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In conditions market economy the study of profit for the purpose of alternative use of resources, as well as the search for factors that affect its size, is of particular importance, since the efficiency of the business depends on the depth of knowledge and the correct use of the result obtained.
The amount of profit of the organization is influenced by various factors. In fact, these are all factors of the financial and economic activities of the organization. Some of them have a direct impact, and their impact can be determined quite accurately using factor analysis methods. Others have an indirect impact through some indicators (Fig. 1.3).
Figure 1.3 - Factors affecting the profit of the enterprise
To determine the influence of these factors, there are various methods. One of the methods outlined by economists Dontsova L.V. and Nikiforova N.A. involves the calculation of indicators based on data financial reporting. The essence of the methodology lies in the calculation of deviations for each of the indicators given in the form No. 2 "Report on financial results". The influence of each indicator on the performance indicator is calculated, then the influence of factors is summarized, calculating their cumulative influence. When conducting factor analysis, it is necessary to take into account the influence of inflation. For this, a price index is applied and the sales proceeds are determined in comparable prices.
This technique allows assessing the impact of changes in each of the factors on the performance indicator of the organization. At the same time, all indicators are divided into two groups: factors of direct and reverse influence in relation to profit. By what amount will the “direct action” indicator-factor increase (decrease), the profit will increase (decrease) by the same amount. “Reverse action” factors (expenses) affect the amount of profit in the opposite way.
Another technique is analyst Savitskaya G.V. reveals the sequence of calculation of four main indicators, on which the amount of profit mainly depends - this is the volume of sales, the structure of products, the cost price, the level of prices for products. According to this method, it is first necessary to calculate the amount of profit with the actual sales volume and the base value of other factors. To do this, the index of sales volume is calculated, and then the basic amount of profit is adjusted to its level using the method chain substitutions.
The differences between these methods are that for factor analysis using the chain substitution method, one should use such sources of information as: analytical accounting data on the accounts of results, “Report on financial results” (form No. 2), “Report on equity” (form No. 4), i.e. the data is more detailed than the data contained in the accounting (financial) statements.
Main drivers of profit growth manufacturing enterprise are:
1) development and introduction of a new product or product of higher quality. At the same time, a lot of profit and an increase in the level of profitability are ensured by increasing the output of products with higher profitability, as well as by increasing selling prices with an increase in product quality;
2) development of new markets. At the same time, an increase in sales is possible;
3) the introduction of new progressive methods of production, the development of new types of raw materials and materials. This factor is closely related to the reduction of production costs;
4) introduction of measures to improve the organization of production and management. This factor refers to the growth factors of labor productivity of managerial personnel;
5) the use of risky activities. Profit is seen as a reward for risk;
6) attraction of borrowed funds. As long as the interest rate on bank loans remains below the rate of return on invested capital, the profit from borrowed funds grows and the return on equity rises.
7) external factors (independent of the enterprise): increase or decrease in prices for raw materials and materials, etc.;
8) influence of market structure: market demand, population growth dynamics, income level, price level, etc.
9) information impact factors;
10) market fluctuations;
11) recognition of the activity of the enterprise as particularly useful for society.
Each enterprise should provide for planned activities to increase profits. In general terms, these activities can be of the following nature:
Increase in output;
Improving product quality;
Sale or lease of surplus equipment and other property;
Reducing the cost of production due to more rational use of material resources, production capacity and space work force and working hours;
Diversification of production;
Expansion of the sales market, etc.;
From this list of activities it follows that they are closely related to other activities at the enterprise aimed at reducing production costs, improving product quality and using production factors.
The specifics of the tasks facing each specific enterprise in the process of its development, the difference in the external and internal conditions of their economic activity do not allow us to develop a single model for the distribution of profits, which would be of a universal nature. Therefore, the basis of the profit distribution mechanism of a particular enterprise is the analysis and accounting in the process of this distribution of individual factors that link this process with the current and future economic activities of this enterprise.
The factors affecting the proportions and efficiency of profit distribution are very diverse; the degree of intensity of their manifestation is also different. One group of these factors determines the prerequisites for the growth of the capitalized part of the profit; the other group, on the contrary, inclines managerial decisions in favor of increasing the share of its consumed part.
According to the nature of the occurrence, all factors affecting the distribution of profits can be divided into two main groups: a) external (generated external conditions enterprise activities); b) internal (generated by the peculiarities of the economic activity of this enterprise). The composition of the main of these factors is shown in Figure 1.4.
Figure 1.4 - The system of the main factors affecting the distribution of profits of the enterprise
Increasing the profitability of products is one of the most important conditions for increasing the profits of the organization. The main sources of reserves for increasing the level of profitability of sales are an increase in the amount of profit from the sale of products and a reduction in the cost of commercial products.
A special role in increasing the profitability of the enterprise is played by the acceleration of capital turnover. The volume of sales in itself does not affect the level of profitability, because with its change, the amount of profit and the amount of the main and working capital provided that the other factors remain unchanged. However, the faster the capital turnover at the enterprise, the less it is required to ensure the planned sales volume. Conversely, a slowdown in capital turnover requires additional attraction of funds to ensure the same volume of production and sales.
Directions for increasing profitability are determined, first of all, by the reserves for increasing the profits of the enterprise. Depending on the methodology for calculating profitability indicators, their value determines the profit from sales, balance sheet profit or net profit of the company.
The following factors influence the profitability indicator:
The volume of products sold, depending on the structure of sales of each type of product and sales prices;
Financial result from non-operating activities - the difference between non-operating income and expenses (when calculating profitability based on balance sheet profit);
The amount of income tax payable (when calculating profitability based on net profit) (Fig. 1.5).
Figure 1.5 - The main factors affecting the level of profitability
Further, reserves for increasing the value of each factor are identified. For example, an increase in profitability due to an increase in net profit due to a reduction in tax payments from profit is possible with the rational organization of tax planning at an enterprise, the formation of a well-thought-out accounting policy for tax purposes.
An analysis of the factors influencing the profitability indicators of an enterprise's work makes it possible to identify reserves for its increase and use them in the process of planning and forecasting financial and economic activities.
Predicting the level of profitability of the enterprise, it is necessary to consider the following:
Profit, which is always in the numerator of indicators, does not take into account the planned effect of long-term investments;
An increase in profitability always means an increase in risk;
The numerator and denominator of fractional indicators are expressed in monetary units of different purchasing power. Thus, the authorized capital is invested over a number of years, i.e. it is expressed in book value, and the profit is received for a specific current period. Therefore, for the purposes of objective forecasting of profitability, it is necessary to revaluate assets from the standpoint of market value.
Successful planning of the financial and economic activities of the enterprise in the end is always aimed at maximizing the profit. At the same time, it should be borne in mind that the management of the enterprise has considerable freedom in regulating the amount of financial results. Thus, based on the adopted financial strategy, the enterprise has the opportunity to increase or decrease the amount of profit by choosing one or another method of assessing property, the procedure for writing it off, establishing the period of use, etc.
Thus, we can conclude that the same elements of the production process, namely the means of labor, objects of labor and labor, are considered, on the one hand, as the main primary factors in increasing the volume of industrial output, and on the other, as the main primary factors determining production costs. Since profit is the difference between the volume of production and its cost, its size and growth rate depend on the same three primary factors of production that affect profit through the system of indicators of industrial output and production costs. An assessment of all factors in quantitative and qualitative terms is necessary for the adoption management decisions to maximize in absolute terms and improve the efficiency of formation and use of profits in relative terms. Without taking into account all the factors that directly or indirectly affect profit and profitability, it is not possible to form a clear development strategy for a particular enterprise.
