Depends on the rational use of working capital successful activity of any organization... From an economic point of view, special attention should be paid to the revolving fund. An uncomplicated analysis of the research carried out allows us to identify the shortcomings and problematic aspects of the enterprise, as well as subsequently find ways to solve them and prevent losses.
The scope of the current assets turnover ratio includes an assessment of the indicator of the degree of efficiency of trade activities at a processing enterprise, wholesale and retail. In a shorter period of time spent on the process of movement of goods, from purchase to receipt, occurs increase in the number of capital turnovers per year and correspondingly, the amount of revenue received by the organization for a given time.
OS turnover ratio economically consists in reflecting the amount of funds that falls on one ruble of the product sold.
The calculation of the required working capital has a direct proportional relationship to the total amount of products produced and an inverse relationship to the value of revolutions.
Increase in the number of revolutions leads to a decrease in need in working capital. A decrease in the duration of the cycle of circulating assets or an increase in the turnover produced by them, when the volume of products sold is the same, leads to a decrease in the need for circulating assets and an increase.
Because of this, change in the cost of production as a result of the economic use of the circulating funds and the change in profit from sales.
Calculations
The production process at the enterprise depends on working capital, which constitute a significant part of the total value of the inventory of this enterprise.
Therefore, it is very important to correctly calculate mobile assets and rationally distribute their functions using indicators of the useful use of funds involved in the turnover. These indicators include loading rates, turnover rates, profitability, and others.
Baseline indicators
To calculate this indicator, you need to determine the amount of income and working capital. Income is calculated using proceeds, and working capital - using average balance of current assets.
The calculation of the turnover ratio is calculated by the ratio of income and total working capital. These indicators are comparable, with the same billing period, which can be equal to one year.
To calculate the asset turnover for 12 months, you need revenue, that is, the amount of net income, divided by the average total volume of assets in circulation.
The unit of measurement of the turnover ratio is number of revolutions for the corresponding billing period.
How much total current assets will be on average per year can be calculated in several ways.
First... With known access to the internal information channels of the enterprise: by determining the average indicator for each completed working day.
Second... With monthly reporting, when the indicator is applied, which is taken into account at the end of the corresponding month.
Third... If only annual reporting is taken into account, the indicator is calculated for the initial study period and the end one.
The indicator of the average annual volume of assets, if only annual data are known, is equal to:
(All assets at the beginning of the year + All assets at the end of the year) / 2
Example
It is necessary to determine the period of the production cycle of the limited liability company "Technohaus".
To do this, at the first stage, you should analyze the activities of the organization for 2016. This will help information about, which is equal to 20,000 rubles. The next step is to determine the size of the circulating capital. In 2015, it amounted to 70,000 rubles, and in 2016 - 90,000 rubles.
Total sales revenue (200,000) / (Turnover 2015 and next year (160,000) / 2)
According to this formula, it turns out that the coefficient is 2.5.
At the final stage, the turnover cycle of Technohaus LLC is calculated. For this 360 days / 2.5. As a result, it is obtained that the period of the production cycle of the organization is 144 days.
Balance Formula
It is possible to calculate the current assets turnover ratio when using reporting data related to financial results and balance sheet.
Thus, it is possible to determine indicators for only one year, for the rest of the time information on the balance sheet cannot be calculated.
Revenue from reporting financial results / ((Working capital at the beginning of the year + Working capital at the end of the year) / 2)
Standard
The turnover ratio is calculated on a continuous basis to identify the dynamics and more accurate calculations, the visibility of the entire situation in the enterprise as a whole. Its reporting period is several years.
There are no specific standard values for the coefficient, although each organization sets its planned value.
In total, the largest number of turnovers making a stable financial condition, increases the amount of revenue, however, the revolving assets are withdrawn from operation.
When the coefficient decreases, in contrast to the previous period, a negative trend is reflected, which entails the receipt by the enterprise of not all part of the income as a whole. For a rational equalization of negative situations, it is better for organizations to use new resources for production.
Coefficient value
This indicator may change according to the field of activity of the enterprise, for this reason, it has no normative value. The higher the values compared with competitive companies, the more intensive the exploitation of working capital.
If during the reporting period there is increase in indicator, which means that the organization's activities are associated with improving the management of such assets as stocks, financial assets, accounts receivable and other current assets.
