Indicators of the effectiveness of managing capital invested in the property of an enterprise. Analysis of the efficiency of equity capital management using the example of Zavod Zhelobeton OJSC

The authorized capital of Profile LLC is 10,000 million rubles.

Accounting for authorized capital makes it possible to determine the amount of obligations of an enterprise to its participants (shareholders).

The authorized capital of Profile LLC is divided into shares of participants in accordance with the size of the contribution.

The state and change in equity and borrowed capital, as well as the structure of borrowed capital, has great importance for investors. The dynamics of the sources of the enterprise’s property are presented in Table 7.

Table 7. Dynamics of sources of property and their structure LLC “Profile”

As the data in table shows. 6, there have been some changes in the structure of the organization’s funding sources over three years.

In 2011, the share of equity capital increased by 26.54%. The share of short-term liabilities decreased by 89.67%. The amount of long-term liabilities decreased by 97 million rubles.

The share of equity capital in 2013 increased compared to 2012 by 24,337 million rubles. The amount of short-term liabilities increased significantly - by 50996 million rubles.

The growth rate of funding sources in 2013 amounted to 512.97%.

To analyze the structure of equity capital, identify the reasons for changes in its individual elements and evaluate these changes for the analyzed period, we will compile Table 8.

As can be seen from Table 8, during the analyzed period there were significant changes in the structure of equity capital.

If in 2011 it consisted of 50.8% of contributions to the consumption fund, 48.8% of additional capital and 0.1% of authorized capital, then by the end of 2013 its composition expanded significantly due to reserve capital. The consumption fund began to account for 55.8% of the company's equity capital.

The size of the authorized capital for the analyzed period did not change and remained equal to 10 million rubles.

Table 8. Dynamics of the equity capital structure of Profile LLC

The amount of additional capital changed slightly and by 2013 became equal to 5900 million rubles. There was a decrease in the share of additional capital by 4.9%.

The capital structure of the analyzed enterprise carries a risk for investors, since the enterprise operates primarily on borrowed capital.

It is advisable to analyze the efficiency of using equity capital in Profile LLC and assess the financial stability of this enterprise.

Analyzing the indicators presented in Table 9, the following conclusions can be drawn. Autonomy coefficients are among the main indicators of the structure of an enterprise’s sources of funds, and shows the share of the enterprise’s own funds in total amount sources. This indicator determines the share of owners in the total value of the enterprise's property. The maximum value of this coefficient = 1.

1.2 Indicators of efficiency of management of capital invested in the property of the enterprise

Business in any field of activity begins with capital, i.e. a certain amount of cash from which to purchase required amount resources, the process of production and marketing of products is organized.

Procurement

Production

Sales

Figure 1.4 - Stages of the capital circulation of an enterprise

In the process of its movement, capital passes through three successive stages of circulation: procurement, production and sales (Figure 1.4).

At the first stage, the enterprise acquires the fixed assets and production inventories it needs; at the second, part of the funds in the form of inventories goes into production, and part is used to pay employees, pay taxes, social security payments and other expenses. This stage ends with the release of finished products. At the third stage, finished products are sold and funds are transferred to the company’s account, and, as a rule, more than the initial amount by the amount of profit received from the business.

Consequently, the faster the capital completes the circuit, the more the enterprise will receive and sell products with the same initial amount of capital over a certain period of time. A delay in the movement of funds at any stage leads to a slowdown in capital turnover, requires additional investment of funds and can cause a significant deterioration in the financial condition of the enterprise. /15/.

The effect achieved as a result of accelerated turnover is expressed primarily in an increase in product output without additional attraction financial resources. In addition, due to the acceleration of capital turnover, the amount of profit increases, since it usually returns to its original monetary form in increments.

If the production and sale of products are unprofitable, then the acceleration of the turnover of funds leads to a deterioration in financial results and the “eating up” of capital. It follows that it is necessary to strive not only to accelerate the movement of capital at all stages of the circulation, but also to its maximum return, which is expressed in an increase in the amount of profit per one ruble of capital.

Increasing the profitability of capital invested in the property of an enterprise is achieved by rational and economical use of all resources, preventing their overexpenditure and losses at all stages of the circulation. As a result, capital will return to its original state in larger amount, that is, with a profit.

Thus, the efficiency of capital use is characterized by its profitability (profitability) - the ratio of the amount of profit to the average annual amount of principal and working capital.

To characterize the intensity of capital use, its turnover ratio is calculated (the ratio of proceeds from the sale of products, works and services to the average annual cost of capital).

The inverse indicator of the capital turnover ratio is capital intensity (the ratio of the average annual amount of capital to the amount of revenue). /16/.

In other words, return on assets (ROA) is equal to the product of return on sales (Rрп) and capital turnover ratio (Kob):

ROA = Cob Rрп (1.2)

Return on capital, which characterizes the ratio of profit and capital used to generate this profit, is one of the most valuable and most widely used indicators of the effective performance of a business entity. This indicator allows the analyst to compare its value with what it would be with an alternative use of capital. It is used to assess the quality and effective management of enterprise capital; assessing the ability of the enterprise to obtain sufficient return on investment; forecasting the amount of profit.

The basic concept of calculating profitability is quite simple, but there are different points of view regarding the investment base of this indicator.

Profit on total assets is the best indicator reflecting the efficiency of an enterprise. It characterizes the profitability of all assets entrusted to management, regardless of the source of their formation.

In some cases, when calculating ROA, non-productive assets (excess fixed assets and inventories, intangible assets, deferred expenses, etc.) are excluded from the total amount of assets. This exception is made to avoid making management responsible for generating profits on assets that clearly do not contribute to this. This approach is useful when using ROA as a tool for internal management and control and is not suitable for assessing the effectiveness of the enterprise as a whole. Shareholders and creditors do not entrust their funds to the management of the enterprise so that it invests them in assets that do not generate profit. If there are reasons to invest in such assets, then there is no reason to exclude them from the investment base when calculating ROA.

Exist different opinions and whether depreciable property (fixed assets, intangible assets) should be included in the investment base when calculating ROA at original or residual value. Undoubtedly, if we evaluate the effect of only fixed capital, then the average annual amount of depreciable property should be determined at its original cost. If we evaluate the efficiency of the entire total capital, then the value of depreciable assets must be taken into account at the residual value, since the amount of accrued depreciation is reflected in other balance sheet items (balances of free cash, work in progress, finished products, settlements with debtors for unpaid products) .

The second question that arises when determining return on capital is what profit to take into account: balance sheet (gross), profit from sales of products or net profit. In this case, it is also necessary to take into account the investment capital base.

If we determine the profitability of all assets, then the entire balance sheet profit is taken into account, which includes profit from sales of products, property and non-operating results (income from long-term and short-term financial investments, from participation in joint ventures and other financial transactions).

Accordingly, when determining the turnover of all assets, revenue should include not only its amount from the sale of products, but also revenue from the sale of property, securities, etc.

To calculate the profitability of the functioning of capital in the main activity, profit is taken only from the sale of products, works and services, and as the investment base - the amount of assets minus long-term and short-term financial investments, uninstalled equipment, remnants of unfinished capital construction, etc.

