Amount of accounts receivable formula. Accounts receivable turnover ratios formula, turnover period. What is a "short-term debt ratio"
Accounts receivable turnover calculation
The definition of "accounts receivable (AR)" means monetary obligations companies and individuals related to enterprises. For example, individual provided a service for the shipment of goods, and the payment has not yet passed.
In fact, remote sensing is accompanied by indirect financial costs in company profits. This is largely due to the fact that the company does not have cash, so they cannot be put into circulation.
Revolving accounts receivable is a coefficient that can characterize the relationship between companies and counterparties. The indicator reflects the rate of turnover of goods or services in financial capital.
economic sense
Turnover rate accounts receivable fully capable display indicators of change in remote sensing in a positive or negative direction.
goal is the ability to significantly increase the turnover rate, which can be achieved in several ways:
- increase in sales revenue;
- decrease in indicators of remote sensing for a certain period.
For this, it will suffice for early stage granting a loan to other firms to check them for financial stability.
Conditionally credit policy Companies can be divided into several types:
- conservative;
- moderate;
- aggressive.
In the first type, companies often seek to achieve the tightest control over their financial capital to minimize various risks. In the case of a moderate company policy, everything is built on the average risk of losing its capital.
The last type of policy implies the highest degree of risk of losing your loan funds. It differs by minimum requirements for borrowers and the absence of any checks.
The need for calculation
The indicator under consideration is used to find ways to significantly increase the company's profit (increase in profitability indicators).
The main user of this ratio is considered to be the management of the company, headed by commercial or CEO, sales manager and so on.
Formula
The formula for calculating the turnover rate of DZ is as follows:
DZ turnover ratio \u003d profit from sales / the average size accounts receivable
It is also worth taking into account the fact that the denominator displays the average size, which means that the company in without fail should take the DZ at the beginning of the reporting period and summarize it with the end, and then divide by 2.
The formula for calculating the indicator according to RAS is as follows:
DZ turnover ratio = line 2110 / (line 1230np. + 1230kp.) * 0.5, where
Np- display line 1230 at the beginning of the reporting period, Kp- display line 1230 at the end of the reporting period.
It is important to remember: the reporting period can be not only a calendar year, but also a month or a quarter. AT balance sheet the old model (used until 2011), the calculus formula looked like:
DZ turnover ratio = line 10 / (line 230 + line 240) * 0.5
To carry out all the necessary calculations for the turnover of remote control with minimal errors, it is necessary:
- leave in full the practice of applying profit indicators, which are cleared of the payment of indirect taxes (excise taxes, VAT, and so on), since the DZ most often includes these contributions;
- take into account that the profit from the sale is calculated only when the products are shipped, while payment will be made later.
Thanks to such nuances, it is possible to achieve the determination of the indicator with minimal errors or without them at all.
Standard value
For the turnover of remote control, as well as for a number of other coefficients that are used in the process of analyzing the stable operation of the company and the level of production, there are no strict standards, since they directly depend on the nuances and specifics of the field of work, including technological process each individual enterprise.
Often, to analyze the situation in production, companies use indicators of calculated coefficients for various time periods and compare their increase or decrease.
With indicators of increase, we can talk about a fast rate of turnover of DE, otherwise the opposite is true.
Despite the fact that the DZ turnover ratio is not provided for at the legislative level, specialists in economic sphere focus on indicators per unit. It is the most optimal, since it is able to determine not only the level of profitability, but also liquidity.
With indicators of the turnover ratio of DZ more than one- the company's partners have fully fulfilled all their debt obligations. In such a situation, it is considered that the production of the company is at the highest possible level, and cash arrived faster than the product was shipped.
Examples
Consider the calculation of the turnover rate on a specific example.
The tables provide information on the remote control and profit received quarterly in the period for 2015-2016:
Let's calculate the average debt indicators for each individual quarter, and then compare the results:
- for the 1st quarter of 2016, average= (debt Q4 2015 + debt for Q1 2016) / 2 = (600,000 + 500,000) / 2 = 550,000 rubles;
- for the 2nd quarter of 2016 \u003d (debt of the 1st quarter of 2016 + debt for the 2nd quarter of 2016) / 2 \u003d (500,000 + 650,000) / 2 \u003d 575,000 rubles;
- for the 3rd quarter of 2016 = (debt of the 2nd quarter of 2016 + debt for the 3rd quarter of 2016) / 2 = (650,000 + 400) = 525,000 rubles.
Based on the calculations, it is necessary to determine the turnover ratio of the DZ according to the following formula:
DZ turnover ratio \u003d profit / average
- for the 1st quarter of 2016 = 29,000 / 550,000 = 0.52;
- for the 2nd quarter of 2016 = 40,000 / 575,000 = 0.69;
- for the 3rd quarter of 2016 = 45,000 / 525,000 = 0.85.
Based on the results obtained, it can be concluded that the turnover of DZ is growing and may soon reach excellent indicators for the company.
Taking into account the fact that the absolute indicators remain at the same level, and the profit increases significantly, we can say that the increase in efficiency is achieved by increasing the volume of sales of goods. This allows us to talk about a well-constructed debt collection control policy and a high level of prevention of the fact of non-payment of funds.
Having determined the rate of repayment of debt obligations in days, you can easily calculate the average period that a company needs to collect debts from its debtors.
Consider how it will be possible to determine the turnover period of DZ:
DZ turnover period = 360 / DZ turnover ratio
Due to the fact that in the example under consideration the information is quarterly, then in the formula it becomes necessary to use the total number of days that fully correspond to the period under study:
- term for the 1st quarter of 2016 = 91 / 0.52 = 175 days;
- term for the 2nd quarter of 2016 = 91 / 0.69 = 131 days;
- term for the 3rd quarter of 2016 = 92 / 0.85 = 108 days.
Can do findings: according to a study of the results obtained, the consumer/purchasing capacity of counterparties of enterprises has increased significantly - in the first quarter, the DZ was repaid for 175 days, in the second - 131 days, in the third - only 108 days.