Low rate entails the following ways to increase it:
- reduce the volume of production inventories to the lowest possible rate to ensure the smooth operation of the company;
- stimulate sales and reduce the size of stocks of manufactured products or goods for sale;
- take measures to pay off accounts receivable as soon as possible;
- other methods related to the activities of certain organizations.
Addiction
Distinguish certain factors, to a greater extent affecting the indicator of the coefficient.
- The cardinal change in the studied indicator is strongly influenced by the storage periods of current assets in production warehouses, accounts receivable, unsold and unfinished products.
- The working capital turnover ratio has a direct relationship, which is related to changes in the periods of technological and production cyclical processes, the qualifications of employees, the conditions for the implementation of processes associated with the implementation of all services, works and goods taken together, to the features of the organized activities of the enterprise.
Analysis
Turnover analysis is direction and study analytical method of the company. The results of the analyzes carried out evaluate the business activity and the effective management of total assets, as well as financial resources.
Today, analyzing the turnover of fixed assets, economists in practice and theory raise a lot of controversy with each other. In the entire financial analysis of the production process of an enterprise, the most vulnerable area is the study of capital turnover.
This analysis is carried out in order to assess the ability of an organization to generate income through movements, starting with money, then goods, and ending with money. After completing all the necessary calculations, are determined:
- the reasons for the conditions for the supply of material assets;
- payment methods with consumers and suppliers;
- ways of selling and supplying the finished product.
This indicator characterizes the speed of movement of working capital, the first stage which is the receipt of funds for material and equipment, final- return of profits from the sale of goods or services to bank accounts.
The amount of working capital is difference from the entire total amount of funds in circulation and their balance in banks on settlement accounts owned by enterprises.
With an increase in the speed of movement of finance, if the volumes of products sold or services provided are the same, the company uses less working capital... As a result, a conclusion should be drawn about the efficient use of monetary and material resources at the enterprise.
Consequently, another function of the turnover ratio is considered determination of the entire set of business transactions to save labor, increase the rate of increase in productivity in the organization, and so on.
Reasons for the decline
A slower turnover rate occurs with one longer turnover, due to an unjustified increase in inventories, the accumulation of consumer debts, an intermittent and interrupted production process and, as a result, not fully produced products.
Another possible reason for the violation of turnover may be a reduced demand, which affects the timing of the sale of the finished product from the warehouse and the production volumes of a new one.
Consequently, the study of the capital turnover ratio helps to give the most objective assessment of the useful area of its application. However, high and reasonable accuracy of calculations is provided by other indicators such as efficiency, liquidity and sustainability.
This condition usually appears in the role of a positive phenomenon... With a fast turnover of mobile funds, the company acquires a larger volume of income, many effective indicators improve, including, for example, profit.
Under this condition there are also negative sides... The organization has to incur additional costs to store a significant amount of inventory, which is required more and more as sales grow. As a result of the increase in labor productivity, the wages of the personnel should also increase, which means that the costs of the enterprise increase again.
This means that before planning an increase in the coefficient, you should analyze in detail the volumes of potential additional income, including the associated growing costs.
Summing up the above, it follows that the turnover ratio should be assigned the most significant role. He characterizes the efficiency of the organization's asset turnover.
Tracking its transformations and identifying shortcomings helps to prevent difficult situations in every enterprise. Timely intervention in economic policy provides an opportunity to make competent decisions that can avoid the company's financial problems, including the crisis.
Indicators of the efficiency of using working capital are presented in this element of the video course.
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Let's figure out how to proceed and where to find indicators. To produce a product, it is not enough to use the means of labor (machines, equipment) and employ workers.
It is also necessary to have raw materials, raw materials, blanks, that is, everything that is needed when creating finished products in the production process. Items of labor are required.
To do this, you need to have money to buy everything you need from suppliers and pay staff for labor.
Items of labor and money make up the company's working capital. But you need to determine the value of such an indicator, to know how to write off working capital.
Basic moments
First, let's find out what is meant by this economic expression and what regulations are relevant.
What it is
Working capital is called the aggregate of funds that turnover and circulation funds. Revolving funds are represented by:
- raw materials;
- basic and auxiliary materials;
- component parts;
- unfinished production facilities;
- container;
- other objects of labor.
Why is it needed
The material turnover ratio reflects the number of times the company has used the average of the available balance of working capital in the analyzed period.
