Finances of enterprises

CONTENTS 
INTRODUCTION ……………………………………………………………………3 
1.FINANCIAL RELATIONSHIPS OF THE ENTERPRISE………………………...4

2. FEATURES OF FINANCE OF THE ENTERPRISE DIFFERENT INSTITUTIONAL FORMS OF ECONOMIC  ………………………………………7

3. CASH FUNDS OF THE ENTERPRISE …………………………………………10

4. ANALYSIS OF FINANCIAL PERFORMANCE BASED ON THE BALANCE………………………………………………………………………......19  
CONCLUSION……………………………………………………………………...24 
REFERENCES ……………………………………………………………………...25 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

INTRODUCTION

     Finance of companies is leading players in the reproduction process and the formation of their own funds and centralized financial resources of the state.

     In the country's reforms have led to an increase in flows and socio-economic relations, enhancing the role of distributive relations. There were and continue to develop non-state sector, modern banking system, markets for goods, services and capital. Companies have moved to the widespread use of market-based regulation of their business activities.

     The main objective of business enterprises has become a profit, which serves as an important source of capital increment and a prerequisite, growth, enterprise and its owners. This goal can only be achieved at the optimal organization of finance for companies, allowing not only to strengthen their financial position and competitiveness, but also to ensure financial stability in the country.

     That is the significance of corporate finance and served as a reason for choosing the theme of the work presented. 
 
 
 
 
 
 
 
 
 
 
 
 
 

FINANCIAL RELATIONSHIP OF THE ENTERPRISE

   The basis of market relations is money. They link the interests of the seller and buyer. The buyer pays money to the seller. Counting and then sell the results of their work and get paid for it. Some of them he gave the bank to repay the loan and the budgets of different levels of taxes and the rest is used for own needs. Market relations - is primarily a financial relationship, when market participants suggest making money and using them for different purposes, creating their own respective monetary funds.

   Finance of enterprise is economic, monetary relations. Resulting from the movement of money and generated on this basis, cash flows associated with the operation created in the enterprises of funds.

   Finance of enterprise are the foundation of the financial system of the state, as enterprises are the main link in the national economic complex. Status of corporate finance has an impact on national and regional security of funds of financial resources, dependence is a straight line, the stronger and more stable financial situation of enterprises, the more assured of national and regional monetary funds, to more fully meet the social, cultural needs, etc.

   Finance is an objective economic category of the market economy. Without the proper functioning of the financial mechanism of the market economy cannot work. Experience in recent years of economic reform in Russia has confirmed this position. The task of government is to assess the role of financial relations in a particular period of development. That is why in a market economy must learn to combine the independence of enterprises and regions of the state regulation of economy and finance.

   Financial relationships between the enterprises can be grouped into four groups:

• with other companies and organizations;
• within the enterprise;
• within the associations of enterprises, from the parent organization, within the financial-industrial groups and holding;
• the financial and credit system - budget and extra budgetary funds, banks, insurance, stock exchanges, various funds.

   Financial relationships with other companies and organizations include the relationship with suppliers, buyers, construction and transportation organizations, post and telegraph, foreign trade and other organizations, Customs, enterprises, organizations and companies from foreign countries. This is the largest in terms of cash payments to the group. Relationships with each other enterprises connected with the realization of finished products and the acquisition of property for economic activity. The role of this group of financial relationships is primary, since it is in the sphere of material production, creating the national income; companies receive revenue from product sales and profits. The organization of these relations has a direct impact on the results of production activities.

   Financial relations within the company include the relationship between the branches, shops, departments, teams, etc., relations with the workers and employees. The relationships between company divisions are associated with payment for work and services, distribution of profits, working capital, etc. Their role is to establish specific incentives, and financial responsibility for a qualitative fulfillment of commitments.  Relations with workers and employees - is wages, bonuses, benefits, dividends, financial aid, as well as recovery of money damages, withholding of taxes. It is very important that employees receive units of exactly what they earn. Financial relationships within associations of companies fall into financial relationships with parent organizations of enterprises, relations within the financial and industrial groups and the relationship between the companies in the holding.

   Financial relations with the parent organizations of enterprises include the relationship on education and the use of centralized cash funds, which in conditions of market relations is an objective necessity. This is particularly true of investment financing, working capital, financing of imports, scientific research, including marketing. Intra reallocation of funds, usually on a recurrent basis is important and helps to optimize the resources of the enterprises.