Return on production capital is calculated by the ratio of profit from sales of products to the average annual amount of depreciable property and tangible current assets.

To generalize the efficiency of using fixed assets, use the indicators of profitability (the ratio of profit to the average annual cost of fixed assets), capital productivity (the ratio of the cost of manufactured or sold products after deducting VAT, excise taxes to the average annual cost of fixed assets), capital intensity (the inverse indicator of capital productivity), specific capital investments per ruble of increase in production./29/. The relative savings of fixed assets are also calculated:

± Eopf = OPF 1 − OPF 0 IVP, (1.3)

where OPF 0, OPF 1 are, respectively, the average annual cost of fixed production assets in the base and reporting years;

IVP - index of production volume.

The most general indicator of the efficiency of using fixed assets is capital profitability. Its level depends not only on capital productivity, but also on the profitability of products. The relationship between these indicators can be presented as follows:

R opf = or(1.4)

R opf = ,(1.5)

where R opf is the profitability of fixed production assets;

P - profit from sales of products;

OPF - average annual cost of fixed production assets;

VP, RP - cost of manufactured or sold products;

FO - capital productivity;

R vp, R rp - profitability of manufactured products.

The change in the level of capital productivity of capital invested in property is, in turn, influenced by a number of factors. Factors that determine the profitability of fixed assets are shown in Figure 1.4.

The size of inventories in value terms can change due to both quantitative and cost (inflationary) factors.

Calculation of the influence of quantitative (K) and cost (C) factors on the change in the amount of reserves (Z) for each type is carried out using the method of absolute differences:

Zk = (K 1 - K 0) C 0, ΔZc = K 1 (C 1 - C 0). (1.6)

Figure 1.4 - Scheme of the factor model of fund profitability

The turnover period of inventories (raw materials and supplies) is equal to the time they are stored in the warehouse from the moment of receipt to transfer to production. The shorter this period, the smaller, other things being equal, the production - commercial cycle. It is defined as follows:

average value of inventory days of the period

value of the cost of using inventories

The duration of the presence of capital in finished products (P g.p.) is equal to the time of storage of finished products in warehouses from the moment they enter production until shipment to the buyer:

average value of finished products days of the period

cost of finished products released from production

The duration of the production cycle is equal to the time during which finished goods are produced from raw materials:

average production cost days of the period

cost of goods sold

When assessing the state of current capital, it is important to study the quality and liquidity of receivables. One of the indicators used for this purpose is the receivables turnover period (RP), or the debt collection period. It is equal to the time between the shipment of goods and the receipt of cash for them from customers:

average accounts receivable balances days of the period

amount of debt reduction

To characterize accounts receivable, an indicator such as the share of the reserve for doubtful debts in the total amount of accounts receivable is also determined. An increase in the level of this coefficient indicates a decrease in the quality of the latter. /16/.

The period of capital holding in cash is determined as follows:

average cash balances days of the period

amount of cash spent

As a result of the acceleration of turnover, a certain amount working capital enterprises are released. The absolute release of working capital occurs if the actual balances of working capital are less than the standard or balances of working capital for the previous period while maintaining or increasing the sales volume for this period.

Relative release of working capital occurs in cases where the turnover of working capital accelerates with an increase in production volume at the enterprise. Relative and absolute release of working capital have a single economic basis and mean additional cost savings for an economic entity.

The process of reproduction of fixed capital is the basis of life activity and production efficiency. Its movement is regulated and controlled at all levels of farm management.

The most important reproductive characteristics of the turnover of fixed assets are the indicators of their growth, renewal and disposal.

The growth rate reflects the increase in fixed capital for the period under review and is calculated as the ratio of newly introduced fixed assets to their value at the beginning of the period. The degree of renewal of the production apparatus is measured by the renewal coefficient - the ratio of the value of introduced fixed assets to their total value at the end of the period under review. Indicators of growth and renewal of fixed capital are interrelated quantities: the higher the share of growth, the higher the level of renewal, and vice versa.

Significant adjustments to this relationship can be made by the asset retirement ratio, which is the ratio of fixed assets retired from use in a given period to their value at the beginning of the period. /15/.

Renewal coefficient (K OBN), characterizing the share of fixed capital in the total cost at the end of the year:

K OBN = (1.12)

value of fixed capital at the end of the period

Term for renewal of fixed capital (T UBN):

value of fixed capital at the beginning of the period

T OBN = (1.13)

cost of received fixed capital

Retirement rate (K V):

value of disposed fixed capital

cost of capital at the beginning of the period

Growth coefficient (K PR):

amount of increase in fixed capital

K PR = (1.15)

their value at the beginning of the period

Wear coefficient (K WEAR):

amount of depreciation of fixed capital

K IZN = (1.16)

Usability factor (KG):

residual value of fixed capital

initial cost of fixed capital

An accurate calculation of the enterprise's need for working capital is carried out based on the time spent by working capital in the sphere of production and in the sphere of circulation.

Working capital turnover is closely related to its profitability and serves as one of the most important indicators characterizing the intensity of use of the enterprise’s funds and its business activity.

The capital turnover rate is characterized by the following indicators:

Turnover ratio (K rev):

And the enterprise is more stable from the point of view of the possibility of its reorientation in the event of changes in market conditions. Along with indicators of solvency and financial stability, the following indicators are used to assess the property status of an enterprise: 1) The amount of economic assets on the balance sheet of the enterprise. This indicator gives a generalized cost estimate of the value...

Let's calculate the indicators characterizing the effectiveness of capital structure management, presented in the theoretical chapter.

Let's calculate the level of net working capital using the formula presented in paragraph 1.3.

URCHOC 2013 = 26,994 / 127,638 x 100% = 21.1%

URCHOC 2014 = 25,359 / 118,435 x 100% = 21.4%

URCHOC 2015 = 28,680 / 126,252 x 100% = 22.7%

Figure 5 – Level of net working capital

Let's calculate the coefficient of autonomy (independence):

Cfn 2013 = 67,094 / 127,638 = 0.53

Cfn 2014 = 66,262 / 118,435 = 0.56

Cfn 2015 = 66,300 / 126,252 = 0.53

Figure 6 – Autonomy coefficient

Since the company does not have borrowed funds, calculate such indicators as the debt capital ratio and the debt-to-equity ratio (financial leverage).

In addition, as part of the analysis of the capital structure, it is advisable to assess the level of intensity and efficiency of the enterprise's use of its capital.

To analyze the level of intensity, turnover ratios are used. The real level and dynamics of the efficiency of using own and borrowed sources of financing make it possible to evaluate profitability indicators.

Let's calculate return on equity.

Rsk2013 = -15224 / 67,094 x100% = -23%

Rsk2014 = 32 / 66,262 x 100% = 0.05%

Rsk2015 = 46 / 66,300 x 100% = 0.07%

The negative value of the indicator in 2013 is due to the negative net profit (loss).

In subsequent periods, the value of the indicator is positive, but it should be noted that the indicators are low, which indicates a low amount of profit received from each unit of funds invested by the owners.

Based on the above, we can define optimization of the capital structure.

Optimization of capital structure (capital structure optimization) - calculation of such a ratio of own and borrowed sources, which maximizes the market value of the enterprise, ensuring optimal proportions between the level of financial stability and the level of return on equity capital.

