Factors Affecting Capital Turnover

Marx about Capital cycle And the theory of capital turnover, from the particularity of capitalist production relations, and from the generality of the production of socialized businessmen, this paper discusses the economic significance of maintaining the continuity of capital movement and raising the speed of capital movement, showing the relationship between the speed of capital movement and the economic effect of capital production. It shows that speeding up capital turnover can reduce the number of top paid capital, reduce labor consumption and labor occupation, accelerate capital turnover, expand the scale of production, increase the fishing volume of value and use price, accelerate capital turnover, improve the surplus value rate and improve the economic effect of capital. So the allocation of capital turnover departments.

Not only does it affect microeconomic efficiency, but also affects macroeconomic effects, and affects capital in all capitalist productive relations, so Marx's theory on the relationship between the speed of capital movement and economic effects is also applicable to socialist production. Socialist production is the commodity production on the basis of planned economy at this stage. The economic activities of enterprises should take the form of material movement and take the form of value movement.

Those in Production process And the material and liability coins that exist in the circulation process constitute capital for the production enterprise. The capital of production enterprises should also take the form of monetary capital, production capital and form of commodity capital, and continuously go through three stages of purchase, production and sale, thus forming a movement of capital circulation and turnover. The total process of enterprise capital movement is the reproduction process of enterprises. Therefore, the speed and effect of capital turnover is a comprehensive economic indicator, which fully reflects the movement of enterprises in all aspects of supply, production and marketing, and concentrates on the management level of enterprises.

What is the economic effect?

To put it simply Economic effects It is the comparison between production cost and utility, that is to say, the production of a certain quantity of products, the amount of live labor and materialized labor consumed, the less consumed, the better the effect is, the worse it is. It requires a small labor consumption and a large amount of labor achieved. For a long time, due to the influence of the "left" guiding ideology and the mode of operation of small producers, our socialist economy has not attached great importance to the issue of economic effects. It only pays attention to the quantity and output value of products, and how much labor and materialized labor consumed in the production of products is economically uneconomical.

Therefore, after the first five year plan, the capital turnover time of enterprises has been extended year by year. The turnover rate of the national industrial circulating fund was four point three in 1965, compared to three point one seven in 1978. The turnover of commercial liquidity in China was two point two one times in 1957, compared with one point nine six in 1978. As capital turnover rate continues to decline, the number of funds occupied is increasing, and the use of funds is getting worse and worse.

The key to capital turnover is turnover time and turnover speed.

Turnover time is the sum of production time and circulation time experienced by capital movement. The turnover time of different departments and enterprises is different, and the turnover speed is different in a certain period of time. The shorter the time of capital turnover, the faster the turnover will be and the better the economic results will be. Therefore, speeding up the turnover of socialist funds is of great economic significance to socialist construction.

First, speed up capital turnover, the same amount of funds can play a greater role.

The speed of capital turnover is different, and the role of the same amount of funds in a certain period of time is also different. Suppose that production funds of ten million yuan increase from two to four times in one year, and other conditions are equal. The production data and labor force it purchases are F1. Double the number of products. It can be seen that the speed of capital turnover is different, and the scale of reproduction will also be enlarged or reduced in a very different degree. That is to say, in order to maintain a certain scale of production, the faster the capital turnover is, the smaller the amount of capital needed; the slower the capital turnover, the more capital will be needed.

China's production enterprises occupy one hundred and forty-five billion and nine hundred million yuan in the end of 1979, and if the amount of capital occupied is restored to the level of 1956, it will save seventy-seven billion yuan. The average liquidity of commercial goods sold by one hundred yuan per person in the whole country was forty-four yuan and 09 points in 1956, rising to fifty yuan in 1979, 04 points, 5 yuan and 95 Fen higher than that in 1956. If it can be reduced to 1956, the industrial and commercial enterprises will be able to save tens of billions of dollars in order to quickly eliminate fiscal deficits and achieve balance of payments.

Second, speed up capital turnover, the same amount of funds can absorb more labor force, increase employment.

The part of production capital used to pay labor remuneration is the remuneration fund for the enterprise. Therefore, to accelerate capital turnover and the number of turnover of the same amount of funds within a certain period of time, the more actual labor remuneration funds will be, the more labor force will be absorbed under the condition of constant labor remuneration level. This is of great significance to increase employment and solve the problem of youth unemployment.

Third, speeding up capital turnover can increase annual profits and raise profit margins.

The profit of an enterprise is created by the surplus labor of laborers. The quicker the turnover of funds, the more labour force absorbed by the same amount of funds in a certain period of time. The surplus labor and product value provided by the laborers are also more. The profits gained by enterprises in a year will be greater and the annual profit rate of funds will be higher. It can be seen that speeding up capital turnover is an important way to raise annual profit rate and achieve better economic results. Fourth, speeding up capital turnover can also reduce the individual production price of products. The production price of the product is the cost price plus the average profit.

Average profit is the number of capital occupancy and average profit rate per unit product. Under the same conditions of cost price and average profit rate, the turnover speed of enterprises' capital is fast, the amount of funds per unit product will be reduced, and the individual production prices of products will also decrease; if the capital turnover speed of enterprises is slow, the amount of capital products will increase, and the individual production prices of products will also rise. In order to reduce the production price of individual products, in addition to improving labor productivity and reducing production consumption, we must also accelerate the turnover of enterprises' capital and reduce the amount of capital used per unit product. Therefore, accelerating capital turnover is an important condition for reducing product cost and improving enterprise competitiveness.

Factors affecting turnover speed of capital

Production time: labor time, labor process interruption time and production factor reserve time.

Circulation time: buying time and selling time

Production capital composition: the proportion of fixed capital and floating capital in production capital; the turnover speed of fixed capital and mobile capital in production capital.