   In the privatization of property, when in the hands of the state remains a significant part of the shares of privatized enterprises, plays an important role worldwide experience: in many countries, the largest proportion (90%) of funds from privatization comes into special funds to support enterprises to be privatized. 
Financial and industrial groups are generally in order to unite efforts in the direction of financial development and production support, to maximize financial results. There may be a centralized cash funds, and commercial loans to each other, and just financial assistance.

   Features consist of holding relationships that are built on an economic basis, when parent company owns controlling stakes in subsidiaries. The latter also allows for the strategic management of up-and-black enterprises. Consequently, financial relations within the holding involve a significant financial self-autonomy of its members within a single strategy.

   Relations with the financial and credit system are manifold. First of all, relations with the budgets of various levels and extra-budgetary funds associated with the transfer of taxes and deductions.

   Kazakh tax system is not perfect and does not contribute to the normal production activities. World experience shows that reducing high inflation is possible only through the support of production and development investment. To this should be directed primarily tax, as well as credit and customs policy. In particular, in many countries, a certain portion or the entire increase in production taxes are not levied. It is profitable enterprise, and government, as taxes on such businesses come in full, and a year later they increase dramatically.

   Relationship with an insurance element of the financial system consists of transfers of funds for social and health insurance and property insurance company. 
Financial relationships with companies like banks are based in part of the organization of non-cash payments and the receipt and repayment of short-and long-term loans. Organization of non-cash payments has a direct impact on the provision of financial enterprises. Credit is a source of working capital, expansion of production, its rhythm, improves product quality, and helps eliminate temporary financial difficulties of enterprises.

   Banks currently have a number of innovative services businesses: leasing, factoring, forfeiting, trust. At the same time may be an independent company specializing in the implementation of these functions.

   Currently in a relationship business with the banks there exists a number of problems. The practice of primitive non-cash payments: prepay, barter, cash,  major defaults. Credit is very expensive, so its share in the formation of the Working Capital funds of enterprises is very low (an average of no more than 10%). Long-term credit to finance investment is almost never used. Non-traditional banking services and have not been developed.

   Financial relationships with stock market ventures involve transactions in securities. 

2. FEATURES OF  FINANCE OF THE ENTERPRISE DIFFERENT INSTITUTIONAL FORMS OF ECONOMIC 

     Limited liability company - a society founded by one or several persons whose charter capital is divided into shares in amounts determined by the constituent documents. Participants in the limited liability company liable for its obligations and bear the risk of losses associated with the operations of the company within the value of their contributions, which is an important advantage compared with the full partnership.

     The charter capital of limited liability Company formed by contributions of members. The charter capital shall determine the minimum size of the property, ensuring the interests of its creditors.

     The charter capital of a limited liability company may be increased through additional contributions from members in accordance with Art. 26 Law of the Republic of Kazakhstan on 22 of April 1998 year N 220-1"Law On Limited Liability Companies."

     Profit a company is determined in general procedure. Distribution of profits to a limited liability company shall be in accordance with the law. First of all profits from the income tax payable and other payments to the budget. Further income is distributed in accordance with the procedures specified in the charter of the company, the industrial and social development. The remaining part is distributed among members of society in proportion to their equity stake, unless otherwise stipulated in the founding documents. In the event that the statute does not stipulate the allocation of profits remaining at the disposal of society, the decision on its allocation should be made an annual meeting of shareholders. Retained earnings is a source of capital reserves.

     Supplementary liability society is a society founded by one or several persons whose charter capital is divided into shares in amounts determined by the constituent documents. Its members are jointly and severally liable for the obligations of the subsidiary company of his property in the same for all multiples of the value of their contributions. The cost of deposits is determined by the constituent documents. In the event of bankruptcy of one of the members of his responsibility for the obligations of society is distributed among members in proportion to their share in registered capital. All matters relating to the distribution of profits, solved the same way as they are defined to a limited liability company.

     Joint Stock Company - Company, the authorized (share) capital is divided into a certain number of shares. Shareholders (members of joint stock company) is not responsible for the obligations of company and responsible to the value of their shares. Entitled to a share of ownership is confirmed by its shareholder's equity investments. Each holder of shares owned property company in accordance with the share of its shares in the total number of shares outstanding. In this sense, the company do not own the property. The legal status of joint-stock company is defined by the Civil Code and the Law of the Republic of Kazakhstan "Law On Joint Stock Companies."

