Revolving production assets- this is the part of working capital that is consumed in each production cycle and the cost of which, in contrast to fixed production assets fully transferred to newly created products (works, services).

The in-kind content of circulating assets is the objects of labor that are in production stocks (raw materials, basic and auxiliary materials, fuel, etc.) and entered into the production process, the costs of future years for the development of new products and the improvement of technology, low-value and wearing out items, the cost of which does not exceed 10 thousand rubles. or whose service life is less than 12 months, regardless of cost.

circulation funds- these are funds that ensure the continuity of the production process and the sale of products (works, services) of the enterprise. They are used to serve the sphere of circulation, conduct supply and marketing activities.

The circulation funds consist of products ready for sale, shipped products for which documents have not been submitted to the bank for payment or are in transit, accounts receivable And Money at the cash desk, on settlement accounts in banks and in the calculations necessary for the purchase of raw materials, materials, fuel, etc., payment of wages.

The in-kind content of working capital is studied on the left side of the balance sheets of enterprises, which is called an asset. Hence, the individual elements of working capital are called assets .

The funds advanced for the formation of working capital are studied on the right side of the balance sheets, called liabilities. Hence, the individual sources of working capital are called liabilities .

Working capital is formed from two main sources:

1) own, that is, funds allocated to the enterprise during its formation and replenished in the future,

2) borrowed funds (loans).

Own working capital- this is a part of working capital, which characterizes the property independence and financial stability of the enterprise. They are formed primarily through deductions from profits.

Borrowed funds- this is the source of the formation of working capital; funds received in the form of bank loans (credits) and from other sources; are temporarily at the disposal of the enterprise and are used on a par with their own working capital.

The main source of financing for the growth of own working capital is the profit of the enterprise. Additional need for working capital, due to temporary needs, is provided short-term loans banks.

In addition to their own and borrowed money in the turnover of enterprises are constantly involved funds - accounts payable all kinds.

Circulation of working capital The enterprise includes three stages:

At the first stage, working capital is transferred from the monetary form to the commodity form (acquired productive reserves and labor force)

On the second - production stocks with the participation of tools and work force are converted into finished products (works, services),

On the third - finished products (works, services) are sold, funds are released and again take the form of money.

The circuit is considered completed when the funds for sold products credited to the company's account. The first and third stages of the circuit belong to the sphere of circulation, the second - to the sphere of production. The continuity of the production process provides for the availability of working capital in each of the three stages.

Average annual cost of working capital- calculated as average chronological, input and disposal of working capital are timed to the middle of the month:

Where OS n.g, OS k.g- the cost of working capital at the beginning and end of the year, respectively,

OS i- the cost of working capital on the 1st day i-th month, starting from February ( i= 2) and ending with December ( i = 12).

The efficiency of the use of working capital of the enterprise is characterized by such indicators as the turnover of working capital and the turnover ratio.

Working capital turnover- this is the duration of their complete circuit, performed from the first stage (acquisition) to the last (implementation finished products, works, services) in days:

Where OS Wed- average for the period T working capital balance

R- sales revenue for the period T,

T- duration of the period, days.

Example. The balance of working capital for the enterprise amounted to: on January 1 - 110 thousand rubles, on February 1 - 115 thousand rubles, on March 1 - 125 thousand rubles, on April 1 - 130 thousand rubles. Sales of products for the first quarter amounted to 900 thousand rubles. Calculate the turnover of working capital.

Solution. Average balances of working capital for the period:

One day earnings:

Working capital turnover:

Working capital turnover ratio is the number of turnovers made by working capital for a given period:

Example. For the conditions of the previous example, calculate the turnover ratio of working capital.

Solution. Turnover ratio:

that is, for the quarter, the working capital of the enterprise made 7.5 turnovers.

Turnover indicators are related by the ratio:

In order to improve the efficiency of the functioning of working capital, enterprises carry out not only their accounting, but also rationing, for which they calculate:

1) norms of working capital in days,

2) norms of working capital in monetary terms.

Standard is a technical and economic indicator that reflects limit value parameter, resource usage level.

Working capital ratio- this is the minimum amount of cash needed by the enterprise (firm) to meet the total need for working capital. IN general view calculation of the standard individual element working capital can be performed by the formula:

Where BUT- the standard of a separate element of working capital,

ABOUT- turnover for this element for the period (for example, the consumption of materials for the year, quarter, month, etc.),

T- the duration of the period in days (a year is taken equal to 360 days, a quarter - 90 days, a month - 30 days),

H- the norm of the stock of working capital for this element in days,

FROM- one-day consumption of this element.

