The most important characteristic of the operational cycle, significantly affecting the volume, structure and efficiency of the use of current assets, is its duration, it includes time from the time of cash spending on the purchase of material current assets before the receipt of money from the debtors for the products sold.

The duration of the operating cycle of the enterprise is calculated by next formula:

POC \u003d POIN + POMS + POP + subse, where Pole is the duration of the enterprise's operational cycle in days;

Substance - the period of turnover of cash assets in days;

Poms - the period of turnover of raw materials, materials and semi-finished products in the days;

Power - a period of turnover of finished products in days;

Substance - Collection period accounts receivable in the days.

As part of the operational cycle, there are two main components of 1) production cycle, 2) financial cycle (or cycle of de-tender turn).

The production cycle of the enterprise characterizes the period of complete turnover of the material elements of current assets, starting from the moment of receipt of raw materials, materials and ending with the moment of shipment of finished products to customers.

The duration of the production cycle is determined by the formula:

PPC \u003d Posm + Ponz + Pulp, where PPC is the duration of the enterprise's production cycle in days;

Posm - the period of turnover of raw materials, materials and semi-finished products in the days;

Ponz - the period of turnover of unfinished production in days;

Power - a period of turnover of finished products in days.

Periods of turnover of reserves, in progress production and finished products can be calculated according to the following algorithm:

ZSD; NPSD; GPSD / SSD X D, where ZSD is the average dairy reserves of raw materials, materials and semi-finished products in the analyzed period;

NPSD - the average daily volume of incomplete production in the analyzed period;

GPSD - the average daily volume of finished products in the analyzed period;

SDS - the average daily cost of production in the analyzed period;

D - the number of days in the analyzed period.

Assessment of the real needs of the enterprise in current assets.

Optimization of the ratio of constant and variable parts of current assets.

Liquidity monitoring and ensuring the required level of profitability of current assets.

Evaluation of possible losses of current assets.

Formation of the financial structure of sources of financing of current assets.

In the process of analyzing the current assets of the enterprise, an assessment is given:

Dynamics of the total volume of current assets;

The pace of changes in their average amounts in comparison with the pace of changes in the volume of implementation;

Dynamics of the specific weight of current assets in the total amount of assets;

Turnover of all components of current assets;

The duration of production, operational and financial cycles;

Profitability of current assets.

When choosing a policy for the formation of current assets, the F-Nanced Manager has to be balanced between the risk and the effectiveness of the company's activities. This involves the possibility of use in determining the principal approaches to the formation of current assets of the ideas of portfolio theory. According to portfolio theory, three fundamental approaches can be distinguished: conservative, moderate and aggressive.

The use of a conservative approach implies not only the full satisfaction of the current need of the company in current assets, but also the creation of significant insurance reserves. Thus, a guarantee of minimizing financial and operational risks is ensured, but the effectiveness of activity is reduced accordingly.

A moderate approach to the formation of current assets involves maintaining the volume of current assets at such a level to fully satisfy the current needs of the company and create a normal insurance reserves in magnitude. This type of policy has an average largest risk and average efficiency.

The aggressive policy of forming current assets is associated with minimizing insurance reserves or their complete absence. This policy is associated with a high operating risk, but ensures maximum efficiency.

To implement the selected policy, it is necessary to calculate the need for current assets. This calculation is made on one financial cycle on the basis of planned assessments of the need for production in certain elements of current assets. To calculate the need for current actuas for one financial cycle, you need to calculate the need for current actuas for the entire operating cycle, and then deduct payable debt.

The next step in the process of controlling current assets is associated with the optimization of the ratio of constant and variable parts of current assets. To select the optimal ratio between the constant and variable parts of the current assets, first, based on the previous dynamics of the volume of current assets and their components, a graph of the dependence of current assets on time is being built.

In accordance with the obtained dynamics of current assets, over previous periods are allocated: the maximum number of current assets involved in the production process; minimal in time the number of current assets involved in the production process; the volume of the constant part of the current assets; The average size of the variable part of current assets.

The identified values \u200b\u200bare extrapolated to the future. They are based on the need for revolving assets and the amount of insurance reserve.

An important step in the management system of current assets is the implementation of liquidity monitoring and ensuring the required level of profitability of current assets. Although almost all current assets are liquid to one degree or another (except for future periods and hopeless receivables), the overall level of their liquidity should provide the necessary level of solvency of the enterprise for general current obligations. With this in mind, the share of current assets in the form of funds, highly and mining assets is determined.

Current assets, as well as all assets, generate profits when using and manufacturing them. But to increase the level of profitability, it is necessary to invest temporarily free money into profitable financial instruments. This provides a higher level of profitability of assets.

The next stage in the management of turnover assets is associated with the assessment of possible losses on various types of assets of their minimization. Various elements of current assets create risks associated with their partial loss or impairment. For example, inventories are subject to losses from natural loss, receivables Creates a risk of non-return, fan-nanced tools may depreciate due to unfavorable financial market conjuna, money lose its cost due to inflation. All these circumstances should be taken into account in the policy of managing current assets.

Depending on a certain need for current assets and the overall style of the management policy, the financial structure of the sources of their financing is formed. There are three different strategies for financing current assets - moderate, aggressive, conservative. The moderate strategy is to minimize the risk of what the company will not be able to pay for its obligations when the payment period occurs. According to this strategy, the company finances the fixed assets and the entire constant part of the current assets by long-term loans, and the variable part of the current assets is due to short-term loans.

