital and circulation funds.

The essence of working capital is determined by their economic role, the need to ensure production process, which includes both the production process and the circulation process. Unlike fixed assets, which repeatedly participate in the production process, working capital operates in only one production cycle and, regardless of the method of production consumption, fully transfers its value to the finished product.

Current assets of the enterprise exist in the sphere of production and in the sphere of circulation. Circulating production assets and circulation funds are divided into various elements that make up the material structure of working capital.

Elements of working capital. Working capital assets include:

· productive reserves;

work in progress and semi-finished products of own production;

· Future expenses.

Productive reserves- these are objects of labor prepared for launching into the production process. In their composition, in turn, the following elements can be distinguished: raw materials, basic and auxiliary materials, fuel, fuel, purchased semi-finished products and components, packaging and packaging materials, spare parts for current repairs, low-value and wearing items.

Unfinished production and semi-finished products of own production- these are objects of labor that have entered the production process: materials, parts, components and products that are in the process of processing or assembly, as well as semi-finished products of their own manufacture, not completely finished by production in one workshop and subject to further processing in other workshops of the same enterprise.

Future expenses- these are intangible elements of working capital, including the costs of preparing and developing new products that are produced in a given period (quarter, year), but are attributed to products of a future period.

The circulation funds consist of the following items:

finished products in warehouses;

goods in transit (shipped products);

· cash;

funds in settlements with consumers of products.

The ratio between the individual elements of working capital or their constituent parts called working capital structure. So, in the reproductive structure, the ratio of circulating production assets and circulation funds is on average 4:1. In the structure of industrial stocks on average in the industry, the main place (about 1/4) is occupied by raw materials and basic materials, the share of spare parts and containers is much lower (about 3%). Inventories themselves have a higher proportion in fuel and material-intensive industries. The structure of working capital depends on the sectoral affiliation of the enterprise, the nature and characteristics of the organization of production activities, the conditions of supply and marketing, settlements with consumers and suppliers.

Standardized and non-standardized working capital. The specified elements of working capital are grouped in various ways. Usually, two groups are distinguished, differing in the degree of planning: standardized and non-standardized working capital. Rationing- this is the establishment of economically justified (planned) stock standards and standards for the elements of working capital necessary for the normal operation of the enterprise. Normalized working capital usually includes working capital and finished products. The circulation funds are usually non-standardized.

Sources of working capital formation. Among the sources used for the formation of working capital, there are own, borrowed and borrowed funds.

Overall size own working capital set by the company itself. It is usually defined minimum requirement funds for the formation of the necessary stocks of inventory items, for ensuring the planned volumes of production and sales of products, as well as for making payments on time.

In the process of financial planning, the enterprise takes into account the growth and reduction of the norms of own working capital, defined as the difference between the norms at the end and beginning of the planning period. The increase in the standard of own working capital is financed primarily at the expense of own resources.

Along with profit, the so-called stable liabilities are used to replenish own working capital, which are equated to own funds. Sustainable liabilities are those that are constantly used by the enterprise in circulation, although they do not belong to it (for example, a reserve of future payments of the minimum debt to workers and employees for wages, social insurance contributions, etc.), etc.).

As sustainable liabilities are the normal, month-to-month arrears of wages and social security contributions, the balance of the repair (reserve) fund, consumer funds on pledges for returnable packaging, and a reserve of future payments. Since these funds are constantly in circulation, enterprises and their size fluctuate significantly throughout the year, their minimum amount in a given year is used as a source for the formation of equivalent working capital.

During the year, the need of enterprises for working capital may change, so it is not advisable to fully form working capital from their own sources. "This would lead to the formation of surpluses of working capital at certain points and the weakening of incentives for their economical use. The enterprise therefore uses to finance working capital borrowed funds.

Additional need for working capital, due to temporary needs, is provided by short-term bank loans.

In addition to own and borrowed funds, the company's turnover includes involved funds. These are accounts payable of all types, as well as funds for targeted financing before they are used for their intended purpose.

Determining the needs of the enterprise in its own working capital is carried out in the process of rationing, i.e. definitions working capital ratio.

The purpose of rationing is to determine the rational amount of working capital diverted for a certain period into the sphere of production and the sphere of circulation.

Normalization order. The need for working capital is determined by the enterprise when compiling financial plan. The value of the standard is not constant. The amount of working capital depends on the volume of production, conditions of supply and marketing, the range of products, the forms of payment used.