Example. According to the cost estimate for the year, the need for materials is 720 thousand rubles. The stock rate is 15 days (that is, the material must be delivered 15 days before it goes into production). Calculate the standard of working capital for materials.

Solution. One day material consumption:

Working capital ratio for materials:

This means that during the year the enterprise must maintain a stock of materials at the level of 30 thousand rubles.

In the economic literature, the grouping of working capital of an enterprise is accepted, according to which working capital is divided into:

1) in terms of turnover for:

a) circulating production assets(field of production),

b) circulation funds(sphere of circulation);

2) on the element of working capital for:

a) productive reserves(raw materials, materials, fuel, spare parts, low-value and wearing items),

b) cost of unfinished products(work in progress, deferred expenses),

c) finished products(products in warehouses, shipped products),

d) cash and settlements(cash, receivables and other settlements);

3) by coverage normalization to:

a) normalized(productive reserves),

b) non-standardized(cash and funds in settlements);

4)by source of formation to:

a) own,

• The first section of the balance sheet is represented by non-current assets (fixed assets and intangible assets), which are accounted for in accordance with the residual value minus depreciation (line 1100 of the balance sheet);
• The second section of the balance sheet is represented by working capital, which are directly involved in the production process (line 1200 of the balance sheet).

The total assets of the enterprise are recorded in line 1600 of the balance sheet, which is compiled by accountants at the end of each year. Using this formula, balance sheet indicators for several years are used, while the indicator for line 1600 is taken from the balance sheet for each year, summed up and subsequently divided by 2.

Average annual cost of working capital: formula for calculating the balance sheet

Comparing the initial and final values ​​that determine the value, an economist can draw conclusions about the growth or decrease in the amount of current assets in monetary terms for a given period, determine the relative values ​​characterizing the growth rates of indicators for each line of the second section of the balance sheet. However, the figures only provide information about the availability of property on a certain date, not always reflecting the real picture, since in the life of an enterprise the intensity of work is not the same, and this leads to uneven purchase and expenditure of working capital, for example, in companies that depend on the seasonality of cycles. It is more expedient to analyze the state of assets for short periods of time, or to calculate such an indicator as the average annual cost of working capital. The value of this indicator is calculated for the production of many economic calculations.

The company's assets are value expression resources for the production process. IN Property Complex the company includes non-current assets (administrative and industrial buildings, equipment, machine tools, vehicles), as well as working capital, in the structure of which there are such types of property as:

Average annual asset value

The company's assets are the resources, expressed in value, that support the production process. These include non-current assets (buildings, structures, work equipment, machinery, vehicles, as well as goodwill, software products, which are intangible assets) and current, i.e. cash on hand and in bank accounts, inventories, debts of debtors, short-term investments and others. Our publication is devoted to such a concept as balance asset value. Where to look in the balance sheet, as well as find out how the book value and average annual value of assets are calculated is the topic of this article.

Required book value of assets , first of all, when analyzing the financial activities of the company - the main tool for assessing the production financial condition firms. Use this indicator when calculating intracompany values:

How to calculate return on assets

The indicator can be calculated using other calculation methods. It should be noted that the formula for return on assets on the balance sheet excludes the debts of the founders in authorized capital and cash that was spent on the acquisition of shares from shareholders.

If the entrepreneur does not know the average value of the summed assets of the company, he can still calculate it himself. To perform the action, you need to add up the cost of all enterprise resources at the beginning and end of the period. The result obtained must be divided by 2.

What is the formula for calculating the return on assets of an enterprise

The total cost (TC) can be found by adding up all the costs of the enterprise: materials, components, wages workers and administrative staff, depreciation deductions, costs for public utilities, security and safety, general workshop and general factory expenses, etc.

In the financial and economic analysis of an enterprise, there are two main groups - absolute and relative indicators. TO absolute indicators include revenue, sales volume and profit. Analysis of these indicators does not allow for a comprehensive assessment economic activity enterprises.

Return on Assets: Basic Calculation Approaches and Professional Interpretation

• VnAsr- price outside current assets(average annual) - p. 190 (“Total” in Section I)
• ObAsr- the cost of current assets (average annual) - p. 290 ("Total" in Section II) For small enterprises, the corresponding indicators are calculated differently:
• VnAsr- the cost of non-current assets is equal to the sum of lines 1150 and lines 1170;
• ObAsr- the cost of current assets is equal to the sum of line 1210, line 1250 and line 1230.