When using an aggressive strategy, the company finances the fixed assets, and part of the constant part of current assets by long-term loans. And the remaining part of the constant component of current assets and their variable is due to short-term loans.

When applying a conservative financing strategy, the entire permanent part of the current assets and part of the variable part (not to mention the basic means) will be funded by long-term loans and their own funds. Financing cost B. this case It will be high, and the risk is low.

Methodology for determining the need for working capital

With simple reproduction and in the absence of inflation, the turnover of mobile assets does not require additional financing of working capital. With the expansion of production or inflation, the company requires additional financial resources.

Most authors of textbooks and tutorials According to companies (A.D. Sheremet D.S., prayers, etc.) when issuing issues relating to the definition of the need for working capital divide the current assets to normalized and non-nomed. To normalized (according to which the norms and standards of working capital are calculated) include revolving assets serving the production cycle - raw materials, materials, semi-finished products, work in progress, finished products. To non-normalized - all other elements of working capital serving the financial cycle - cash and funds in settlements (receivables).

Economic entities have the ability to indirectly manage non-normalized means with the help of a lending system and calculations (providing commercial loans, prepayment, the choice of the form of calculations). The control of the spending of these elements of working capital is carried out through the current procedure for calculations between enterprises, which provides for a system of economic sanctions by the state against the growth of non-payment. For calculating the norms and norms of working capital, three methods are used: direct account, analytical and coefficient method.

Author training course "Basics financial Management"I.A. The form considers the definition of the need for working capital for newly created enterprises for all types of current assets serving the operating cycle using the direct account method and the coefficient method.

The direct account (or regulatory) method for a long period was the main method of planning the need for material and industrial stocks. Application of this method is justified and in modern conditions Due to the specifics of the organization of production, supply and sales of many enterprises. It provides for a scientifically based calculation of reserves in days for each element of working capital, taking into account the upcoming changes of all factors and one-day consumption of individual types of material values, gross, commercial products. The standard in monetary terms (the need for working capital) is determined by multiplying the reserve rate in days for one-day costs (consumption).

Analytical, or experimental statistical method involves the calculation of the norm of working capital in days based on the reporting period data. The norm is calculated by dividing the average actual residue of the material values \u200b\u200bof individual species, except for unnecessary and unnecessary to one-day consumption of them in the reporting period. The standard in monetary terms is determined by the product of the obtained norm adjusted to the change in the conditions of the organization of production, supply and sales, for one-day consumption of material values \u200b\u200bin the planned period.

In the coefficient method, all normalized working capital is divided into two groups: dependent and directly independent of the changes in the production program. The first group includes negotiable assets serving the production cycle. The standard in monetary terms under this group is determined by adjusting the consolidated standards of the preceding period on the planned change in production volumes and to accelerate the turnover of working capital.

According to the second group (spare parts, expenses of future periods), the standard of working capital is established on the basis of the relationship between the growth of commercial products and the level of actual remnants of values \u200b\u200bunder this group over a number of recent years.

Analytical and coefficient methods are acceptable at enterprises with a fairly sustainable production program. If the company had sufficient current assets in the reporting period, then in the planned period, the required current assets in accordance with the analytical method are changed directly proportional to the change in production volume. The coefficient method is more accurate, since the growth of current assets is considered to be separate elements on various coefficients.

When using analytical and coefficient methods, it is important to assess the validity of the actual remainder of working capital and its compliance with the standard. For this, first of all, the structure of working capital is analyzed, hopeless receivables are written off, illiquidies in stocks and unfinished production are evaluated, reserves of finished products in stock, etc. are analyzed. The assets treated in this way should be compared with the standards for individual elements. If this work is not carried out, then the use of analytic and coefficient methods provides unreasonable results even with a stable production program. The direct account method is very laborious, but allows you to most accurately calculate the needs of the enterprise in current assets.

Using outlined methods is determined by the amount necessary investments On the formation of own working capital for the newly created enterprise, new types of industries at existing enterprises, as well as for the planned expansion of production.

The determination of the need for own working capital (rationing of working capital) begins with the development of the minimum necessary norms of stocks of all working capital separate species commodity values \u200b\u200bfor implementation economic activity, expressed in days or percentage of the planned need of the upcoming period. The reserves of inventory of inventories of every species are established by each enterprise on their own for several years on the basis of industry and other features of its economic activity (according to new enterprises, these norms are included in the business plan indicators).

For averaged settlements in foreign practice, the following standard reserves norms apply when developing business plans: for raw materials and materials - 3 months (90 days); on finished products - 1 month (30 days); By goods implemented by trade enterprises - 2 months (60 days). Then, based on the developed norms, estimates of the cost of production, costs, unaccounted estimates, but covered by working capital, determines the need of an enterprise in its own current assets.

The need for working capital as a whole on the enterprise (standard of own working capital) in monetary terms is calculated by multiplying the amounts of one-day costs of the enterprise covered by working capital, to the reserve rate in days or by multiplying the corresponding absolute value of these costs to the established rate of working capital in percent.

