How to determine the need for working capital Ah, they are divided into normalized and non-normalized.
For normalized, stock standards are established. Their purpose is to ensure the continuity of the production process.
The material elements of working capital are normalized: stocks and costs.
The need must be linked: 1)
with an estimate of production costs; 2)
with the production plan of the enterprise (On the basis of this, the production cost of production is determined); 3)
with forecasting the volume of sales of products.
Three methods are used to determine the need for working capital:
1. Analytical. The need for working capital is determined based on the average actual balance of inventories in order to identify excess and illiquid working capital.
All stages of work in progress are analyzed to identify reserves for reducing the duration of production.
The causes of accumulation are being studied finished products in stock.
This method is used where funds invested in inventories and costs take a large share in total current assets.
3. Coefficient. Stocks and costs are divided into two groups:-
directly dependent on the increase in production volume (raw materials, materials, costs of work in progress and finished products). The need for them is determined on the basis of their size in the base period, the growth rate of production volume and the possible acceleration of the turnover of working capital. -
independent of the growth in production volume (MBP, spare parts, deferred expenses), the need for which is determined based on the average actual balances over a number of years.
Both methods are used in combination. They are used in enterprises that have been operating for more than a year.
3. Method of direct counting. It is used in the organization of new production, is the most accurate, justified, but at the same time quite laborious. Working capital is planned for each element, based on consumption standards in monetary terms for 1 day, which are calculated as an average of the quarterly demand and the stock rate (in days).
At enterprises with a seasonal nature of production, the need for working capital is determined by the period with a minimum volume of production. In addition, the need is covered by loans. With a non-seasonal character - according to the period with the maximum production volume.
4. Based on the financial cycle. Currently, aggregated methods for calculating the need for working capital are used. They are based: on the duration of the financial cycle; on the planned costs at the appropriate stages of the financial cycle. Based on the financial cycle, the overall financial needs are determined.
The management of current assets of an enterprise is associated with specific features of the formation of its operating cycle. The operating cycle is a period of complete turnover of the entire amount of current assets, during which there is a change in their individual types. The movement of current assets of the enterprise in the process of the operating cycle goes through four main stages, consistently changing its forms.
At the first stage, monetary assets are used to purchase raw materials and materials, i.e. incoming stocks of tangible current assets.
At the second stage, the incoming stocks of tangible current assets as a result of direct production activities are converted into stocks of finished products.
At the third stage, stocks of finished products are sold to consumers and, before the due date for their payment, are converted into receivables.
At the fourth stage, the collected (i.e. paid) receivables are again converted into monetary assets.
Operating cycle:
D - T .... - ….Production…. - ….T? - D?
In the process of managing current assets within the operating cycle, there are two main components:
1) The production cycle of an enterprise, which characterizes the period of complete turnover of the material elements of current assets used to service the production process, starting from the moment raw materials and semi-finished products arrive at the enterprise and ending with the moment the finished products made from them are shipped to customers.
2) The financial cycle of an enterprise is a period of full turnover Money invested in current assets, starting from the moment of repayment of accounts payable for received raw materials, materials and semi-finished products, and ending with collection of receivables for delivered receivables.
SHOW POD
The duration of the financial cycle is determined by the following formula:
PFC \u003d PPC + POdz - POkz,
where PFC is the duration of the financial cycle (money turnover cycle) of the enterprise, in days;
PPV - the duration of the production cycle of the enterprise, in days;
POdz - the average period of turnover of receivables, in days;
POkz - the average period of turnover of accounts payable, in days.
When calculating the needs of the enterprise in working capital, it is necessary to take into account the costs at all stages of the financial cycle.
In order to reduce the need for working capital, the company seeks to reduce the duration of the financial cycle.
AT financial management it is very important to correlate that part of current assets, which is covered by loans, and that part of current assets, which is diverted from turnover into settlements.
The calculation of working capital in the calculations is carried out according to the following formula:
OSR \u003d ((Vcr * Kmz / in) / T) * Dcr
Where OSR - working capital in the calculations;
Vkr - the cost of products shipped on credit;
Kmz / in - the share of material costs in revenue;
T is the period in days;
Dcr - average term crediting (enterprise) in days.
