home Social networks Frolova V.B. Problems of the formation of the structure of the borrowed capital of the organization. Equity capital management as one of the main tasks of a financial manager General concept of capital

Frolova V.B. Problems of the formation of the structure of the borrowed capital of the organization. Equity capital management as one of the main tasks of a financial manager General concept of capital

Introduction.

It is known that each enterprise has its own financial resources - these are funds at the disposal of the enterprise and intended to ensure its effective operation, to fulfill financial obligations and economic incentives for employees. Financial resources are formed at the expense of their own and attracted funds.

To own sources financial resources operating enterprises include income (profit) from core and other types of activities, non-sales transactions, depreciation charges, proceeds from the sale of retired property. Along with them, the sources of financial resources are stable liabilities, which are equated to their own sources, since they are constantly in the turnover of the enterprise, are used to finance its economic activities, but do not belong to it. Sustainable liabilities include: arrears in wages and social security contributions, a reserve for upcoming salary payments for the period of regular vacations and a lump sum remuneration for seniority, debts to suppliers for unstructured deliveries, depreciation fund funds allocated for the formation of inventories for major repairs, arrears to the budget for certain types of taxes, etc. The need for funds increases with the functioning of the enterprise. This is due to the growth of the production program, depreciation of fixed assets, etc ... Therefore, appropriate financing of capital gains is required.

Therefore, when an enterprise does not have enough own funds to finance the activities of the enterprise, then it can attract funds from other organizations, which are called borrowed capital.

1. General concept of capital.

Keywords

EQUITY/ BORROWED CAPITAL / PROBLEMS OF OPERATION AND USE OF DIFFERENT SOURCES OF ENTERPRISE CAPITAL/ OWN CAPITAL / LOAN CAPITAL / PROBLEMS OF FUNCTIONING AND USE OF VARIOUS SOURCES OF THE CAPITAL OF THE ENTERPRISE

annotation scientific article on economics and business, the author of the scientific work - Elena Yuryevna Merkulova, Natalia Sergeevna Morozova

The main sources of the formation of the property of the enterprise are its own and borrowed capital, the value of which is in the liabilities of the balance sheet. Using only equity, the company has the highest financial stability, but limits the pace of its development. The borrowed capital ensures the growth of the financial potential of the enterprise if it is necessary to significantly expand its assets and increase the growth rate of the volume of its economic activities. It is able to generate an increase in financial profitability due to the effect of financial leverage. At the same time using borrowed capital generates a risk of deterioration in financial stability and a risk of loss of solvency. The level of these risks increases in proportion to the increase in the proportion of use borrowed capital... Assets generated by borrowed capital, generate a lower rate of return, which is reduced by the amount of the loan interest paid. There is also a high cost dependence borrowed capital from fluctuations in the conjuncture of the financial market. Thus, an enterprise using borrowed capital has a higher financial potential for its development and the possibility of increasing its financial profitability, however, to a greater extent generates financial risk and the threat of bankruptcy. Analysis of the effectiveness of using own and borrowed capital organizations is a way of accumulation, transformation and use of accounting and reporting information, with the goal of: assessing the current and future financial condition of the organization, borrowed capital; justify the possible and acceptable rates of development of the organization from the position of providing them with sources of funding; identify available sources of funds, evaluate rational ways to mobilize them; predict the position of the enterprise in the capital market.

The text of the scientific work on the topic "Characteristics and analysis of the use of equity and debt capital of the enterprise"

UDC 336.64 doi: 10.20310 / 1819-8813-2016-11-10-35-40

CHARACTERISTIC AND ANALYSIS OF THE USE OF OWN AND BORED CAPITAL OF THE ENTERPRISE

MERKULOVA ELENA YURIEVNA Tambov State University named after G.R.Derzhavin, Tambov, Russian Federation, e-mail: [email protected]

MOROZOVA NATALIYA SERGEEVNA Lipetsk branch of FSBEI HPE "Financial University

under the government of the Russian Federation ", Lipetsk, Russian Federation, e-mail: [email protected]