Although the name of one or another indicator used in the financial statements in Russia is identical to the name of the indicator according to international standards, their meaning can be interpreted in different ways. So, depreciation deductions are deducted from gross profit, according to Western standards - no.

Online journal for an accountant

At the end of winter and the beginning of spring, all organizations are actively preparing financial statements for 2020. Let's talk about one of the key indicators of any enterprise - book value of assets. Where can I see it in balance? for 2020 and how it will help.

Any specialist who has ever dealt with accounting knows the words “balance sheet” and “organizational assets”. If you explain their meaning in plain language, then it turns out that book value of assets- this is a certain number of means and benefits that can be expressed in monetary terms.

Return on assets (ROA)

Return on assets refers to the group of coefficients "Profitability". The group shows the effectiveness of cash management in the enterprise. We will consider the return on assets (ROA) ratio, which shows how much money is accounted for per unit of assets a company has. What are enterprise assets? More in simple words This is his property and his money.

The standard for the return on assets, as well as for all profitability ratios Kra >0. If the value is less than zero, this is an occasion to seriously think about the efficiency of the enterprise. This will be caused by the fact that the company operates at a loss.

Return on current assets and its calculation formulas

Particular attention is often paid to the profitability of the company's assets. This percentage, which shows how the activity of the enterprise is profitable. In other words, the return on assets reflects the amount of income received from each ruble spent by the enterprise.

Such a concept as the profitability of current assets reflects the effectiveness of the production process. With its help, you can safely judge the nature of the implementation of economic and financial plans. An increase in the volume of production and sale of goods, the conquest of new sales markets, must be constantly guaranteed by working capital.

Asset turnover: calculation formula

The value of the resource efficiency indicator directly depends on the volume of sales. If there is a downward trend in the value of the coefficient, then this means that financial activities is on the decline. And, conversely, its increase suggests that sales volumes have grown, and capital turns around faster.

Analysis of the quality of work with debtors is based on the turnover ratio of receivables. It characterizes how quickly debtors pay for products provided on credit. The higher the indicator, the more effective the pricing policy is considered.

27 Jun 2018 384

Average asset value- this is the arithmetic average of the value of the company's assets at the beginning and end of the year.

The data is the balance sheet line 300 "Balance total".

Average asset value formula

Average asset value = (Asset value at the beginning of the year + Asset value at the end of the year) / 2

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When calculating some indicators of financial analysis, the average annual value of assets is required. Why can't you just use balance sheet data at the end of the period? You will find the answer in the article. In addition, you will learn how this value is calculated, where it is applied, and what of the company's property is never involved in its calculation.

The average annual value of assets on the balance sheet: how to calculate

This is one of the simplest indicators in financial analysis. To calculate it, you do not need to memorize complex formula. It all comes down to the rules of mathematics about calculating averages.

If you know the values ​​of two numbers, how do you find their arithmetic mean? The answer is obvious - add and divide by two. Now let's translate this simple rule into the language of balance lines, and we will get four formulas at once: both in general for the entire value of assets, and for individual components.

For which indicator is the calculation made? medium size	Formula with strings in balance sheet(BB)	What does the resulting value show
1 For assets	(1600 BB at the beginning of the year + 1600 BB at the end of the year) ÷ 2	The average balance valuation of the property of the enterprise, which is under its ownership
	1600 BB - BB currency
2 For non-current assets	(1100 BB at the beginning of the year + 1100 BB at the end of the year) ÷ 2	Average balance valuation of property with maturity exceeding 12 months
	1100 - the result of the I section of the BB
3 For current assets	(1200 BB at the beginning of the year + 1200 BB at the end of the year) ÷ 2	The average balance sheet value of property that is in the turnover of the enterprise for less than one year or the normal operating cycle of the enterprise
	1200 - the result of the II section of the BB
4 For net assets	[(1600 BB YTD – 1400 BB YTD – 1500 BB YTD + 1530 BB YTD) – (1600 BB YTD – 1400 BB YEAR – 1500 BB YEAR + 1530 BB YEAR)] ÷ 2	The average balance sheet value of the property of the enterprise, which was acquired exclusively at the expense of equity. Otherwise - "cleared" from the obligations of the company
	1400 - the result of the IV section of the BB, 1500 - the result of the V section of the BB, 1530 - deferred income

All formulas use the values ​​of indicators at the beginning of the year. Where can I get them, if in the balance of the usual commercial organization contains data only for 31 December? You can use simple rule from accounting: the final remainder of one day is initial balance next day.

