Own capital of the bank and methods of its formation. The influence of debt capital on the financial condition of the enterprise Analysis of debt capital management article in the journal

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

small business

capital Management

lending

Borrowed capital

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

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

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

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

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

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

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

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

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

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

The following set of different capital functions is distinguished:

production resource (production factor).

Object of ownership and disposition.

Part of the financial resources.

Source of income.

An object of temporary preference.

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

The bearer of the liquidity factor.

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

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

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

Figure 1.1 Forms of attracting borrowed funds.

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

Figure 1.2. Types of borrowed funds in cash.

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

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

commercial banks and other institutions that provide loans in cash (mortgage banks, trust companies, etc.);
suppliers and buyers of products (commercial credit of suppliers and advance payments of buyers);
the stock market (issuing bonds and other securities other than stocks) and other sources.

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

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

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

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

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

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

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

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

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

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

Bibliographic reference

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

…………………………………………………………..………..….4
CHAPTER 1. THEORETICAL BASES OF MANAGING THE BORED CAPITAL OF THE ORGANIZATION ……………………………………. ……… ..… 6
1.1. Economic essence and types of capital of the organization …………… .6
1.2. The main sources of debt capital formation, their composition ……………………………………………………………………… .16
1.3. The organization's policy in terms of the formation (attraction) of borrowed capital ………………………………………………………… 21
1.4. The main stages of development and implementation of management policy borrowed capital………………………………………………………..27
CHAPTER 2. METHODOLOGICAL FRAMEWORK FOR MANAGING THE BORED CAPITAL OF THE ORGANIZATION ………………………………………. ……… 33
2.1. Methods and techniques of debt capital management ………….… .33
2.2. Cost of capital, incl. cost of sources of borrowed capital ………………………………………………………………… 37
2.3. Estimation of the cost of sources of short-term financing ... 44
CHAPTER 3. ANALYSIS OF PROBLEMS AND PROSPECTS OF GROWTH OF EFFICIENCY OF MANAGEMENT OF LOAN CAPITAL OF THE ORGANIZATION, ON THE EXAMPLE OF PROTEKS LLC ………………………… .54
3.1. Characteristics, assessment of the property and financial condition of LLC "Protex" according to financial statements ………………… 54
3.2. Features of debt capital management at Proteks LLC ... 67
3.3. Advantages and disadvantages of the existing in Protex LLC system of debt capital management ……………………………… ..72
3.4. Recommendations for improving the policy of debt capital management at Protex LLC ……………………………….… .73
………………………………………………………………….84
LIST OF USED LITERATURE ………………………. …………… .88
APPENDICES ……………………………………………………………… .92

Introduction

The relevance of the research topic is justified by the fact that the management of the enterprise must clearly understand from which sources of resources it will carry out its activities and in which areas of activity it will invest its capital. Currently, the analysis of the formation and use of borrowed capital in organizations is especially relevant, since analytical services organizations develop and apply methods of analysis to determine the financial and economic situation. Analysis of the process of formation and use of borrowed capital reveals to interested users the whole range of advantages and problems that exist in the enterprise. This is justified by the fact that the formation and use of borrowed capital has a significant impact on the efficiency of the organization and is one of the key aspects in the implementation of long-term costly investments. Analysis of the debt capital management system will provide users with up-to-date information on the amount of the organization's debt capital, the optimality of its structure, and the appropriateness of its use. Thus, the relevance of studying the management of the company's borrowed capital is justified by the fact that the data obtained as a result of the analysis will help in making certain management decisions aimed at improving and rationalizing the structure of borrowed capital, minimizing the influence of negative factors, increasing profits, effective and fruitful management of the organization's borrowed capital.
The relevance of the problem posed in the work makes it possible to determine the object, subject, goal and objectives of the study.
purpose of work- research of the efficiency of management of the organization's borrowed capital, on the example of Proteks LLC.
Work tasks:
- consider the theoretical foundations of the organization's debt management;
- study the methodological foundations of the organization's debt capital management;
- to assess the effectiveness of the organization's debt capital management, using the example of Proteks LLC;
- to develop recommendations for improving the policy of debt capital management in the studied organization.
The object of the study is Proteks LLC.
The subject of the research is the efficiency of debt capital management at Proteks LLC.
When working on the problem posed, both general scientific methods of analysis and synthesis, comparisons, and methods of financial analysis were used.
The degree of elaboration of the problem. A lot of scientific works, textbooks, monographs and publications are devoted to the study of the theoretical and methodological foundations of the analysis and management of the company's borrowed capital. In this work, we most actively used the works on the problem posed by: I.V. Afanasyeva, S.L. Zhukovskaya, M.S. Oborin, V.A. Kravtsova, E.R. Mukhina, O.V. Pachkova, A.I. Romashova, R. Yu. Sarychev, V.B. Frolova and others. In general, put in term paper the problem is sufficiently developed in the scientific literature.
Practical significance consists in the conclusions and proposals made based on the results of the assessment of the dynamics, structure and efficiency of debt capital management at Proteks LLC. The developed recommendations are aimed at improving the debt capital management policy in the studied organization.
The work consists of an introduction, 3 chapters (theoretical, methodological and practical), a conclusion, a list of used literature and applications.

