Determining the enterprise's need for working capital. Formula and methods for determining an enterprise's need for working capital

Andrey Yakovlev
company financial analyst
"Service-Product"
Magazine "Financial Management"
No. 7-8 (85) July-August 2009

What is the company's need for working capital in the current financial fashion to reduce? Enterprise analysis will help you answer.

Today, the “buoyancy” of an enterprise largely depends on how work with suppliers and customers is structured, or more precisely, how well the company’s accounts payable and receivable are balanced. It is these two parameters that mainly determine the needs for debt financing of a business, if we do not take into account all sorts of investment projects to create new and modernize existing production and trading capacities, which are frozen for most enterprises today. And in order to determine the company’s needs for borrowed money, it is better to start by analyzing the sales structure, existing markups, the turnover period of accounts payable and receivable, as well as the length of time the goods are in transit and in the warehouse.

What data will be required

Let's look at how the need for borrowed funds is calculated using the example of the trading company "Service-Product". The company specializes in the distribution of alcohol and juice products; the assortment includes about 2,000 items, of which the most popular items are about 200. Purchases are made directly from manufacturers, so for each supplier the range of products supplied is unique. Like the vast majority Russian companies, "Service-Product" due to the crisis faced an acute shortage of borrowed funds.

Table 1 Calculation financial cycle companies (days)

Contractor's name Deferred payment provided by suppliers Deferred payment provided to clients Time for delivery of goods Stock of goods in warehouse Financial cycle of the company (gr. 3 + gr. 4 + gr. 5-gr. 2)
Supplier No. 1 30 35** 5 21 31
Retail -* 30 - - 26
Networks - 45 - 41
Supplier No. 2 45 35 0 14 4
Retail - 30 - - -1
Networks 45 - 14
For the company as a whole 39 (30 x 41% + 45 x 59%)*** 35(35X41% + 35 X 59%) 2 (5 X 41% +0 X 59%) 17(21 X 41% + 14 X 59%) 15

* The indicator does not depend on where the product will be sold - retail or wholesale to a retail chain.

** Deferred payment provided to clients is calculated using the formula (Deferred payment to retail clients X Their share in the turnover determined in purchase prices + Deferment to networks X Share in the turnover determined in purchase prices).

*** Elements of the financial cycle for the company as a whole are determined taking into account the shares of suppliers in the company’s turnover, determined in purchase prices.

The calculation of the need for debt financing and the search for ways to reduce it began with the collection and systematization of indicators characterizing business activity (see Table 1), namely:

the duration of the deferred payment provided by the supplier (accounts payable turnover period);

the period during which customers pay for goods purchased from Service-Product (accounts receivable turnover period);

the time the goods are stored in the warehouse and the goods are in transit.

All this information was obtained from contracts concluded with suppliers and contractors and from management accounting. For example, in an effort not to lose the trust of suppliers, Service-Product does not allow even the slightest delay in payments. Therefore, to calculate the financial cycle of the enterprise, contractual deferrals provided by suppliers were used.

As for the timing of repayment of receivables by customers, the situation is different. Not all of them can boast of strict payment discipline, so the period during which buyers pay for the products supplied to them was determined as the average receivables turnover period for the previous month.

Time spent by goods in transit - data from the company’s management accounting. Moreover, we are talking about the delivery time of goods from suppliers, but the time for transportation to the client is not taken into account. This is due to the fact that the contracts under which Service-Product operates assume that the moment of delivery of the goods is considered to be the date of its shipment from the manufacturer’s warehouse.

To determine the storage time of goods in a warehouse, a two-fold approach was used. For a number of suppliers, this characteristic is determined based on concluded contracts. This is due to the fact that some manufacturers oblige the distributor to hold a certain volume of their products - for example, the minimum balance of goods must be no less than five days' sales volume. This requirement in “Service-Product” is strictly fulfilled, however, there are no stocks exceeding the standard established by the manufacturer. For products from other suppliers that do not impose similar restrictions on the distributor, the shelf life of their products was determined as the inventory turnover period based on statistics for the previous month.

In addition to the above data, to calculate the need for debt financing, Service-Product needed to determine the turnover in purchase prices (the cost of goods supplied by manufacturers). Moreover, a more complex approach to determining this indicator was preferred to accounting data. Its essence boils down to an analysis of the structure of trade turnover and markups applied to goods different manufacturers(see Table 2). In the course of working to optimize the financial cycle, this data will be necessary to analyze how certain management initiatives will affect financial indicators companies. Let us immediately make a reservation that such a decision became possible due to the fact that trade margins tied to suppliers, and not to specific names or categories of their products. This is enough standard practice pricing for many distribution companies.

Table 2 Main indicators of the trading company for the month

Contractor's name Share in trade turnover, % Trade turnover, rub. Markup, % Gross profit, rub.* Trade turnover at purchase prices, rub. Share in trade turnover in purchase prices, %
Supplier No. 1 40 4 000 000 13 474308 3 525 692 41
Retail 70 2 800 000 15 365 217 2 434 783 69
Networks 30 1 200 000 10 109 091 1 090 909 31
Supplier No. 2 60 6 000 000 18 934 783 5 065 217 59
Retail 70 4 200 000 20 700 000 3 500 000 69
Networks 30 1 800 000 15 234 783 1 565 217 31
Total 100 10 000000 16 1409 091 8 590 909 100

* Gross profit in rubles for the month = Trade turnover: (1 + Markup) x Markup.

