How to increase return on capital using borrowed funds - Irina Ekimovskikh. An increase in borrowed funds on the balance sheet indicates

Attraction borrowed money– a common occurrence in a market economy. Let’s understand what borrowed capital is, consider the sources of its formation, and methods for attracting loans to the company. We will also tell you how to calculate and analyze borrowed capital and give examples.

What is this article about?:

What is debt capital

Debt capital is financial assets in the form of debt obligations of a company. Assets are attracted from external sources for a specific period, certain conditions and are subject to unconditional return. In most cases, borrowed funds are characterized by a fee for their use. Borrowed capital can be short-term (up to one year) and long-term.

The subject of the loan is expressed in the form of cash or material assets. The latter usually include materials, transport, equipment, and less often software and information support.

Download and use it:

How it will help: determine the procedure for calculating, approving and monitoring target and limit values ​​of borrowed capital, credit rate, cost of collateral, as well as debt load limit.

Goals of raising debt capital

Raising borrowed funds must correspond to the company's financial strategy and be tailored to specific projects.

Possible goals for raising borrowed capital may be:

• formation of missing volumes of investment resources;
• replenishment permanent part of current assets ;
• ensuring the formation of the variable part of current assets.

Business owners are often afraid to use borrowed capital, but with a competent approach to choosing a loan source and monitoring the market, fears are not justified. When analyzing, you should take into account the potential profit from the use of borrowed capital and the rate of its attraction. By comparing the two criteria, we can safely draw a conclusion about going to the bank, for example.

Analysis of borrowed capital reflects the degree of financial dependence of the company, the direction of its use, as well as the risk of possible bankruptcy in the event of urgent demands from creditors for the repayment of debts.

How is debt capital accounted for?

From an accounting and tax point of view, borrowing relationships involve writing off the subject of the loan from the lender’s accounts and placing them on the borrower’s balance sheet. The accounting account corresponds to account 58 “financial investments”, regardless of the period for which the loan was issued. Account 91 “Other income and expenses” is used to reflect accrued/paid interest.

Please note that the loan amount is not subject to VAT.

Information on capital movements is disclosed in Form No. 3 of the reporting “Report on Changes in Capital”. In section 1 of form No. 5 “Appendix to balance sheet» provides a description of the movement of attracted capital by its types: long-term and short-term loans and borrowings.

How it will help: determine at what capital structure the company's value is maximum using a special model in Excel.

How to calculate debt capital

The cost of the source “borrowed capital” can be calculated using the formula:

I – loan rate.

Let the Alpha company attract a loan of 150,000 rubles for 12 months at 18% per annum (Table 1).

Table 1. Calculation of effective interest rate without commission

The monthly payment is 13,752.00 rubles.

We call the function =EFFECT(), which returns the effective annual rate on the loan, based on the nominal rate (18%) and the number of periods for which compound interest is calculated. The result of the function for the example under consideration is 19.56%.

table 2. Calculation of effective interest rate with 1% commission

The monthly payment remains at the same level, but the loan funds are already 148,500 rubles, so a commission of 1% of 150,000 rubles is taken into account.

We use the =IRR() function, it returns the internal rate of return for a series of cash flows. 1.66% will be the monthly borrowing rate and 21.87% annual effective loan rate, taking into account the 1% commission.

The difference in effective rates in cases 1 and 2 is 2.31%, and this is only due to the addition of a 1% commission to the analysis.

On in this example clearly demonstrates how important it is to analyze a loan agreement and calculate the cost of raising borrowed capital.

Pros and cons of using debt capital

The use of borrowed funds allows the company to accelerate turnover working capital, increase the volume of business transactions, reduce work in progress.

However, the use of this source leads to certain problems associated with the need for subsequent servicing of debt obligations assumed. The company's position remains stable as long as the amount of additional income secured by borrowing funds covers the cost of servicing the loan.

Debt Capital Analysis

For analysis, you can estimate the ratio of equity and debt capital. However, the interpretation of the ratio of equity and borrowed funds is ambiguous. Many investors are of the opinion that a high value of the concentration ratio of attracted capital indicates the degree of confidence in the company on the part of banks, and therefore its financial reliability. Against, low value– about her inability to obtain bank loans, which is a definite warning to investors and creditors.

The most common opinion is high level equity indicates the possibility of repaying debts using own funds and the better financial position of the company. The value of leveraged investment flows for this group of investors is unacceptable.

How to determine the optimal ratio of equity and debt capital

Alexey Grebennikov, Executive Director of Rezon Group of Companies

To quickly determine the optimal ratio of debt and equity capital, you need to:

Select the most successful periods (for example, quarters or months) in the company’s work over the past reporting year (at least three);

Based on the obtained indicators, determine the ratio of debt and equity capital acceptable for the company.

Read more about this in the material V .

Financial leverage for gearing analysis

One of the most important indicators when analyzing borrowed capital is rightfully considered to be the indicator of the effect of financial leverage (financial leverage). It establishes a relationship between return on assets and interest rates for loans.

DFL – financial leverage effect,

t – profit tax rate,

ROA – return on assets

r – interest rate on borrowed capital,

D – borrowed capital,

E – equity.

If the loan rate is higher than the return on assets, the use of borrowed capital is unjustified. All other things being equal, the attraction of borrowed capital is accompanied by an increase in financial leverage and, accordingly, an increase in the financial risk personified by a given company.

Using this formula, we will calculate the effect of financial leverage for the Alpha company:

Table 3. Calculation of the effect of financial leverage

Based on the calculation results, we see that after attracting borrowed capital, the company experienced an increase in return on equity by 10.15%. The higher this indicator, the better for business owners and managers.

How much debt capital does a company need to grow?

Maria Verkhoturova, independent consultant

​If a company does without debt capital, this does not mean that it is operating efficiently. Own money is often much more expensive than borrowed money. At the same time, if the organization most of capital means loans, there is a high risk of loss of solvency.

To maximize profits while minimizing the risk of default for the company, analyze how effective your firm's actual capital structure is and see if anything needs to be changed in its long-term credit policy.

Read more step by step how to do this in the article from the magazine .

conclusions

In general, companies that use additional resources are in a better position than companies that rely only on their own capital. Despite the cost of borrowed funds, their use ensures an increase in profitability. However, the economic effect of obtaining a loan should be compared with the potential profit.

The share of borrowed funds in the structure of the enterprise's property tends to decrease. The decrease in borrowed capital occurred due to borrowed funds by 230 thousand rubles. or 100%. In turn, short-term accounts payable decreased due to a decrease in debt to suppliers, contractors and wages by 159 thousand. rub.

During 2009, there was an increase in debt on social insurance by 44 thousand rubles, the debt to the budget also increased by 76 thousand rubles. or by 146%.

The debt to other creditors amounted to 45 thousand rubles. or 1.16% of total liabilities at the beginning of 2009, at the end of the period it amounted to 11 thousand rubles. or 0.30% of total assets.

