References ABSTRACT: This article substantiates the relevance of applying the policy of optimizing the capital structure, examines methodological approaches to developing a regression model for analyzing the optimization of the capital structure of an industrial enterprise, which focuses on a concept that includes the principle of efficient use of equity, its profitability; the principle of efficient use of borrowed capital; the principle of balancing the sources of financing the company.
Introduction The regression model for analyzing the optimization of capital structure is a popular tool in the financial management of industrial enterprise. In this paper, we consider a regression model of analysis of capital structure optimization in an industrial enterprise, built on the basic principles of the concept. Therefore, depending on the priority, relations are established with suppliers, which are most often shareholders and creditors.
The how to really make money without work in the field of capital structure management Higgins, R. The exact value of the capital structure, which is optimal, has not yet been identified, despite the large number of studies in this area. The reason for this is the economic, social, political conditions that operate in different countries.
But much attention should be paid to industry characteristics, the life cycle of the company, the profitability of its activities, as well as macroeconomic cycles. The main attention of these works is focused on the principles of the Concept of optimizing the capital structure, which include the following: 1 the principle of efficient use of equity, which involves both maintaining a high level of return on equity, and the capitalization of net profit in the effective development of an industrial enterprise; 2 the principle of effective use of borrowed capital, expressed in a high level of profitability of borrowed capital; 3 the principle of efficiency and economical use of material and financial resources of the industrial enterprise; 4 the principle of balancing sources of financing activities, which consists in increasing the share of equity and reducing the share of obligations; 5 the principle of increasing the investment attractiveness of the agricultural company by means of launching new investment projects.
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The presented Concept will be implemented through analysis of the optimization of the capital structure of a production the financial independence ratio characterizes enterprise. The efficiency of capital use is characterized by its profitability profitability. During the performance analysis, the dynamics of changes include indicators such as: 1 the profitability ratio of all used capital; 2 return on equity ratio; 3 the coefficient of profitability of borrowed capital.
Materials and methods Consider the indicators used in the regression model of the analysis of capital structure optimization [9; 10; 11; 12]: Stage 1 - assessment of the dynamics and structure of sources of financing the activities of the industrial enterprise includes: analysis of changes in the cost of equity and borrowed capital of the industrial enterprise. Stage 2 - assessment of financial stability: determination of the type of financial stability absolute assessment ; relative assessment determination of financial stability : the ratio of working capital SOS.
This ratio characterizes the possibility of financing current assets with own sources; the reserve ratio of working capital SOS reserves characterizes the value of inventories financed from equity; the financial independence ratio is necessary to determine the level of equity in the total amount of sources of funds; maneuverability coefficient is necessary to assess the ability of businesses to acquire stocks using equity; the financial leverage ratio financing ratio sets the amount of borrowed funds raised per unit of equity; the long-term financial independence ratio shows the ratio of the amount of equity and long-term liabilities to the total amount of liabilities.
Identifies the financial potential of the industrial enterprise; the coefficient of long-term and short-term debt is aimed at determining the amount of attracted long-term liabilities per unit of short-term liabilities.
Stage 3 - assessment of the effectiveness and intensity of capital use.
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Assessment of capital efficiency is presented by the following criteria: profitability ratio of all used capital. The same indicator is called return on assets ROA ; return on equity ratio; profitability ratio of borrowed capital. The assessment of the intensity of capital use took into account the following indicators: the financial independence ratio characterizes capital turnover ratio shows the rate of turnover of all sources of financing the activities of the industrial enterprise ; the duration of one turnover of total capital; capital intensity indicator.
Stage 4 - factor analysis of the profitability of total capital. In the practical construction of a regression model for analysis and optimization of the capital structure of an agricultural company, the available data are indicators used to assess its financial stability, and the normative values of these indicators.
During the construction of the model, a qualitative and quantitative analysis of financing channels was used to calculate the degree of their reliability, which made it possible to analyze the capital structure of the industrial enterprise and determine the degree of availability of borrowed capital and the reliability of its receipt, as well as the efficiency of using its own funds.
According to Russian scientists, O. Gerasimenko, O. Molokova, E.
Gubanova, L. Davydova, S. Ilminskaya, Yu. Kirillov, E. Nazimko et al.
The autonomy coefficient is used to characterize. Ratios of financial stability
To select the optimal capital structure, it is necessary to achieve such a ratio of own and borrowed funds Fountas S. In the study, the optimal capital structure is a strategic parameter, which is a "lean" ratio of equity and borrowed capital, includes a set of tools criteria that are relevant only to specific existing conditions and subject to mandatory adjustment when they change.
Based on this definition, we systematize the main methodological approaches to optimizing the capital structure through its analysis, presented in the study below. Thus, the task of constructing a regression model for analyzing the optimization of the capital structure of the industrial enterprise and the optimization of leverage becomes relevant.
Let the optimization of the capital structure be based on the following steps [19; 20]: 1. Formation of indicators of the capital structure of an industrial manufacturing enterprise by objectives.
Testing of the regression model for analyzing the optimization of capital structure was carried out at specific agricultural production companies. For this, the informational basis of the assessment was made according to the accounting financial statements.
- Questions and answers on the topic Related reference materials Return to analysis technique financial statements Autonomy ratio At financial statement analysis, to determine the level of financial stability in the long term, an autonomy coefficient is used.
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Based on the studies, it was found that the financial independence ratio characterizes normative value of the coefficient of provision with own funds from 0. The results are 0.
In the same way, we note the situation with the coefficient of provision of reserves with our own funds, at a rate of 1. The value of the financial independence coefficient indicates a very low share of equity in the overall structure of financing sources 0.
Negative dynamics is observed according to the results of calculating the maneuverability coefficient from 1. Analyzing the results of calculating the financial leverage ratio, we note that borrowed capital significantly exceeds equity, namely, 43 times higher in19 times higher in and 8 times higher in ,that is, the financial stability of the agricultural production company for the period - increases.
Thus, the industrial manufacturing enterprise needs to continue the course to increase its own capital the financial independence ratio characterizes to the capitalization of net profit based on the results of activities in each reporting period for the future.
Moreover, if in - Results This section shows the financial stability of the industrial manufacturing enterprise, built on the basis of a regression model for analyzing the optimization of capital structures. For this, a scheme of evidence for the practical application of the model was drawn up.
The autonomy coefficient is used to characterize. Ratios of financial stability
Figure 1. Figure 1 The algorithm for applying the regression model for analyzing the optimization of the capital structure of a production industrial enterprise When testing the model, it was recommended that industrial enterprise direct their profits to the development of their activities and increase financial results.
- More found about the coefficient of financial independence Financial independence ratio in terms of stock formation Coefficient of financial independence in terms of formation of reserves Coefficient of financial independence in terms of formation of reserves Coefficient of financial independence in terms of formation of reserves - Impact of IFRS on the results of the analysis of the financial position of PJSC Rostelecom Current liquidity ratio 2.
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This will contribute to the growth of capital and increase its share in the overall structure of sources of financing of industrial manufacturing enterprise. Based on the regression analysis, we forecasted the profitability indicators of the industrial manufacturing enterprise and determined the regression equation by performing the corresponding calculations in the Statistica 6.
Table 1 The Results of the regression analysis of indicators of profitability of production activities Name of indicator The value of representativeness R3 1.