Calculation of the need for debt financing

The need for debt financing can be determined as the difference between the company's currently available working capital and the amount of working capital required to maintain the existing financial cycle.

The amount of available own working capital is calculated based on balance sheet data using the following formula:

Own working capital = Equity(p. 490) + Long-term liabilities (p. 590) - Non-current assets (p. 190).

Of course, ideally, you will have to draw up a management balance sheet so that the data it contains is relevant at the time of the calculations.

And the volume of working capital needed by a company can be calculated as the product of turnover in purchase prices and the company’s financial cycle (reduced to 30 days), which is determined by the classic formula:

Financial cycle (days) = Customer delay (days) + Delivery delay (days) + Inventory holding time (days) - Supplier delay (days).

By the way, the logic for calculating the financial cycle manufacturing enterprise will be largely similar, with the only difference being that the time spent on production will be added to the formula, and the shelf life of inventories will need to be calculated separately for stocks of finished products, semi-finished products, raw materials and materials.

Example 1

The trading enterprise's own working capital amounts to 4 million rubles. The financial cycle for the company as a whole is 15 days (see Table 1 on page 21), and the turnover in purchase prices is 8,590,909 rubles (see Table 2 on page 22). Accordingly, in order to work with suppliers and clients on the same terms, the company needs 4,295,455 rubles working capital(RUB 8,590,909 X 15 days: 30 days). Hence, the need for financing to replenish working capital is 295,455 rubles (4,295,455 - 4,000,000). (On the magazine’s website www.fd.ru you can download an MS Excel file, which contains all the calculations described in the article - to do this, click on the link “ Additional material” located next to the title of this article.)

Is it worth changing anything in working with contractors?

Calculating your funding needs in itself is undoubtedly useful. The financial director of the enterprise receives a clear guideline; in fact, this is exactly what the limit on the credit line should be, which needs to be negotiated with banks. But in times of crisis, when bankers are extremely wary of borrowers, obtaining the necessary financing is problematic. However, using the data collected at the previous stages, it is possible to develop a set of solutions that will help the company depend less on bank financing and assess the associated risks and losses.

As a rule, such measures come down to shortening payment deferrals provided to customers and, conversely, increasing payment terms to suppliers.

Example 2

Let's take the previous example. Let’s say the company managed to increase the deferred payment under contracts with suppliers by 3 days and reduce the time allotted for paying for goods delivered to customers by the same amount. In addition, it was possible to reduce warehouse stocks to 14 days and get rid of the loss of time for delivery - 2 days (of course, the time for transportation will not go away, but in the contract with the supplier you can indicate that delivery is considered the date the goods arrive at the distributor's warehouse, and not the moment of shipment from the seller's warehouse). Then the financial cycle of the enterprise will no longer be 15 days, but only 4 days. Accordingly, the amount of working capital required for the company’s operating activities will be 1,145,455 rubles (8,590,909 rubles X 4 days: 30 rubles). At the same time, the need for credit resources will disappear, and moreover, 2,854,545 rubles (4,000,000 - 1,145,455) can be invested.

At the same time, when calculating the future increase in cash flow, do not forget about the risk:

increase in the number of late payments from customers;

increase in bad accounts receivable;

late payment for goods shipped by suppliers and subsequent accrual of penalties;

reduction in trade turnover due to the lack of any in-demand goods in stock.

Perhaps the only difficulty and certain subjectivity in such calculations is the assessment of how the analyzed indicator will change after optimization of the financial cycle. Most often, the entire calculation is based on expert judgments. However, in the practice of the Service-Product company, data obtained from the analysis of accumulated statistics is often used. Let's illustrate how this works in relation to the risk of increasing bad accounts receivable after reducing customer payment deferrals. In the company's practice, a situation has arisen in which out of the total volume of products supplied to customers, no more than 5 percent remains unpaid by customers. Oddly enough, there is a psychological factor at work here: since they have reduced my deferred payment, I will collect products from them and will not pay until they drag me to court. According to company statistics, a decrease in deferment to customers leads to an increase in bad accounts receivable by 0.05 percent. Accordingly, planning in Once again to reduce deferred payments to counterparties, the company's management assumes that the increase in the volume of non-payments will not exceed 0.05 percent. And the losses associated with such a decision can be estimated as the product of existing bad receivables by 0.05 percent. By analogy, you can act in relation to all other risks.

By the way, when developing measures to optimize the need for working capital, it will be quite justified if we consider savings and additional costs not in general, but for each specific initiative: increasing the deferment of payment for debts to suppliers, reducing warehouse stocks, etc. The fact is that some decisions will be unprofitable for the enterprise, which may remain unnoticed if you calculate only “total savings as a result of a comprehensive reduction in the financial cycle” and “total additional losses associated with the planned changes.”