The observed decrease in borrowed capital indicates an increase in the degree of financial stability of the enterprise and a decrease in the enterprise's dependence on external investors and creditors. As for equity capital, its growth was a consequence of an increase in retained earnings by 103 thousand rubles. Retained earnings account for 12.74% in the structure of the enterprise's sources of funds.

From this Figure 1.2 it can be seen that the share of capital and reserves at the end of the year constituted 85.6% of the total structure of liabilities. Short-term liabilities decreased to 14%, and the share of long-term liabilities decreased to 0.33%.

Analysis of the dynamics of the balance sheet currency, the structure of assets and liabilities of the organization allows us to draw a number of conclusions: necessary both for the implementation of current financial and economic activities, and for making management decisions for the future.

Positive signs identified during the analysis of the balance sheet structure of Mechta OJSC are:

1. the share of cash in accounts and in the cash register is close to 10% of the amount of working capital;

2. increase in reserves, both in absolute and relative terms;

3. the share of own sources of funds has increased, and retained earnings can be considered as a source of replenishment of assets;

4. equity capital exceeds borrowed capital in both absolute and relative terms;

5. reducing accounts payable simultaneously with increasing accounts receivable;

6. the share of non-current assets in the structure of the enterprise’s property exceeds the share of current assets, both at the beginning and at the end of 2009

The negative points are the following:

1. the balance sheet currency decreased by 5%, which indicates a deterioration in the financial condition of the organization

2. an increase, albeit insignificant, in accounts receivable

Also, to characterize the financial situation, relative indicators of financial stability are used, the analysis of which consists of comparing their actual values ​​with basic values, as well as studying the dynamics of these indicators. There are many indicators that can be used to assess the financial position of an enterprise. Most important have several indicators that are calculated based on balance sheet data.

Financial stability is a criterion of a partner’s reliability, and it is characterized primarily by the capital structure, the ratio of borrowed and equity funds. Therefore, one of the most important characteristics of the stability of the financial condition of an enterprise, its independence from external sources of financing is the autonomy coefficient, the ratio of sources of borrowed and equity funds and the capital structure coefficient.

In world and domestic practice, a special system of indicators and coefficients has been developed.

1. One of the most important characteristics of the stability of the financial position of an enterprise, its independence from borrowed sources of funds is the autonomy coefficient or coefficient financial independence, which is defined as the ratio of equity capital to the value of all assets of the enterprise.

where, SK – equity capital;

VB – the value of the enterprise’s assets.

It characterizes the level of overall financial independence, i.e. the degree of independence of the enterprise from borrowed sources of financing. Thus, this ratio shows the share of equity capital in total liabilities.

In world practice, the standard value for the autonomy coefficient is equal to 0.5. This means that until this limit is reached, you can use borrowed capital. The restriction K1 > 0.5 means that all the company’s obligations can be covered by its own funds. Compliance with this restriction is important not only for the enterprise, but also for its creditors.

An increase in the autonomy coefficient indicates an increase in the financial independence of the enterprise and a decrease in the risk of financial difficulties in the future. Creditors are more willing to invest their funds in an enterprise with a larger share of equity capital, since such an enterprise is more likely to be able to repay its debts using its own funds.

2. Financial leverage (leverage) K2:

K2 = KZ/SC,

where KZ are borrowed funds raised by the enterprise. The relationship between the autonomy coefficient and financial leverage is expressed by the formula:

from which it follows that the normal limitation for the debt-to-equity ratio K2< 1.

3. The ratio of security of current assets with own funds of financing (K3) shows what part of current assets is financed from own sources:

K3= (SK+VA)/OA

where, VA – non-current assets;

OA – current assets.

This ratio characterizes the presence of a business firm’s own working capital necessary for its financial stability. The normal limit for this coefficient, obtained on the basis of statistical data from economic practice, is K3 > 0.6 -0.8. The value of this coefficient must be at least 0.1. This is one of the main indicators when assessing the insolvency of a business firm

The level of the ratio of provision of current assets with own funds is comparable for organizations in different industries. Regardless of industry, the degree of sufficiency of own working capital to cover current assets equally characterizes the measure of financial stability. In cases where K3>1, we can say that the enterprise does not depend on borrowed sources of funds in the formation of its current assets. If K3<1 (особенно если значительно ниже), необходимо оценить, в какой мере собственные оборотные средства покрывают хотя бы производственные запасы и товары, как они обеспечивают бесперебойность деятельности предприятия.

4. The agility coefficient - another significant characteristic of the stability of the financial condition - is equal to the ratio of the company’s own working capital to the total amount of equity:

K4 = (SK - VA)/SK

It shows what part of the enterprise’s own funds is in mobile form, allowing relatively free maneuvering of these funds. A high value of this coefficient positively characterizes the financial condition of the company, but there are no established standards in the economy. Sometimes in specialized literature K4 = 0.5 is considered the optimal value.

Analysis of the financial condition of the enterprise

Assignment for the calculation part.

The financial condition of an enterprise is expressed in the ratio of the structures of its assets and liabilities, i.e., the enterprise’s funds and their sources. The main tasks of financial condition analysis are to determine the quality of the financial condition, study the reasons for its improvement or deterioration over the period, and prepare recommendations to improve the financial stability and solvency of the enterprise. These tasks are solved on the basis of a study of the dynamics of absolute and relative financial indicators and are divided into the following blocks:

1. structural analysis of assets and liabilities;
2. financial stability analysis;
3. analysis of solvency (liquidity);

The information sources for calculating indicators and conducting analysis are annual financial statements. (Option 16)

General assessment of the dynamics of the financial condition of the enterprise.

For a general assessment of the dynamics of the financial condition of an enterprise, balance sheet items should be grouped into separate specific groups based on liquidity (asset items) and maturity of liabilities (liability items). Based on the aggregated balance sheet, an analysis of the structure of the enterprise’s property is carried out, which in a more orderly form is conveniently carried out in the following form:

Aggregated balance.

Table 1.

• total value of the enterprise's property = currency, or balance sheet total;
• the cost of immobilized assets (i.e. fixed and other non-current assets) = the total of section I of the balance sheet asset;
• cost of working (mobile) assets = total of section II of the balance sheet asset;
• the amount of receivables in the broad sense of the word (including advances issued to suppliers and contractors) = lines 230 and 240 of section II of the balance sheet asset;
• the amount of free cash in the broad sense of the word (including securities and short-term financial investments) = lines 250 and 260 of section II of the balance sheet asset;
• cost of equity = section III of liabilities and lines 640,650 of section V of liabilities of the balance sheet;
• the amount of borrowed capital = the sum of sections IV and V of the liabilities side of the balance sheet without lines 640,650;
• the amount of long-term loans and borrowings, intended, as a rule, for the formation of fixed assets and other non-current assets, Section IV of the balance sheet liabilities;
• the amount of short-term loans and borrowings, intended, as a rule, for the formation of current assets, = line 610 of section V of the liabilities side of the balance sheet;
• the amount of accounts payable in the broad sense of the word = lines 620,630 and 660 of section V of the balance sheet liability.

