Analysis of the working capital profitability of small enterprises in the construction industry of the Irkutsk region

Abstract

Working capital ensures the continuity of the production process, so the composition and volume of demand is determined by the needs of production and circulation. Working capital is the foundation of an organization's business. If it is in excess, it means that the organization is not developing fast enough, does not invest in new projects, resources do not work. If it is not enough, then the financial stability decreases, the profit falls. The optimal amount of capital is constantly changing depending on the current market conditions, the strategy of the organization, and the configuration of the business. The financial and economic situation of companies largely depends on how effectively working capital is used and its circulation takes place. This requires more attention to the formation and improvement of the working capital management system and the justification of its direct impact on the efficiency of the functioning of companies from the standpoint of its modern assessment. The article presents the author's model for analyzing the profitability of working capital. The article reveals the influence of factors that affect the change in the profitability of working capital of small enterprises in the construction industry of the Irkutsk region and gives the author's methodological approaches to its calculation (methods of factor analysis developed by Filatov E. A.). The article presents the author's analytical, systematized statistical material for the analysis of key indicators that reveal the impact on the change in the profitability of working capital of small enterprises in the construction industry of the Irkutsk region of the Russian Federation.