Working capital. The composition of the working capital of the enterprise

Revolving funds - this is a set of circulating production assets and circulation funds (from the point of view of economic theory, there is the concept of working capital).

Revolving production assets- these are objects of labor with a service life of not more than 1 year, which, in the process of their use, change their natural-material form and immediately, completely transfer their value to the manufactured products (works, services) during one operating cycle. Under operating cycle is understood as the time from the moment of acquisition of raw materials and materials until the moment of receipt of money from the sale of finished products.

Composition of circulating production assets:

· productive reserves;

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

· future spending.

To production stocks any brand of material resource (raw materials, basic materials, auxiliary materials, fuel, energy, purchased semi-finished products, components, spare parts, containers, packaging material, low-value and wearing items) received by the consumer enterprise, but not yet used in the process production and located at the enterprise, regardless of the place of its storage.

To work in progress includes products that are not finished in production in individual workshops, as well as products that are not accepted by the technical control department and not handed over to the warehouse of finished products.

To deferred expenses include the expenses of the enterprise in this reporting period, but written off to the cost of production in subsequent periods. These include expenses:

For the development of certain types of products and new technological processes;

For uneven repairs of fixed assets during the year in the absence of an appropriate reserve, etc.

circulation funds- these are funds that are associated with servicing the process of circulation of products, which do not participate in the formation of the value of products, but are its carriers.

The composition of circulation funds:

Finished products in stock

finished products shipped and on the way;

cash in settlements, on settlement accounts;

· short-term financial investments;

Accounts receivable.

The ratio between the individual elements of working capital or their constituent parts is called working capital structure .

Funds advanced (invested) in the creation of working capital are called working capital . Working capital - financial category. Working capital is intended for the formation of the necessary stocks and stocks of inventory items, for expenses of future periods, for the implementation of settlements on time. The availability of working capital allows the company to ensure an uninterrupted process of supply, production and sale of products.

Working capital can be formed from the following sources:

· own working capital (i.e. own and equivalent working capital – stable liabilities);

· own working capital and borrowed working capital (short-term loans from commercial banks).

The main and constant source of increasing own working capital is the profit of the enterprise. Sustainable liabilities are working capital equivalent to own funds and do not belong to the enterprise, but are constantly in its economic circulation. Sustainable liabilities include accounts payable, minimum wage arrears, payments to the budget for taxes and social contributions, etc. Accounts payable - funds temporarily attracted by the enterprise and subject to return to the relevant legal or natural persons. Accounts payable within the current terms of payment of bills and obligations is normal (legal). Short-term loans from commercial banks (borrowed funds) are not a permanent, but only a temporary source of stocks and costs that are necessary in certain periods due to delays in the supply of material resources, deviations from the plan in the production and marketing processes. Since the bank issues short-term loans at a certain percentage, the company increases its costs, which is reflected in the increase in the cost of production.

Circulation of working capital

When functioning, the enterprise carries out parallel supply, production and marketing activities. Purchasing the necessary material and technical resources, the enterprise performs supply functions for itself, producing products - production, selling manufactured products - marketing. In accordance with the performance of these functions, the circulation of working capital is carried out. With the funds available on the current account (or accounts) and at the cash desk, the enterprise acquires the material and technical resources it needs for production. Materials are not immediately consumed, some of them are in inventories, and the part that is put into production is in work in progress, finished but not yet sold products. Working capital invested (advanced) in them are related . Cash in a checking account or on hand can be considered as free working capital. At the expense of free working capital, the enterprise acquires material and technical resources, pays wages to personnel, the budget and extra-budgetary funds.

Being in constant motion, revolving funds make a continuous circulation, which is reflected in the constant renewal of the production process. There are three stages of the cycle.

1. Monetary (preparatory) stage: D - T ... (Money - Goods) .

Revolving funds begin their movement with the advance of a certain amount of cash for the purchase of inventories. At this stage, the transition from the sphere of circulation to the sphere of production takes place.