General assessment of the dynamics and structure of balance sheet items

Analysis of the structure of enterprise assets.

Table 2.

Analytical grouping and analysis of balance sheet asset items

The total assets of the enterprise during the analyzed period increased by 76,730 thousand rubles. (or their growth rate compared to the beginning of the period was 160.88%). The increase in the enterprise's assets occurred due to an increase in the size of non-current assets by 38,476 thousand rubles. or by 195.84%, with a simultaneous increase in the volume of current assets by 38,254 thousand rubles. or 144.54%.

The balance sheet currency reflects the property “power” of the enterprise, therefore it is believed that the larger the balance sheet currency, the more reliable the enterprise. An increase in the size of the enterprise's property (i.e., non-current and current assets) indicates a positive change in the balance sheet.

The largest share in the structure of total assets falls on current assets (65.18% at the beginning of the analyzed period and 61.23% at the end), therefore the enterprise has a “light” asset structure, which indicates the mobility of the enterprise’s property.

Fixed assets. Non-current assets of the enterprise during the analyzed period increased by 38,254 thousand rubles. or by 195.84%. The increase in non-current assets occurred mainly due to a significant increase in the size of fixed assets, an increase in the volume of unfinished construction, the emergence of long-term financial investments, as well as an increase in the size of intangible assets.

Thus, the increase in the share of non-current assets in the structure of total assets made the balance sheet more “heavier”. Enterprises with a “heavy” asset structure have a high share of overhead costs (due to depreciation and maintenance costs of fixed assets associated with their ongoing repairs and payment for utilities) and are especially sensitive to changes in revenue. However, such enterprises, due to the increased share of depreciation charges in the cost structure, can have money without having a profit (since the sources of cash flow from core activities are profit and depreciation). This is due to the fact that depreciation is part of the enterprise’s costs as part of the cost price, which is not an expense item because does not require payment. However, the property of depreciation charges is such that they can be fully converted into cash only in the case when the company does not have losses.

The structure of non-current assets during the analyzed period has changed significantly, although at the same time the main part of the enterprise's non-current assets falls on fixed assets. The largest part of non-current assets is represented by production fixed assets and unfinished construction, which characterizes the enterprise's orientation towards creating material conditions for expanding the main activities of the enterprise. The emergence of long-term financial investments reflects the financial and investment development strategy.

Current assets. The analyzed enterprise is characterized by a high share of current assets in the structure of the enterprise's total assets (68.15% at the beginning of the year and 61.23% at the end). The current assets of the enterprise during the analyzed period increased by 38,254 thousand. rub. or by 144.54%. The increase in current assets was due to an increase in short-term receivables, inventories, long-term receivables of other current assets, cash and VAT.

The structure of the enterprise's current assets as part of property during the analyzed period remained quite stable. Thus, the largest share invariably falls on inventories (51.28% at the beginning of the year and 38.77% at the end).

The decrease in the level of inventories in the structure of current assets cannot be judged unambiguously, since in fact there was not a decrease, but an increase in the valuation of inventories (by 13,989 thousand rubles), but in comparison with an almost twofold increase in the valuation of immobilized assets in the property structure enterprise (discussed earlier), there was a decrease in the share of inventories in the property structure.

An increase in inventory levels can:

• on the one hand, indicate a decline in the activity of the enterprise, since large inventories lead to the freezing of working capital, a slowdown in its turnover, damage to raw materials and supplies increases, and storage costs increase, which negatively affects the final results of operations. In this case, you should find out whether the inventory contains slow-moving, stale, unnecessary material assets; this can be easily established using warehouse accounting data or balance sheets. The presence of such materials indicates that working capital is at risk of being frozen for long time in inventories.
• on the other hand, the reason for an increase in the size of inventories can only be an increase in their value due to quantitative or inflationary factors.

A significant share in the structure of inventories is occupied by work in progress. A decrease in work in progress balances may indicate, on the one hand, a decrease in production volumes and possible downtime, and on the other hand, an acceleration of capital turnover due to a decrease in the production cycle.

The share of receivables in the structure of the enterprise's property during the analyzed period increased from 15.3% to 20.39%. An increase in accounts receivable and its share in current assets may indicate an imprudent credit policy of the enterprise in relation to customers, or an increase in sales volumes, or the insolvency and bankruptcy of some customers.

The smallest share in the structure of assets is occupied by cash (0.87% at the beginning of the year and 0.72% at the end), which in principle is a good sign, since cash in accounts or on hand does not generate income; it is needed be available within a safe minimum. The presence of small amounts is the result of proper use of working capital. A slight change in cash balances in bank accounts is due to the balance of cash inflows and outflows.

A comparison of the amounts of accounts receivable and accounts payable shows that the excess of accounts payable over accounts receivable occurred only at the beginning of the period, but at the end of the period, accounts receivable already exceeded accounts payable, which is a sign of a good balance sheet in terms of increased efficiency.

The amount of net working capital (i.e., the difference between inventories, short-term receivables, cash, short-term financial investments and accounts payable (short-term and long-term debt) shows that the enterprise had its own funds during the analyzed period. Low share of long-term and short-term financial investments indicates the absence of diverted funds from core activities.

Analysis of the structure of the enterprise's liabilities.

Table 3.

Analytical grouping and analysis of balance sheet liability items

The main source of the formation of total assets of the enterprise in the analyzed period are own funds, the share of which in the balance sheet decreased from 72.34% to 70.69%, the share of borrowed funds accordingly increased from 27.66% to 29.31%, which indicates a possible financial instability of the enterprise and the increasing degree of dependence of the enterprise on external investors and creditors. During the analyzed period, there was an increase in equity capital by 52,166 thousand rubles. or growth amounted to 157.21% and borrowed capital by 24,564 thousand rubles. (170.46%). Own capital increased mainly due to an increase in additional capital and authorized capital while simultaneously reducing the amount of targeted financing and revenues. A decrease in the volume of targeted financing and revenues may indicate a loss of interest of investors (in particular, the state) in the activities of the enterprise.

The growth of borrowed capital occurred mainly due to an increase in the size of loans and credits by 10,943 thousand rubles. (177.5%) and accounts payable by 13,621 thousand rubles. (165.67%), which indicates the emergence of new obligations of the enterprise both to the bank and to other creditors.

Attracting borrowed funds into the turnover of an enterprise is a normal phenomenon. This contributes to a temporary improvement in financial condition, provided that they are not frozen in circulation for a long time and are returned in a timely manner. Otherwise, overdue accounts payable may arise, which ultimately leads to the payment of fines and a deterioration in financial condition.

Table 4.

Conventions.

One of the most important characteristics of the financial condition of an enterprise is the stability of its activities in the light of a long-term perspective. It is related to the overall financial structure of the enterprise, the degree of its dependence on creditors and investors. Thus, many businessmen, including representatives of the public sector of the economy, prefer to invest a minimum of their own funds in the business and finance it with borrowed money. However, if the equity-debt structure is heavily skewed toward debt, the business may go bankrupt if multiple creditors simultaneously demand the money back at an “inconvenient time.”