The main sources of the formation of the property of the enterprise are its own and borrowed capital, the value of which is in the liabilities of the balance sheet. Using only equity capital, the company has the highest financial stability, but limits the pace of its development. The borrowed capital ensures the growth of the financial potential of the enterprise if it is necessary to significantly expand its assets and increase the growth rate of the volume of its economic activities. It is able to generate an increase in financial profitability due to the effect of financial leverage. At the same time, the use of borrowed capital generates the risk of a decrease in financial stability and the risk of loss of solvency. The level of these risks increases in proportion to the growth in the share of the use of borrowed capital. Equity assets generate a lower rate of return, which is reduced by the amount of interest paid. There is also a high dependence of the cost of borrowed capital on fluctuations in the financial market. Thus, an enterprise using borrowed capital has a higher financial potential for its development and the possibility of increasing its financial profitability, however, to a greater extent generates financial risk and the threat of bankruptcy. Analysis of the effectiveness of the use of equity and debt capital of organizations is a way of accumulating, transforming and using information in accounting and reporting, with the goal of: assessing the current and future financial condition of the organization, that is, the use of equity and debt capital; justify the possible and acceptable rates of development of the organization from the position of providing them with sources of funding; identify available sources of funds, evaluate rational ways to mobilize them; predict the position of the enterprise in the capital market.

Key words: equity capital, debt capital, problems of functioning and use of various sources of enterprise capital

The study of the structure of capital has always been in the focus of economists from different schools and directions of economic studies. Investigation of the capital of an enterprise as economic category, starting from the second half of the XIX century. and up to the present day, was carried out by such scientists as: D. Clark, J. Keynes, K. Marx, D. Mil, W. Pareto, W. Petty, D. Ricardo, A. Smith, I. Schumpeter. They made a huge contribution to the development of the topic of capital, and also highlighted the problems that are directly related to the analysis of equity capital and the effectiveness of the application of data obtained as a result of analytical procedures. So Professor L.T. Gitlyarovskaya notes that capital analysis is a complex and continuous process of collecting, classifying and applying the data obtained.

accounting and financial statements, to determine the financial position of the company, diagnose the rate of expansion of financial and economic activities, identify available sources of capital formation and their rational use, including forecasting the development of the company in the future in the capital market.

The sources of capital formation of the enterprise are its own and borrowed funds (Table 1). Consideration of the current Russian regulatory documents on accounting leads us to the fact that the concept of "equity" is contained only in the Concept of accounting in the market economy of Russia. Other regulatory documents consider

capital structure and methodological aspects of accounting of its constituent elements.

Under the equity capital of an enterprise is understood the value of assets that belong to the owner of the enterprise on the basis of ownership rights, used for the purpose of obtaining income

The structure of equity capital usually includes the invested capital, that is, the capital reinvested by the owners of the enterprise and the accumulated capital, which was created in excess of what was originally invested by the founders. The invested capital consists of such items of equity capital as the authorized capital, additional capital (in terms of the share premium received). The first component of the invested capital is offered in the balance sheet of Russian enterprises by the authorized capital, the second component is additional capital (in terms of the share premium received), and the third component of the invested capital is reflected by the additional capital or fund. social sphere... The accumulated capital of the enterprise is executed in the form that is formed due to the net profit (reserve capital, retained earnings, accumulation fund and other items). It was also found that the greater the share of accumulated capital, the higher the quality of equity capital. Sources with which it is formed

Yes. That is, equity capital is understood as the difference between the assets of the enterprise and its liabilities. It has a rather complex structure, and its composition is directly determined by the organizational and legal form of the enterprise.

equity capital can be divided into two groups: internal and external. Internal sources include: net profit, depreciation charges, property revaluation fund and other receipts. External sources include: share issues, grants, and other sources.

All information about equity capital, which is formed by the accounting and analytical system, is used not only by internal, but also by external users (Fig. 1).

As a result, equity capital is maximized at the expense of any of its sources of formation, which has a positive effect on the activities of the enterprise as a whole, increases its financial independence from external sources of financing and increases production volumes.

Based on the foregoing, we can conclude that competent management of equity capital and the sources of its formation will allow us to analyze the occurrence, co-

Sources of enterprise capital formation and their characteristics

No. Sources of capital formation Characteristics of attracted capital

Domestic Foreign Long-Term Short-Term Own Borrowed

1. Contributions of founders (including additional capital due to share premium) + + +

2. Retained earnings (including reserve capital and funds from profit) + + +

3. Long-term loans and credits (including issued bonds) + + +

4. Short-term loans and credits + + +

5. Accounts payable (trade credits) + + +

standing and application, as well as provide significant proposals for making management decisions.

Borrowed (attracted) funds represent a part of the company's financial resources invested in the company's assets.

They represent business and legal obligations to third parties. In accounting, borrowed funds are defined as liabilities, that is, these funds must be returned to creditors within the time frame established by the contract.