2. Production stage: T - P - T / ... (Goods - Production process - Goods) .

This stage takes place during the production process. It consists in the transfer to production of purchased material assets - inventories. At this stage of the circuit, the advanced value again changes its form: it passes from the form of production into the form of commodities. And according to the material composition, from material production stocks, it first turns into unfinished products, and then into finished products - “Inventory - Production Process - Finished Products”.

3. Final stage:T / - D / ... (Goods - Money) .

This stage consists in the sale of finished products and the receipt of funds for the sale. At this stage, circulating assets pass from the stage of production to the stage of circulation and again take the form of money.

The circuit formula looks like this:

D - T ... T - P - T / ... T / - D / .

Difference between ( D / - D) is the amount of money income (gross income).

Based on the characteristics of the circulation, the concept of turnover of working capital is determined.

Working capital turnover- this is the movement of working capital in the process of production and sale of manufactured products (works, services), that is, the duration of one complete circulation of working capital, starting from the acquisition of inventories and payment of wages, ending with the sale of finished products and the receipt of funds to the settlement account of the enterprise.

Working capital turnover period- this is the time during which working capital makes a complete cycle, that is, the period of production and the period of circulation pass.

Working capital of an enterprise is a set of funds of an enterprise intended for the formation of working capital and circulation funds. Working capital includes the funds necessary for the enterprise to create inventories in warehouses and in production, for settlements with suppliers, the budget, for paying wages, etc. There are composition and structure of working capital. Working capital, along with the main and labor force, are the most important element (factor) of production. Insufficient security of the enterprise with working capital paralyzes its activities and leads to a deterioration in the financial situation.
Under the composition of working capital understand the totality of the elements that form them. The division of working capital into working capital and circulation funds is determined by the peculiarities of their use and distribution in the areas of production and sales. The amount of working capital employed in production is determined mainly by the duration of production cycles for the manufacture of products, the level of development of technology, the perfection of technology and labor organization. The amount of circulation funds depends mainly on the conditions for the sale of products and the level of organization of the system of supply and marketing of products. The ratio between the individual elements of working capital, expressed as a percentage, is called the structure of working capital. The difference in the structures of working capital by industry is due to many factors, in particular, the peculiarities of the organization of the production process, the conditions of supply and marketing, the location of suppliers and consumers, the structure of production costs.
Consider the composition of the working capital of the enterprise using the scheme (Fig. 8.1):

Rice. 8.1. The composition of the working capital of the enterprise
Working capital is an obligatory element of the production process, the main part of the cost of production. The lower the consumption of raw materials, materials, fuel and energy per unit of output, the more economically the labor expended on their extraction and production is spent, the cheaper the product. The presence of an enterprise with sufficient working capital is a necessary prerequisite for its normal functioning in a market economy. The circulating production assets of industrial enterprises include part of the means of production (production assets), the material elements of which, in contrast to the main production assets, are spent in each production cycle in the labor process, and their value is transferred to the product of labor entirely and immediately. The material elements of circulating assets in the process of labor undergo changes in their natural form and physico-chemical properties. They lose their use value as they are consumed in production. New use-value arises in the form of products produced from them.
The working capital of an enterprise consists of three parts:

• productive reserves;
• work in progress and semi-finished products of own production;
• future spending.

Production stocks are raw materials, basic materials, purchased semi-finished products, auxiliary materials, fuel, containers, spare parts, low-value and wearing items.
Work-in-progress and semi-finished products of own production - materials, parts, assemblies and products that are in the process of processing and assembly, as well as semi-finished products of own manufacture, not fully completed by production in one workshop of the enterprise and subject to further processing in other workshops of the same enterprise.
The above-mentioned revolving funds in their "movement" are also associated with circulation funds. They include:

• finished products in warehouses;
• goods in transit - products shipped but not paid for;
• cash on the current account in the bank and cash desk of the enterprise;
• funds in settlements with consumers, in particular, receivables.