The need for fixed assets is determined differentiated by their types: buildings, shop premises, tents, pavilions and more - passive part of fixed assets ; equipment, vehicles, computer technology and more - active part of fixed assets.
ANDWith input data for calculating the need for fixed assets for future period are: planned volume of trade turnover; capital intensity of fixed assets; market price certain types of fixed assets; the cost of installing equipment and other mechanisms.
Determining the enterprise's need for its own working capital is carried out during the planning process, i.e. determining the working capital standard.
Working capital ratio - this is the minimum amount of cash constantly required by the enterprise for its activities.
The value of the standard is not constant. The amount of working capital depends on the volume of sales of goods, conditions of supply and sales, the range of products sold, and the forms of payment used.
It is advisable to take the data from the fourth quarter as the basis for calculations, in which the sales volume is, as a rule, the largest in the annual program. For enterprises with a seasonal nature of production - the smallest, because the need for additional defense funds can be met with short-term bank loans.
PThe planning process consists of several successive stages:
1) development of stock standards for each element of standardized working capital.
Working capital standards characterize the minimum reserves of inventory for a certain period of time, which is necessary to ensure the continuity of the trade and technological process, calculated in days of supply, as a percentage or other units.
2) determination of the standard of one’s own BS ​​in monetary terms for each element of the BS, thereby determining private standards;
3) the total standard of the enterprise’s need for safety equipment will be determined.

Aggregate working capital ratio is equal to the sum of the standards for all elements and determines the total need of the enterprise for working capital:

Consumption = PTZ+ +Pden.s.+Other assets

Quarterly planning is similar to inventory quarterly planning.
Sources of financing the working capital of the enterprise are:
- own funds;
- stable liabilities (salary arrears, contributions to off-budget funds; accounts payable to suppliers for goods and financial authorities for the payment of taxes);
- borrowed funds (short-term loans and borrowings)
- raised funds – as a rule, these are accounts payable in all its varieties.

The need for working capital is determined by the enterprise when drawing up a financial plan. The value of the standard is not constant. The size of own working capital depends on the volume of production, supply and sales conditions, the range of products produced, and the forms of payment used.
When calculating the enterprise's need for its own working capital, the following must be taken into account. Own working capital must cover the needs of not only the main production to carry out production program, but also the needs of auxiliary and auxiliary production, housing and communal services and other farms that are not related to the main activities of the enterprise and are not on an independent balance sheet, as well as for overhaul carried out on our own. In practice, however, the need for own working capital is often taken into account only for the main activities of the enterprise, thereby underestimating this need.
Rationing of working capital is carried out in monetary terms. The basis for determining the need for them is the cost estimate for the production of products (works, services) for the planned period. At the same time, for enterprises with a non-seasonal nature of production, it is advisable to take the data of the fourth quarter as the basis for calculations, in which the production volume is, as a rule, the largest in the annual program. For enterprises with a seasonal nature of production, data from the quarter with the lowest production volume, since the seasonal need for additional working capital is provided by short-term bank loans.
To determine the standard, the average daily consumption of standardized elements in monetary terms is taken into account. For production inventories, the average daily consumption is calculated according to the corresponding item in the production cost estimate; for work in progress - based on the cost of gross or commercial products; for finished products - based on production cost commercial products.
In the process of standardization, private and aggregate standards are established.
The standardization process consists of several successive stages. First, stock standards are developed for each element of standardized working capital. The norm is relative value, corresponding to the volume of stock of each element of working capital. As a rule, standards are established in days of supply and mean the duration of the period provided by a given type of material assets. For example, the stock norm is 24 days. Therefore, there should be only enough inventory to support production within 24 days.
The stock rate can be set as a percentage or in monetary terms to a certain base.
Next, based on the stock norm and consumption of a given type of inventory, the amount of working capital necessary to create normalized reserves for each type of working capital is determined. This is how private standards are determined.
Private standards include working capital standards in production inventories: raw materials, basic and auxiliary materials, purchased semi-finished products, components, fuel, containers; in work in progress and semi-finished products own production; in deferred expenses; finished products.

And finally, the total standard is determined by adding up the private standards. Thus, the working capital standard is the monetary expression of the planned stock of inventory assets, the minimum required for normal economic activity enterprises.
Standardization methods (the following basic methods of rationing working capital are used: direct counting, analytical, coefficient):
1. The direct counting method provides for a reasonable calculation of inventories for each element of working capital, taking into account all changes in the level of organizational and technical development of the enterprise, transportation of inventory, and settlement practices between enterprises. This method, being very labor-intensive, requires highly qualified economists and the involvement of employees of many enterprise services (supply, legal, product sales, production department, accounting) in standardization. But this allows you to most accurately calculate the company’s need for working capital.
2. The analytical method is used in the case when in the planning period there are no significant changes in the operating conditions of the enterprise compared to the previous one. In this case, the calculation of the standard working capital is carried out on an aggregate basis, taking into account the relationship between the growth rate of production volume and the size of the normalized working capital in the previous period. When analyzing available working capital, their actual inventories are adjusted and excess ones are eliminated.
3. With the coefficient method, a new standard is determined on the basis of the standard of the previous period by introducing changes into it, taking into account the conditions of production, supply, sales of products (works, services), and settlements.
Analytical and coefficient methods are applicable to those enterprises that have been operating for more than a year, have mainly formed a production program and organized the production process and do not have sufficient quantity qualified economists for more detailed work in the field of working capital planning.
In practice, the most common method is direct counting. The advantage of this method is its reliability, which makes it possible to make the most accurate calculations of partial and aggregate standards.
The characteristics of various elements of working capital determine the specifics of their rationing. Let's consider the main methods of rationing essential elements working capital: materials (raw materials, basic materials and semi-finished products), work in progress and finished products.

