Any industrial enterprise goes through an operating cycle during which inventories are purchased, finished products are produced and sold for cash or on credit, and, finally, receivables are repaid through cash from customers. This cycle is called operational. The operating cycle reflects the period of time during which current assets make a full turnover.

Figure #1. The relationship of production and financial cycles

As part of operating cycle there are several components:

Inventory turnover cycle (production cycle) - the average time (in days) required to transfer inventories from the form of materials (raw materials) into finished products and sell them. Thus, the production cycle is a period of time that starts from the moment the materials arrive at the warehouse and ends at the moment the finished product is shipped to the buyer, which was made from these materials.

The receivables turnover cycle is the average time it takes for buyers to pay off receivables resulting from sales on credit.

The accounts payable turnover cycle is the average time that passes from the moment the enterprise purchases inventories to the moment the accounts of creditors are paid.

Based on the above components, the financial cycle is calculated.

financial cycle- this is the gap between the payment period for its obligations to suppliers and the receipt of money from buyers (debtors). In other words, it characterizes the period of time during which a full turnover is made by own working capital.

Financial cycle = Production cycle + Accounts receivable turnover period - Accounts payable turnover period

The shortening of the operating and financial cycles in dynamics is seen as a positive trend. It can occur due to the acceleration of the production process (the period of storage of inventories, reducing the duration of the manufacture of finished products and the period of its storage in the warehouse), accelerating the turnover of receivables, slowing down the turnover of accounts payable.

In banking practice operating cycle viewed as:

Operating Cycle = Inventory Turnover + Accounts Receivable Turnover - Accounts Payable Turnover (in days)

The operating cycle characterizes the total time during which financial resources are dead in stocks and receivables. Since the company pays supplier bills with a time lag, the time during which funds are diverted from circulation, that is, the financial cycle, is reduced by the average time of accounts payable circulation. The shortening of the operating and financial cycles in dynamics is seen as a positive trend. If the reduction in the operating cycle can be carried out by accelerating the production process and the turnover of receivables, then the financial cycle can be reduced both due to these same factors, and due to some non-critical slowdown in the turnover of accounts payable.

1.1 Calculation of the duration of the financial cycle

The financial cycle, or the cycle of circulation of cash, is the time during which monetary cycles are abstracted from circulation.

The duration of the financial cycle characterizes the average duration between the outflow of funds in connection with the implementation of current production activities and their inflow as a result of production and financial activities.

This indicator is necessary to determine the effectiveness of the financial activities of the enterprise.

The company always has a reserve that can be used if financial resources are needed. This reserve is accounts payable.

Indeed, the money invested in production (raw materials, materials, work in progress, etc.) cannot be withdrawn from there to cover their short-term shortage - naturally, we are not talking about the sale of inventories at bargain prices. The situation is exactly the same with receivables - you can achieve changes in relations with debtors, but this is a long, not momentary process.

Accounts payable is another matter - the moment of payment can be controlled, in a critical situation, you can delay the repayment of debt, etc. taken into account when characterizing the current financial activities of the enterprise.

The above arguments give grounds to assert that from the position of cash management, the position in relation to non-cash current assets can to a certain extent be attributed to decisions of a strategic or, at least tactical nature, while the principles of accounts payable management are directly related to the regulation of current financial activities in part of fundraising. Thus, the need for a quantitative assessment of the financial activity of the enterprise in terms of the circulation of funds in the enterprise has been logically proved.

The operating cycle characterizes the production and technological aspect of the enterprise, the total time during which financial resources are frozen in stocks and receivables. The financial cycle is the financial component of the activity. Since the company pays the company's bills with a time lag, the time during which funds are withdrawn from circulation, i.e. financial cycle, less than the average time of circulation of accounts payable.

Undoubtedly, the operating and financial cycles are interrelated; nevertheless, they, in a certain sense, describe various aspects of the process of functioning of an enterprise as an economic entity.

The shortening of the operating and financial cycles in dynamics is seen as a positive trend. If the reduction in the operating cycle can be done by accelerating the production process and the turnover of receivables, then the financial cycle can be reduced both due to these factors and due to some non-critical slowdown in the turnover of accounts payable.

Thus, the duration of the financial cycle (PFC) in days of turnover is calculated by the formula:

PFC = PPV - WQA = WHO + WOD - WQA

where POC is the duration of the operating cycle;

VOK - the time of circulation of accounts payable;

WHO - the time of circulation of inventories;

VOD - the time of circulation of receivables;

T is the length of the period for which the averages are calculated (as a rule, a year, i.e. T = 365).

