Indicators characterizing the efficiency of using working capital
The effective use of working capital of an enterprise is characterized by:
– turnover ratio. Reflects the number of turnovers made by the working capital of the enterprise for a certain period. Turnover ratio ( TO about) shows the volume of products sold per ruble of working capital. It is determined by dividing the sales volume at wholesale prices of the enterprise by the average balance of working capital ( WITH about) in a specific period (year, quarter, month):
From the formula it is obvious that an increase in the number of turnover depends on an increase in production output per one ruble of working capital, or on a decrease in the amount of working capital by a constant volume of production.
– duration of one revolution in days (T about). Shows how much time is needed to complete the full cycle of circulation of funds from payment for supplied material resources to the sale of products:
or 
,
Where T P- number of days in the period under review (360, 90, 30).
Essentially T about characterizes the length of time required to convert funds invested in inventory into money in the company's current account. The shorter the duration of turnover of working capital or the greater the number of turnovers they make with the same volume of products sold, the less working capital is required, and vice versa.
–relative release of working capital(the effect of accelerating the turnover of working capital) reflects the change in the amount of working capital linked to the change in the volume of products sold. Relative release ( E O) is the difference between the actual and estimated need for working capital. The estimated need for working capital is calculated based on the actual change in the value of product sales for a specific period and the basic turnover of working capital for the previous period:
or 
,
Where WITH about f And WITH about the bases- average values of working capital balances actual and in the base period; RP f And RP bases- volumes of products sold actually and in the base period; TO about the bases- working capital turnover ratio in the base period.
Ways to accelerate the turnover of working capital
Ways to accelerate the turnover of working capital are usually considered in the context of the stages of circulation or areas of activity of the enterprise.
In the field of production ways to accelerate the turnover of working production assets can be reduced to the following:
– at the stage of creating industrial reserves: introduction of economically justified reserve standards; bringing suppliers of material resources closer to consumers; use of wholesale trade networks for material resources; ensuring the rhythm of deliveries; mechanization and automation of warehouse facilities;
– at the stage of work in progress - acceleration of scientific and technological progress, improvement of production organization.
In the commercial field of activity accelerating the turnover of circulating funds comes down to the use of modern market methods for managing receivables and the application of a well-thought-out credit policy.
Accounts receivable – lending to the buyer (so-called commercial loan), i.e. The supplier company invests its funds in this debt. The investment amount is calculated based on the lost revenue.
For example. The annual sales volume of the plant is $ 12,000,000. The average repayment period for receivables is 1 month. Therefore, the notional investment in buyers is (12,000,000∙1):12 = $ 1,000,000. Direct losses are calculated in the amount of bank interest that the company could have earned by receiving the money immediately and opening a deposit account with a commercial bank:
1000000·0.08=$80000 or (12000000·0.08):12,
where 0.08 in the example corresponds to 8% per annum on the deposit.
Measures to speed up the collection of receivables (solving the problem of non-payments) usually come down to the following:
– selection of business partners and the optimal scheme of relations with them. Assessing the business reputation of buyers. Application of trade discounts for early payment;
– use of financial instruments: determination of credit conditions and measures for the procedure for collecting debts from debtors; sale of debts to factoring companies; use of bills of exchange, 100% prepayment; payments using letters of credit;
– forced collection of debts through the courts.
The cost of fixed and working assets is reflected in the balance sheet, the main financial document of the enterprise. Fixed production assets are classified as non-current assets, current assets are classified as current assets. Both are reflected in the asset balance sheet as the property of the enterprise. The sources of their formation and replenishment are reflected in the liability side of the balance sheet. The main components of the balance sheet structure are presented below (Table 3.4).