The working capital standard for stocks of raw materials, basic materials and purchased semi-finished products is calculated on the basis of their average daily consumption (P) and average norm stock in days.
One-day consumption is determined by dividing the cost of a certain element of working capital by 90 days (with a uniform nature of production - by 360 days).
The average rate of working capital is defined as a weighted average based on the rate of working capital for individual types or groups of raw materials, basic materials and purchased semi-finished products and their daily consumption.
The rate of working capital for each type or homogeneous group of materials takes into account the time spent in current (T), insurance (C), transport (M), technological (A) and preparatory (D) stocks.
Current stock - the main type of stock required for uninterrupted operation enterprises between two next deliveries. The size of the current stock is influenced by the frequency of supplies of materials under contracts and the volume of their consumption in production. The working capital rate in the current inventory is usually assumed to be 50% of the average supply cycle, which is due to the supply of materials from several suppliers and at different times.
Safety stock - the second largest type of stock, which is created in case of unforeseen deviations in supply and provides continuous work enterprises. Safety stock is generally assumed to be 50% of the current stock, but may be less than this amount depending on the location of suppliers and the likelihood of supply disruptions.
Transport stock is created in case of exceeding the terms of cargo turnover in comparison with the terms of document flow at enterprises located significant distances from suppliers.
Technological stock is created in cases where this type raw materials require pre-processing and aging to impart certain consumer properties. This stock is taken into account if it is not part of the production process. For example, when preparing for the production of certain types of raw materials and materials, time is required for drying, heating, grinding, etc.
Preparatory stock is associated with the need to receive, unload, sort and store inventory. The time standards required for these operations are established for each operation for the average size of delivery based on technological calculations or through timing.
The working capital standard in inventories of raw materials, basic materials and purchased semi-finished products (N), reflecting the total need for working capital for this element of production inventories, is calculated as the sum of working capital standards in current, insurance, transport, technological and preparatory stocks. The resulting general norm is multiplied by the daily consumption for each type or group of materials:

H=P(T+S+M+A+D).

In production inventories, working capital in stocks of auxiliary materials, fuel, containers, etc. is also standardized.

The value of the working capital standard in work in progress depends on four factors: the volume and composition of products produced, the duration of the production cycle, the cost of production and the nature of the increase in costs during the production process.
The volume of products produced directly affects the amount of work in progress: the more products are produced, all other things being equal, the larger the size of work in progress will be. Changes in the composition of manufactured products have different effects on the amount of work in progress. With an increase in the specific gravity of products from more short cycle production, the volume of work in progress will decrease, and vice versa.
The cost of production directly affects the size of work in progress. The lower the production costs, the lower the volume of work in progress in monetary terms. An increase in production costs entails an increase in work in progress.
The volume of work in progress is directly proportional to the duration of the production cycle. The production cycle includes time production process, technological stock, transport stock, the time of accumulation of semi-finished products before the start of the next operation (working stock), the time that semi-finished products are in stock to guarantee the continuity of the production process (safety stock). The duration of the production cycle is equal to the time from the moment of the first technological operation until the acceptance of the finished product at the finished product warehouse. Reducing inventories in work in progress helps improve the use of working capital by reducing the duration of the production cycle.
To determine the rate of working capital for work in progress, it is necessary to know the degree of readiness of products. It is reflected by the so-called cost increase coefficient.
All costs in the production process are divided into one-time and accruing. Non-recurring costs include those incurred at the very beginning of the production cycle - the costs of raw materials, supplies, purchased semi-finished products. The remaining costs are considered accrual. The increase in costs during the production process can occur evenly and unevenly.

If there is no uniformity in the layering of costs, then the cost increase coefficient is determined according to the graph of the sequence of cost increases for the main products.
In the example under consideration, the rate of working capital for work in progress n, defined as the product of the average duration of the production cycle in days and the cost increase factor.
The working capital standard for work in progress is determined as the product of the cost of one-day expenses according to the cost estimate for the production of gross output and the working capital standard.

The standard for work in progress is H = 3* T*K.

where 3 is one-day consumption;

T - duration of the production cycle, days;

K is the coefficient of increase in costs in work in progress.
The calculation of the working capital standard for work in progress in certain industries can be done using other methods, depending on the nature of production.

The working capital standard for finished products is defined as the product of one-day production of marketable products in the coming year at production cost and the working capital standard:

N=V *T/D,

where N is the working capital standard for finished products;

B - production of commercial products in the fourth quarter of the coming year (with a uniform nature of production) at production cost;

D - number of days in the period; T

Norm of working capital for finished products, days.
The stock rate (T) is set depending on the time required:
for the selection of individual types of products and their assembly in a batch;
for packaging and transportation of products from the suppliers’ warehouse to the sender’s station;
for loading.
The total standard of working capital at an enterprise is equal to the sum of the standards for all their elements and determines the total need of an economic entity for working capital. The general norm of working capital is established by dividing the total norm of working capital by the one-day output of marketable products at production cost in the fourth quarter, according to which the norm was calculated.
Non-standardized working capital of the sphere of circulation includes funds in goods shipped, cash, funds in accounts receivable and other settlements. Business entities have the opportunity to manage these funds and influence their value using a system of lending and settlements.