     Distinguish between open and closed joint-stock companies.

     Open Joint Stock Company - a society whose members can sell their shares without the consent of other shareholders. Open Joint Stock Company may conduct a public subscription for the shares it issues and implement free market in the stock market. 
The authorized capital is formed by placing the common and preferred shares. Moreover, the proportion of preferred shares in the total share capital must not exceed 25%.

     The authorized capital of joint-stock company is directed to the formation of the productive assets of society.

     Company has the right to post bonds to potential investors, which, unlike the shares are issued for a specified period, their value must be repaid and interest paid. Bonds are in essence borrowed money and are usually sent for working capital. 
Profit Company is determined and taxed in the same manner as that for companies with limited liability, but further distribution of profits is different.

     The distribution of profits provide by the law for the reserve fund. Its value cannot be less than 10% and 25% of the paid up capital.

     Closed Joint Stock Company - company whose shares are distributed only among its founders. . It may not conduct an open subscription on their best price produced. Shareholders of Open Joint Stock Company have a prior right to purchase the shares sold by other shareholders.

     Production co-operative - a voluntary association of citizens on the basis of membership for the joint production or other economic activity, based on their personal labor or other participation and integration of property shares.

     The asset of the cooperative is divided into shares of its members in accordance with the charter of the cooperative. Production cooperative may make the indivisible funds at the expense of a certain part of the property if it is stipulated in the charter.

     Decision on formation of indivisible funds shall be taken unanimously by the membership. The charter should be defined targets of their use. 
By the time of registration of the cooperative each member must pay at least 10% of its shares, and the rest - within one year from the date of registration. 
Profit cooperative shall be distributed to the members in accordance with their labor participation, if the statute does not stipulate otherwise.

     Unitary Enterprise - a commercial organization, not endowed with ownership assigned to it by the owner property. Distinguish unitary enterprises on the right of business and operational management to the number of unitary enterprises are state and municipal enterprises.

     Unitary enterprise based on the right of business, created by the decision of the authorized state or municipal authority. Accordingly, the property of the unitary enterprise is in a state or municipal property. A unitary enterprise is liable for its obligations with all property belonging to him, but shall not be liable for the obligations of the owner of the property. In turn, the owner is not liable for the obligations of the enterprise. Controls Unitary Enterprise Manager, appointed by the owner or authorized owner of the body. Authorized share capital of a unitary enterprise shall not be less than the value defined in the law on state and municipal unitary enterprises. Statutory fund must be paid in full at the moment of state registration of a unitary enterprise. If the financial year the net assets of the business will be smaller than the authorized capital, the latter must be reduced accordingly. In case, if the authorized share capital will be less than required by law, the enterprise may be liquidated by a court.

     Formation and distribution of profits, the relationship with the budget of a unitary business conducted in the general procedure.

     Unitary enterprise based on the operational management (the federal government enterprise), created by the decision of the Government. His property is in the public domain. The company is responsible for all its obligations with all his possessions. The Russian Federation shall bear subsidiary liability for obligations of the state enterprise. The company has the right to dispose of their property only with the consent of the owner. State-owned enterprise has the right to sell products, unless otherwise provided by law. The order of distribution of income and profits are determined by the state.

3. CASH  FUNDS OF THE ENTERPRISE

     Most important aspect of the financial activities of enterprises are the formation and use of various financial assets. Through them, shall provide the necessary means of economic activity, as well as expanded reproduction, the financing of scientific and technological progress, development and introduction of new technology, the economic stimulus payments from the budget, banks.

     Cash funds of enterprises can be divided into five groups (Fig. 1):

     The first group of funds of the enterprise (see Figure 2) - it funds its own funds. They play a crucial role in the enterprise, as the demands on their size and organization rather ambiguous. Charter capital (CC) of the enterprise determines the minimum amount of property companies, guaranteeing the interests of creditors. Thus, the share capital is the main source of its own funds. Its minimum size is determined in accordance with established legal minimum wage in the country. The minimum capital of an open JSC is thousand times the amount of the minimum wage, and closed - one hundred times the amount.

     The charter capital of joint-stock company is determined by the nominal value of shares purchased by shareholders and issued by the society.

     The name "Charter capital" because of its size is fixed in the charter of the company, which is subject to registration in the prescribed manner. 

