Task 2

Topic: Commercial Cycle and Exit Strategies

Goal of the work:

· to teach to allocate subjects and objects of commercial activity;

to consolidate the understanding of the general commercial cycle of the enterprise and the previous (subsequent) stages;

learn to formulate the content of the commercial cycle for an arbitrary type of activity;

fix the content, input and output entities of each of the stages of the commercial cycle within the framework of e-commerce;

· to consider the implementation of various strategies for entering the EC, the advantages and disadvantages of each of them in comparison with related strategies.

Job assignment:

1. Read a brief description of the entity's e-commerce activities;

2. Answer the questions:

§ Who or what is a business entity/object of commercial activity;

§ What are the requirements for customers (what they need to interact with the seller);

§ Are there any stages in the activities of entities that are not related to e-commerce, but related to e-business;

3. Draw up a business cycle diagram for this type of activity;

4. Expand the content of the main stages of the commercial cycle and their implementation from the point of view of the seller and the buyer;

5. Make an assumption about running a similar business within the OFF-LINE (traditional) model and using e-commerce technologies to implement certain stages of the cycle. Describe the resulting options;

6. Identify the advantages and disadvantages of the business options proposed in paragraph 5 in comparison with related options

Commercial cycle and exit strategies in EC

Option 1

The Orion company is engaged in the production of a variety of stationery products (pencils, pens, notepads, calendars, paper clips, clips, staples, stickers, weeklies, posters, etc.) and distributes it between its own stores, which independently pre-order the required goods and also accepts orders from third-party companies. Orders can include both simple catalog orders of any type of product in the required quantity, and the development of a special configuration, design and other characteristics at the request of the customer. In this regard, specific orders are processed and controlled by managers at all stages of the coordination of parameters. After the final registration, the client has the opportunity to view the details and the final cost of the order and make a calculation both in the traditional way and on the website. Upon payment, the order is delivered to the customer. At all stages, the client has the opportunity to track the status of the application.

Option 2

The company "Ukrainian Souvenir" LLC is an online store without off-line support. The online store offers a wide range of Ukrainian-made Gzhel and ceramic souvenirs. The firm works with several large factories. Established relationships with suppliers allow you to do business without using your own warehouse (the goods are delivered directly from the warehouse of the manufacturer), which significantly reduces the costs of the company. Delivery of goods to the client is carried out either by courier or by mail (state or "ExPost" DHL). Payment for goods can be made in the following ways: cash on delivery (when goods are delivered by mail), cash (when goods are delivered by courier), electronic cash (webMoney, Yandex-money). If the client chooses a delivery method by courier, the buyer must confirm the order (the system generates a notification that is sent to the buyer's e-mail). In other cases, the goods are delivered upon payment.

Option 3

Internet auction "Aukro". On the site by an individual who has reached the age of 18, or a business entity duly registered by the state. Bidding is organized as follows: an individual seller posts information about his lot (photo, description) on the site. The interested person offers his price. One lot is up for sale for a limited time. Bargaining can take place both directly between the seller and the buyer (with self-organization of delivery), and through a third party - the auction manager, who organizes the auction and delivery of the goods, while receiving a certain percentage. Payment for goods is carried out through Internet payment systems (WebMoney, Yandex-money) or using credit cards (other payment methods are possible upon mutual agreement of the parties).

Option 4

DlyaVas LLC, which launched an Internet business providing short-term online loans for making purchases in the amount of up to UAH 5,000. right from the comfort of your home. You, as an individual, can become its client by providing the required information about yourself and certifying documents with an electronic signature. In case of successful verification of your documents, you get the opportunity to use the loan in a form convenient for you - from direct payment of your account in the online store to transferring funds to your wallet in the Web Money system or any other. All operations for the necessary paperwork are carried out directly through the site in on-line mode. Also, subsequent settlements with the company are carried out through the website by crediting funds to its account in almost any settlement system of the network in the Ukrainian segment.

Option 5

On the website of the administration of the city of Kharkiv, individuals are given the opportunity to pay for utilities. When making a payment, so-called "service" cards are used, which payers can purchase at the branches of Sberbank, Privat Bank and Megabank. The payment system is organized as follows: the client registers on the site (creates an account), fills out a form identical to the payment form, enters the code from the service card (replenishing his account with a certain amount of monetary units). Operations with service cards are carried out by the "Bank of Communications", transferring money from the client's account to the Sberbank account of the city administration.

Option 6

CJSC "Start" is engaged in the placement of investments for the implementation of high-tech projects in the service sector. Until now, interaction with potential borrowers has been carried out in traditional ways by means of e-mail and paper documents. Recently, the company entered the Internet with the implementation of a full cycle of customer service from receiving an application to transferring credited amounts to customers and making subsequent payments for the company's services and settlements for loans and interest. At the same time, the client has the opportunity to quickly control the current repayment schedule, upcoming and credited payments, as well as interact with the company on the issues of conducting a periodic audit of the client company and the implementation of the initial business plan.

Option 7

Anubis provides a full range of funeral services:

Hearse rental

Singumator Services

Manufacture and sale of ritual products (wreaths, korzan, monuments, fences, coffins, urns ...)

Payment by citizens of Ukraine is made in hryvnias at the rate of the National Bank of Ukraine on the date of payment. For foreign citizens, payment is made in foreign currency (US dollars or EURO):

Payment Methods:

- Bank transfer. In electronic form, an invoice and instructions are sent to e-mail or fax to pay for services. Payment can be made in any bank of Ukraine. The bank transfer fee is paid by the company.

- Money transfers using international systems. Western Union, CONTACT, MoneyGram, Migom, UNISTREAM, Anelik, LEADER, Fast Post, AVERS, PrivatMoney, VIGO, Coinstar Money Transfer, ALLURE. After making the transfer, you must provide the country, city, first name / surname, transfer amount and transfer number. The commission for this translation is paid by the customer.

- System of instant Internet payments WebMoney: WMU (hryvnia), WMR (Russian rubles), WMZ (US dollars), WME (euro).

- International systems for making electronic payments: PayPal, Moneybookers and VISA.

