Types of capital at the enterprise own and borrowed, authorized, circulating, additional

Nesterov A. Equity capital of the enterprise // Encyclopedia of the Nesterovs

Equity capital is formed at the enterprise at the expense of the value of the property invested in the enterprise.

The concept of an enterprise's equity capital and its sources

A company's equity capital is the difference between the value of the company's total assets and its liabilities. It represents the excess of the fair market value of the property over the outstanding debt.

Equity is reflected in the third section of the balance sheet.

Sources of the company's equity capital are investments in authorized capital, revaluation of non-current assets, additional capital, reserve capital and retained earnings.

Benefits of using equity capital

Disadvantages of using equity capital

Ease of attracting and using - decisions to increase equity capital from internal sources are made by the owners and managers of the enterprise without the need for the consent of third parties or external business entities

Limited volume of attraction - significantly lower than the possibility of expanding the economic activity of the enterprise, increasing investment activity. This disadvantage is especially manifested during periods of favorable market conditions.

High ability to generate profit - when using equity capital does not require the payment of interest in all its forms.

High cost of use - using the company's own capital is more expensive than raising borrowed funds.

Maintaining the financial stability and solvency of the enterprise in the long term, thus reducing the likelihood of bankruptcy.

Equity capital of the enterprise

There is a huge number of interpretations of the concept of capital. So, capital is understood as self-increasing value, investments, working capital, etc. Such a broad interpretation is due to the fact that there are many types of capital, and for each of them one or another definition is suitable. Therefore, in this article we will consider what types of capital exist in the enterprise and what are their features.

Share capital

The first step in creating any large enterprise is the formation of the authorized capital, which becomes a kind of "foundation" of the organization. Most often, the presence of a certain amount of authorized capital is a mandatory requirement established by the state when creating some organizational and legal forms of enterprises (for example, a limited liability company), but, according to experts, one should not neglect the creation of such a fund and small enterprises.

It is the presence of the authorized capital that guarantees the financial stability of the company. Its value varies depending on the characteristics of the enterprise and the organizational and legal form. So the authorized capital can be formed at the expense of:

  • contributions of members of the enterprise at the time of its creation;
  • the official value of shares;
  • share contributions;
  • other monetary fund (for example, funds allocated by government agencies).

In this case, the amount of such capital is set at the time of the formation of the enterprise (mainly on the basis of statutory requirements) and cannot change (especially decrease) in the future.

Fixed and working capital

In addition to the authorized capital, to a certain extent, the guarantor of the financial stability of the enterprise is the fixed capital, which includes:

  • buildings and structures;
  • expensive equipment;
  • machinery;
  • construction in progress;
  • long-term investments.

Thus, it can be seen that fixed capital is the least liquid form of capital (that is, exchanging it for money (liquidity) can cause difficulties).

Working capital represents funds intended for the purchase of raw materials, consumables, payment of wages, etc. This capital is consumed during one production cycle, in contrast to the main one, which is “consumed” over several years ...

The working capital can include both funds directly intended for servicing the production cycle (purchase of raw materials, production, sales, etc.), as well as funds invested in:

A business plan is the document from which to start the implementation of your idea. If you do not make a preliminary calculation of expenses and income, do not take into account the demand and the presence of already working competitors, you can waste your budget. In our article you will find a sample business plan with calculations and learn how to prepare it for yourself.

What should be in the business plan

But when the development of a business plan for a small business is needed specifically for investors, guarantors, creditors, then the document must comply with the requirements of the Federal Fund for Small Business Support. You can learn how to draw up a business plan in accordance with these requirements from the recommendations of the Fund, and we will consider a brief structure of the plan here.

Make documents for opening an LLC online for free, in 10 minutes and without errors

The structure of the business plan from the Federal Fund for the Support of Small Business:

If you follow all the recommendations of the Federal Fund for the Support of Small Business, it is quite difficult to draw up your own business plan on your own. But there is another way to calculate the prospects of your project - using the SME Business Navigator.

