The article discusses the indicators of business activity of an enterprise through the assessment of profitability and capital turnover by the example of an enterprise. The assessment of the turnover of payables and receivables of Kaztemirtrans JSC was carried out. Analyzed the effectiveness of the use of working capital of the organization. According to the results of the analysis, conclusions and recommendations were made on how to improve the efficiency of the use of funds of the organization.
Transport in Kazakhstan Transport in Kazakhstan is of paramount importance. The vast territory of the country, 2.7 million km?, low population density, disunity of the centers of industry and agriculture, as well as remoteness from world markets, makes the possession of a developed transport system vital for Kazakhstan.
The value of rail transport in Kazakhstan is very high. Kazakhstan railways provide 68% of the total freight turnover and over 57% of the country's passenger traffic. The length of railways in Kazakhstan exceeds 15 thousand km. Through 15 junction points (11 with Russia, 2 with Uzbekistan, 1 with Kyrgyzstan, 1 with China) connect the railway system of Kazakhstan with neighboring states.
The rail systems of Russia and Kazakhstan are extremely interdependent. As part of the transport development strategy in Kazakhstan in 2016, 1,600 km of new ones were built and 2,700 km of existing railway sections were electrified.
The joint-stock company Kaztemirtrans is the largest freight car fleet operator in the Republic of Kazakhstan. Created on October 21, 2003 as part of railway transport reform in Kazakhstan, it is a 100% subsidiary of the National Company Kazakhstan Temir Zholy JSC.
The organizational structure of "Kaztemirtrans" JSC consists of the central office, 2 specialized and 13 regional branches operating in practically all regions of the Republic of Kazakhstan, as well as 4 car-repair depots.
"Kaztemirtrans" JSC being a large owner of the inventory of freight cars of the Republic of Kazakhstan (about 63000 units), "Kaztemirtrans" JSC carries out more than 56% of freight traffic from the total rail traffic on the territory of Kazakhstan.
The inventory fleet of Kaztemirtrans JSC is represented by freight cars of all types and kinds. The company's activities include such areas as providing rolling stock to JSC NC "Kazakhstan Temir Zholy", repairing, upgrading and updating freight wagons, organizing freight transportation on individual routes, providing freight forwarding services, including transit traffic, providing freight wagons for rent [3].
Kaztemirtrans JSC in the framework of the implementation of state programs for the Republic of Kazakhstan to join the 50 competitive countries and join the World Trade Organization (WTO), the financial statements of Kaztemirtrans JSC are aligned with international financial reporting standards (IFRS). The company introduces modern management systems. So, in 2005, Kaztemirtrans JSC introduced a Quality Management System based on the international standards ISO 9001: 2000.
In May 2008, the joint-stock company was presented with international certificates of the Environmental Management System of the international standard ISO 14001: 2004 and the Management System of Occupational Safety and Health of the international standard OHSAS 18001: 2007.
The rating agency Standard & Poor's in May 2008, JSC Kaztemirtrans confirmed the international credit rating of BB + (international scale / Stable).
In order to integrate into the global transport markets, expand the international partnership, develop the transport potential of Kaztemirtrans JSC, representative offices have been established in the city of Urumqi (PRC) and in Moscow (the Russian Federation). In connection with the increase in freight traffic to China, an agent office was opened at Dostyk station.
The company's projects include the development of new strategically important routes, an increase in freight traffic, the renewal of a rolling stock fleet, the introduction of innovative technologies aimed at improving the quality of services provided by both large shippers and small and medium-sized businesses.
The company is a full member of the Association of National Freight Forwarders of the Republic of Kazakhstan, as well as an individual member of the International Federation of Freight Forwarders Associations (FIATA).
In accordance with the Law of the Republic of Kazakhstan "On Accounting and Financial Reporting" dated February 28, 2007 No. 234-III, the financial statements of Kaztemirtrans JSC are prepared in accordance with international standards and represent information about financial position, performance results and changes in financial position. the company.
Financial statements of Kaztemirtrans JSC include:
- a statement of financial position;
- a statement of profit and loss and other comprehensive income;
- cash flow statement;
- statement of changes in equity;
- accounting policy information and explanatory note.
The procedure and methods of accounting for the preparation of financial statements and additional requirements for it in the company are established in accordance with international standards and the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting. The audit of the annual financial statements of Kaztemirtrans JSC for 2016-2017 was conducted by an independent auditor of Deloitte LLP in accordance with international financial reporting standards.
Independent Auditors' Report of Deloitte LLP contains an opinion that the financial statements of Kaztemirtrans JSC and its subsidiaries for the year ended December 31, 2017 are reliable in all material aspects in accordance with international financial reporting standards. In the audit report of Deloitte LLP, no reservations and negative opinions were made.
The net loss of JSC "Kaztemirtrans" and its subsidiaries for 2017 was at the level of 16,322,682 thousand tenge, for comparison, the net loss for the last year amounted to 14,987,509 thousand tenge.
Consolidated and unconsolidated financial statements of Kaztemirtrans JSC for 2017 are posted in the Financial Reporting Depository for public interest organizations in accordance with the Rules for the submission of financial statements to the depositary, approved by Resolution of the Board of the National Bank of the Republic of Kazakhstan No. 26 dated January 28, 2017.
The main reason for the development of the theory and practice of assessing the business activity of business entities at the end of the twentieth century was the need for a flexible and continuous response to the goods market, its demand, the introduction of new competitive ideas into the work based on a comprehensive study of the effectiveness of using the financial resources of commercial organizations .