Option 8

Online store Electronic world offers the widest range of electronics and home appliances, goods for home, renovation, garden,

Payment in cash upon receipt of the goods. By transferring funds to a current account, or in cash at a branch of any bank. VISA or MasterCard plastic card. You can pay for your order with a plastic card online. Cards of Ukrainian banks are accepted for payment. Through the payment system WebMoney Transfer. By transferring funds to a current account, in cash at a branch of any bank through IBOX (self-service terminals through which you can make an instant transfer in hryvnia in cash).

In Kharkiv, the goods can be picked up at the store that was indicated when placing the order or ordered to be delivered by courier to your home. Delivery by courier, most often, is carried out the next day after placing the order (if the goods are in stock) or the next day after the goods arrive at the warehouse (if the goods are custom-made).

Delivery across Ukraine is carried out by the transport company "Nova Poshta".

Report examples

option

Work progress report:

1.1 Answers to questions

Commercial Cycle Diagram

1.3 Detailed content of the stages of the commercial cycle

1.4 Brief description of similar business under various options

1.5 Advantages and disadvantages of each of the described options compared to adjacent ones

Conclusion

option

Work progress report:

1.1 Answers to questions

Funds invested in certain types of current assets in the course of current activities consistently go through all stages of the production and commercial cycle (PCC) and at each of them change their material form, again turning into cash. This movement reflects the circulation of current assets. The duration of one circuit in individual industries is different. However, the financial condition and, above all, the solvency of the organization in each field of activity depends on the speed of the transition of certain types of working capital from one stage to another, i.e. from their turnover. Therefore, turnover indicators characterize the level of business activity of the organization and the efficiency of the use of current assets.

The acceleration of the turnover of working capital leads either to an increase in sales (with a constant volume of current assets), or to the release of cash from circulation, which will reduce the need for sources directed to their financing. Consider the following hypothetical example.

Sales amount to 7200 thousand rubles, the amount of working capital - 1800 thousand rubles. The number of turnovers of funds per year 7200: 1800 = 4 times. Let us assume that the number of circuits has increased up to 4.5 times. Then, in order to obtain the same sales volume in each cycle, it will be necessary to involve working capital: 7200: 4.5 = 1600 thousand rubles, i.e. for 200 thousand rubles. less.

To assess the effectiveness of the use of working capital, a system of generalizing and particular turnover indicators is calculated.

Generalizing characterize the average duration of the circulation of funds invested in current assets. Therefore, for their calculation, data on the average cost of all working capital for the period are used. It is calculated using the chronological average formula:

- the average cost of current assets for the period; - balances of current assets at the beginning of the corresponding period; P is the number of terms in the numerator.

The indicator of the total turnover (Otot) is the proceeds from sales, since it characterizes the final stage of the PCC - the return of funds back to cash.

There are three ways to measure the speed of movement of working capital:

1. Number of turnover for the period (or turnover ratio -):

The coefficient shows how many complete circuits were made by current assets for the analyzed period. The indicator should have an upward trend. However, it is not clear enough. Therefore, another calculation option is more often used.

The duration of one circuit in days ():

,

where is the number of days in the analyzed period.

The indicator characterizes the average period from the moment of acquisition of inventories (or goods) to receipt of sales proceeds. This indicator should tend to decrease. Its value can be obtained if the number of days in the period is divided by the number of revolutions:

The ratio of current assets to sales proceeds (fixing ratio - ):

It shows how much working capital accounts for 1 ruble of sold products. The indicator is the inverse of the turnover ratio, so it should tend to decrease.

Indicators of the total turnover of current assets are calculated and studied in dynamics for a number of reporting periods and compared with similar indicators of related enterprises or with industry average values ​​that can be taken as a criterion in assessing the efficiency of the use of working capital and the level of business activity of the organization. The fact is that the indicators of this group cannot have a single standard criterion value acceptable for all areas of activity, since they, to a greater extent than any other indicators, reflect the industry, technological and other features of the enterprise's functioning, which is expressed by the different duration of the PCC. . However, when comparing, it is necessary to take into account the differences in methods for estimating inventories, work in progress, etc.

The impact of changes in the turnover of working capital on the volume of sales is determined by the formula:

The relative release (involvement) of funds from turnover as a result of a change in turnover is calculated as follows:

∆ .

According to the analyzed enterprise, the average annual value of current assets was: in the previous year 1696 thousand rubles, and in the reporting year 2338 thousand rubles. Sales proceeds are reflected in the Profit and Loss Statement (see Appendix 2).

In this example, the turnover of working capital is characterized by the following data:

Table 6.11. Characteristics of the turnover of working capital

The above data indicate a slowdown in the turnover of current assets in the reporting year compared to the previous one. This required additional involvement of funds in the turnover in the amount of 484.8 thousand rubles, which can be seen from the calculation:

.

The average turnover of all current assets depends on the speed of transition of each of their elements or types from one stage of the PCC to another. To establish this dependence, a system of indicators of private turnover is calculated. When calculating them, analytical accounting data are used to determine the average cost of certain types of working capital for the period, as well as indicators of private turnover. They are reflected in the credit of the account, which takes into account the relevant element (type) of current assets.

Private turnover indicators are calculated by the formula:

,

where is the residence time i-th type of current assets at this stage of the PCC; - an indicator of private turnover for a given element of working capital; - average cost i th element of current assets.

For example, private turnover for raw materials and materials shows the period of time that elapses before they are written off for production, therefore, an indicator of private turnover is the consumption of raw materials and materials for production (credit turnover on this account).

Private turnover indicators reflect not only the efficiency of using certain types of current assets, but also serve as the basis for calculating and analyzing the activities of the PCC.

To link the general and private turnover, the so-called terms of the total turnover are calculated. To do this, the average cost of certain types of current assets should be divided by the one-day total turnover. The calculation formula is as follows:

.

The duration of the industrial production cycle is the period of time required for one circuit.

The production and commercial cycle includes the following stages:

the duration of the funds being in advances to suppliers;

duration of storage of stocks;

the duration of the production process;

duration of storage of finished products;

Average maturity of receivables.