Determining the need for working capital

Enterprises operating on the principles of commercial calculation must have a certain property and operational independence in order to conduct business profitably and bear responsibility for the decisions made. In these conditions, it becomes extremely important to determine the needs of enterprises for their own working capital, which plays a major role in the normal functioning of enterprises.

The need of enterprises for their own working capital is established in the process of rationing, ᴛ.ᴇ. determining the working capital standard. The purpose of rationing is to determine the rational amount of working capital diverted for a certain period of time into the sphere of production and the sphere of circulation.

The need for own working capital for each enterprise is determined when drawing up a financial plan. The size of own working capital depends on the volume of production, supply and sales conditions, the range of products produced, and the forms of payment used.

Rationing of working capital is carried out in monetary terms. The basis for determining the need for them is the cost estimate for the production of products (works, services) for the planned period. To determine the standard, the average daily consumption of standardized elements in monetary terms is taken into account. For production inventories, the average daily consumption is calculated according to the corresponding item in the production cost estimate; for work in progress - based on the cost of gross or commercial output; for finished products - based on the production cost of marketable products.

In the process of standardization, it is established private and aggregate standards. The standardization process consists of several successive stages.

First, stock standards are developed for each element of standardized working capital. Norm is a relative value corresponding to the volume of stock of each element of working capital. As a rule, standards are established in days of supply and mean the duration of the period provided by this type of material assets. For example, the stock norm is 24 days. Therefore, there should be only enough inventory to support production within 24 days.

The stock norm can be set as a percentage, in monetary terms, to a certain base.

Working capital standards are developed by the financial service of the enterprise with the participation of services related to production and supply and sales activities. Based on the rate of stock and consumption of a given type of inventory, the amount of working capital required to create standardized stocks for each type of working capital is determined. This is how private standards are determined.

By adding the individual standards, the total standard is calculated.

Working capital ratio represents the monetary expression of the planned stock of inventory items, the minimum necessary for the normal economic activities of the enterprise.

The main methods used for rationing working capital are the direct counting method, analytical method, and coefficient method.

Direct counting method essentially consists in the fact that first the amount of advance of working capital in each element is determined, then by summing them up the total amount of the standard is determined.

Analytical method is applied in the case when in the planning period there are no significant changes in the operating conditions of the enterprise compared to the previous one. In this case, the calculation of the standard working capital is carried out on an aggregate basis, taking into account the relationship between the growth rate of production volume and the size of the normalized working capital in the previous period.

At coefficient method The new standard is determined on the basis of the old one by introducing changes into it, taking into account the conditions of production, supply, sales of products (works, services), and settlements.

In practice, it is most appropriate to use the direct counting method. The advantage of this method is its reliability, which allows you to make the most exact calculations private and aggregate standards. Private standards include standards for working capital in production inventories: raw materials, basic and auxiliary materials, purchased semi-finished products, low-value items, spare parts; in work in progress and semi-finished products of own production; in deferred expenses; in finished products. The peculiarity of each element determines the specifics of standardization.

The standard for working capital advanced in raw materials, basic materials and purchased semi-finished products is determined by the formula:

where N is the standard of working capital in stocks of raw materials, base materials and purchased semi-finished products;

P – average daily consumption of raw materials, materials and purchased semi-finished products;

D – stock norm in days.

The average daily consumption for the range of consumed raw materials, base materials and purchased semi-finished products is calculated by dividing the sum of their costs for the corresponding quarter by the number of days in the quarter.

Determining the stock norm is the most labor-intensive and important part of rationing. The stock norm is established for each type or group of materials. If many types of raw materials and supplies are used, the standard is established for the main types, which occupy at least 70-80% of the total cost.

Inventory norm in days certain species raw materials, materials and semi-finished products are established based on the time, which is extremely important for the creation of transport, preparatory, technological, current warehouse and insurance stocks.

Transport stock is necessary in cases where the time of movement of cargo in transit exceeds the time of movement of documents for its payment. In particular, transport stock is provided in the case of payments for materials on the basis of advance payment.

Transport stock in days is defined as the difference between the number of days of cargo travel and the number of days of movement and payment of documents for this cargo.

Preparatory stock is provided in connection with the costs of receiving, unloading and storing raw materials. It is determined based on established standards or actual time spent.

Technological stock is taken into account only for those types of raw materials for which, in accordance with production technology, it is necessary preliminary preparation production (drying, holding raw materials, heating, settling and other preparatory operations). Its value is calculated according to established technological standards.

Current warehouse stock is designed to ensure the continuity of the production process between supplies of materials, in connection with this it is based in industry. The amount of warehouse stock depends on the frequency and uniformity of deliveries, as well as the frequency of launching raw materials into production.