When calculating the needs of the enterprise in its own working capital, the following should be taken into account. Own working capital should cover the needs of not only the main production for the implementation of the production program, but also the needs of auxiliary and auxiliary industries, housing and communal services and other facilities that are not related to the main activity of the enterprise and are not on an independent balance sheet, as well as for major repairs, implemented on your own. In practice, however, they often take into account the need for own working capital only for the main activity of the enterprise, thereby underestimating this need.

Rationing of working capital is carried out in monetary terms. The basis for determining the need for them is the cost estimate for the production of products (works, services) for the planned period. At the same time, for enterprises with a non-seasonal nature of production, it is advisable to take the data of the fourth quarter as the basis for calculations, in which the volume of production, as a rule, is the largest in the annual program. For enterprises with a seasonal nature of production - the data of the quarter with the smallest volume of production, since the seasonal need for additional working capital is provided by short-term bank loans.

To determine the standard, the average daily consumption of normalized elements in monetary terms is taken into account. For inventories, the average daily consumption is calculated according to the corresponding article of the cost estimate for production; for work in progress - based on the cost of gross or marketable output; for finished products - based on the production cost of commercial products.

In the process of rationing, private and aggregate standards are established. The normalization process consists of several successive steps. Initially, stock standards are developed for each element of normalized working capital. Norm- This is a relative value corresponding to the volume of the stock of each element of working capital. As a rule, the norms are set in days of stock and mean the duration of the period provided by this type of material assets. For example, the stock rate is 24 days. Therefore, stocks should be exactly as much as will be provided by production within 24 days.

The stock rate can be set as a percentage or in monetary terms to a specific base.

Further, based on the rate of stock and consumption of this type of inventory, the amount of working capital necessary to create normalized reserves for each type of working capital is determined. So defined private standards.

Private standards include working capital in inventories; raw materials, basic and auxiliary materials, purchased semi-finished products, components, fuel, containers, low-value and consumable items (IBE); in work in progress and semi-finished products own production; in deferred expenses; finished products.

The ratio of a separate element of working capital is calculated by the formula:

Where H- the standard of own funds for the element; O- turnover (expenditure, output) for this element for the period; T- duration of the period; Nz- the norm of the stock of working capital for this element.

And, finally, the total standard is determined by adding the private standards. In this way, working capital ratio represents the monetary expression of the planned stock of inventory items, the minimum required for the normal economic activity of the enterprise.

Normalization methods. The following main methods of normalization of working capital are used: direct account, analytical, coefficient.

Direct Count Method provides for a reasonable calculation of reserves for each element of working capital, taking into account all changes in the level of organizational and technical development of the enterprise, the transportation of inventory items, and the practice of settlements between enterprises. This method, being very time-consuming, requires highly qualified economists, involvement of employees of many enterprise services (supply, legal, product marketing, production department, accounting) in the rationing. But this allows you to most accurately calculate the company's need for working capital.

Analytical Method applied in the event that in the planning period there are no significant changes in the working conditions of the enterprise in comparison with the previous one. In this case, the calculation of the working capital ratio is carried out on an aggregate basis, taking into account the ratio between the growth rate of production volume and the size of normalized working capital in the previous period. When analyzing the available working capital, their actual stocks are corrected, excess ones are excluded.

At coefficient method the new standard is determined on the basis of the standard of the previous period by making changes to it, taking into account the conditions of production, supply, sale of products (works, services), settlements.

In practice, the direct counting method is the most common. The advantage of this method is its reliability, which makes it possible to make the most accurate calculations of private and aggregate standards.

Features of various elements of working capital determine the specifics of their rationing. Let's consider the main methods of rationing the most important elements of working capital: materials (raw materials, basic materials and semi-finished products), work in progress and finished products.

Rationing of materials. The working capital ratio for stocks of raw materials, basic materials and purchased semi-finished products is calculated on the basis of their average one-day consumption ( R) and the average stock rate in days.

One-day consumption is determined by dividing the costs of a certain element of working capital by 90 days (with a uniform nature of production - by 360 days).

The average rate of working capital is determined as a weighted average based on the norms of working capital for certain types or groups of raw materials, basic materials and purchased semi-finished products and their one-day consumption.

The rate of working capital for each type or homogeneous group of materials takes into account the time spent in the current ( T), insurance (C), transport (M), technological ( BUT) and preparatory ( D) stocks.

current stock- the main type of stock necessary for the smooth operation of the enterprise between two successive deliveries. The size of the current stock is affected by the frequency of deliveries of materials under contracts and the volume of their consumption in production. The working capital rate in the current stock is usually assumed to be 50% of the average supply cycle, which is due to the delivery of materials from several suppliers and at different times.

