Any industrial enterprise passes through a certain cycle of operating activities. It represents a period during which necessary raw materials and materials are bought, the finished goods are made and sold.
It is required to you
- - knowledge of the financial analysis;
- - calculator.
Instruction
1. An operational cycle – the period during which the current assets of the enterprise make a whole revolution. It is measured in days. It includes a production and financial cycle: OC = PTs+FTs
2. In production the cycle begins with the moment of acquisition, intake of raw materials and materials on a warehouse and their holidays in production, and comes to an end with product sales to buyers. The formula of its calculation has the following appearance: PPC = ROOM + POgp + PONZPOM – the period of a turnover of raw materials, materials and semi-finished products; POnz – the work in progress turn period, POgp – the period of a turn of stocks of finished goods.
3. The cycle financial begins with the moment of transfer of money to suppliers and comes to an end when money for the shipped products arrives. It represents the period of time during which goods, and receivables cycle time were made and realized. As usually the enterprise pays off with suppliers not right after product sales, and with some delay, it is necessary to count duration of this cycle as follows: The Centre Party of Finland = PC + POdz - POKZPTS – duration of a production cycle, POdz – the period of a turn debit zadolzhennostipokz – the period of a turnover of accounts payable
4. It is necessary to seek for reduction of operational and financial cycles. As a result money which are invested in production will go quicker all its of a stage through more revolutions will be able to make. As a result the enterprise will have on hand spare cash which it can direct to production expansion, its improvement or other purposes. It can be reached due to reduction of the period of storage of raw materials, materials and semi-finished products, decrease in duration of process of production of products and its storage in a warehouse.