To the circulating capital of an enterprise, contrary to the fixed assets, all pieces of property, which do not remain longer time in the enterprise, belong but to be rotated and/or converted, thus by and outlets of a constant change be subject. Among the circulating capital among other things inventory, demands, contents of the cash and bank assets ranks. The fixed assets stand also, on the assets side in the balance, like.

Classification

The circulating capital covers pieces of property, which go through procurement, manufacturing and paragraph. Thus finished products result from the constituted materials from production. To be arranged the sold products will to demands opposite the customer and according to payment to money in the cash or on the Bankkonto.In of the balance is the circulating capital as follows:

Circulating capital:

I. . Raw, auxiliary and Betriebsstoffe2. incomplete products, incomplete Leistungen3. manufactures products and Waren4. performed pre-payments

II. Demands for degree and other Demands from supplies and Leistungen2. Demands against connected Unternehmen3. Demands against enterprises, with those a participation relationship besteht4. other fortune articles

III. GradesWertpapiere1. Portions to connected Unternehmen2. own portions

IV. Degree cheque, cash in hand, Federal Bank and post office credit balance on current account, assets with credit institutes

Legal regulations

According to "§ 266 HGB exp. 2 B are arranged. In the apron of the balance production a stocktaking of the inventory is necessary, which is usually done via a stocktaking.

Statement analysis

In the statement analysis the net circulating capital plays an important role:

Net circulating capital

The net circulating capital (angl. working capital) the capital, which generates conversion for an enterprise, without causing capital costs strictly speaking, is net. It computes itself from the circulating capital less the liquid means less the commitments from supplies and achievements. A negative net working capital means that suppliers before-finance conversions.

Absolute index:

{net \ working \ capital} = {Umlaufverm \ ddot ogen} - {liquid \ means} - {short term, \ not \ \ outside capital bearing interests}

Relative:

{net \ working \ capital} = \ frac \ * \ 100

Contrary to the working capital it stands particularly in the focus of Finanzanalysten.

Net financial circulating capital

Net financial circulating capital = financial circulating capital (liquid means + demands) - short term outside capital (commitments, etc.)

Articles in category "Circulating capital"

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