Safety stock- the second largest type of stock, which is created in case of unforeseen deviations in supply and ensures the continuous operation of the enterprise. The safety stock is usually assumed to be 50% of the current stock, but may be less than this value depending on the location of suppliers and the likelihood of interruption in supplies.

Transport stock is created in case of exceeding the terms of cargo turnover in comparison with the terms of document circulation at enterprises located at considerable distances from suppliers.

Technological reserve created when this species raw materials need pre-treatment, exposure to give certain consumer properties. This inventory is taken into account if it is not part of the production process. For example, when preparing for the production of certain types of raw materials and materials, time is required for drying, heating, grinding, etc.

Preparatory Stock associated with the need for acceptance, unloading, sorting and warehousing of inventories. The norms of the time required for these operations are established for each operation on the average size deliveries on the basis of technological calculations or by timing.

Working capital ratio in stocks of raw materials, basic materials and purchased semi-finished products ( H), reflecting the total need for working capital for this element of inventories, is calculated as the sum of working capital norms in current, insurance, transport, technological and preparatory stocks. The resulting general rate is multiplied by the one-day consumption for each type or group of materials:

H= R (T+ FROM+ M+ BUT+D).

In production stocks, working capital is also normalized in stocks of auxiliary materials, fuel, containers, low-value and wearing items, etc.

Rationing of work in progress. The value of the standard of working capital in work in progress depends on four factors: the volume and composition of products, the duration of the production cycle, the cost of production and the nature of the increase in costs in the production process.

The volume of production directly affects the value of work in progress: the more products are produced, ceteris paribus, the greater will be the size of work in progress. A change in the composition of manufactured products affects the value of work in progress in different ways. With an increase in the share of products with a shorter production cycle, the volume of work in progress will decrease, and vice versa.

The cost of production directly affects the size of work in progress. The lower the cost of production, the lower the volume of work in progress in monetary terms. The increase in the cost of production entails an increase in work in progress.

The volume of work in progress is directly proportional to the duration of the production cycle. The production cycle includes the time of the production process, technological stock, transport stock, the time of accumulation of semi-finished products before starting the next operation (revolving stock), the time spent by semi-finished products in stock to guarantee the continuity of the production process (insurance stock), The duration of the production cycle is equal to the time from the moment of the first technological operation before acceptance of the finished product at the finished product warehouse. Reducing inventory in work in progress improves the use of working capital by reducing the duration of the production cycle.

To determine the rate of working capital for work in progress, it is necessary to know the degree of readiness of products. It reflects the so-called cost escalation factor.

All costs in the production process are divided into one-time and incremental. To lump sum include the costs incurred at the very beginning of the production cycle - the costs of raw materials, materials, purchased semi-finished products. The remaining costs are considered growing The increase in costs in the production process can occur evenly and unevenly.

The coefficient of increase in costs is determined with a uniform and uneven increase in costs. With a uniform increase, the cost increase factor is calculated by the Formula:

where To– coefficient of increase in costs; Fed- one-time costs; fn- rising costs. With an uneven increase in costs by days of the production cycle, the coefficient of increase in costs is determined by the formula;

where FROM – average cost products in work in progress; P- the production cost of the product.

Rationing of working capital in work in progress is carried out according to the formula:

H= 3 *T*K,

where H- the standard of working capital in work in progress; 3 – one-day expenses; T– the duration of the production cycle; To- the coefficient of increase in costs in production.

The calculation of the working capital ratio for work in progress in certain industries can be carried out by other methods, depending on the nature of production.

Rationing of finished products. The working capital ratio for finished products is determined as the product of the working capital norm and the one-day output of marketable products in the coming year at the production cost:

where H- the standard of working capital for finished products; AT- release of marketable products in the IV quarter of the coming year (with a uniform nature of production) at the production cost; D- number in the period; T- the rate of working capital for finished products, days.

Stock rate ( T) is set depending on the time required;

for the selection of certain types of products and their acquisition in the batch;

· for packaging and transportation of products from the supplier's warehouse to the sender's station;

for loading.

Aggregate working capital ratio at the enterprise is equal to the sum standards for all their elements and determines the general need of an economic entity in working capital. General norm working capital is established by dividing the total norm of working capital by the one-day output of marketable products at the production cost in the fourth quarter, according to which the norm was calculated.

Non-standardized working capital in the sphere of circulation includes funds in goods shipped, cash, funds in receivables and other settlements. Business entities have the opportunity to manage these funds and influence their value through the system of crediting and settlements.