Changes in the socio-economic development of the state during the transition to market relations lead to qualitative structural shifts towards the intensification of production, which leads to a constant increase in monetary savings and, mainly, the profits of enterprises of various forms of ownership. The change in profit is influenced by two groups of factors: external and internal.
Internal factors of change in profit are divided into main and non-main. The most important in the main group are gross income and income from the sale of products (sales volume), the cost of production, the structure of products and costs, the amount of depreciation, the price of products. Non-primary factors include factors related to violation of economic discipline, such as price violations, violations of working conditions and requirements, product quality, other violations leading to fines and economic sanctions.
TO external factors that affect the profit of the enterprise include socio-economic conditions, prices for production resources, the level of development of foreign economic relations, transport and natural conditions. Next, we will dwell in more detail on the internal, main factors affecting the amount of profit as absolute indicator business efficiency of the enterprise.
The most important factors in the growth of profits are the growth in production and sales of products, the introduction of scientific and technical developments, an increase in labor productivity, and an improvement in product quality. The main source of cash savings of enterprises is the income of the enterprise from the sale of products, namely that part of it that remains minus the costs of material, labor and other cash costs associated with the production and sale of these products.
In the context of a radical change in the management of the economy, the indicator of income from the sale of products is becoming one of the most important indicators of the activities of enterprises. This indicator creates interest labor collectives not so much in the growth of the quantitative volume of output, but in the increase in the volume of products sold. And this means that such products and goods should be produced that meet the requirements of consumers and are in demand in the market. To this end, it is necessary to study the market conditions of management and the possibility of introducing manufactured products to the market by expanding the volume of its sale.
With the development of entrepreneurship and increased competition, the responsibility of enterprises for the fulfillment of their obligations increases. Thus, the indicator of income from the sale of products meets the requirements of commercial calculation and, in turn, contributes to the development of production and economic activities.
The interest of enterprises in the production and sale of high-quality products that are in demand on the market is reflected in the amount of profit, which, other things being equal, is directly dependent on the volume of sales of these products. Costs for the production and sale of products, which determine the cost, consist of the cost of products used in production natural resources, raw materials, basic and auxiliary materials, fuel, energy, fixed assets, labor resources and other production costs and non-manufacturing costs. The composition and structure of costs depend on the nature and conditions of production under a particular form of ownership, on the ratio of material and labor costs, and other factors.
So, profit as the main form of monetary accumulation depends, first of all, on reducing the costs of production and circulation of products, as well as on increasing the volume of sales of products.
The amount of profit as the final financial result of the work of the enterprise also depends on the second, no less important value - the volume of the gross income of the enterprise. The size of the gross income of the enterprise and, accordingly, profit depends not only on the quantity and quality of manufactured and sold products (work performed, services rendered), but also on the level of prices applied.
The types and level of applied prices ultimately determine the volume of the gross income of the enterprise, and hence profits.
The problem of pricing occupies a key place in the system of market relations. The price liberalization carried out in Ukraine led to a sharp reduction in the influence of the state on the process of price regulation, which resulted in an increase in prices for almost all manufactured goods. With the help of high prices, enterprises compensate for any production costs, which by no means contribute to improving product quality and production efficiency.
The next factor affecting the amount of profit is the depreciation of fixed assets and intangible assets. The amount of depreciation is determined based on the book value of fixed assets and the current depreciation and amortization rates for intangible assets, based on the useful life of such intangible assets, but not more than 10 years of continuous operation. This takes into account the accelerated depreciation of the active part of fixed production assets, which is expressed in higher depreciation rates established by law for the corresponding types of fixed assets.
Thus, the profit of the enterprise is formed under the influence of the following main factors: the gross income of the enterprise, the income of the enterprise from the sale of products, the gross expenses of the enterprise, the level of current prices for the products sold and the amount of depreciation.
The most important of these is the amount of gross expenditures. Quantitatively, costs occupy a significant share in the price structure, so the reduction in costs has a very noticeable effect on profit growth, all other things being equal.
1.1. Profit, income, profitability ………………………….……………..5
1.2. Formation and distribution of net profit…………..………..…8
Chapter 2
2.1. Factors influencing profit growth …………..........…16
2.2. Profit analysis ………………………………………………………….18
Conclusion………………………………………………………………………...21
References…………………………………………………………….....22
Settlement part 1.…………………………………………………………….......23
Estimated part 2…………………………………………………………...
Introduction
Profit is the monetary expression of the main part of the savings created by enterprises of any form of ownership.
The most important factors in the growth of profits are the growth in production and sales, the introduction of scientific and technical developments, and, consequently, an increase in labor productivity, cost reduction, and improvement in product quality.
The main source of cash savings of enterprises is the proceeds from the sale of products, namely, that part of it that remains minus material, labor and monetary costs for the production and sale of these products. Therefore, an important task of each business entity is to get more profit at the lowest cost by observing savings in spending money and using them most efficiently.
The costs of production and sales of products determine the level and structure of its cost. Profit as the main form of cash savings is the difference between the sales proceeds at the relevant prices and the full cost. Hence, the growth of profits depends primarily on the reduction of production costs, as well as on the increase in the volume of products sold.
This paper discusses the basics of the production and economic activities of the enterprise: profit, income, profitability, formation and distribution of net profit.
Pursuing the purpose of this work, it is considered necessary to characterize the factors of profit growth in the enterprise. Therefore, the tasks of this work can be formulated as follows:
Consider the theoretical foundations of profit as an economic category;
Analyze the factors of profit growth in the enterprise;
Determine the mass of net profit and net income based on a complex example.
The work is based on a review of lecture material, domestic literature, used textbooks, as well as various materials related to the production and economic activities of the enterprise.
Profit as a financial result of the production and economic activities of the enterprise.
Profit, income, profitability.
The ultimate economic goal of entrepreneurial activity is to make a profit. In general, the finished mass of profit is determined by:
П=∑ Pu * Vн, where
Pu - specific profit or profit per unit of output;
Vн - the annual volume of production and sales of products in natural terms.
In turn, the specific profit is calculated:
Pu \u003d Tso - C, where
Co-wholesale price of a unit of production of a particular type (excluding VAT and other indirect taxes).
C is the cost of one product.
Then the annual mass of profit:
P \u003d ∑ (Tso - C) * Vn
This formula makes it possible to form the main opportunities for increasing the mass of profit:
Increasing the volume of production and sales of products in physical terms;
Reducing production costs, i.e. reduction in unit cost of production;
Improving the quality of products, which provides an objective basis for increasing the wholesale price of a unit of production.
In the special literature and practice of economic activity, along with the economic category "profit", the economic category "income" appears. From the point of view of economic theory, the difference between these two concepts can be represented by the diagram below:
Vp Vp
Pr Mz A s/n
It makes no sense to talk about profit or income if there is no indicator of product sales (Vp).
And sales revenues (Dr) and profit (Pr) are absolute indicators of the economic activity of the enterprise. At the same time, income and profit are related:
Dr \u003d s / n + Pr
Any positive result in the form of profit or income cannot be obtained without corresponding costs.
The ratio of positive results (profit) to costs characterizes the efficiency of production and economic activities and is called profitability, thus, profitability is a relative indicator of the efficiency of economic activities of organizations.
Depending on the formation of costs, there are many indicators of profitability.
For the production of enterprises, the following are of primary importance:
Profitability to production assets or profitability to assets.