The key factor that was identified during the analysis is the company’s lack of borrowed funds.

The actual cost of attracting them is always higher, however, the risks of bankruptcy are much lower. Due to the fact that sources of financing are different in nature, the company is forced to look for their optimal ratio in order to make the best use of them positive sides and neutralize their negative impact.

When forming the optimal capital structure, it is necessary to take into account that universal approaches and there are no criteria. For each enterprise it is necessary to develop individual approach and do not forget about the specifics of the business sector and the stage of development of the company.

The problem of capital structure is relevant both for Russian companies, and for foreign companies. When determining the optimal capital structure of an enterprise, the following main criteria can be distinguished:

Asset financing policy. The formation of a company's capital structure taking into account the specified criterion is based on the study of the relationships between the assets and liabilities of the balance sheet and allows us to determine the required amount and share of certain sources of financing;

Company value. There are many theories in the world that examine the relationship between company value and capital structure. In this case, the optimal structure is the one that maximizes the market value of the company;

Cost of capital. As is known, borrowed capital, like equity capital, has its own cost of servicing for an enterprise; here, the optimal capital structure is understood as a structure that minimizes the cost of capital.

Risks. During the period of its existence, an enterprise has to bear and overcome different kinds risks. This may be the risk of bankruptcy, the risk of partial or complete non-repayment of borrowed funds, the risk of debt servicing (non-payment of interest).

Profitability. As is known, due to the effect of financial leverage, the use of borrowed funds can lead to an increase in the return on equity of an enterprise. The optimal capital structure in this case increases the profitability of the company, thus making it possible to acquire maximum profit at the current level of equity capital.

Of course, each of the optimization criteria described above is important and significant to a certain extent when forming the company's capital structure.

However, the most significant of the selected company performance indicators, which characterizes the efficiency of capital use, is return on equity (ROE), since one of the main essential characteristics of capital is its ability to generate profit.

The following figure shows possible ways to improve capital efficiency.

Figure 7 – Possible methods improving the efficiency of capital use

Since the Berezka hotel complex does not have borrowed funds in its capital structure, it is advisable to increase retained earnings.

One of the events is a special offer that the hotel complex regularly holds.

We will develop a special offer that will attract additional customers and increase the company’s profits.

Title: "Away from the bustle."

The package price includes:

Accommodation in a comfortable room;

Breakfast in buffet mode;

Visit to the fitness center (swimming pool, Finnish and Turkish saunas, jacuzzi, Gym);

Skating rink and tubing in winter;

Compliment from the hotel upon arrival;

Russian bathhouse for 2 hours for two;

Massage from the Spa-Saigon salon to choose from: “Flight above the ground” (foot massage, 30 min), “Eastern sacrament” (head, face and neck massage, 30 min);

Late check-out, subject to availability;

Transfer within the city

Table 4 – Forecasted revenues*

*calculated based on the experience of selling similar service packages by the hotel complex

CONCLUSION

The object of the study is the Beryozka hotel complex.

As a result of the analysis of the capital structure, the following conclusions were obtained. In 2013, the largest share in the structure of equity capital was occupied by revaluation outside current assets(76%), followed by retained earnings (24%), and the share of the authorized capital is no more than 1%. In 2014, the largest share in the structure of equity capital is occupied by the revaluation of non-current assets (76%), followed by retained earnings (24%), and the share of the authorized capital is no more than 1%. The structure of equity capital in 2015 remains unchanged.

During the period under review, there is a decrease in equity capital, primarily due to a decrease in the company's retained earnings.

It should be noted that the company has no borrowed funds during the period under review.

The level of net working capital reflects the amount of current assets generated from own sources. It is believed that the higher the share of net working capital, the higher the solvency of the organization. Thus, the growth of the indicator from 21.1% to 22.7% is positive factor.

The autonomy coefficient characterizes the independence of an enterprise from borrowed funds and shows the share of its own funds in the total cost of all funds of the enterprise. Standard value The indicator is considered to have an autonomy coefficient value greater than 0.5. The autonomy coefficient of the enterprise in question has decreased slightly since 2014: from 0.56 to 0.53 in 2015, which indicates a decrease in financial stability and a slight increase in the enterprise’s dependence on external sources of financing.

Since the company does not have borrowed funds, it is not possible to calculate such indicators as the debt capital ratio and the debt-to-equity ratio (financial leverage).

Return on equity shows the amount of profit that an enterprise (organization) will receive per unit of equity value. The negative value of the indicator in 2013 is due to the negative net profit (loss). In subsequent periods, the value of the indicator is positive, but it should be noted that the indicators are low (no more than 1%), which indicates a low amount of profit received from each unit of funds invested by the owners.

The task of choosing the optimal capital structure is one of the most serious and pressing problems of financial management. After all, the capital structure has a direct impact on the financial results of the enterprise and determines many aspects of its activities. Capital structure management consists of creating a mixed structure that represents the optimal ratio of equity and debt that minimizes total capital costs and maximizes the market value of the selected company.

The key factor that was identified during the analysis is the company’s lack of borrowed funds. Since the Berezka hotel complex does not have borrowed funds in its capital structure, it is advisable to increase retained earnings.

One of the events is a special offer that the hotel complex regularly holds. We will develop a special offer that will attract additional customers and increase the company’s profits.

Title: "Away from the bustle."

The cost of the package is 14,000 rubles. (2 days).

The total net profit for the year is expected to be 651 thousand rubles. This amount can completely constitute retained earnings in the balance sheet structure.

Forecast values ​​calculated for 2017 show that equity capital is growing due to the growth of retained earnings, which is a positive factor and indicates the effectiveness of the proposed measure.

BIBLIOGRAPHY

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security at the corporate level//Microeconomics.–2014.–N1.–

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security of Russia//Graduate student and applicant.–2014.–N3.–P.21–25.

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10 http://berezka74.ru – Official website of the hotel complex.

APPENDIX A – BALANCE SHEET OF THE ENTERPRISE

APPENDIX B – FORECASTED STRUCTURE OF THE ENTERPRISE’S OWN CAPITAL

The development of an enterprise, first of all, depends on the availability and efficiency of equity capital management. Using the DuPont model and the chain substitution method, it is recommended to analyze changes in return on equity, which depend on the following factors: return on sales, asset turnover ratio, capital structure.

where Rск – return on equity,

Pch – net profit,

SK – equity capital,

A – assets of the enterprise,

B – revenue,

ZK – borrowed capital,

Rpr – return on sales (net),

Cob is the turnover ratio of all assets of the enterprise.

The impact of return on sales () is determined by the formula:

(17)

where Rpr – change in profitability of sales compared to the first year

The impact of changes in asset turnover (ΔRk rev) is determined by the formula:

(18)

where Kob – change in the turnover ratio compared to the first year

The impact of changes in capital structure is determined by the formula:

(19)

The total influence of all factors is equal to:

The increase in return on equity was 26%. The greatest impact on the change in return on equity was exerted by an increase in the capital structure of 1%, other profitability indicators decreased, the turnover of all assets of the enterprise decreased by 118% and the change in the capital structure had an insignificant impact of 11%. Because The company has a very high level of equity capital.