Turnover analysis
One of the indicators, without which it is impossible to calculate the turnover of receivables, is considered to be the period of turnover or collection. The formula for its calculation was discussed above.
To be able to determine the effectiveness of the labor activity of individual employees, or structural unit in general, the actual coefficients are subject to comparison with the standards.
To calculate how the labor activity of workers could affect the production process of the entire company as a whole is possible by calculating the deviation from the norm, which, accordingly, requires careful decomposition into the nuances that affect.
One of these nuances is considered to be average wage per year.
To calculate the average annual wage (AGDZ), you should:
- sum up the residual size of the DZ before the beginning and at the end of the reporting period;
- Divide your result by 2.
The definition formula looks like:
Average salary = (DZ at the beginning of the period + DZ at the end of the reporting period) / 2
The residual amount of the DZ at the end of the reporting period will directly depend on the amount of the balance at the beginning and the profit received throughout the entire period, including other income.
In fact, the following factors can have a significant impact on the turnover period:
- DZ at the beginning of the reporting period;
- financial receipts throughout the period;
- the amount of accrued profit for the entire reporting period;
- the total number of days in reporting period.
You can make an actual analysis of the turnover of DZ by applying the following formula:
- the numerator contains the actual indicator of the period of turnover of the DZ, multiplied by the private total number of days in the period (CA) and the actual profit received;
- in the denominator is displayed target the period of turnover of the DZ, which is multiplied by the private total number of days in the reporting period (CA) and the planned profit.
The definition of HWRR and HWRR means the actual and planned annual profit from the sale of any goods or services. In simple words, the actual and planned ratio of the period of turnover of the DZ will be able to provide significant assistance in determining the DZ on the fact of the divided profit on the fact to the planned one.
This ratio of actual and planned profit is final score. In the future, the turnover may be affected by a factor that decomposes the average available DZ coefficients that were formed in the company after the fact, but which were previously planned.
The planned profit may not always correspond to the established standard, which was developed for the turnover of remote sensing.
In the process of conducting the analysis, it will be necessary to deviate the actual indicators of the design estimate from the planned ones conditionally divided by several components:
- deviation in fact from the established plan;
- deviation of the planned from the established norm.
Thanks to this, it will be possible to carry out the necessary analysis without making any mistakes in it.
Source: http://znaybiz.ru/predprinimatelskaya-deyatelnost/kontragenty/zadolzhennosti/oborachivaemost-debitorskoj.html
Accounts receivable turnover: formula
Indicates the period for which the debt of buyers for the delivered goods is repaid. This indicator, among others, characterizes financial stability companies.
Why is the accounts receivable turnover ratio calculated?
The indicator is used to conduct a financial analysis of the company's stability in a market competitive environment. Calculated coefficient receivables turnover will show how effectively the company collects debts for delivered goods.
A decrease in the coefficient may indicate that:
- The company increased the share of insolvent buyers.
- The company decided to pursue a softer policy with customers in order to gain a greater market share by providing longer payment deferrals to its customers. Accordingly, the lower the specified ratio, the higher the company's need for working capital, which is necessary to increase sales.
To calculate the coefficient receivables turnover can be used simple formula, which looks like this:
Kob \u003d Op / DZsg,
Cob - debt turnover ratio of debtors;
Op - sales volume at the end of the year (sales proceeds);
DZsg - the average annual debt of debtors.
To determine the average annual DZ, the following formula is used:
DZsg = (DZng + DZkg) / 2,
DZng - debt as of the beginning of the year;
DZkg - debt as of the end of the year.
You can learn about the procedure for keeping records of receivables from our article "Keeping records of receivables and payables".
The period of turnover of receivables is defined as the ratio of "receivables" to revenue
Calculating how fast it will happen repayment of receivables in days, you can determine the average period required for the company to recover debts from buyers. To calculate it, the formula is used receivables turnover, which looks like this:
Psb \u003d DZsg / Op × Dn,
Psb - debt collection period;
Days - the number of days in billing period. If the calculation is made for a year, then Dn will be equal to 365.
As a result, the period receivables turnover is defined as the ratio of the amount of the average annual "receivables" to the volume of revenue. If the term repayment of receivables it is required to calculate in daily terms, then the number of them in the calculation period is added to the denominator.
How to determine the period of receivables turnover without errors?
- leave the practice of using the value of revenue cleared of paying indirect taxes (excise taxes, VAT), since the receivable, as a rule, contains these indirect taxes;
- take into account that sales revenue is calculated when the product is shipped, while payment for it is made later.
For more information on accounting for sales revenue, see our article “How is revenue reflected in the balance sheet?”.
How to analyze
Accounts receivable turnover(value in days) shows the average duration of the payment deferral that the company offers to its customers-buyers.
Than the value receivables turnover less, the more efficiently the company's capital works, since funds are released for new investments faster. If used for turnover borrowed funds, then reducing the period of use of these funds makes them cheaper.
Without calculation receivables turnover the company will not be able to build its own credit policy for working with customers. The decision to grant a deferred payment and its duration should be made taking into account all information about financial condition company and its strategic plans.
After analyzing its own resources / capabilities, and comparing them with its goals, the company determines the maximum and minimum limits for the possible deferment of payment by buyers. This value will subsequently be used when concluding transactions with them. Thus, it is possible to significantly reduce the time repayment of accounts receivable debt.
Source: http://nalog-nalog.ru/analiz_hozyajstvennoj_deyatelnosti_ahd/oborachivaemost_debitorskoj_zadolzhennosti_formula/
The receivables turnover ratio in most economic literature is denoted as RT from the English name ReceivablesTurnover and refers to financial indicators business activity, which include many terms and definitions.
Keep in mind the difference between turnover and its coefficient.
The receivables turnover shows the rate of repayment of the debt, and after what time the company will receive cash for the services provided or the goods sold.
And the turnover ratio is calculated by the company in order to know the effectiveness of cooperation with its customers and the number of payments made by them for a certain reporting period, for example, a year.