The restructuring of the economic mechanism, its focus on market relations, caused a revision of the traditional understanding of many important economic categories and filling them with a completely different content and practical essence.
The emergence and development of the term "business activity" is dialectically predetermined and practically justified, since it generally reflects the essence of changes in the economy, when there was an urgent need to compare the size of the resources invested with the intermediate and final results of their use, directly affecting the financial condition of a business entity by him.
At present, the most complete and consistent study of the economic activity of an organization's economic activity is given in the theory of complex economic analysis. All sections of the current, perspective and operational analysis are devoted to the question of analyzing the business activity of a company.
The economic analysis of the business activity of an organization is accompanied by the execution of a large volume of various calculations. In addition, in the process of analysis, various types of estimates, groupings, comparisons and sorts of source data are
Accounts payable turnover ratio (2016) = 793 / (78/2 + 88/2) = 9.55
Payables turnover ratio (2018) = 834 / (88/2 + 89/2) = 9.42
The data show that the turnover of accounts payable was stable during 2016-2018. The value of the indicator varies between 9.42 and 9.55 revolutions per year. Comparing the amount of payables and receivables can be summed up that the company uses payables to finance its own debtors, and also uses part of these funds to finance other assets.
Receivables are a source of repayment of accounts payable of the enterprise. If the company freezes the amount in settlements with buyers and customers, it can feel a large cash deficit, which will lead to the formation of payables, late payments to the budget, extrabudgetary funds, social insurance and security contributions, wage arrears and other payments.
Therefore, to improve the financial condition of each company, it is necessary to monitor the ratio of receivables and payables, find ways and means to reduce the amount of debt in the enterprise.
Analysis and assessment of the business activity of JSC "Kaztemirtrans" allows you to identify how effectively the organization uses its funds, to assess the property status of the company, the ability to repay the liabilities incurred, the sufficiency of its own capital, etc.
Another way to improve the financial condition is a reasonable reduction in inventory levels. The company may have a prospective decrease in stocks by 9% due to the introduction of systematic inventory management. By reducing inventory in the organization, cash will increase and accounts receivable will decrease. Reduced receivables will accelerate turnover. With the acceleration of turnover decreases the time between the purchase of goods and the receipt of revenue, resulting in increasing profitability [5, 133].
During the inventory of fixed assets of "Kaztemirtrans" JSC, it was revealed that there is unused equipment on the balance sheet of the enterprise in the amount of 1,270 thousand tenge. Its implementation will increase the share of current assets. The resulting income can be used to pay off accounts payable, or to create a reserve fund.
To increase the financial stability of Kaztemirtrans JSC, it is necessary to replenish its own capital. The main form of increasing equity capital should be an increase in profits and its distribution to reserve funds.
The procedure for increasing the level of business activity of Kaztemirtrans JSC must be carried out in several directions at once.
First, the decrease in receivables and payables. The high proportion of accounts payable reduces the financial stability and solvency of the organization.
Secondly, an increase in working capital by increasing own capital and attracting long-term borrowings. Equity is more expedient to increase at the expense of profit, as it is the main indicator of the breakeven of the organization.
Thirdly, the decrease in stocks due to the introduction of systematic inventory management, which can lead to a decrease in debit debts.
The complex of proposed measures to improve the organization's activities may have a positive effect on the work of the organization of "Kaztemirtrans" JSC as a whole, its financial condition and level of business activity.
In the process of writing the article, the theoretical foundations of the analysis of the business activity of the organization were studied, the reporting of the organization of JSC "Kaztemirtrans" for 2016-2018 was analyzed, and a system of measures to improve the level of business activity of the organization under study was developed, which is the achievement of the coursework goal.
The values of the average turnover of current assets suggests that current assets in 2018 turned around faster than in 2018. The value of the current assets utilization ratio shows that current assets were used quite economically and efficiently in both of the studied periods, but in 2018 it was more efficient compared to 2018. Secondly, regarding the analysis of profitability of "Kaztemirtrans" JSC, it can be said that for the study period from 2018 to 2018. changes in all indicators of profitability of the organization have a positive trend, which indicates an increase in the general level of business activity of JSC "Kaztemirtrans" by 2018.
A system of measures was developed to increase the level of business activity of Kaztemirtrans JSC. The business recovery procedure should be carried out in three directions at once:
- increase in working capital by increasing their own capital and attracting long-term borrowings.
- a decrease in receivables and payables.
- optimization of the organization's reserves in the direction of their decrease due to the introduction of systematic management of them.
The complex of proposed measures may favorably affect the work of the organization of "Kaztemirtrans" JSC as a whole, its financial condition and level of business activity.
Bibliography:
- Financial statements of Kaztemirtrans JSC for 20162018. - Access mode: http://kazcargo.kz/en/
- Torshaeva Sh.M., Accounting Principles. - Karaganda, 2006. - 305 p.
- Official site of the company "Kaztemirtrans" JSC. - Access mode: http://kazcargo.kz/en/
- Barilenko VI, Kuznetsov S.I., Plotnikova L.K., Kayro O.V. Analysis of financial statements. - Textbook Moscow: KnoRus, 2012. - 430 p.
- Barilenko V.I., Plotnikova L.K., Kuznetsov S.I., Skachkova R.V., Plotnikova V.V. Analysis of economic activity: Publishing house "Omega-L", 2009. - 414 p.