Users

Internal

Financial managers

Owners

Information on financial results

Data on the effectiveness of deposits, amounts, dividends, cost of capital

< л Налоговые органы

Suppliers, customers, organizations

Enterprise management Management information Investors Investment feasibility

Data required for audit

Information about tax payments

Information

about solvency

and liquidity

Lenders

Information about the solvent

Rice. 1. Users of information about the property]

The Financial Accounting Standards Board of the American Institute of Certified Public Accountants (FASB) defines a liability as the probable future outflow of economic benefits arising from an entity's existing obligations to delegate assets or provide services to other businesses through transactions or events that occurred in

E. t MERKULOVA, N. 8. MOROZOVA

capital formed in the accounting and analytical system

past periods. In addition, the liabilities should include the debt formed in the course of economic activity (accounts payable).

Debt capital for commercial structures plays a very important role as an additional means of financing economic activities. However, each entrepreneur with the expiration of a certain period of time is obliged to return these funds to creditors not only in full, but

and in the contractual agreement, with interest.

When deciding on the rationality of attracting borrowed funds, it is important for entrepreneurs to assess the current situation with the financial condition of the enterprise, the structure of financial resources, which are reflected in the liabilities of the balance sheet. But a high share and a high interest rate for using a loan can make it unreasonable to attract new borrowed funds.

Despite the fact that by attracting borrowed funds, the company receives a number of privileges, however, under some circumstances (low profitability), they can turn out to be their downside, a lack of income received, which worsens the financial situation and can lead to bankruptcy. In addition, an enterprise that has a sufficient share of borrowed funds in the total amount of economic assets has a lesser degree of capital flexibility. In the event of unpredictable circumstances, such as: a decrease in demand for a product, an increase in the cost of raw materials and materials, a fall in the price of products, seasonal fluctuations in demand, etc., all this can provoke a loss of the company's solvency, a decrease in income and a decrease in profitability, i.e. e. deterioration financial condition enterprises.

The attracted sources of funds in accounting (financial) include long-term and short-term liabilities. Attraction of borrowed funds into the turnover of an enterprise is considered a normal phenomenon, which contributes to a short-term improvement in the financial condition of the enterprise, in the event that the funds received are not frozen, but are used in the turnover of the organization.

According to the purposes of attracting, the borrowed capital is divided into the funds required for:

Reproduction of fixed assets and intangible assets;

Replenishment of current assets;

Meeting social needs.

By the form of attraction, borrowed funds are divided into funds in cash, commodity form, in the form of equipment, etc.

According to the sources of attraction, borrowed funds are divided into external and internal.

According to the form of security, all borrowed funds are divided into: secured by a pledge or mortgage, secured by a surety or guarantee and unsecured.

For the further development and functioning of the company's activities, it is often enough before

it is worth choosing one of several options for the source of capital: own or borrowed. Before an organization decides to raise borrowed funds, it is important to assess the structure of liabilities in the financial statements, but if the share of debt is high enough, then raising new borrowed funds will be unreasonable and even dangerous. If the company decides to use the attracted capital, then the financial manager needs to analyze and study in detail under what conditions and in what volume the borrowed funds are provided. Undoubtedly, the company will have a number of advantages by attracting borrowed funds, but certain circumstances can complicate the financial situation and lead the company to bankruptcy.

With the help of borrowed funds, the company's assets can be financed and replenished, and this offer is quite attractive, since the lender does not impose requirements on the company's future income. But at the same time, regardless of the results of the organization's activities, he has every right to claim a pre-agreed amount from the contract and interest on it.

As you know, the amount of obligations and the timing of their repayment are known in advance, which undoubtedly simplifies financial planning. cash flows... But the amount of expenses, which is associated with interest on the use of borrowed funds, encourages the organization to increase revenues through the rational use of borrowed funds.

If the share of borrowed funds significantly exceeds the share of its own, then the company has a scanty opportunity to maneuver capital. Also, unforeseen circumstances, such as: an increase in the cost of raw materials and materials, a decrease in demand for products, a fall in prices for goods, seasonal changes in demand, etc., in an unstable financial situation, can serve as one of the main reasons for the loss of the company's solvency.

From the point of view of financial stability, the most rational option for an enterprise is to use equity capital, since there is no threat of bankruptcy, and investors will not demand to return their funds at any time. But the difficulty lies in the fact that own funds are rather limited due to their organizational and legal difficulties. Then, in this situation, the company has the right to use the attracted capital on certain conditions. Sometimes borrowed funds can be very profitable from an economic

point of view. For example, the cost of attracted capital, in some cases, costs the company much cheaper than the cost of its own. This fact is explained by the fact that the risk of own sources significantly dominates over the creditor's risk, since the amount of the incentive is fixed in the loan agreement, and the loan is guaranteed by sureties and collateral.