2.8. Debt capital management

The effective functioning of an enterprise is impossible without attracting borrowed capital. The efficiency of debt capital management is determined by the effect of financial leverage.

The effect of financial leverage is an increase in the return on equity due to the use of a loan despite its payment.

(21)

where L is the profit tax rate, L =0.24;

R E - economic profitability, %;

(22)

Operating profit (P E) is the sum of profit before tax (P dn) and financial costs.

P E = P dn + FI (23)

P E = 1000412 + 241782 = 1242194 (2010)

P E = 5460051 + 241782 = 5701833 (2011)

SISP – average calculated interest rate, %

FI – financial costs for all loans and borrowings of the enterprise for the analyzed period (data on financial costs are given in the accounting certificate in Appendix 2).

The increase in return on equity due to the use of credit in the current year amounted to -0.49%. Which is much less than in the previous year (0.077%). This suggests that the company should attract more credit to increase the EGF value.

No company can do without attracting borrowed sources. It is necessary to analyze the structure of borrowed capital using the layout of analytical table 3.14. The quality of borrowed capital should be assessed. For this purpose, it is recommended to determine the share of long-term sources in the total amount of borrowed capital. The higher the share of long-term liabilities, the higher the quality of borrowed capital.

Assessment of the composition and structure of borrowed capital.

From the above data, it can be seen that long-term liabilities increased by 15.781%, while accounts payable and short-term liabilities remained at low levels.

Debt capital management also includes an analysis of the organization's creditworthiness and assessment of the effectiveness of the use of borrowed funds.

The creditworthiness of a company is whether it has the prerequisites to receive a loan and repay it within the terms established by the agreements. Creditworthiness is characterized by:

The reputation of the organization, which is determined by the timeliness of settlements on previously received loans, the quality of the reports submitted, the responsibility and competence of management;

Current financial condition and the ability to produce competitive products;

The ability to mobilize funds from various sources if necessary.

We will assess the organization's creditworthiness on the basis of a rating assessment, including five financial indicators: absolute liquidity ratio, critical liquidity ratio, investment coverage ratio, inventory coverage ratio, return on sales. There are five credit rating classes for each indicator. Depending on the accepted actual values, it can be assigned to the appropriate creditworthiness class (Table 3.15). The first class corresponds to very high creditworthiness, the second – high, the third – medium, the fourth – low, the fifth – very low.

Based on the data obtained, a comprehensive creditworthiness indicator is calculated. The sequence for calculating this indicator is as follows. The resulting credit class number for each indicator is multiplied by the weighting coefficient of the indicator. The multiplication results are then added together. The result is a comprehensive indicator of creditworthiness, expressed in points or percentages.

Creditworthiness assessment based on key indicators

The company has a fairly strong position as a borrower. Credit rating class is 3, which affects the relatively high lending percentage.

Working capital management

The effectiveness of working capital management is assessed by turnover indicators and depends on the composition and structure of current assets.

Working capital (current capital, current assets) are funds that circulate during the year or one production cycle.

It consists of the following main elements: inventories, accounts receivable, additional funds.

Management of current assets begins with their analysis. Based on financial statements, it is recommended to determine the composition of current assets as a whole and by individual components. The results are entered in table 3.13

To assess the turnover of current assets (working capital), the following indicators are used:

(25)

(2010)

(2011)

where: K rev – turnover ratio of current assets in times. It shows the turnover rate of current assets.

Thus, the company's assets will turn into revenue 5.5 times in 2010 and 3.835 times in 2011.

(26)

where O is the duration of one revolution in days.

It took 66 days for the company’s assets to turn into revenue in 2010, and 95 days in 2011.

Analysis of current assets

The analysis shows that during the reporting period, the amount of reserves increased by 476,461 thousand rubles, cash decreased by 357,151 thousand rubles. The company's accounts receivable increased by 860,709 thousand rubles. But in general, the number of current assets of the enterprise increased to 4,268,931 thousand rubles. The largest share in them is accounts receivable = 54.73%, the smallest is cash (2.66%).

Indicators of the quality of accounts receivable management:

Y= (27)

Y= 48.05% (2010)

У= 0.44 (2011)

where Y is the share of receivables in the total amount of current (current) assets, %

Shows what share receivables occupy in the total amount of current assets. An increase in this indicator indicates an outflow of funds from circulation.

K= (28)

K= 11.44 (2010)

where: K is the receivable capacity, rub./rub.

Shows the volume of sales carried out by the enterprise on credit terms.

Y= 0.00 (2010)

Y= 0.00 (2011)

Information on doubtful accounts receivable is given in the accounting certificate in Appendix 2.

Indicators of the quality of accounts receivable management.

The receivables turnover ratio shows that receivables turn into revenue approximately 9 times per year. The loan repayment period has increased by almost 11 days. There is no share of doubtful accounts receivable.

Optimal management of current assets involves monitoring the duration of the operating, production and financial cycle.

Based on financial statements, it is necessary to determine the duration of the operating, production and financial cycles using the following formulas.

PPV = 43.847 + 42.485 = 86.332

POC – duration of the operating cycle;

PPT – duration of the production cycle;

Accounts receivable turnover period.

Average time (days) of turnover of raw materials and materials, finished products, work in progress, respectively.

42,060 (32) =0,532 (33)

Then we calculate the duration of the financial cycle (PFC):

PFC = 86.332 – 35.365 = 50.968

Accounts payable turnover periods (days),

When managing working capital, it is important to determine whether the current activities of the company are supported by available financial resources. To do this, we will calculate the indicator of financial and operational needs (FEP)

FEP=1818885+2336335-1621172=2534048

If FEP< 0, то компания не испытывает недостаток текущего финансирования.

If FEP >0, then the company lacks current financing.

CHOC=42833133-42083089+858014=1608058

where DKZ – long-term loans and borrowings

PI(D) is calculated - potential surplus (deficit) of funds

PI(D)=2534048-16088058=925990

Then you should determine the amount of relative savings (overexpenditure) of working capital using the formula:

(40)

where EC rel – relative savings (overexpenditure) of working capital, rub.

N 1 – sales revenue in the analyzed year.

The time during which financial resources are in inventories and accounts receivable is 44 days, when they are withdrawn from circulation - 51 days.

FEP > PSC, therefore, the company is financially unstable. The financial and operating needs of the enterprise amount to 2,534,048 thousand rubles, and the net working capital is 1,608,058 thousand rubles. There is a payment deficit equal to 925,990 thousand rubles.

Assessment of production and financial leverage.

The process of asset management aimed at increasing profits is characterized by the category of production and financial leverage. Production-financial leverage summarizes the overall risk of the company regarding the possible lack of funds to cover current expenses and financial costs for servicing borrowed capital.

To assess production and financial leverage, the following formulas are used:

Where PFL is production and financial leverage

where EOL is the effect of operating leverage,

T Pr eq. – growth rate of operating profit

P pr - profit from sales,

FI – interest on loans and heims

T N pr – revenue growth rate

where EFL is the effect (level) of financial leverage,

T Pch pr – growth rate of net profit.