According to the sources of formation, OS are divided into own and borrowed.
Own current assets are funds that are constantly at the disposal of the enterprise and are formed at the expense of its own resources (profits, etc.). In the process of movement, own working capital can be replaced by funds that are, in fact, part of their own, advanced for wages, but temporarily free (due to the one-time payment of wages). These funds are called equivalent to own, or stable liabilities.
Borrowed working capital - bank loans, accounts payable (commercial credit), etc.
The process of developing economically justified values ​​of working capital necessary for the organization of the normal operation of the enterprise is called the normalization of working capital. Thus, the rationing of working capital consists in determining the amount of working capital necessary for the formation of constant minimum and at the same time sufficient stocks of material assets, irreducible balances of work in progress and other working capital. Rationing of working capital helps to identify internal reserves, reduce the duration of the production cycle, and more quickly sell finished products.
Normalized working capital includes funds held in inventories, work in progress, the balance of finished products in the warehouses of the enterprise. The remaining elements of working capital are called non-standardized.
The norms of working capital characterize the minimum stocks of inventory items at the enterprise and are calculated in days of stock, norms for the stock of parts, rubles per unit of account, etc.
The working capital ratio is the product of the working capital norm by the indicator, the norm of which is determined. Calculated in rubles.
Rationing of working capital (Nobs.) is the following amount:
Nob.s. = Inv.c. + Hn.pr. + Ng.p., [rub.]
where Nprz, - rationing of inventories; Nnpr. - regulation of work in progress; Ngp. - rationing stocks of finished products.
It is very important to know and analyze the structure of working capital at the enterprise, since it, to a certain extent, characterizes the financial condition of the enterprise at one time or another.
Under the structure of working capital refers to the ratio of their individual elements in the totality.
The structure of working capital at the enterprise is unstable and changes in dynamics under the influence of many reasons. Consider the approximate structure of working capital at a machine-building enterprise (Table 8.1).
Table 8.1
An excessive increase in the share of receivables, finished products in stock, work in progress indicates a deterioration in the financial condition of the enterprise.
Accounts receivable characterizes the diversion of funds from the turnover of the enterprise and their use by debtors, debtors in their turnover. An increase in the share of work in progress of finished products in the warehouse indicates the diversion of working capital from circulation, a decrease in the volume of sales and, consequently, profit. All this indicates that the enterprise needs to manage working capital in order to optimize their structure and increase their turnover. Every possible improvement in the use of working capital is one of the most important tasks of industrial enterprises. The better raw materials, fuel, and auxiliary materials are used, the less they are used to produce a certain quantity of products, thereby creating the possibility of increasing the volume of industrial output.

Plan

9.1. Composition and structure of working capital.

9.2. Determining the need for working capital.

9.3. Indicators of the effectiveness of the use of working capital.

Composition and structure of working capital

Working capital is a set of funds advanced for the creation and use of working capital and circulation funds in order to ensure a continuous process of production and sale of products. Typical composition and classification of working capital are given in table. 9.1.

Table 9.1. Composition and classification of working capital

Types of working capital	Composition of working capital	Classification features
Revolving production assets	1. Production stocks: o raw materials, basic materials and semi-finished products, auxiliary materials, fuel, containers, spare parts for repairs (etc.) o means of labor with a service life of not more than one year - low-value and wearing items and tools, fixtures and equipment 2. Work in progress and semi-finished products of own production 3. Deferred expenses	Normalized working capital
circulation funds	4. Finished products in stock and shipped, which is in clearance 5. Goods shipped but not paid for by buyers 6. Cash on hand and in bank accounts 6. Accounts receivable 8. Funds in other settlements	Non-standardized working capital

The need for working capital in market conditions is often referred to as operating needs or financial and operational needs (FEP), which are defined as the difference between the funds immobilized in stocks and customer debt, and the company's debt to suppliers. In many Western sources, the difference between current assets and current liabilities is called working capital.

When forming the authorized capital, the enterprise independently establishes the planned amount of working capital necessary for its production activities, in the form of a standard in monetary terms. The company's need for working capital fluctuates throughout the year due to the seasonality of production, the uneven receipt of money for shipped products. According to the sources of formation, working capital of an enterprise is divided into its own, borrowings (bank loans), attraction (through corporatization) (Fig. 9.1). Unlike fixed assets, which are repeatedly involved in the production process, current assets function only in one production cycle and fully transfer their value to the newly manufactured product, which is why they are also called variable capital.