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Overall volume: 92

Output data of the collection:

INFLUENCE OF LOAN CAPITAL ON THE FINANCIAL STATE OF THE ENTERPRISE

Olga V. Pachkova

Cand. econom. Sciences, Associate ProfessorFGAOU VPO "Kazan (Volga Region) Federal University", RF, Republic of Tatarstan, Kazan

Gaptelkhakov Marat Rafkatovich

4th year student of Kazan (Volga Region) Federal University, Russian Federation, Republic of Tatarstan, Kazan

INFLUENCE OF BORROWED CAPITAL ON FINANCIAL CONDITION OF THE ENTERPRISE

Olga Pachkova

candidate of Economic Sciences, Associate professor of FSAEI HVE “Kazan Federal University”, Republic of Tatarstan, Kazan

Marat Gaptelhakov

4-year student, FSAEI HVE “Kazan Federal University”, Republic of Tatarstan, Kazan

ANNOTATION

The article deals with the borrowed sources of financing the enterprise. Since in its activity the enterprise is faced with the need to attract additional funds. The types of borrowed capital are considered, the effect of financial leverage is shown in detail, since the effectively attracted borrowed capital must satisfy the conditions for reducing costs and increasing profits from the use of capital.

ABSTRACT

The article deals with borrowed sources of financing. Since the company faces with the need to raise additional funds in its activity. The types of debt capital are considered; the effect of financial leverage is shown in detail, as effectively involved borrowed capital must satisfy the conditions to reduce costs and increase profits from the capital use.

Keywords: borrowed capital; Bank loan; bonded loan; leasing; financial leverage effect.

Keywords: borrowed capital; bank credit; funded loan; leasing; effect of financial leverage.

As the enterprise operates, the need for cash increases, which requires proper financing of capital gains. At the same time, an enterprise with a shortage of its own funds can attract funds from other organizations, which are referred to as borrowed capital. Debt capital refers to funds that are lent to the enterprise by third-party organizations for the implementation of the goals of its activities, as well as for making a profit.

The organization of debt capital has a significant impact on the efficiency of companies and is key if they make long-term and costly investments.

Among the advantages of using borrowed capital are the following: more opportunities for attracting, especially with a high rating of the borrower; increasing the return on equity; the possibility of using tax shields, which reduce the cost of capital, since the interest paid is included in the cost price; accelerated development of the enterprise and others.

In addition, the use of borrowed capital also has disadvantages: raising borrowed funds creates financial risks (interest rate, risk of losing liquidity), the targeted nature of the use of borrowed funds, the complexity of the procedure for attracting borrowed funds.

Debt capital as a long-term source of financing is divided into such sources of financing as bank loans, bonded loans and leasing. In a general sense, a loan is the provision by one party (the lender) of the ownership of the other party (the borrower) of funds or other things.

A bond loan plays an essential role in financing the firm's operations. It is carried out by issuing and selling bonds. The issue of bonds is designed to attract investments from a wide range of individuals, in contrast to a bank loan. With a bank loan, a bank or other credit organization acts as a lender.

According to Art. 665 of the Civil Code of the Russian Federation, leasing is an operation of acquiring property by the lessor (lessor) of the property specified by the lessee (lessee) from the seller specified by the lessee, with the subsequent provision of it for a fee for temporary possession and use for business purposes.

Thus, leasing is a type of entrepreneurial activity that provides for the investment by the lessor of financial resources in the acquisition of property with the subsequent provision of it to the lessee on a lease basis.

The leasing car market is developing rapidly in Russia. This is primarily due to the fact that the cost of expensive property can be completely written off in an extremely short time, while its consumer qualities do not actually change. But by the end of 2014, the market leader in terms of the subject of leasing is railway equipment, which occupies 42.2%. In comparison, leased cars account for 21.7% of the market.