The need for stocks of inventories is calculated differential in the context of their following types:

a) the need for working capital, advanced to production reserves (raw materials, materials, etc.);

b) the need for working capital, advanced to the reserves of unfinished production and finished products (for industrial enterprises);

c) the need for working capital, advanced to stocks of goods (for trading enterprises).

The need for working capital, advanced to the stocks of commodity and material values \u200b\u200bof each species, is determined by multiplying the one-day consumption to the rate of stock in days and can be expressed as follows:

N \u003d about: t x d,

where n is the need for own working capital (standard of own working capital) by type;

About turnover (consumption, costs) by types of working capital;

T - the duration of the period in the days (it means that: T one-day (consumption of materials, one-day production costs);

D - rate of working capital in days.

The duration of the period in days is taken for a year in the amount of 360 days, for the corresponding quarter - 90 days. To calculate the standards in seasonal sectors, a quarter is accepted with a minimum production volume, in not seasonal - Iv apartment.

The operating cycle is an integral part of the process of functioning of the enterprise. What does he represent? What intervals are included in it? How to calculate the optimal duration of the operational cycle? These, as well as a number of other issues will be discussed under this article using numerous examples.

general information

Anyone industrial enterprisewhich functions has its own operating cycle. What does he represent? Such a designation is used for a period of time for which material and production reserves (raw materials, tools) are purchased, ready-made goods are created, which is implemented on credit or for cash. After that, receivables are repaid. This is all the operating cycle of the enterprise. It is used to display the time interval during which current assets commercial organization fully applied. Each entrepreneur or specialist should know how the operating and financial production cycle is interrelated. Why?

General scheme of work

Let's look at how everything happens from the very beginning. So, everything starts with procurement of raw materials. During its receipt to the production conveyor and the operating cycle begins. It ends upon receipt of funds from the buyer of products. Conditionally, you can consider two options for its implementation:

I. Production cycle and traverse period of receivables. In this case, the first part continues from the start of the processing of raw materials and before the sale of finished products (but this is not the same thing that receiving funds, be attentive). Materials are processed, semi-finished products are manufactured - and so until the final product is. After an agreement was concluded for the sale of finished products and she herself was shipped, the period of accounting of receivables begins. He ends at that moment when the buyer transfers cash (or the last payment if he took on credit).

II. Ratio of accounts of payables and financial cycle. The first part in this case continues until the resulting raw material is paid. Next will be the financial cycle until the payment by the customer of the manufactured products.

You can look at the process from two points of view. But one remains unchanged - the fact that the operating cycle in both cases is completed. Although there are several other views on its components. Let's get acquainted with them.

Compound

There are somewhat different glances. The variant listed is largely similar to the previous one. And according to it, the period of the operational cycle looks like this:

I. Turnover material- production reserves. This is the average time (calculated in the days), which is necessary in order to transform raw materials into finished products, as well as implement it. He begins at the time when the materials go to the warehouse, and ends as soon as the goods are shipped to the buyer.

II. Traffic receivables. This is the average to be customer to pay the whole amount for the goods that was sold on credit.

III. Credit payroll. This is the average that you need an enterprise to pay loans that are taken for the purchase of material and production reserves.

The duration of the operating cycle is a unique value for each individual organization.

About turnover assets

They are the most rolling part of the property of the organization. These objects can be used both in one and several operating cycles (but exclusively within the framework of a small calendar period of the year). At the same time, they are considered mobile assets of the organization, that is, such that or are cash, or they can be turned into them promptly. Current assets have three stages of their lives:

I. Procurement. Initially, they are transformed into production (tools and raw materials) from the monetary form.

II. Creature. At this stage, with the help of the toolkit used, the raw materials takes not a production, but a commodity form.

III. Implementation. Current assets are transformed from the commodity form to the monetary.

And that's it. This runs the operation cycle, and you can start a new one.

A little mathematics

Let's talk about the operating cycle using a mathematical apparatus. Do not rush to close the page, for we will pay attention only to the necessary moments, because the calculation of the operational cycle allows you to avoid unnecessary losses and miscalculations when performing activities. So:

I. The time of the residence of raw materials, as well as materials in stock: B \u003d (SZ / GMZ) * 365. What does this formula mean? Here SZ is the cost of stocks of materials and raw materials, while GMZ - annual material costs. 365 is the total number of days. In the leap year there will be 366, do not forget about it.

II. The time of the production process: PP \u003d (SZNP / (SP * K)) * 365. SZNP is the cost of reserves of work in progress. SP - the cost of production, which was sold. K is the cost of cost increases, which characterizes the ratio of the cost of non-negotic production to the amount of money, which is necessary for creating a finished product.

Features of financial cycles

Initially, it should be noted that the theory is not taken into account at the same time the presence of accounts and payables, and the advances already issued. What to do in this case? If there is a goal - to analyze, then usually compare the issued advances with accounts with payables, as well as the amount of money from receivables. And with orientation on the dominant indicator and the final assessment of the financial cycle is carried out.

There is one point here. The shorter the duration of the cycle, the smaller the organization is provided by current assets. And accordingly, it happens risky. And the reverse moment. With a significant duration of the cycle, the need for the organization in the source (s) of financing together with appetites is increasing.

Consider small example from wholesale suppliers. In this case, a significant cycle leads to the loss of margin due to the need to pay interest on loans involved in the emergence of receivables. In other words, you can observe the contradiction between the stability of activity and efficiency.