Thus, an increase in the level of production leverage means an increase in the share of non-current assets, i.e. means of production that are the main source of generating income for the enterprise. The effect of leverage is manifested in the fact that the acquisition of new fixed assets allows you to obtain additional profit.

Financial leverage allows you to increase the share of long-term borrowed funds, resulting in additional profit.

Production and financial leverage = EOL * EFL = 2.601 * 0.963 = 2.51.

The peculiarity of the coefficient for OJSC Verkhnevolzhsknefteprovod is that the lion's share of equity capital is occupied by non-current assets, which will bring good profits to the company in the future. Hence the high risk of any loan.

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Year: 2006

Introduction

The object of research in this work is the process of formation and use of equity capital, and the subject is the equity capital of VITORG PLUS LLC.

The purpose of the course work is to analyze the efficiency of managing an enterprise's equity capital using the example of VITORG PLUS LLC. To achieve this goal, it is necessary to solve the following tasks:

Study of the economic essence of the enterprise's capital;

Research the structure and sources of the enterprise's own capital;

Analysis of equity capital management.

In preparing the course work, the following methods were used: methods of summarizing practical experience; methods of information processing, methods of financial analysis.

In preparing the course work, the regulatory legal acts of the Russian Federation, scientific and educational manuals and monographs, publications of specialized periodicals, materials financial statements LLC "VITORG PLUS"

Structurally, the work consists of an introduction, two chapters and a conclusion.

The introduction substantiates the relevance of the work and sets out the purpose and objectives of the research.

The first chapter examines theoretical issues of the sources of an enterprise's own capital: essence, classification and types.

The second chapter of the thesis examines the effectiveness of equity capital management using the example of VITORG PLUS LLC: the results of the company’s activities, the structure of its own and borrowed sources of financial resources and the efficiency of their use are analyzed.

In conclusion, the main conclusions from the study are formulated.

1. Own capital and its role in the activities of the enterprise

1.1. Economic essence of enterprise capital

From the point of view of economic theory, in order to start production, the presence of four factors of production is necessary: ​​labor, land, capital, entrepreneurship. At the same time, labor means human activity aimed at achieving some useful result. Under land as a factor of production in economic theory, we mean not only land as such, but all other benefits that nature provides for human use. Entrepreneurship is a special factor through which the three factors of production listed above are combined. Capital represents the entire accumulated supply of funds necessary for the production of material goods. It is capital that is closely related to financial resources.

Economists often associate the concept of capital with the ability to generate interest or some other income. Depending on what is the source of income received, capital in economic theory is called a variety of things, objects, and phenomena.

Capital - means of production, means produced means of production or goods that can be used to produce future goods. Machinery and equipment are capital, along with industrial and commercial buildings and structures. This approach has its roots in classical political economy. A. Smith considered accumulated labor as capital, D. Ricardo - the means of production, and the physiocrats - land.

Such definitions of capital have become widespread in modern economic theory. Thus, U. Baumol and A. Blinder define capital as the reserves (stocks) of an enterprise, equipment and other production resources owned by a company, an individual or some other organizations. P. Samuelson and W. Nordhaus argue that capital consists of durable goods created by the economy for the production of other goods. These goods include the countless machines, roads, computers, hammers, trucks, rolling mills and buildings that make up the landscape of the modern economy. D. Begg, S. Fischer, R. Dornbusch also believe that physical capital is the stock of production goods that serve to production of other goods and services. Physical capital, in their opinion, includes the equipment of conveyor lines for assembling cars, railways that provide transportation services, school buildings that provide education services, residential buildings that provide housing services, and even family consumer durables such as televisions that provide entertainment.

The concept of capital is often associated with money and financial resources. Thus, J. Robinson argues that capital, when it is contained in finances that have not yet been invested, is a sum of money. D. Begg, S. Fischer, R. Dornbusch propose to distinguish from the “physical capital” of a company its “financial capital,” which is represented by money and securities. According to B. Mintz and M. Schwartz, capital is a universal commodity of the business world. Unlike iron, coal and machinery, which are important to some firms and unimportant to others, capital is necessary for all corporations. It is needed both in the narrow sense for payments to hired workers and suppliers, and in the broad sense for the re-equipment and development of an industrial enterprise.

Capital is the most important category Marxist political economy. According to K. Marx, capital is a complex concept that, on the one hand, covers the entire system of production relations of bourgeois society, and on the other, is an instrument of exploitation.

K. Marx gives at least three definitions of capital. Firstly, capital as a self-increasing value, which follows from the general formula of capital M - C - M." Secondly, "... capital is not a thing, but a certain, social production relation belonging to a certain historical formation of society, which represented in a thing and gives this thing a specific social character." Thirdly, "capital is a movement, a process of circulation that goes through various stages, a process that, in turn, contains three. various shapes circulation process. Therefore, capital can only be understood as movement, and not as a thing at rest."

Returning to the issue of the relationship between capital and financial resources, it can be noted that economic theory in this case connects it with capital represented in shares, bonds, bills and other forms. Its emergence and circulation are closely related to the functioning of the market for real assets, i.e. the market in which purchases and sales take place material resources. With the advent of securities, or stock assets, there is a kind of bifurcation of capital. On the one hand, there is real capital, represented by production assets, and on the other hand, it is reflected in securities.

The emergence of this type of capital is associated with the development of the need to attract increasing amounts of credit resources due to the complication and expansion of commercial and industrial activities. Thus, the stock market historically begins to develop on the basis of loan capital, since the purchase of securities means nothing more than the transfer of part of the monetary capital on a loan, and the paper itself receives the form of a loan document, according to which its owner acquires the right to a certain regular income in the form of interest or dividends on loaned capital. The security (title of ownership) that arises as a result of such a transaction retains its owner's ownership of the loaned capital and, in addition, gives the right to increase it through interest or dividends.

Having appeared, such capital begins to live an independent life. This is manifested in the fact that its market value (the total market price of securities) changes not only under the influence of the functioning of real assets that represent the securities, but also (and often to the most significant extent) depending on other factors, such as, for example, like political events. The value of stock assets can fluctuate widely in relation to the size of firms' production assets, either exceeding them several times or decreasing to almost zero. The life of securities, independent of real assets, is also manifested in independent circulation on the market. From a theoretical point of view, this situation becomes possible due to the fact that, firstly, as a result of the act of lending, capital-property is separated from capital-function and, secondly, the security represents potential monetary capital with a high degree of liquidity, that is, the ability to easily be converted into cash.

1.2. Structure and sources of the enterprise's own capital

Own capital is understood as a set of economic relations that make it possible to include financial resources belonging either to the owners or to the economic entity itself into economic circulation.

TO internal sources equity capital include, first of all, authorized capital, profit from various activities, depreciation of fixed assets.

Authorized capital is an organizational and legal form of capital, the amount of which is determined by the charter or agreement on the founding of an enterprise. The authorized capital can be formed in the form of shares of participants in a limited liability company or by issuing shares when creating a joint-stock company (JSC).

Contribution to the authorized capital can be made in the form of cash, in property form and in the form of intellectual property: patents, licenses, projects. The authorized capital creates the basis for the activities of the established enterprise and is reflected in the liabilities side of the enterprise’s balance sheet.