Financial stability in the long term is characterized, therefore, by the ratio of equity and borrowed funds. However, this indicator provides only a general assessment of financial stability. Therefore, a system of indicators has been developed in world and domestic practice.

In market conditions, the balance sheet model, on the basis of which indicators reflecting the essence of financial stability are considered, has the form:

F + Z + (R.A. - Z) = Andc+ KT + kt + kr + rp, (1)

F- fixed assets and other non-current assets;

Z- inventories and costs;

(R.A.- Z) - cash, short-term financial investments, settlements (accounts receivable) and other assets;

ANDc- sources of own funds;

kt- short-term loans and borrowed funds;

KT- long-term and medium-term loans and borrowed funds;

kr + rp- settlements (accounts payable) and other short-term liabilities.

Considering that long-term loans and borrowed funds are used primarily for the purchase of fixed assets and capital investments, model (1) is transformed and has the following form:

Z + (R.A.- Z) = [(Andc+ KT) – F] + [ kt + kr + rp] (2)

From this we can conclude that, subject to the limitation of inventories and costs Z by the value [(ANDc+ KT) – F]:

Z£ [(ANDc+ KT) – F] (3)

the condition for the solvency of the enterprise will be met, i.e. cash, short-term financial investments (securities and other assets) will cover the short-term debt of the enterprise [ kt + kr + rp]:

(R.A.) > (kt + kr + rp) (4)

So, using the example of the analyzed balance:

at the beginning of the year 85896 > (14121+ 20742) – the condition is met,

at the end of the year 124150 > (25064 + 34363) – the condition is met.

The most general indicator of financial stability is the surplus or shortage of sources of funds for the formation of reserves and costs, obtained in the form of the difference in the value of sources of funds and the value of reserves and costs. This refers to the provision of certain types of sources (own, credit and other borrowed), since the sufficiency of the sum of all possible types of sources (including short-term accounts payable and other liabilities) is guaranteed by the identity of the totals of the asset and liability of the balance sheet.

The total amount of inventories and costs Z of the enterprise is equal to the sum of lines 210 and 220 of section II of the balance sheet asset.

To characterize the sources of reserves and costs, several indicators are used that reflect the different degrees of sufficiency of different types of sources:

1. availability of own working capital, equal to the difference in the amount of sources of own funds and the amount of non-current assets:

E c= Andc – F (5)

at the beginning of the year: E c = 91179 – 40146 = 51033 thousand rubles,

at the end of the year: E c = 143345 –78622 = 64723 thousand rubles.

2. the presence of own and long-term borrowed sources of formation of reserves and costs, obtained from the previous indicator by an increase in the amount of long-term and medium-term loans and borrowed funds:

E T= (Andc + KT) – F= E c +KT (6)

at the beginning of the year: E T = 51033 + 0 = 51033 thousand rubles,

at the end of the year: E T = 64723 + 0 = 64723 thousand rubles.

3. the total value of the main sources of formation of inventories and costs, equal to the sum of the previous indicator and the value of short-term loans and borrowed funds:

ES = (ANDc+ KT) – F + kt = E T + kt (7)

at the beginning of the year: E S = 51033 + 14121 = 65154 thousand rubles,

at the end of the year: E S = 64723 +25064 = 89787 thousand rubles.

If in formula (2) short-term debt is transferred to left side balance model, then the latter will take the following form:

RA – (kt + rp) + kr = (ANDc+ KT) – F (8)

On the left side of the equation we have the difference between the working capital of the enterprise and its short-term debt, on the right - the value of the E T indicator.

Three indicators of the availability of sources for the formation of reserves and costs (formulas 5-7) correspond to three indicators of the provision of reserves and costs with sources of their formation:

1. surplus (+) or shortage (-) of own working capital:

[ ± E c]= E c - Z (9)

at the beginning of the year: E c - Z = 51033 – 64629 = - 13596 thousand rubles. – lack of own working capital,

at the end of the year: E c - Z = 64723 – 78618 = - 13895 thousand rubles. – lack of own working capital.

2. excess (+) or deficiency (-) of own and long-term borrowed sources of formation of reserves and costs:

[ ± E T ]= E T - Z = (E c + KT) – Z (10)

at the beginning of the year: E T – Z = 51033 – 64629 = - 13596 thousand rubles. – lack of own and long-term sources for the formation of reserves and costs,

at the end of the year: E T – Z = 64723 – 78618 = - 13895 thousand rubles. – lack of own and long-term sources for the formation of reserves and costs.

3. surplus (+) or deficiency (-) of the total amount of the main sources for the formation of reserves and costs:

[ ± ES]= ES- Z = (E c + KT + kt) – Z (11)

at the beginning of the year: E S - Z = 65154 – 64629 = 525 thousand rubles. – lack of total value of the main sources for the formation of reserves and costs,

at the end of the year: E S - Z = 89787 – 78618 = 11169 thousand rubles. – lack of total sources for the formation of reserves and costs.

Calculation of three indicators of the provision of reserves and costs with sources of their formation allows us to classify financial situations according to the degree of their stability. When identifying the type of financial situation, the following three-component indicator is used:

S = { S(± Ec), S(± ET), S(± ES)}, (12)

where the function S(X) is defined as follows:

ì 1 if x³ 0

S(X) = í (13)

î 0 if x<0

For the entire analyzed period, the three-component indicator had the following form: S = (0, 0, 1)

ì [ ± E c] < 0

í [ ± E T] < 0 (14)

î [ ± ES] > 0

Table 5.

Analysis of financial stability.

The three-component indicator of the type of financial situation characterizes an unstable financial condition associated with a violation of solvency, in which, nevertheless, it remains possible to restore balance by replenishing sources of own funds and increasing one’s own working capital, as well as by additionally attracting long-term and medium-term loans and borrowed funds.

Financial instability is considered normal (acceptable) in this situation if the amount of short-term loans and borrowed funds attracted for the formation of inventories and expenses does not exceed the total cost of inventories and finished products (the most liquid part of inventories and expenses), i.e. Conditions are met:

Z 1 + Z 4 ³ Kt - [ ± ES] (15)

Z 2 + Z 3 £ ET

where: Z 1 – production inventories (p. 211);

Z 2 – work in progress (p. 213);

Z 3 – deferred expenses (p. 216);

Z 4 – finished products and shipped goods (p. 214 + p. 215);

(Kt - [±E S ]) – part of short-term loans and borrowed funds involved in the formation of inventories and costs.

If conditions (15) are not met, then financial instability is abnormal and reflects a tendency towards a significant deterioration in financial condition.

Let's check the financial instability of the enterprise for normality:

Beginning of period:

6516 + 62 + 1039 < 14121 – 525

57011 + 0 > 51033

abnormal financial instability at the beginning of the period.