P \u003d (P / (Fs + OSs)) * 100% \u003d (((Tso - C) * Vn) / (Fs + OSs)) * 100%, where
Fs and OOss - the average annual cost of fixed assets and the average annual cost working capital.
Profitability to cost.
P \u003d (P / Wed) * 100%, where
Cp is the cost of all products sold.
Profitability of sales.
P \u003d (P / Vr) * 100%, where
Vr is the volume of sales or the annual volume of products sold.
Product profitability.
Pi = (Pu/s) * 100%
1.2. Formation and distribution of net profit.
For the normal operation of the enterprise in market conditions, profit is formed both at the expense of the main activity (manufacturing of products) and at the expense of other activities, which, in accordance with the accounting form No. 2: "profit and loss statement" includes:
Profit from operating activities;
2) profit from non-realizable activities;
Profits for emergencies.
The last type of profit is included in form two and is analyzed if extraordinary circumstances have occurred at the enterprise in a noticeable period.
The sum of profit from core activities + operating activities + non-operating activities + extraordinary circumstances form the "balance sheet income" or profit before tax.
In general terms, in accordance with PBU 9/99 and PBU 10/99, any of the listed types is calculated:
P \u003d D - R, where
D and R - income and expenses for a certain type of activity of the enterprise. Thus, the accounting concept of “income” is fundamentally different from the concept of “income” in economic theory: if in economic theory income is taken as the sum of salary and profit, then in accounting in general, income is equivalent to the volume of products sold.
The main source of profit in the enterprise is associated with the production of products. In this regard, the profit from sales is calculated:
Pp \u003d Pr \u003d Vp (r) - Sp (r), where
Pp and Pr - profit from sales or the volume of products sold.
Sp(p) - cost of sales or cost of goods sold.
Profit from operating activities is calculated:
Po \u003d Do - Ro, where
To and Ro - the sum of operating income and expenses.
The main types of operating income include:
Income from the sale of surplus (unnecessary) property.
Doi \u003d ((Tsprod. - Tspok.) / (1- stVAT / 100%)) * Vprod., where
Tsprod. And Tspok. - the sales price and the purchase price of a property unit, including VAT.
Vprod. - the volume of property sold in physical terms.
The denominator of this formula is needed to exclude VAT from the sales price and the purchase price;
Income from the rental of property.
Doa = AR / (1 + stVAT / 100%), where
AR - rent for a certain period;
Interest earned
Up to =% (CB + ZM), where
Central Bank - share of securities
ZM - loans from other organizations;
Income from joint activities
To.sd. = , where
The share of profits from joint activities that is transferred to a particular enterprise.
Ps.d. - the total amount of profit from joint activities.
Thus, the total amount of income from operating activities is:
Do = Do.i. + Do.a + Do.%% + Do.s.d.
The operating activity of the enterprise is connected not only with the formation of income, but also with the formation of expenses.
The main items of operating expenses can be presented:
R.o. = N.po. + %K, where
N.po. - priority taxes and payments that are directly related to the financial result of the enterprise's economic activity.
%K - interest paid on bank loans and borrowings = operating profit.
Important factors in the growth of profits, depending on the activities of enterprises, are the growth in the volume of products manufactured in accordance with contractual terms, the reduction in its cost, the improvement of quality, the improvement of the assortment, the increase in the efficiency of the use of production assets, and the growth of labor productivity.
Factors that do not depend on the activities of organizations include changes in state regulated chains for products sold, the impact of natural, geographical, transport and technical conditions on the production and sale of products, etc.
Under the influence of both those and other factors, the gross profit of enterprises is formed.
Gross profit is defined as the difference between the proceeds from the sale of goods, products, works, services (minus VAT, excises and similar obligatory payments) and the cost of goods, products, works and services sold. The proceeds from the sale of goods, products, works and services are called income from ordinary activities. Costs for the production of goods, products, works and services are considered expenses for ordinary activities. Gross profit also includes the amount of profit from fixed assets, other property of the enterprise and income from non-operating operations, reduced by the amount of expenses on these operations)
The balance sheet profit includes profit from sales and other activities, the balance of income and expenses from non-operating operations. The amount of book profit is often reflected in the desire to hide it from tax authorities. As evidenced by foreign studies, the extent of the decrease in balance sheet profit for this reason is inversely proportional to the size of the enterprise (firm). In foreign practice, net balance sheet profit (NBP) is calculated (for joint-stock companies). This is profit after taxes, but before it is distributed to dividends and deductions to reserve funds.
Net profit represents gross profit, which does not take into account the depreciation of capital, minus the funds spent, including those intended for the restoration of the fully used (amortized) part of the capital. Net profit in our practice is defined as the difference between the balance sheet profit and taxes paid by the company from the balance sheet profit. Net income also takes into account extraordinary expenses and income.
Extraordinary revenues are income arising as a consequence of extraordinary circumstances of economic activity (natural disaster, fire, accident, nationalization, etc.). These include insurance indemnity, the cost of material assets remaining from the write-off of assets unsuitable for restoration and further use, etc. Extraordinary expenses reflect expenses that arise as a consequence of emergency circumstances of economic activity (natural disaster, fire, accident, nationalization of property etc.).
Profit (loss) before tax is profit from sales, taking into account other income and expenses, which are divided into operating and non-operating.
The number of operating income includes receipts associated with the provision for a fee for temporary use of the organization's assets; receipts related to the granting for a fee of rights arising from patents for inventions, industrial designs and other types of intellectual property; income related to participation in the authorized capital of other organizations (including interest and other income from securities); proceeds from the sale of fixed assets and other assets other than Money(except for foreign currency), products, goods; interest received for the provision of the organization's funds for use, as well as interest for the bank's use of funds held on the organization's account with this bank.
Product quality improvement factor and consumer orientation. In terms of production efficiency, it is more important to focus on improving the quality of products than to fight only for a simple reduction in production costs. The increase in sales turnover is associated with a constant increase in customer-consumers (strengthening positions in existing markets, conquering new markets).
Factor of the company's position in the market, preservation and development competitive advantage. For example, Toyota is constantly striving to maintain its leadership among other companies in such an indicator of cars as reliability.
R&D rate factor. The implementation of R&D results allows to reduce costs, improve product quality, promote the emergence of new science-intensive products and, ultimately, strengthen competitive positions.
Factor of the level of organization of production and management.
The factor of creating conditions for the most complete implementation and continuous development of the "human factor", " human capital", increasing the interest of employees in the affairs of the company.
TO profit growth factors relate:
1) sales volume;
2) rising prices;
3) cost reduction;
4) updating the range and range of products.
During a period of high inflation, profit growth is provided by price factor . The slowdown of inflationary processes, the saturation of the market with goods, the development of competition limit the ability of producers to raise prices and make a profit through this factor. The increase in sales also cannot occur indefinitely. Tough competition, low level of solvent consumer demand impose restrictions on the growth of sales. Therefore, the method of reducing costs is used.
In practice entrepreneurial activity apply various ways cost reduction . Of course, such methods are used as saving fuel and raw materials, material and labor costs, reducing the share of depreciation in the cost, reducing administrative costs, etc. However, it should be borne in mind that cost reduction has its limit, after which it is impossible without reducing product quality. The same applies to administrative and commercial expenses, which cannot be reduced to zero, since without them the enterprise will not be able to function normally and products will not be sold.
Stages of profit calculation by the analytical method
In order to calculate the analytical profit, do not forget that you need to go through three successive stages:
1. Define as a private branch for the expected profit the basic profitability for the period of the reporting year and for the full cost price for the same period of time.
