The company's own circulating assets are those funds that have been invested in the current assets of the company. These are items of labor and raw materials, finished products in the company's warehouses, as well as cash. To calculate your own working capital, you can use several methods.
Instructions
Step 1
Calculation based on balance data is the simplest, fastest and most convenient. In official calculations, the formula prescribed in the official document is used - Methodological provisions for assessing the financial condition of an organization. According to this formula, to calculate the company's own working capital, it is necessary to subtract the amount of section I from the sum of section III of the balance sheet. In order to calculate the company's own working capital, it is more practical to add long-term loans and borrowings to the amount of own funds. The fact is that long-term borrowed funds are traditionally used to purchase fixed assets, so you can easily take them into account in your own working capital.
Step 2
Calculation by mathematical formulas is not much more difficult. There are several such formulas, and each of them allows you to calculate your own working capital (SOS). In order to determine the SOS, subtract non-current assets from the sum of their sources. You can also calculate your own working capital using the formula, taking into account long-term loans. Sum up your own and long-term borrowed funds, and then subtract non-current assets from the resulting value. Finally, when using the third option, take the amount of current assets and subtract the amount of short-term debt from it.
Step 3
Despite the fact that the exact meaning of all mathematical expressions for calculating SOS differs in meaning and content, these differences are quite subtle, and are more important in the science of financial analysis, and not for practical application. Therefore, all calculation options will give a correct estimate of the amount of own circulating assets. The main thing is, when determining the dynamics that have occurred over the last 2-3 years of the enterprise's activity, evaluate the value of your own current assets in the same way.
Step 4
To assess the sufficiency of working capital at the enterprise, calculate the financial stability ratios, which can also be calculated both according to the balance sheet data and according to the corresponding formulas.