Capital turnover affects the solvency, as well as the production and technical potential of the company. But a more detailed picture of the active work of the enterprise is given by the calculation of the turnover of fixed assets, which represent the return on assets.
Part working capital includes:
- cash;
- short-term accounts receivable;
- productive reserves;
- various short-term investments;
With the help of such an indicator, it is possible to determine the effectiveness of the use production assets companies for any reporting period. It can be calculated by dividing revenue by average value fixed assets.
Accounts receivable is a certain amount of debts of other enterprises, firms, contractors or citizens to a certain company.
Such debtors, in accordance with international and Russian financial reporting standards, are called debtors.
Debt arises when services are rendered to customers, work is performed and goods are sold, but money is not received. Her in accounting considered to be current assets.
Quite a few important indicator is the maturity or period of turnover of receivables, this is the number of days that is provided to the debtor to pay off the debt for the products issued to him.
Maturity may be determined by dividing the amount of debtors by the average daily sales proceeds.
To calculate the ratio, the average accounts receivable is used, which shows the average annual value of the debt and is calculated by dividing the debt at the beginning of the year by its final value.
How to calculate the turnover ratio
One of the indicators of the liquidity of the enterprise is the turnover ratio of receivables. To calculate it, you must have a balance sheet, profit and loss statements, as well as other financial statements of the company, which can be taken from the official websites of any enterprise.
Kodz = Vreal / Ccdz.
Where, Kodz- receivables turnover ratio,
Vreal- revenues from sales,
Ccdz- the average amount of accounts receivable.
A decrease in the ratio encourages the company to increase working capital, and in case of a shortage own funds have to take out a loan.
Where, optic nerve- accounts receivable at the beginning of the year,
DZk- Accounts receivable at the end of the year.
Where, T- the number of days in the reporting period.
In addition to the value of the debt ratio, the indicator of the period of receivables turnover is of interest to the enterprise. It shows how long it will take to turn the debt into cash, namely, to determine the number of days for which the day will be credited to the current account, and is calculated as follows:
Podz = 360 / Code.
In some cases, not 360, but 365 days are used.
Calculation example
Omega Company presents data on current assets of four quarters for 2012-2013.
Calculation of Cdz for the first quarter of 2013:
Ccdz (2013 - 1) = 121232600 + 99565899 / 2,
Ccdz (2013 - 1) = 220798499 / 2,
Ccdz (2013 - 1) = 110399249.5 rubles.
Calculation of Ccd for the second quarter of 2013:
Ccdz (2013 - 2) = 99565899 + 97678988 / 2,
Ccdz (2013 - 2) = 197244887 / 2,
Ccdz (2013 - 2) = 98622443.5 rubles.
Calculation of Cdz for the third quarter of 2013:
Ccdz (2013 - 3) = 97678988 + 106666721 / 2,
Ccdz (2013 - 3) = 204345709 / 2,
Ccdz (2013 - 3) = 102172854.5 rubles.
Based on the calculations, it is possible to determine the turnover ratio of accounts receivable using the formula Kodz = Vreal / Cdz.
Taking into account four reporting quarters, three coefficients will be obtained, with the help of which the diagnostics of the enterprise will be detailed. It should be remembered that when obtaining the coefficient, it is not allowed to reduce the value upwards. Only two values after the decimal point need to be taken into account.
Kodz calculation based on the first quarter of 2013:
Kodz (2013 - 1) = 79465987 / 110399249.5,
Kodz (2013 - 1) = 0.71.
Kodz calculation based on the second quarter of 2013:
Kodz (2013 - 2) = 160564465 / 98622443.5,
Kodz (2013 - 2) = 1.62.
Kodz calculation based on the third quarter of 2013:
Kodzu (2013 - 3) = 229465900 / 102172854.5,
Kodz (2013 - 3) = 2.24.
From the data obtained, it can be concluded that the company "Omega" for the reporting period from 2012 to 2013, the efficiency of operations has increased. This trend is associated with an increase in revenue from services rendered or product sales.
An increase in the coefficient indicates the correct policy of collecting payments from customers for the goods or services provided, but a decrease in the value indicates the insolvency of other companies, and problems with sales or the provision of services.
You should also find the values of receivables turnover using the formula Odz \u003d (Ccdz / Vreal) * T.
Odz (2013 - 1) = (110399249.5 / 79465987) * 90,
Odz (2013 - 1) = 125 days.
Odz (2013 - 2) = (98622443.5 / 160 564 465) * 91,
Odz (2013 - 2) = 56 days.
Odz (2013 - 3) = (102172854.5 / 229 465 900) * 92,
Odz (2013 - 3) = 41 days.
From the above calculations, we can conclude that in the first quarter of 2013, receivables will not be repaid on time, as evidenced by the turnover ratio. In the future, the situation improves and customers began to repay their debts in a timely manner.
The period of revolutions can be calculated using the formula Podz \u003d 360 / Kodz. Since the example contains quarterly data, to find the correct value of Podz, Kodz should be multiplied by 4, in the case of calculating the turnover period for half a year, the coefficient is multiplied by 2, and for a month by 12.
Podz (2013 - 1) = 360 / (0.71 * 4),
Podz (2013 - 1) = 126 days.
Podz (2013 - 2) = 360 / (1.62 * 4),
Podz (2013 - 2) = 56 days.
Podz (2013 - 3) = 360 / (2.24 * 4),
Podz (2013 - 3) = 40 days.
Analyzing the performed calculations, it should be noted that purchasing power The number of customers has increased as back in the first quarter there was a very slow repayment of debts and the company will have to wait a long time to withdraw the money invested.Content goes here
What does the ratio show?
If this coefficient is greater than or equal to one, then the enterprise is profitable.
The value of the indicator is associated with:
- Employee qualifications.
- The duration and pace of the production cycle.
- The type of activity of the enterprise.
And also it shows:
- Usage efficiency financial resources from the sale of goods or the provision of services.
- Reflects the expedient activity of the enterprise in case of obtaining a bank loan.
