Instruction

1

Calculate asset turnover, then the duration of one

**turnover**. In turn, in order to calculate asset turnover, divide the amount of revenue in the amount of the average value of assets: ber = B/A, where a is the average annual cost of assets (sum of total capital); – the value of revenues for the analyzed period (e.g., year).The obtained value will show you what amount of**turnover**s produce cash invested in assets (property) of the company for the year. Higher values of this indicator increased business activity of the company.2

Divide the duration of the period under review, the turnover ratio of assets, so you determine the duration of one

**turnover**. By this calculation note that the smaller is the amount of this value, the better for the company.3

Calculate the coefficient of consolidation of assets involved in

**trafficking**i.e. It is equal to the average sum of all**the turnover of**assets during the reporting period divided by the revenue of the organization. This ratio can show you what amount of the**turnover of the**funds were spent for one ruble of sold goods.4

Determine the duration of one operating cycle. It is equal to duration of

**turnover**and raw materials + duration**turnover**as of all finished products +**the turnover**of work in progress + the duration of**the turnover**and the accounts receivable. This indicator must be calculated over several periods. In that case, if evidence of its growth, it will say on the deteriorating situation of the company in the sphere of its business activity. With the possible slowing of capital turnover.5

Find the length of one funding cycle. To do this, subtract the duration of the operating cycle the duration of one

**turnover**and accounts payable. In turn, the smaller value will have this index, the greater will be the business activity of the organization.