     Company has the right to issue ordinary shares of a single denomination and one or more types of preferred shares. If the nominal value of the preference shares cannot be more than 25% of the charter capital.

All the company's shares are registered.

     Shares issued and purchased by JSC shareholders are called positioned stocks. Their number and nominal value should be determined by the charter company.

     Shares that the company has the right to place in addition to the outstanding shares, the number and nominal value is determined by statute, called the announced actions. Joint Stock Company is not obliged to determine the statute authorized shares. Obligatory condition of the placement of additional shares of each category (type) is to define in statute the rights granted to placed shares of the company in each category (type). If the company's charter provided for authorized shares, in this case, additional shares may only be placed within the number of authorized shares. When placing additional shares of joint-stock company determines the number of additional ordinary shares, the terms and conditions of their placement.

     The charter  capital of joint-stock company may be increased up to work for a year. This is possible by the decision of the meeting of shareholders or directors (as defined in the statute), and only after appropriate re-enterprises. There are three options to increase or decrease the authorized capital of the company:

     1) Increase (decrease) in nominal value of one share;

     2) Increase (decrease) the number of shares issued;

     3) the exchange issued a joint stock company bonds for shares in the capital increase and share exchange, respectively, to bond with its reduction.

     The charter capital is the first money funds are recorded in section III of the liability balance of the enterprise. Balance sheet is as follows:

     Asset - the property business, passive - those funds which are formed at the expense of the property. Property - it's fixed assets and intangible assets (fixed assets) and working capital (current assets). Money can be your own (Section III), as well as loans and borrowings (Section IV and V).

     With charter capital of enterprises is closely related to a concept of net assets, which in the broadest sense are his own means. The need to calculate the net asset value due to the fact that some of the funds of the enterprises have a dual character. On the one hand, they are his own means, and on the other - they do not belong directly to the company and its shareholders and employees.

     Between the net assets (NA) of the company and its share capital (CC), there exists the following relationship, which operates from the second year of the company.

     If the CHA <MC, the company must reduce its authorized capital to net assets, in fact, to the value of equity.

     If the CHA <UK min (minimum capital), the Company shall take a decision on its liquidation, since the situation is contrary to law.

     In this case, the company has no right to make a decision on dividend payment. It has no right to do as well in that case, if the net asset value may be less than the indicated value after payment of dividends.

     The important role of net assets is also reflected in the fact that on this basis is determined by the so-called book value of the shares. Book value of shares - this is a real value compared them to their face value, especially in Russia, where annually the revaluation of fixed assets, increase their value. At the same time increase the charter capital as a result of these revaluations did not exceed 10-15%.

     Consequently, the net assets of more significant than the authorized capital. 
After following the share capital of funds company's own funds is additional capital, which includes:

• Revaluation of fixed assets, i.e. their revaluation surplus;
• seignior age company (revenue from sale of shares in excess of their nominal value less costs of sale);
• Gratis cash and tangible assets for productive purposes;
• Proceeds for working capital.

     Additional capital accumulates funds coming to the enterprise during the year on the above channels. The main channel here is the results of revaluation of fixed assets.

     It is natural annual increase in share capital due to the additional. But, as noted, many companies do not.

     Reserve capital is formed by contributions from revenue in the amount determined by the charter, but not less than 15% of the share capital. Annually to the reserve fund should be deducted at least 5% of net profits until the reserve fund until it reaches the size specified by the charter. Reserve capital enterprise is intended to cover its losses, and joint stock companies and more to maturity of society and the redemption of their shares in the absence of other means. 
In a broader sense, the enterprise reserve fund to be used in accordance with international practice in two ways:

1. the shortage of working capital, he goes to the formation of inventory, WIP and finished goods;
2. the adequacy of working capital, he sent a short-term investments.

     Currently, businesses can use the capital reserve and in the broad sense, but in this case, the payments to him should be made from net profit, without tax benefits. In particular, the joint-stock companies can generate net income from special fund for employees of joint-stock company. It is intended for the purchase of shares sold by shareholders, for subsequent placement of their employees. Certainly, in terms of production, where highly qualified specialists will be invited, this may be one of the stimuli. Corporation stock may be an option of awarding employees. In addition, the concentration of most of the issued shares of joint stock companies employees and an incentive condition for raising production efficiency.