- Receipt speed monetary units for services rendered or goods sold.
- The intensity of debt repayment;
- The absence or presence of problems with the sale of products.
The normal value of the coefficient
The value of the coefficients, in fact, do not have clear parameters and standards, since they are dependent on various factors, for example, the characteristics of industry activities, types of products and production technologies.
But one rule still exists, if the coefficient is higher than one, this indicates that buyers are fulfilling their obligations to the manufacturer of the product.
Coefficient growth
An increase in the indicator indicates that buyers or customers make payments on time and repay their debts. The increase in the coefficient directly depends on the enterprise, namely on the credit policy and the system of control over the implementation of payment.
It also shows the payout trend commercial loan as a result of well-adjusted management of receivables turnover. Control over the acceleration of turnover is the main task for the company at any stage of development. For example, at the stage of creating stocks of production, their circulation, completed and work in progress.
It should be taken into account the fact that in the conditions of too strict debt control policy, there is a significant loss of customers. And too lenient contract terms will lead to shortages current assets and reduced control over debt payments.
Decrease in the turnover ratio of receivables
The decline in the ratio reflects:
- A large number of insolvent debtors.
- Certain problems with the sale of products.
- Too soft policy of relations with buyers or other contractors.
- A policy aimed at expanding the sales market.
Accounts receivable management
Accounts receivable management is, first of all, an enterprise asset, which is a competent policy of planning and control over the process of disposable funds turnover. It is carried out with the help of certain calculations. accounting.
The higher the turnover rate, the more positive will be the dynamics of the enterprise. And also there will be an opportunity to be a leader in the market of goods or services, and to establish their own rules that relate to payment for products.
The main task of management is to establish business relations with the client, namely those that will ensure timely and full repayment debts from contractors.
The accounts receivable turnover ratio is not a simple accounting indicator. Its meaning contains data with the help of which an enterprise can plan its activities, monitor the results of the production process.
Source: http://corphunter.ru/ooo/otchetnost/koefficient-zadolzhennosti.html
Accounts receivable turnover ratio: how to calculate and apply in practice
Any company, whether it is a small business of a novice entrepreneur or a well-established organization, cannot do without such an economically justified asset as receivables.
What it means and how it affects the work of the enterprise as a whole is the topic of our article.
Let's find out how to determine the receivables turnover ratio and analyze the production situation based on the calculations.
Definition
It is customary to call receivables the debt of buyer companies for purchased services or goods or their own employees who are accountable persons and have sums of money issued for various production purposes - the purchase of materials, transportation costs, other production needs. In economic language, all of the listed counterparties, one way or another interacting with the organization, are called debtors.
Often the survival or successful functioning of an enterprise depends on the speed of repayment of these debts by counterparties. Therefore, these calculations are so important. The main calculated value is the receivables turnover ratio, which allows an economist to evaluate the effectiveness of working with buyers and determine the timing of debt repayment.
How to calculate the accounts receivable turnover ratio?
The formula is:
Kodz \u003d B / O cf,
where B is the revenue received in the analyzed period,
About cf - the average balance of debt in monetary terms.
Revenue figures are provided by financial statements, and the average balance is calculated as half of the addition of the opening and closing balance of the debt.
This calculation determines the receivables turnover ratio, expressed in the number of turnovers (or the number of times) of receiving payment from debtors in the amount of the average debt balance for the reporting period.
Calculation example
For the first quarter, sales income (revenue) in the company amounted to 12,000,000 rubles.
Let's determine the turnover ratio of receivables.
About cf \u003d (3000000 + 4500000) / 2 \u003d 3750000 rubles.
Kodz = 12000000 / 3750000 = 3.2 times the debt was covered.
Since analysis is always a comparison with similar past periods, in order to present the dynamics of production development, we will take information about the indicators for the first quarter of last year.
For example, the proceeds then amounted to 9,000,000 rubles, the balance of the debt at the beginning of the year was 2,300,000 rubles, and at the end of the quarter - 3,000,000 rubles.
Kodz \u003d 9000000 / (0.5 * (2300000 + 3000000)) \u003d 3.4 times the debt of debtors turned around for the quarter.
For an economist, a decrease in the coefficient by 0.2 (3.2 - 3.4 \u003d - 0.2) indicates trouble in the activities of the enterprise, but he will draw the final conclusions after a more detailed analysis of the functioning of the enterprise.
It must be remembered that clear standards are not defined for this indicator, since it big influence and the specifics of the organization, and industry features, and the technology of work production.
For example, in trade organizations that sell goods on credit, the debt of debtors is always high, and the amount of its return is small, while in production associations the picture changes dramatically.
But in any case, an increase in the receivables turnover ratio indicates a faster repayment of consumer debt.
The indicator in times helps in analyzing the activities of the organization, but complements the calculation picture, when as a result the amount of time in days during which debts remain unpaid is revealed. This calculation option is also widely used if you want to determine the receivables turnover ratio. The formula for this calculation for a yearly analysis is:
Codes/day = 365 / Codes
The value of days in a period is adjusted accordingly if another period is analyzed.
Example #2
Based on the data from the previous example, we get:
Kodz / day \u003d 90 days (number of days in a quarter) / 3.2 \u003d 28 days - it will be required to return debts in the 1st quarter of the current year.
Codes/day = 90 days. / 3.4 = 26.5 days – average terms of debt collection in the 1st quarter of the last year.
So, confirming the previous calculations, the receivables turnover ratio calculated by this method shows an increase by one and a half days (26.5 - 28 = 1.5) in the terms of collecting debts of counterparties in comparison with the previous period. Based on this information, the economist will continue the analytical research and draw the necessary conclusions.
Average accounts receivable for the period:
DZ s = (DZ n.p. + DZ k.p.) / 2
2. Accounts receivable turnover in days
ODZ (in days) = Average accounts receivable × t
Sales proceeds
ODZ = 360 days / RD turnover in turnovers
Where ODZ is the turnover of receivables;
t - reporting period in days.