The basis for calculating the current warehouse stock is the average duration of the interval between two adjacent deliveries of a given type of raw material. The duration of the interval between deliveries is determined on the basis of contracts, orders, schedules or based on actual data for the past period. In cases where this type of raw material comes from several suppliers, the current warehouse stock rate is assumed to be 50% of the delivery interval. At enterprises where raw materials come from one supplier and the number of types of material assets used is limited, the stock norm can be taken at the rate of 100% of the delivery interval.

Safety stock is created as a reserve that guarantees an uninterrupted production process in the event of a violation of the contractual terms of supply of materials (incompleteness of the received batch, violation of delivery deadlines, inadequate quality of the received materials).

The amount of safety stock is accepted, as a rule, within the limits of up to 50% of the current warehouse stock. It should be even more if the enterprise is located far from suppliers of transport routes, if unique, high-quality materials are periodically consumed.

In general, the total stock rate in days for raw materials, basic materials and purchased semi-finished products generally consists of the five listed stocks.

Working capital standard for auxiliary materials are established in two main groups. The first group includes materials consumed regularly and in large quantities. The standard is calculated in the same way as for raw materials and basic materials. The second group includes auxiliary materials used in production rarely and in small quantities. The standard is calculated analytical method based on data from previous years.

The general standard of working capital for auxiliary materials is the sum of the standards of both groups.

The working capital standard for fuel is calculated in the same way as for raw materials. The standard for gaseous fuel and electricity is not calculated. When calculating fuel consumption, the need for fuel for production and non-production needs is taken into account. For production needs, the need is determined based on the production program and consumption rates per unit of production by workshop; for non-production – based on the volume of work performed.

The working capital norm for containers is determined based on the method of its preparation and storage. For this reason, the methods of calculating containers in different industries are not the same.

At enterprises that use purchased containers for packaging products, the working capital rate is determined in the same way as for raw materials.

For containers of our own production, used for packaging finished products and included in the wholesale price, the stock rate in days is determined by the time this container is in the warehouse from the moment of its manufacture to the packaging of the products in it. If the cost of containers of own production is not included in the wholesale price of finished products, but is included in the cost of gross and marketable products, a standard for it is not established, since it is taken into account in the standard for finished products.

For returnable containers received from the supplier along with raw materials, the working capital rate depends on the average duration of one turnaround of the container from the moment the invoice for the container along with the raw materials is paid until the invoice for the returned container is paid by the supplier.

The working capital standard for spare parts is established for each type of spare parts separately, based on their delivery time and time of use for repairs. The standard can be calculated based on standard standards per unit of book value of underlying assets, using an analytical method based on data from previous years.

The working capital standard for workwear and footwear is determined on the basis of the number of workers who rely on them and the cost of one set. The standard for this group of working capital in the warehouse is determined by multiplying one-day consumption by the stock rate in days, including transport, current and safety stocks.

For special equipment and devices, the standard is determined based on their required set, cost and service life.

The standard for working capital in work in progress should ensure a rhythmic production process and a uniform supply of finished products to the warehouse. The standard expresses the cost of production of products that have begun but are not completed and are at various stages of the production process. As a result of standardization, the value of the minimum reserve sufficient for the standard operation of production must be calculated.

The amount of working capital advanced to work in progress is not the same across enterprises and industries. The main reasons for the differences are the characteristics of the organization, production volume, and structure of products.

Rationing of working capital in work in progress is carried out by groups or types of products for each division separately. If the range of products is varied, then the standard is calculated based on the main products, constituting 70-80% of its total mass.

The standard for working capital in work in progress is determined by the formula:

N = P * T * K,

where P is one-day production costs;

T – duration of the production cycle in days;

K – increase coefficient.

One-day inventories are determined by dividing the cost of producing the gross (commodity) output of the corresponding quarter by 90.

The product of the production cycle duration and the cost increase factor represents the stock rate in days under the item “Work in progress”.

The duration of the production cycle reflects the time the product remains in work in progress from the first technological operation to the complete production of the product and its transfer to the warehouse.

The production cycle includes technological stock (product processing time), transport stock (time of transfer of a product from one workplace to another and to the warehouse), working stock (stay time of products between processing operations and safety stock (in case of delay of any operation) When calculating the standard, the production cycle is determined for each type of product in calendar days taking into account the number of work shifts of the enterprise per day. At enterprises that produce a wide range of products, the duration of the production cycle is determined as a weighted average.

The cost increase coefficient reflects the nature of their increase in work in progress by day of the production cycle.

All costs in the production process are divided into one-time and accrual. TO one-time These include costs incurred at the beginning of the production cycle (costs of raw materials, base materials and purchased semi-finished products). Other costs are considered growing (depreciation of basic assets, electricity costs, labor costs, etc.).

The cost increase coefficient is determined by the ratio of the average cost of a product in work in progress to the total amount of production costs. The coefficient is determined different ways for production with a uniform and uneven increase in costs.

If the main share of costs enters production at the very beginning of the production cycle (one-time), and the remaining (increasing) costs are distributed relatively evenly throughout the production cycle (in mass production), the coefficient is calculated using the formula:

K = ––––––––––––––,

where A – costs incurred at a time at the beginning of the production cycle;

B – remaining costs included in the cost of production.