     The accumulation fund is designed to boost production and profits generated by remaining at the disposal of the company, ileitis net profit. 
The role of this fund is clear. The truth in this case is: the company should be able to provide and increase working capital and finance capital investments. This should always be considered as part of allocating net income and deciding how much of it should be directed to the payment of dividends and the development of production.

     The Fund is a source of savings to increase the authorized capital of the enterprise as investments in the development of production equipment to increase the company. Consequently, increasing net assets and the carrying value of the stock company, and an increase in share capital - and their nominal value. Thus, if a company chooses instead of paying dividends to most of the profits directed to the development, in this case, shareholders will not lose anything.

     It should be borne in mind also that the increase in funds for the development increases the volume of sales and business growth in its profits. That is why in the world about half of corporations do not pay dividends, and shareholders attracts ever-increasing shareholder value. In addition, the newly established joint stock companies, as a rule, do not pay dividends in the first five years.

     Fund "Targeted financing " concentrating the funds received from the budget, and sectoral and intersectoral special-purpose funds from other organizations and individuals for implementation purpose.

     The second group of funds (Fig. 3) - this is leveraged funds. In a market economy, no company cannot and should not do without borrowing, as their use enhances the effectiveness of their own funds, meeting the specific needs of the enterprise. Borrowed funds are leveraged by which increases the profitability of the enterprise.

     The variety of these tools enables their use in different situations, mainly in the following cases:

• To increase the profitability of own funds;
• If there are insufficient equity;
• The formation of the variable portion of current  assets;
• While covering some costs, uneven wearing at certain periods;
• As a source of investment;
• In some other cases.

   Each of the above sources of leverage for the company plays a role. At the same time, the enterprise should pay special attention to the development of commercial loans and leases. Commercial credit is the result of delayed payment provider's customer. He may be issued a bill of exchange, or simply by the contract. Bill for a number of good reasons not yet received sufficient development, without which market relations cannot develop normally. Making a commercial loan agreement may involve a specific alternative for the buyer.

   Accounts payable - is also a pool of money borrowed funds, as the company has a turnover of other people's money as a result of nonpayment. 
Currently defaults reached huge proportions. They have a sharply negative impact on the financial position of companies, their profitability and hence on the economy as a whole.

   The third group of funds (Figure 4) - a fund of funds. These funds have a dual character, as, on the one hand, while they are in the back of the enterprise, and the other - they belong to his employees (dividends and consumption fund). The confirmation of the duality is that, firstly, in the balance sheet they are in section VI of liability, among short-term obligations, and secondly, by some calculations, they are excluded from the obligations of the enterprise.

     Consumption fund - a monetary fund, which is formed at the expense of net profit and is intended primarily to meet the material needs of employees, to pay dividends (in joint stock companies), for payment in some cases, fines, penalties for violations caused by the company. In the formation of the consumption fund company must take into account one very important rule: profit before tax growth should be higher than the rate of growth of consumption, including wages.

     Operating cash funds, which form the fourth group of funds, are now periodically (Fig. 5). Twice or once a month, the company formed to fund the payment of wages. Its basis is the payroll.

     To ensure timely payment of wages the company solves a number of tasks.  For these purposes, the account accumulates the necessary funds, and in their absence the company turns to a bank for a loan to pay wages.

     Equally important is determining the optimal timing of payment of wages  and the number of days required to do so.

     Usually once a year (at least once per quarter) should be the fund is paying dividends to shareholders.

     Periodically, the company organizes fund payments to the budget of various taxes. Late payment in the budget now entails penalties.

     The fifth group of funds of enterprises should include funds, which are formed by different sources (Fig. 6).

     Working capital fund of funds is a major determining the financial condition of the enterprise and ultimately its financial results. The sources of its formation are  their own, borrowed, borrowed funds, and accounts payable.

     Fund fixed assets is formed due to debt and equity sources.

     Investment Fund is designed to modernize and expand production, which requires constant development. It is formed from the following sources:

• sinking fund, a trust fund money dedicated to the simple reproduction of fixed assets;
• accumulation fund formed by contributions from profits;
• borrowed and borrowed sources.

   Monetary Fund is  formed in enterprises receiving foreign exchange earnings from exports and buying foreign currency for import transactions. This fund has no independent target value. He stands as far as foreign exchange operations have their own characteristics. Therefore, for the enterprise open foreign exchange transactions of commercial banks licensed by the Central Bank's foreign currency accounts.

