The capital of high turnsManagement of working capital - a basis of successful activity of the company and the test for professional suitability for the financial director. For Russia last years it is a work direction all becomes more actual - as nearby reserves are already settled, CFO it is necessary to resort to more original methods.
working capital (on - anglijski it is called working capital, “ the working capital “) Is a difference between current actives and current passives.
From this definition follows that management of working capital consists of management of current actives and management of current passives.
Principles of management of working capital are rather similar to principles of management of a debt receivable which is one of components of current actives (see the Council of Federation ¹18/ 2003 ). Current actives should be supported in constant movement, and than faster they dvizhutsja (that is the faster their turn), the smaller will be the sum necessary for their financing. As to accounts payable (one of the major component of current passives), a golden rule of the reference with it (and its references) - the greatest possible increase in term of repayment of this debt without damage to the developed business relations. If the company to which you should, perceives your delay of payment easy, means, you operate correctly. Similar corrected: pay in time, but not earlier - concerns and other components of current passives: to advance payments of clients, short-term credits, taxes. Actually, from similar compromises or optimum searches - “ do not pay to the supplier as it is possible longer, but do not anger him “ “ hold a minimum of money (stocks, the goods in a warehouse), but remember that there should be an insurance reserve “ - the management skill working capital also consists.
The the smaller sum (without damage to liquidity and a business continuity) working capital will be required the companies, the more money will be released for other purposes. The role of financing at the expense of internal reserves grows in more and more becoming tougher conditions of the Russian market. An example of company Dell which became the leader of the American computer market after has finished current actives to a magnificent minimum, became already legendary. The known expert in the field of management by Tom Piters in the latest book writes that for maintenance of sales of one day of company Dell - and it is a mullions-strong turn - enough warehouse area 3 h 3 metres. In our market to repeat such miracles hardly it will be possible, but also to forget about such examples it is not necessary.
we Long - to the
There are general principles, but concrete priorities of each company in management of working capital are frequently defined by specificity of branch. So, for Gennady Lomasova, the financial director of the company “ Komus “ most of all problems accurately expressed seasonal prevalence of sales in some directions delivers. Demand for the goods of school assortment sharply increases in September, and on polygraphic grades of a paper and a cardboard - in November. These sharp jumps compel to prepare for them, forming stocks in good time. Result - falling oborachivaemosti, growth of requirement for credits for overcoming of cash ruptures. As the main distinctive feature of the sphere of business seasonal prevalence financial directors of the computer market, the market of alcoholic production, the audio market - consider, video - and home appliances.
According to the director for economy and the company finance “ IzhAvto “ Natalias Harchenko, in mechanical engineering features of a financial cycle are influenced by a long production cycle (so, presence of large supplies TMTS and “ nezavershenki “) . For “ IzhAvto “ a problem also are usual for motor industry seasonal falling of demand. Duration of a cycle is characteristic and for building.
Plurality of consumers becomes the reason of a headache from - for debt receivable return. The organisation of control of terms of payment together with low payment discipline are capable to affect seriously indicators oborachivaemosti. Sometimes problem scales impress. Yury Mukhin, the director of department of the finance “ Uralsvyazinform “ says that clients of the company are millions physical persons and hundred thousand legal. Similar problems are tested by electric power industry. Roman Lenkov, the assistant to the general director under Open Society finance “ Permenergo “ Mentions additional complexities - legislatively underfulfilled order of the termination of delivery of power resources that deprives of the company effectively to use the most effective lever distsiplinirovanija customers - knife switch turn. In the same number there are also airlines. By words Elenas Ikchurinoj, financial directors “ the Ural airlines “ realisation of company services is carried out through the branched out network of agents, it is difficult to track conscientiousness and which solvency.
Konstantin Ashin, CFO “ Ivhimprom “ considers as the main problem too small quantity of suppliers: “ In chemical branch each of the basic products is made at the best by two - three companies. We should have additional stocks of raw materials, idle times from - for untimely deliveries of raw materials " differently are inevitable;. Sometimes the Russian distances become a problem. Alexander Andrians, the financial director “ Severstal “: “ Remoteness from raw sources (which are located in Murmansk area) and power (Kuzbas, Vorkuta) demands the maintenance of the big rests of ore and coal that leads to delay oborachivaemosti working capital “.
In some branches of the company face with disproportionate “ force “ counterparts who depending on a configuration or demand a full advance payment of the services, or unprecedented delays of payment receive. But hardly who presumes to refuse delays to network retail (all fights, for example, " are memorable; Pjaterochki “ and other networks with the international concerns for conditions of deliveries). Elena Ageeva, the financial director of the company “ Golder - Elektroniks “ (The owner of trade mark Vitek) says that in their market of a condition dictate networks, and each financial director of the company - the manufacturer should consider this fact. The second category “ market dictators “ - monopolists. The Russian Open Society “ EU of Russia “ Open Society “ Gazprom “ Russian Railway Open Societies very often insist on an advance payment.