If the attracted funds exceed the permissible amount, then the financial stability of the enterprise decreases, the risk of creditors increases and the cost of borrowed capital increases. Attraction of additional own sources is a rather lengthy and slow procedure, it is much easier to raise debt capital. So, for example, a company with a perfect level of profitability uses attracted capital much more often than its own. It is also important to note that the weighted average cost of capital (WACC) is the main economic criterion for the optimal capital structure. The preference should be given to such a source of capital formation, which helps to minimize the weighted average cost of capital (ACC).

There are several factors that are not always amenable to economic research: the risk associated with the source of capital formation, all kinds of legal changes, the time spent and funds for borrowed capital.

The ratio between own and borrowed sources of funds is influenced by such factors as external and internal working conditions of an economic entity and the chosen financial strategy:

Difference between dividend rates and interest rates for a loan. If dividend rates are less than interest rates, then it is necessary to reduce the share of borrowed funds, and vice versa;

Reduction or expansion of the activities of business entities. As a result, there is either an increase or decrease in the need to attract borrowed funds;

Accumulation of surplus or unused inventory, materials and obsolete equipment;

Deviation of funds, in the formation of doubtful accounts receivable, which attracts additional borrowed funds.

The ratio between the company's own and borrowed funds is one of the main analytical factors that reflect the degree of risk of investing financial assets.

resources, i.e. the larger the share of borrowed capital, the greater the degree of risk, and vice versa.

Consequently, an enterprise that will use borrowed capital, will have sufficient financial opportunities for its further development (the formation of an additional volume of assets) and the possibility of increasing the profitability of an economic entity, but this should not exclude the financial risk and the threat of bankruptcy arising in the event of an increase in the share of borrowed funds in the total capital.

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CHARACTERISTIC AND ANALYSIS OF USE OF OWN AND LOAN CAPITAL OF THE ENTERPRISE

MERKULOVA ELENA YURYEVNA Tambov State University named after G. R. Derzhavin, Tambov, the Russian Federation, e-mail: [email protected]

MOROZOVA NATALIYA SERGEEVNA Lipetsk Branch of Financial University under the Government of the Russian Federation, Lipetsk, the Russian Federation, e-mail: [email protected]

Key words: own capital, loan capital, problems of functioning and use of various sources of the capital of the enterprise

In the context of an economic downturn, the capital formation strategies of a credit institution are of great importance. At the same time, the bank's capital plays a significant role in ensuring the stability and reliability of the banking system, while the efficiency of the banking system is a decisive factor in economic growth, improving the standard of living and welfare of society. This article analyzes equity capital and ways to replenish it using the example of PJSC ROSBANK, as one of the most stable banks in Russia. As a result of the study, the main tendencies of the Bank's formation of its resource base were identified and external and internal factors were identified that have a key impact on the formation of a commercial bank's own funds.

bank capital

own funds

commercial banks

resource structure

bank capital formation

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In the course of its activities, any organization is exposed to all sorts of risks, and one of the first is the risk of loss of invested funds. The bank equally risks both its own and borrowed funds. But it is worth noting that in the event of unfavorable conditions, the damage is, first of all, covered by the equity capital, and only if the equity capital is not enough - the losses begin to be borne by creditors. Thus, capital acts as a protective mechanism to minimize the risk of loss of creditors' funds. But nevertheless, an increase in the share of capital in the total amount of the bank's funds in most cases means a decrease in profits, which is undoubtedly an unfavorable factor.

It should be noted that in addition to the main protective function, the bank's equity also performs operational and regulatory functions.

The operational function provides financial basis activities of the bank. The bank's equity capital in this function provides an adequate base for the growth of active operations, i.e. maintains the volume and nature of banking operations in accordance with the objectives of the bank.

The regulatory function is related exclusively to the special interest of society in the successful functioning of banks, as well as to laws and regulations that allow central banks to exercise control over the activities of commercial banks and other credit institutions.

In general, the bank's equity capital is the financial basis for its development. Compared to other spheres of entrepreneurial activity, the bank's own capital occupies a small share in the total capital, which is associated with the specifics of the activities of commercial banks. As mentioned earlier, equity capital plays the role of a protective mechanism, but not all elements of equity capital have such protective properties to the same extent. Many of these have certain characteristics that affect the ability of the item to recover extraordinary contingencies. In this regard, there are two levels in the structure of equity capital:

1) fixed (basic) capital - capital of the first level

2) additional capital - second tier capital.

Fixed capital represents funds that the bank can freely use to cover possible unexpected losses. The elements of basic capital are reflected in the reports published by the bank, form the basis on which many assessments of the quality of the bank's work are based, and, finally, affect its profitability and the degree of competitiveness.