   In addition to the, enterprises and other funds created funds: to pay off bank loans, development of new technology, research, contributions to the parent organization. 
4. ANALYSIS OF FINANCIAL PERFORMANCE BASED ON THE BALANCE

   The study of the financial condition begin with a study of the composition and structure of property companies according to the balance sheet (Appendix 1). 

   Balance allows us to give an overall assessment of change in the entire property of an enterprise, to allocate part of its current (mobile) and noncurrent (immobilized) funds to study the dynamics of the structure of the property. Under the structure refers to the percentage of individual groups of assets within those groups.

   Analysis of the dynamics and structure of the property makes it possible to set the size of the absolute and relative increase or decrease the total assets of the enterprise and its individual species. Increase or decrease the asset indicates expansion or contraction of business activity.

   Analyzing the reasons for the increased value of the property business, you must consider the impact of inflation, a high level which leads to significant deviations of nominal balance sheet data from the real ones. International Committee on Accounting Standards Board issued a special standard - "Financial Reporting in countries prone to hyperinflation." It requires reporting recalculate the balance of indicators based on indexes that reflect the price movement.

   In accordance with the requirements of international standard must take into account the inflation factor in the formation of fixed and current assets. In the Russian practice of accounting by inflation only in the formation of the book value of fixed assets. Their initial cost is revalued, then the asset is recorded in the accounting and reporting for the replacement cost. Therefore, the analysis necessary to determine the magnitude of increase in the value of these assets due to revaluation. To do this, examine the data accounting records of the account "Fixed Assets" and "additional capital".

   Revaluation of inventory, finished goods and goods in the national accounting and analytical practice has not yet performed. Therefore increase their value, of course, is influenced by the inflation factor.

   Minimizing economic activity may be due to reduced consumer demand for goods, services and activities of the enterprise, limited access to the market of raw materials, intermediate products or the inclusion of active commercialization of its subsidiaries by the parent company. Changes in the structure of the property create some opportunities for basic and financial performance and impact on total asset turnover.

   Indicators of structural dynamics reflect the proportion of participation of each type of property in the general change in total assets. Their analysis suggests that, in which assets are invested again attracted financial resources or assets that have decreased due to the outflow of financial resources.

   Market conditions require management company at any time be able to quickly repay its current liabilities that is to be liquid. Company liquidity if its current assets than current liabilities.

   In practice, when analyzing the economic condition of the company a lot of attention paid to the analysis of the intensity of working capital, since it is the speed of turning them into cash depends on the liquidity of the company and its chances of success. This raises the need to establish and justify the criterion of efficiency of working capital and methods of their determination.

   The measure of working capital (business activity) can be a relative minimization of working capital advances, providing the production of the highest possible performance and financial results of the company.

   Based on this criterion, the efficiency of working capital can be characterized by a system of indicators: the ratio of an advancing growth in sales volumes over the growth of working capital balances, an increase in product sales per ruble of working capital, the relative savings in working capital, accelerated turnover of working capital. The calculations of these indicators are produced on the basis of the financial plan of the enterprise, the form number 1 and number 2 forms. 
The acceleration of turnover of working capital means savings of socially necessary time and release of funds from the market this allows the company to manage a smaller sum of working capital for the sale of goods and services or the same amount of current assets to increase sales.

   Factors accelerate the turnover of working capital are inventory optimization, effective use of the material. Labor and financial resources, shorter stay in current assets in the calculation.

   Indicators of turnover can be calculated for all working capital as a whole and separately for inventories are m receivables. The actual sale turnover is calculated on the basis of the form № 2 (Appendix 1). 

   Average balances of current assets is determined based on the balances at beginning of year, the quarterly dates and at the end of the year as the average chronological value.

   Targets turnover of the enterprise may be determined only by the material working capital.

   Indicators of turnover of working capital compared with those of previous years, as well as routine turnover.  

   If working capital turnover in days for the year less than last year, it shows the acceleration of the turnover of working capital, the more efficient use. Slowing turnover of working capital indicates an inefficient use.

   In the analysis it is important to establish not only the direction and magnitude of deviations turnover of working capital during the year compared with last year, but as these variations affect the amount of working capital. As well as the size of the release or download additional working capital as a result of acceleration or deceleration turnover of circulating funds compared to last year on a day the amount of sales turnover for the year and the number of revolutions.