End of period:

19326 + 418 + 2506 > 25064 – 11169

22250 > 13895

56368 < 64723

By the end of the period, normal financial instability had established in the analyzed enterprise, which reflects a trend towards improving financial condition.

Along with optimizing the structure of liabilities in our situation, sustainability can be restored through a reasonable reduction in inventory levels and costs.

To restore sustainability, it is necessary to in-depth study the reasons for changes in inventories and costs, turnover of current assets, the availability of own working capital, as well as reserves for reducing long-term and current tangible assets, accelerating the turnover of funds, increasing own working capital. Then, based on the current situation, a number of measures can be recommended, for example:

• justified reduction of inventories and costs (to the standard);
• replenishment of own working capital from internal and external sources.

The most risk-free way to replenish the sources of reserve formation should be recognized as an increase in real equity capital through the accumulation of retained earnings or through the distribution of after-tax profits into accumulation funds, subject to the growth of the part of these funds not invested in non-current assets. A decrease in inventory levels occurs as a result of planning inventory balances, as well as the sale of unused inventory items.

Analysis of financial sustainability ratios.

Next are calculated financial ratios, allowing to study trends in position stability changes of this enterprise, as well as carry out a comparative analysis based on the reports of several competing companies. These include:

1. Autonomy coefficient, characterizing the independence of the enterprise from borrowed sources of funds, it is equal to the share of equity capital in the total balance sheet.

K a = I s / B (16)

For the analyzed enterprise, the value of the autonomy coefficient is:

for the beginning of the year - K a = 91179 / 126042 = 0,723

at the end of the year - K a = 143345 / 202772 = 0,706

The normal minimum value of the coefficient is estimated at 0.5, which means that all the obligations of the enterprise can be covered by its own funds. The value of this coefficient for the analyzed enterprise exceeds the normative value, however, its decrease reflects a tendency towards an increase in the enterprise’s dependence on borrowed sources of financing the economic circuit and is therefore assessed negatively.

2. Debt to equity ratio equal to the ratio of the amount of the enterprise's liabilities to the amount of its own funds.

K s/s = (B – I s) / I s (17)

For the analyzed enterprise, the value of the ratio of equity and borrowed funds:

at the beginning of the year - Kw/s = (126042 – 91179) / 91179 = 0.38

at the end of the year - K salary = (202772 – 143345) / 143345 = 0.415

The relationship between the autonomy coefficient and the debt/equity ratio can be expressed as follows:

K z/s = 1 / K a – 1 (18)

from which follows the normal restriction for the ratio of borrowed and equity funds K z / c £ 1. This condition for the analyzed enterprise is satisfied both at the beginning and at the end of the year. The growth of this indicator reflects a trend toward an increase in the share of the enterprise’s liabilities in the balance sheet structure, which means an increase in the enterprise’s financial dependence on borrowed sources.

With an increase in the share of borrowed funds, the enterprise loses stability, because:

• an increasingly large part of the capital belongs not to the enterprise, but to creditors who can dictate their terms;
• the greater the share of borrowed funds, the less likely it is to receive funds from additional sources of financing: financial organizations “will not give more,” and it will not be possible to increase equity capital by issuing shares, since shareholders will have great doubts about paying dividends due to the need pay high interest on borrowed funds.

3. Ratio of mobile and immobilized assets calculated by the formula.

K m/i =R.A. / F (19)

For the analyzed enterprise, the ratio of mobile and immobilized assets is:

at the beginning of the year - K m/i = 85896 / 40146 = 2.14

at the end of the year - K m/i = 124150 / 78618 = 1.58

The value of this indicator is largely determined by the industry characteristics of the circulation of funds. A sharp decrease in this ratio is a consequence of changes in the structure of non-current and current assets of the enterprise.

Combining these restrictions, we obtain the final form of the normal restriction for the debt-to-equity ratio:

K a / c£ min(1, Km/i) (20)

4. Maneuverability coefficient equals the ratio of the enterprise’s own working capital to the total amount of sources of own funds.

K m = E s / I s (21)

For the analyzed enterprise, the agility coefficient is:

at the beginning of the year - K m = 51033 / 91179 = 0.56

at the end of the year - K m = 64723 / 143345 = 0.452

It shows what part of the organization’s equity capital is in mobile form, allowing relatively free maneuvering of capital. High values ​​of the agility coefficient positively characterize the financial condition, however, there are no normal values ​​of the indicator established in practice. As an average guideline for optimal levels the coefficient can be considered a value of 0.5.

5.Coefficient of supply of inventories and costs from own sources, equal to the ratio of the amount of own working capital to the cost of inventories and expenses of the enterprise.

K o = E s /Z (22)

For the analyzed enterprise, the ratio of supply of inventories and costs from own sources:

at the beginning of the year - K o = 51033 / 64629 = 0.79

at the end of the year - K o = 64723 / 78618 = 0.82

For industrial enterprises the normal limitation of the indicator has the following form: k o ³ 0.6 ¸ 0.8. In addition, the coefficient of supply of inventories and costs from its own sources should be limited from below by the values ​​of the autonomy coefficient so that the organization does not find itself on the verge of bankruptcy: k o ³ k a. For the analyzed enterprise, this condition is met.

6. Industrial property ratio, equal to the ratio of the sum of the costs of fixed assets, capital investments, equipment, inventories and work in progress to the total balance sheet - net (that is, minus losses, debt of the founders for contributions to the management company, the cost of shares purchased from shareholders).

To the address = (F1 + F2 + F3 + Z1 + Z2) / B (23)

where F1 – fixed assets,

F2 – capital investments,

F3 – equipment,

Z1 – production inventories,

Z2 – work in progress.

For the analyzed enterprise, the coefficient of property for production purposes:

at the beginning of the year - To p.im. = (40146 + 6516 +57011) / 126042 = 0.823

at the end of the year - To p.im. = (78622 + 19326 + 56368) / 202772 = 0.761

The following indicator limitation is considered normal:

Kp.m.³ 0,5 (24)

The calculated indicators correspond normal value, however, during the analyzed period there was a downward trend given value. This is a negative sign, because if the indicator decreases below the critical limit, it is necessary to replenish equity capital (for example, by increasing the authorized capital, which is possible and the company tried to do, because authorized capital enterprises increased during the analyzed period) or attracting long-term borrowed funds to increase property for production purposes, if the financial results in the reporting period do not significantly replenish the sources of own funds.

7. Long-term leverage ratio, equal to the ratio of the amount of long-term loans and borrowed funds to the amount of the enterprise’s own funds and long-term loans and borrowings.

To d.pr. = CT / (I s + CT) (25)

It allows you to approximately estimate the share of borrowed funds when financing capital investments. For the analyzed enterprise, the coefficient of long-term borrowing will be equal to 0, since the enterprise does not use long-term sources of financing in its activities.