Operational cycle optimization

Alas, but everything in this world is controlled is impossible. Changing the supply scheme, calculation conditions and other unpleasant moments can be viewed as a situation in which the organization loses market positions and begins to appear a threat to continuous activities due to the need for financial resources. How can progress can be achieved:

I. For this, it is necessary to work on a decrease in the time component of the cycle (especially its financial part). It is possible to concentrate on the process of acquiring raw materials, production, improve implementation and reduce the number of days (weeks, months), when the finished products are in warehouses.

II. Reduce the duration of the repayment of receivables, tighten the credit policy, but only if this is allowed to make market conditions.

III. Maximize loan repayment time by approval with postponement providers for payments.

Risk of optimization

We should not forget: the elongation of the operational cycle allows you to achieve sustainability, while profit size and overall efficiency will decline. If you are shortened, you can quickly and make a lot. But along with this will be high risk to ruin. At the same time, attempts to change the state of affairs will show the position of the organization on the market. So, if you require prepayment, this suggests that the company does not believe and doubt. If you are ready to give an advance, then this means that interested in interaction.

If you are interested in building an organization with effective manageability and financial stability, it is necessary to take care of the absence of significant prepayments, as well as on the balance sheet of payables and receivables. And here, too, one interesting and specific moment arises.

Paradox effective organization

Companies and enterprises in which everything is configured, which work without problems, have significant power and purposefully reduce the duration of their cycle. For this, prepayment and payables are widely used. But this is all organized in such a way that financial stability remains at a sufficiently high level.

By the way, previously stated about the operating and production cycle as its component. When developing a program of implementation, it is necessary to take into account not only the theoretical efficiency of the use of working capital, but also objective processes that take place in the enterprise. Alas, as a rule, they only increase the timing of work. At the same time, the coefficient of assets turnover is reduced. And to compensate for the fall, you have to increase margin. But this can already lead to an increase in capital profitability, which in itself is good.

Conclusion

As you can see, the operating cycle can be called a basic common point in the work of any industrial organization. From how qualitatively it is worked out and implemented, the success of the enterprise largely depends. Moreover, if a successful configuration is found, it does not mean that everything is fine, and improve improvement can be folded. It is always necessary to prove the situation so that in the event of a change in the situation, it is instantly to respond to all the necessary actions. How not to remember the wonderful law of the evolutionary selection, formed by Charles Darwin: "It is not the strongest, and adapted." And although these words were formed for biology, they are no less relevant in the economy.

Cash by itself, i.e. Not invested in the case cannot bring revenue, on the other hand, the enterprise should always have a certain amount of free funds - this is determined by the need to systematize asset management approaches. In general, the system of effective cash management involves the allocation of four major blocks of procedures: the calculation of the financial cycle, the analysis of cash flow, predicting cash flows, determination of the optimal level of funds.

Among the most important characteristics of the effectiveness of current activities are indicators of the duration of the operational and financial cycles. The operating cycle is the conditional name of the period as a typical recurring element of the production and commercial process (from obtaining raw materials to the return of cash in the form of revenues), during which the cash is donated in reserves and calculations (debtors); An analytical indicator that characterizes the average defenssment of cash in these assets is called the duration of the operational cycle. The beginning of the operational cycle - the appearance of material reserves on the balance of the company as a signal about the beginning of the transformational chain "Raw materials (with the appearance of obligations to pay it) - products - calculations - cash", and its ending is the appearance on the balance sheet of revenue from the sale of manufactured and sold products. The operating cycle begins from the moment the obligation appears to pay acquired production reserves, i.e., from the moment of a formal investment of funds in stocks, and ends with the moment of returning funds to the company's accounts in the form of revenue.

The financial cycle is the conditional name of the period as a typical recurring element of the trade and processing process, at the beginning of which the money actually "go" to pay for suppliers for their purchased raw materials and materials and at the end of which - "return" in the form of revenues. An indicator characterizing the average duration between the actual cash outflow in connection with the implementation of the current production activities And their actual influx as a result of production and financial activities is called the duration of the financial cycle.

Reducing the operating and financial cycle in the dynamics is considered as a positive trend and vice versa. If the reduction in the operational cycle can be done due to the acceleration of the production process and the turnover of receivables, the financial cycle can be reduced both through these factors and due to some non-critical deceleration of accountability of payable debt.

Thus, the duration of the financial cycle in the days of turnover is calculated by Formula 1:

PFC \u003d POT - Wok, (1)

where POC is the duration of the operational cycle (turnover of receivables in days + turnover of stocks in days), thousand rubles;

Wok - the time of turnover of accounts by payables, thousand rubles.

Calculation of the duration of the operating and financial cycle for 2005 - 2007 is presented in Table 10.

Table 10 - Calculation of the duration of the operational and financial cycle LLC "Firm TIK" for 2005 - 2007

Table 10 data suggest that the turnover of receivables in 2007 decreased from 3.8 to 2005 to 2.5 revolutions per year, thereby, the duration of one turn has increased by 49 days.

Inventory turnover in 2007 amounted to 5.3 turns per year, which is 3.4 turns less than in 2005, when this indicator was 8.7 revolutions per year. The duration of one turn has increased by 27 days.

The turnover of payables in 2007 decreased by 2.4 turnover per year compared with 2005, the duration of one turn has increased by 98 days.