If costs increase unevenly over the days of the production cycle, the coefficient is determined by the formula:

(Ce * T)+(C2 * T2) + (C3 * 3) +…… + (0.5 * Cr * T)

K = ––––––––––––––––––––––––––––––––––––––––––––––,

where Ce is the one-time costs of the first day of the production cycle;

С2,С3,… - costs by days of the production cycle;

T2, T3,… - time from the moment of one-time operations to the end of the production cycle;

Ср – costs incurred evenly during the production cycle;

C – production cost of the product;

T – duration of the production cycle.

Costs that increase evenly (Cp) are taken into account in calculating the average cost of the product in half the amount, since they are at all stages of work in progress simultaneously.

The standard for the article “Future expenses” is calculated using the formula:

H = Po + Pp – Pc,

where Ro is the amount of deferred expenses at the beginning of the planning period;

Рп – expenses incurred in the planning period according to the estimate;

Рс – expenses included in the cost of production of the planning period.

Finished products manufactured at the enterprise characterize the transition of working capital from the sphere of production to the sphere of circulation. This is the only regulated element of circulation funds.

The working capital standard for finished products is calculated using the formula:

where P is one-day production of commercial products at production cost;

D – stock norm in days.

Norms of working capital for finished products are determined separately for finished products in the warehouse and for goods shipped, for which settlement documents are being processed.

The norm for finished products in the warehouse is determined by the time it takes to complete and accumulate products until required sizes, storing products in a warehouse until shipment, packaging and labeling of products, delivering them to the departure and shipment station.

The norm for goods shipped, for which documents have not been submitted to the bank, is determined by the established deadlines for issuing invoices and payment documents, submitting documents to the bank, and the time of crediting amounts to the accounts of the enterprise.

However, private standards are established for each element of standardized working capital. Next, by adding up the private standards, the total standard of working capital is determined, reflecting the total need of the enterprise for its own working capital in the planning period.

Next, it is extremely important to compare the resulting total standard with the total standard of the previous period in order to determine how the enterprise’s need for total working capital changes in the planning period.

The difference between the standards is the amount of increase or decrease in the working capital standard, which is reflected in financially enterprises.

Determining the need for working capital - concept and types. Classification and features of the category "Determining the need for working capital" 2017, 2018.

Increasingly, banks are asking the question: how to determine the borrower’s need for working capital? Mathematical formulas don’t always work; textbooks don’t say anything about this; not everyone has enough experience. Let's try to consider in this article methods for determining the need for working capital.

Calculation of the trade and production cycle (hereinafter - TPC)

Before calculating the lending limit, it is necessary to determine the duration of the TPV. For example, the delivery time for raw materials is 15 days (payment 100% in advance), the production of goods is 30 days, the delivery time to the buyer is 10 days (payment with deferred payment for 30 days). As we can see from the example, the TPV will be 15+30+30 = 75 days. Let's increase given period up to 100 days for the risk of an unforeseen situation.

From the above calculation we can conclude that the tranche period (turnover period) will be no more than 100 days.

Credit limit calculation

The classic approach to calculating the need for working capital (hereinafter - POS) is to calculate the loan amount from the data financial statements as of the last reporting date:

PIC = Accounts receivable + Inventories - Accounts payable.

If the POS turns out to be positive, there is no need. If it is negative, that is, for the amount that was obtained during the calculation.

For example, DZ - 100 m.r., Reserves - 15 m.r. , KZ - 170 m.r. POS = 100+15-170 = - 55 m.r. Thus, the lending limit is 55 rubles.

It is necessary to carry out calculations for the last 12 months based on the balance sheets so that the calculations are correct. You can take the average value.

This approach to calculating PIC is not suitable for construction companies, different types activities and provision of services.

Refinancing

When refinancing a loan to replenish working capital, the limit is not calculated again. In this case, it is necessary to analyze for what purposes the previously issued loan was spent.

For example, we see that in June 2014 the company was granted a loan of 150 rubles. for working capital. At the same time, revenue for the 1st half of the year amounted to 600 rubles. TPC - 30 days. Settlements with suppliers - 100% prepayment, with buyers - 70% prepayment, 30% upon payment within 12 days. At first glance, there is no longer much need for working capital. Even if we take the average monthly revenue (600/6 = 100) and multiply it by the share of payment with deferred payment (30%), the maximum requirement is 30 m.r. per month In addition, a loan issued in the amount of 150 rubles was supposed to increase average monthly revenue by 150 rubles. with a TPV of 30 days, additional revenue for the second half of the year should be about 150 m.r. * 6 = 900 m.r. According to the balance sheet, we see that the annual revenue was only 1300 rubles, it should be 900 rubles more. The question is: for what purposes was the previously provided loan used?

This situation could arise if the company used the loan for other purposes; we can find the answer by analyzing the following balance sheet items:

  1. Change in non-current assets - the company could use funds for the purchase of fixed assets, construction, etc.,
  2. Change in financial investments - funds could be spent on providing loans, purchasing shares, etc.
  3. Reduction of accounts payable - the company could “patch” holes in accounts payable
  4. A sharp increase in advances issued - funds could have been spent on advances issued that have not yet been closed (LOSSES or long delivery times)

In any case, you need to request a statement of 51 accounts and look at the purpose of payments - where the loan funds were sent. Next, check the data of counterparties on the SES. If companies have signs of transit, then we can conclude that the loan has been “taken out” of business. If the companies are real, it is necessary to analyze the structure and dynamics of the debt and credit obligations according to the balance sheets.

