Inverse coefficient of turnover of working capital. Asset turnover - balance sheet formula

Activity financial activities commercial organizations is based on the analysis of a number of indicators, which include the turnover of assets, the calculation of which allows you to determine how effectively the organization uses its assets or liabilities.

Asset turnover

COds \u003d V / DS, where

KOds - cash turnover ratio,
B is the revenue
DS - the amount that is on the accounts and cash of the enterprise.

If the coefficient tends to decrease, this means that the work of the enterprise is organized inefficiently, and highly liquid assets are used with a slowdown.

Turnover of tangible current assets (stocks)

The correct organization of the production process also requires the efficient use of stocks, the calculation of which is carried out in the following order:

KOzap \u003d V / ZAP, where

KOzap - inventory turnover ratio,
B is the revenue
ZAP - book value of inventories.

An increase in the indicator indicates that the demand for products sold is at good level and the goods are not stale in warehouses. A decrease in the indicator indicates that the marketing policy of the enterprise is poorly organized and requires careful analysis.

The analysis of these indicators should be carried out not by comparison with established norms, but by considering their dynamics over the past years and comparing with the activities of competitors. So, if the indicator does not reach the norm, but at the same time, against the background of other reporting periods, it is of greater importance, this indicates the correct organization of the enterprise's activities and a gradual increase in asset turnover.

Profitability analysis of organizations

Financial and economic activity any legal entity, regardless of the form of ownership, is evaluated by analyzing the absolute and relative indicators of its activities. The indicators of the first group of economic burden do not carry and are purely arithmetic in nature.

Relative indicators characterize how well the financial and economic activities of the enterprise are organized and show the dynamics of its development. One such indicator is return on assets, which is calculated by multiplying the asset turnover ratio by the return on sales.

It is the ratio of net profit to revenue, and net profit, in turn, is the difference between the revenue received and the cost of goods sold.

Thus, the higher the return on assets, the greater the profit of the organization in the reporting period.

We analyze the results

Ra \u003d PE / SAav, where

Ra - return on assets,
PE - net profit,
CAav is the average value of assets.

Profitability is calculated in the same way. current assets.

To do full analysis the activities of the enterprise must take into account all groups of factors: return on assets, profitability of sales, intensity of operation of fixed assets, efficiency of financial management. Constant monitoring of the company's activities will allow developing the right development strategy aimed at ensuring financial stability. Completeness of analysis entrepreneurial activity also depends on the correctness of the data provided in the reporting documentation.

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The asset turnover ratio is an important financial indicator of the intensity of the use of existing assets by an enterprise. It is characterized by the speed of turnover and shows the effectiveness of the distribution of own, as well as borrowed sources of financing for the activities of an economic entity, including capital and profit. The value of the coefficient for the analyzed period is directly proportional to the amount of sales and is equal to the number full cycles asset turnover.

What is asset turnover

The definition of asset turnover (from the English asset turnover) is used to manage the total resources of the organization, including property, non-property objects, obligations of a different nature. This term indicates the level of business activity of a business. How more value, the more successful the company and the higher the profitability per ruble of assets. The lower the value, the lower the liquidity, the higher the receivables, the lower the profitability.

To assess the turnover of assets (the balance sheet formula is given below), we use economic methods calculations based on average indicators characteristic of a particular industry, enterprise. The analysis is carried out in dynamics, it is advisable to carry out research on the values ​​of direct competitors in the market. To get the full picture, a positive trend is required with the growth of indicators from period to period. If the values ​​remain low, it is necessary to optimize assets by freeing up unused resources, reducing excessive inventories of goods and materials, developing measures for settlements with debtors, etc.

Asset turnover ratio - balance sheet formula

To maximize the accuracy of mathematical formulas, it is recommended to take reliable accounting data at the end of the last reporting day. If monthly/yearly analytics are available, use this data by dividing the corresponding figures by 12 (for months) and 2 (for a year). The data is taken from the accounting forms - 1, 2.

Depending on the purpose financial analysis 2 calculation methods are used:

1. Rates turnover rate- for the analyzed period of time, the value of the turnover of the enterprise's assets for each ruble of proceeds is calculated.
2. characterizes turnover period- the length of time for which the assets of the enterprise are returned to the production cycle is determined.