2. Exclusion in the planning period of the volume of commercial products, which is considered at the cost of the same reporting year and the determination of the profit that will be made on commercial products, based on the basic profitability.
3. Accounting for various factors of influence that are only possible to affect your profit - this is a decrease or increase in the cost of production, which is compared with an increase in its grade, as well as quality (in this case, the decrease is not affected, since it is impossible), price changes also affect, some big or small details in the range change and much more.
At the end of the current period, consideration of the profit plan for the next year already begins. After all, if the enterprise is large enough, it is necessary to start such actions in advance in order to have time to reduce all the reports by the beginning of the year. To determine the underlying profitability is often used data for the elapsed time, which was made in advance, and the expected plan, which must necessarily be completed for the period that remains before the end of the year.
Based on such studies for the year that ends, you can easily determine the level of basic profitability, as well as the planned volume for the next year, while it is imperative to take into account the fact that next year there will be insignificant changes in the volume of manufactured products, which is why, It is almost impossible to name an exact figure, but it is quite realistic to come very close to it.
Since the planned level differs slightly from the base level due to minor changes in price, assortment, grade, and much more, the next stage of planning necessarily takes into account and determines the impact that these factors produce on the planned profit. In order to be as close as possible to the exact result of the planned profit, it is necessary to take into account the balances that are available for the past year.
The main essence of the calculation - analytical method is that on the basis of the achieved indicator, which is accepted into the financial base, the value of the indicator is calculated. This method is used in the event that there is a lack of technical and economic standards. The algorithm of this method is quite simple - analysis of reporting indicators, evaluation of reporting data by experts, as well as an assessment of development prospects and, finally, development prospects. For this method, the rule "percentage of implementation method" is almost always used. The basis of this approach can be called the fact that most tattei directly depends on the volume of products that have been sold.
In the course of using the calculation-analytical method Financial Manager first of all, it determines the articles for the past periods in which the volume of products to be sold has slightly changed, determines the volume that is planned to be sold in the future, evaluates these articles in accordance with the data that it was provided on the volume of sales. This method is uniquely convenient.
Principles of profit distribution of the company and the main directions of its use
The main goal of profit management- its maximization in the current period and in the future.
It means:
1) Getting the maximum profit corresponding to the resources of the organization and market conditions;
2) Ensuring the optimal proportion between the level of generated profit and the acceptable level of risk;
3) Ensuring the payment of income on the capital invested by the owners;
4) Obtaining a sufficient amount of investment resources generated from profits in accordance with the objectives of business development;
5) Ensuring the growth of the market value of the organization, the effectiveness of programs for the participation of personnel in the distribution of profits.
In economic practice, profit is considered to be the excess of the total amount of income from sales and other income in current prices (excluding VAT and Excises) over the total amount of expenses for ordinary activities and other expenses.
The main indicators of Finn's results and types of profit are presented in the Profit and Loss Statement, which is as follows:
Net proceeds from the sale of goods, products, works, services (excluding VAT and Excises) - Cost of goods, works, services sold = Gross profit - Selling expenses - Management expenses = Profit (Loss) from sales + Other income - Other expenses = Profit (Loss) before tax +/- Deferred tax assets +/- Deferred tax liability- Current income tax = Net profit (loss) of the reporting period
The distribution and use of profits is an important economic process that provides both coverage of the needs of the organization and the formation of state revenues.
Legislatively, the distribution of profits is regulated in that part of it that goes to the budget in the form of income tax.
Determination of the direction of spending the profit remaining at the disposal of the enterprise after paying income tax is made on the basis of internal regulations, including constituent documents.
object distribution is the balance sheet profit of the enterprise. Its distribution is understood as the direction of profit to the budget and by items of use to the enterprise.
The principles of profit distribution in the organization can be formulated as follows:
1. The amount of the enterprise's profit remaining at its disposal after paying taxes should not reduce its interest in increasing production volumes and improving the results of the organization's FCD;
2. The profit remaining at the disposal of the enterprise, in the first place, should be directed to the accumulation that ensures its further development and only in the rest - for consumption;
The net profit of the organization at the end of the reporting period can be directed to:
1) For contributions to the reserve capital, the reserve capital must be created in a JSC, and can also be created in an LLC
2) For the payment of dividends in JSCs and part of the income on the shares of LLC;
JSC has the right to make decisions not only on the payment of dividends for the financial year, but also on the payment of interim dividends (quarterly, half a year, 9 months). However, the presence of sufficient profit does not mean at all that the company has the right to declare and pay dividends both on ordinary and preferred shares. .
All profit remaining at the disposal of the enterprise is divided into 2 fundamentally different parts. The use of the first indicates an increase in the property of the enterprise and the process of accumulation. Due to this part of the profit, the organization's accumulation fund is formed. At the same time, it is not necessary to use all the profits allocated for accumulation in full. The balance of profit unused to increase property is of great reserve value and can be used in subsequent years to cover possible losses and finance various expenses.
The use of the second part - does not lead to the formation of new property and characterizes the share of profit used for consumption. At the expense of this profit, the consumption fund is formed.
The value of profitability in assessing the company's activities. Types of profitability
Profitability indicators are used for a comparative assessment of the performance of individual enterprises and industries that produce different volumes and types of products. These indicators characterize the profit received in relation to the spent production resources. The most commonly used indicators are the profitability of products and the profitability of production.
There are three types of profitability:
a) production;
b) products;
c) investments.
Profitability of production(general) - economic indicator production efficiency, measured by the ratio of the total (balance sheet) profit to the average annual cost of fixed production assets and normalized working capital (the amount of profit per 1 tenge of production assets). The profitability of production characterizes the efficiency of the enterprise's use of production resources.
This indicator characterizes the efficiency of the production and economic activities of the enterprise, reflecting at what amount of capital used this mass of profit was obtained. The profitability of production is one of the most important indicators of the efficiency of the final activity of enterprises and firms, as well as the competitiveness and profitability of the production of goods and services.
Product profitability(rate of profit) is the ratio of the total amount of profit to the costs of production and sales of products (the relative amount of profit attributable to 1 tenge of current costs). With the help of product profitability, the efficiency of production of certain types of products is evaluated, and the profitability of production, or the overall balance sheet profitability, serves as an indicator of the efficiency of the enterprise (industry) as a whole.
ROI- investment efficiency indicator; net profit divided by the amount of investment. Sometimes return on investment is defined as the ratio of net income to the amount of equity and long-term debt.
An increase in the level of profitability is facilitated by an increase in the mass of profits, a reduction in the cost of production, and an improvement in the use of production assets. Profitability indicators are used in assessing the financial condition of the enterprise.
The ratio of profit to advanced cost or current costs expresses profitability.
In the most broad sense Profitability means profitability or profitability:
a) production and sale of certain types and the totality of products (works, services);
b) enterprises, organizations as business entities;
c) sectors of the economy:
The circulation of company funds and the essence of working capital
Along with fixed assets obligatory element production process are working capital.
Working capital includes that part of production assets that:
a) changes its normal form during the production process;
b) are entirely consumed in one production cycle;
c) immediately and completely transferring its value to production costs finished products.
working capital is the part of the company's capital invested in its current assets. On a material basis, working capital includes objects of labor (raw materials, materials, fuel, and so on), finished products in warehouses, goods for sale (resale), cash and funds in settlements.
Feature working capital is a high rate of turnover.
working capital - objects of labor. Being at different stages (from the moment of receipt of raw materials to the moment of release of finished products) of the production process.