3. The share of receivables in the total volume of current assets:
U dz = Receivables
Current assets × 100%
4. Share of doubtful accounts receivable in accounts receivable:
U sdz = × 100%
This indicator characterizes the "quality" of receivables - the upward trend indicates a decrease in liquidity.
Analysis of the turnover of receivables should be carried out in comparison with the previous reporting period.
To improve the accuracy of the analysis, it is possible, according to the data internal accounting in addition to the Explanations to the balance sheet, draw up a summary table in which receivables are classified by terms of formation. The monthly compilation of such a table will allow you to have a clear picture of the status of settlements with different debtors timely identify overdue debts.
TASK #21:
Analyze the composition, structure and dynamics of receivables.
Table 21. - Analysis of receivables.
Task number 22:
Analyze accounts receivable turnover.
Table 22. - Analysis of the turnover of receivables.
The methodology for analyzing accounts payable is similar to the methodology for analyzing receivables.
Based on the data of the relevant tables of explanations to the balance sheet, an analytical table is compiled in which the dynamics of accounts payable is assessed, the growth rate and deviation are calculated.
The state of accounts payable must be analyzed in comparison with accounts receivable. Their amounts must be in balance, the velocity of receivables must be higher, and the growth rate must be less than that of accounts payable. In the case of the predominance of the amount of receivables and a lower velocity of circulation compared to accounts payable, there is a shortage of means of payment.
TASK #23:
Analyze the composition, structure, dynamics and turnover of accounts payable.
Table 23 . - Analysis of accounts payable.
| Indicators | Last year | Reporting year | Deviation (+,-) |
| 1. Accounts payable, thousand rubles | |||
| 2. Short-term - total Incl. | |||
| 2.1. Settlements with suppliers and contractors % of the total | |||
| 2.2 Bills payable % of total | |||
| 2.3. Debt to subsidiaries and affiliates % of total | |||
| 2.4. Payroll debt % of the total | |||
| 2.5.Debt on social insurance and security % of the total | |||
| 2.6.Debt to the budget% of the total | |||
| 2.7.Advances received % of total | |||
| 2.8.Other creditors % of the total. | |||
| 3. Long-term-total Incl. | |||
| 3.1 Loans | |||
| 3.2 Loans |
LIST OF USED LITERATURE
1. Analysis of accounting ( financial reporting): educational-methodical complex / Ed. prof. L.M. Polkovsky. - M.: Finance and statistics, 2008.
2. Analysis of financial statements: textbook /L.V. Dontsova, N.A. Nikiforov. - 7th ed., revised. and additional - M .: Publishing house "Business and Service", 2009.
3. Kiryanova, Z.V. Analysis of financial statements: a textbook for bachelors / Kiryanova, Z.V., Sedova, E.I. - - 2nd ed.; correct And add.-M.: Yurayt, 2012.-428 p.
4. Pyatov, M.L. Analysis of financial statements: tutorial for university students studying in the direction of "Economics" / Pyatov, M.L.-M.: Accounting, 2011.-352 p.
5. Dontsova, L.V.: a textbook for university students studying in special. "Accounting, analysis and audit" / Dontsova, L.V., Nikiforova, N.A. - 7th ed.; revised And add.-M.: Business and Service, 2009.-384 p.
6. Smekalov, P.V. Analysis of financial statements: textbook / Smekalov, P.V., Badmaeva D.G., Smolyaninov N.V. - St. Petersburg: Prospekt Nauki, 2009.-472 p.
7. Analysis of financial statements. 2nd ed., Spanish. and additional Textbook for bachelors. Kiryanova Z.V., Sedova E.I. 2014, EBS URAIT: (Electronic resource) access mode: http://www.urait.ru/
8. Suglobov A.E., Zharylgasova B.T. Analysis of financial statements: textbook. - 2nd ed. – M.: KNORUS, 2008.
9. Sheremet A.D., Negashev E.V. Methods of financial analysis of the activities of commercial organizations. - M.: INFRA - M, 2008.
Appendix 1
BALANCE SHEET
| ASSETS | Indicator code | At the beginning of the reporting period | At the end of the reporting period | |
| 1. NON-CURRENT ASSETS Intangible assets | ||||
| fixed assets | 33 196 | 35 531 | ||
| Construction in progress | 30 800 | 26 616 | ||
| Profitable investments in material values | - | - | ||
| Long term financial investments | ||||
| Deferred tax assets | - | - | ||
| Other fixed assets | - | - | ||
| TOTAL for section 1 | 64 720 | 62 926 | ||
| 2. CURRENT ASSETS Inventory | 1 460 | 2 984 | ||
| including: raw materials, materials and other similar values | 1 353 | 2 908 | ||
| animals for growing and fattening | - | |||
| work in progress costs | - | |||
| finished products and goods for resale | ||||
| goods shipped | - | - | ||
| future spending | ||||
| other inventories and expenses | - | - | ||
| Value added tax on acquired valuables | ||||
| Accounts receivable (for which payments are expected more than 12 months after reporting date) | - | - | ||
| - | - | |||
| Accounts receivable (payments for which are expected within 12 months after the reporting date) | 22 316 | 21 775 | ||
| including buyers and customers | 20 911 | 17 146 | ||
| Short-term financial investments | - | |||
| Cash | ||||
| Other current assets | - | - | ||
| TOTAL for section 2 | 24 125 | 25 852 | ||
| BALANCE | 88 845 | 88 778 | ||
| LIABILITY | Indicator code | At the beginning of the reporting period | At the end of the reporting period | |
| 2. CAPITAL AND RESERVES Authorized capital | ||||
| Own shares purchased from shareholders | (-) | (-) | ||
| Extra capital | 62 832 | 59 827 | ||
| Reserve capital | ||||
| including: reserves formed in accordance with the law | - | - | ||
| reserves formed in accordance with constituent documents | ||||
| Undestributed profits(unruly loss) | - | |||
| TOTAL for Section 3 | 63 279 | 61 947 | ||
| 4. LONG-TERM LIABILITIES Loans and credits | - | - | ||
| Deferred tax liability | - | - | ||
| Other long-term liabilities | - | - | ||
| TOTAL for Section 4 | - | - | ||
| 5. CURRENT LIABILITIES Loans and credits | - | |||
| Accounts payable | 24 237 | 26 416 | ||
| including: suppliers and contractors | 6 785 | 6 926 | ||
| debt to the staff of the organization | ||||
| debt to government off-budget funds | ||||
| debt on taxes and fees | 8 913 | 3 075 | ||
| other creditors | 8 092 | 16 000 | ||
| Debt to the participants (founders) for the payment of income | ||||
| revenue of the future periods | ||||
| reserves upcoming expenses | - | - | ||
| Other current liabilities | - | |||
| TOTAL for Section 5 | 23 566 | 26 831 | ||
| BALANCE | 88 845 | 88 778 | ||
The coefficient is equal to the ratio of the proceeds received from the sale of products to the average balance of all receivables. The initial data for the calculation is the balance sheet.