Calculation of the amount of working capital financed by loans:
PS \u003d (Mcr / T) * Dm
PS - attracted funds;
Mcr - the cost of raw materials, materials, semi-finished products received on credit;
Dm is the average loan term (enterprise).
In order to balance the planned need for financial resources and attracted sources of financing, it is advisable to mutually compensate for the positive and negative results of mutual settlements.
To this end, the duration (or amount) of credits and loans provided to customers must be less than the duration (or amount) of loans and advances received from suppliers.
The reduction factor directly depends on specific gravity material costs in the cost of products (works, services).
Example: Suppliers provide an enterprise with a commercial loan for the purchase of raw materials for a period of 30 days. The annual revenue of the enterprise is CU 100,000. The share of material costs in the cost of production is 70%. It is necessary to determine the period for which the company can provide a loan to the buyer in the amount of revenue.
Knowing that the share of material costs in revenue is 70%, we determine their absolute value: CU 100,000. * 0.7 = CU 70,000
The amount of funds raised is determined by the formula: (70,000 / 365) * 30 = 5753 m.u.
Based on the fact that the company cannot divert funds from the turnover into receivables more than 5753 CU, we will find the period for which a loan can be granted.
CU 5753 = (100,000 CU / 365)* Dcr
From this equation we find Dcr = 21 days.
Determine the amount of proceeds from the sale of sales on credit for 30 days, which the company can afford.
CU 5753 = (Vcr / 365) *30
From this equation we find Bcr = 70,000 CU.
Thus, the enterprise can afford to provide a commercial loan to customers either in the amount of 70% of the proceeds, or for a period of no more than 21 days (30 * 0.7).
For the enterprise, it is important to bring financial and operational needs (FEP) to a negative value.
FEP \u003d Stock of raw materials and materials + Stocks of finished products - Commercial credit of suppliers.
It is expedient not only stocks of commodity- material assets cover through a commercial loan, but also part of the receivables. However negative meaning FEP does not always indicate a favorable situation at the enterprise. This is due to the state of stocks, receivables and payables.
If it is impossible to balance the need for current assets with real sources financing, the enterprise should look for opportunities to reduce the need for working capital by accelerating the turnover, or by reducing the volume of production.
Summary: *
Working capital and the policy regarding the management of these assets are important, first of all, from the standpoint of ensuring the continuity and efficiency of the current activities of the enterprise. *
Effective management consists in skillful balancing between risks: -
associated with a lack of working capital, and therefore with a threat to the rhythmic operation of the enterprise due to a shortage of raw materials and materials or the inability to satisfy the needs of consumers of products; -
caused by an excess of working capital, i.e. "freezing" of monetary resources in inventories and receivables. *
The optimal level of working capital allows you to maximize profits with an acceptable level of liquidity and commercial risk. *
An indicator that characterizes the measure of intensity and efficiency of the use of working capital is turnover. The acceleration of turnover leads to the release of funds from circulation, the slowdown leads to their additional involvement. *
A comprehensive indicator that characterizes the efficiency of working capital management is the profitability of current assets, which is influenced by the profitability of sales and the turnover ratio of current assets. *
The safety factor allows you to determine the amount of surplus or shortage of working capital. To calculate it, you need to know the need for working capital. *
The rhythm and coherence of the company's activities, the efficiency of the use of all its resources depend on the availability of the company's working capital. The lack of working capital leads to downtime, and, consequently, a decrease in sales and profits. An excess of working capital leads to a slowdown in their turnover, since the excess part of these funds is not involved in the turnover. Thus, a reasonable determination of the firm's need for working capital is necessary.
Basically, in practice, two methods of normalization of working capital are used: economic and statistical and the method of direct counting. The economic-statistical method of normalization of working capital is based on the study of the level of working capital stocks that have developed over previous periods, taking into account the influence of individual factors on the speed of their turnover. At the same time, excess stocks are identified and clarified required size stocks of these types of working capital due to changes in the conditions of production and supply. This kind of refined result is the standard of working capital for the planned period. The economic-statistical method is used in cases where significant changes in the operating conditions of the enterprise in the planning period are not foreseen.