The calculation is usually carried out according to annual data, for example, according to the annual balance sheet.

For the purity of the data, accounts payable should be taken in the part related to payments for supplied raw materials, materials and services (in particular, short-term loans and borrowings, suppliers and contractors, bills payable). Then, with regard to the indicator of the duration of the financial cycle, such a categorical judgment cannot be made. A factor analysis is needed, because if the reduction in the duration of the financial cycle is achieved due to an unjustified slowdown in the turnover of accounts payable, then this fact has a negative rather than a positive connotation.

It follows from the formula that the duration of the financial cycle depends on three factors; the first two are quite inertial, but the last factor is significantly controlled by management personnel in terms of managing current financial resources. Managing precisely this factor (in particular, accepting certain terms of payment for the supply of raw materials and materials, deliberately violating payment discipline, etc.), they are just trying to find the best option for the operational management of the financial activities of the enterprise.

1.2 The dependence of the financial, production and operating cycles of the enterprise

The effectiveness of financial management largely depends on the ratio of the duration of the financial and production cycles.

The production cycle begins from the moment the materials arrive at the warehouse of the enterprise, and ends at the moment the products that were made from these materials are shipped to the buyer.

The financial cycle begins from the moment of payment to suppliers of these materials (payment of accounts payable), and ends at the moment of receipt of money from buyers for shipped products (payment of receivables).

To assess the duration of cycles, turnover indicators are used (turnover period in days).

The production cycle consists of:

The period of turnover of stocks of raw materials;

The period of turnover of work in progress;

Turnover period for stocks of finished goods.

The financial cycle consists of:

The period of turnover of accounts payable;

The period of turnover of receivables.

Ways to reduce the financial cycle are to reduce the period of turnover of receivables and increase the period of turnover of accounts payable.

Reducing the production cycle involves:

Reducing the period of inventory turnover;

Reducing the period of turnover of work in progress;

Reducing the period of turnover of finished products.

The production cycle - starts from the moment the materials arrive at the warehouse of the enterprise, ends at the time of shipment to the buyer of products that were made from these materials.

Pozap + Pont + Pogp

Pozap - the period of turnover of stocks of raw materials (in days),

Pont - the period of turnover of work in progress (in days),

Pogp - the period of turnover of finished products (in days),

Tspr - production cycle.

The financial cycle - starts from the moment of payment to suppliers of these materials (payment of accounts payable), ends at the moment of receipt of money from buyers for shipped products (payment of receivables).

Tsf \u003d Tspr + Tsodz -Pokz + Poa

Podz - the period of turnover of receivables (in days),

Pokz - the period of turnover of accounts payable (in days),

Poa - advances turnover period (in days),

Tsf - financial cycle.

An accurate analysis of the status of receivables can only be done by determining the "age" of all debtor accounts on the company's books and classifying them by the number of days outstanding: 10 days, 20 days, 30 days, 40 days, etc. - and further by comparing these terms with the terms of credit for each transaction. But this kind of analysis requires access to the company's internal information, so an external researcher is forced to be content with a rather approximate indicator that compares receivables and sales volume for 1 day and then correlates this value with an average value accounts receivable during the year. This is achieved by using the accounts receivable turnover ratio.

A similar characteristic is the indicator of the average maturity of receivables.

Operational cycle - starts from the moment the materials arrive at the warehouse of the enterprise, ends at the moment of receipt of payment from buyers for the sold products.

Since the duration of the operating cycle is longer than the duration of the financial cycle for the period of turnover of accounts payable, the reduction in the financial cycle usually entails a decrease in the operating cycle, which is assessed as a positive trend.

The duration of the production cycle is calculated as the sum of the periods of turnover of all normalized components of working capital. The duration of the operating cycle is calculated as the sum of the duration of the production cycle and the period of turnover of receivables. The duration of the financial cycle is less than the duration of the operating cycle by the value of the period of turnover of accounts payable or more by the period of turnover of advances issued.

In a more general case, an enterprise from the very beginning of the operating cycle invests its own working capital in production: the period of turnover of accounts payable is the duration of circulation of the amount of funds equal to the difference in the cost of raw materials and materials received by the enterprise on credit and the amount of advances issued to them.