To calculate the duration of the cycle, we will use the data on the average balances of individual elements of working capital and indicators of private turnover, which are shown in table 6.12.

Table 6.12 . Characteristics of private turnover of working capital

According to columns 5 and 6 of Table. 6.12, one can judge the duration of individual stages of the PCC.

Table 6.13. Change in indicators of private turnover of working capital

These calculations show that the increase in the duration of the operating cycle by more than 23 days was mainly due to an increase in the period of storage of stocks of raw materials by 18.8 days and finished products by 11.7 days, as a result of which the total turnover of working capital slowed down by 9, respectively. .8 days 9.4 days. This makes it necessary to conduct a more in-depth analysis of the reasons for the accumulation of certain types of stocks of material assets and finished products. The diversion of funds into these assets has become one of the reasons for the decrease in the liquidity and solvency of the organization.

Asset management in manufacturing is much more difficult than in other industries. The main reason is the complexity of the production cycle. Consider the cycles of the current working capital on the example of a manufacturing enterprise and the role of working capital in the production process.

It is the process of changing the characteristics of stocks that differ quite significantly in the management and controlling of the current working capital in manufacturing enterprises from the commodity cycle of trading companies. How, however, do they differ from working capital management in companies engaged in the provision of various types of services, where the input is the professional knowledge and skills of the staff, and the output is the finished product in the form of a service.

Operating cycle

The very concept of "cycle" means a circular movement in time and space. Under operating cycle is understood as a set of interrelated processes that form a complete circle of movement of the financial (economic) flow within the company. In a general, simplified form, the complete operating cycle is shown in Scheme 1. It shows that the relationship between cash (Ds) and the state of inventory items (MiK - materials, raw materials and components and WIP - work in progress, GP - finished products) also goes through the stage of debts, in particular receivables, arising from advances received by us or assets (commodities and materials) that have not yet been paid by us.

Scheme 1. Operating cycle

Thus, it is possible to define the operating cycle as a period of time from the purchase of raw materials to payment for finished products (if an organization works on a prepaid basis, then the end of the operating cycle will be shipment, and not payment for finished products - the essence of the closed circulation of the movement of values ​​does not change from this) .

The operating cycle can be divided into several logical time periods according to a certain criterion - independent cycles that can run in parallel, sequentially, overlap each other. The general scheme of the operating cycle links them into a single whole and leads to the understanding that everything is connected with everything.

financial cycle

Begins financial cycle from the moment of payment to suppliers of materials (repayment of accounts payable), ends at the moment of receipt of money from buyers for shipped products (repayment of receivables). The sign of this cycle is cash.

Graphically, the financial cycle is shown in Scheme 2. For simplicity, it reflects the option of the company's accounts payable to suppliers and the occurrence of receivables at the time of shipment of suppliers to the enterprise.

Scheme 2. financial cycle

In reality, there can be both the opposite option - advances were paid to suppliers and the receipt of inventory items from them did not fully cover all receivables, and the financial and economic state when the products were shipped according to an already fully paid order.

The financial cycle is an indicator of the quality of managing the working capital of an enterprise, its accounts payable - the shorter the cycle, the higher the turnover of the current working capital, the less the need for a large amount of external operating debt, the maintenance of stocks, which are a safety cushion from failures.

If the turnover of the financial cycle is high, then the company will not need a loan debt, there is no need to pay for the storage of stocks, maintenance of premises, etc. - it becomes possible to reduce the cost of production. In general, the financial cycle can be called a litmus test, an indicator of the stability of the company's market positioning, its ability to finance the production cycle through external counterparties, that is, the ability to dictate terms to partners (advance payment, payment terms, etc.).

With a clear understanding of the time of the full turnover of the financial cycle, it is possible to determine the future need for liquidity. That is, by setting the volume and period of the expected deficit in financing the operating cycle, we can identify the amount that needs to be raised in the form of external borrowing (for example, through lending or increasing external debt to counterparties).

Production cycle

Begins production cycle from the moment inventory items arrive at the enterprise's warehouse, ends at the time of shipment to the buyer of products (graphically, the production cycle is shown in diagram 3). Sign (constant) of this cycle - stocks. This is a cycle of operations with the tangible current assets of the enterprise.

Scheme 3. Production cycle

If you look closely at diagram 3, you can see that the production cycle affects not only the contour of the enterprise itself, but also includes suppliers and buyers. The communication relationship with them is maintained by the company's logistics services (in diagrams 2 and 3, logistics cycles are indicated by arrows). On the basis of the presence of this functionality, it is possible to additionally characterize several local cycles, the totality of which will give a complete logistical circle of movement of values ​​- the same operating cycle, only from the point of view of a certain function. Can be distinguished:

• supply logistics cycle- the cycle of execution of the order for the supply of goods and materials for industrial purposes for in-house consumption. This is the logistics "at the entrance";
• production logistics cycle- a cycle from the moment of receipt of inventory items in production until the moment of output of finished products. It includes macrologistics - intershop and micrologistics - intrashop, between individual sections as redistribution levels, up to transfers between machines and various types of equipment. This is logistics "inside";
• sales logistics cycle- a cycle from the moment of documenting the finished product to its transfer to the buyer - logistics "at the exit".

Decomposing the structure of logistics cycles even more deeply, one can trace the supporting functions of logistics, such as: transportation, cargo handling, warehousing. Each of the processes can be recognized as a separate small cycle.

In this context, getting more and more immersed in the details, it is possible to position the cycles and work on each circle of movement of values, not only in logistics, but also in production, finance, engineering (to work on each stream of adding value) - all company activities are permeated with repetitive actions and phenomena . By reducing the duration and cost of each of them, increasing the quality - identifying inefficient use of resources, otherwise mudu (jap. from the theory of lean manufacturing - see p. 106 for details. - Ed.), you can constantly improve business processes and achieve more and more results in the form of marginal returns.

Commercial cycle

As part of commercial cycle, in fact, all that needs to be worked on is the duration of the full operational (logistics) cycle, which is determined by the time interval between the moment the buyer submits an application for a manufacturing enterprise and the expected time the buyer receives the products needed. But the range of the maximum value of the period for the execution of the order is quite wide. It can be measured both in hours and in a number of specific industries in months, or it can even exceed the annual limit.