• as of December 31, 2017 - equate to January 1, 2018. And this is the cost at the beginning of the analyzed year;
• as of December 31, 2018 - the value at the end of the analyzed year.

Pay attention to the order of the columns in the balance sheet. Beginning with financial statements for 2011, it is:

• the first column with numbers corresponds to the earliest date in time;
• middle column - the date that precedes the reporting date;
• the rightmost column is the latest date shown.

Thus, one balance sheet can be used to calculate average annual indicators for two years at once.

There is one very revealing technique. It is based on calculation average annual cost assets. The output is a conclusion about the type of development of your organization (extensive or intensive). Download the Excel file and simply substitute the numbers from your company's reporting.

How to calculate the average annual cost of non-current and current assets

Why Calculate Average Annual Asset Value

Here are two answers to this question.

First answer. The balance sheet shows a picture of the life of the enterprise in the moment, that is on a specific day and even for a specific hour. When you look at an asset, you see what property the company has on reporting date. Tomorrow the situation will definitely change:

• there will be new debts of counterparties, and part of the old debts will be paid off;
• new goods will be purchased, and those that were in stock will be written off due to sale, damage or shortage;
• the day of payment of salaries will come, and a cash outflow will form for this, etc.

If an analyst decides to smooth out all such jumps and understand what the average property valuation for a certain period is, then the indicator of the average annual value of assets will come to his aid.

It turns out that the first reason for the calculation is to level out fluctuations in the value of property, and on this basis to make a correct comparison for different years.

Second answer. Let's compare how the "headers" of the tables for the balance sheet and income statement look like.

The difference is obvious. All indicators of income, expenses and financial results, in contrast to balance sheet values, are calculated cumulative for a certain period. Revenue cannot be received as of December 31, 2019. It is formed for the whole year. Or, let's say, for a month, a quarter, a half-year.

What gives such understanding? The opportunity to realize, and therefore not to forget the rule: if in one calculation formula data from the balance sheet and the income statement are used simultaneously, the former are taken in the average annual value. If this is not done, then it will turn out that the analyst is trying to link together an instant (point) assessment with an assessment for the period. It is not correct.

Where is the average annual value of assets involved in financial analysis? For example, in the formulas of profitability and turnover, as well as in factor models. For convenience, we have collected some of these indicators and factor analysis formulas in the table. All of them relate, first of all, to the average annual value of assets in general. However, turnover and profitability are calculated in the same way for non-current, current and net assets.

Table 2 - Where the average annual value of assets comes in handy

Indicator/ratio
	Revenue ÷ Average annual asset value
	Net income ÷ Average annual asset value
3 Two- and three-factor dupont models	Return on Assets = Return on Sales × Asset Turnover
	Return on Equity = Return on Sales × Asset Turnover × Equity Multiplier
4 The Golden Rule of Business Economics	100% < Темп роста среднегодовой стоимости активов < Темп роста выручки < Темп роста чистой прибыли

Average annual asset value: all formulas

Other approaches to calculating the average value of assets per line in the balance sheet

The above formulas for calculating the average annual value of assets by lines in the balance sheet are the most common option. But what if you want to calculate a score over a period that is longer than one year? Or, for example, do you not like the fact that only data at the beginning and end of the year are taken to calculate the average annual value, and intermediate values ​​\u200b\u200bbetween these dates are not affected at all? After all, this directly affects the accuracy of the final indicator.

Obviously, judging average cost assets in a year for only two values ​​- it's like trying to get through to someone and knowing only two digits of his phone number.

In such cases, the chronological average formula for the moment series will help:

X - the average annual value of any indicator, including assets in general, as well as non-current, current and net assets;

n is the number of reporting dates for which the calculation is made.