After receiving the finished product and its realization cost of working capital, which were spent to obtain it, is returned in the proceeds from the sale. With the money received, the company buys new raw materials and materials and starts a new production cycle. In order for the cycle of production and sale not to be interrupted, it is necessary that the funds invested in the stocks of objects of labor make a continuous circulation.
The circulation of working capital covers three stages: procurement, production and marketing.
At the first stage(procurement): the funds of enterprises that are in the sphere of circulation and have a monetary form, pass into a productive form and begin to appear in the form of production reserves. D → P (purchase of objects of labor).
At the second stage(Production): Inventory enters the production process. There is a consumption of raw materials, fuel, energy, and so on, and ends with the release of finished products. At the time of the release of finished products, working capital changes its productive (production) form into a commodity one and moves from the sphere of production to the sphere of circulation. P → T.
At the third stage(sales): finished products are sold and the funds change the commodity form to cash. Size initial amount cash and sales proceeds do not match the amount of the financial result of the business (profit or loss).
D - money, T - goods, P - production, PZ - inventories, WIP - work in progress, GP - finished products.
An indispensable condition for the continuity of the circulation- simultaneous finding of funds at all stages. Elements of working capital continuously move from the sphere of circulation and again return to production. Part of working capital is permanently in the field of production(working capital), and the other - in the field of circulation(circulation funds).
The funds of circulation are continuously connected with the turnover of the funds of the enterprise and are, as it were, their continuation in the sphere of circulation. Making a circuit, circulating funds are transferred to circulation funds, which then again turn into circulating funds. There are no special funds that would perform only the functions of circulation funds or revolving funds. The same funds, depending on the functions performed, act as working capital, then as circulation funds.
There is an economic difference between circulation funds and revolving funds. In the process of circulation, circulating assets do not transfer their value, but only undergo changes in their form: from money to commodity, from production to commodity.
The composition of working capital - a set of elements that form working capital.
Raw materials are the objects of labor that the mining industry provides and Agriculture, and which for the first time enter into industrial processing (hide).
Materials - objects of labor that were previously subjected to industrial processing (leather, fabric, artificial materials).
In turn, the materials are divided into:
Basic (the main material substance of the finished product),
Auxiliary (performing an auxiliary role in obtaining products).
Low-value and high-wear tools and inventory - according to their functional value, they are related to fixed assets, but the principles of cost recovery that are used for fixed assets cannot be applied to them (> 1 year - fixed assets, and< 1 года - оборотные фонды).
Work in progress - objects of labor that are currently being processed at workplaces or are awaiting this processing at workplaces.
Semi-finished products - products completely worked out in one of the workshops of the enterprise, are subject to further processing in other workshops (semi-finished products of own production) or even enterprises (purchased semi-finished products).
That is, work in progress and semi-finished products differ in the degree of readiness in terms of obtaining finished products.
Prepaid expenses are intangible elements of working capital, including expenses. Produced in the current period, but related to future periods. For example, the costs of developing new products that are carried out in this period, but are charged to the cost of the future period.
The main features of the structure of working capital in light industry:
1. The ratio between circulation funds and working capital. If the commodity market is scarce, the manufacturer is a monopolist, then the circulation fund is low.
2. The ratio between inventories and work in progress (short production cycle).
3. In the structure of production stocks, the main share falls on stocks of raw materials and basic materials. The wider the range of products, the larger the list of materials (in the clothing industry, the share of stocks is ≈75%, low in the leather industry > 1/3).
Working capital structure - the ratio between the individual components of working capital. Presented as the proportion of each element in the total cost.
The role of working capital in the company's activities
The working capital of an enterprise is the monetary resources advanced into working capital and circulation funds. Each enterprise carrying out business activities must have working capital (working capital), which ensure an uninterrupted process of production and sale of products.
In terms of material content, circulating production assets are objects of labor that are involved in the production process in order to produce products. With their deficit, and even more so the absence, the enterprise simply cannot function.
Circulating assets are in constant motion, make a continuous circulation, while ensuring the reproduction process.
So, at the first stage, with the help of working capital, inventories are financed, thereby contributing to the continuity and rhythm of the technological process. At the second stage, working capital is used directly in production, advancing semi-finished products, unfinished and finished products, and deferred expenses. The third stage of the circulation of working capital takes place in the sphere of circulation, where, as a result of the sale of products, the working capital of the enterprise again acquires a monetary form.
Given that the circulation of working capital is an organic unity of all three of its stages, the shortage of working capital is transformed into all stages, paralyzing their normal functioning. Similar negative impact the production process is also affected by the slowdown in the movement of working capital at one stage or another.
The effective operation of the enterprise largely depends on the state of its working capital, namely, on their size and structure. It is important for the enterprise to correctly determine the optimal need for working capital, which allows, with minimal costs, to receive the profit planned for a given volume of production. Understating the amount of working capital entails an unstable financial condition, interruptions in the production process. An overstatement of funds in the turnover of the enterprise indicates that some of them will simply not be in demand, i.e., it will be used irrationally.
Working capital of the enterprise is formed from the authorized capital. The enterprise independently sets the planned amount of working capital at the level of the standard, i.e., the minimum, but quite sufficient amount of cash for normal production activities.
In a normally operating enterprise, the largest share is occupied by working capital serving the production process and the beginning of sales. Therefore, when rationing, attention is mainly paid to the production stocks of raw materials and materials, work in progress and finished products in stock. This part of the material working capital should be the object of constant control by the financial services of the enterprise.
The rest of the working capital has a rather heterogeneous character and needs an ambiguous approach when rationing. It is not advisable to limit or minimize the size of goods shipped, as they are a consequence of the sale.
The diversion of working capital into goods shipped but unpaid or into goods in safe custody at the customer's is highly undesirable. Predus
watch in advance Exact size this part of working capital is quite difficult.
The current structure of working capital has a significant impact on their condition and the security of the enterprise with real money. In principle, the working capital of an enterprise can be even more than the normative value, but in reality there may be a shortage of means of payment.
If, for example, working capital "hangs" in inventories, receivables, work in progress, which are poorly liquid assets, the lack of cash resources in circulation will be clearly felt. Therefore, for the efficient operation of the enterprise, it is important to ensure not only the standard terms for the movement of working capital through the stages of circulation, but also the maximum possible presence of them in the form of highly liquid assets, which are monetary assets and short-term financial investments.
Principles of normalization of working capital
To ensure the uninterrupted production and sale of products, as well as for the effective use of working capital at enterprises, their rationing is carried out. Rationing is the establishment of norms for the consumption of resources for a product. With its help, the total need of the enterprise for working capital is determined.
Consumption rates are considered to be the maximum allowable absolute values of the consumption of raw materials and materials, fuel and electrical energy for the production of a unit of output.
Rationing the consumption of certain types of material resources provides for compliance with certain scientific principles. The main ones should be: progressiveness, technological and economic feasibility, dynamism and ensuring the reduction of standards.
When planning the need for working capital, the following rationing methods are used:
1. Method of direct counting- scientifically based calculation of standards for each element of normalized working capital, taking into account changes in the level of organizational and technical development of the enterprise, transportation of goods and materials, and the practice of settlements with counterparties. This method is considered the main one in the industry.
2. Analytical- the OBS standard is established in the amount of their average actual balances for a certain period, taking into account the adjustment for surpluses and unnecessary stocks, as well as for changes in the conditions of production and supply. This method is used in those enterprises where the funds invested in material assets and costs have a larger share in the total amount of working capital.