According to the balance sheet, current assets consist of:
- stocks;
- money;
- short-term financial investments;
- short-term receivables, taking into account the purchased values.
The values can characterize what proportion of working capital and total assets and how effectively they are managed.
But it is worth remembering that the nuances of the industry in the production cycle are also taken into account. The turnover of working capital is an important indicator.
Indeed, with a fast turnover of the company's funds, the gap between the funds invested in the production process and the receipt decreases.
The difference between working capital and fixed assets is that they are used once in production cycles, and they can transfer their price to the finished product.
Regulatory regulation
It is important to study the provisions:
- PBU 6/01 according to.
- Methodical guidelines for accounting of fixed assets (), etc.
How to determine the turnover ratio of working capital
There are ready-made formulas that can be used to calculate turnover in any industry.
But in many cases it will not be possible to obtain an accurate result, since it is impossible to take into account all the factors, and the management of each organization has different knowledge in the field of business.
What does he characterize
Thanks to the current assets turnover ratio, it is possible to establish how efficiently current assets are used. You should rely on the information that is in the balance sheet.
The turnover ratio is a financial indicator that allows you to determine how effectively assets and liabilities are used.
He is able to show the business activity of the organization. If the indicator of the asset turnover ratio is three, it means that the company receives revenue for the year, which exceeds the value of assets three times.
Since turnover rates may depend on the industry, it is worth understanding that in a trading company with a large volume of revenue, the turnover will be higher.
If the industry is capital intensive, the value will be lower. But it is not correct to believe that the turnover will show the efficiency of activities and profitability.
But when conducting a comparative analysis of the ratios of the two organizations, you can see what the difference is in the effectiveness of asset management.
If there is a higher rate of turnover of debts on debit, it means that payments from buyers are collected efficiently.
The main goal pursued in the management of the company's assets (taking into account the working capital) is to increase the return on investment, ensuring a stable and sufficient solvency of the organization.
In order for such a goal to be achieved, it is worth constantly having a certain amount on the account, which is actually withdrawn from circulation. These funds are used to make current payments.
Part of the amount should be placed as highly liquid assets. It is important to ensure that the optimal balance of solvency and profitability is ensured.
To do this, maintain the size and structure of circulating assets, borrowed and own circulating assets.
What are the types
The most popular ratios in the analysis of a financial plan:
| Turnover of circulating assets | What is represented by the ratio of the proceeds of the enterprise in general to the turnover of the amount of the organization's assets for a specific time |
| Inventory turnover | Shows how management exploits surges in profit and cost |
| Accounts receivable turnover | This coefficient will allow you to calculate how much debt on debit was formed |
| Accounts payable | What is necessary for the lender, as it allows you to determine whether it is possible to pay the firm's loan |
| Assets | What determines the indicators of many financial turnovers |
| Equity of the firm | What can show the effectiveness of the use of funds by the organizational link |
Applicable formula
What positions characterize the coefficient? The indicator depends:
- from the duration of production cycles;
- employee qualifications;
- type of activity;
- pace (performance indicators).
Greater value is typical for trade organizations, and less - for capital-intensive research firms.
Formulas are directly proportional equations that are easy to understand.
If you fail to deal with them, then you can always contact a specialist who will help with the calculations.
So, the formula for determining the asset turnover ratio looks like this:
This is the most commonly used formula. Less commonly, a formula is used in which the turnover ratio of working capital is calculated as the ratio of the number of days in a year to the data on the turnover of assets.
Any value can be quickly found. For example, information about assets is in the balance sheet, and data on revenue is in the company's cash statements.
And here is the formula for the turnover ratio of current assets:
If the value is large, then we can talk about the growth of the enterprise. Current assets are not accounted for at the beginning / end of the period, which is analyzed. The indicator of the average annual balance is important.
The numbers for the beginning of the year and the end must be divided by two. In addition to the turnover rate of material assets, the turnover rate is also determined in days that one turnover can take.
So 365 days should be divided by the annual turnover rate. For example, a coefficient figure of 3 will show that assets turn around in 121.7 days.
What are the features of calculating the capital turnover ratio of a company? There are no definite rules, as well as the average.
Each organization outputs its own values, which will be different (taking into account the industry). But there is a direct relationship - the higher the ratio, the greater the return on equity.
The formula is:
The company must be able to use inventory and costs intensively to its advantage. Use the formula:
In the event that a high value is obtained, it means that the company does not have enough reserves. As a result, unnecessary waste appears.