The second tier capital is made up of hidden reserves, which are of a less constant nature and can only be directed to the above purposes under limited conditions. The cost of such funds is capable of changing over time.

The sources of the bank's fixed capital include:

1) the authorized capital of the bank in the organizational and legal form joint stock company formed as a result of the issue and placement of ordinary shares, as well as preference shares that are not cumulative;

2) the authorized capital of the bank in the organizational and legal form of a limited liability company, formed by payment of shares by the founders;

3) share premium of banks;

4) bank funds (reserve and other funds), formed from the profits of previous years. remaining at the disposal of banks and a confirmed audit organization;

5) profit of the current year and previous years in the part confirmed by the auditor's report.

Sources of additional capital include:

1) an increase in the value of property due to revaluation;

2) funds formed from deductions from the profits of the current and previous year before confirmation by an audit organization;

3) profit of the current year, not confirmed by an audit organization;

4) profit of previous years before audit confirmation before July 1 of the year following the reporting year (in the absence of such confirmation, profit after that date is not included in the calculation of equity);

5) subordinated loan;

6) a part of the authorized capital formed by capitalization of the increase in the value of property during revaluation.

For clarity, consider the structure of the equity capital of PJSC ROSBANK, presented in table. 1.

Managing the ratio between equity and liabilities is an important criterion. Since own funds are non-returnable resources, they act as a reserve to cover the bank's liabilities. Within the limits of its own funds, the bank 100% guarantees responsibility for its obligations.

Consider the structure of PJSC ROSBANK's liabilities in table. 2.

Liabilities are funds made available to the bank under certain conditions. In terms of the aggregate volume, the bank's liabilities are several times higher than the capital, which is predetermined by the specifics of banking activities. Comparison of the sums of the final indicators of the table. 1 and tab. 2 confirms the above.

To regulate the banking system and ensure the stability of the financial system as a whole, the Central Bank of the Russian Federation has developed a system of standards that are binding on all banks operating in the territory of the Russian Federation. If these standards are repeatedly violated, the bank's license is revoked.

Table 1

PJSC ROSBANK's equity capital structure, RUB thous.

Indicator name
Authorized capital
Extra capital
Retained earnings of previous years (uncovered losses of previous years)
Unused profit (loss) for the reporting period
Reserve fund
Sources of own funds

table 2

Structure of PJSC ROSBANK's liabilities, thousand rubles

Indicator name
Individual deposits with a maturity of more than a year
Other deposits of individuals (including individual entrepreneurs) (for up to 1 year)
Deposits and other funds of legal entities (for up to 1 year)
incl. current funds of legal entities (without individual entrepreneurs)
Correspondent accounts of LORO banks
Interbank loans received for up to 30 days
Own securities
Interest liabilities, delinquencies, payables and other debts
Expected cash outflow
Current responsibility

Table 3

Capital Adequacy Ratios of PJSC ROSBANK

Table 4

Types of sources of replenishment of the bank's equity capital

Types of sources of equity capital	Description of sources
Accumulation	The easiest and least expensive method of capital replenishment, especially for banks with high profit margins. Thus, small banks that are unable to attract investors due to the lack of an appropriate reputation rely on this method.
Reinvestment
Placement of shares on the Russian stock market	Is an important role in the formation of the bank's capital. The rate of shares largely depends on the level of dividends paid, i.e. an increase in dividends leads to an increase in the share price. Consequently, high stock returns help build capital through the sale of additional shares.
Dividend politics	It has a significant impact on the possibilities of expanding the capital base from internal sources. High proportion profit directed to capital gains leads to a decrease in dividends paid. Accordingly, high dividends lead to an increase in the market value of bank shares, which makes it easier to build capital from external sources

One of the important indicators of the bank's reliability is the standards for the adequacy of the bank's own funds (capital).

From January 1, 2014, Russian banks must calculate three capital adequacy ratios instead of one, as it was before, which is associated with the implementation of Basel III. In addition to the aggregate capital adequacy ratio (10%), the basic capital (5%) and the basic capital (5.5%, and since 2015 - 6%) are sufficient. According to the Basel Committee, tighter approaches to the calculation of capital adequacy and liquidity ratios should reduce the risks of a systemic banking crisis and improve the sector's ability to cope with the consequences of global financial collapses.

Based on the data presented in table. 3, it can be concluded that for the period under review, the capital adequacy indicators of PJSC ROSBANK corresponded to the normative values.

For the normal functioning of the bank, much attention is paid to the amount of equity and attracted capital, risks and its assets.