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The most important characteristic of the operating cycle, which significantly affects the volume, structure and efficiency of the use of current assets, is its duration. It includes the time from the moment the funds are spent on the acquisition of tangible current assets to the receipt of money from debtors for the products sold to them.

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

POC \u003d POD + POMZ + POTp + PODz (40)

where POC - the duration of the operating cycle of the enterprise in days;

POdz - the period of turnover of monetary assets in days;

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

POgp - the period of turnover of finished products in days;

POdz - the period of collection of receivables in days.

Within the framework of the operating cycle, two main components are distinguished: 1) the production cycle, 2) the financial cycle (or the cycle of cash flow).

The production cycle of an enterprise characterizes the period of complete turnover of material elements of current assets, starting from the moment of receipt of raw materials and 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 POcm + POz + POgp, (41)

where PPC is the duration of the production cycle of the enterprise in days;

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

POz - the period of turnover of work in progress in days;

POgp - the period of turnover of finished products in days.

The periods of inventory turnover, work in progress and finished goods can be calculated using the following algorithm:

WHSD; NPsd; GPsd / Ssd x D, (42)

where Zsd - average daily stocks of raw materials, materials and semi-finished products in the analyzed period;

NPsd - the average daily volume of work in progress in the analyzed period;

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

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

D is the number of days in the analyzed period.

The financial cycle (cash turnover cycle) of an enterprise is a period of full turnover of funds invested in current assets, starting from the moment of repayment of accounts payable for raw materials and semi-finished products received, and ending with the collection of receivables for delivered finished products.

The duration of the financial cycle (or cash flow cycle) of an enterprise is determined by the following formula:

PFC \u003d PPC + POdz - POkz, (43)

where PFC is the duration of the financial cycle in days;

PPV - the duration of the production cycle in days;

POdz - the period of turnover of receivables in days;

POkz - the period of turnover of accounts payable in days.

Thus, the financial cycle consists of a period of time between the payment of money for raw materials and materials and the receipt of money from the sale of finished products. The duration of this period is influenced by: the period of crediting the enterprise by suppliers, the period of crediting by the enterprise to buyers, the period of raw materials and materials in stocks, the period of production and storage of finished products in a warehouse.

As you can see, the elements of working capital are part of a continuous flow of business transactions. The purchase results in an increase in inventories and accounts payable; production leads to an increase in finished products; the sale leads to an increase in receivables and cash on hand and on the current account. This cycle of operations is repeated many times and eventually comes down to cash receipts and cash payments.

Current Asset Management Process

The process of managing the company's current assets includes a combination of the following stages:

analysis of current assets in the previous period

determination of the policy for the formation of current assets.

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

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

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

assessment 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 rate of change in their average amount in comparison with the rate of change in sales volumes;

Dynamics of the share of current assets in the total amount of assets;

turnover of all components of current assets;

Duration of production, operational and financial cycles;

Return on current assets.

When choosing a policy for the formation of current assets, the financial manager has to balance between risk and the efficiency of the company. Related to this is the possibility of applying the ideas of portfolio theory in determining the fundamental approaches to the formation of current assets. According to portfolio theory, three principal approaches can be distinguished: conservative, moderate and aggressive.

The application of a conservative approach implies not only the full satisfaction of the company's current need for current assets, but also the creation of significant insurance reserves. Thus, the guarantee of minimization of financial and operational risks is provided, but the efficiency of activity decreases accordingly.

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

The aggressive policy of forming current assets is associated with the minimization of insurance reserves or their complete absence. This policy involves high operational risk, but ensures maximum efficiency.

To implement the chosen policy, it is necessary to calculate the need for current assets. Such a calculation is made for one financial cycle on the basis of planned estimates of the need for production in certain elements of current assets. To calculate the current actin requirement for one financial cycle, you need to calculate the current actin requirement for the entire operating cycle, and then subtract accounts payable.

The next stage in the process of managing current assets is related to the optimization of the ratio of the constant and variable parts of current assets. To select the optimal ratio between the constant and variable parts of 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 built.

In accordance with the obtained dynamics of current assets for past periods, the following are distinguished: the maximum number of current assets involved in the production process in time; the minimum in time the number of current assets involved in the production process; the volume of the constant part of current assets; the average size of the variable part of current assets.

The revealed values ​​are extrapolated into the future. On their basis, the need for current assets and the value of the insurance reserve are estimated.