8. Short-term debt ratio expresses the share of the enterprise's short-term liabilities in the total amount of liabilities.

lK.Z = (Pt – fp) / (KT + Pt) (26)

For the analyzed enterprise, the short-term debt ratio is:

at the beginning of the year - l K.Z = (14121 – 0) / (0 + 14121) = 1

at the end of the year - l K.Z = (25064 – 0) / (0 + 25064) = 1

Based on the calculated coefficients, we can conclude that the company’s liabilities are short-term in nature. This creates certain difficulties for the enterprise. The balance between the sizes of receivables and payables is disrupted, since receivables are distributed between long-term and short-term (and the share of long-term is greater), and payables are exclusively short-term in nature.

9. Coefficient of autonomy of sources of stock formation and costs shows the share of own working capital in the total amount of the main sources of reserves and costs.

aa.Z= E s / (E s +Kt + KT) (27)

For the analyzed enterprise, the coefficient of autonomy of sources of formation of reserves and costs:

at the beginning of the year - a a.З = 51033 / (51033 + 14121 + 0) = 0.783

at the end of the year - a a.З = 64723 / (64723 + 25064 + 0) = 0.761

10. Accounts payable and other liabilities ratio shows the share of accounts payable and other liabilities in the total amount of liabilities of the enterprise.

bK.Z = (kr + rp) / (KT + Pt) (28)

For the analyzed enterprise, the ratio of accounts payable and other liabilities:

at the beginning of the year - b K.Z = (20742 + 0) / (0 + 14121) = 1.47

at the end of the year - b K.Z = (34363 + 0) / (0 + 25064) = 1.371

Table 6

Coefficients characterizing the financial stability of the enterprise.

Values ​​of indicators of the structure of sources of funds (l K.Z , b K.Z), among other things, also lies in the fact that they are also used in the interrelation of individual indicators of liquidity of financial stability, on the basis of which conclusions are drawn about the positive dynamics of the main financial ratios.

Analysis of balance sheet liquidity.

Balance sheet liquidity is defined as the degree to which an enterprise's liabilities are covered by its assets, the period of transformation of which into cash corresponds to the period of repayment of liabilities.

Depending on the degree of liquidity, i.e. the rate of conversion into cash, the assets of the enterprise are divided into the following groups:

A1. The most liquid assets are cash and short-term financial investments:

A1 = d + ft (29)

For the analyzed enterprise, the most liquid assets are:

at the beginning of the year – A1 = 588 thousand rubles.

at the end of the year – A1 = 1074 thousand rubles.

A2. Quickly realizable assets – accounts receivable, the repayment period of which is expected within 12 months and other current assets:

A2 = dt + ra (30)

For the analyzed enterprise, quickly realizable assets:

at the beginning of the year - A2 = 19,749 thousand rubles.

at the end of the year - A2 = 41981 thousand rubles.

A3. Slowly selling assets – the remaining items of Section II plus the item “Long-term financial investments” from Section I:

A3 = RA – A1 – A2 + fT = Z + dT + fT (31)

Where fT- long-term financial investments.

For the analyzed enterprise, slowly sold assets:

at the beginning of the year - A3 = 85896 – 1102 – 19749 + 0 = 65045 thousand rubles.

at the end of the year - A3 = 124150 – 1462 – 41981 + 3634 = 84341 thousand rubles.

A4. Hard-to-sell assets – articles of Section I minus long-term financial investments:

A4 = F - fT (32)

For the analyzed enterprise, assets that are difficult to sell are:

at the beginning of the year - A4 = 40146 thousand rubles.

at the end of the year - A4 = 74988 thousand rubles.

Balance sheet liabilities are grouped according to the urgency of their payment:

P1. The most urgent liabilities are accounts payable and other short-term liabilities:

P1 =Pt – Kt - fP (33)

For the analyzed enterprise, the most urgent obligations are:

at the beginning of the year - P1 = 20,742 thousand rubles.

at the end of the year - P1 = 34363 thousand rubles.

P2. Short-term liabilities – short-term loans and borrowings:

P2 = Kt (34)

For the analyzed enterprise, short-term liabilities:

at the beginning of the year – P2 = 14121 thousand rubles.

at the end of the year - P2 = 25064 thousand rubles.

P3. Long-term and medium-term liabilities – long-term loans and borrowings:

P3 = KT (35)

For the analyzed enterprise, long-term and medium-term liabilities:

at the beginning of the year – P3 = 0

at the end of the year – P3 = 0

P4. Constant liabilities – sources of own funds:

P4 = Ic= And +fp (36)

For the analyzed enterprise, permanent liabilities:

at the beginning of the year – P4 = 91179 thousand rubles.

at the end of the year - P4 = 143345 thousand rubles.

Grouping of assets and liabilities of an enterprise by degree of liquidity.

Table 7.

Columns 7 and 8 present the absolute values ​​of payment surpluses or deficiencies at the beginning and end of the reporting period:

Dj = Aj- Pj , j = 1, ….., 4, (37)

In columns 9 and 10 - respectively their values, taken as a percentage of the totals of the liability groups:

Dj/ Pj* 100 = (Aj- Pj) / Pj * 100 (38)

To determine the liquidity of the balance sheet, you should compare the results of the given groups for assets and liabilities. The balance is considered absolutely liquid if the following ratios exist:

ì A1³ P1

í A2³ P2 (39)

ï A3³ P3

î A4£ P4

In the analyzed balance sheet, the first inequality of system (39) has the sign opposite to that fixed in the optimal variant; the liquidity of the balance sheet differs from absolute. At the same time, it is impossible to talk about compensating for a lack of funds in one group of assets with an excess in another group, since compensation in this case takes place only in value, and in a real payment situation, less liquid assets cannot replace more liquid ones. Thus, we can conclude about the low liquidity of the balance sheet, the low ability of the enterprise to fulfill its short-term (current) obligations, i.e. pay “invoices”.

Comparison of the most liquid funds and quickly realizable assets with the most urgent obligations and short-term liabilities allows you to find out current liquidity. Comparison of slowly selling assets with long-term liabilities reflects promising liquidity. Current liquidity indicates the solvency (or insolvency) of the enterprise for the period of time closest to the moment under consideration. Prospective liquidity is a forecast of solvency based on a comparison of future receipts and payments (of which only a part is represented in the corresponding groups of assets and liabilities, so the forecast is quite approximate).

For a comprehensive assessment of balance sheet liquidity as a whole, it is used general liquidity ratio, calculated by the formula:

fl = (a 1 A1+a 2 A2+a 3 A3) / (a 1 P1 +a 2 P2 +a 3 P3) (40)

Where aj – weighting coefficients that are subject to the following restrictions:

ì a 1 > a 2 + a 3

í a 2 > a 3 (41)

î a 3 > 0

In Western accounting and analytical practice, the critical lower value of the indicator is given - 2, but this is only an approximate value, indicating its order, but not its exact normative value. The overall balance sheet liquidity indicator shows the ratio of the sum of all liquid funds of the enterprise to the sum of all payment obligations (both short-term and long-term), provided that various groups liquid funds and payment obligations are included in the indicated amounts with weighting coefficients that take into account their dependence in terms of the timing of receipt of funds and repayment of obligations.

