Current assets of the enterprise: structure and parameters of valuation

One of the classical processes of the economy is the turnover of capital. It consists of two stages:

- finding the value of labor objects in the inventory of the enterprise;

- the passage of the stages of work in progress and the costs of future periods.

This turnover is realized in the production process.

The main attribute that participates in this turnover is the financial means that the enterprise or the company advances to circulating funds. Such funds were named in the economic theory - the current assets of the enterprise. The most common indicator for this economic category is the concept of working capital, which denotes a certain amount (part) of the total production capital of the enterprise, which is fully consumed for one complete turnover, transfers the cost to the result of production and is returned to the enterprise in the form of money.

Working capital includes funds spent on the acquisition of consumer goods, and costs associated with the payment of labor of workers. Accordingly, it exists in two spheres - production and circulation.

Passing into the sphere of circulation, it is part of the capital circulation, which, in turn, is also represented by two types of capital - commodity and money. And here the working capital passes through two stages - it is included in the value of the output and in the composition of cash. After the sale of manufactured goods, the funds are spent to purchase a new batch of the necessary resources for reproduction and wages.

Proceeding from this understanding of the structure and genesis of the turnover process, we state that the current assets of the enterprise are actually circulating capital and its circulation, represented in monetary form. The process of their movement can be represented in the form of the following algorithm: money - production stocks - incomplete production - finished goods - money. From this scheme it can be seen that the company's current assets include:

- stocks of raw materials, components, energy carriers, that is all that can be used during the production process;

- parts and assemblies that are still in processing and in the process of assembly, that is, what relates to work in process;

- the objects of labor used to launch the production process and maintain it;

- expenses of future periods - resources that the enterprise invests in the preparation of the following production cycles;

- those current assets of the enterprise, which it assumes for use in the development of new products.

By nature of origin, they are classified into own and borrowed. The first is constantly in the hands of the enterprise, and it can dispose of them at any time. The latter, as a rule, represent credit resources and are designed to solve temporary problems. In addition, in circulation there are also attracted funds, which have different sources, but above all they are resources of targeted financing.

How effectively the current assets of an enterprise function, depends on the nature of the ratio of working capital and capital circulation. The higher its share, the higher the efficiency of current assets, and, conversely, vice versa.

In addition, the assessment of current assets of the enterprise includes other indicators. The main of them are material consumption and turnover, which are characterized by a number of factors:

- coefficient of turnover ;

- time duration of turnover;

- the coefficient of loading of funds;

- the recoil coefficient;

- release parameters.

The relationship between components and stages of turnover is called the structure of current assets.