Due to the high duration of one turnover of stocks and receivables, the duration of the operational cycle LLC "TIK" from 2005 to 2007 increases. In 2007, the duration of the operational cycle organization amounted to 212 days, which is 76 days more than in 2005.

The duration of the financial cycle LLC "TIK" in 2005 - 2007 is a positive value, which indicates the growing needs of the organization in attracting borrowed funds. In 2007, this indicator in the organization amounted to 32 days, but it is 22 days less than in 2006. Reducing the financial cycle indicator is a positive trend, as it indicates a reduction in the need for borrowed funds. This is due to the management of payables, due to the fact that the organization postpones its repayment.

Management of receivables

Accounts receivable is an integral element of the sales activity of any enterprise. Pretty big part of it in common Structure Asset reduces liquidity and financial resistance of the enterprise and increases the risk of financial losses of the company. Modern conditions for the development of our country's economy provide for the dynamism of the development of mutual settlements between counterparties. In such conditions, special attention must be paid to receivables. It is very often determined as component of working capital, which is the requirements for physical or legal entities regarding payment of goods, products, services. There is a tendency to identify receivables with a commercial loan. A commercial loan is provided to the buyer with regard to its value (the company's resources are provided on a paid basis) and urgency (the use of the funds provided is limited). According to accounting standards, receivables are the amount of debt debt enterprise for a specific date. Recycuses can be both legal and individuals who owe the company with cash, their equivalents or other assets. According to accounting data, you can determine the amount of debt to any date, but usually this amount is determined at the balance sheet date. Usually, the economic benefit from receivables is expressed in the fact that the enterprise as a result of its repayment is counting sooner or later to obtain cash or their equivalents. Accordingly, receivables can be recognized as an asset only when there is a probability of its repayment by the debtor. If there is no such probability, the amount of receivables should be written off. If the debt is impossible to correctly appreciate, that is, to determine its amount, it cannot be recognized as an asset and should not be displayed in the balance sheet. Thus, receivables can be defined as a revolving asset of an enterprise, which occurs in its sales activity and characterizes the relationship between counterparties on the payment of the value of the goods received (work, services). The review of statistical data in Ukraine for 2006 shows the growth: receivables on all business entities (except for small enterprises and institutions that are held at the expense of the budget) as of April 1, 2006 amounted to 346.9 billion UAH. Throughout January-March 2006, receivables increased by 8.2%. The share of overdue debts in the total amount of receivables was 20.4% against 21.6% as of January 1, 2006, the Government considers an extremely acute situation in housing and communal services. Perennially losslessness and receivables of consumers led to the fact that local executive authorities irresponsibly relate to the quality and volume of the provision of relevant services to the population. As a result, the housing fund and com-munal infrastructure is not given in the proper technical condition, the costs of electricity, fuel, water are not reduced. Work with receivables, that is, the process of managing it, is an important point in the activities of any enterprise and requires the close attention of managers and managers. The determination of approaches to the management of receivables, stages and methods is a problem that does not have a unambiguous decision depends on the specifics of the activities of the enterprise and personal qualities of the manual. Since the management of receivables is a component of the enterprise management system, the process of managing it can be carried out by stages. In addition, the management of receivables occurs in time, and it is natural that it must be submitted as a certain point system. According to I.A. The formation of the formation of control algorithms of receivables is carried out at the following steps: Analysis of the receivables of the enterprise; the choice of the type of credit policy of the enterprise towards buying products; determination of the possible amount of working capital, which is aimed at receivables for commercial and consumer loans; Formation of a system of credit conditions; Formation of customer assessment standards and differentiation of loan provision; Formation of the procedure for collecting receivables; ensuring use in the enterprise of modern forms of refinancing receivables; Construction of effective motion control systems and timely collection of receivables. Almost to the same conclusion came G.G. Kirieve, but reading I.A. Blanca, it highlights a few more stages: control of the financial state of debtors; In case of non-schedule of debt or its part, the establishment of an operational relationship with the debtor for recognition of the debt; appeal to the economic court with a claim for the recovery of overdue debts; Compensation of losses from the fundamental debt fund. Russian specialists allocate four main areas of work on receivable receivables: planning the amount of receivables on the company as a whole; management of customer loan limits; control of receivables; Motivation of employees. Information on debtors and their payments is needed to manage receivables of the enterprise: data on accounts exhibited by accounts that are not paid at the moment; delay time payment for each account; the size of hopeless and doubtful receivables estimated on the basis of established by the company's regulations; Credit history of the counterparty (average period of delay, the average loan amount). As a rule, such information can be obtained in the study of the accounting system. However, before proceeding with the study of the system, it is worth identifying the principles of accounting and control of receivables. The author of this article stands out such steps of receivables management: building a system of accounting and control of receivables; Development of credit policies; Automation management of receivables. In general, the above stages of receivables management are based on the main control functions. Based on the definition of management, which is given in the work of the authors under the leadership of Zarubinsky V.M. Management - the function of organized systems of different nature (biological, social, technical), which ensures the preservation of their specific structure, supporting the activity mode, the implementation of their programs and goals. It is proposed in the process of managing