Table 3.4
Simplified structure of the balance sheet, thousand rubles. (million rubles)
|
Assets |
Passive |
|
1. Non-current assets |
3. Capital and reserves |
|
Intangible assets |
Authorized capital (share capital, authorized capital, contributions of partners) |
|
………………………………. |
Revaluation of non-current assets |
|
Fixed assets |
Reserve capital |
|
Financial investments |
Retained earnings (uncovered loss) |
|
…………………………………. |
……………………………………. |
|
2.Current assets |
4. Long-term obligations |
|
Borrowed funds |
|
|
Accounts receivable |
5. Current liabilities |
|
Cash |
Borrowed funds |
|
Other current assets |
Accounts payable |
|
………………………………… |
|
|
Balance |
Balance |
| " |
Assessing the efficiency of using current assets occupies an important place in the analysis of the financial condition of an enterprise, since in relation to its economic activities they perform a servicing function, i.e. in the process of circulation of current assets, profit from sales is generated, which in many ways is the main source of funds ensuring the successful functioning of a commercial organization.
The main sources of information are the balance sheet and profit and loss statement of the organization.
The objectives of studying the state and efficiency of using the organization’s working capital are:
Determining the volume of working capital necessary to ensure the continuity of the organization’s economic activities;
Checking the compliance of inventories of material assets with established standards and identifying excess and unnecessary materials in the production inventories of the organization;
Ensuring the safety of working capital, i.e. identifying and minimizing losses of working capital;
Ensuring the use of working capital for its intended purpose;
Determining the influence of the organization of material and technical supply and the complete use of material resources on the most important indicators of the organization’s performance (volume of output, cost, labor productivity, etc.);
Justification of the efficiency of using working capital by accelerating their turnover and conditional release from circulation;
Justification of the optimal need for material resources;
Analysis of current assets begins with studying their volume, composition, structure and dynamics. At the same time, depending on the service provided to the sphere of reproduction, current assets are divided into two groups: current production assets and circulation funds.
At the same time, as negative phenomena, one should consider the accelerated growth rates of the size and share of work in progress (since this is an indirect sign of the irregularity of the production process), as well as the size and share of receivables (since an increasing diversion of current assets from circulation, although temporary, does not contribute to increasing the efficiency of the enterprise’s operating activities).
The most important indicators of the use of working capital in an enterprise are the working capital turnover ratio and the duration of one turnover.
The working capital turnover ratio (Kob) shows how many turnovers the working capital made during the analyzed period (quarter, half-year, year). It is determined by the formula:
where Vр is the volume of product sales for the reporting period;
OSR is the average balance of working capital for the reporting period.
The duration of one turnover in days (D) shows how long it takes for the company to return its working capital in the form of revenue from sales of products. It is determined by the formula:
D=, or D=,
where T is the number of days in the reporting period.
An important indicator of the effective use of working capital is also the utilization rate of funds in circulation. It characterizes the amount of working capital advanced for 1 ruble. revenue from product sales. In other words, it represents the working capital intensity, i.e. costs of working capital (in kopecks) to receive 1 rub. sold products (works, services).
The utilization rate of funds in circulation is determined by the following formula:
where Kz is the load factor of funds in circulation, kopecks;
100 - conversion of rubles to kopecks.
The coefficient of loading of funds in circulation (Кз) is the inverse value of the coefficient of turnover of funds (Kob). The lower the utilization rate of funds, the more efficiently the working capital is used at the enterprise, and its financial position improves.
Due to the fact that working capital consists of working capital and circulating funds, the turnover ratios for them can be determined as follows:
where Kof is the turnover ratio of working capital;
Osr of - working capital for the reporting period;
where KFO is the turnover ratio of circulation funds;
Osrfo - the average balance of circulating funds for the reporting period.
Working capital consists of inventories, work in progress, accounts receivable and deferred expenses. Therefore, for a more detailed analysis, you can determine the turnover ratio for each element of working capital.
This methodological approach is also valid for elements of circulation funds. For example, the turnover ratio of inventories and accounts receivable can be determined from the expression
where Kpz is the inventory turnover ratio;
Osrpz - the average balance of inventories for the reporting period;
where Kdz is the receivables turnover ratio; - average balance of accounts receivable for the reporting period.
Accelerating the turnover of working capital is important, first of all, to improve the financial condition of the enterprise, and ultimately to achieve maximum profit.
