Instruction
1
To find the value of own circulating assets of the enterprise, you should know the amount of sources of own funds non-current assets. Working capital will be calculated as the difference between these values:
SOS = SK – VA where: SOS working capital; SK – own capital of the enterprise;VA – non-current assets.
2
Sometimes to equity equate the amount of long-term liabilities (long term borrowings). In this case, working capital will be calculated as follows:
SOS = SK + TO ISLANDS, where long – term obligations of the enterprise.
3
You can find the amount of own funds another way – as the difference between the sum of current assets and current liabilities of the company: COC = OA – KO, where: OA – floating assets; CO – current liabilities of the organization.
4
Remember that the amount of working capital is one of the most important indicators of financial stability. Their absence suggests that all current assets of the organization, and sometimes part of non-current assets formed at the expense of borrowed sources.
5
The amount of working capital you can use in the calculation of the ratio of own working capital. It is defined as the ratio of the magnitude of working capital to the value of current assets. This ratio shows what proportion of current assets formed at the expense of own funds of the enterprise.
6
In this case, note that the company is financially unstable, and the structure of balance unsatisfactory, if the ratio is less than 0.1. This value is considered standard for the considered factor, but, as practice shows, this criterion satisfies a small percentage of enterprises.