receivables to allocate such steps. First stage of control - Planning the amount of receivables - was, there will be one of the most important. This is due to the fact that in the process of implementing the Ra Bot on planning the amount of receivables, it is necessary to take into account not only the parameters of receivables, which characterize its condition, but also a number of external factors that can significantly affect the final management results. In the process of carrying out accounting receivables, information on the financial situation of the debtors is collected, on which the state of receivables is depends. The main complexity at this stage is to determine the minimum volume and the nomenclature of the data that allow the control subject to have a clear idea of \u200b\u200bthe state of the control object. This circumstance is associated with two moments. The first moment is caused by the fact that cash, which are always limited to collecting and processing considerable information. The second point is caused by the fact that the information may be duplicated and late, and this does not dispose of the adoption of a reasonable decision. The second stage of control - Control of the amount of receivables, which provides for comparing the actual accounting data with planned or budgets. In the era of centralized planning, it was enough to develop planned indicators, but in market conditions, the planned indicators should be formed when studying the market, which requires the development of development business plans, budgets. Due to the lack of a system of planned performance indicators of the enterprise, the control stage performs several other functions, actually control is reduced to comparing accounting data only for the last and current (planned) period. Therefore, an efficient management process should be based on a general enterprise management system. In the third stage - Analysis of receivables - are investigated and identified factors, the influence of which led to the appearance of deviations of the actual pa-meters of the state of receivables from the planned indicators. Fourth stage - stage of developing a number of alternative solutions or determining the optimal solution. To form several possible solutions aimed at improving the situation in which an enterprise is located, enough information collected at the analysis stage. Based on this information, you can create a system of restrictions on the relevant target function, as well as to rank the reasons that most affect the amount of receivables. The same reason may cause several consequences, and the elimination of these reasons is divided into order to assess possible results. Thus, several alternative solutions are being developed or even determined by the optimal solution. Fifth stage - the phase of the implementation of one or more alternative solutions - at this stage, the adopted optimal solution is carried out or non-ring alternative solutions. At this stage, the necessary funds are determined, as well as the procedure for implementing the decision taken. An important issue in the management of receivables is its classification. Depending on which a sign is based on its classification, a variety of receivables management methods can be used. The traditional classification of receivables provides its distribution on the legal criterion for an urgent or overdue. The urgent relationship receivables, the maturity of which has not yet come or is about less than one month and is associated with the normal periods of calculations, defined in agreements. Overdue is a debt with a violation of the contractual time. Next it is important to disassemble the concept of dubious debt, which is understood as the current receivable debt, regarding which there is an insecurity of its repayment by the debtor. It is clear that the debts of this type continue to be at the balance sheet of the lender, while there is at least a minor confidence in their repayment. They will only be written off from the balance when they become hopeless. Therefore, we will separately allocate hopeless receivables to which we consider the current receivables regarding which there is confidence in its non-return by the debtor or on which the limitation period has expired. In accordance with P (C) BU 10 receivables are divided into long-term and short-term. Long-term receivables recognized the debt that does not arise during the normal operation cycle and will be repaid after 12 months from the balance date. U P (C) bu 2 "Balance" is given to the definition of the operational cycle - this is a period of time between the acquisition of reserves for the activities and receipt of funds from the sale of products or goods and services produced from them. The definitions of the normal operation cycle in standards are not, however, using the previously defined operational cycle, it can be concluded that this is an operating cycle under normal conditions. Usually, the operating cycle does not exceed 12 months, but according to some activities it can last more than one year. Despite this, the debt arising in the process of such an operating cycle is usually considered not long-term, but current. Consequently, long-term debt is mostly debt not related to operating activities. Current receivables (short-term) is the debt resulting in the process of a normal operational cycle or redeemed for 12 months from the balance sheet date. Thus, if the debt that originated is not related to the operating cycle, but it is envisaged that it will be repaid in a period of less than 12 months, such debt is recognized as current. The balance of the balance is usually the last day of the reporting period. From the previously defined definitions of the long-term and current receivables, it should be concluded: since the attribution of debt to the current or long-term attached to the balance sheet date, the specified date should be reviewed long-term debt on individual debtors to repay it. If it turns out that under the maturity of the debt, less than 12 months left, the former long-term debt should be displayed on the balance date as the current one. B.O. Zhnyakin and V.V. Krasnov offers the most complete classification of receivables on an urgent sign, namely: current, urgent, overdue, long-term and hopeless. The classification of receivables can be put in the distribution of receivables depending on the target groups of debtors. At the same time, marketing approaches are used, which are based on the study of consumer behavior. Accounting for various reasons for non-payment and real possibilities of citizens on paying arising debts are solved on the basis of payments on payments and debts. One of these methods is the ABC analysis method. Due to the fact that this term came from the abroad, it often arises confusion between the "Ey Bi-Si method" (from English Activity Based Costing), and "A-BE-CE - Analysis" from ABC-Analysis. Their essence is absolutely different. ACC method (Activity based Costing) is a way of determining and taking into