An important stage in the current asset management system 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 deferred expenses and bad receivables), their overall level of liquidity should provide the necessary level of solvency of the enterprise for total current liabilities. With this in mind, the share of current assets in the form of cash, highly and medium liquid assets is determined.

Current assets, like all assets, generate profit when they are used and produced. But to increase the level of their profitability, it is necessary to invest temporarily free cash in profitable financial instruments. This ensures a higher level of return on assets.

The next stage in the management of current assets is associated with the assessment of possible losses for various types of assets by their minimization. Various elements of current assets create risks associated with their partial loss or depreciation. For example, inventories are subject to losses from natural decline, receivables create a risk of default, financial instruments may depreciate due to unfavorable financial market conditions, money loses its value due to inflation. All these circumstances should be taken into account in the current asset management policy.

Depending on the specific need for current assets and the general style of their 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 objective of a moderate strategy is to minimize the risk that a company will be unable to pay its obligations as they fall due. According to this strategy, the company finances fixed assets and the entire fixed part of current assets through long-term loans, and the variable part of current assets through short-term loans.

When using an aggressive strategy, the company finances fixed assets, and part of the permanent part of current assets through long-term loans. And the rest of the constant component of current assets and their variable part - at the expense of short-term loans.

When applying a conservative financing strategy, the entire fixed part of current assets and part of the variable part (not to mention fixed assets) will be financed by long-term loans and equity. The cost of financing in this case will be high, and the risk will be low.

The effectiveness of financial management largely depends on the ratio of the duration of the financial and production cycles.

The production cycle begins from the moment the materials arrive at the warehouse of the enterprise, and ends at the moment the products that were made from these materials are shipped to the buyer.

The financial cycle begins from the moment of payment to suppliers of these materials (payment of accounts payable), and ends at the moment of receipt of money from buyers for shipped products (payment of receivables).

To assess the duration of cycles, turnover indicators are used (turnover period in days).

The production cycle consists of:

The period of turnover of stocks of raw materials;

The period of turnover of work in progress;

Turnover period for stocks of finished goods.

The financial cycle consists of:

The period of turnover of accounts payable;

The period of turnover of receivables.

Ways to reduce the financial cycle are to reduce the period of turnover of receivables and increase the period of turnover of accounts payable.

Reducing the production cycle involves:

Reducing the period of inventory turnover; reduction of the period of turnover of work in progress;

Reducing the period of turnover of finished products.

Production cycle organization characterizes the period of full turnover of working capital used to service the production process, starting from the moment raw materials, materials and semi-finished products arrive at the enterprise and ending with the release of finished products.

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

PC \u003d POpz + POzp + POgp,

where PC is the duration of the production cycle of the enterprise, days;

POpz - the period of turnover of stocks of raw materials, materials and semi-finished products, days;

POzp - the period of turnover of work in progress, days; POgp - the period of turnover of stocks of finished products, days.

The production process includes several stages:

Storage of production stocks from the moment they enter the warehouse until the moment they are released into production;

production;

Storage of finished products.

financial cycle-- this is the time interval between the payment term for its obligations to suppliers and the receipt of money from buyers. In other words, this is the period during which the funds invested in current assets make one complete turnover.

The duration of the financial cycle (or cash flow cycle) in the organization is determined by the following formula:

FC \u003d PPC + POdz - POkz,

where FC is the duration of the financial cycle (cash turnover cycle) in the organization, days; PC -- the duration of the production cycle of the organization, days; POdz - the average period of turnover of receivables, days; POkz - the average period of turnover of accounts payable, days.

There is a close relationship between the duration of the production and financial cycles of the organization, reflected in the concept of "operational cycle"

The operating cycle characterizes the total time during which cash is frozen in inventories and receivables. Since the organization pays supplier invoices with a time lag, the financial cycle is less than the operating cycle by the time period for the circulation of accounts payable.

The operating cycle characterizes the period of turnover of the total amount of working capital of the organization and is calculated using the following formula:

OC \u003d PC + POdz,

where OTs -- the duration of the operating cycle of the organization, days; POdz - the duration of the turnover of receivables, days.

From the above formulas it follows that the reduction of operating and financial cycles is a positive trend in money management, which can occur as a result of:

Reducing the time of the production process (the period of storage of inventories);

Rational reduction in the duration of the manufacture of the finished product and the period of its storage in the warehouse;

Use of progressive forms of logistics (Japanese kanban system);

Accelerating the turnover of receivables;

Slowdown in the turnover of accounts payable.