3. Ratio- consists in adjusting the working capital norms in force in the previous period in accordance with changes in the volume of production and the acceleration of the turnover of the OBS. At the same time, inventories are divided into those that depend directly on changes in production volumes (raw materials, materials, costs of work in progress, finished products in stock) and those that do not depend on it (spare parts, deferred expenses, low-value items).
For the first group, the need for working capital is determined based on their size in the base year and the growth rate of production in the next year. For the second group, the demand is planned at the level of their average actual balances over a number of years.
4. Experimental laboratory- based on measurements of OBS consumption and volumes of manufactured products in laboratory and pilot production conditions. Consumption rates are established by selecting the most reliable results and calculating the average value using methods mathematical statistics. This method is used in chemical production, construction, extractive industries and ancillary production.
5. Reporting and statistical- based on the analysis of data from statistical (accounting or operational) reporting on the actual consumption of materials per unit of output for the past (base) period. It is used to develop norms for the consumption of material and raw materials and fuel and energy resources.
Rationing begins with determining the average daily consumption of raw materials, basic materials and semi-finished products (Rsut) in the planning period:
where P is the volume of material consumption for the period, rub.;
T - period of time.
Working capital ratio(Na.obs) - the value corresponding to the minimum, economically justified volume of reserves. It is usually set in days.
OBS standard(N obs) - the minimum required amount of funds to ensure the continuity of the enterprise. It is determined by the formula:
Nobs = Rsut * Na.obs.
OS stock rate (N a.os) for each type or homogeneous group materials takes into account the time spent in the current (3 tech), insurance (3 lines), transport (3 countries), technological (3 technical) stocks, as well as the time required for unloading, delivery, acceptance and storage of materials, i.e. preparatory stock (P r):
Na.os \u003d Ztek + Zstr + Ztran + Ztechn + Pr.
current stock designed to ensure production material resources between two successive deliveries.
This is the main type of stock, the most significant value in the OBS norm. The current stock in days is determined by the formula:
where Sp is the cost of delivery;
And - the interval between deliveries.
The current stock ratio is calculated by the formula:
Ztek \u003d Rsut * And,
Safety stock arises as a result of a violation of the delivery time.
In days, it is determined by the formula:
Safety stock standard:
Zstr \u003d Rsut * (If - Ipl) * 0.5 or Zstr \u003d Rsut * Zstr.days * 0.5,
where (If - Ipl) is a gap in the supply interval.
Transport stock is created at enterprises for those deliveries for which there is a gap between the timing of receipt of payment documents and materials. It is defined as the excess of the terms of cargo turnover (the time of delivery of goods from the supplier to the buyer) over the terms of the document flow.
The standard of the transport stock is calculated by the formula:
Ztr \u003d Rsut * (If - Ipl) * 0.5 or Zstr \u003d Rsut * Ztr.dn * 0.5,
where Ztr.dn - the norm of the transport stock, days.
Technological reserve- the time required to prepare materials for production.
The technology reserve standard is determined by the formula:
Ztech = (Ztec + Zstr + Ztr) * Ktech,
where Кteh - coefficient of technological reserve, %. It is established by a commission of representatives of the supplier and the consumer.
Preparatory Stock is established on the basis of technological calculations or by means of timing.
Working capital ratio in inventories is defined as the sum of the OBS standards in the current, technological and preparatory reserves.
OBS standard in work in progress(Nnp) is determined by the formula:
Hnp \u003d VPav.d. * Tts * Knar.z,
where VPsr.d is the average daily output at production cost;
TC - the duration of the production cycle;
Knar.z - coefficient of increase in costs, which, with a uniform increase in costs, is determined by the formula:
where З e - one-time costs (produced at the beginning of the production process);
C n - incremental costs (subsequent until the end of the production of finished products);
C - cost.
With an uneven increase in costs:
Knar.z = Сnz/ Ref ,
where snz - average cost products in work in progress;
Sp - the production cost of the product.
The standard of working capital in deferred expenses (N b.p.) is determined by the formula:
Nb.p. = RBPnach + RBPpred - RBPs,
where RBPnach - the carry-over amount of deferred expenses at the beginning of the planned year;
RBPpred - deferred expenses in the coming year, provided for by estimates;
RBPs - deferred expenses to be written off to the cost of production of the coming year.
The standard of working capital in the balance of finished products determined:
Ngp \u003d Vdn * Nz.skl.,
where Vdn - the cost of one-day production of finished products;
Nz.skl - the rate of their stock in the warehouse (in days).
The total working capital ratio is the sum of the working capital ratios calculated for individual elements.
The total need for working capital of the company and methods for determining it
Enterprises operating in modern economic conditions should have a certain property and operational independence in order to increase profitability, as well as be responsible for the decisions made. Under these conditions, there is an increasing need to determine the needs of enterprises in their own working capital, playing leading role in the normal operation of enterprises.
Determining the needs of the enterprise in its own working capital is carried out in the process of rationing, that is, determining the standard of working capital.
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. The domestic practice of normalizing working capital at industrial enterprises is based on a number of principles.
The need for own working capital for each enterprise is determined when compiling financial plan. Thus, the value of the standard is not a constant value. 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 need of an enterprise for its own working capital, the following must 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 not on an independent balance sheet, major repairs carried out on their own. In practice, the need for own working capital is often taken into account 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 production cost estimate 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 6th 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 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 estimate of production costs: for work in progress - based on the cost of gross or marketable output; for finished products - on the basis of the production cost of commercial products.
During the normalization process, private And aggregate standards.
The normalization process consists of several successive stages:
1. First, stock standards are developed for each element of normalized working capital. Norma - 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.
2. Further, based on the stock rate and consumption of this type of inventory items, the amount of working capital necessary to create normalized reserves for each type of working capital is determined. This is how private standards are defined.
3. And, finally, calculate the total standard by adding private standards . 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.
The following main methods of normalization of working capital are used:
direct counting method. This method consists in the fact that at first the value of the advance of working capital in each element is determined, then by their summation the total amount of the standard is determined.
Analytical method. It is used in the case when in the planning period there are no significant changes in the conditions of the enterprise compared to 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 rates of production volume and the size of normalized working capital in the previous period.
Coefficient method. At the same time, the new standard is determined on the basis of the old one by making changes to it, taking into account the conditions of production, supply, sales of products (works, services), and settlements.
In practice, it is most expedient to use the method of direct counting. The advantage of this method is the reliability that allows you to make the most accurate calculations private and aggregate standards.
Private standards include working capital in inventories:
Raw materials, basic and auxiliary materials, purchased semi-finished products, components, fuel, containers, MBP, spare parts;
In work in progress and semi-finished products of own production;
In deferred expenses; finished products.
The peculiarity of each element determines the specifics of normalization.
The standard of working capital advanced in raw materials, basic materials and purchased semi-finished products, is determined by the formula:
H \u003d R * D, where
H - the standard of working capital in stocks of raw materials, basic materials and purchased semi-finished products;
P - average daily consumption of raw materials, materials and purchased semi-finished products;
D - stock rate in days.
The average daily consumption for the range of consumed raw materials, basic materials and purchased semi-finished products is calculated by dividing the sum of their costs for the corresponding quarter by the number of days in the quarter.
Determining the stock rate is the most time-consuming and important part of rationing. The stock rate is set for each type or group of materials. If many types of raw materials and materials are used, then the norm is set for the main types, which occupy at least 70-80% of the total cost.
Stock rate in days for certain types of raw materials, materials and semi-finished products, it is established based on the time required to create transport, preparatory, technological, current warehouse and insurance stocks.