The asset turnover rate is calculated on a certain date using the coefficient according to the formula:

OA ratio = Total sales revenue / average value assets for the reporting period

Average value of assets for the reporting period = (Value at the beginning in rubles + Cost at the end in rubles) / 2

The turnover period in days is calculated for a given time period. The duration can be a month, a quarter, a half year, a year. The formula applied is:

OA period = Duration (30, 90, 180, 360 days) / Turnover ratio

Lines in financial statements

Basic data for determining financial indicators are taken from the mandatory forms financial statements. The forms were approved by order No. 66n dated July 2, 2010. Form-1 “Balance Sheet” and form-2 “Report on financial results» for the analyzed period.

Calculation formulas with component coding

OA coefficient = line 2110 / (line 1600 at the beginning + line 1600 at the end) / 2, where

2110 - the value of revenue from f. 2;

1600 - the total value of assets from f. one.

The growth of the OA ratio shows an increase in the turnover of resources, an increase in profitability and sales income per unit of assets. The decrease characterizes the decrease in the trading activity of the business, the increase in the volume of assets. The transformation indicator during the OA period is used to assess the duration of the transformation of assets into real cash.

Most high values OA are typical for enterprises with a high speed of circulation of resources - trade, logistics, services; for companies engaged in capital-intensive industries (mining, construction) - turnover is lower and requires analysis in dynamics.

Turnover ratios or business activity of the enterprise- show the effectiveness of the use by the enterprise (organization) of its capital and funds. These ratios show the rate of capital turnover and its transformation into cash. Turnover ratios directly determine the degree of solvency of the enterprise (the ability to pay its obligations), financial stability and financial risk. Turnover ratios in their calculations do not use net profit as profitability ratios, but proceeds from the sale of goods and services. This allows you to evaluate not the profitability of the enterprise, but its intensity and turnover rate of resources, assets, stocks, cash, receivables and payables.

This article will consider the main enterprise turnover ratios most commonly used in financial practice, such as:

1. Asset turnover ratio
2. Turnover ratio equity
3. Current assets turnover ratio
4. Inventory and asset cost turnover ratio
5. Turnover ratio accounts receivable
6. Accounts payable turnover ratio
7. Cash turnover ratio

The asset turnover ratio is the ratio of revenue from products sold to all assets of the enterprise. This ratio shows the efficiency of the use of assets and shows the number of turnovers of the entire capital for the period and the amount of money that a unit of assets brought.

There are no normative values ​​for the asset turnover ratio, so it is necessary to directly investigate the dynamics of change this indicator over time for a single enterprise or industry. In capital-intensive industries, asset turnover will be lower than in the areas of trade. The higher the asset turnover ratio, the more efficient the use of assets. This indicator differs from the return on assets indicators in that it does not show the profitability of the enterprise, but characterizes the intensity of turnover. Therefore, in the turnover formulas, not net profit is used, but the company's revenue for the reporting period. The formula for calculating the asset turnover ratio is as follows:

Asset turnover ratio= Sales revenue / Average assets for the period

Asset turnover ratio\u003d p. 10 Form No. 2 / (0.5 * (p. 300 beginning of the year + p. 300 end of the year))

The equity turnover ratio is calculated as the ratio of the volume of product sales (revenue) to the average annual cost of equity capital. The equity turnover ratio shows the activity and rate of use of equity by the enterprise.
There are no normative values ​​of the equity turnover ratio, it is necessary to investigate the dynamics of this indicator for one enterprise. The formula for calculating the equity turnover ratio is as follows:

Equity turnover ratio= Revenue from product sales / Average cost of equity for the period

Equity turnover ratio= line 10 Form No. 2 / 0.5 * (line 490 at the beginning of the year + line 490 at the end of the year)

The turnover ratio of current assets shows the activity of use and the speed of circulation of current assets. This coefficient characterizes how much current assets made a full turnover in one year and how much revenue they brought. Current assets include accounts receivable, cash, reserves and deferred expenses, short-term financial investments. The higher the value of this ratio, the more efficient the enterprise. The formula for calculating the turnover ratio of current assets:

Current assets turnover ratio= Net revenue from product sales / Average annual cost current assets

Current assets turnover ratio= line 10 Form No. 2 / 0.5 (line 290 at the beginning of the year + line 290 at the end of the year)

The inventory turnover and asset cost ratio shows the intensity of inventory use and the rate of turnover.
There are no standard values ​​for the turnover ratio. This indicator must be analyzed in dynamics for a particular enterprise or industry. A decrease in the turnover ratio indicates that the accumulation of excess stocks in the warehouses of the enterprise. The higher the inventory turnover ratio and asset costs, the higher the activity of the enterprise in creating cash. Excessively high inventory turnover and asset costs are indicative of severe inventory shortages and rapid depletion. The formula for calculating the inventory turnover ratio and asset costs:

Inventory and asset cost turnover ratio= Net revenue from product sales / Average annual inventory value

Inventory and asset cost turnover ratio\u003d p. 10 Form No. 2 / 0.5 * [(p. 210 + p. 220) at the beginning of the year + (p. 210 + p. 220) at the end of the year]

The accounts receivable turnover ratio shows the rate of turnover of accounts receivable. There are no clear standard values ​​for the receivables turnover ratio, they vary depending on the industry, but the higher the ratio, the faster consumers repay their obligations, which is beneficial for the enterprise. The formula for calculating the receivables turnover ratio is as follows:

Accounts receivable turnover ratio= Revenue from the sale of goods and services / Average annual receivables

Accounts receivable turnover ratio\u003d p. 10 Form No. 2 / 0.5 * [(p. 230 + p. 240) at the beginning of the year + (p. 230 + p. 240) at the end of the year]

The accounts payable turnover ratio shows the speed and intensity of repayment of the company's obligations to borrowers and characterizes the number of turnovers of repayment of accounts payable for the reporting period, which, as a rule, is one year. The normative value of the accounts payable turnover ratio depends on the industry and the nature of the enterprise. The formula for calculating the accounts payable turnover ratio is as follows:

Accounts payable turnover ratio= Revenue from the sale of goods and services / Average accounts payable

Accounts payable turnover ratio= line 10 Form No. 2 / 0.5 * (line 620 at the beginning of the year + line 620 at the end of the year)

The cash turnover ratio shows the intensity of the use of the company's cash and shows the number of turnovers for the reporting period. The formula for calculating the cash turnover ratio is as follows:

Cash turnover ratio= Revenue from the sale of goods and services / Average amount of cash

Cash turnover ratio= line 10 Form No. 2 / 0.5 * (line 260 at the beginning of the year + line 260 at the end of the year)

conclusions
Turnover ratios are an important indicator of the efficiency of the use of resources by an enterprise. These indicators, in contrast to profitability indicators, show the turnover rate and intensity, because in their calculation formulas they use revenue values ​​(rather than net profit, as in profitability ratios). Turnover ratios are studied in dynamics to analyze the direction and assess the nature of their change for one enterprise, a group of similar enterprises and one industry.

current assets- one of the resources without which the commercial activity of the enterprise is impossible. Calculation and analysis of indicators turnover current assets characterizing the efficiency of managing this resource will be considered in this article.

Current assets, their composition and indicators for analysis

Systematic analysis commercial activities enterprises as an element of effective management is based on the calculation of a number of indicators and the normalization of their values. Comparison of actual and standard indicators makes it possible to identify various patterns in business processes, eliminate risks, and make timely and correct management decisions.

The main source of information for calculating analytical coefficients is financial statements.

A significant part of the calculations is based on information about the movement and balances current assets.

To current assets include the following types of company assets:

• stocks, including raw materials, materials, goods for resale and goods shipped, finished products, Future expenses;
• VAT on purchased assets;
• accounts receivable;
• financial investments;
• cash.

In accordance with PBU 4/99 "Accounting statements of the organization" data on current assets enterprises are contained in section II of the balance sheet. Often in the literature you can find the terms "working capital" or "funds in circulation."

Value current assets used in the calculation of the following indicators:

• profitability;

• liquidity;

• financial stability.

Let's take a closer look at analysis turnover of current assets, which is one of the aspects characterizing the business activity of the enterprise.

Why do you need a current asset turnover analysis?

Dynamics of indicators characterizing turnover working capital, is necessarily disclosed in the information accompanying financial statements (clauses 31, 39 PBU 4/99), as part of a group of coefficients that allow interested users of financial statements to assess the financial stability, liquidity and business activity of the enterprise. current assets and their fair assessment are carefully checked in the process of auditing financial statements.

Competent management of funds in circulation allows you to effectively attract credit sources to finance current activities. To assess the creditworthiness of an enterprise, banks use well-known indicators for assessing financial and economic activities. Based on the ranking of these indicators, an enterprise is assigned a certain rating, on which credit conditions depend, including the credit rate, the amount of collateral and the loan term. current assets may also serve as collateral for loan obligations.