PRODUCTION AND FINANCIAL CYCLES OF THE ENTERPRISE AND THEIR INTERRELATION

Analysis of the structure of own working capital demonstrates the importance of time characteristics for working capital management. In this regard, the distribution of the need for current assets over time is of particular importance. For these calculations, a methodology is used based on the duration of the financial and operational cycle and the planned costs for current activities.

The duration of the financial and operational cycle in the manufacturing sector includes the duration of the supply, manufacture and assembly of products, as well as the period of their sale, waiting for the repayment of receivables.

In production, the cycle begins with the release of materials from the warehouse of the enterprise and ends with the shipment of finished products to the buyer, which is made from these materials.

The financial cycle begins from the moment of transfer of funds to suppliers upon repayment of accounts payable and ends at the moment of receipt of money from buyers for shipped products upon repayment of receivables, i.e. this is the period of time between the payment date for its obligations to suppliers and the receipt of money from buyers (debtors). It characterizes the period of time during which own current assets make a full turnover.

The financial cycle, or the cycle of circulation of cash, is the time during which funds are withdrawn from circulation. The duration of the financial cycle in days of turnover can be calculated as the difference between the duration of the operating cycle and the time of circulation of accounts payable. The goal of working capital management is to shorten the financial cycle. Reducing the duration of the financial cycle means reducing the period of turnover of own working capital.

35. Cash flows of the enterprise: their composition and classification.

One of the most important areas of financial management of organizations (enterprises) is cash flow management. The importance of this aspect of financial management is due primarily to the fact that in modern conditions, cash is one of the most limited resources and the success of an organization in production and commercial activities largely depends on the efficiency of their use, which implies attaching exceptional importance to the planning and control of cash flow . Cash flow management of organizations is inextricably linked with the strategy of self-financing, since it involves the identification

the relationship between cash flows and profits of the organization (the so-called profit paradox). Finally, a comprehensive assessment of the financial condition of an enterprise is impossible without an analysis of its cash flows, etc.

Meanwhile, it is necessary to distinguish between such concepts as "cash flow" and "cash flow". And if the first of them implies gross receipts and payments of the enterprise and underlies finance, then the second, in contrast to the simple act of receiving / transferring funds, is characterized by the following features:

Cash flow reflects the result of cash flow;

Cash flow is organized and managed;

Cash flow is limited in time;

The cash flow has a number of economic characteristics: intensity, liquidity, profitability, etc.

In general, cash flow - an analogue of the English cashflow (cash flow) is the result of the movement of the enterprise's cash for a particular period of time, or it is the difference between the receipts of the enterprise's cash and their payments for a certain period.

Cash flow reflects the movement of funds, which in some cases are not taken into account when calculating profits: investment costs, tax payments, taxes paid from profits; principal payments, etc.

For a deeper disclosure of the essence of cash flows and their effective management, it is necessary to classify according to the following main features (Table 8.1).

The concept of "cash flow of the enterprise" is aggregated, including in its composition numerous types of these flows that serve economic activities. In order to ensure effective targeted management of cash flows, they require a certain classification. Such a classification of cash flows is proposed to be carried out according to the following main features:

1. According to the scale of servicing the economic process, the following types of cash flows are distinguished:

Cash flow through the enterprise in a chain. This is the most aggregated type of cash flow, which accumulates all types of cash flows that serve the business process of the enterprise as a whole;

Cash flow for individual structural divisions (responsibility centers) of the enterprise. Such differentiation of the cash flow of the enterprise defines it as an independent object of management in the system of organizational and economic construction of the enterprise;

Cash flow for individual business transactions. In the system of the economic process of the enterprise, this type of cash flow should be considered as the primary object of independent management.

2. According to the types of economic activity, in accordance with international accounting standards, the following types of cash flows are distinguished:

Cash flow from operating activities. It is characterized by cash payments to suppliers of raw materials and materials; third-party performers of certain types of services that provide operational activities: wages to personnel involved in the operational process, as well as managing this process; tax payments of the enterprise to the budgets of all levels and extra-budgetary funds; other payments related to the implementation of the operational process. At the same time, this type of cash flow reflects the receipt of funds from buyers of products; from tax authorities in the procedure for recalculating overpaid amounts and some other payments provided for by international accounting standards;

Cash flow from investment activities. It characterizes payments and cash receipts associated with the implementation of real and financial investment, the sale of retired fixed assets and intangible assets, the rotation of long-term financial instruments of the investment portfolio and other similar cash flows serving the investment activities of the enterprise;

Cash flow from financial activities. It characterizes the receipts and payments of cash associated with attracting additional equity or share capital, obtaining long-term and short-term loans and borrowings, paying cash dividends and interest on deposits of owners, and some other cash flows associated with the implementation of external financing of the economic activity of the enterprise.