The accounts receivable turnover ratio, which characterizes the ratio of sales revenue to the average amount of accounts receivable, shows the expansion or reduction of commercial credit provided by the enterprise.
Receivables turnover period (repayment):
The longer the receivables turnover period, the higher the risk of non-payment.
The debt collection period (Tink.) is calculated based on the expected revenue from sales with deferred payment for the analyzed period:
Calculation of the cash turnover period and short-term financial investments is as follows:
The basic rule of analysis is to observe the proportion: the ratio of the shares of current assets and non-current assets must be greater than the ratio of the shares of borrowed and equity funds.
The basis for accelerating the turnover of working capital is the volume of production and the speed of its sale. There is a direct and inverse relationship between sales volume and working capital turnover.
Indicators of the efficiency of use of material resources are divided into general and specific.
General indicators include: material intensity of products; material productivity; the share of material costs in the cost of production; coefficient of use of material resources.
Particular indicators of the efficiency of material resources are used to characterize the efficiency of consumption of individual elements of material resources, as well as to assess the material intensity of individual products.
Product material intensity is defined as the ratio of the sum of material costs to the cost of manufactured products and shows the material costs per each ruble of manufactured products:
Ме = Мз/ Nв,
where Mz - material costs; Nв - volume of production in value or physical terms.
Material productivity is an indicator inverse to material intensity and characterizes product output per 1 ruble. consumed material resources: working capital financial asset
Mo = Nv / Mz,
The share of material costs in the cost of production is an indicator characterizing the ratio of material costs to the total cost:
DMZ = MZ / S,
where C is the total cost of production.
The coefficient of use of material resources is the ratio of the amount of actual material costs to the amount of material costs calculated according to planned calculations and actual output and product range. This is an indicator of compliance with material consumption standards:
Ki = Mf.z / Mp.z,
where Mf.z - actual material costs; MP.z - planned material costs.
If the utilization factor is greater than 1, this means overuse of materials; a Ki value less than 1 indicates savings in material resources.
Brief theory
The availability of working capital is characterized by natural and cost, moment and interval indicators. Natural indicators serve to characterize the provision of working capital and changes in their reserves. Cost indicators are widely used to summarize the characteristics of working capital and study the turnover of working capital contained in them.
Momentary indicators are of great importance for studying the dynamics and structure of working capital, characterizing the provision of production with them. They form the basis for the calculation of interval indicators. Interval indicators are used to characterize changes in working capital, their turnover, calculate the average value (using a simple or weighted chronological average formula), etc.
The composition of working capital is studied using the grouping method: by natural material composition, industries and sectors of the economy, regions, forms of ownership, sources of financing, etc.
Changes in the volume of working capital are characterized by indicators of their replenishment and disposal. Replenishment is carried out through both in-house production and acquisition from outside. Attrition indicators reflect the use of working capital in the production process, as well as as a result of emergency circumstances (loss from natural disasters, etc.). The difference between replenishment and retirement reflects the change in working capital over the period (growth or reduction).
The change in inventories during a given period is calculated as the difference between inventories existing at the end and beginning of the period.
It is very important that both at the beginning and at the end of the period, working capital is valued at the same prices, preferably at the average prices of the given period. Otherwise, an effect occurs that is called holding gain in the SNA. The problem of valuation is successfully solved on the basis of the balance sheets of enterprises and organizations, which have a special position “revaluation of inventories”, which makes it possible to calculate the value in prices valid at the end of the period.
The efficiency of using working capital is characterized by a system of economic indicators, primarily the turnover of working capital.
Working capital turnover refers to the duration of one complete circulation of funds from the moment working capital is converted in cash into inventory until the release of finished products and their sale. The circulation of funds is completed by crediting the proceeds to the enterprise account. The turnover of working capital is not the same at enterprises of both one and different sectors of the economy, which depends on the organization of production and sales of products, the placement of working capital and other factors.
Indicators of efficiency of use of working capital:
- duration of one revolution in days;
- the number of turnovers for a certain period - year, half-year, quarter (turnover ratio);
- the amount of working capital employed at the enterprise per unit of production (consolidation coefficient).