Except branch specificity there are uncontrollable the companies the factors, making serious impact on results of management of working capital. Here the list of most important of them in a statement Elenas Mjakotnikovoj, the financial director of the company “ Sonik Duo “: change of the competitive environment (introduction of credit tariff plans at competitors or their active advancement); changes in the legislation (impossibility of acceptance of the VAT to offset in the presence of target credits); bank crisis or “ kvazi “ - bank crisis. With this list agree very many CFO. Over this list of the company of communication and electric power industry name neotregulirovannost payments from state employees and exempts.
the Set of the financial gentleman
Branch specificity forces financiers on - to a miscellaneous to place accents in work with working capital, but base technologies nevertheless are identical. The obligatory minimum which everything as show results of our poll have got practically, includes work with a payment calendar (which the requirement for money allows to trace daily to expect cash ruptures), use of possibilities of corresponding budgets (first of all the budget of movement of funds, BDDS). In the same number - measures on control over payment of invoices of debtors. These measures vkljuchajutv sebjavvedenie reports povozrastu a debt receivable, so-called feet - sheets with which help the refusal moment in deliveries to the buyer who has exceeded a limit of saved up debts, and introduction of a special post of the controller behind a condition " is defined; debitorki “.
In the same number of the most popular tools on management of working capital - monitoring of the reached results by means of calculation of factors. The majority of financial directors have specified that they make this procedure monthly (some, truth, arranges quarterly periodicity). With small backlog from leaders - conducting a credit policy which enters rigid enough rules of definition of discounts and delays of payment for buyers (is considered history of mutual relations, the share in a total turnover, and etc.) . And our poll shows that historically the first entered measures on management “ oborotkoj “ there was a calculation of factors and conducting a payment calendar. For example, Olga Beljusova, the director for the finance and Open Society economy “ JArpivo “ remembers that a payment calendar its service of the beginning to conduct in 1995, when at “ JArpiva “ there was a new owner - Finnish - the Norwegian company Baltic Beverages Holding AB. Thus, for example, the credit policy of the company has got definitively ordered kind in the spring of this year. The system of budgeting of the Russian companies too is very young. Ivan Pirozhkov from “ the Anchor “ tells that now the company is occupied by introduction of the uniform corporate standard of the administrative account and the reporting.
it is surprising, but faktoring
Such product widely advanced recently as faktoring is applied by only one company from 35 interrogated. About why it has not received a wide circulation, we already wrote in Council of Federation ¹33/ 2004 . This time we have asked to explain the position of the unique user of this service.
Elena Ageeva, the financial director of the company “ Golder - Elektroniks “ explains: in advantage faktoringa have worked two serious factors. In - the first, it is market force in their market network roznitsy. Networks demand the big delays, and to refuse to them a present situation it is impossible. In - the second, banks which show consideration for quality “ debitorki “ The company resorting to services faktoringa, are most favourable just to the companies network roznitsy - information on their financial condition thanks to huge number of counterparts enough. So the situation has simply pushed “ Golder - Elektroniks “ to use faktoringa. Among obvious inconveniences Elena Ageeva names complexity of document circulation. But about superdearness faktoringa she considers hearings strongly exaggerated. One more advantage Elena Ageeva sees in flexibility: “ Pledge in a case faktoringa is not necessary. Besides, we give documents on faktoring when it is necessary for us. If with liquidity all is normal - we do not use this service “. In the conditions of the expressed seasonal prevalence of sales it is convenient.
It was found out that many companies apply tools which nobody expected to see among leaders. It, for example, tenders at purchases. According to Elena Ageevoj, its company suits tenders in case of large expenses. Now “ Golder - Elektroniks “ holds such tender on ERP - system. The tender is necessarily arranged and at a choice of the candidate on advertising campaign carrying out. Michael Zhechkov, CFO “ the Siberian geophysical company “ (drilling of chinks), has told that to its companies it is spent two kinds of tenders. By rules any purchases for the sum over $1000 undergo through tender procedure. If the contract large (for example, on overalls purchase), is held the high-grade tender with departure of representatives of sellers into place and demonstration of samples. But, naturally, customers will refuse to participate in competition where it is a question of the sums hardly more than $1000. Therefore the regulations provide carrying out of the internal tender. In its course the initiator of purchase answers questions of the tender commission, having given in its order the comparative table in which should be estimated not less than three offers. Olga Beljusova says that in its company tenders have total character and it is difficult to find an example of purchases which pass without this procedure.
the Wide circulation - that is unexpected - have received various kinds of electronic payments. In overwhelming majority of cases it is a question of system installation “ the Client - bank “ which many banks offer. But sometimes the companies go further under own initiative. For example, Michael Zhechkov understands as electronic payments and the system of the electronic coordination adjusted in the company, and passage of payments. The matter is that at “ the Siberian geophysical company “ two branches, but their payments pass through the Moscow office. In a paper variant it is long enough and tiresome procedure - inquiries of copies of contracts, invoices, certificates about performance of works. Now all passes in an electronic mode. All accounting conductings and necessary changes in legal documents and documents on budget execution pass in coordination. For this purpose, truth, was required to spend huge work on transfer of all contractual base to electronic archives. But Michael Zhechkov considers that efforts were worthy of it.
It was found out also that many companies, contrary to a popular belief, periodically have time available assets. However use this reserve they cannot - in the market there are no offers.
SEARCHES of RESERVES (. pdf)