When choosing a method of raising debt capital, an enterprise should pay attention to the following key parameters:

1. the amount of financial resources;

2. the term of their provision;

3. the level of interest payments for the resources provided;

4. type of rate of attraction of resources (floating or fixed);

5. the need for a pledge and its conditions;

6. terms of repayment.

The indicator of financial leverage helps to answer the question of how much borrowed funds are in the ruble of own funds. This is the ratio of debt to equity. The effect of financial leverage reflects the change in the profitability of equity obtained through the use of borrowed funds. It is calculated using formula 1:

The figure below shows the components of the leverage effect (Figure 1).

Figure 1. Effect of financial leverage

The tax coefficient (1-t) shows the extent to which the effect of financial leverage is manifested in connection with different levels of income tax.

One of the factors is the so-called differential of financial leverage (Dif) or the difference between the company's return on assets (economic profitability), calculated by EBIT, and the interest rate on borrowed capital. The differential of financial leverage is the main condition that forms the growth of the return on equity. For this it is necessary that the economic profitability exceeds the interest rate of payments for the use of borrowed sources of financing, that is, the differential of the financial leverage must be positive. If the differential becomes less than zero, then the effect of financial leverage will only act to the detriment of the organization.

The final component is the leverage ratio (or leverage - FLS). This ratio characterizes the strength of the impact of financial leverage and is defined as the ratio of borrowed capital (D) to equity (E).

The differential and the lever arm are closely interconnected. As long as the return on investment in assets exceeds the price of borrowed funds, that is, the differential is positive, the return on equity will grow the faster the higher the ratio of borrowed and own funds. However, as the share of borrowed funds grows, their price rises, profits begin to decline, as a result, the return on assets also falls and, therefore, there is a threat of a negative differential.

According to economists, based on the study of empirical material from successful foreign companies, the optimal effect of financial leverage is in the range of 30-50% of the level of economic return on assets (ROA) with a leverage of 0.67-0.54. In this case, the increase in the return on equity capital is not lower than the increase in the return on investment in assets.

The effect of financial leverage contributes to the formation of a rational structure of sources of funds of the enterprise in order to finance the necessary investments and obtain the desired level of return on equity, at which the financial stability of the enterprise is not disturbed.

For almost any company, borrowed sources of financing mean the possibility of more intensive development, largely due to the formation of an additional amount of assets. However, companies using borrowed capital are more exposed to financial risk and the threat of bankruptcy. Therefore, it is necessary to more carefully approach the issue of choosing sources of debt financing, taking into account all possible risks.

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Keywords

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

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

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

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

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

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

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

MOROZOVA NATALIYA SERGEEVNA Lipetsk branch of FSBEI HPE "Financial University

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

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

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

The study of the structure of capital has always been in the center of attention of economists from different schools and directions of economic studies. The study of enterprise capital as an economic category, starting from the second half of the 19th century. and up to the present day, was carried out by such scientists as: D. Clark, J. Keynes, K. Marx, D. Mil, W. Pareto, W. Petty, D. Ricardo, A. Smith, I. Schumpeter. They made a huge contribution to the development of the topic of capital, and also highlighted the problems that are directly related to the analysis of equity and the effectiveness of the application of data obtained as a result of analytical procedures. So Professor L.T. Gitlyarovskaya notes that capital analysis is a complex and continuous process of collecting, classifying and applying the data obtained.

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

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

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

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

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

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

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

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

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

Based on the foregoing, it can be concluded that competent management of equity capital and the sources of its formation will make it possible to analyze the occurrence, co-

Sources of enterprise capital formation and their characteristics

No. Sources of capital formation Characteristics of attracted capital

Domestic Foreign Long-Term Short-Term Own Borrowed

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

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

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

4. Short-term loans and credits + + +

5. Accounts payable (trade credits) + + +

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

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

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

Members

Internal

Financial managers

Owners

Information on financial results

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

< л Налоговые органы

Suppliers, customers, organizations

Enterprise management Management information Investors Investment feasibility

Data required for audit

Information about tax payments

Information

about solvency

and liquidity

Lenders

Information about the solvent

Rice. 1. Users of information about the property]

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

E. t MERKULOVA, N. 8. MOROZOVA

capital formed in the accounting and analytical system

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

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

and in the contractual agreement, with interest.

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

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

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

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

Reproduction of fixed assets and intangible assets;

Replenishment current assets;

Meeting social needs.

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

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

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

For the further development and functioning of the company's activities, quite often before

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

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

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

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

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

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

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

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

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

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

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

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

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

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

resources, that is, the larger the share of borrowed capital, the greater the degree of risk, and vice versa.

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

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

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

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

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

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