For example, at OAO Uralkhimmash (Yekaterinburg), the duration of some orders for the production of chemical containers exceeded 1.5 years due to the size of the objects themselves and the technological features of their manufacture and design.

If you do not produce an innovative product that only you have, as in this example, then be prepared for the fact that in a customer-centric economy and an aggressive competitive environment, the buyer will be inclined to choose the manufacturer who has a waiting time for receiving the goods he claims minimum. All other things being equal and the optimal price / quality ratio.

And it is within the framework of relations with the external environment that it is worth touching on such a local cycle as the commercial one. It includes the time from the moment information is received from engineering services about the development of a new product or improvement of the consumer qualities of an existing one until the conclusion of an agreement with a buyer - the “from innovation to market” option, the technology for creating demand, product and brand promotion.

The business cycle includes:

• market research;
• marketing operations;
• search for buyers;
• contract process;
• the period of agreement and conclusion of the contract;
• accompaniment of the buyer until the moment of shipment;
• warranty and service.

The opposite option is also possible, when the entire commercial cycle precedes the development - the variant of commerce "from market to production": sellers, receiving feedback from consumers, push manufacturers to create a new or improve an existing product.

A constant, a sign of this cycle, as well as a logistic one, is the presence of a certain function - sales, sales, marketing.

Interaction of financial and production cycles

Let us consider in a simplified form the interaction of the financial and production cycles in two versions. Let's assume that in our example the enterprise works under the order and only one order is involved in the process.

Option 1. The production cycle is less than the financial one in time. Consider scheme 4.

Scheme 4. Interaction of financial and production cycles (option No. 1)

The production cycle begins earlier than the financial cycle, ends approximately in its middle, thus launching the period of receivables turnover. It is characterized by the receipt of raw materials, materials and components on credit. That is, its beginning coincides with the beginning of the period of turnover of accounts payable. There is no money yet (that is, the financial cycle has not yet arrived), at the same time, the constant of the production cycle is already present - goods and materials have begun their movement in a circle or stream of value creation and giving them new properties.

The financial cycle begins in the middle of the production cycle - incoming deliveries have been paid. Since no advance payment was received from this order, it is obvious that the following was done for the period of the accounts payable turnover:

• or funds from other orders are involved;
• or external borrowing has been made - lending, an increase in accounts payable to business partners, the budget.

If the period of accounts payable is shifted to the period of turnover of accounts receivable, then it will be possible to pay the creditor supplier with the customer's money without attracting external financing and additional costs. This option is possible - the challenge is to include suppliers in your production cycle, to ensure their smooth operation and deliveries just in time. This can be done by creating mirror contractual conditions in both pairs of the supplier company and the buyer company. In this case, the financial cycle will be minimal, the turnover of working capital is extremely high. Even if the supplier includes its cost of money in the price of building materials and components (CM&C), it is not certain that it will be more expensive than external lending, not to mention the labor costs of your staff and the extension of the financial cycle due to the internal procedures of the financial institution.

Option 2. The financial cycle is much longer than the production cycle. Now let's consider a radically opposite option in scheme 5. Let's try to see the reserves for increasing the turnover of the current working capital. So, the financial cycle is completely superimposed on the entire period of the production cycle. It begins with the receipt of an advance payment and ends with a full settlement with the buyer. What is striking in this relationship of cycles.

Scheme 5. Interaction of financial and production cycles (option No. 2)

1. A certain period of time between the advance payment from the customer and the payment of the QMS. In practice, you can find a huge number of options why such muda appears:

• no supervisor to approve payments;
• logistics suffers, and the staff of the supply department did not place requests for payment;
• suppliers are not identified, for example, due to the uncertainty of technical characteristics from engineering services;
• invoices from suppliers are not ready, contracts have not been signed with them;
• failure of the ERP system;
• client-bank failure;
• absence of a treasury officer with an EDS for payments, etc.

2. The period of turnover of the supplier's receivables. It is most likely associated with the production time of components or complex components of the required modification, which were not available. Either, for example, logisticians were waiting for a passing car, or a technological batch was not recruited to launch the purchased components into the production of the equipment needed for optimal use from the supplier - there can be a lot of reasons. Some are related to the specifics of production cycles at allied enterprises, and time losses are inevitable. But even in this case, you can find a way out - to buy a little more expensive, but a smaller lot, looking for another supplier (often, suppliers, for various personal reasons, simply do not want to do this, for example, because "we always take from them").

I recommend that you consider such schemes using the example of your operating cycle and do it in detail, with the prescription of amounts, periods in days, decompose and detail into local cycles. Understanding the methodology of consideration and the level of approximation, you can increase the turnover of current working capital at times. It is worth involving adjacent functionals in the process, because one man is not a warrior in the field.

The enterprise should strive to reduce the time to complete the full operating cycle to the minimum possible limit. The longer it is, the lower the speed of response to market conditions and demand dynamics becomes. This can lead to an almost complete collapse of the company's economy, as it inevitably becomes necessary to create reserve stocks in each link of the system. Therefore, it is very important to manage each local cycle and the entire set of the company's turnover as a whole systematically, comprehensively - it is necessary to compare the capabilities of each of the cycles and create a system for prompt response to any deviations, work on dynamics and agility, susceptibility to consumer requests.

A failure in at least one cycle of the technological chain gives an instant response in the form of a slowdown in the turnover of the current working capital - an increase in the period for receiving money from the external circuit, an increase in the volume of stocks of all types - from raw materials, materials and components to work in progress and products in stock. The increase in the volume of reserves entails the need for additional financing, thereby increasing the company's dependence on the external circuit - its accounts payable increases, which means that the current working capital decreases.

Natalya Kuznetsova, financial director of JAVA Management Company LLC, a member of the expert council of the Financial Director magazine, shared her experience.

The period of circulation of finance is the most important reporting indicator of the enterprise. It is called nothing but production and commercial cycle. The concept includes two equivalent and interdependent components. Firstly, it is financial, and secondly, production activities.

