The reproduction process of capital

Individual capital - capital of the company, which can always be profitable if it is continuously, re-creates the material conditions of production of the new value.

Simple reproduction of individual capital - is a continuous repetition of creative activity. The scale of production, the value of the product made and the size of the existing capital (productive assets) remain unchanged. Thus capital goes through a kind of circular motion.

Circulation of capital - is one cycle of its motion, which covers the production and circulation of goods produced and completed the return of capital in its original form of money.

Continuously occurring movement of capital forms its turnover. That capital was able to fully commit trafficking takes time - time traffic. It is measured from the beginning of the movement advanced capital until its return in the same form of money, but increased by the amount of profit.

Capitals of various companies have different turnover time, depending on the specific conditions of production and circulation. The sooner all the money put into the case will return to profit; the greater the speed will increase its ownership. Therefore need a specific timing of a turn and the elucidation of its acceleration.

Turnover time of advanced value consists of the time of production and circulation time.

Production time - the period of stay in the capital of the industrial sector.

Orbital period - a period during which the capitals of the company is in the field of management and is in the form of cash and marketable equity.