Reserve capital is a reserved part of the enterprise's own capital, intended for internal insurance of its economic activity. The size of this reserve part of equity capital is determined by the constituent documents. The formation of reserve capital is carried out at the expense of the enterprise’s profit ( minimum size profit deductions to the reserve fund are regulated by law).

Special (target) financial funds include purposefully formed funds of own financial resources for the purpose of their subsequent targeted spending. These financial funds usually include: depreciation fund, repair fund, labor protection fund, production development fund, etc. The procedure for the formation and use of funds from these funds is regulated by the charter and other constituent documents enterprises.

Other forms of equity capital include payments for property (when renting it out), payments to participants (for payment of income to them in the form of interest or dividends) and some others, reflected in the first section of the liability side of the balance sheet.

Retained earnings characterize the part of the enterprise's profit received in the previous period and not used for consumption by the owners (shareholders, shareholders) and staff. This part of the profit is intended for capitalization, i.e. for reinvestment in production development. In terms of its economic content, it is one of the forms of reserve of the enterprise’s own financial resources, ensuring its production development in the coming period.

Sales revenue is the main source of formation of the enterprise's own financial resources. In particular, it is a source of depreciation (in terms of cost) and a source of calculating profit from the sale of goods and services (business income). It is formed as a result of the enterprise’s activities in three main areas:

Main;

Investment;

Financial.

Income from sales, according to Art. 249 of the Tax Code of the Russian Federation, revenue from the sale of goods (work, services) both of one’s own production and previously acquired, revenue from the sale of property (including securities) and property rights are recognized

The income of the enterprise can be divided into two items:

Income from the main activities of the enterprise;

Income from other sales or other activities.

Table 1.1 Structure of income and expenses of the enterprise

Profit (loss) is the positive (negative) difference between the enterprise’s income and its expenses. When generating profit, the following income and expenses are taken into account:

The Profit and Loss Statement shows the following components included in the profit of the enterprise:

Gross profit is the difference between revenue from the sale of goods and services (minus VAT and excise taxes) and the cost of goods and services sold, excluding commercial and administrative expenses;

Profit (loss) from sales - gross profit minus commercial and administrative expenses;

Profit (loss before tax) = profit (loss) from sales + interest receivable - interest payable + income from participation in other organizations + other operating income - other operating income + non-operating income - non-operating expenses;

Profit (loss) from ordinary activities - the difference between profit before tax and the amount of income tax;

Net profit is equal to the amount of profit from ordinary activities increased by the amount of extraordinary income, minus the amount of extraordinary expenses.

Depreciation of fixed assets is included in the cost of production according to established standards to the book value of fixed assets. Since depreciation charges are included in the cost price, their value is reflected in the total amount of taxes payable. The larger the amount of depreciation deductions, the lower the amount of income tax and property tax for legal entities. This value allows the company to accumulate its own funds for investment. In Russian and international practice there are various ways depreciation calculations: straight-line write-off method; production method; sum of years (numbers) method; Declining book value (declining balance) method.

Net profit is the goal and, as a rule, the result of the economic activity of any enterprise, is distributed and is the source of the formation of the following monetary funds:

Reserve capital: the monetary fund of an enterprise, which is formed in accordance with the law and constituent documents from deductions from profits remaining at the disposal of the enterprise after paying taxes and other obligatory payments to the budget. It is used if it is necessary to cover the losses of the reporting year, pay dividends in the absence or insufficiency of the profit of the reporting year for these purposes. Therefore, it is advisable to store funds sent to the financial reserve in liquid form so that they generate income and, if necessary, can be easily converted into cash capital.

Accumulation fund: money intended for the development of production. It is necessary both for the development of the main production in order to increase the property of the enterprise, and for financial investments to make a profit.

Consumption fund: funds allocated for social needs, financing of non-production facilities, compensation payments, etc.

Internal (own) sources of financing are characterized by the following positive features:

a) Simplicity and speed of attraction;

b) High return on the criterion of the rate of return on investment of capital, since they do not require payment of loan interest in any of its forms;

c) Significant reduction in the risk of insolvency and bankruptcy of the enterprise when using them;

d) Full retention of management in the hands of the original founders of the company.

However, they have the following disadvantages:

a)Limited volume of attraction, and, consequently, opportunities for significant expansion of investment activity under favorable investment market conditions:

b)Limited external control over the efficiency of using one’s own investment resources, which, if managed unskillfully, can lead to severe financial consequences for the company.

2. Analysis of the efficiency of equity capital management using the example of VITORG PLUS LLC

2.1. Brief description of the enterprise

The object of the study is the Limited Liability Company "VITORG PLUS", which was formed on April 10, 1998.

According to the Charter of the Company, the sole founder is the Limited Liability Company STYLES LLC.

The main goal of the enterprise is the complete and comprehensive satisfaction of all client needs within the scope of activity with the participation of professional managers and specialists.

The external environment of the enterprise is characterized by two groups of factors: factors of direct and indirect impact.

Factors of direct impact include: state; suppliers; consumers; competitors.

The relationship between an enterprise and the state is that the state directly controls the state and development of the economy. VITORG PLUS LLC is guided in its activities by laws and regulations, regulations, recommendations, requirements government agencies authorities. The enterprise regularly makes tax payments and similar mandatory contributions to budgets of various levels and extra-budgetary funds.

Among the competing organizations for VITORG PLUS LLC are MSS LLC, DOK LLC, Realt CJSC, etc.

The competitive advantage of VITORG PLUS LLC is mainly its lower price level, because The company carries out direct supplies of materials, bypassing intermediary organizations.

The organizational structure of the enterprise is shown in Fig. 2.1. According to this scheme, we can conclude that the enterprise has a linear-functional organizational structure.

The activities of the enterprise involve close interaction between all structural divisions, therefore the relevant regulations on departments and job descriptions of specialists are widely used.

Rice. 2.1. Management structure of VITORG PLUS LLC

2.1. Equity management analysis

Own financial resources belong to the business entity itself, and their use does not entail the possibility of losing control over the activities of the enterprise. In business practice, these resources are used mainly to finance fixed assets, long-term investments and partly to form working capital. Ownership is the most important factor motivating the efficient use of financial resources.

The structure of the company's balance sheet liabilities is presented in Table. 2.1. According to the balance sheet data, the largest share falls on the company's borrowed funds (about 82% at the beginning of the year and 67% at the end of the year). The share of equity capital is respectively 18 and 33% at the beginning and end of the analyzed period. During the period under review, equity capital increased most significantly. Therefore, the first paragraph of this chapter is devoted to the analysis of the enterprise’s own financial resources.

Table 2.1

Liability structure of the enterprise's balance sheet.

According to the calculations presented in table. 2.1. the increase in equity capital was 14% (16,457 tr.) compared to the previous year, and the increase in long-term borrowed funds was 8% (10,657 tr.). The amount of short-term borrowed funds decreased by 22% (-11,049 rubles).

The main objectives of equity capital management are:

Determining the appropriate amount of equity capital;

Increasing, if required, the amount of equity capital through retained earnings or additional issue of shares;

Determining the rational structure of newly issued shares;

Determination and implementation of dividend policy.

The analysis of the structure of the enterprise's own funds is presented in Table. 2.2.