account expenses by activity of the organization, a method for playing definition and expense. ABC-Analysis (ABC-Analysis) is associated with the name of the Italian economist and sociologist Vilfredo Pareto (in statistics a well-known "Pareo chart". The basis of this method is the law, an open Italian economist V. Pareto, who says that most of the possible results are responsible The relatively small number of reasons, at the moment this law is more famous as "Rule 20 for 80". This method in domestic practice and more widely abroad is used both to select objects from the total product range, which are produced by the enterprise and within one species products. The ABC analysis method is based on the distribution of the set of potential objects on the specific weighing groups of a particular indicator. The literature provides examples of ABC analysis in terms of turnover, profits, laboriousness, materials costs, and even in such parameters such as speed and consumer power. Regarding receivables, it can be formulated in this way: 80% of the amount of receivables can be listed for 20% of the debtors. The number of groups during AVS analysis can be any, but the largest highlighting obtained the division of the considered combination into three groups (75: 20: 5) than, obviously, the name of the method known abroad as ABC-Analys_s is due. Group A is a slight number of objects with a high level of specific gravity by the selected indicator. Group B is the average number of objects with an average level of specific gravity by the selected indicator. Group C is a high number of objects with non-significant value of the specific gravity by the selected indicator. Gg Kiromesev offers the ratio (75: 20: 5) to determine the degree of weight of buyers: and buyers are those with which the company carries out an approximately 75% turnover. This turn is about 5% of buyers. B - buyers (20%) give, as a rule, 20% of turnover. C - buyers (75%), the turnover is approximately 5%. Such interpretation of the Pareto rule is possible regarding receivables. Group A - the most important debtors, those 20% on which are 80% of receivables, which deserve increased control, since efforts will be justified. The Group B - the estimates of the average importance of those in the amount account for 15% of receivables and requires only occasionally. Group C - Lightweight debtors Those who account for 5% of the entire enterprise receivables. The management of the debtors of this group should not be given too many forces and time. The sequence of analysis: firstly - calculate the total amount of the ownership of all customers of the list; secondly - calculate 80% of this amount; Thirdly, to highlight by summing up debt on the list, starting from its part, where the greatest debts, the part of the consumers who owed 80% of the total amount. Their number is significantly less than the number of debtors. A highlighted group of citizens is the first and main target audience, given its relative smallness and the bulk share of the debt (80%). Working with this category of debtors should be based on a personal approach. These efforts are justified by the amounts of debts that will be returned. Similarly, two more groups are allocated: the very small one will be the first, the most numerous is the third. This method makes it possible to form the target audiences of the debtors, to which the debt collection methods used will be different, which will make it possible to choose the most effective preciseness methods for this category. In addition, the benefits include the choice of a group of debtors that accumulate the largest amount and which must be paid primarily. When applying the ABC analysis method, certain difficulties arise, especially related to utilities. They consist in the need to automate and computerize all relationships with debtors. At the same time, in utility enterprises, computerized billing of payments should be carried out not at home or areas in general, as is always done, but in finite consumers. The result of the analysis is the lists of debtors with which it is necessary to work. The ABC analysis method is used mainly when controlling receivables, which already exists. To prevent the occurrence of unpredictable debt, you can use management with the establishment of credit limits. It represents the maximum allowable amount of receivables of receivables, both in general for the enterprise and for each counterparty or installed for each of the commercial departments of the company allocated by the industry principle proportional to the part of the revenue for previous period In the total sales of the enterprise and is approved by the General Director. According to the same scheme, the distribution of limits among managers who work with buyers. Each of the managers in turn should distribute the credit limit on customers received. As a rule, for new buyers who work with a company for no more than six months, the credit limit is set in the amount that does not exceed the average monthly sales. For counterparties that work with a company for more than six months, the credit limit is established by the manager and is necessarily approved by the management. Holding these indicators, the company primarily focuses on its strategy, an increase in market share requires a greater loan limit than the content of its market share and accumulation of free cash. At the same time, it is necessary to maintain sufficient liquidity of the enterprise and take into account the credit risk (the risk of full or partial loss of issued funds). In most cases, work with a new client begins on a prepayment. After the statistics of payments and supplies according to the counterparty are accumulated, it can be provided with a loan limit. The use of credit limits gives advantages when working primarily with new clients - allows you to prevent the emergence of uncontrolled de-bita debt. Difficulties that arise: Mandatory AV-Tomatization of the Process, Knowledge of the Counterparty, the study of its credit capabilities and solvency, which provides for close contact. The presence of significant amounts of accounts receivables of Ukrainian enterprises, as evidenced by the analysis of statistical data, requires attention to the development of both the methodology for the effective management of existing receivables and the prevention of its occurrence. Management of receivables of any enterprise, including com-munal, in order to increase its effectiveness, requires diversification of approaches. The ABC analysis method is one of many, which is advisable to use in enterprises to determine target audience. Since the use of ABC analysis will allow to carry out segmentation, which will provide an opportunity to apply certain methods of influence into debtors. The use of credit limits will allow you to control the process of arrears and will make it controlled. The uniforms of the two considered methods will allow efficiently controlling the receivables of the enterprise and develop effective measures to reduce it.