In the process of using ongoing investments in fixed assets (fixed capital), the enterprise needs financial resources for the purchase of raw materials, materials, fuel, the formation of reserves, payment wages etc. All these funds are working capital. Describing its essence, it should be noted that working capital not only transfers its value to products during the operating cycle (from the moment of purchase of raw materials, materials and other types of resources to the moment of receipt of money from the sale of products), but also includes cash and those assets which, in the normal course of business, will be converted into cash within one year from the date of the balance sheet.

The operating cycle at the enterprise consists of the following stages:

purchase of raw materials, materials and other similar valuables and payment of supplier invoices;

processing of raw materials and materials in order to obtain marketable products and remuneration of employees at the expense of available funds;

sale of finished products and presentation of payment documents to buyers;

cash receipts from customers for products sold.

Reducing the time for all stages of this cycle is of great importance in the effective management of working capital. If it is possible to pay for goods (products) after their sale, the need for working capital can be significantly less. This provision also applies to economic entities of trade and others.

Working capital, as indicated in the asset of the balance sheet, includes inventories, inventories, work in progress and finished products, prepaid expenses, receivables (accounts presented for payment), cash (in cash, on settlement bank accounts, other accounts).

Each enterprise determines the total amount of working capital and its structure according to the specified components (the share of certain types of working capital in their total amount on quarterly dates on average per year).

most important function working capital is to use them as assets to produce profits. The very name of these funds (capital) testifies to the importance of their turnover (turnover). For this purpose, the value of working capital is estimated by the number of their turnovers for a certain period and is measured by the number of days when their stocks will ensure the functioning of the enterprise. So, for the purposes of analysis, planning and organization of control over the state of stocks of raw materials, materials, finished products, etc., the amount of stocks in days is calculated according to the following formula:

where Tdn is the amount of stock in days;

Мі - stocks of non-necessary (i) type of resources in natural units of measurement;

Oi is the average daily consumption of the required (i) material in the same units;

The same calculations can be performed in the valuation of stocks and average daily consumption at the same (purchase) prices.

At each enterprise, the average size of stocks is calculated by the arithmetic mean if there are data for two dates and the chronological average if there are data for three dates or more. To assess the state of inventory management, their turnover is calculated in days and times according to the following formulas:

where T 0b - turnover in days;

T p - Turnover in times;

Average stocks for a certain period in total;

About days - one-day expense in the amount for the same period.

where V real - sales volume for a certain period; - average stocks for the same period.

The calculation of the average turnover is the ratio of the cost of goods sold to the average value of stocks at the same prices. Another indicator is the number of days required for one inventory turnover: 360 days is divided by the average inventory turnover in times. Day turnover is one measure of liquidity because it expresses the rate at which inventory can be turned into cash.

The main factor determining the size of the stock is, as can be seen from the above provisions, the volume of sales. Based on the fact that the volume of sales is an indicator of the level of demand, using scientific methods of inventory management, it was found that the increase in stocks is not linearly dependent on the volume of sales (demand), but that the volume of stocks is proportional to the square root of the volume of sales.

At enterprises great importance has a reasonable estimate of stocks, which is studied in connection with the movement of Products, and the determination of their value. In practice, the cost of inventories is most often determined by the three most convenient methods - FIFO, LIFO and weighted average cost.

According to the FIFO method, when the price level increases, inventory is recorded at the price of the first batch received at the warehouse, which causes an increase in profit in the income statement compared to that which would be indicated if inventory were taken into account as part of costs at their current price.

The LIFO method involves valuing stocks at the end of the period at last purchase prices. The main goal of this method is to bring the cost of goods sold as close as possible to the last cost of their acquisition.

It is obvious from the above provisions that, at a stable price level, the estimate inventory both methods will be the same. As prices change, the results of using these methods will vary greatly.

The amount of taxes paid based on the results of activities for the period strongly depends on the accounting method. More high income, obtained using the FIFO method, is taxed as profit from production activities, although it represents a fictitious profit from the use of the first received and therefore cheap lots of inventory.

The weighted average cost method eliminates cost fluctuations in inventory valuation and cost of goods sold.

The choice of inventory valuation methods affects the result of determining the cost of production and the amount of profit from its sale.

The LIFO method makes it possible to more reasonably estimate the reserves, as it more accurately reflects the existing costs. And the FIFO method establishes the best ratio of revenue and costs.

In conditions of inflation, interest in the LIFO method increases when writing off raw materials and materials to the cost of production. This method delays the effect of inflation as long as commodity prices continue to rise. It allows you to defer income tax payments, which is a real benefit.