The formula for determining the debit debt ratio:
There is no average. Everything will depend on the management and industry of the given firm. The higher the number, the faster the company can pay off its debts.
When determining the loan debt turnover ratio, use the formula:
The result will show how intensively the firm pays its own. There can be no definite total value of the coefficients.
They are analyzed in dynamics or compared with the indicators of another enterprise in the given industry.
If the value is very low, and it cannot be justified by the specifics of the industry, then the company has excessive working capital. If the indicator increases, most often this is a plus for the company.
The turnover of mobile assets will be fast, there will be more proceeds. When turnover accelerates, other performance indicators improve.
Disadvantage - if there is a lot of stock, it is necessary to organize storage space, which will entail additional costs.
With the acceleration of turnover, productivity will increase, which means that workers will also increase.
Video: determining the efficiency of using the working capital of the enterprise
This means that even before planning an increase in the coefficient, it is worth adjusting the potential profit and costs, which will also increase.
When can turnover decline? - If the duration of turnovers increases due to an unjustified increase in inventories, the emergence of customer debts, disruptions in production.
After all, as a result, the production of the goods will not be completed. There may also be such a reason - demand decreases, and the finished product is in warehouses longer. The volume of production is decreasing.
How to calculate the balance
To set the turnover ratio, you should take information from.
The available information will allow you to find out the value for the year. Any other period, according to the balance sheet, will not work.
The following formula is relevant:
Let's take an example. The total figure (with line code 1200) at the end of 2015 is 400 thousand, and in 2016 - 500 thousand.The amount of revenue (with code 2110) at the end of 2015 is 1.5 million, and in 2016 - 1.8 million.
The calculation is as follows:
So, the value of the coefficient is 4, which means that the mobile fund is taken 4 times a year.
Calculation examples
For example, a company sold 5,000 products in a year. The indicator of the cost of one unit is 180,000 rubles. The selling price is 15 percent higher than the cost price.
The average annual balance of circulating assets is 145,000,000 rubles. You should set the value of the coefficient, as well as find out how long one revolution lasts and what is the load factor.
This means that for one ruble of goods sold, there are 14 kopecks. the cost of inventories of working capital. One revolution lasts:
Here's another example. The Stepashka organization in 2014 has a profit of 249,239 rubles. The asset turnover indicator at the beginning of the year was 48 thousand rubles, at the end - 34 thousand.
A director of a company who has before his eyes only indicators of profit and overall profitability cannot always understand how to adjust them in the right direction. In order to have all the control levers in your hands, it is absolutely necessary to also calculate the turnover of circulating assets.
The picture of the use of working capital consists of four main indicators:
- Turnover duration (determined in days);
- How many times current assets make a turnover in the reporting period;
- How much working capital falls on a unit of products sold;
Let's consider the calculation of these data using the example of an ordinary enterprise, as well as the calculation of a number of important coefficients for understanding the value of turnover indicators in the overall picture of the company's success.
Turnover ratio
The main formula that determines the rate of turnover of working capital looks like this:
Cob is the turnover rate. It shows how many turnovers of working capital were made in a specific period of time. Other designations in this formula: Vp - the volume of sales of products for the reporting period;
Oav, - the average balance of working capital for the reporting period.
Most often, the indicator is calculated for a year, but absolutely any period necessary for analysis can be chosen. This coefficient is the rate of turnover of circulating assets. For example, the annual turnover of a mini-store of mobile phones was 4,800,000 rubles. The average balance in circulation was 357,600 rubles. We get the turnover ratio:
4,800,000 / 357,600 = 13.4 revolutions.
Turnover duration
It also matters how many days one revolution lasts. This is one of the most important indicators that shows in how many days the company will see the funds invested in turnover in the form of cash earnings and will be able to use them. Based on this, it is possible to plan both making payments and expanding the turnover. The duration is calculated as follows:
T is the number of days in the analyzed period.
Let's calculate this figure for the above digital example. Since the company is a trading company, it has a minimum number of days off - 5 days a year, for the calculation we use the figure of 360 working days.
Let's calculate how many days the company could see the money invested in turnover in the form of revenue:
357,600 x 360 / 4,800,000 = 27 days.
As you can see, the turnover of funds is short, the management of the enterprise can plan payments and use of funds to expand trade almost every month.
