Comprehensive analysis of the efficiency of the use of industrial enterprise working capital

Abstract

Introduction. One of the important issues of financial management at the enterprise is the management of working capital. The policy of working capital management of enterprise is directed to ensure long-term productive and efficient financial activity of the enterprise, which is achieved through a search for a compromise between the risk of liquidity loss and efficiency of work. The implementation of this policy involves determining the required level of current assets and optimizing the structure of the sources of their financing.

Purpose. The article aims to explore the possibility of combining different methods of analysing the efficiency of using the working capital of enterprise to improve this process, which is based on systematization of existing proposals on this issue.

Method (methodology). Indicators which characterize the turnover of funds or their sources, where the business activity of the enterprise in the financial sector is shown, have been calculated. The calculations have been carried out for period of 2015-2017 on the materials of LLC "Rosma" (Chernivtsi). Calculations in absolute terms are supplemented by calculations of deviations. It gives a possibility to investigate the changes of indicators in dynamics. A factor analysis of working capital changes has been done. The calculation of other indicators, which help to assess the efficiency of the use of working capital of the investigated enterprise, has been proposed.

Results. The interpretation of calculated results has been proposed. It is shown that the duration of the stay of funds in circulation is influenced by external and internal factors. Among the external factors we can distinguish the following ones: the scope of enterprise activity, industry affiliation, scale of production, economic situation in the country.