Transport stock necessary in cases where the time of movement of goods in transit exceeds the time of movement of documents for its payment. In particular, the transport stock is provided in the case of payments for materials on a prepaid basis. The transport stock in days is defined as the difference between the number of days of cargo run and the number of days of movement and payment of documents for this cargo.
Preparatory stock. Provided in connection with the costs of acceptance, unloading and storage of raw materials. It is determined on the basis of established norms or actual time spent.
Technological stock. This reserve is taken into account only for those types of raw materials and materials for which, in accordance with the production technology, preliminary preparation of production is necessary (drying, exposure of raw materials, heating, settling and other preparatory operations). Its value is calculated according to established technological standards.
Current warehouse stock (transport). It is recognized to ensure the continuity of the production process between the supply of materials, so in the industry it is the main one. The size of the warehouse stock depends on the frequency and uniformity of supplies, as well as the frequency of launching raw materials and materials into production. The basis for calculating the current warehouse stock is the average duration of the interval between two adjacent deliveries of a given type of raw materials and materials.
The duration of the interval between deliveries is determined on the basis of contracts, orders, schedules or based on actual data for the past period. In cases where this species raw materials and supplies come from several suppliers, the current stock rate is taken in the amount of 50% of the delivery interval. At enterprises where raw materials come from one supplier and the number of types of material assets used is limited, the stock rate can be taken as 100% of the delivery interval.
Insurance stock. It is created as a reserve that guarantees an uninterrupted production process in case of violation of the contractual conditions for the supply of materials (incomplete receipt of the batch, violation of the delivery time, inadequate quality of the materials received). The value of the safety stock is accepted, as a rule, within the limits of up to 50% of the current warehouse stock. It can be more if the enterprise is located far from suppliers and transport routes, if unique, high-quality materials are periodically consumed.
In this way, total inventory rate in days for raw materials, basic materials and purchased semi-finished products in general, it consists of the five listed stocks.
N \u003d Ttr + Tp + Tteh + T sk + T str.
Working capital ratio for auxiliary materials established in two main groups:
The first group includes materials consumed regularly and in large quantities. The standard is calculated in the same way as for raw materials and basic materials.
The second group includes auxiliary materials that are rarely used in production and in small quantities. The standard is calculated by analytical methods based on data for previous years.
The general norm of working capital for auxiliary materials is the sum of the norms of both groups.
Working capital ratio for fuel calculated in the same way as for raw materials and supplies. The standard for gaseous fuel and electricity is not calculated. When calculating fuel consumption, the need for fuel for production and non-production needs is taken into account. For production needs, the need is determined based on the production program and consumption rates per unit of output by workshop; for non-production - based on the amount of work performed.
The norm of working capital by container determined depending on the method of its preparation and storage. Therefore, the calculation methods for containers in different industries are not the same.
At enterprises that use large containers for packaging products, the working capital rate is determined in the same way as for raw materials.
For containers of own production used for packaging finished products and howling products and the wholesale price, the stock rate in days is determined by the time this container is in the warehouse from the moment of its manufacture to the packaging of products into it. If the cost of containers of own production is not included in the wholesale price of finished products, but is included in the cost of gross and marketable products, the standard for it is not set, since it is taken into account in the standard for finished products.
For returnable packaging received from the supplier with raw materials and materials, the working capital rate depends on the average duration of one turnover of the container from the moment the invoice for the container together with the raw materials is paid until the invoice for the returned container is paid by the supplier. The cost of containers intended for the storage of raw materials, materials, parts and semi-finished products in warehouses and workshops is not taken into account when determining the standard of working capital for containers, since they are included in fixed assets.
Working capital ratio for spare parts is set for each type of spare parts separately based on the timing of their delivery and the time of use for repair. The standard can be calculated on the basis of standard norms per unit of the book value of fixed assets, using the analytical method based on data from previous years.
For the first group, the standard is determined by direct calculation methods based on the set of low-value and high-wear tools and their cost. For the second group, the standard is set separately for office, household and industrial equipment. The standard for office and household inventory is determined based on the number of places and the cost of a set of inventory per place. For production inventory - based on the need for a set of this inventory and its cost.
Working capital standard for overalls and footwear determined on the basis of the number of employees to whom they rely, and the cost of one set. The standard for this group of working capital in the warehouse is determined by multiplying one-day consumption by the stock rate in days, including transport, current and insurance stocks.
For special equipment and devices, the standard is determined based on their set, cost and service life.
Must ensure a rhythmic production process and a uniform flow of finished products to the warehouse. The standard expresses the cost of products that have been started, but not finished, at various stages of the production process. As a result of normalization, the value of the minimum reserve sufficient for the normal operation of production should be calculated.
The amount of working capital advanced into work in progress is not the same for enterprises and industries. The main reasons for the differences are the characteristics of organizations, the volume of production, the structure of products.
Rationing of working capital in work in progress is carried out by groups or types of products for each unit separately. If the range of products is diverse, then the standard is calculated for the main products, which make up 70-80% of its total mass.
Working capital ratio in work in progress is determined by the formula:
H \u003d P * T * K, where
P - one-day costs for production;
T is the duration of the production cycle in days;
K - the coefficient of increase in costs.
One-day costs are determined by dividing the cost of the gross (commodity) output of the corresponding quarter by 90.
The product of the duration of the production cycle by the cost escalation factor is the stock rate in days for the item "Work in progress".
The duration of the production cycle reflects the time spent by products in work in progress from the first technological operation to the complete manufacture of products and transfer to the warehouse.
The production cycle includes technological stock (product processing time), transport stock (time for transferring the product from one workplace to another and to the warehouse), working stock (the time the product stays between processing operations) and insurance stock (in case of a delay in any operation ). When calculating the standard, the production cycle is determined for each type of product in calendar days, taking into account the number of shifts in the work of the enterprise per day. At enterprises producing a wide range of products, the duration of the production cycle is determined as a weighted average.
The cost escalation coefficient reflects the nature of the increase in costs in work in progress by days of the production cycle.
All costs in the production process are divided into:
One-time costs. These include costs incurred at the beginning of the production cycle (costs of raw materials, basic materials and purchased semi-finished products).
Rising costs. The remaining costs are considered accruing (depreciation of fixed assets, electricity costs, wages, etc.). The cost escalation factor is determined by the ratio of the average cost of a product in work in progress to the total cost of production. The coefficient is determined in different ways for production with a uniform and uneven increase in costs.
If the main share of costs goes into production at the very beginning of the production cycle (one-time), and the remaining (increasing) costs are distributed relatively evenly throughout the production cycle (in serial production), the coefficient is determined by the formula:
k \u003d (M + 0.5 R and) / C, where
M - planned costs for basic materials;
R l - other cost elements;
C - the planned cost of a unit of production.
Costs that increase evenly (Cp) are taken into account in the calculation of the average cost of the product in half, since they are at all stages of work in progress at the same time.
Norm for the article "Expenses of future periods" are calculated according to the formula:
H \u003d Po + Pn - Pc, where
Ro - the amount of expenses for future periods at the beginning of the planning period;
Pn - expenses incurred in the planning period according to the estimate;
Рс - expenses included in the cost of production of the planned period.
Finished products manufactured at the enterprise characterize the transition of working capital from the sphere of production to the sphere of circulation. This is the only standardized element of circulation funds.
Working capital rate for annual production is determined separately for finished products in the warehouse and for shipped goods, for which settlement documents are being processed.
The norm for finished products in a warehouse is determined by the time of picking and accumulating products to the required size, storing products in a warehouse until shipment, packaging and labeling products, and delivering them to the station of departure and shipment.