Turnover ratio(turnover speed)
where – sales of products or services.
- this is the number of revolutions made over a certain period of time by working capital;
Consolidation factor(shows the average balance of working capital per 1 ruble of products sold):
Average duration of one revolution in days(call time):
where is the duration of the period.
To calculate working capital turnover indicators, a year is taken to be 360 days long, a quarter is 90 days long, and a month is 30 days long.
The amount of funds released from circulation due to increased turnover:
Analysis of working capital turnover is carried out using the index method.
Example of problem solution
The task
The following data on the enterprise are available, thousand rubles:
The product price index was 1.030
- Determine: indicators of efficiency in the use of working capital in the first and second quarters: a) turnover ratio; b) consolidation coefficient; c) the duration of one revolution in days.
- Explore their dynamics.
- Determine the magnitude of the effect caused by increasing the efficiency of using working capital: a) the amount of working capital released from circulation; b) increase in the volume of products sold.
- Draw conclusions.
The solution of the problem
Let's calculate the turnover ratio as the ratio of the volume of products sold to the average balance of working capital:
The consolidation coefficient can be calculated as the ratio of the average balance of working capital to the volume of products sold:
The duration of one revolution in days is calculated using the formula:
Dynamics of turnover ratio:
Dynamics of the consolidation coefficient:
Dynamics of the duration of one revolution:
Thus, the turnover ratio increased in the reporting period compared to the base period by 20.2%. Accordingly, the fastening coefficient and the duration of one revolution decreased by 16.8%. Due to the increase in turnover, 72.5 thousand rubles were released from circulation, and the increase in the volume of products sold amounted to 217.8 thousand rubles.
GOAL OF THE WORK: Acquire skills in calculating indicators for the use of working capital of an enterprise; learn to draw conclusions based on the results obtained.
To do the job you need to know:
Main technical and economic indicators of the efficiency of using working capital of the enterprise;
Methods for calculating the main technical and economic indicators of the efficiency of using working capital of an enterprise;
Working capital management methods;
Composition of the enterprise's working capital;
Ways to save resources.
To perform the job you must be able to:
Find and use the necessary economic information;
Determine the composition of the organization’s working capital;
Calculate the main technical and economic indicators of the efficiency of using working capital of the enterprise.
Completing this practical work contributes to the formation professional competencies :PC 1.1. Organize and carry out maintenance and repair of vehicles; PC 1.2. Carry out technical control during storage, operation, maintenance and repair of vehicles; PC 1.3. Develop technological processes for repairing components and parts; PC 2.1. Plan and organize maintenance and repair of vehicles.
RUNNING TIME: 90 minutes
Economic essence and composition of the working capital of the enterprise
Working capital is involved in production once and is entirely consumed in each production process. They change their natural shape (metal – blank – part – assembly – product). Working capital immediately includes its full value in the cost of production.
Working funds are divided into the following groups:
1. Industrial inventories (stocks of raw materials, supplies, purchased semi-finished products, auxiliary materials, fuel, containers, spare parts for the repair of machinery and equipment, MBP);
2. Work in progress – products that have not been completed and are subject to further processing;
3. Deferred expenses, i.e. costs for the preparation and development of production of new products, produced in a given period, but subject to repayment in the future
Along with working production assets, the enterprise has circulation funds . These include:
1. Finished products in the process of sale;
2. Cash (in cash, in settlements, in accounts)
Money invested in working capital and circulation funds is called working capital.
Indicators of the efficiency of using working capital of an industrial enterprise
Efficiency of use of working capital is assessed by the following indicators:
1. Working capital turnover ratio shows the number of circuits that these funds make during the planning period. Calculated using the formula:
Thus, working capital turns over 3 times per year.
This coefficient simultaneously shows the amount of products sold per 1 ruble of working capital. (in this case, 3 rubles of sold products per 1 ruble of working capital)
2. Working capital utilization factor – is the inverse of the turnover ratio:
Example 2
3 million rubles The average annual amount of working capital is 1 million rubles. Determine the working capital load factor.