Rice. 9.1.

When planning the need for working capital, three methods are used - analytical, coefficient and direct account method. Analytical and coefficient methods are used in enterprises that have been operating stably for more than one year, have statistical data for past periods on changes in the value of working capital and do not have at their disposal a sufficient number of qualified economists for detailed work in the field of working capital planning.

Analytical method involves determining the need for working capital in the amount of their average actual balances, taking into account the growth in production volume. At the same time, it is necessary to take into account the specific conditions for the operation of the enterprise in the coming year. This method is used in those enterprises where funds invested in material values ​​and costs have a large share in the total amount of working capital.

At coefficient method stocks and costs are divided into those directly dependent on changes in production volume (raw materials, materials, costs of work in progress, finished products in stock) and those not dependent on it (spare parts, low-value and wearing items, deferred expenses). By first group the need for working capital is determined on the basis of their size in the base year and the growth rate of production in the coming year. For the second group of working capital, which do not have a proportional dependence on the growth of production volume, the need is planned at the level of their average actual balances over several years. If necessary, you can use analytical and coefficient methods in combination. First, the analytical method determines the need for working capital, depending on the volume of production, and then, using the coefficient method, take into account the change in production volume.

Direct Count Method provides for a reasonable calculation of stocks for each element of working capital, taking into account all changes at the level of organizational and technical development of the enterprise, transportation of inventory items, and the practice of settlements between enterprises. This method is time-consuming, it requires highly qualified economists, involvement of employees of many enterprise services in the rationing. The direct account method is used when organizing a new enterprise and periodically clarifying the need for working capital of existing enterprises. In general, its content involves the following stages of work:

1. Development of stock standards for certain major types of inventory items all elements of normalized working capital, expressed in days, percent, hryvnia per unit of account, and the like. The norm of the stock of working capital, as a rule, is expressed in relative terms (days or percentages). It is calculated for each element of working capital and characterizes the value of the minimum economically justified stock of inventory items for a certain period, which is necessary to ensure the continuity of the production process.

2. Calculation of average daily expenses of a certain type of material assets based on their production cost estimates, for 90, 180, or 360 days.

3. Determination of the standard of own working capital in monetary terms for each element of working capital and the total need of the enterprise for working capital. The working capital ratio is the minimum amount of cash that is constantly needed by the enterprise for its production activities. Of the majority of the elements of working capital, the standard is determined as follows:

General working capital ratio, or total need, in working capital of the enterprise is defined as the sum of the standards calculated for individual elements of working capital.

The composition of working capital should be understood as the elements included in their composition:

• - production stocks (raw materials and basic materials, purchased semi-finished products, auxiliary materials, fuel, spare parts, etc.);
• - unfinished production;
• - future spending;
• - finished products in warehouses;
• - products shipped;
• - receivables;
• - cash in the cash desk of the enterprise and in bank accounts.

working capital
Industrial working capital	circulation funds
A) inventories	B) Funds in production costs	B) Finished products	D) Cash and settlements
1. Raw material 2. Main materials 3. Purchased semi-finished products 4. Accessories 5. Auxiliary materials 6. Fuel 7. Container 8. Parts 9. Low-value and wear-and-tear items	10. Work in progress 11. Semi-finished products of own production 12. Deferred expenses	13. Finished products in the warehouse of the enterprise 14. Shipped (but unpaid) products	15. Money after the sale of goods

Raw materials are products of extractive industries.

Materials are products that have already undergone certain processing. Materials are divided into basic and auxiliary.

The main ones are materials that are directly included in the composition of the manufactured product (metal, fabrics).

Auxiliary - these are materials necessary to ensure the normal production process. They themselves are not included in the composition of the finished product (lubricant, reagents).

Semi-finished products - products finished by processing at one stage and transferred for processing to another stage. Semi-finished products can be own and purchased. If semi-finished products are not produced at their own enterprise, but are bought from another enterprise, they are considered purchased and are included in the inventory.