The norm for goods shipped, for which documents have not been submitted to the bank, is determined by the established deadlines for issuing invoices and payment documents, submitting documents to the bank, and the time the amounts are credited to the accounts of the enterprise.
Thus, private standards are established for each element of normalized working capital. Then the total working capital ratio is determined, reflecting general need enterprises in their own working capital in the planned period, by adding private standards.
Rationing of receivables is made on the basis of the following indicators:
Maximum value of accounts receivable:
The maximum amount of accounts receivable.
Accounts receivable rate should be based on the rate of inventories in days, the amount of profit received for the previous period, or the company's own funds in total, including the depreciation fund.
The minimum value should be the norm of the transport stock ( Min = Ntr), because the transport costs in days in this case are the same value in terms of the remoteness of the suppliers of materials and the timing of the workflow. A change in the norm of the transport stock occurs only in the case of a replacement of suppliers of raw materials and materials.
The maximum value of receivables is determined on the basis of the following: the current stock is spent on the basis of the planned target, and the safety stock remains untouched for some time.
At the same time, the maximum value of receivables is the sum of the safety stock and the ratio own funds enterprise (borrowed) to average daily costs (to determine the number of days during which the enterprise can use its own funds) ( Max = Nstr. + own funds/W). The company's profit or specially formed funds are used as own funds.
The minimum and maximum values can be defined both in days and in value terms. At the same time, the company determines for itself time and cost components of receivables for the normal reproduction of raw materials and materials, as well as reserves for the growth of output due to a decrease in the amount of receivables.
The proposed method for determining the minimum and maximum debt will allow industrial enterprises to increase the number of products, reduce the duration of turnover and the cost of production, which will significantly affect the competitiveness of both individual enterprises and the industry as a whole.
Methods for planning the need for working capital of the company
The effective use of working capital largely depends on the correct determination of the need for working capital. Understating the value of working capital entails the instability of the financial situation, interruptions in the production process and a decrease in production and profits. An overestimation of the size of working capital reduces the ability of an enterprise to make capital expenditures to expand production (Fig. 11).
The need for working capital depends on many factors: production and sales volumes; the nature of the enterprise; the duration of the production cycle; types and structure of consumed raw materials; production growth rates, etc.
An accurate calculation of the enterprise's need for working capital should be based on the time spent by working capital in the sphere of production and circulation.
The residence time of working capital in the sphere of production covers the period during which working capital is in the state of stocks and in the form of work in progress.
The residence time of working capital in the sphere of circulation covers the period of their stay in the form of balances of unsold products, in the form of shipped, but not yet paid for products, receivables, in the form of cash held in the cash desk of the enterprise, in bank accounts.
The higher the turnover rate (the total time spent in the sphere of production and circulation), the lower the need for working capital.
The company is interested in reducing the size of its working capital. But this reduction should have reasonable limits, since working capital should ensure its normal operation.
When determining the optimal need for working capital, the amount of money that will be advanced to create inventories, backlogs of work in progress and the accumulation of finished products in the warehouse is calculated. Three methods are used for this: analytical, coefficient and direct counting method.
Essence analytical, or the experimental-statistical method lies in the fact that when analyzing the available inventory items, their actual stocks are corrected and excessive and unnecessary values are excluded.
At coefficient method, the standard of the previous period is amended for the planned change in production volumes and for the acceleration of turnover.
Analytical and coefficient methods can be applied at those enterprises that have been operating for more than a year, have formed a production program and organized the production process, have statistical data for past years and do not have enough qualified specialists for more detailed work in the field of working capital planning.
Method direct account provides for the calculation of stocks for each element of working capital. This method is used when organizing a new enterprise and periodically clarifying the need for working capital of an existing enterprise.
The general standards of own working capital are determined in the amount of their minimum requirement for the formation of stocks of raw materials, materials, fuel, work in progress, deferred expenses, finished products.
The general standard of working capital consists of the sum of private standards:
where N p h - the standard of production stocks; N np- standard of work in progress; N gp- standard of finished products; H br- standard of future periods.
The standard of production stocks depends on the average daily consumption of raw materials, fuel materials and the stock rate in days:
where R s- average daily consumption of a given type of raw material or materials
(in rubles); T days- stock rate in days.
The average reserve rate in days is calculated as a whole as a weighted average of the norms of the stock of working capital for certain types.
The stock rate in days for a particular type, consists of the following components:
where T tr- transport stock; T tech- current warehouse stock; T str- insurance (warranty stock); T season- Seasonal stock.
Transport stock is set according to the duration of the cargo run from the supplier to the consumer, taking into account the time of the document flow.
If there are several suppliers, then the transport stock is determined as a weighted average, taking into account the duration of the run and the size of the supply:
Scope of delivery, t Cargo run time, days
1st supplier 20 15
2nd supplier 30 14
3rd supplier 10 12
T tr\u003d (20 × 15 + 30 × 14 + 10 × 12) \ (20 + 30 + 10) \u003d 14 days.
Current warehouse stock material assets are called a stock that meets the needs of production for the period between two successive receipts of their suppliers (Fig. 12).
The composition of working capital includes the average current stock, taken in the amount of 50% of the duration of the interval between two adjacent deliveries:
where AND- duration in days of the interval between deliveries.
The average interval between deliveries can be calculated using the formula:
where P- the number of deliveries for the period.
Guaranteed (insurance) stock material assets is called a stock designed to meet the needs of production in case of a delay in the receipt of material assets.
The value of the safety stock is usually set within 50% of the value of the current stock. This limit is increased if the enterprise is located far from suppliers, the materials consumed are unique, the manufactured products require many components or components from different suppliers.
Seasonal stock is calculated at enterprises with a seasonal supply of raw materials.
The amount of working capital for work in progress is determined taking into account the duration of the production cycle and the value of the cost increase factor:
where IN- the volume of the average daily output of products at the production cost; T c- the duration of the production cycle; To ne- the coefficient of increase in costs in work in progress.
production cycle refers to the number of manufacturing processes involved in the manufacture of a product.
Production cycle time consists of the time spent directly on the processing of raw materials, materials, blanks, and the time required for breaks between operations from the beginning of the first operation to the delivery of finished products to the warehouse.
Cost escalation factor characterizes the degree of product readiness and is determined by the ratio of the cost of work in progress to the cost of finished products.
The increase in costs can be uniform and uneven (slow and accelerated).
At even increase in costs the cost escalation factor is found by the formula:
where C n- the cost of raw materials and materials entering the production process; C to- the cost of the finished product.
At uneven increase in costs cost escalation factors are first determined at several points in the production process:
where K i- coefficient of increase in costs at the i-th point; C i- the cost of work in progress at the i-th point; C to- the cost of the finished product.
The overall cost escalation factor for the process is calculated as an average value:
where K nz- the overall cost escalation factor for the process; i- the number of points for calculating partial coefficients.
The amount of working capital invested in stocks of finished products in the warehouse depends on the average daily output of products and the duration of storage of products in the warehouse :
where IN- average daily output at production cost; T xp- the average duration of storage of finished products in the warehouse.
The duration of storage of products in a warehouse, in turn, is calculated as the sum of the time for the formation of a batch of products for shipment and execution of documents for this batch:
where T fp- time required to form a batch for shipment of finished products to the consumer, days; T od- the time required to complete the documents for sending the goods to the consumer, days.
Calculated in one way or another, the amount of working capital necessary for normal operation increases the efficiency of using this resource.