Solution
The working capital load factor is equal to:
where is the number of days in the period
Example 3
The volume of products sold is 3 million rubles. The average annual amount of working capital is 1 million rubles. Determine the duration of one turnover of working capital
Solution
1. The working capital turnover ratio is equal to:
Answer: There are 3 complete revolutions per year. The duration of one revolution is 120 days. about. 
4. The result of accelerating the turnover of working capital is their conditional release .
Savings from the release of working capital are calculated using the formula:
| (3.7) |
– respectively, the period of turnover of working capital in the reporting and planning periods, days
– sales volume in the planning period, rub.
– number of days in the planning period.
Savings are calculated when in a given period the time for one turnover of working capital is reduced compared to the previous period.
If the turnover time, on the contrary, increases, then there is no saving and an overexpenditure of working capital is calculated. This fact can be considered as a negative phenomenon in the efficient use of working capital.
Example 4
The working capital standard for the reporting period is 2.5 million rubles. Sales volume in the reporting year was 4 million rubles. In the planning year, it is planned to increase the sales volume by 18%, and the working capital standard by 7%.
Define:
The solution is presented in Table 3.1
Solution
Table 3.1 – Calculation of working capital efficiency indicators
| Indicators | Reporting period | Planned year | |
| Sales volume, million rubles. |  |
||
| 2,5 |  |
||
| Turnover ratio | |||
| 1.76–1.6=0.16 The turnover ratio in the planning year will increase by 0.16. This is a positive phenomenon, because an increase in the turnover ratio means that in the planned year the number of working capital turnover will increase by 0.16 turnover | |||
| Load factor | |||
 |
|||
| 205–225= –20 days. In the planned year, the time of one revolution will be reduced by 20 days | |||
 |
Example 5
According to the plan, the enterprise must sell products worth 20 million rubles. The average annual rate of working capital is planned at 4 million. As a result of the transfer of machine assembly to flow, the turnover period was reduced by 5 days. By what amount can the plan be increased with the same amount of working capital?
Solution
Table 3.2– Calculation of working capital turnover indicators
| Indicators | Plan | Fact | ||
| Sales volume, million rubles. |  |
|||
| Change in sales volume, million rubles | 21,48–20=1,48 | |||
| Working capital standard, million rubles. | ||||
| Turnover ratio, vol. | ||||
| Time of one turnover of working capital (turnover period), days | 72–5=67 days | |||
Conclusion: by transferring machine assembly to flow, sales volume can be increased by 1.48 million rubles.
WORK PROCEDURE AND REPORTING FORM:
Solve problems. Calculations should be presented in the form of tables specified in the methodological recommendations. Draw conclusions.
Problem 1
Volume of products sold 4 million rubles . the average annual amount of working capital is 2 million rubles. Determine the working capital turnover ratio (see example 1).
Problem 2
Volume of products sold 5 million rubles . The average annual amount of working capital is 6 million rubles. Determine the working capital load factor (see example 2).
Problem 3
Volume of products sold 6 million rubles . the average annual amount of working capital is 2 million rubles. Determine the duration of one turnover of working capital (see example 3).
Problem 4
Working capital ratio in the reporting period 3 million rubles . Sales volume in the reporting year was 2 million rubles. In the planning year, it is planned to increase the sales volume by 10%, and the working capital standard by 5%.
Define:
1. Change in the working capital turnover ratio;
2. Change in the time of one turnover of working capital;
3. Working capital utilization ratio
4. The amount of released working capital (savings from the release of working capital).
Present the solution in a table. (see example 4).
Table 3.3– Calculation of working capital efficiency indicators
| Indicators | Reporting period | Planned year | |
| Sales volume, million rubles. | |||
| Working capital standard, million rubles. | |||
| Turnover ratio | |||
| Change in turnover ratio | |||
| Load factor | |||
| Time of one turnover of working capital, days | |||
| Change in the time of one turnover of working capital, days. | |||
| Savings from the release of working capital |
Problem 5
According to the plan, the enterprise must sell products at 30 million rubles . The average annual rate of working capital is planned at 7 million. As a result of the transfer of machine assembly to flow, the turnover period was reduced by 6 days. By what amount can the plan be increased with the same amount of working capital? (see example 5).