The equity capital of a commercial bank forms the basis of its activities and is an important source of financial resources. It is designed to maintain customer confidence in the bank and convince lenders of its financial soundness. The capital must be large enough to ensure the confidence of borrowers that the bank is able to meet their needs for loans even under unfavorable conditions of economic development of the national economy. This led to increased attention of state and international authorities to the size and structure of the bank's equity capital, and the bank's capital adequacy ratio was ranked among the most important in assessing the bank's reliability. At the same time, equity capital is of paramount importance to ensure the stability of the bank and the efficiency of its work. The constraining factor of its growth is the need to form reserves for active operations.

The level of required capital should be determined depending on the expected financial losses, which are difficult to determine due to the lack of statistics. Thus, equity is really very important, so let's consider the sources of its replenishment. The types of sources of replenishment of the bank's equity capital are presented in table. 4.

As indicated in the table. 4 sources of capital growth for a bank can be internal (profit) and external (shareholders' funds). But it is worth noting that the method of increasing capital at the expense of shareholders is not generally available, due to the fact that small banks do not have a sufficient reputation to attract them. Hence, it follows that the sources of capital growth for the main group of Russian banks should be sought within the business, and not outside.

In 2006, 1729 IPOs were held worldwide for the amount of USD 247 billion. IPO or initial public offering is the first public sale of shares of a joint stock company, including in the form of sale of depositary receipts for shares, to an unlimited number of persons. An IPO allows a bank to gain access to the capital of a much wider circle of investors, but in turn requires placement costs and dividend payments.

PJSC ROSBANK did not refuse from the IPO until the last moment. But in the end, the Board of Directors of the Bank decided to increase its authorized capital by placing an additional issue of shares by private subscription. The fact is that if PJSC ROSBANK had conducted an IPO, the share of the strategic investor Societe Generale (SG) in the bank's capital would have been diluted. At the moment, SG owns 99.4% of the shares of PJSC ROSBANK. Cooperation with such a shareholder allowed the Bank to quickly raise its rating and improve access to the international debt capital market.

PJSC ROSBANK manages its capital to ensure the continuation of the activities of all companies of the SG Group in the foreseeable future and at the same time maximize profit for shareholders by optimizing the ratio of borrowed and equity funds.

The capital structure is reviewed by the Group's Management Board every six months. As part of this assessment, the Management Board, in particular, analyzes the cost of capital and the risks associated with each class of capital. Based on the recommendations of the Management Board, the Group adjusts its capital structure by paying dividends, additional issue of shares, raising additional subordinated borrowed funds or payments on existing loans.

At the moment, PJSC ROSBANK is one of the Russian banks with high capitalization and sufficient liquidity, its indicators meet all mandatory standards.

Bibliographic reference

Ivanova I.V. BANK'S OWN CAPITAL AND METHODS OF ITS FORMATION // International Journal of Applied and Fundamental Research. - 2015. - No. 8-3. - S. 537-540;
URL: https://applied-research.ru/ru/article/view?id=7146 (date accessed: 03/20/2020). We bring to your attention the journals published by the "Academy of Natural Sciences"

Thesis was done in another company, please tell me if it is possible to revise chapter 3. Here it is necessary to develop measures to optimize the capital structure, find a new equity / debt ratio and compare with the previous structure. The main attention should be paid to the formation of borrowed capital in accordance with the chosen financial strategy of the bank, with indicators of the bank's performance. Necessarily with calculations. For the most minimum term... Thanks.

Management of the credit of the capital of the enterprise on the example of OJSC "Stoilensky mining and processing plant"

Introduction

Theoretical management of borrowed funds in an enterprise

1 Concept and essence of debt capital

2 Sources of financing and purposes of attracting debt capital

3 Office of credit equity

Organizational and economic characteristics of JSC "SGOK"

1 brief description of the enterprise

2 Organization of financial activities

3 Analysis of the financial and economic activities of the enterprise

Analysis of the management of equity capital at JSC "SGOK"

1 Analysis of the composition, structure and dynamics of debt capital

2 Analysis of performance indicators of capital management, loans

Bibliography

Applications

financial activity management debt capital

Introduction

The management of borrowed funds - loans, capital - is important both for a large company, where working capital makes up more than half of its assets, and for small ones, in which the main source of funding is short-term liabilities.

Today, the attraction of borrowed funds is widespread in practice. On the one hand, this is an indicator effective work enterprises, through which the deficit of financial resources was filled, and which testifies to the confidence of creditors and provides an increase in the return on equity capital. On the other hand, there is a risk associated with high level interest for the loan. Despite this, business entities using credit, in most cases, are in a better position, since the use of credit increases the return on equity.