The concept and features of the production and commercial cycle

The production and commercial cycle of a modern enterprise involves a complex structure of the receipt of assets necessary for the activity. Material and non-material. Stocks that are used unevenly. Therefore, the calculation is carried out on the average of the following values:

The full turnover of funds in time, as a rule, does not coincide with the production cycle. In many ways, it depends on the specifics of the enterprise and its structural organization. For this reason, financial activity is considered to be the main indicator, according to which the production and commercial cycle is determined. Involved tangible and intangible assets that are in the process of continuous production activities are accounted for according to the procedures recommended by law.

Continuity of production is ensured by financial support from own funds, borrowed funds and credits from suppliers in the form of necessary materials and raw materials.

In the process of production, there is an accumulation of finished products that are supplied to the consumer. Some of them are shipped on credit terms, from which the total receivables to the enterprise are formed.

The list of manufactured products presented by the production for individual items may have different demand. Current assets, short-term liabilities and deliveries of individual assets may differ significantly in terms of the timing of the overall indicators of the organization and its production and commercial cycle. However, the analysis is done on the basis of the results of the entire enterprise.

How to shorten the production and commercial cycle?

The good performance of successful companies in different countries of the world is based on the observance of the following rules:

• Improvement of work with suppliers. Contracts are drawn up in such a way that materials arrive in the right quantities by a precisely defined date.

• Enterprise funds. Optimization and intelligent management of all cash flows. The best results are shown when the previous paragraph is completed. There are no costs for storing an excess amount of raw materials, components and elements. Payment schemes include mostly regular payments, which allows you to plan long-term projects.

• Loans and receivables. Maximizing the use of all financial instruments can significantly increase the turnover of capital. An optimal system for placing orders and debt collection work, including factoring, stabilizes the actual operation of the enterprise.

• General assessment of the organization's asset turnover
• Analysis of the duration of the production and commercial cycle and sources of its financing
• Cash flow analysis
• Accounts receivable analysis
• Analysis of accounts payable

General assessment of the organization's asset turnover

A significant source of internal investment in the organization will be an increase in the rate of turnover of funds invested in assets. Working capital management is based on determining the optimal volume and structure of current assets, sources of their coverage and the ratio between them, ensuring stable and efficient operation of the organization, as well as creating opportunities for self-financing of development. This task can be solved by conducting a regular analysis of the structure and turnover of the organization's assets.

With the acceleration of their turnover, such moments as a decrease in the amount of advanced capital to the minimum required level, a decrease in the need for additional sources of financing (ϲᴏᴏᴛʙᴇᴛϲᴛʙno, fees for them), a decrease in costs associated with the possession of inventory and their storage, as well as a decrease in the amount of paid taxes, etc.

The duration of the funds in circulation is influenced by a number of external and internal factors.

External factors include: production, supply and marketing and intermediary activities, industry affiliation, the scale of the organization, the economic situation and related business conditions (inflation rate, violation or complete absence of established economic ties, which in turn leads to the forced accumulation of stocks , and consequently to slow down the process of turnover of funds)

To internal factors ᴏᴛʜᴏϲᴙt is the effectiveness of the asset management strategy through pricing policy, asset structure, the choice of methods for assessing inventory items.

The turnover ratios of assets invested in property are determined as follows:

– total assets ( K vol. A ):

K vol. A \u003dQetc/ A cf , (8.27)

– current assets ( K vol. OA ):

K vol.OA =Qetc / Qa.sr. , (8.28)

Where Q etc - proceeds (net) from the sale of goods, products, works, services, thousand rubles;

And wed - the average value of total assets, calculated as the arithmetic mean of the values ​​at the beginning and end of the period, thousand rubles;

Q a.sr. - the average value of current assets, calculated similarly And wed , thousand roubles.

If the period is longer, then the calculation is based on monthly data using the chronological average formula:

Where A n - the amount of assets in n -th month.

Similarly, calculations are made for current assets.

The higher the value of the turnover ratio of current assets, the better working capital can be used. Its growth means the saving of socially necessary time and the release of funds from circulation. This allows the organization to manage a smaller amount of working capital to ensure the release and sale of products, or with the same amount of working capital to increase the volume and improve the quality of products.

The duration of the turnover of both total assets and current:

tabout\u003d D p / K about , days . (8.30)

Where D p - duration of the analyzed period, days;

K about - asset turnover ratio.

It is advisable to present the calculation results in the form of a table (Table 8.17)

Asset turnover shows that for 1 ruble invested in assets in the previous period, 2.255 rubles of revenue was received, in the current period - 2.451 rubles, ϶ᴛᴏ 19.6 kopecks more, which is positive, since the acceleration of capital turnover contributes to its growth, but at ϶ᴛᴏm, revenue decreases. The duration of the turnover of current assets compared with the previous period decreased by 2.9 days (funds invested in the analyzed period in current assets go through a full cycle and again take the form of money 2.9 days faster than in the previous period), and for the total assets - for 13 days.

Table 8.17

The degree of influence on the acceleration of turnover of current ( Δt about ) asset change in sales volume ( ∆ t about ∆ Q etc ) and the value of current assets ( ∆ t about ∆O a ) between the previous and current periods is performed according to the calculation:

Days (8.31)

Where D p

Q etc - proceeds from the sale of goods, products, works, services, thousand rubles;

O A - cost of current assets, thousand rubles.

The increase in sales proceeds accelerated the turnover of current assets by 14.2 days, and the growth in the value of current assets increased the duration of the turnover by 11.3 days. As a result, additional funds are released to continue production and commercial activities.

The amount of funds released (or attracted) into circulation

(Oh a attraction ) is calculated as follows:

, rub. . (8.32)

Where D p - duration of the analyzed period, days,

t about - the duration of the turnover of assets, days,

Q tech etc - proceeds from the sale of goods, products, works, services in the current period, thousand rubles.

Thousand rub.

Based on all of the above, we come to the conclusion that the acceleration of turnover by 2.9 days releases additional funds for one turnover in the amount of 5574.4 thousand rubles. As it was found out earlier, the turnover of current assets in the reporting period amounted to 5.298 turnovers, therefore, for the entire year, the release of funds will amount to 29553.2 thousand rubles. (5574.4 ´ 5.298), which is undoubtedly positive.