Accounts receivable turnover ratio is calculated in the FinEcAnalysis program in the Business Activity Analysis block as the Turnover Ratio in Settlements (for all receivables).
Accounts receivable turnover ratio - what shows
Accounts receivable turnover ratio shows how many times, on average, during the year, accounts receivable turned into cash.
Accounts receivable turnover ratio - formula
The general formula for calculating the coefficient:
Calculation formula according to the balance sheet data:
| K odz = | p.010 |
| 0.5 * (p. 230 ng + p. 230 kg + p. 240 ng + p. 240 kg) |
where line 010 ng, line 230 ng - the beginning of the year, line 230 kg, line 240 ng - the beginning of the year, line 240 kg - the end of the year of the income statement (form No. 2).
Accounts receivable turnover ratio - value
The high turnover of receivables reflects the improvement in the payment discipline of buyers (and other counterparties) - buyers repay their debts to the enterprise on time and (or) sales with deferred payment (commercial credit to buyers) are falling.
The dynamics of this indicator depends on the credit policy of the enterprise and control over the timely receipt of payment.
The turnover of receivables is estimated together with the turnover of accounts payable. The situation is favorable for the company when the turnover ratio of receivables is greater than the turnover ratio of accounts payable.
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Synonyms
More found about the accounts receivable turnover ratio
- Factors affecting the turnover of receivables This work is devoted to identifying factors affecting turnover Accounts Receivable Ratio turnover accounts receivable is an efficiency ratio that measures how quickly and efficiently a company
- The specifics of the assessment of receivables and payables of the enterprise Calculation of the coefficient turnover receivables according to the formula Kobdz VR DZ where VR is the sales proceeds
- Accounts receivable turnover ratio DR DZ where K o d coefficient turnover accounts receivable DR income from sales of products works services DZ average accounts receivable
- Analysis of the receivables of a commercial organization Accounts receivable with a maturity of more than 12 months occupies an insignificant part of the total receivables. However, its share in the period under review increased from 6.7% as of January 1, 2013 ... The higher the ratio turnover the balance of receivables for a given volume of sales of goods, the shorter financial cycle organizations
- Problems of increasing the turnover of receivables of the enterprise Decrease in the coefficient turnover accounts payable may indicate a more efficient organization of relationships with security providers with a more favorable payment schedule, as well as the use of accounts payable as a source of obtaining cheap financial resources Coefficient turnover accounts receivable in 2010 is 67.5. In 2011, the ratio decreased by
- Financial analysis of the enterprise - part 4 Based on formula 1.16, we calculate the coefficient turnover accounts receivable Odz 103444.2 2.57 51529.8 29030.0 2 Odz 114363.2 5.68 29030.0 11171.0
- Financial analysis of the enterprise - part 2 Ratio turnover accounts receivable ratio turnover settlement In progress economic activity the company provides trade credit for
- Management of receivables and payables in order to accelerate the turnover of working capital of construction organizations Z V DZ where Kob DZ - coefficient turnover receivables B - sales revenue thousand rubles DZ - average balances
- Indicators of business activity of Elan-95 LLC Coefficient turnover inventory turnover 10.2 9.4 8.1 8.3 8.9 8.7 10 11.4 12.2 Coefficient turnover accounts receivable turnover 20 20.7 60.2 84.5 39.1 17.8 16.7 34.9 64.4 Ratio
- Valuation of shares and value of commercial organizations based on the new financial reporting model For example, the amount of accounts receivable is found by dividing sales revenue by the coefficient turnover accounts receivable in 2011, the projected amount of accounts receivable is 982,941 rubles
- Accounts receivable turnover period turnover turnover receivables - value The longer the period of repayment of receivables
- The duration of the turnover of receivables Kodz where Kodz is the coefficient turnover receivables Duration of receivables turnover - value The longer the period of repayment of receivables
- Evaluation of the business activity of an enterprise based on asset turnover indicators turnover accounts receivable shows the rate of turnover of accounts receivable Coefficient turnover accounts receivable Revenue Average annual amount of accounts receivable Kobdz 72209 10296 7.013 2014
- Management of receivables and payables: the practice of applying discounts and offsets Accounts receivable thousand rubles 1345 672.5 672.5 Ratio turnover accounts receivable 18.04 36.8 18.04 Accounts receivable repayment period days 19.96 9.98 -9.98
- Impact on the assessment of the solvency of enterprises of the results of the analysis of the quality of receivables In 2014, compared to 2013, there is a slight acceleration turnover accounts receivable for 6.44 days, which has a positive effect on the financial condition of the enterprise Coefficient turnover accounts receivable shows how many times receivables turned around during the reporting period
- Turnover period in calculations Kodz where Kodz - coefficient turnover accounts receivable Term turnover funds in settlements - value The longer the repayment period
- Analysis of financial statements. Practical analysis based on accounting (financial) statements Nevertheless, a significant increase in indicators requires identifying the reasons for this phenomenon, as this may indicate that the stock of this group of assets is insufficient for the organization's sustainable operation Coefficient turnover and the period of turnover in days of receivables reflect the average value of a commercial loan in
- Capital turnover management The company's losses from the inflation provision of receivables are increasing 5.1 Coefficient turnover funds in accounts receivable settlements for which payments are expected in more than 12
- Methodology for the analysis of current assets of a commercial organization Rn 10 where Odz - turnover in times coefficient turnover receivables Tdz - turnover in days average duration one turnover of receivables
- Accounts receivable management at enterprises Expediency of creating a reserve for doubtful debts as an alternative to the direct write-off of actually past due debt in that it allows you to compare income with expenses to avoid the actual overstatement of the amount of receivables and thereby embellish the current financial position company because receivables are working capital, the receipt of which is postponed indefinitely Coefficient turnover receivables KOdz is calculated as follows KOdz VR DZsr where VR revenue is the amount
An organization cannot function without money. The company's financial flows are, one might say, its circulatory system. Therefore, it is very important to ensure that they do not stay anywhere (except for savings accounts, of course). Otherwise, as in the situation with blood clots, negative consequences are possible.
