THE COMPOSITION AND CAPITAL STRUCTURE OF AN ORGANIZATION The composition and capital structure of an organization

Published in International Journal of Applied Sciences and Technology Integral · Rubric: ECONOMICS SCIENCE
Received: 06.12.2018 Accepted: 15.12.2018 Published: 25.12.2018 Language of publication: ENG
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.
enterprise capital, capital analysis