Using the general liquidity indicator, changes in the financial situation of the enterprise are assessed from the point of view of liquidity. This indicator is also used when choosing the most reliable partner from several potential partners based on reporting.

Let a 3 = 0.2; a2 = 0.3; a 1 = 0.5, then the value of the general liquidity indicator for the analyzed enterprise will be:

at the beginning of the year – fl=

at the end of the year - fl=

This ratio shows how many rubles of the enterprise’s current assets are per ruble of current liabilities. During the analyzed period, the overall liquidity indicator of the enterprise decreased slightly (0.11).

However, the general liquidity indicator does not give an idea of ​​​​the enterprise’s capabilities in terms of repaying short-term obligations. Therefore, to assess the solvency of an enterprise, the following indicators are used:

1.absolute liquidity ratio, is the most stringent liquidity criterion, showing what part of short-term debt obligations can be repaid immediately. It is determined by the ratio of the most liquid funds to the amount of the most urgent obligations and short-term liabilities.

K a . l . = (d + ft) / (Pt – fp) (42)

For the analyzed enterprise, the absolute liquidity ratio is:

at the beginning of the year – K AL =

at the end of the year - K AL =

The normal limit for this indicator is:

TOa.l³ 0,2 (43)

This condition is not met. The value of the indicator equal to 0.02 means that every day 2% of the enterprise’s short-term liabilities are subject to repayment or, in other words, in the case of maintaining the cash balance at the level of the reporting date (mainly by ensuring a uniform receipt of payments from counterparties) short-term debt that occurs at the reporting date can be repaid in 50 days (1 / 0.02).

It should be noted that the level of the absolute liquidity ratio itself is not a sign of poor or good solvency. When assessing its level, it is necessary to take into account the rate of turnover of funds in current assets and the rate of turnover of short-term liabilities. If means of payment turn over faster than the period of possible deferment of payment obligations, then the solvency of the enterprise will be normal. At the same time, a constant chronic lack of cash leads to the fact that the enterprise becomes chronically insolvent, and this can be regarded as the first step on the path to bankruptcy.

The main factor in increasing the level of absolute liquidity is the uniform repayment of receivables.

2. liquidity ratio (intermediate coverage ratio) can be obtained from the previous indicator by adding accounts receivable and other assets to the numerator:

Kl= (d + dt + ft + ra) / (Pt – fp) (44)

For the analyzed enterprise, the liquidity ratio is:

at the beginning of the year – K l =

at the end of the year - K l =

The liquidity ratio (intermediate coverage ratio) shows what part of the current debt the organization can cover in the near future, subject to full repayment of receivables. The estimate of the lower normal bound for the liquidity ratio is:

Kl³ 0,8 ¸ 1,0 (45)

The obtained values ​​do not satisfy the given restrictions; in addition, even the emerging trend towards an increase in this ratio does not characterize the company on the positive side, since the increase in the value of the ratio was mainly associated with an increase in accounts receivable.

To increase the level of the ratio, it is necessary to promote an increase in the provision of inventories with own working capital and to reasonably reduce the level of inventories. The value of this particular coefficient most accurately reflects the current solvency of the enterprise.

3.coverage ratio equal to the ratio of the cost of all mobile (working) assets of the enterprise (less deferred expenses) to the amount of short-term liabilities:

KP= R.A. / (Pt – fp) (46)

For the analyzed enterprise, the coverage ratio is:

at the beginning of the year – Kp=

at the end of the year - Kp=

The coverage ratio shows the payment capabilities of the enterprise, assessed subject to not only the timeliness of settlements with debtors and favorable sales of finished products, but also the sale, if necessary, of other elements of material current assets. Unlike absolute coefficient liquidity and intermediate coverage ratio, showing instantaneous and current solvency; the coverage ratio reflects the forecast of solvency for a relatively long term. The following limitation is considered normal for the coverage ratio:

KP³ 2 (47)

During the analyzed period, the coverage ratio decreased, but remained above the norm. To increase the level of the coverage ratio, it is necessary to replenish the enterprise's own capital and reasonably restrain the growth of non-current assets and long-term receivables.

Table 8.

Analysis of financial ratios

Conclusions and proposals for further development of the analyzed enterprise.

During the reporting period, at the analyzed enterprise, the size of the balance sheet currency, which is the main indicator of the property “power” of the enterprise, increased significantly, however, the structure of the balance sheet itself became more “heavy”, and therefore more sensitive to revenue, although at the same time due to an increased share of depreciation charges in the cost structure, an enterprise can have money without having profit (since the sources of cash flow from core activities are profit and depreciation).

The largest part of non-current assets is represented by production fixed assets and unfinished construction, which characterizes the enterprise’s orientation towards creating material conditions for expanding the main activities of the enterprise. High growth rates of long-term financial investments reflect the financial and investment development strategy. On the one hand, increasing capacity and making long-term investments of funds is a good sign, indicating the enterprise’s desire to work for the future; on the other hand, carrying out such operations in conditions of an unstable financial condition can lead the enterprise to “freezing” funds, and, consequently, worsen the financial condition enterprises. Certain concerns are also caused by a significant increase in the cost of raw materials and supplies while reducing the level of work in progress.

However, there are also positive aspects. For example, a low share of long-term and short-term financial investments indicates the absence of diverted funds from core activities.

An increase in the share of borrowed funds in the structure of an enterprise's liabilities indicates an increase in the degree of dependence of the enterprise on external investors and creditors. A decrease in the volume of targeted financing and revenue may indicate a loss of interest of investors (in particular, the state) in the activities of the enterprise. In addition, a negative symptom is a large share of debt to the budget and extra-budgetary funds, which can lead to the application of sanctions by government authorities (blocking an account, imposing penalties on property). In addition, delays in payments on these payments also entail penalties, such as the accrual of penalties, the interest rates for which are quite high.

The three-component indicator of the type of financial situation characterizes an unstable financial condition, however, by the end of the reporting period, the enterprise managed to reach a normal level of financial instability from an abnormal level, which means that the enterprise, as a whole, improved its condition, although largely due to an increase in its own funds, rather than sales of products .

Thus, financial instability has become normal and reflects a trend towards improving financial health.

In addition, it should be noted the low liquidity of the balance sheet, i.e. the low ability of the enterprise to fulfill its short-term (current) obligations, i.e. pay “invoices”.