The direct account method consists in the fact that the norms of working capital are calculated for each specific type of inventory, then multiplied by the corresponding one-day expense or sales volume, their norms are determined, i.e. the amount of working capital. The total working capital ratio will represent the sum of the ratios for all elements. This method is the most accurate, justified, but at the same time, the calculation of working capital norms is a rather laborious process.
The norms of working capital are established for a certain period of time and characterize the minimum stocks of inventory items, calculated in days of stock or as a percentage of a certain base (commodity products, volume of fixed assets).
Consider the calculation of the need for working capital for certain types.
The need for working capital for raw materials and supplies is determined by multiplying their norm in days by their one-day consumption, according to the following formula:
where Hc - normative need for raw materials and materials;
Nс- norm of stocks of raw materials in days;
rs- one-day consumption (average daily consumption) of raw materials;
Rs - general consumption of raw materials in the period;
D - the number of days in a period (it is customary to count 30 days in a month, 90 days in a quarter, 360 days in a year).
Example. The consumption of flour for baking bread per quarter is 180 tons.
The norm of the production stock of raw materials is 10 days.
Average purchase price of 1 ton (thousand rubles) -12
Let us determine the average daily consumption of flour 180/90 = 2 tons. Now we calculate the value of the production stock of flour 2 * 10 = 20 tons.
The need for working capital for raw materials and materials (thousand rubles) 20 * 12 \u003d 240 thousand rubles.
Norm in days production stocks(raw materials, materials, purchased semi-finished products) consists of time:
finding materials in the warehouse for the current production process ( current stock) and
being in the form insurance stock;
preparing materials for production technological stock);
unloading, acceptance, warehouse processing and laboratory analysis ( preparatory stock);
stay of materials in transit ( transport stock).
The largest share in general norm circulating assets of the production stock is the norm of the current stock.
current stock designed to provide uninterrupted operation enterprises until the next delivery of materials to the enterprise. Therefore, its value depends primarily on the interval between regular deliveries and the average daily consumption of materials.
The maximum value of the current stock ( Nmax) is calculated as follows:
where rs-- average daily consumption of this material
Jz-- interval between two successive deliveries, days.
At the time of delivery, the current stock will be equal to the maximum value, and then during the daily consumption it will decrease to a minimum and reach zero on the eve of the next delivery. Thus, the average value of the current stock will be half of its maximum value:
Example. The consumption of flour for baking bread per quarter is 180 tons.
The frequency of flour delivery to the bakery is 3 batches per month. Determine the value of the current stock.
The average daily consumption of flour is 2 tons / day. (180/90)
The delivery interval is the quotient of the number of days in the period divided by the delivery frequency 30/3 = 10 days.
The current stock rate will be half of the delivery interval 10/2=5 days.
The value of the current stock will be equal to 5 days * 2 tons / day = 10 tons.
In case of possible interruptions in supply in time and an urgent change in the production program, it is required to create safety stock, the size of which is set, as a rule, as a percentage of the current stock rate (from 30 to 50%).
Individual production processes require certain preparatory operations(drying, blending, fermentation, etc.). The stock of raw materials and materials undergoing preparation for production is called technological reserve, and their value is calculated based on the duration of the preparatory cycle.
Example. The carpentry shop consumes at least 5 cubic meters per day. meters of wood. Wood requires drying in a special dryer for an average of 14 days. Let us determine the value of the technological stock of wood and at the same time the required working volume of the dryer:
5*14=70 cu. meters.
The average time spent by raw materials and materials in transit determines transport stock. The transport stock standard can be defined as the average balance of materials for previous periods, and in order to calculate the norm, the standard should be divided by one-day consumption.
Based on the actual data, it is also determined preparatory stock(time for unloading, delivery to the warehouse, acceptance and storage).
General stock rate for each type of raw materials and materials is determined by summing up their norms in all types of stocks.