3. According to the direction of cash flow, two main types of cash flows are distinguished:

Positive cash flow characterizing the totality of cash inflows to the enterprise from all types of business transactions (the term "cash inflow" is used as an analogue of this term);

Negative cash flow characterizing the totality of cash payments by the enterprise in the process of carrying out all types of its business operations (the term "cash outflow" is used as an analogue of this term).

Characterizing these types of cash flows, you should pay attention to the high degree of their relationship. Insufficiency of volumes in time of one of these streams causes the subsequent reduction of volumes of other type of these streams. Therefore, in the enterprise cash flow management system, both of these types of cash flows represent a single (complex) object of financial management.

4. According to the volume calculation method, the following types of enterprise cash flows are distinguished:

gross cash flow. It characterizes the totality of receipts or expenditures of funds in the period under consideration in the context of its individual intervals;

Net cash flow. It characterizes the difference between positive and negative cash flows (between the receipt and expenditure of funds) in the period under consideration in the context of its individual intervals. Net cash flow is the most important result of the financial activity of the enterprise, which largely determines the financial balance and the rate of increase in its market value.

The calculation of the net cash flow for the enterprise as a whole, its individual structural divisions (responsibility centers), various types of economic activities or individual business transactions is carried out according to the following formula:

NDP \u003d PDP-ODP,

NPV - the amount of net cash flow in the period under review;

RAP - the amount of positive cash flow (cash receipts) in the period under review;

ODP - the amount of negative cash flow (expenditure of funds) in the period under review.

As can be seen from this formula, depending on the ratio of the volumes of positive and negative flows, the amount of net cash flow can be characterized by both positive and negative values ​​that determine the final result of the corresponding economic activity of the enterprise and ultimately affect the formation and dynamics of the balance of its monetary assets. .

5. According to the level of volume sufficiency, the following types of cash flows of the enterprise are distinguished:

Excess cash flow. It characterizes such a cash flow in which cash receipts significantly exceed the real need of the enterprise for their purposeful spending. Evidence of excess cash flow is a high positive value of net cash flow that is not used in the process of carrying out the economic activity of the enterprise;

Deficient cash flow. It characterizes such a cash flow, in which cash receipts are significantly lower than the actual needs of the enterprise in their purposeful spending. Even with a positive value of the amount of net cash flow, it can be characterized as a deficit if this amount does not meet the planned need for spending money in all the envisaged areas of the enterprise's business activities. The negative value of the amount of net cash flow automatically makes this flow scarce.

6. According to the method of evaluation in time, the following types of cash flow are distinguished:

Real cash flow. It characterizes the cash flow of the enterprise as a single comparable value, given in value to the current point in time;

future cash flow. It characterizes the cash flow of an enterprise as a single comparable value, reduced in value to a specific future point in time. The concept of future cash flow can also be used as its nominal identified value in the upcoming moment of time (or in the context of intervals of the future period), which serves as a discounting base in order to bring it to the present value.

The considered types of cash flow of the enterprise reflect the content of the concept of estimating the value of money in time in relation to the business operations of the enterprise.

7. According to the continuity of formation in the period under review, the following types of cash flows of the enterprise are distinguished:

Regular cash flow. It characterizes the flow of receipt or expenditure of funds for individual business transactions (cash flows of the same type), which in the period under consideration is carried out constantly at separate intervals of this period. The nature of the regular are most types of cash flows generated by the operating activities of the enterprise: flows associated with servicing a financial loan in all its forms; cash flows that ensure the implementation of long-term real investment projects, etc.;

discrete cash flow. It characterizes the receipt or expenditure of funds associated with the implementation of individual business operations of the enterprise in the period under consideration. The nature of a discrete cash flow is a one-time expenditure of funds associated with the acquisition of an integral property complex by an enterprise; purchase of a franchise license; the receipt of financial resources in the manner of gratuitous assistance, etc.

