THE COMPOSITION AND CAPITAL STRUCTURE OF AN ORGANIZATION
Rubrics: ECONOMICS SCIENCE
Authors:
1.
Federal state budgetary educational institution of higher education «Vyatka state University»
Type:
Article
Pages:
from
to
Status:
Published
Received:
06.12.2018
Accepted:
15.12.2018
Published:
25.12.2018
Language:
English
Keywords:
enterprise capital, capital analysis
Abstract (English):
The capital Structure in modern conditions is an integral factor influencing the financial condition of the organization, as well as its liquidity, solvency, profitability. The structure of the organization’s sources can be assessed by both internal and external users of accounting information. The change in the share of the organization’s own funds in the total amount of sources can be assessed by external users, such as banks, investors, creditors, in terms of financial risk in transactions. The risk of the organization increases when the share of equity decreases, there is an imbalance between the ratio of debt and equity. Internal analysis of the structure and composition of capital is directly related to the assessment of various options for financing activities and optimizing the capital structure of the organization. The main criterion of this analysis is to find a balance between debt and equity, as well as the condition of borrowing, their price, risk and possible directions of use.
The capital Structure in modern conditions is an integral factor influencing the financial condition of the organization, as well as its liquidity, solvency, profitability. The structure of the organization’s sources can be assessed by both internal and external users of accounting information. The change in the share of the organization’s own funds in the total amount of sources can be assessed by external users, such as banks, investors, creditors, in terms of financial risk in transactions. The risk of the organization increases when the share of equity decreases, there is an imbalance between the ratio of debt and equity. Internal analysis of the structure and composition of capital is directly related to the assessment of various options for financing activities and optimizing the capital structure of the organization. The main criterion of this analysis is to find a balance between debt and equity, as well as the condition of borrowing, their price, risk and possible directions of use.
Keywords:
enterprise capital, capital analysis
enterprise capital, capital analysis
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