Indicators of turnover of circulating assets of the enterprise
Business activity of the enterprise is estimated athelp a special kind of indicators - indicators of turnover. They characterize how intensively and effectively a particular resource is used. These indicators can be calculated in two forms and characterize either the number of revolutions per period or the duration of one such turnover. Even based on the name alone, it can be judged that the analysis of the turnover of the company's circulating assets is extremely important for studying the financial state of the organization.
Circulating assets in the general case can be consideredSubjects of labor, for which a certain activity of the firm is directed. They are completely consumed in the production process, so the faster they turn around, the better. Of course, the above is more relevant to reserves, but the acceleration of turnover and other elements of current assets will be extremely positive. Let's consider in more detail some indicators оборачиваемости circulating assets.
Naturally, the first step is to assessturnover of the total value of this property. To calculate the coefficient, it is sufficient to divide the amount of revenue received for a certain period by the average value of circulating assets over the same period. The use of the average in calculations is obviously due to the fact that it is necessary to take into account possible changes in the value of property that occurred during the period. This indicator characterizes how much revenue each unit of the value of current assets could bring. The period during which one revolution passes is determined by dividing the duration of the period under study by the number of revolutions. Usually the period is a year or a quarter, so the numerator will be either 360 or 90 days.
Indicators of turnover of circulating assetsalso should be calculated in the context of individual groups of property, which can be found in the balance sheet. It is very important to determine the turnover of debt, which the company can recover - a receivable. It is calculated by exactly the same method, and in this case, too, it will be expedient to calculate the duration of the turnover. In addition, it is especially important to assess the turnover of the "debtor" in the part of the debt of buyers. The length of the turnover of this debt reflects the average period that an enterprise lends to its customers.
Indicator of turnover of formed reservesis also included in the turnover of circulating assets. Its definition is made in a slightly different way, since in the numerator of the formula is not the revenue, but the sum of the cost of production. This choice is due to the peculiarities of the reserves. As for determining the duration of one revolution, there is no difference.
The last important indicator that wewe will consider, will be оборачиваемость money resources. It is also determined on the basis of revenue and characterizes its value per unit of free money of the organization. The length of the turnover in this case will show how long the money is on average not present in the turnover and do not participate in the formation of revenue.
Indicators of turnover of circulating assetsshould be subjected to constant study and analysis. With respect to the coefficients, it should be ensured that the number of revolutions should increase, therefore, appropriate managerial decisions must be made. Thus, the period of one turnover should be reduced. This may be due to either revenue growth, or a decrease in the average value of a property. It should also be remembered that the indicators of the efficiency of working capital are not limited to the indicators of their turnover. It is necessary to determine and analyze the coefficients of profitability of this property.