Table 2.2

Structure of own funds

The following changes occurred in the structure of equity capital during the year. In absolute values, only the amount of retained earnings changed by 29,589 - 13,132 = 16,457 thousand rubles. This influenced changes in the structure of equity capital: the share of retained earnings increased from 96.4% to 98.4%, and the shares of authorized and additional capital decreased to 0.8% from 1.9 and 1.7%, respectively.

Thus, retained earnings predominate in the structure of equity. Since the enterprise’s activities are profitable, there is a tendency for retained earnings to grow.

It is advisable to determine the enterprise's security with its own sources of funds.

Three indicators of the availability of sources for the formation of reserves and costs correspond to three indicators of the provision of reserves and costs with sources of formation:

1. Surplus (+) or deficiency (-) of own working capital:

+(-) FS = SOS -ZZ;

where ZZ - inventories and costs

SOS - own working capital (defined as the difference between the amount of equity capital and non-current assets

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

+(-) FT = SD - ZZ;

where SD are own and long-term borrowed sources

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

+(-) FO = OI - ZZ;

where OI are the main sources of formation of reserves and costs (SD + short-term attracted resources)

Using these indicators, we can determine a three-component indicator of the type of financial situation:

S(Ф) = 1 if Ф>0

S(Ф) = 0 if Ф<0

It is possible to distinguish 4 types of financial situations:

1.Absolute independence of financial condition. This type of situation is extremely rare, represents an extreme type of financial stability and meets the following conditions:

that is, a three-component indicator of the type of situation S = 1;1;1

2. Normal independence of financial condition, which guarantees solvency: +(-) FS<0;

that is, S = 0;1;1

3. Unstable financial condition, associated with a violation of solvency, but in which it is still possible to restore balance by reducing accounts receivable and accelerating inventory turnover:

that is, S = 0;0;1

4. Crisis financial condition, in which the enterprise is completely dependent on borrowed sources of financing. Own capital and long-term and short-term credits and borrowings are not enough to finance working capital, that is, replenishment of inventories comes from funds generated as a result of the slowdown in repayment of accounts payable:

that is, S = 0;0;0

The calculation results are presented in table. 2.3. Based on the data obtained, we can conclude that the company at the beginning of the year was characterized by an unstable financial condition, and at the end of the year - normal financial independence.

Table 2.3

Classification of the type of financial condition of an organization

At the beginning of the year, the lack of own working capital amounted to -39,072 thousand rubles, which means financing of most of the current assets through borrowed capital (at the end of the year, the lack of own working capital amounted to 20,925 thousand rubles). There is also a shortage of own and long-term borrowed sources at the beginning of the year - 25,448 thousand rubles. However, by the end of the year there was a surplus in the amount of 9156 thousand rubles. which contributed to increasing the financial stability of the enterprise from unstable at the beginning of the year to normal at the end of the year.

Return on equity allows you to determine the efficiency of using the capital invested by the owners and compare it with the possible profit from investing these funds in other securities. Shows how much profit is received from each unit of money invested by the owners of the enterprise. This indicator serves as an important criterion when assessing the level of stock quotes on the stock exchange.

Return on equity:

Rsk = (Pp/Iss)*100,

where Rsk is return on equity;

Iss - sources of own funds.

This ratio shows how much income investments in a given business bring to investors. Those who have invested their funds for a long term are primarily interested in its growth, because it characterizes how effectively their own capital is used. Like return on assets, it is more appropriate to calculate this ratio using the average equity value for the period, since some of the profits are reinvested throughout the year.

The values ​​of the indicators for calculating the return on equity ratio are presented in table. 2.4.

Table 2.4

Return on equity

Based on the results obtained, we can conclude that the return on equity is at a very high level, which is associated with a fairly low value of the authorized capital. At the same time, there is a tendency for profitability to decrease; during the analyzed period, it decreased by 17%. This reduction occurred due to the fact that the growth rate of sources of own funds exceeded the growth rate of net profit. We can say that the efficiency of investing profits in business is reduced.

As part of the internal sources of formation of its own financial resources, the main place belongs to the profit remaining at the disposal of the enterprise; it forms the predominant part of its own financial resources, ensures an increase in equity capital, and, accordingly, an increase in the market value of the enterprise. Depreciation charges also play a certain role in the composition of internal sources, especially in enterprises with a high cost of their own fixed assets and intangible assets; however, they do not increase the amount of the enterprise’s own capital, but are only a means of reinvesting it. Other internal sources do not play a significant role in the formation of the enterprise's own financial resources.

An analysis of the enterprise's profit is presented in table. 2.5. The amount of total profit is influenced by the following factors: sales revenue, cost of production, income and expenses from other sales, operating income and expenses.

Table 2.5

Profit Analysis

According to the data in Table. 2, there was an increase in revenue by 18,116 thousand rubles, production costs increased by 5,967 thousand rubles, but its share in revenue decreased by 1.8%. Gross profit increased by 12,149 thousand rubles. Selling expenses increased by 993 thousand rubles, administrative expenses by 4442 thousand rubles. net profit by 4127 thousand rubles. Operating income and non-operating expenses decreased by 857 thousand. rub. and 509 thousand rubles. respectively. Operating expenses and non-operating income increased by 3,163 thousand rubles. and 2228 thousand rubles. respectively.

According to the data presented, it is clear that the structure of profit elements is quite stable. Changes in the structure do not exceed 2%. There is a trend of proportional growth of all indicators.

For commercial enterprises, it is important to determine the cost recovery threshold, after which they will begin to make a profit - the so-called break-even point. This is the amount of revenue at which the company receives neither profit nor loss, i.e. when the difference between income and expenses is zero. In this case, the total sales volume coincides with the sum of the enterprise’s fixed and variable costs and production breaks even:

3 post

K = ________,

C - I lane

Where TO - the quantity of products produced at which break-even production is achieved;

3 post - the amount of fixed costs necessary for production;

C - price per unit of production;

And per - the sum of variable costs required to produce a unit of production.

If it is planned to produce not one, but several types of products, then the total production volume ensuring break-even can be calculated using the formula:

3 post

P = ________________________________________,

(C1 - And lane 1) * K1 + ... + (Cn - And lane.n) * Kn

Where P - volume of production;

3 post - the amount of fixed costs;

Tsn price per unit of each type of product;

And lane 1 - variable costs per unit of production of each type;

Kn - the share of revenue from the sale of each type of product in the total revenue from the sale of all products produced by the enterprise (in unit shares).

After determining the break-even point, planning is based on the effect of operational (financial) leverage, i.e. that margin of financial strength at which an enterprise can afford to reduce its sales volume without becoming unprofitable. The effect of operating leverage is that any change in sales revenue leads to an even stronger change in profit:

Impact Strength Contribution Margin (Marginal Profit)

operating leverage = _____________________________________________

Profit

Marginal profit = sales revenue - variable costs

Profit (financial result) = marginal profit - constant. expenses

The operational analysis of profit as part of marginal income for the enterprise under consideration is presented in table. 2.6.