The concept of the period of turnover and repayment of receivables
Consider the situation with delays in payment for products by buyers - the presence of receivables from the enterprise. On the one hand, in principle, there is money, but they do not participate in economic activities. On the other hand, it is inefficient to completely give up preferences and benefits to clients. An analysis of the turnover period of this debt will help you find the right solution.
Calculation formulas
The receivables turnover period, in other words, the repayment period, shows the average delay in payments provided by the seller or supplier to buyers, i.e., how long products remain unpaid. It is calculated by dividing the number of days in the estimated period by the value of the receivables turnover. The following formula applies:
DZ turnover period \u003d duration of the period / turnover of DZ,
where "DZ" - accounts receivable.
The turnover of "receivables" characterizes the speed of its return, that is, how quickly the company receives money for shipped goods, services rendered or work performed. It (or in a number of sources - its coefficient) is equal to the ratio of sales proceeds to the average volume of "receivables" for the analyzed period.
DZ turnover = B / ((DZ at the beginning of the period - DZ at the end of the period) / 2),
where "B" is the sales proceeds.
The coefficient makes it clear how many times during the estimated period the company received payment for goods sold or work performed (services rendered) in the amount of the average volume of "receivables". The estimated period can be a month, a quarter, a year.
The source of information for calculations is the balance sheet (accounts receivable data) and income statement or revenue.
In Western practice, a different technique is used:
- not the average value of receivables is used, but its amount at the end of the period;
- Doubtful accounts are deducted from the total receivables for the objectivity of the analysis.
The formula is:
DZ turnover \u003d (DZ - doubtful DZ) / V * 365 days
Significance in enterprise management
Evaluation of dynamics
AT financial analysis there are no clear standard values period of turnover and the receivables ratio, since they are very dependent on industry specifics. For example, in shipbuilding and aircraft building and food trade, their values will be radically different.
Attention is drawn to the dynamics of these indicators. A positive trend is considered to be an increase in the coefficient and a decrease in the period of turnover of accounts receivable. Such dynamics speaks of the fast terms of payment for products. Conversely, the longer the period of turnover, the higher the probability of non-return of receivables.
At the same time, strict control over the return of "receivables", failure to provide credit to buyers can scare off current and potential customers. Too soft policy, on the contrary, can lead to a weakening of payment discipline and a shortage of working capital.
And here a lot depends on the purpose of the organization and the stage of entering the market.
A positive trend is an increase in the coefficient and a decrease in the turnover period.
Types (options) of credit policy in relation to buyers
Thus, the main points of such a part of the credit policy of the enterprise as turnover and the period of repayment of receivables are considered. For a more complete analysis and making informed decisions, you will need the help of financiers and lawyers who will help assess the dynamics and nature of the "receivables" and try to recover its doubtful part or write off the completely overdue.
The definition of "accounts receivable (AR)" refers to the monetary obligations of companies and individuals related to enterprises. For example, an individual has provided a service for the shipment of goods, but the payment has not yet passed.
In fact, DZ is accompanied by indirect financial costs in the company's profits. This is largely due to the fact that the company does not have cash, so they cannot be put into circulation.
Revolving accounts receivable is a coefficient that can characterize the relationship between companies and counterparties. The indicator reflects the rate of turnover of goods or services in financial capital.
The accounts receivable turnover ratio is fully capable of display indicators of change in remote sensing in a positive or negative direction.
the main objective is the ability to significantly increase the turnover rate, which can be achieved in several ways:
- increase in sales revenue;
- decrease in indicators of remote sensing for a certain period.
To do this, it will be enough at an early stage of granting a loan to other firms to check them for financial stability.
Conventionally, the credit policy of the company can be divided into several types:
- conservative;
- moderate;
- aggressive.
In the first type, companies often strive to achieve the tightest control of their financial capital in order to minimize various risks. In the case of a moderate company policy, everything is built on the average risk of losing its capital.
The last type of policy implies the highest degree of risk of losing your credit funds. It differs by minimum requirements for borrowers and the absence of any checks.
The indicator under consideration is used to find ways to significantly increase the company's profit (increase in profitability indicators).
The main user of this coefficient is considered to be the management of the company, headed by the commercial or general director, the head of the sales department, and so on.
Formula
The formula for calculating the turnover rate of DZ is as follows:
DZ turnover ratio \u003d profit from sales / average receivables
It is also worth taking into account the fact that the denominator displays the average size, which means that the company must take the DZ at the beginning of the reporting period and sum it up with the end, and then divide by 2.
The formula for calculating the indicator according to RAS is as follows:
DZ turnover ratio = line 2110 / (line 1230np. + 1230kp.) * 0.5, where
Np- display line 1230 at the beginning of the reporting period, Kp- display line 1230 at the end of the reporting period.