To analyze the reasons for the decrease or increase in asset turnover, it is necessary to calculate changes in the speed and period of turnover of the main types of current assets (raw materials and materials, costs in work in progress, goods shipped, receivables) (Table 8.18)

Table 8.18

When calculating, it should be borne in mind that when determining the turnover of raw materials and materials, finished products, instead of sales proceeds, it is necessary to use the cost of goods sold.

The duration of the turnover can be determined by the calculation:

. (8.33)

Where Q - proceeds from the sale of goods, products, works, services, thousand rubles,

C - the cost of goods sold, products, works, services, thousand rubles,

D p - duration of the analyzed period, days,

Z - reserves, thousand rubles.

If we compare the turnover, then for raw materials and materials, the acceleration is 3.9 times, and in days 3.6; for costs in work in progress, a decrease of 10.5 times, and in days - 0.01; for receivables - 0.6 times, and in days - 0.8 times, for finished products and goods for resale, the slowdown is 4.4 days.

Analysis of the duration of the production and commercial cycle and sources of its financing

The elements of working capital will be part of the continuous flow of business transactions. Current assets - ϶ᴛᴏ funds invested by the company in ϲʙᴏ and current operations during each production and commercial cycle.

The duration of the production and commercial cycle is shown in the diagram (Figure No. 8.1)

Figure No. 8.1 Scheme of the duration of the production and commercial cycle

Production and commercial cycle - ϶ᴛᴏ the period of time from the assumption by the organization of obligations to pay production costs until the receipt of cash proceeds from the sale of products.

The average length of time during which raw materials and materials are stored in a warehouse before they are released into production can be determined by the speed of inventory movement in two ways:

1) on account 10 “Materials”, but this method is not accurate enough, since the total amount of materials is taken;

2) according to sub-accounts of the “Materials” account: basic materials, auxiliary materials, fuel, etc.

The second way is more accurate.

The time spent on the manufacture of goods is equal to the period from the moment the materials enter production until the moment the finished goods are released. When producing homogeneous goods, a single account "Main production" is used, where the actual cost of goods is formed. The mobility of the ϶ᴛᴏth account is determined by the duration of the production stage. With a multi-product nature of production, the duration of the stage is determined by the mobility of each sub-account opened for each type of product, the average duration is determined as a weighted average. It is worth saying that the duration of the storage period for finished goods (determined by the mobility of account 40 “Finished Goods”) ϲᴏᴏᴛʙᴇᴛϲᴛʙ indicates the time spent by finished goods in the warehouse of the organization. By the way, the stage of the sale depends on the maturity of the receivables that has developed in the organization. When analyzing, it must be borne in mind that internal turnovers must be excluded from the turnovers on accounts.

For calculations, it is advisable to use the data of the accountant's certificate of the main performance indicators for the period (Table 8.19)

Table 8.19

The analyzed organization is characterized by the following scheme of the production and commercial cycle of the movement of funds: procurement of inventories - production - storage of goods - sale. The duration of the cash flow in the process of the production and commercial cycle is determined in the following sequence.

1) The duration of the funds in advances to suppliers is determined by the calculation:

, days . (8.34)

where - the average value of advances issued to suppliers;

Inventories received on a prepaid basis;

Advances given to suppliers at the beginning of the period (at the end of the period)

It is worth saying that the resulting value is adjusted for the share of inventories received on a prepaid basis in the total amount of receipt of inventories for the period:

, (8.35)

where - the total amount of receipt of inventories.

Adjusted duration of funds in advances to suppliers ( t correct aw ):

(8.36)

By the way, this value can be obtained by calculation:

, days, (8.37)

In our case, therefore, we do not adjust this value for the share of material assets received by the organization on a prepaid basis in the total amount of material assets received. .

Duration of storage of inventories ( t zap ):

, days , (8.38)

where - the average balances of raw materials, materials and other similar values, rub.,

The amount of material costs included in the cost, rub.

day.

The duration of the preparation stage ( t zag ):

, days . (8.39)

The duration of the production process is determined by ( t etc ):

, days . (8.40)

where - the average value of balances in work in progress, thousand rubles;

Actual cost of manufactured goods, thousand rubles.

days

The method of calculating the duration of the production stage is considered more correct if it is calculated by the types of goods produced.

Duration of storage of finished goods ( t xp ):

, days . (8.41)

where - average balances of finished products and goods for resale, thousand rubles;

C R - actual production cost of goods sold, thousand rubles.

days

If the average period of storage of finished products and goods for resale in the warehouse is longer than the storage period of inventories, ϶ᴛᴏ indicates the absence of demand for products, i.e. overstocking occurs in the organization.

In the event that the average period of the finished product and goods for resale is less than the shelf life of inventories, ϶ᴛᴏ indicates an insufficient volume of output of goods and the absence of safety stock in the warehouse, which can lead to losses called “lost profits”, since an urgent order on the supply of goods can not be fulfilled.

In our example, this difference will be day.

Receivables repayment period ( t calc ):

, days , (8.42)

where - the average amount of accounts receivable, thousand rubles;

The amount of proceeds (net) from the sale of goods, products, works, services, thousand rubles.

days

The holding period will be shortened when advances are made by buyers.

It is worth saying that the resulting value is adjusted for the share of funds received from buyers and customers in the form of advances in the total sale ( d ):

, days . (8.43)

The total duration of the production and commercial cycle of the enterprise ( D c ):

Days . (8.44)

Average maturity of accounts payable by suppliers and contractors ( t credit ):

, days , (8.45)

where - the average amount of accounts payable, thousand rubles;

The amount of repaid (paid) obligations of suppliers, thousand rubles.

day.

day.

The production and commercial cycle of the organization for 36.6 days is financed by accounts payable, in these conditions it is advisable to calculate the need for own working capital. By the way, this need is defined as the difference between the average amount of capital invested in current assets and the average balances of accounts payable plus advances received from buyers.