The advantages and disadvantages of each method should be evaluated by the leaders (managers) of the enterprise and give preference to one of them. The use of different methods at the same time when calculating the above indicators or solving certain problems is not allowed.

For specific types of working capital, the one that most fully characterizes their consumption is chosen as the basic estimated indicator. So, for auxiliary materials, such an indicator is their average daily consumption, for containers - the annual (quarterly) volume of marketable products, for tools general purpose and overalls - the average annual number of employees.

The amount of cash needed by a well-managed enterprise is a safety stock that is used to cover short-term imbalances. cash flows. So, in the event of a decline in the volume of sales of finished products and the volume of purchases of raw materials, materials and other resources remains at the current level, it is necessary to resort to attracting additional funds. Analysis is a means of establishing the need for funds. The importance of this resource in the enterprise is judged by the fact that the lack of cash is more than another factor that influences the solution of the issue of the insolvency of the enterprise.

Currently, the need for working capital is determined on the basis of the prevailing value for the past period. This approach complicates the process of managing this important type of resource. It is necessary to put standards (private by types of working capital and generalizing by their totality) as the basis for their planned value. In market conditions, each enterprise can establish such standards. At those enterprises where the specified approach to working capital management is used, they achieve success and consider the standard as the minimum planned amount of funds for organizing the uninterrupted course of economic (production, trading) activities.

The need for material resources is determined in the context of their types for the main and non-core activities of the enterprise and their reserves necessary for normal functioning at the end of the period (month, quarter, year). The total requirement can be calculated using the following formula

where P 0 - total need;

MP ij - the need for the 1st type of materials for the release of the j-th type of product (based on the production program and the increase in work in progress);

3 i - stocks of the i-th type of material resources necessary for the normal functioning of the enterprise at the end of the period.

The calculation of the entire need should be based on the norms and norms of resource consumption per unit of production and stocks.

Value planned requirement in the corresponding type of material resources for the implementation of the main production program, as can be seen from the formula and logic, is determined by multiplying the consumption rate by the amount of output (volume of work performed).

The duration of funds in work in progress depends on the duration of the production cycle, the rate of growth of costs for work in progress and the number of days in the forthcoming period.

Separately, the need for resources for experimental and experimental work, for repair and maintenance needs, etc. is calculated.

The total need for working capital is determined by summing up the needs for certain types. This calculation can also be made according to the following scheme: the average annual value of working capital for the reporting period is multiplied by the ratio of the growth rates of economic activity (trading, manufacturing, etc.) and the growth rate of the average annual value of fixed assets according to data for the last 2-3 years .

AT " methodological recommendations on the development of the financial policy of the enterprise" much attention is paid to the management of working capital ( in cash, marketable securities), accounts receivable, accounts payable, accruals and other means of short-term financing. Addressing these issues is of paramount importance. It is in this direction that the main problem of financial management is most clearly manifested: the choice between profitability and the probability of insolvency, when the value of the company's assets becomes less than its accounts payable.

It is expedient for the financial service of an enterprise to constantly monitor the sequence of terms of financing assets, choosing one of several methods that exist in practice (financing by short-term and long-term loans or mainly by one of these methods, compensation of assets by liabilities with an equal maturity - hedging).

Indicators of the movement of working capital, their ratio with other components of the capital of the enterprise are recommended by the government for study financial stability and business activity enterprises.

When assessing the working capital of an enterprise, it is necessary to comprehensively analyze the indicators of financial stability for several recent years. These data should be taken into account, like many other indicators, for assessments of the enterprise's performance and by external users of reporting, such as investors, shareholders and creditors.

It's about learning:

the ratio of borrowed and own funds. The ratio of all liabilities to equity, which must be less than 0.7. If this value exceeds 0.7, then this indicates a loss of financial stability;

coefficient of provision with own funds. The ratio of own working capital to their total value. The lower limit is -0.1. The higher this indicator (about 0.5), the better the financial condition of the enterprise;

the coefficient of maneuverability of own working capital. The ratio of own working capital to the total amount of own capital. The normal value of this indicator is 0.2 - 0.5. The higher its value, the more opportunities for financial maneuvering.

Of great importance for each enterprise is the complete security of the need for resources with sources of coverage. In practice, there are internal (own) and external sources of meeting needs. To solve this problem, the need for the import of materials from outside is calculated according to the following scheme: the entire need minus the value of own internal sources. Under them, it is necessary to conclude contracts for the purchase of materials from suppliers. Contracts should provide for an assessment of the rhythm of deliveries and measures of responsibility. To assess the rhythm of deliveries, indicators such as the standard deviation, the supply irregularity coefficient, and the coefficient of variation are used.