Calculated according to balance – the most simple, fast and convenient. Official estimates use a formula, spelled out in an official document - Methodological provisions for the assessment of the financial condition of the organization. This formula for calculation of working capital of the enterprise must from the sum of section III of the balance deduct the amount of section I. in order to calculate their own turnover means the company is more practical, add to the amount of own funds long-term loans and borrowings. The fact that long-term borrowed funds are used traditionally for the acquisition of fixed assets, so you may consider them in their own revolving fundsH.
Calculation using mathematical formulas much more complicated. These formulas there are several, and each of them allows you to calculate your own working funds (SOS). In order to determine SOS, subtract the amount of their sources of non-current assets. You can also calculate your own current funds on a formula taking into account long-term loans. Sum of own and long-term borrowed funds, and then subtract from the resulting value non-current assets. Finally, if using the third option, take the value of current assets and subtract from it the value of short-term debt.
Despite the fact that the exact meaning of all the mathematical expressions for the calculation of SOS differs in meaning and content, these differences are quite thin and are of greater importance in science of financial analysis, not for practical use. Therefore, all versions of calculations will give a correct estimate of the amount of working capital. Importantly, identifying the dynamics that have occurred over the last 2-3 years of activity of the enterprise, estimate the value of own circulating assets in the same way.
To assess the adequacy of working capital in the company, calculate the ratios of financial stability, which may also be considered as according to the balance sheet, and appropriate formulas.