In this situation, the company should develop a program to restore normal solvency, as well as to increase the liquidity of the balance sheet, since the current financial condition leaves much to be desired. A number of measures can be recommended, for example:

• acceleration of capital turnover in current assets, which will result in a relative reduction in turnover per ruble;
• justified reduction of inventories and costs (to the standard);
• replenishment of own working capital from internal and external sources;
• the most risk-free way to replenish the sources of reserve formation should be recognized as an increase in real equity capital through the accumulation of retained earnings or through the distribution of after-tax profits into accumulation funds, subject to the growth of the part of these funds not invested in non-current assets;
• uniform repayment of accounts receivable. To implement this measure, it is necessary to find new ways to collect receivables, such as mutual offsets, reducing the provision of deferred payments, selling overdue receivables to banks (factoring);
• raising funds to pay off debts to the budget and extra-budgetary funds;
• in order to reduce costs and increase the efficiency of the main production, it is advisable to abandon in some cases some types of activities serving the main production (construction, repairs, transport, etc.) and switch to the services of specialized organizations; it is necessary to consider the possibility of transferring such auxiliary production to rent;
• if an enterprise makes a profit, but is still left with low solvency, it is necessary to analyze the use of profits, so contributions to the consumption fund can be considered as a potential reserve for replenishing the enterprise’s own working capital;
• carrying out marketing analysis to study supply and demand, sales markets and form on this basis the optimal range and structure of product production, possibly even searching for new suppliers;
• In order to reduce the deficit of its own working capital, a joint-stock enterprise may try to replenish it by issuing and placing new shares and bonds. However, it must be borne in mind that the issue of new shares may lead to a fall in their value and this may cause bankruptcy. Therefore in Western countries most often they resort to issuing convertible bonds with a fixed percentage of income and the possibility of exchanging them for shares of the enterprise.

Bibliographic list of used literature:

1. Vitvitskaya T. Electronic money in Russia / Economics and Life. – 1994. - No. 10.
2. Drobozina. Finance. Money turnover. Credit. M.: Finance and Statistics. - 1997.
3. European market of plastic cards / World of cards. - 1997. - No. 4.
4. Kovalev V.V. “Financial analysis: Capital management. Choice of investments. Reporting analysis. – 2nd ed., revised. and additional – M.: Finance and Statistics. - 2000.
5. Kovalev V.V. “Introduction to financial management.” – M.: Finance and Statistics. - 1999.
6. Lileev D. Plastic money / Business people. - 1993. - No. 10.
7. Makaev A. Common problems decide together /World of cards. - 1996. - No. 4.
8. K. Markelov “Smart machines for banks and offices.” - 1993.
9. Microprocessor cards: new markets /World of cards. - 1997. - No. 4,

10. Yu.Perlin, D.Sakharov, Yu.Tovb. ATM. What it is? /Electronic money. - 1997.

11. Savitskaya G.V. “Analysis of the economic activity of an enterprise: 4th ed., revised. and additional – Minsk: New Knowledge LLC. - 1999.

12. Spetsivtseva A.V. New plastic money. M. - 1994.

13. M. Sorokin “Development of magnetic cards in Russia” / Banking technologies. - 1995. - No. 7.

14. Usoskin V.M. Bank plastic cards... M. - 1999.

15. Financial management: theory and practice: Textbook / Ed. E.S. Stoyanova. – 5th ed., revised. and additional – M.: Publishing house “Perspective”. - 2002. – 656 p.

16. S. Tsuprikov “Microprocessor payment cards for development directions” / Banking systems. - 1995. - No. 31.

17. Sheremet A.D., Negashev E.V. “Methodology of financial analysis.” – M.: INFRA – M. – 1999.

18. Visa Internationa /Russian market of plastic cards. - 1996. - No. 9.

19. VISA International in Russia / World of cards. - 1996. - No. 9.

20. UEPS /Universal Electronic Payment Systems. – 1997.

Page 1

Increasing the share of debt capital in a company's capital structure is considered risky. The company is obliged to pay interest on loans on time and repay received loans in a timely manner. And this does not depend on the level of profit. If a company does not repay loans, it may go bankrupt, while dividends and other payments to shareholders are made only after the board of directors declares them. The debt-to-equity ratio shows the ratio of attracted resources and equity capital.

Level financial leverage increases with increasing share of borrowed capital. Compared to the option when the enterprise is fully financed with its own funds, for the capital structure with the highest level of borrowed funds, the range of variation doubled. This indicates an increase in the degree of investment risk when the capital structure changes towards an increase in the share of borrowed funds.

The calculation results showed that with an increase in the share of borrowed capital, the IRR of equity capital increases.

But suppose that the tax advantages associated with debt encourage the firm to become more leveraged and increase the likelihood of default or financial difficulty. Is there any way to convince potential lenders that there will be no games. The obvious way out is to give creditors the right to veto potentially dangerous decisions.

The traditional view in financial management suggests that companies should use debt capital, but no more than equity, since with increasing debt capital, the risk for shareholders increases significantly, since creditors have the first right to receive amounts due, while while dividend payments to shareholders are made from net profit. With significant debt payments and fluctuations in earnings, shareholders risk receiving less or no dividends.

The next significant indicator for measuring the overall economic results achieved with different ratios of equity and borrowed capital of an enterprise is the financial leverage indicator, which measures the effect of increasing the return on equity by increasing the share of borrowed capital in its total amount.

The effect of financial leverage characterizes the change in profit when rational use borrowed money. Increasing the share of borrowed capital allows, under certain conditions, to reduce both taxable profit and income tax. However, the risk of the organization’s financial activities increases.

This ratio characterizes the ability to repay long-term loans and the organization’s ability to function for a long time. Increasing the proportion of debt capital in the capital structure is considered risky. The organization is obliged to pay interest on loans on time and repay received loans in a timely manner.

The effect of financial leverage characterizes the change in profit with the rational use of borrowed funds. Increasing the share of borrowed capital allows, under certain conditions, to reduce both taxable profit and income tax. However, the risk of financial activity increases.

Celebrating positive sides performance of the enterprise, at the same time, it should be noted that some negative trends have emerged in the capital structure. This concerns, first of all, an increase in the share of borrowed capital and, accordingly, the degree of financial risk, although the value of the latter coefficient does not exceed the standard level for this industry.

While noting the positive aspects of the enterprise's work, at the same time it should be noted that some negative trends have emerged in the capital structure. This concerns, first of all, an increase in the share of borrowed capital and, accordingly, the degree of financial risk. The value of the last coefficient exceeds the standard level for this industry.

Consequently, a relatively cheaper source of financing is reinvested profits compared to bank loans, but it is limited in size. Bank loans are theoretically unlimited, but their price can increase significantly with an increase in the share of borrowed capital, as a payment for increasing risk.

An enterprise that uses only its own capital has the highest financial stability (the autonomy coefficient is close to 1), but limits the pace of its development and does not use the financial opportunities to increase profit on invested capital. An enterprise using borrowed capital has a higher potential due to the additional formation of assets and the possibility of increasing the financial profitability of the enterprise, however, it also generates financial risk and the threat of bankruptcy to a greater extent with an increase in the share of borrowed capital in the total amount of capital used.

This ratio shows the extent to which the company's assets are formed by creditors through borrowed capital. The purpose of assessing the ratio is to early identify signs of bankruptcy. Increasing the share of debt capital in the capital structure is risky. Regardless of the level of profit, it is necessary to repay received loans in a timely manner and pay interest on them.