Current assets are enterprise resources that are not intended for long-term use. These include inventories and costs, short-term receivables, and other liquid assets that can be converted into cash during a production cycle or year. You can find current assets using the company's accounting records.
Instructions
Step 1
Open the balance sheet of the company for the date you need. The value of current assets at the beginning and at the end of the period is indicated on line 290 (total of section II of the balance sheet). Determine their dynamics over the period by calculating the difference between these figures.
Step 2
Calculate the average value of current assets for the period using the formula: ATC = (AT1 + AT2) / 2, where: AT1- current assets of the company at the beginning of the period; AT2- current assets of the company at the end of the period. Then you can analyze the effectiveness of their use.
Step 3
Calculate the profitability of the company's assets using the formula: Pa = P / Ats x 100%, where: - P is the net profit for the analyzed period; - ATS is the average value of the company's current assets for the period. and losses.
Step 4
Divide the amount of the company's net profit by the calculated average asset value of the company. Multiplying the resulting coefficient by 100%, you will get the return on assets of the enterprise for the analyzed period. This indicator characterizes the amount of profit attributable to each ruble of their value. It is considered optimal if it is equal to 18-20%.
Step 5
Find the turnover of current assets using the formula: About = (V / ATC) * Kdn, where: B - sales proceeds for the reporting period (excluding VAT); ATC - the average value of the company's current assets; Kdn - the number of days of the reporting period. Take the revenue from the income statement for the analyzed period. Dividing it by the average of current assets, multiply the resulting figure by the number of days in the reporting period.
Step 6
Calculate the turnover of current assets for the previous reporting periods, analyze the dynamics of changes. The lower the score, the better. The economic efficiency of reducing the period of asset turnover is expressed in the release of additional funds from circulation and, as a consequence, in an increase in the profit of the enterprise.
Step 7
Keep in mind that less inventory is required as the turnover period decreases. At the same time, storage costs are reduced. Accordingly, a slowdown in turnover leads to an increase in the value of current assets and additional costs. Thus, timely calculation and analysis of the state of assets will allow making the right decisions on managing their use.