Table 3.4 – Calculation of working capital turnover indicators
CONTROL QUESTIONS:
1. What are working capital assets?
2. What groups are the working capital of an enterprise divided into?
3. What does the turnover ratio show? How is it calculated?
4. What does the load factor reflect? How is it determined?
6. In what case do savings arise from the use of working capital?
LITERATURE:
1. Gruzinov V.P., Gribov V.D. Enterprise economy. Textbook. – M.: Finance and Statistics, 2010.
2. Brief economic dictionary / ed. Yu.A. Velika et al. M.: Politizdat, 2007
3. Mironov M.G., Zagorodnikov S.V. Economics of the industry (mechanical engineering): textbook/ - M.: FORUM: INFRA - M, 2010.
Practical work No. 4
Related information.
For the successful operation of an enterprise and the most efficient use of its resources, there is a number of ways to evaluate its activities. Carrying out such events allows you not only to see a favorable trend in economic growth and understand what actions lead to maximum results, but also helps to identify problems and develop an optimal strategy for the development of the organization.
Calculation methods
The method for calculating indicators is based on data from systematized indicators, analysis of the sources of their changes, searching and identifying the relationship between them.
The mechanism for carrying out activities to study and analyze the state of working capital (WCA) consists of next stages:
- Setting goals and objectives of the procedure.
- Collecting data on indicators.
- Drawing up a sequence and plan for the procedure.
- Approval of periods and deadlines.
- Deciding on how to collect information and process it.
- Drawing up methods for analyzing the economic parameters of an enterprise.
- Drawing up a plan for organizing an analysis of the effectiveness of using the OS and assigning those responsible for the execution of the stages of the procedure with regulating responsibilities.
- Setting rules for the order in which the results obtained during the analysis process are presented.
Main goals The activity is to identify shortcomings and errors made in the management of the OS, as well as to develop ways to eliminate them. Another goal is to identify reserves and increase the level of intensity of their use in the processes of the organization.
Important indicators for carrying out commercial activities of an enterprise are condition, composition and structure:
- Resources held by the organization.
- Unfinished production.
- Finished manufactured products.
If the structure is stable, this means that the production and sales process also has solid indicators. The characteristics of a company's development can be seen when determining the structure of the OS and changes in their components.
At the second stage of the process, working capital is grouped according to risk categories. Working capital is divided into easy to implement And difficult to implement. If an organization has a lot of fixed assets on its balance sheet that are difficult to implement, then this can have a negative impact on the economic situation as a whole.
The negative impact is expressed as follows:
- Slows down the rate of funds turnover.
- The company's performance indicators are decreasing.
- The picture of liquidity is distorted.
All ObS sources are divided into two categories:
- Own– provide a guarantee of stability of the financial position and independence of the enterprise.
- Borrowed– help in providing the necessary additional funds.
The dynamism of working capital means the degree of their turnover - the duration of certain stages in production and use. This parameter is measured in the number of revolutions and duration (in days) of one stage.
One of the important parameters in the process of analyzing the activities of an enterprise is assessment of the effectiveness of using OS. Indicators used for analysis:
- Duration of one revolution- indicates the period during which the OBS are returned to the company in monetary equivalent from the proceeds from the sale of products.
- speaks of the number of revolutions during the reporting period. Here, close attention is required to study the level of the coefficient according to the information of this enterprise and related companies. We need to track the dynamics. The higher the turnover rate, the less funds are needed to carry out the operating process in the company.
- OS load factor speaks of the volume of funds involved in the production and sale of one ruble of marketed products.
- calculated: Profit (P) / average annual cost of obs.