Work in progress is a product (work) that has not passed all the stages (phases, redistributions) provided for by the technological process, as well as products that are not completed, have not passed tests and technical acceptance.

Deferred expenses are the expenses of a given period that are subject to repayment at the expense of the cost of subsequent periods.

Finished products are fully finished finished products or semi-finished products received at the warehouse of the enterprise.

Accounts receivable - money that individuals or legal entities owe for the supply of goods, services or raw materials.

Cash is cash held in the cash desk of the enterprise, in bank accounts and in settlements.

Based on the elemental composition of working capital, you can calculate their structure. The structure of working capital at the enterprise shows the share of individual elements in the total amount of funds. In the production structure, the ratio of circulating production assets and circulation funds is on average 4:1. Raw materials and basic materials occupy the main place in the structure of production reserves on average in industry. Significantly lower share of spare parts and containers (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.

Working capital is divided into:

• - in terms of economic content - for circulating production assets and circulation funds;
• - according to the source of formation - on own and borrowed;
• - according to the planning method - into normalized and non-normalized.

The division of working capital into working capital and circulation funds is due to the presence of two spheres of circulation of funds - the sphere of production and the sphere of circulation. The economic content of circulating production assets is embodied in the objects of labor, which are transformed into a finished product, fully transferring their value to it. The economic content of circulation funds is embodied in finished products, cash and funds in settlements that serve the process of circulation of a social product.

The presence of own and borrowed funds in the turnover of the enterprise is explained by the peculiarities of financing the production process. A constant minimum amount of funds to finance the needs of production must be provided by own working capital. Own funds of the enterprise are, first of all, the authorized capital and profit remaining at the disposal of the enterprise after payment of all taxes. Temporary need for funds related to objective and subjective reasons is covered by borrowed funds. The most typical reasons for the lack of own working capital are overdue accounts receivable, an increase in the period of the production cycle, expansion of production, an increase in inventories, an increase in the cost of objects of labor, etc. Borrowed funds include bank loans, accounts payable and other liabilities.

Financing part of working capital at the expense of borrowed funds is considered a completely normal operation. All enterprises to some extent attract borrowed funds to finance the circulation of working capital. Moreover, each enterprise has so-called sustainable liabilities - a non-reducing, permanent balance of accounts payable, consisting of wage arrears, to the budget, contributions to social funds, etc. The problem of attracting borrowed funds is to maintain proportions in the financing structure working capital. The ratio between the amounts of own and borrowed funds characterizes the financial stability of the enterprise. It is believed that the larger the share of own funds, the more financially stable it is. In global practice, it is accepted that an enterprise loses its financial stability (independence) if less than 10% of the total amount of working capital is financed from its own funds.

The economic basis for dividing working capital into normalized and non-standardized is the need for their planning to ensure the smooth operation of the enterprise. Normalized working capital - these are working capital, the size of which can be accurately determined in the form of a norm or standard. They provide the optimal need for commercial enterprises in certain inventory items and account for more than 75% of all working capital. Normalized working capital includes: commodity stocks, cash on hand and ways, production stocks, low-value and wearing items, deferred expenses. Non-standardized working capital - working capital, the amount of which is impossible or difficult to determine in a planned manner. The financial plan does not provide for the norms of their balances. The amount of these funds is determined on an operational basis. Non-standardized working capital includes cash on settlement and other accounts, accounts receivable, goods shipped and in custody.

The main place in working capital is occupied by funds advanced in inventory: goods, inventories, containers, fuel, materials for household needs, packaging materials. Approximately 80% of working capital in stocks of inventory items is occupied by funds invested in stocks of goods.

Another element of the working capital of a commercial enterprise is cash. They can be financial instruments - they are on accounts in credit and banking institutions, in securities, as well as in the cash desk of the enterprise. This element of working capital also includes short-term financial investments - investments of the enterprise's funds in various securities, deposit accounts in banks, etc. for a period of less than one year.

An important component of working capital is accounts receivable. It includes the debt of accountable persons, suppliers after the expiration of the payment period, tax authorities in case of overpayment of taxes and other obligatory payments made in the form of an advance. Other types of working capital include deferred expenses and some other payments.