It is important to remember: the reporting period can be not only a calendar year, but also a month or a quarter. In the old-style balance sheet (used until 2011), the calculation formula looked like this:
DZ turnover ratio = line 10 / (line 230 + line 240) * 0.5
Definition without errors
To carry out all the necessary calculations for the turnover of remote control with minimal errors, it is necessary:
- leave in full the practice of applying profit indicators, which are cleared of the payment of indirect taxes (excise taxes, VAT, and so on), since the DZ most often includes these contributions;
- take into account that the profit from the sale is calculated only when the products are shipped, while payment will be made later.
Thanks to such nuances, it is possible to achieve the determination of the indicator with minimal errors or without them at all.
For the turnover of remote control, as well as for a number of other coefficients that are used in the process of analyzing the stable operation of the company and the level of production, there are no strict standards, since they directly depend on the nuances and specifics of the field of work, including the technological process of each individual enterprise.
Often, to analyze the situation in production, companies use indicators of calculated coefficients for various time periods and compare their increase or decrease.
With indicators of increase, we can talk about a fast rate of turnover of DE, otherwise the opposite is true.
Despite the fact that the DZ turnover ratio is not provided for at the legislative level, experts in the economic sphere are guided by indicators per unit. It is the most optimal, since it is able to determine not only the level of profitability, but also liquidity.
With indicators of the turnover ratio of DZ more than one— the partners of the company have fully fulfilled all their debt obligations. In such a situation, it is considered that the company's production is at the highest level, and the funds are received faster than the products were shipped.
Examples
Consider the calculation of the turnover rate on a specific example.
The tables provide information on the remote control and profit received quarterly in the period for 2015-2016:
Let's calculate the average debt indicators for each individual quarter, and then compare the results:
- for the 1st quarter of 2016, the average = (debt of the 4th quarter of 2015 + debt for the 1st quarter of 2016) / 2 = (600,000 + 500,000) / 2 = 550,000 rubles;
- for the 2nd quarter of 2016 \u003d (debt of the 1st quarter of 2016 + debt for the 2nd quarter of 2016) / 2 \u003d (500,000 + 650,000) / 2 \u003d 575,000 rubles;
- for the 3rd quarter of 2016 = (debt of the 2nd quarter of 2016 + debt for the 3rd quarter of 2016) / 2 = (650,000 + 400) = 525,000 rubles.
Based on the calculations, it is necessary to determine the turnover ratio of the DZ according to the following formula:
DZ turnover ratio \u003d profit / average
- for the 1st quarter of 2016 = 29,000 / 550,000 = 0.52;
- for the 2nd quarter of 2016 = 40,000 / 575,000 = 0.69;
- for the 3rd quarter of 2016 = 45,000 / 525,000 = 0.85.
Based on the results obtained, it can be concluded that the turnover of DZ is growing and may soon reach excellent indicators for the company.
Taking into account the fact that the absolute indicators remain at the same level, and the profit increases significantly, we can say that the increase in efficiency is achieved by increasing the volume of sales of goods. This allows us to talk about a well-constructed debt collection control policy and a high level of prevention of the fact of non-payment of funds.
Term
Having determined the rate of repayment of debt obligations in days, you can easily calculate the average period that a company needs to collect debts from its debtors.
Consider how it will be possible to determine the turnover period of DZ:
DZ turnover period = 360 / DZ turnover ratio
Due to the fact that in the example under consideration the information is quarterly, then in the formula it becomes necessary to use the total number of days that fully correspond to the period under study:
- term for the 1st quarter of 2016 = 91 / 0.52 = 175 days;
- term for the 2nd quarter of 2016 = 91 / 0.69 = 131 days;
- term for the 3rd quarter of 2016 = 92 / 0.85 = 108 days.
Can do findings: according to a study of the results obtained, the consumer/purchasing capacity of counterparties of enterprises has increased significantly - in the first quarter, the DZ was repaid for 175 days, in the second - 131 days, in the third - only 108 days.
One of the indicators, without which it is impossible to calculate the turnover of receivables, is considered to be the period of turnover or collection. The formula for its calculation was discussed above.
In order to be able to determine the effectiveness of the labor activity of individual employees or a structural unit as a whole, the actual coefficients are subject to comparison with the standards.
To calculate how the labor activity of workers could affect the production process of the entire company as a whole is possible by calculating the deviation from the norm, which, accordingly, requires careful decomposition into the nuances that affect.
One of these nuances is considered to be average salary per year.
To calculate the average annual wage (AGDZ), you should:
- sum up the residual size of the DZ before the beginning and at the end of the reporting period;
- Divide your result by 2.
The definition formula looks like:
Average salary = (DZ at the beginning of the period + DZ at the end of the reporting period) / 2
The residual amount of the DZ at the end of the reporting period will directly depend on the amount of the balance at the beginning and the profit received throughout the entire period, including other income.
In fact, the following factors can have a significant impact on the turnover period:
- DZ at the beginning of the reporting period;
- financial receipts throughout the period;
- the amount of accrued profit for the entire reporting period;
- the total number of days in the reporting period.
You can perform an actual turnover analysis by applying the following formula:
- the numerator contains the actual indicator of the period of turnover of the DZ, multiplied by the private total number of days in the period (CA) and the actual profit received;
- the denominator displays the planned indicator for the period of turnover of the DZ, which is multiplied by the private total number of days in the reporting period (CA) and the planned profit.
The definition of HWRR and HWRR means the actual and planned annual profit from the sale of any goods or services. In simple words, the actual and planned ratio of the period of turnover of the DZ will be able to provide significant assistance in determining the DZ on the fact of the divided profit on the fact to the planned one.
This ratio of actual and planned profit is final score. In the future, the turnover may be affected by a factor that decomposes the average available DZ coefficients that were formed in the company after the fact, but which were previously planned.
The planned profit may not always correspond to the established standard, which was developed for the turnover of remote sensing.
In the process of conducting the analysis, it will be necessary to deviate the actual indicators of the design estimate from the planned ones conditionally divided by several components:
- deviation in fact from the established plan;
- deviation of the planned from the established norm.
Thanks to this, it will be possible to carry out the necessary analysis without making any mistakes in it.
How to manage accounts receivable turnover? Find out from this video.