What are the stages of capital circulation?

First of all, capital circulation is divided into purchase stage, production stage and sales stage.

1. Purchase stage: monetary capital is converted into production capital, and currency is converted into commodities. The essence of capital movement in the purchase stage is to prepare for surplus value production. The currency at this stage not only performs the functions of general currency, but also performs the functions of capital.

2. Production stage: the transformation of production capital into commodity capital is the decisive stage among the three stages. The essence of capital activity in production stage is production surplus value. At this stage, the means of production and labor play the role of both general production factors and production capital.

3. Sales stage: the transformation of commodity capital into monetary capital is the key stage among the three stages. The essence of capital movement in the sales stage is to recover the capital invested in production by selling goods and realize the surplus value created in production. ?

Second, capital turnover is a cycle of capital circulation.

1, capital turnover is a repeated capital cycle, and capital cycle is a capital turnover.

2. Capital turnover speed: expressed by capital turnover time or turnover times. The capital turnover rate is directly proportional to the turnover times and inversely proportional to the turnover time. Under the condition of market economy, enterprises will do everything possible to shorten the capital turnover time, increase the number of capital turnover and speed up the capital turnover.

3. Capital turnover time: it is the duration of a capital turnover. That is, the time for capital to return to its original form after realizing value proliferation from one form.

Extended data

Patterns and periods

Of course, different industries have different turnover methods and cycles. It takes several years for real estate to be delivered, and thermal underwear takes one year. The catering industry requires multiple turnover rates every day, and the industry with monthly cycle is even more unclear.

Small companies often encounter slow payment from customers, which affects the normal operation of the projects being implemented; Or in the case that the customer's payment is not in place, it is difficult to undertake new big project opportunities because of insufficient cost; Or the company continues to expand its scale, but there is a shortage of available funds.

If the essence of an enterprise is execution, then the essence of business is turnover. In fact, execution and turnover are skills, but skills are ever-changing.

Capital circulation is the unity of production process and circulation process. In the process of mutual transformation and interweaving of funds in physical form and monetary form, the value of prepaid funds has not disappeared, but increased. In order to ensure the continuous circulation of funds, prepaid funds must exist in three forms at the same time in a certain proportion.

And each form of capital must constantly undergo its three forms of change. Therefore, socialist funds are constantly circulating, and at the same time it includes three forms of circulation, namely, monetary funds circulation, production funds circulation and commodity funds circulation.

The realistic circulation of socialist funds is the unity of three forms of capital circulation. The stagnation of capital circulation in any form or at any stage indicates that there are obstacles to social reproduction.

Baidu Encyclopedia-Capital Cycle

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