The amount of required working capital is significantly influenced by the amount of accounts payable as a way of financing the organization. The study of trends in the repayment of accounts payable will be an important component of the analysis of the organization's solvency.

The results of calculating the need for own working capital are presented in the table below.

Table 8.20

Average receivables ( R A correct ), with the exception of the profit contained in it:

, . (8.46)

where is the profit from the sale;

S R - proceeds from the sale of goods.

Thousand rub.

As follows from the above calculation, for the current volume of activity, own working capital in the amount of 87986 thousand rubles is required. It was previously determined that the duration of the turnover of funds invested in current assets was 68.9 days, and the duration of the production and commercial cycle ϲᴏᴏᴛʙᴇᴛϲᴛʙ was 60.7 days. Such a discrepancy will have an impact on financial results and the state of cash, and their movement.

Cash flow analysis

The organization's cash flow is a continuous process that ensures the main activity, payment of obligations and the implementation of social protection of employees. From the inflow of funds to cover the obligations of the organization, its financial well-being largely depends. The absence of the minimum required cash reserve indicates financial difficulties.

There are three motives that encourage an organization to hold cash:

• transactional - the need for cash to fulfill current payment obligations - to suppliers, for wages, taxes and dividends;
• precautionary - maintaining a buffer for fulfilling obligations under unforeseen circumstances;
• speculative - holding cash in order to benefit from expected changes in the prices of securities.

Cash flow is divided into two directions: inflow (inflow of cash and outflow (direction) of cash.

The source of information for analysis will be the cash flow statement. When analyzing cash flow, the movement is distinguished in the context of current, investment and financial activities, the analysis of the movement is carried out by direct and indirect methods.

The direct method is based on the calculation of the inflow and outflow of funds, the initial element of the analysis will be the proceeds from the sale of goods, products, works, services, while the indirect method involves the transformation of cash flows using a number of corrective procedures that take into account the financial result, it is applied in internal analysis.

For the enterprise under study, the analysis is carried out using the direct method. The advantage of using the direct method is, in fact, that it allows you to estimate the total amount of cash inflow and outflow of the organization, to see those items that form the largest cash inflow and outflow in the context of the three types of activities considered. Material published on http: // site

The initial data for performing the analysis are given in Table 8.21.

Table 8.21

Current activities are understood as the main statutory activities of the organization related to generating income. The inflow of funds in the framework of current activities is associated with funds received from buyers and customers, the outflow - with payment for purchased goods, works, services, raw materials and other current assets, for wages, payment of dividends, interest, deductions for taxes and fees, etc. d.

Investment activity is associated with the cash flow inflow as a result of proceeds from the sale of fixed assets and other non-current assets, from the sale of securities and other financial investments, dividends and interest received, proceeds from the repayment of loans provided to other organizations. By outflow - the acquisition of fixed assets, profitable investments in tangible assets and intangible assets, the acquisition of securities and other financial investments, loans provided to other organizations, and other areas.

In international practice, financial activity refers to the movement of funds associated with changes in the composition and size of equity and loans of the organization. Changes in equity are associated with receipts from the issue of shares or other equity securities, loans and credits provided by other organizations. In terms of cash outflow, repayment of loans and credits (without interest) and financial lease obligations.

According to table 8.21, the following conclusions can be drawn.

The outflow of funds as a result of current activities amounted to 594,576 thousand rubles. With ϶ᴛᴏm, the amount of income within the framework of the type of activity under consideration is 598426 thousand rubles, of which 98.9% is revenue from the sale of goods, products, works and services, however, ϶ᴛᴏ amounted to 84.3% (591799: 701605) of the received the organization's revenue, that is, about 15% of the sale is covered by barter turnover, other receipts are of a random one-time nature and amounted to 1.1%.

The amount of cash outflow in the analyzed period was associated with the transfer of funds to suppliers 422,763 thousand rubles. (71.1%), wages 70949 thousand rubles. (11.9%), with ϲᴏᴏᴛʙᴇᴛϲᴛʙ transfers to state extra-budgetary funds 25339 thousand rubles. (4.3%), calculations for taxes and fees 49,712 thousand rubles. (8.4%), other expenses 25039 thousand rubles. (4.2%)

The cumulative increase in cash for the period amounted to RUB 2,366 thousand. The general lack of funds for investment activities is 19,065 thousand rubles. This means that the result of the main activity of the organization will be an outflow of funds, and their growth is ensured by current and financial activities. Material published on http: // site

Total change in cash balance for the period( ∆D ):

, thousand roubles. (8.47)

Change in cash balance for current activities ( ∆D current ):

Change in cash balance from investing activities( ∆D inv ):

Change in cash balance from financing activities ( ∆D fin ):

Thousand rub.

The amount of money left in the current account ( D r / s ):

D r/s = ∆D tech + ∆D inv + ∆D fin . . (8.51)

Thousand rub.

Calculations show that the financing of investment activities with cost overruns in the amount of 19,065 thousand rubles. was secured by attracting proceeds from current and financial activities. Material published on http: // site
If a similar situation for this organization will be repeated from period to period, then there will come a time when it will not be able to repay ϲʙᴏ and financial obligations, since the main stable source of repayment of external obligations will be the inflow of funds from financial and current activities. Material published on http: // site

An analysis of cash flow shows their dynamics, the amount of excess receipts over payments, which allows us to draw a conclusion about the possibilities of internal financing. As part of the internal analysis, the duration of the organization's cash turnover period is determined by months using the data of journal-orders No. 1,2,3, reflecting the cash flow (Table 8.22)

Table 8.22

As a result, the cash balances are determined by the arithmetic average, the final cash turnover is obtained by summing its values ​​by months, and the final turnover period ( t about ) calculated by the formula:

t about = D *d n / D about , days, (8.52)

Where D - final cash balances;

dp - period duration,

D about - the final value of the cash turnover.

day.

The analysis showed that the period of cash flow fluctuated sharply from 0.8 days in January to 13.6 days in May, which indicates instability in the cash flow in the organization. An average of 4.1 days passed from the moment the money was received to the organization's accounts until the moment they were withdrawn. The maximum amount of funds in July allowed the organization to actively make payments, reducing the balance of funds in August.