One of the indicators that indicate the degree of "health" is the duration of the financial cycle. For its calculation, it will require data on the duration of the production cycle, as well as periods of discharbility of payables and receivables. A decrease in this value in the dynamics indicates the effective management solutions in terms of the use of working capital of the company and makes it attractive in the eyes of banks and partners.

Financial cycle of the company (eng. Cash Conversion Cycle) is financial indicatorcharacterizing the duration of the period of time in the days between the payment of payables and the return of the recoveors of the organization.

In other words, this is the number of days between payment for raw materials and materials from our organization to suppliers and receiving money for the finished products shipped by us.

Consider the details on the example of the agricultural enterprise LLC "Farmer", which is engaged in crop production.

There are three main types of cycles:

1. Operating cycle.

   It is the time that passes from the purchase of raw materials and materials, such as seeds and fertilizers, before receiving funds for the grown of them and sold products. At the same time, the date of purchase of raw materials may not coincide with the date of payment for him to the seller. This is formed payables.

   Reference. Accounts payable is a debt to the participant of the transaction, which is obligatory to repay. It is customary called "creditors".

   The day of shipment of finished products LLC "Farmer", for example, wheat, may also not coincide with the day of receipt of cash for it from the buyer. In this case, receivables arises.

   Reference. Accounts receivable is the debt of buyers for the services rendered and shipped goods. It is customary to call "accounts".

2. The production cycle.

   The time interval from obtaining the Farmer LLC of raw materials and materials before the release of finished products and placing it to the warehouse. This indicator is associated with the movement of stocks from seeding before collecting the finished harvest. Purchased seeds fall on the warehouse in the form of raw materials, then when they are crushed, they are transformed into unfinished production (growing period), further, at the time of harvesting from the field, become finished products and placed on the warehouse for further sale.

   Important. The financial and production cycles of the enterprise are usually concluded within the operational.

3. Financial cycle.

   The number of days of moving money from paying suppliers to receiving funds from buyers. So far, the Farmer LLC is inside this cycle, they are not entirely money in the usual understanding. Money locked inside the process. They cannot be removed without breakdowns of the entire mechanism. They are considered revolving capital.

   Reference. Current capital is funds that participate and are fully consumable within one production cycle.

Formula for calculating the financial cycle:

Fin. Cycle (in the Days) \u003d Production. Cycle (in the Days) + Subse - Pcs

Substrators - a period of accounting of receivables;

Pcs - the period of turnover of accounts payable.

Additional Information

The formula for calculating the production cycle:

Pz \u003d the duration of the technological cycle + break times + period of natural processes

Substance \u003d receivables (amount per specific date): revenue: 365 (number of days a year).

Formula for calculating the rate of turnover "Creditors":

PcSe \u003d payables (amount per specific date): Procurement: 365 (number of days a year).

On the example of the indicators of LLC "Farmer"

For example, in April, the Farmer LLC began to sow corn, with its own funds for the purchase of seeds, fertilizers and fuel. I had to take the raw materials "under the harvest" from suppliers for 195 days. Field work was carried out, and after 6 months, in October, it was time to collect a crop. The Director-General managed to agree with the buyer to sell all corn at a bargain price, but with the condition for receiving money only 15 days after the shipment of products. In this case, the financial cycle is zero.

This is an example of the perfect capital management efficiency. LLC "Farmer" used in its activities the borrowed resources exactly until the moment until you had to pay the bills. Further commitments before the supplier of raw materials and received a profit from the transaction on the sale of the crop, not "freezing" of their own money inside the cycle.

If cEO LLC "Farmer" used only its own resources, it would not be burdened with the risks of the non-return of debt, for example, in the event of a crop death. At the same time, the money of the organization would be locked inside the cycle for 195 days - this is an example of ineffective use of capital. In such cases, they say "not risks".

Positive and negative values \u200b\u200bof the financial cycle

It is not clear to say that a positive value when calculating the financial cycle is bad, and negative is good. This indicator is needed by financial managers of the company to manage it.

If the indicator takes a negative value, then this means that in the organization there is a lot of own money, and it does not need to replenish working capital. It may even give loans herself.

It sounds well and reliably, but this suggests that the organization minimizes risks, acts too carefully, which means that it misses the opportunity. Efficiency falls.

On the contrary, a positive value indicates a high dependence on creditors and debtors. Too much money enclosed inside the cycle is losing their liquidity.

If the farmer LLC is in such a situation, then even small delays in paying from buyers will lead to cash rupture. It is equivalent to the progress of the circulatory artery of the business. We will have to take money from a bank or search for suppliers with even longer delay.

The ideal situation at the enterprise is achieved by optimizing payables and receivables. Reducing debitors without prejudice to the service and loyalty for buyers and extension of creditors without the risk of degradation of solvency.

Reference.Liquidity - the ability of assets to turn into money. For example, money as an asset is maximally liquid, and the old warehouse building in more often - low polliquity, since it is almost impossible to sell it.

Who and why calculates the financial cycle

This indicator is used by analysts and financiers to obtain the most accurate picture on the efficiency of the enterprise. It is interesting in aggregate with other coefficients and indicators that allow us to conclude financial condition specific organization.

For example, many banks before issuing a loan estimate the financial situation of the potential borrower. Information about the duration of cycles is also used by company managers for adoption management solutions.

Important: An indicator of the duration of the financial cycle is most interesting when evaluating in dynamics. If, when analyzing several reporting dates, there is a tendency to increase its value, it may indicate problems in relationships with partners. For example, the debtors do not pay bills on time, or, on the contrary, the organization itself allows delay in the fulfillment of obligations.

Tatyana Mandenets - Candidate of Economic Sciences, Auditor and Consultant with fifteen-year-old experience, in his video tells about what a financial cycle, which indicators are involved in its calculation and what can be revealed with it.