When the parameters of the intensity of use of working capital increase, a certain amount of obs is released. With absolute release, the need to use these resources decreases - the main feature is the impossibility of withdrawing funds from the process without stopping it.
Conditions for the formation of relative release:
- Reducing the period of one revolution – the turnover rate increases.
- The volume of production and sales is increasing.
To determine it, you need to calculate the amount of change in the volume of working capital and goods sold. This is determined by the need for maintenance for the reporting period - the size of the actual sales of products for the selected period and the number of days of turnover for the previous year are determined. The result obtained is amount of funds released.
Current assets include:
- The company's inventories include fuel, materials, production resources, semi-finished products, packaging and spare parts.
- VAT on purchased valuable property.
- Receivables of a short-term or long-term nature.
- Investments and others for a short period.
- Money.
- Unfinished construction.
- Circulation funds are expenses in the coming periods.
- Manufactured goods that are stored in the warehouses of the enterprise.
- Products that have been shipped but payment for them has not yet been received.
Working capital can be classified according to different criteria.
Depending on the economic content:
- production fund;
- circulation fund.
According to rationing:
- normalized - used only in accordance with established restrictions;
- non-standardized – applied based on need.
By origin:
- own - those that are constantly used by the enterprise;
- borrowing is the attraction of funds from outside, through the emergence of credit obligations.
The structure of working capital is a set of its elements interconnected.
Three stages of turnover of the ObS:
- The funds necessary for the production process are being purchased. Cash flows from the financial state into purchased goods - this stage is called supply.
- The use of working capital in the process of manufacturing goods - production stage.
- Products are being sold. Finished products move from marketable form to monetary value - sales stage.
Methods for accelerating turnover:
- Increasing the intensity of the production process - eliminating downtime, breaks without good reason, reducing the production time of goods and natural processes.
- Saving and reasonable use of obs - purchasing materials at a low price, optimizing costs. Competent.
- Modernization of equipment and machinery. Introduction of new products.
- Improvement of the auxiliary and main production system.
- Development of methods for relationships with counterparties.
- Development of a strategy for interaction with clients.
- Application of logistics methods to optimize purchasing and production processes.
Influencing factors
Varieties of conditions affecting the effectiveness of the use of ObS:
- By degree of controllability and breadth of functions– depend on the extent to which the means of technological progress are introduced into the manufacturing process.
- Factors that influence the number and volume of obs: general economic, organizational and economic type, which lead to a decrease in their level, increase their value.
- Depends on the area of activity of the organization: objective type - not related to the type of business, subjective nature - are in direct connection with the area of work of the company.
Basic indicators
To fully evaluate the effectiveness, there are certain indicators, which can give a complete and reliable picture of the economic development of the enterprise. One of the most important criteria is obs turnover rate indicator– the shorter the period, the more effective the use.
Turnover ratio ObS (Kob)– this is a parameter that contains information about the number of revolutions made during the reporting period. Calculations are carried out for the year, quarter or month.
Cob = Vp / Osr, where
Vp– volume of products sold per year, OSR– the average annual value of the balance of fixed assets on the balance sheet of the enterprise for the year.
The value is calculated per 1 ruble ObS. This indicator is used to judge the effectiveness of working capital management measures, and the higher the result, the better.
The duration of one cycle (D) is expressed in days. Formula:
D = T / Kob, where
T– number of days of the analyzed time period.
If the data is taken for a month, then it is equal to 30 days, for a quarter – 90, and a year – 360.
Load factor (Kz)– shows how much OBS needs to be spent on 1 ruble of products sold. The lower it is, the better.
Kz = Osr / Vp
In addition to the main indicators that reflect the overall picture, it is necessary to calculate partial values. They take into account the degree of use of OBS at each stage of production, procurement and sales.
The effectiveness of OBS management lies not only in the speed of completion of the entire cycle, but also in reducing the costs of selling the product and its production.
Me (product material intensity)– the relationship between the volume of expenses and the number of products produced. Formula:
Ме = МЗ/V, where
MOH– costs of a material nature, and V– volume of goods produced.
Material efficiency:
Features of determining efficiency