The relevance of the topic lies in the fact that at enterprises the amount of borrowed funds significantly exceeds the amount of equity capital. In this regard, it becomes necessary to manage the attraction and effective use debt capital, which is one of the most important functions of financial management. Decisions made in this area (capital loan management) must ensure high-end, economic results.

Increasing business efficiency is impossible only within the framework of the enterprises' own resources. To expand financial capabilities, enterprises resort to attracting additional borrowed funds in order to increase investments in their own business, to obtain greater profits. The issue of the formation, functioning and reproduction of capital by representatives of small businesses, who are not always easy to attract borrowed capital, is a topical issue. An indicator of the market stability of a firm is its ability to successfully develop in the face of transformation of the external and internal environment. In most cases, small businesses use bank loans as borrowed sources, which is explained by the relatively large financial resources of Russian banks, as well as by the fact that when obtaining a bank loan there is no need for public disclosure of information about the company. To do this, it is necessary to have a flexible structure of financial resources and, if the need arises, to be able to attract borrowed funds, that is, to be creditworthy.

small business

capital Management

lending

Borrowed capital

1. Guseva EG Production management at a small enterprise. Educational and practical guide. –M .: MGUESI, 2008. –114p.

2. Kovalev V. V. Financial analysis: capital management, investment choice, reporting analysis. - M .: Finance and Statistics, 2007. -512s.

3. Sheremet A.D., Saifulin R.S. Enterprise finance. Tutorial. –M .: Infra-M, 2007. –343p.

4. Financial analysis of the firm. - M .: East-service, 2009.

5. Holt Robert N. Fundamentals of financial management. - Per. from English - M .: Delo, 2010.

At present, in the conditions of the existence of various forms of ownership in Russia, it is especially important to study the issues of the formation, functioning and reproduction of capital in small businesses. The possibilities of establishing entrepreneurial activity and its further development can be realized only if the owner reasonably manages the capital invested in the enterprise.

Increasing business efficiency is impossible only within the framework of the enterprises' own resources. To expand their financial capabilities, it is necessary to attract additional borrowed funds in order to increase investments in their own business, to obtain greater profits. In this regard, the management of attracting and efficient use of borrowed funds is one of the most important functions of financial management, aimed at ensuring the achievement of high final results of the economic activity of the enterprise. This topic is especially acute for newly-organized small businesses, which do not always have the possibility of their own financing.

The borrowed capital used by such enterprises, in aggregate, characterizes the volume of their financial liabilities. Sources of borrowed capital can be funds raised in the securities market and credit resources. The choice of the source of debt financing and the strategy for attracting it determine the basic principles and mechanisms of organizing the financial flows of the enterprise. Efficiency and flexibility of management of the formation of debt capital contribute to the creation of an optimal financial structure capital of the enterprise.

Currently, the main methods of attracting borrowed capital are bank loans, equity financing, and leasing. In most cases, small businesses use bank loans as borrowed sources, which is explained by the relatively large financial resources of Russian banks, as well as by the fact that when obtaining a bank loan there is no need for public disclosure of information about the company. Here, some of the problems caused by the specifics of bank lending are removed, which is associated with simplified requirements for application documents, with relatively short terms consideration of applications for a loan, with the flexibility of borrowing conditions and forms of loan security, with the simplification of the availability of funds, etc.

Majority leaders Russian companies do not want to disclose financial information about their businesses, as well as make changes in financial policies. As a result, there is the fact that only 3% of Russian companies use emission financing.

According to a number of modern scientists, the concepts of "capital" and "financial resources" require differentiation from the point of view of enterprise financial management. Capital (equity, net assets) is an organization's property free of obligations, that strategic reserve that creates conditions for its development, absorbs losses if necessary and is one of the most important pricing factors when it comes to the price of the organization itself. Capital is the highest form of mobilization of financial resources.

Allocate the following set of different functions of capital:

production resource (production factor).

Object of ownership and disposition.

Part of the financial resources.

Source of income.

An object of temporary preference.

Object of purchase and sale (object of market circulation).

The bearer of the liquidity factor.

The use of borrowed capital to finance the activities of an enterprise, according to many economists, is economically profitable, since the payment for this source is, on average, lower than for the share capital. It means that interest on loans and borrowings is less than the return on equity, which, in fact, characterizes the level of the cost of equity. In other words, under normal conditions, borrowed capital is a cheaper source than equity capital.

In addition, attracting this source allows owners and top managers to significantly increase the volume of controlled financial resources, i.e. expand the investment opportunities of the enterprise.