If it is concluded that a previously provided loan for which refinancing is required was “put out of business” or used for other purposes than for its intended purpose, refinancing is not advisable.

The second question the bank should ask is why the company is asking for refinancing. If it's a matter of decline interest rate, more or less clear. But if the company asks to increase the loan term and at a higher rate, the picture is clear - the borrower cannot cope with the debt load.

Loan to increase working capital

It is strictly forbidden to carry out any calculation of PIC using formulas when increasing working capital. In this case, it is meant that the company applied to the bank not for replenishment of working capital, but for a loan to increase working capital. It's a big difference.

For example, the company entered into a large contract for 300 rubles. According to the terms of this agreement, she must complete the work at her own expense within 6 months and only after that will payment be made. In this case, it is obvious that there is a need for 300 m.r. and there is no need to apply any formulas here. But it is necessary first of all to analyze the risks of not fulfilling the contract.

Thus we carried out short review when and how to calculate the loan amount for a PIC.

Let your risks be minimal!

When planning an enterprise's need for working capital, 3 methods are used:

Analytical;

Coefficient;

Direct counting method.

Analytical method involves determining the need for working capital in the amount of their average actual balances, taking into account the growth of production volume. It is used in those enterprises where funds invested in material assets and costs have a large specific gravity in the total amount of working capital.

At coefficient method inventories and costs are divided into those depending on changes in production volumes (raw materials, materials, costs of work in progress, finished products in the warehouse) and those not dependent on it (spare parts, MBP, RBP). For the first group, the need for working capital is determined based on their size in the base year and the growth rate of production in the coming year. For the second group of working capital, the requirement is planned at the level of their average actual balances for a number of years.

The direct counting method provides for a reasonable calculation of inventories for each element of working capital, taking into account all changes in the level of organizational and technical development of the enterprise, transportation of inventory, and settlement practices between enterprises. This method is used when organizing a new enterprise and periodically clarifying the working capital needs of existing enterprises. In general, its contents include the following stages of work:

    development of stock standards for certain most important types of inventory items (TMV) of all elements of standardized working capital, expressed in days of stock, percentage, rubles. etc. The stock norm is calculated for each element of defense equipment and characterizes the minimum volume of inventory of goods and materials for a certain period of time, which is necessary to ensure the continuity of the production process;

    calculation of the average daily consumption of a given type of inventory items based on their consumption according to the production cost estimate. Average daily consumption is calculated by dividing the corresponding production costs by 90, 180 or 360 days;

    determination of the standard of own working capital in monetary terms for each element of working capital and the total need of the enterprise for working capital.

Rationing of working capital is carried out in the following areas:

    rationing of working capital invested in production inventories;

    determining the need for working capital invested in work in progress;

    rationing under the item “Future expenses”;

    rationing under the article “Finished products”;

    rationing of work in progress.

Let's take a closer look at these areas:

1. Rationing of working capital invested in inventories.

Value min. requirements for general supplies = daily consumption * norm of reserves in days.

One-day expense = 4th quarter expense / 90 days.

In industries where production is seasonal, the standard is determined by the quarter in which there is the least need for working capital. At the same time, peak loads are covered by bank loans.

The process of rationing working capital at an enterprise is also important because in the course of such work the practice of supply, placement and consumption of working capital is analyzed.

The stock norm is calculated as follows:

To determine the stock norm, calculations are carried out for that part of the initial raw materials, materials that make up 70-80% of the cost of the product. The stock norm for other stocks consists of several intermediate stocks, i.e. from the time that raw materials remain in one state or another:

1. current/warehouse stock;

2. guarantee/safety stock;

3. transport stock;

4. unloading, receiving, storing materials;

5. technological stock/drying, cutting, selection, cleaning.

The main type of reserves mentioned is current/warehouse stock (I).

The purpose of the current stock is to ensure the production process between deliveries, therefore the amount of the current stock is primarily determined by the intervals between deliveries. Interval between deliveries may be determined based on supply contracts. If the ties are stable, then the supply agreement is for 1 year, where the delivery terms are determined.

The peculiarity of calculating the current stock norm is that an enterprise may have not one, but several suppliers.

The current stock norm is usually accepted equal to half interval between deliveries. At the same time, on the day of delivery the stock is maximum.

Where N– stock standard;

O– one-day consumption;

H– stock norm in days.

However, it is not always necessary to take the current stock rate equal to half the supply interval:

1. The current stock rate should be taken equal to 100% if the company has a small number of suppliers (1-2 pcs.), i.e. their supplies do not cover others.

2. If the delivery interval is short (5-6 days), then the probability of supply failure is high, therefore it is necessary to take the current stock value equal to the frequency of receipts, i.e. 100%.

As a rule, in the absence of supply contracts, practically established supply intervals are taken as the basis for calculating the norms for raw material reserves.

Not taken into account atypical supplies:

    excessively large;

    excessively small.

Delivery interval = 360/number of receipts(if there are no deviations in the frequency and quantity of deliveries).

In this case, deliveries falling on 1 day are equal to one delivery.