Accounts receivable analysis

It is important to know that when analyzing assets, much attention should be paid to receivables, as they will be an important part of working capital. Accounts receivable - ϶ᴛᴏ amounts due from buyers and customers. Its share in the working capital of an average Russian organization is usually at least 20-30%.

The level of receivables is influenced by many factors: the type of goods, market capacity, the degree of saturation of the market with these goods, the settlement system adopted in the organization, the solvency of buyers and customers, etc. Failure to comply with contractual and settlement discipline and untimely filing of claims for arising debts.

Data for the analysis of receivables for the organization under study are presented in table 8.23.

Table 8.23

The analysis shows that the share of receivables in the total volume of current assets increased by 0.5 percentage points, that is, immobilization increased - the withdrawal of working capital from the economic turnover of the organization, although in absolute terms the growth of receivables is 7551 thousand rubles.

The generalized indicator of debt repayment will be turnover. It is worth noting that it is calculated as the ratio of sales to the amount of receivables and shows how many times the debt is formed and enters the organization during the period under study. The acceleration of turnover in dynamics is regarded as a positive trend. The period of repayment of receivables is also calculated as the ratio of the number of days in the period to the turnover ratio. This indicator shows the average number of days it takes to return it.

In the analyzed organization, the turnover of receivables increased by 0.44 times, which is undoubtedly positive; All ϶ᴛᴏ is associated with an increase in the volume of receivables.

It is worth saying - the absence of overdue receivables will be positive. The presence of receivables is accompanied by indirect losses in the income of the organization, the economic meaning of which is expressed in three aspects. First of all, the longer the repayment period, the lower the income from funds invested in debtors. Secondly, in conditions of inflation, the funds returned by debtors depreciate to a certain extent. This aspect is especially relevant for the current state of the Russian economy. Thirdly, accounts receivable is one of the types of assets of the organization, for the financing of which a source is needed. Since all sources of funds have their own price, maintaining a certain level of receivables is associated with ϲᴏᴏᴛʙᴇᴛϲᴛʙon costs.

In order to timely receive payment for delivered goods and prevent non-payment, a system of discounts from the contract price is widely used. It is worth saying that in order to determine the acceptable level of discount that the organization can offer to customers in case of early payment, simulation calculations are carried out using different options for the forecast values ​​of the inflation rate, the bank interest rate and the number of days for reducing the repayment period, the optimistic, most probable and pessimistic value of these indicators is calculated .

By assigning various probabilistic values ​​to these indicators, it is easy to calculate the average amount of savings from loss reduction, and, consequently, the approximate amount of the discount that can be offered to customers.

The initial data for calculating several scenarios of the situation and its results are presented in Table 8.24.

Table 8.24

rub.

The total cost savings is defined as the product of the total value of indirect income for each scenario, multiplied by the probability of the scenario:

The organization can set a discount for ϲʙᴏ their regular customers in the amount of 0.574%.

In addition to providing discounts, factoring (sale of debts to a bank) and accounting of bills (discount) can be used to reduce receivables. past, predictive financial capabilities of the buyer to pay for goods, the level of current solvency, the level of financial stability, etc.

Analysis of accounts payable

It is important to note that one of the sources of borrowed funds of the organization will be accounts payable, that is, the amount of short-term obligations to suppliers, employees for wages, the budget and other financial obligations. It is worth noting that it arises, as a rule, as a result of the existing system of settlements between organizations, when the debt of one organization to another is repaid after a certain period, and in cases where the organization first demonstrates the occurrence of debt in its accounting, and after a certain time repays her. Excluding the foregoing, accounts payable will result from the organization's failure to meet its obligations on time.

The volume, qualitative composition and movement of accounts payable characterize the state of payment discipline, which in turn indicates the degree of stability of the financial condition of the organization.

Since the predominant share in the formation of working capital in the organization under study belongs to accounts payable, it is extremely important to conduct its internal analysis according to the analytical accounting of settlements with suppliers, received bank loans and settlements with other creditors. The initial data for the analysis are presented in table 8.25.

Table 8.25

The analysis shows that the longest duration of lending to the analyzed organization is observed for settlements with state non-budgetary funds - 37 days, for taxes and fees - 32.5 days, debt to the organization's personnel - 23.5 days.

Table 8.26

Calculations show that the analyzed organization lends to their buyers and customers, diverting funds from the turnover.

In calculations, the return on capital is determined by the ratio of net (ϲʙᴏnoy) profit to the cost of capital. It is worth saying that in order to assess the rational boundaries of the ϶ᴛᴏth ratio, it is advisable to carry out the analysis presented in Table 8.27.

Table 8.27

Regardless of the current level of solvency, organizations should strive to increase their own capital, and the source of this growth can be profit. In case of insufficiency of profit, organizations must solve a strategic problem - to determine the rational ratio of borrowed and own funds.

This ratio depends on a number of factors:

• return on capital;
• the level of interest on a bank loan;
• turnover of receivables and payables;
• discount rate of interest of the Central Bank.

In the above calculation, receivables turn around faster than accounts payable, the organization will have ϲʙᴏ cash, ϲᴏᴏᴛʙᴇᴏᴛʙᴇᴛϲᴛʙ from the receipt of receivables to the need to pay creditors. The amount of free funds at the end of the period decreased slightly and amounted to (23.9 - 22.4) * 1922.2 = 2883.3 thousand rubles.

The indicator reflecting the amount of a bank loan that an organization can take without compromising solvency () has left the inequality, i.e. This is an unlimited amount of credit. This means that an organization with a total profit of more than 14% of capital can take out loans of any size and, at the same time, increase the return on capital. The amount of profit must be higher than a thousand rubles, and the annual return on capital must exceed 14%. The organization can attract short-term bank loans without restrictions if the return on equity exceeds the bank interest rate. In the organization under study, the return on capital is 1.21 times lower than the interest rate (14: 11.55), that is, if there is a need for a loan, it will be difficult to obtain it, since the bank will not be interested in issuing a loan, and the organization will be classified as insolvent, and it makes no sense for the organization to receive such a loan.