To calculate the turnover of working capital, the profitability indicator is also important. To calculate it, you need to calculate the ratio of profit to the average annual balance of working capital.
The profit of the enterprise for the analyzed year amounted to 1,640,000 rubles, the average annual balance of 34,080,000 rubles. Accordingly, the profitability of working capital in this example is only 5%.
The ratio of the utilization of funds in circulation.
And one more indicator that is necessary to assess the rate of turnover of working capital is the load factor in turnover. The coefficient shows how much working capital is advanced by 1 ruble. proceeds. This is the working capital ratio, which shows how much working capital must be spent in order for the company to receive 1 ruble of revenue. It is calculated as follows:
Where Kz is the load factor of funds in circulation, kopecks;
100 - translation of rubles into kopecks.
This is the opposite of the turnover rate. The smaller it is, the better the circulating assets are used. In our case, this coefficient is equal to:
(357,600 / 4,800,000) x 100 = 7.45 kopecks.
This indicator is an important confirmation of the fact that working capital is used very rationally. The calculation of all these indicators is mandatory for the enterprise, which seeks to influence the efficiency of work using all possible economic levers.
Forecast NOW! can be calculated
- Turnover in monetary and natural units both for a specific product and for a group of products, as well as for a cut - for example, for suppliers
- The dynamics of changes in turnover in any required sections
An example of calculating the turnover indicator for product groups:
Evaluation of the dynamics of changes in turnover for goods / groups of goods is also very important. At the same time, it is important to correlate the turnover schedule with the service level schedule (how much we satisfied the demand of consumers in the previous period).
For example, if the turnover and the level of service decrease, then this is an unhealthy situation - you need to take a closer look at this group of goods.
If the turnover grows, but at the same time the level of service decreases, then the increase in turnover is most likely provided by lower purchases and an increase in the deficit. The opposite situation is also possible - turnover decreases, but at the same time the level of service is calculated - customer demand is ensured by large purchases of goods.
In these two situations, it is necessary to assess the dynamics of profit and profitability - if these indicators grow, then the changes that occur are beneficial for the company, they fall - it is necessary to take measures.
Forecast NOW! It is easy to assess the dynamics of turnover, service level, profit and profitability - it is enough to carry out the necessary analysis.
Example:
Since August, there has been an increase in turnover with a decrease in the level of service - it is necessary to assess the dynamics of profitability and profit:
Profitability and profit have been falling since August, it can be concluded that the dynamics of changes
Current assets- one of the resources, without which the commercial activity of the enterprise is impossible. Calculation and analysis of indicators turnover current assets characterizing the efficiency of managing this resource will be considered in this article.
Current assets, their composition and indicators for analysis
A systematic analysis of the commercial activity of an enterprise as an element of effective management is based on the calculation of a number of indicators and the normalization of their values. Comparison of actual and standard indicators allows you to identify various patterns in business processes, eliminate risks, and make management decisions in a timely and correct manner.
The main source of information for calculating analytical ratios is financial statements.
A significant part of the calculations is based on information on movements and balances current assets.
TO current assets include the following types of enterprise assets:
- stocks, including raw materials, materials, goods for resale and goods shipped, finished goods, prepaid expenses;
- VAT on purchased assets;
- accounts receivable;
- financial investments;
- cash.
In accordance with PBU 4/99 "Financial statements of the organization" data on current assets enterprises are contained in section II of the balance sheet. Often in the literature you can find the terms "working capital" or "funds in circulation."
The magnitude current assets used to calculate the following indicators:
- profitability;
- liquidity;
- financial stability.
Let's dwell in more detail on analysis turnover of current assets, which is one of the aspects characterizing the business activity of the enterprise.
What is the analysis of the turnover of current assets for?
The dynamics of indicators characterizing the turnover of working capital is necessarily disclosed in the information accompanying the financial statements (paragraphs 31, 39 of PBU 4/99), as part of a group of coefficients that allow interested users of financial statements to assess the financial stability, liquidity and business activity of the enterprise. Current assets and their fair value is carefully checked during the audit of the financial statements.
Competent management of funds in circulation allows you to effectively attract credit sources to finance current activities. To assess the creditworthiness of an enterprise, banks use well-known indicators for assessing financial and economic activities. Based on the ranking of these indicators, the company is assigned a certain rating, on which the terms of lending depend, including the lending rate, the amount of collateral and the term of the lending. Current assets can also serve as collateral for loan obligations.