The presence of a system of analytical coefficients greatly facilitates the dialogue with tax authorities if it is necessary to explain the causes of seasonal losses. current assets may cause an excess of VAT deductions over the amount of VAT accrued.

Consider the procedure for calculating turnover ratios.

Current assets turnover ratio

The turnover ratio shows how many times in the period under review current assets converted into cash and vice versa. The coefficient is calculated by the formula:

Kob \u003d B / SSOA,

where: Cob - turnover ratio of current assets ;

B - revenue for the year or another analyzed period;

SSOA - average cost current assets for the analysis period.

Attention should be paid to the calculation average cost current assets. For the purposes of obtaining the most correct value of the turnover ratio, it makes sense to divide the analyzed period into equal intervals and calculate the average cost using the following formula:

SCOA \u003d (COA0 / 2 + COA1 + COAn / 2) / (n - 1),

where: SSOA - average cost current assets for the period of analysis;

SOA0 - the balance of funds in circulation at the beginning of the analyzed period;

СОА1, СОАn - the balance of funds in circulation at the end of each equal interval of the analyzed period;

n is the number of equal time intervals in the analyzed period.

This method of calculating the average value of funds in circulation will take into account seasonal fluctuations in balances, as well as the influence of external and internal factors.

However, the value of the calculated turnover ratio gives only general information about the state of business activity of the enterprise and is of no value for management without analyzing its dynamics, comparing it with standard indicators.

Turnover of current assets: formula in days

The most informative indicator from the point of view of managing the commercial activities of an enterprise is the turnover of current assets in days or other units of time (weeks, months). This indicator can be calculated using the formula:

About \u003d K_dn / Cob,

where: About - turnover in days;

K_dn - the number of days in the analysis period;

Cob - turnover ratio of current assets.

The normative values ​​of turnover in days and the turnover ratio are set by the enterprise independently based on an analysis of a combination of factors, such as the terms of contracts, industry specifics, region of activity, etc.

current assets have different structure depending on the type of activity. For example, if an enterprise provides services and does not have stocks, the focus in the analysis of current assets turnover will be on receivables. Efficient Management this type of funds in circulation will give the company the opportunity to release the funds frozen in receivables and thereby improve the financial position of the enterprise.

How to set the standard for the turnover of receivables? It is necessary to compare the turnover of receivables with the turnover of accounts payable. The economic effect of managing receivables will be the higher, the greater the excess in days of accounts payable turnover over receivables turnover.

An analysis of the dynamics of receivables turnover indicators will make it possible to identify negative trends in the event that uncollectible debts appear in the receivables.

Results

current assets Enterprises are a rapidly changing resource that reacts most sharply to changes in the external and internal business environment. Turnover indicators current assets are an important indicator of the effectiveness of the commercial activities of the enterprise.

In this article, we will look at turnover working capital, as one of the most important indicators for assessing financial condition enterprises.

Working capital turnover

Working capital turnover (English Turnover Working Capital) is an indicator related to the company and characterizing the intensity of the use of working capital (assets) of the enterprise/business. In other words, it reflects the rate of conversion of working capital into cash during the reporting period (in practice: year, quarter).

The formula for calculating the turnover of working capital

Working capital turnover ratio (analogue: fixed asset turnover ratio, K ook) - represents the ratio of sales proceeds to the average working capital.

The economic meaning of this ratio is an assessment of the effectiveness of investing in working capital, that is, how working capital affects the amount of sales proceeds. The formula for calculating the turnover ratio of working capital on the balance sheet is as follows:

In practice, the analysis of turnover is supplemented by the coefficient of fixing working capital.

Coefficient of fixing working capital- shows the amount of profit per unit of working capital. The calculation formula is inversely proportional to the working capital turnover ratio and is as follows:

- shows the duration (duration) of the turnover of working capital, expressed in the number of days required for the payback of working capital. The formula for calculating the turnover period of working capital is as follows:

Analysis of working capital turnover

The higher the value of the turnover ratio of working capital, the higher the quality of working capital management in the enterprise. In financial practice, there is no single generally accepted value of this indicator; the analysis must be carried out in dynamics and in comparison with similar enterprises in the industry. The table below shows different kinds turnover analysis.

Video lesson: "Calculation of key turnover ratios for OAO Gazprom"

Summary

The turnover of working capital is the most important indicator of the business activity of the enterprise and its dynamics directly reflects the financial stability of the enterprise in the long term.