Efficiency of use of circulating assets the enterprise is characterized by the speed of their turnover (turnover). The less working capital are delayed on separate stages, the faster the cycle completes.

Efficient use of working capital is characterized by such indicators:

The turnover ratio, which is calculated by dividing the value of sales at current wholesale prices for a certain period on average balance of current assets over the same period. The turnover ratio shows, how many revolutions did the working capital for a certain period, and is calculated by the formula

R — cost of sales, UAH.;

OK — average balance of circulating funds, UAH.

Average balance of current assets is calculated by the formula of the average chronological:

where X1...n-1 — the value of working capital at the beginning of each month (quarter) calculation period, UAH.;

n is the total number of months (blocks).

Period, which determine the volume of sales and average balances of current assets can be month (Z0 days.), quarter (90 days.), year (360 days.).

Indicator, inverse of the turnover ratio, load factor working capital, which shows, how much working capital per currency (the hryvnia) sales for a certain period. The value of this index is calculated by the formula

The length of one turn (the speed) working capital is determined by the formula

where Tobe — length of one turn, days;

D — days period.

For the characteristics of the economic efficiency of use of circulating assets can be used rate of return (profitability) working capital, which is the ratio of profit from sales to average working capital balances:

where Rок — profitability of current assets ;

PR — income from production realization, UAH.

The rates of turnover of working capital can be calculated as all current assets, involved in the turnover of, and their separate elements.

The change in the working capital turnover reveals that by comparing actual performance with planned or indicators for the previous period. Comparing the rates of turnover of working capital, identify the acceleration or deceleration of its.

By accelerating the turnover of working capital from circulation a part of them is released, and when slowing down the turnover of the involved extra means. The release of working capital by accelerating their turnover can be absolute and relative.

Absolute release of working capital reflects a direct decrease in working capital balances compared with their standard (or with the remnants of the previous period) while maintaining or increasing sales for the billing period. The relative release of working capital from circulation reflects the stability or increase working capital for growth of sales. The growth of sales outpaced the growth of the working capital balances.

The amount of released working capital can be calculated by the formula

where Equiv — the amount of released working capital, UAH.;

R1 — volume of sales for the billing period, UAH.;

T0 and T1 — duration of turnover respectively in the previous and current frames, days.

Efficient use of working capital is one of the priority tasks of the enterprise in modern conditions and this is achieved by accelerating their turnover at all stages of the circuit.

At the stage of production resources is their sustainable use; elimination of excessive stocks of materials; improving regulation; improvement of the procurement organization, including by establishing clear contractual terms and ensuring their implementation, the optimal selection of suppliers, the establishment of the transport; improving the organization of storage facilities, in particular the introduction of complex mechanization and automation of loading-unloading works in warehouses.

At the stage of work in progress is the introduction of advanced equipment and technology, in particular besthd and low-waste; the development of standardization and unification; improvement of forms of organization of production; improving the system of economic incentives, economical use of raw materials and energy resources; improved utilization of fixed assets, primarily their active part.

At the stage of treatment is the rational organization of sales of finished products, the use of progressive forms of calculations; timely documentation and acceleration of its motion; compliance with contractual and payment discipline.