Considering these types of cash flows of the enterprise, you should pay attention to the fact that they differ only within a specific time interval. With a certain minimum time interval, all cash flows of the enterprise can be considered as discrete. And vice versa - within the framework of the life cycle of an enterprise, the predominant part of its cash flows is of a regular nature.

8. According to the stability of time intervals of formation, regular cash flows are characterized by the following types:

section i. cash flow management

Regular cash flow with uniform Time intervals Within the considered period. Such a cash flow of receipt or expenditure of funds is in the nature of an annuity;

Regular cash flow with uneven time intervals Within the period under review. An example of such a cash flow is a schedule of lease payments for leased property with uneven time intervals agreed upon by the parties during the lease period of the asset.

The considered classification allows more purposefully to carry out accounting, analysis and planning of various types of cash flows in the enterprise.

Indicator unit: days

Explanation of the essence of the indicator

The operating cycle period (English analogue - Operating Cycle) is an indicator of business activity, which shows the time of transformation of the company's reserves into money. Thus, a company's operating cycle is the time between the purchase of inventory and the receipt of cash for goods sold or services rendered (money is received from both sales and receivables).

For example, a clothing store bought ready-made clothes and sold them to the customer for cash. The relatively short period of time between buying clothes and selling them reflects a short transaction cycle. Unlike a clothing store, a machine tool manufacturer first purchases materials and components, then direct production takes place, and then provides customers with deferred payment. As a result, the operating cycle for a machine tool manufacturer is significantly longer than that of a clothing store. There are industries in which this period exceeds a year, for example, in ship manufacturers.

The indicator is calculated as the sum of one inventory turnover and the average receivables repayment period.

Normative value of the operating cycle:

It is desirable to decrease the indicator during the study period. To determine the position of the company, it is advisable to compare the value with the main competitors. It is desirable that the companies that are selected for comparison are also approximately the same size (for example, if you compare the amount of assets).

Directions for solving the problem of finding an indicator outside the normative limits

A decrease in the value of the indicator can be achieved both by optimizing the production process and by increasing the efficiency of receivables management. Reducing the average receivables repayment period will reduce the duration of the operational process.

Operating cycle calculation formula:

The approximate value of the company's operating cycle can be calculated as follows:

Operating Cycle Period = One Inventory Turnover Period + Accounts Receivable Period (1)

This indicator can be broken down into components as follows:

Operating Cycle Period = (360 * Annual Average Inventory) / Cost) + (360 * Annual Average Accounts Receivable) / Revenue) (2)

When calculating the indicator, it is worth remembering that the turnover of inventories and receivables may be underestimated. If a company uses a classic business year (end of December 31) and the indicator is calculated based on the values ​​at the beginning and end of the year, then the indicators may not reflect the real situation. Therefore, it is desirable to use values ​​at the end of the month or business day.

Average annual inventory (best practice) = Sum of inventory at the end of each business day / Number of business days (3)

Average annual inventory (when only monthly data is available) = Sum of inventory at the end of each month / 12 (4)

Average annual inventory (when only annual data is available) = (Inventory at the beginning of the year + inventory at the end of the year) / 2 (5)

It is identical to calculate the average period of repayment of receivables.

Average annual amount of accounts receivable (most correct) = Amount of accounts receivable at the end of each business day / Number of business days (6)

Average annual amount of accounts receivable (when only monthly data is available) = Sum of accounts receivable at the end of each month / 12 (7)

Average annual amount of receivables (if only annual data are available) = (Amount of receivables at the beginning of the year + amount of receivables at the end of the year) / 2 (8)

Example of operating cycle calculation:

JSC "Web-Innovation-plus"

Unit of measurement: thousand rubles

Operating cycle period (2016) = (360*(234/2+284/2))/ 3781+ (360*(405/2+341/2))/ 4517= 54.39 days

Operating cycle period (2015) = (360*(284/2+301/2))/ 3772+ (360*(341/2+254/2))/ 4509= 51.67 days

During 2015-2016, the operating cycle of JSC "Web-Innovation-plus" increased from 51.67 days to 54.39 days. A positive impact on the efficiency of the operational process was the continuous reduction in the duration of the production process. However, under the influence of a constant increase in the amount of receivables, the operating cycle has increased. Reserves for reducing the indicator must be sought in the field of receivables management. Optimization of the commodity lending policy will reduce the average annual amount of debt, which will lead to an increase in the company's financial performance.