There are various forms of attracting borrowed funds. So, borrowed capital is attracted to service the economic activities of the enterprise in the following basic forms (Figure 1.1):

Figure 1.1 Forms of attracting borrowed funds.

According to the degree of provision of borrowed funds, attracted in cash, which serves as a guarantee of their full and timely return, the following types are distinguished (Figure 1.2.):

Figure 1.2. Types of borrowed funds in cash.

A blank or unsecured loan is a type of loan that is issued, as a rule, to a company that has proven itself to be timely repaid and fulfill all the conditions of the loan agreement. In financial practice, this category of enterprises is characterized by special term- "first-class borrower";

Thus, based on the composition of borrowed funds, in financial practice, the main creditors of an enterprise can be:

commercial banks and other institutions providing loans in cash (mortgage banks, trust companies, etc.);
suppliers and buyers of products (commercial credit of suppliers and advance payments of buyers);
stock market(issuance of bonds and other securities other than shares) and other sources.

Another way to attract borrowed funds is to expand the practice of financial leasing. Leasing every year is used by an increasing share of Russian enterprises. The attractiveness of financial leasing as a form of lending for commercial banks is associated with a lower degree of investment risk due to the fact that:

credit resources are used to purchase the active part of fixed assets - equipment, the actual need for which is confirmed and guaranteed to be used by the lessee;
the organization-lessee decides to conclude an agreement only if all the necessary conditions are available for organizing production, including the production area, labor force, raw materials and supplies, except equipment.

Thus, capital management is a system of principles and methods for the development and implementation of management decisions associated with its optimal formation from various sources, as well as ensuring its effective use in various types of economic activities of the enterprise.

It is also possible to summarize the direction of attracting capital, namely, the solution of the following tasks:

Formation of a sufficient amount of capital to ensure the required rates of economic development of the enterprise.
Optimization of the distribution of generated capital by type of activity and areas of use.
Ensuring the conditions for achieving the maximum return on capital at the envisaged level of financial risk.
Ensuring a constant financial balance of the enterprise in the process of its development.
Ensuring a sufficient level of financial control over the company by its founders.
Ensuring timely capital reinvestment.

The formation of an enterprise's debt capital should be based on the principles and methods of developing and implementing decisions that regulate the process of attracting borrowed funds, as well as determining the most rational source of financing for debt capital in accordance with the needs and development opportunities of the enterprise. The main objects of management in the formation of debt capital are its price and structure, which are determined in accordance with external conditions.

In the structure of borrowed capital there are sources that require their coverage to attract them. The quality of the coverage is determined by its market value, the degree of liquidity, or the possibility of compensating the borrowed funds.

Analyzing bank lending, we found out that one of the main problems is the reluctance of banks to lend money to finance new enterprises that do not have a credit history. But it is during this period that borrowed capital is especially important for such enterprises. In addition, the problem of high rates for new businesses is also intractable.

In other cases, attracting a bank loan is one of the most demanded ways to finance an enterprise. The main feature of bank lending is a simplified procedure (except for the cases of syndicated bank loans and lending in relatively large volumes).

Correct application of the above recommendations allows enterprises to increase profitability by increasing the volume of production and sales of products. The need to attract external funding sources is not always associated with a lack of internal funding sources. As you know, these sources are retained earnings and depreciation charges. The considered sources of self-financing are not stable, limited by the rate of cash turnover, the rate of sales of products, and the amount of current expenses. Therefore, free money is often (if not always) not enough, and their additional infusion aimed at increasing asset turnover will be extremely useful for most enterprises.

Bibliographic reference

Kravtsova V.A. POLICY OF ATTRACTING LOAN CAPITAL BY SMALL BUSINESSES. // International student scientific bulletin. - 2015. - No. 1 .;
URL: http://eduherald.ru/ru/article/view?id=11974 (date accessed: 03/20/2020). We bring to your attention the journals published by the "Academy of Natural Sciences"

Frolova V.B. Problems of the formation of the structure of the borrowed capital of the organization. Equity capital management as one of the main tasks of a financial manager General concept of capital

annotation scientific article on economics and business, the author of the scientific work - Elena Yuryevna Merkulova, Natalia Sergeevna Morozova

Related Topics scientific works on economics and business, the author of the scientific work is Elena Yurievna Merkulova, Natalia Sergeevna Morozova

The text of the scientific work on the topic "Characteristics and analysis of the use of equity and debt capital of the enterprise"

Bibliographic reference

Management of the credit of the capital of the enterprise on the example of OJSC "Stoilensky mining and processing plant"

Bibliographic reference