Stock rate for work in progress (Nnez) is calculated based on the duration of the production cycle and the degree of readiness of products, which is expressed through the cost increase factor, according to the following formula:
where Tts-- the duration of the production cycle, days;
Knz-- coefficient of increase in costs.
The cost escalation factor is always greater than zero and less than one.
Example. The duration of the production cycle is 3 days. 500 rubles are spent on the production of the product on the first day, 300 rubles on the second day, and 200 rubles on the third day. The total cost for 1 product is 1000 rubles. Determine the cost escalation factor. Cumulative costs look like this:
First day - 500 rubles.
Second day 800 rub. (500+300)
Third day 1000 rubles. (500+300+200)
Cost escalation factor = (500+800+1000)/3*1000= 0.77
Stock rate for work in progress \u003d 0.77 * 3 \u003d 2.4 days.
Stock rate for finished products depends on the time of placing an order, picking and sorting products according to orders, packaging and labeling, storage in a warehouse up to the size of the shipment lot, picking products up to the transit norm, the duration of transportation of products from the warehouse of the enterprise to the station of departure and loading into vehicles.
After calculating the norms of stocks, the norm of working capital is determined in monetary terms for individual elements working capital and the whole enterprise.
The need for working capital for inventory is calculated using the following formula:
where H TK - normative need for commodity stocks in the amount;
AT TK- the rate of inventory in days;
Ts - turnover in the planned period;
D - the number of days in the period.
In other words, the need for working capital for inventory is determined by multiplying the one-day volume of products sold at purchase prices by the stock rate in days.
The inventory rate is the estimated time that inventory is held in the form of retail stock, safety stock, stock in transit, receiving stock, and preparation for sale.
The trading stock, in turn, consists of two parts. The first part: working stock, is designed to ensure sales during the working day and demonstrate the trading range to customers. The working stock rate is determined by the following formula:
where Nr.z.- norm of the working stock in days of turnover;
os- average daily turnover;
Am- the number of assortment varieties of the commodity group that are on sale;
Cs- the average price of one assortment variety.
The second part of the trading stock: the replenishment stock ensures the uninterrupted sale of goods until its next delivery. It is calculated based on the delivery interval and the number of assortment varieties in one batch:
where N z.p.- replenishment stock rate;
And P- interval between the delivery of two consignments of goods, days;
BUT P- the number of assortment varieties in one batch.
The insurance (guarantee) stock, as a rule, is set depending on the trade stock in a differentiated manner for each group of goods and is designed to smooth out sharp fluctuations in demand.
The norms of stocks in transit, as well as for the acceptance and preparation of goods for sale, are established on the basis of existing levels and reserves for their reduction.
As a result, the inventory rate is calculated as the sum of the rates of the above elements.
Example. The store's turnover plan for the fourth quarter is 900 thousand rubles. 500 varieties of goods are constantly on sale. average price one type of goods 20 rubles. The interval between the delivery of two batches is 6 days. The number of varieties coming in one batch is 50.
Travel time - 3 days. Time for acceptance of goods - 2 days. The guarantee stock is 50% of the sales stock. Determine the norm and standard of inventory. The average daily turnover in the fourth quarter will be
900 thousand rubles / 90 = 10,000 rubles.
Define the first part of the trading stock
Determine the second part of the trading stock
Trading stock norm 2+30=32 days.
Let's define the inventory rate 32 + 50*32/100 + 2+ 3 = 53 days.
Inventory ratio 53 * 10 \u003d 530 thousand rubles.
The need for cash arises when buying goods and performing other business transactions. It is calculated using the following formula:
where N D - regulatory need for funds;
R D - a plan for spending money on the purchase of goods and other business transactions;
Co. D - cash turnover ratio (number of turnovers);
KNp - coefficient of non-uniformity of the flow of payments.
Cash balances are also formed at the cash desk and on the way when selling goods. The need for cash on hand and transfers en route are determined by multiplying the one-day volume of products sold (output) at sales prices by the rate of cash balances in days.
The need for other inventory items (packaging, low-value inventory) is determined for each type by direct counting or based on the current trend of spending them in the reporting period and expected changes in the future.
