V.V. Dluskaya, Alkhateeb A.B.

PhD in Economics, Associate Professor

Moscow State University of Economics, Statistics and Informatics (MESI), city of Minsk

THE PROBLEM OF ENSURING WORKING CAPITAL

BELARUSIAN COMPANIES

 

 

Key words: management, capital, stocks, industry, rationing of receivables

Transformation of the Economy of the Republic of Belarus in the post-Soviet period caused a series of problems. First of all, have been lost commodity markets because in the period of planned economy more than seventy percent of the products manufactured in the Belarusian SSR, was realized in the neighboring republics.

In - the second, the introduction of national currencies for some time to suspend deliveries of necessary raw materials for Belarusian producers. Insufficient supply of production material resources has led to a decrease in the average annual growth index for all industries. Particularly affected the manufacturing industry.

In the administrative model of management undoubtedly the material - technical support for enterprises play a leading role, however, encourage enterprises to multiply a value circulating capital have been neglected. Replenishment of working capital was considered a state task, so the company did not consider necessary to seek develop independently of production.

The problem of the availability and efficient use of working capital, despite a substantial list of bibliographic references covering the methodological approaches and measures to improve the efficiency of their use, as well as planning and analysis remains relevant.

The formation of an effective system of management of working capital reflects a number of issues that are closely linked with each other. For example, external factors - fiscal policy, the fall and rise of exchange rates, the political situation in the country, etc. a direct impact on production - the economic activity of the enterprise, namely, the possibility of using those or other management practices. With increasing raw material prices, companies are trying to increase the value of safety stock, which leads to the "freezing of funds"; _ event of insolvency of customers arises need to involve unjustified bank credit; unstable economic climate, conditions of uncertainty, increase the risk bankruptcy of the enterprise. The negative factors listed above do not allow enterprises of Belarus to develop only correct working capital management methodology allowing to achieve positive results in using it. Planning for the needs of organizations in material resources woodworking industry carried out without taking into account the growth of prices on the basis of historical data, which leads to the failure of monetary resources.

For enterprises and organizations of the Republic of Belarus woodworking industry need to develop a qualitatively new approaches to improve the efficiency of planning and the use of working capital.

We propose an algorithm for of planning of working capital, in particular, stocks of raw materials is adapted to modern conditions of managing the woodworking industry of the Republic of Belarus.

The algorithm is the following sequence of actions:

1. Analysis of the balances of material resources:

·        production purposes;

·        nonproductive.

2. Analysis of the availability of surplus funds in the enterprise:

·        profit;

·        sinking fund.

3. Determination of the norm of receivables:

·        min value;

·        max value;

·         Norm of receivables.

4. Determination of the value of inventory reserves of raw materials in connection with the rationing of receivables:

P↑RM= P↓RR*SMa/Rf, where

P↑RM - reserve increase of raw materials;

P↓RR - reserve reduction of receivables;

SMa - stocks of raw materials actual;

5. The Plan of  purchasing and sales:

·        quarterly;

·        month.

6. Assessment of possible changes in the performance of the enterprise:

·        profit;

·        profitability.

Working capital turnover ratio the proportion of the cost of manufacture and sale of products.

The last point is fundamental, since the purpose of any business is to increase the volume of production and profit.