The presence of a system of analytical coefficients greatly facilitates the dialogue with the tax authorities, if it is necessary to explain the reasons for the occurrence of seasonal losses. Current assets may cause the excess of deductions for VAT over the amount of VAT to be charged.
Let's consider the procedure for calculating turnover indicators.
Turnover ratio of current assets
The turnover ratio shows how many times in the period under review current assets are transformed into cash and vice versa. The coefficient is calculated using the formula:
Cob = V / SSOA,
where: Cob is the turnover ratio of current assets ;
B - revenue for the year or another analyzed period;
SSOA - average cost current assets for the analysis period.
You should pay attention to the calculation of the average cost current assets... For the purpose of obtaining the most correct value of the turnover ratio, it makes sense to divide the analyzed period into equal intervals and calculate the average cost using the following formula:
CCOA = (COA0 / 2 + COA1 + COAn / 2) / (n - 1),
where: SSOA - average cost current assets for the analysis period;
СОА0 - balance of funds in circulation at the beginning of the analyzed period;
СОА1, СОАn - balance of funds in circulation at the end of each equal interval of the analyzed period;
n - the number of equal time intervals in the analyzed period.
This method of calculating the average cost of funds in circulation will take into account seasonal fluctuations in balances, as well as the influence of external and internal factors.
Nevertheless, the value of the calculated turnover ratio gives only general information about the state of business activity of the enterprise and is not valuable for management without analyzing its dynamics, comparing it with standard indicators.
Turnover of current assets: formula in days
The most informative indicator from the point of view of managing the commercial activities of an enterprise is the turnover of current assets in days or other units of time (weeks, months). This indicator can be calculated using the formula:
About = K_dn / Kob,
where: About - turnover in days;
К_дн - the number of days in the analysis period;
Kob - the turnover ratio of current assets.
The normative values of the turnover in days and the turnover ratio are set by the enterprise independently based on the analysis of a set of factors, such as the terms of contracts, industry specifics, region of operation, etc.
Current assets have a different structure depending on the type of activity. For example, if the company provides services and does not have inventory, the focus in the analysis of the turnover of current assets will be on accounts receivable. Effective management of this type of funds in circulation will give the company the opportunity to release the funds frozen in accounts receivable and thereby improve the financial position of the company.
How to establish a standard for accounts receivable turnover? It is necessary to compare the turnover of accounts receivable with the turnover of accounts payable. The economic effect of managing accounts receivable will be the higher, the greater the excess in days of accounts payable turnover over accounts receivable turnover.
Analysis of the dynamics of indicators of the turnover of accounts receivable will make it possible to identify negative trends in the event that debts that cannot be collected appear in the composition of accounts receivable.
Outcomes
Current assets enterprises are a rapidly changing resource that is most sensitive to changes in the external and internal business environment. Turnover indicators current assets are an important indicator of the effectiveness of the commercial activity of the enterprise.
Turnover ratio- a parameter by calculating which it is possible to estimate the rate of turnover (application) of specific liabilities or assets of the company. As a rule, turnover ratios act as parameters of an organization's business activity.
Turnover rates- several parameters that characterize the level of business activity in the short and long term. These include a number of ratios - working capital and asset turnover, accounts receivable and payable, and inventory. Equity and cash ratios are in the same category.
The essence of the turnover ratio
The calculation of business activity indicators is carried out using a number of qualitative and quantitative parameters - turnover ratios. The main criteria for these parameters include:
The business reputation of the company;
- the presence of regular buyers and suppliers;
- the width of the sales market (external and internal);
- the competitiveness of the enterprise, and so on.
For a qualitative assessment, the obtained criteria should be compared with those of competitors. At the same time, information for comparison should be taken not from financial statements (as is usually the case), but from marketing research.
The above criteria are reflected in relative and absolute parameters. The latter include the volume of assets used in the work of the company, the volume of sales of finished goods, the volume of its own profit (capital). Quantitative parameters are compared in relation to different periods (this can be a quarter or a year).
The optimal ratio should look like this:
Growth rate of net income> Rate of growth of profit from the sale of goods> Rate of growth of net assets> 100%.
3. Ratio of current (circulating) assets turnover displays how quickly accessed and used. With the help of this coefficient, you can determine what turnover was made by current assets for a certain period (usually a year) and how much profit was brought.