The effectiveness of the organization's activities largely depends on the correct determination of the need for working capital. Rational availability of working capital leads to cost minimization, improvement financial results to the rhythm and coherence of the work of the organization.
An overestimation of the need for working capital leads to their excessive diversion into reserves, to freezing and deadening of resources, and slowing down turnover. In addition, it is expensive for the business entity, as there are additional costs for storage and warehousing and property tax increases.
An understatement can lead to interruptions in the production and sale of products, untimely fulfillment by the organization of its obligations, and ultimately to loss of profit. In both cases, the result is an irrational use of resources, leading to a loss of financial stability.
The specific amounts of working capital are determined current need and depend on the nature and complexity of production, the duration of the production cycle, seasonality of production, production growth rates, changes in the conditions of logistics and marketing of products, the procedure for settlements and the organization of settlement and cash services, the financial capabilities of the organization, the frequency and timing of receipt of payments, etc. P.
The organization's current need for working capital is determined using their rationing - the most important element in managing the formation and use of current assets.
Rationing is the process of establishing optimal size working capital necessary for the implementation of the normal economic activity organizations. Rationing of working capital is the subject of internal financial planning. Through normalization financial services determine the need for own working capital in a minimum but sufficient amount, which ensures the fulfillment of planned tasks and the continuity of the reproduction process.
Rationing is carried out by calculating the norms and standards for each element of working capital.
Norm- this is a relative indicator expressing the volume of stocks of material assets necessary to ensure normal operation, and calculated in days of stock, rubles and percent.
Working capital ratio- this is the monetary expression of the stock of material assets, the minimum necessary for the rhythmic work of an economic entity.
Determining the need for working capital is closely related to the production plan and the planned cost estimate for production. In the production plan, issues are worked out on which the provision of production with all types of resources depends. On the base production plan a cost estimate for the production of products is developed, in which the cost of production is planned. It is the cost estimate that forms the basis for determining the need for working capital.
There are several methods for calculating working capital ratios:
1. Method of direct counting is used for the initial calculation of standards and with a significant change in business conditions. This method consists in calculating the value of the norms for each element with the greatest possible detail and taking into account all influencing factors. Then the standards in monetary terms are summed up into general standards.
2. Analytical method is applied when the planning period does not provide for significant changes in business conditions compared to the previous period. In this case, the calculation of the working capital ratio is carried out on an aggregated basis, adjusted for the growth in production volume or taking into account individual factors affecting the value of the ratio (for example, the inflation index).
3. Coefficient method based on the basic size of the standard with specification for each element of the size of the standard, taking into account changes in the conditions of delivery, production, sale, calculations, etc.
The process of normalization of working capital includes five successive stages of calculation:
1. Calculation of stock norms for each element of normalized working capital. The norms are established in days of stock and mean the duration of the enterprise's property in the state of this type of working capital. For example, the material stock rate is 15 days. This means that materials are held in inventory as inventory for a maximum of 15 days, during which they must be used up in production and replaced with new receipts from material suppliers. A work in progress rate of, say, 5 days is based on the length of the production cycle (5 days) in which the product must go through the full production cycle, technical control quality and compliance with standards and specifications and credited to the warehouse of finished products. The stock rate of finished products shows the duration of the finished product in the warehouse, i.e. if the norm is set at 7 days, then during this period a shipping lot should be accumulated and the products released to the buyer or shipped to the carrier.
Norms are divided into private and cumulative. private rules calculated by types of inventories, products, etc. If the enterprise is multifunctional, then the calculations are carried out by type of activity, or on a territorial basis. On the basis of private norms are developed aggregate norms.
2. Calculation of one-day expenses for the elements of working capital in monetary terms. In the process of rationing, data on cost estimates for the production of products (works, services) are used. As a rule, calculations are made on the basis of indicators of the fourth quarter of the planned year, if production is not of a pronounced seasonal nature. For inventories, the one-day turnover is calculated on the basis of the data in the “Material costs” item of the production cost estimate; for work in progress - based on the cost of gross output; for finished products - based on the production cost of commercial products.