For example, you decide to use one balance sheet to calculate the average annual value of assets (A) for two years at once - 2017 and 2018. Then the formula is interpreted as follows:

And if your organization forms a balance sheet on a monthly basis (in theory, it should be so), and you decide to calculate the average value of assets based on the data of all twelve months of the reporting year, then use the formula:

What information is not included in the asset balance

In reality, the average annual value of a firm's assets on the books of accounts is likely to be greater than what is shown on the balance sheet. How is this possible, if the balance is reduced by accounting accounts? The reason is the so-called regulatory accounts, which reduce the amounts on the balance lines. We will not go into the intricacies of accounting, but simply name what exactly does not fall into the balance sheet, and therefore does not form the average annual value of assets. This will be part of the cost:

1. Fixed assets and intangible assets, which corresponds to the depreciation accrued on them;
2. Materials, goods, finished products, for which a reserve has been created for the reduction in the value of material assets. Such a reserve is created when the reserves have hopelessly lost their original characteristics, become morally obsolete or have become much cheaper than the cost of acquisition;
3. Goods in organizations retail when they are taken into account selling prices. We are talking about the part of the cost that is formed by the trade margin. The margin is the unearned income of the enterprise from the future sale of these goods. It is precisely because of his “unearned” that he is excluded from the asset;
4. Accounts receivable in the amount of the allowance for doubtful debts. If the receivable contains debts that have expired, there is no security and there is a high probability of default, then a reserve is created. Its value is excluded from the balance sheet, and, therefore, from the average annual value of assets. This is done so that users financial reporting enterprises saw the assessment of funds in the calculations as close to reality as possible. That is, their value, which is really expected by the organization to be received in the near future and in which there are no bad debts.

How to find the average annual value of assets - an example

The calculation of the average annual value of assets is usually not difficult. At the same time, it underlies a rather interesting and at the same time simple methodology for determining the type of enterprise development. Let's see how it is implemented in practice. To do this, you need to calculate:

• average annual value of assets;
• average annual value of net assets;
• their turnover and profitability.

Calculations are based on data from the balance sheet and income statement of PJSC Saratov Oil Refinery (Refinery) for 2018.

Table 3 - Excerpt from the balance sheet, million rubles

Table 4 - Extract from the statement of financial results (OFR), million rubles.

Table 5 - Calculated indicators

Index			Growth rate, units
5.1 Average annual value of assets, million rubles (arithmetic mean of row 3.1 by years)
5.2 Average annual value of net assets, million rubles (arithmetic mean of the values ​​over the years that are obtained as [line 3.1 - line 3.2 - line 3.3 + line 3.4])
5.3 Asset turnover, turnover (line 4.1 ÷ line 5.1)
5.4 Turnover of net assets, turnover (line 4.1 ÷ line 5.2)
5.5 Return on assets, r./r. (line 4.2 ÷ line 5.1)
5.6 Return on net assets, r./r. (line 4.2 ÷ line 5.2)
5.7 Geometric mean for turnover change, units. (square root of the product of rows 5.3 and 5.4 over column 4)
	√(1.029 × 1.010)
5.8 Geometric mean for the change in profitability, units. (square root of the product of rows 5.5 and 5.6 over column 4)
	√(1.299 × 1.275)
5.9 Coefficient of extensiveness, % ([line 5.7 - 1] ÷ [line 5.8 - 1] × 100)
5.10 Intensity factor, % (100 - line 5.9)

Conclusions:

• an increase in the average annual value of assets is always a good sign, which indicates that the company is not “eating away” its capital, but, on the contrary, is increasing it;
• Comparison of the growth rate of the average annual value of assets (110.8%) with the growth rate of revenue (114.0%) gives another signal about the development of the enterprise. This is so because every ruble that is invested in assets provides the organization with an increase in income in the amount of more than one ruble;
• increase in the average annual cost of net PJSC assets Saratov Refinery (12.9%) exceeds the increase in property (10.8%). This means that the share of the organization's liabilities is reduced, and the share of equity capital is growing, because net assets are formed exclusively at the expense of own sources. All this is an indicator of strengthening financial stability;
• the average growth rate for asset turnover and net assets is 101.9%, and for profitability - 128.7%. That is, the increase in profit per ruble of property exceeds the increase in income by the same amount. This situation is very desirable for any company. It means that costs either decrease or grow more slowly than revenues, as in the case of the Saratov Refinery;
• the ratio of factors of extensive and intensive development in the enterprise's activities is 6.7% to 93.3%. And this is also a very positive thing. It turns out that although new resources are involved in the turnover of the enterprise, business growth is determined mainly not by this, but by an increase in the quality of their use.

Important: when, as a result of calculations, you get a negative value of the extensiveness coefficient. This happens when profitability decreases against the background of an increase in turnover. How to interpret such a situation? How extremely negative. In this case, do not be confused by the significant value of the intensity factor, which, at the same time, will also exceed 100%. Remember that this technique has a similar distortion. The general rule for its use is as follows: both coefficients should ideally be positive, and the intensity value should be at least 50%.