Реферат: Working capital

where co - rotation ratio of current assets; R - the volume of sales (USD); C - average normalized working capital balances (USD).

This figure indicates the number of turns of working capital during the reporting period. The more engaged in working capital turnover, the better they are used. Load factor working capital is calculated by this formula:

K_z = C / R (2.6)

where circuit - the load factor working capital (the cop). He describes the value of current assets to 1 USD. sales. Less working capital accounted for 1 USD. sales, the better they are used. To characterize the efficiency of working capital efficiency coefficient can be used. It is calculated by the formula:

K_e = P / S (2.7)

where Ke - coefficient of efficiency of working capital (kop); Q - Income from sale of marketable products (UAH). This figure describes how much profit falls to 1 USD. current assets. How is it bigger, the better use working capital. [17, sec. 168 - 170] Relative release of working capital arises when the improved use of their enterprise with the same amount of working capital or with a slight increase in their planned increases, the volume of production. Since it is a source of assets profit now consider the formula now in the part of its assets: This figure can be expected for other profits (profits before taxes and other income). Comparison with the previous metric will enable to assess the impact of taxes and interest paid on loans for the total return on assets. Comparison with the previous metric will enable to assess the impact of taxes and interest paid on loans for a total yield of real assets. [5, p.. 96] For the realization of investment projects often than equity capital, using loans, bonds or other forms of long-term financing. All these forms of financing (except for short) form the capital of the company. Indicator of efficiency of capital is very important for investors. It enables lenders, shareholders know about the ability of service and repay the loan.

Return borrowed capital: Performance of this group give an idea of how efficiently the company operates, controls the production costs and selling products, and that net income while receiving. [5, p.. 98] So, this is a financially stable entity that own funds covering the costs invested in assets not allow unjustified receivables and payables, timely payments for their obligations. The basis of financial stability are balanced, rational organization and efficient use of working capital. But that does not mean that the company has working capital to invest only in highly liquid assets to help reduce the likely risk and get high profits. The main purpose of business is to create competitive products with high consumer properties.

3. Using circulating assets and ways to speed up their rotation

3.1 Provisions for current assets as security for business

Information about the financial condition and results of enterprises that use a wide range of users, is important for investors who are primarily interested in the presence of a sufficient level of economic enterprise, and as the size of its liabilities and equity, and current business financial results. This information can help evaluate the effectiveness of methods of property management companies and management decisions. Accuracy of the information of financial position and results of its conception of proper and accurate picture of the company, which creates a clear and accurate representation of reality, without deviation, prykrashan, shadowing and suppression of certain aspects of the state or entity. It should consider the fact that every business transaction of the current leads to certain results in the future, and that is always in a market economy characterized by these operations is incomplete and inaccurate. Even companies with an ideal control system subjected to threats to the collapse of global capital markets, the impact of political, economic and social changes in the state and other factors. Thus, we can define risk as the incompleteness of information in making management decisions. The risk of economic activities need to match the following criteria: likelihood of economic consequences of the operation (high probability of its occurrence) and the possibility to change its size (change risk). A variety of causes redundancy in accounting difficult to determine. Overall, the reserves can be defined as an instrument of self-insurance businesses from the impact on future financial condition to the expected negative consequences of the risks of economic activity.

Reserves must meet the cost of assets produced in this reporting period to cover the foreseen (expected) losses, damages, liabilities, reductions in asset risks caused by the enterprise. Based on the foregoing, provisions, revealing the possible independent factors of influence on company financial results of enterprises, ensure preservation of equity, retain the rights and interests of owners of capital, ensure implementation of the principle of continuity of the entity. Assets attributed to the formation of reserves may not be the basis of their Clothing essence, reduce the current proprietary tools businesses serving its operating, investing and financing activities.

Otherwise, one would assume that all assets used in the current period would have "preserved" and defined as a means to cover commitments envisaged reserves, causes decrease in assets of a company (ie the effects of economic risks). This means that such assets have been used at the time the reserve, or detection of risk with a high probability of its implementation. Assets allocated to reserves to cover the expected effects of current decisions of economic risk. In practice, reserves may be created during a period in time of an authentic reason for their formation, there is an economic risk with a high probability of occurrence. At the time the reserve is determined by its size, which is known to be formally documented, as the business transaction, to cover the consequences of which provision has been made, only come in the future.

Moreover, it may be that the expected risk (the corresponding operation) did not come, which means a reserve unreasonableness and omissions of management and information system. So we can conclude that the reserves must formuvatysyatilky in the case where it is safe to talk about the reality of the risk of economic activities and relevant existing reasonable causes. Reserves are expected to guarantee the enterprise in the future weighting of losses, damages and losses, which makes a real financial performance of the entity. Understanding accounting reserve covers: as a reserve estimate of future costs of assets; use of reserves as a real physical attrition (decrease) in assets; recognition of the reserve in full or part as inappropriate (ie, provided economic phenomenon has not happened yet or reserve value exceeds its true value). [11, sec. 177]

Thus, we can conclude that the reserves created by a clear purpose (according to the type of economic risk and its consequences) for short or tentatively determined period, after which the provision or use of, or determining the expediency of its creation, in other words, the effectiveness of this this method of business.

3.2 Ways to improve and accelerate the use of working capital

Duration of rotation of funds - a synthetic indicator, capable of displaying both tangible outcome of the process of creating - generated sales of goods and services rendered for the period - and the efficiency used in the process of material and money. Under the present conditions it can be used at the enterprise level and at the macro level in developing integrated economic programs. The rotation of working capital is calculated according to plan and effectively. By comparing actual with planned rotation time is determined by acceleration or deceleration of a rotation of all the normalized working capital and for certain articles. Due to the rotation speed of the current assets turnover of released funds that is calculated by multiplying the actual one-day sales volume days faster rotation of working capital. The more engaged in working capital turnover, the better they are used. [17, sec. 169] Acceleration of turnover of working capital is a priority in today's business conditions and achieved in different ways.

At the stage of creating such inventory can be:

• Implementation of standards commercially reasonable reserve;

• Approaching suppliers of raw materials, intermediate products, components and other products. to consumers;

• Extensive use of direct long-term relationships;

• Expansion of warehouse logistics, and wholesale trade in materials and equipment;

• Complex mechanization and automation of loading and unloading at warehouses. At the stage in progress:

• Accelerating scientific progress (the introduction of progressive techniques and technologies, especially bezvidhidnoyi, rotary lines, chemicalization production);

• Development of standardization, unification, typification; • Improving the form of industrial production, the use of cheaper structural materials; • Improving the system of economic stimulating economic usage of raw materials and energy resources;

• Increase the share of products high demand. At the stage of treatment: • The approach to its consumer products manufacturers;

• Improving the system of payments;

• Increased sales due execution of orders for direct call, early production, making products with savings of materials;

• Thorough and timely selection of products shipped for parties, range, normal transit, shipment in strict accordance with concluded agreements. Improved utilization of current assets frees them. This release may be absolute and relative.

Absolute release of working capital - a direct reduction in the need for working capital against the previous period and a simultaneous increase in output (sales). Relative release of working capital arises when the improved use of their enterprise with the same amount of working capital or with a slight increase in their planned increases, the volume of production. [10, sec. 79 - 80]