Example. According to the article "Material costs" of the estimate, it is planned to spend 4,500 thousand rubles in the IV quarter. One-day expense is determined by dividing the amount by 90 days (conditional duration of the quarter): 4500: 90 = 50 thousand rubles.
The cost of gross output according to the planned estimate for the 4th quarter is 8100 thousand rubles. One-day turnover in work in progress is equal to: 8100: 90 = 90 thousand rubles.
The production cost of marketable products according to the planned estimate for the IV quarter is 9720 thousand rubles. One-day turnover of stocks of finished products is equal to: 9720: 90 = 108 thousand rubles.
3. Determining the standard for a specific type of working capital based on the norms of the stock and their one-day consumption.
Example:
1) Let's determine the OS standard for material inventories: One-day consumption of materials in the amount of 50 thousand rubles. multiplied by the stock rate in days - 15 days. The standard for inventories is 50 × 15 = 750 thousand rubles.
2) Let's define the OS standard for work in progress: 90 × 5 = 450 thousand rubles.
3) Let's determine the OS standard for stocks of finished products: 108 × 7 = 756 thousand rubles.
4. Analysis of the average need for funds to cover deferred expenses.
Determine the amount that the company usually invests in future expenses. An enterprise may plan to increase this amount if expenses are expected to increase, or decrease if deferred expenses are expected to be written off to the cost of production. In the first case, additional investments in working capital will be required, in the second, on the contrary, the need for working capital under this item is reduced, but an increase in cost will entail an increase in the standard for items “Work in progress” and “Finished products”.
Example. Let's assume that the average need for deferred expenses is 40 thousand rubles:
a) the enterprise plans to create a repair fund in a larger amount than before. The increase will be 10 thousand rubles. Consequently, the standard of working capital under the item "Deferred expenses" will be: 40 + 10 = 50 thousand rubles.
b) the company plans to write off 20% of deferred expenses to the cost price, then the standard will be: 40 × 0.8 = 32 thousand rubles.
5. Determination of the general standard of working capital for the planned year:
a) 750 + 450 + 756 + 50 = 2006 thousand rubles;
b) 750 + 450 + 756 + 32 = 1998 thousand rubles.
Along with the planning (rationing) of the need for working capital and the calculation of the total standard, forecast calculations are carried out that model how the future financial position organization, and the state of its own working capital.
Determining the needs of the enterprise in its own working capital is carried out in the process of rationing, i.e. determination of 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.
Consumption rate material resources- this is the maximum allowable planned value of the consumption of raw materials (materials or fuel) that can be spent to produce a unit of output (or work).
The structure of the consumption rate is the composition and quantitative ratio of individual elements that form the consumption rate of material resources for the production of a unit of output. Its improvement consists in increasing the share of useful consumption in the norm.
In addition to the norm, there is also the concept of "norm". Consumption rates are element-by-element components of the rate. Their purpose is to serve as the basis for establishing norms or to act as norms that determine the consumption of certain material resources per unit of surface, mass, length.
The following main methods of normalization of working capital are used: direct account, analytical, coefficient.
The direct account method provides for a reasonable calculation of reserves for each element of working capital, taking into account all changes in the level of organizational and technical development of the enterprise, transportation of inventory items, and the practice of settlements between enterprises. This method, being very time-consuming, requires highly qualified economists, involvement of employees of many enterprise services (supply, legal, product marketing, production department, accounting). But this allows you to most accurately calculate the company's need for working capital.
The analytical method is used in the case when the planning period does not provide for significant changes in the conditions of the enterprise in comparison with the previous one. With the available working capital, their actual stocks are adjusted, and excess ones are eliminated.
With the coefficient method, the new standard is determined on the basis of the standard of the previous period by making changes to it, taking into account the conditions of production, supply, sale of products (works, services), and settlements.
Analytical and coefficient methods are applicable at those enterprises that have been operating for more than a year, mainly formed production program and organized manufacturing process and do not have a sufficient number of qualified economists for more detailed work in the field of working capital planning. In practice, the direct counting method is the most common (advantage: reliability, most accurate calculations private and aggregate standards).
Features of various elements of working capital determine the specifics of their rationing.
Sincerely, Young Analyst