How to write a business plan yourself

Business Navigator is an information support portal for small and medium-sized businesses. To access all the functionality of the portal, you must be registered as an individual entrepreneur or legal entity.

Using the Business Navigator, you can:

  • Choose a type of business;
  • Develop a business plan;
  • Find out where to get a loan and get a government guarantee to secure it; <
  • Find a business premises;
  • Learn about government support measures;
  • Participate in public procurement.

So far, the list of settlements for which you can calculate your business plan includes 171 cities of the Russian Federation. We will tell you how to work with the Business Navigator using a specific example.

Capital is the foundation of any business. There are many approaches to how its structure should be formed and adjusted. The choice of a particular methodology is determined based on a variety of factors. However, in all cases, the task of managers and business owners is to optimize the capital structure and adapt it to ensure the highest level of business profitability. What methods can be involved in this? How to determine the optimal capital structure of a firm?

The essence of capital structure

What is the capital structure of an enterprise? This term most often refers to the ratio between the sources of funds (this can be both the organization's own capital and borrowed capital) that are involved in business activities. In some cases, short-term loans may be excluded from the capital structure of an enterprise. Thus, it will contain sources that are used for the purpose of long-term financing of business activities. The exception is short-term loans, which are issued on a regular basis. They can also include the capital structure of the enterprise. Own and credit funds, first of all, differ in the level of required profitability.

Sources of capital structure

There are usually 3 main types of sources in the capital structure of an organization - borrowed funds, securities-based assets, and retained earnings.

Regarding the first element, its structure is most often formed by loans and bonds issued by an enterprise. In this case, interest paid on both types of loans, as a rule, is included in the cost of production. Securities can be represented by shares of various types - for example, common and preferred. Retained earnings, through which the formation of the capital structure of an enterprise can also be carried out, presupposes subsequent reinvestment in certain areas of production.

Capital structure factors

Let us now consider the main factors that can influence the formation of the capital structure. Modern researchers distinguish the following list of them:

  • industry specific features of the segment of business activities of the enterprise;
  • characteristics of the organization's life cycle;
  • market conditions;
  • profitability of the business model;
  • tax burden;
  • preferences of managers and owners.

Regarding the first component - the sectoral characteristics of the business segment in which the company operates, it should be noted that the structure of the enterprise's capital in this case may depend on the resource intensity of production, the company's need for frequent borrowing, or vice versa , expressed financial autonomy, characteristics of production operations.

Regarding the life cycle of a company, growing firms are characterized by a more noticeable share of borrowed capital, while in mature organizations, own funds often prevail.

Market conditions are another important factor affecting how an enterprise's capital structure can be structured. If the environment for carrying out business activities is favorable, then firms, as a rule, are more active in turning to borrowed funds, and lenders are more willing to issue them. In turn, with negative market factors, it becomes more difficult to obtain loans. In this case, the company's capital structure will be dominated by its own funds.

The level of business profitability is another important factor. If it is large enough, then lenders will be more loyal to the company, as a result of which the share of borrowed capital may increase. And vice versa - if the profitability of the business is not high, then it will be impractical to take loans, firstly, since the interest on them may be even higher than the profitability, and secondly, the lenders, most likely, will not be sufficient in this case. are willing to build partnerships with the company.

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"Enterprise Capital Management"

Currently, in the conditions of the existence of various forms of ownership in Russia, it is especially important to study the issues of the formation, functioning and reproduction of entrepreneurial capital. 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.

Often, in practice, the capital of an enterprise is considered as something derivative, as an indicator playing a secondary role, while the first place, as a rule, is taken directly by the process of the enterprise itself. In this regard, the role of capital is belittled, although it is capital that is the objective basis for the emergence and further activity of the enterprise. Since income, profit, it is the use of capital that brings, and not the activity of the enterprise as such. All this determines the special importance of the process of competent capital management of an enterprise at various stages of its existence.

The purpose of the course work is to develop a rational structure of the company's monetary budget. To achieve this goal, it is necessary to solve the following tasks:

1. define the concept and essence of the capital structure;

2. study the basic methods of managing the capital of the enterprise;

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