Table 2.6

Operational analysis of profit as part of marginal income

According to table. 2.6. The company's revenue increased by 4.97%, variable costs decreased by 5.24%, and fixed costs increased by 4.08%. Marginal income in 2005 increased by 27.98%, and profit from sales by 140.87%. The operating leverage decreased by 47.55%, therefore, the effect of economies of scale in production decreased in 2005. The profitability threshold decreased by 14.63%.

Thus, based on the results of the analysis, we can conclude that lowering the profitability threshold makes the operation of the enterprise less risky. Undoubtedly, this is a positive factor, since the enterprise’s resistance to market changes increases and contributes to long-term break-even operation.

It is also advisable to conduct a factor analysis of profit using the following model:

P = (q1 q1 - q1 q0) - (q1s1 - q1s0)+ (q1 q0/q0 q0-1)*(q0 q0-q0s0)+((q1 q0-q1s0) - (q0 q0-q0s0)*q0 q0/q1 q0)

q1t1 - revenue from sales of the reporting period in actual prices

q1ц0 - revenue from sales of the reporting period in basic prices

q1s1 - cost of the reporting period in actual costs

q1s0 - cost of the reporting period in basic costs

q0ц0 - revenue from sales of the base period

q0s0 - cost of the base period

This analysis is presented in table. 2.7. The influence of factors on profit is presented in table. 2.8.

Table 2.7

Factor analysis of profit

Profit from sales is influenced by the following factors: changes in sales revenue, changes in the share of products with a higher level of profitability, changes in the cost of products sold, changes in prices.

Table 2.8

Influence of factors on profit, thousand rubles.

Thus, the company’s profit increased by 12,149 thousand rubles. due to a reduction in sales revenue by 6,060 thousand rubles, an increase in the share of products with a higher level of profitability by 813 thousand rubles, and a reduction in costs by 20,858 thousand rubles. and an increase in selling prices for sold products by 38,255 thousand rubles.

The most significant factor is the increase in cost. It is advisable for an enterprise to pay increased attention to measures to manage production costs.

Enterprise capital management also includes determining the optimal ratio between own and borrowed financial resources.

In order to answer these questions, it is necessary to become familiar with the concept of financial leverage and consider the issue of its functioning.

Financial leverage (“financial leverage”) is a financial mechanism for managing the return on equity capital by optimizing the ratio of equity and borrowed funds used.

The effect of financial leverage is an increase in the profitability of equity capital obtained through the use of a loan, despite the payment of the latter.

The effect of financial leverage arises from the discrepancy between economic profitability and the “price” of borrowed funds. Economic profitability of assets is the ratio of the value of the production effect (i.e., profit before interest on loans and income taxes) to the total value of the total capital of the enterprise (i.e., all assets or liabilities).

In other words, the enterprise must initially develop such economic profitability that there are enough funds at least to pay interest on the loan.

To calculate the effect of financial leverage, you can use the following formula:

EGF = (Rk - Rzk) x ZK / SK,

where Rk is the return on total capital (the ratio of the amount of net profit and the price paid for borrowed funds and the amount of capital);

Rzk - return on borrowed capital (the ratio of the price paid for borrowed funds to the amount of borrowed funds);

ZK - borrowed capital (average value for the period);

SK - equity capital (average value for the period).

Calculations of the indicator for the analyzed enterprise are presented in table. 2.9.

Table 2.9

Calculation of the effect of financial leverage

Thus, a positive EGF value indicates the advisability of raising borrowed funds.

The effect of financial leverage determines the limit of economic feasibility of borrowing funds. Since a positive EGF value indicates the advisability of raising borrowed funds, the analyzed enterprise can attract additional borrowed capital.

A high positive value of the EGF indicator indicates that the company prefers to make do with its own funds, does not make sufficient use of investment opportunities and does not pursue the goal of maximizing profits. In this situation, shareholders, having received modest dividends, may begin to sell shares, reducing the company's market value.

If the profitability of investments in an enterprise is higher than the price of borrowed funds, financing from borrowed sources should be increased, while the rate of profit growth will depend on the rate of change in the capital structure of the enterprise (the ratio of the amounts of borrowed and equity capital). However, an increase in the amount of debt in the structure of liabilities is accompanied by a decrease in the liquidity and solvency of the borrower, an increase in risks, and an increase in the price of loans provided. As a result, the profit from use and the price of borrowed sources are leveled, which leads to a zero value of the effect of financial leverage.

Further growth in the share of borrowed capital greatly increases the risk of bankruptcy of a business entity and should be perceived by management as a signal to repay part of the debt or search for sources of profit growth.

The return on total capital changes depending on the dynamics of the individual components of the above formula. The influence is exerted by the following factors: profit from business operations, the price of attracted resources, the ratio of equity and borrowed capital.

Obviously, with an increase in the share of raised funds in the capital structure and a decrease in financial stability, the rate of profit growth decreases down to a negative value (i.e., to an absolute decrease in profit). Thus, in pursuit of the goal of maximizing profits, an enterprise must increase the share of borrowed capital in sources of financing with a positive EGF value, while simultaneously avoiding financial instability.

The autonomy coefficient is a characteristic of the stability of the financial condition of an enterprise, characterizing the degree of its financial independence. The autonomy ratio is the ratio of own funds to total assets6

Kavt = Sk/Wb

Where Sk is equity capital;

ВБ - balance currency.

In 2004, the value of the indicator was: 13624/77084 = 0.18, and in 2005 - 30081/93149 = 0.32. We can conclude that the enterprise is characterized by high dependence on external sources of financing, since the standard value of the autonomy coefficient is 0.5. However, it should be noted that in 2005 there was a tendency towards improvement of this indicator.

Conclusion

Equity capital characterizes the total value of the enterprise's funds owned by it and used by it to form a certain part of the assets. This part of the asset, formed from the equity capital invested in them, represents the net assets of the enterprise. Equity capital includes sources of financial resources that are different in their economic content, principles of formation and use: authorized capital, additional capital, and reserve capital.

Based on the analysis of our own and attracted sources of financial resources using the example of Vitorg Plus LLC, we can conclude that the share of equity capital in the total sources of financial resources is 18 and 33%, respectively, in 2004 and 2005. respectively at the beginning and end of the analyzed period. The company's own working capital is insufficient to form reserves and costs. Return on equity is at a very high level of 92% in 2004 and 75% in 2005, which is associated with a fairly low value of the authorized capital. The efficiency of using borrowed financial resources in 2005 increased compared to 2004. The structure of borrowed funds is dominated by short-term liabilities: at the beginning of the year they amounted to 80.5%, and at the end of 63.5%.

Return on equity is at a very high level, which is associated with a fairly low value of the authorized capital. At the same time, there is a tendency for profitability to decrease; during the analyzed period, it decreased by 17%. This reduction occurred due to the fact that the growth rate of sources of own funds exceeded the growth rate of net profit. We can say that the efficiency of investing profits in business is reduced.

A positive value of financial leverage indicates the advisability of raising borrowed funds. The profitability of using borrowed funds has increased, showing an increase in the efficiency of external investments.

The autonomy coefficient for the analyzed enterprise is significantly lower than the standard value of 0.5. This fact may limit the enterprise’s ability to attract borrowed funds; therefore, the enterprise should take measures to increase the efficiency of forming the structure of financial resources.

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