The second group of indicators that we analyze within the framework of this methodology are capital structure indicators (financial stability ratios), which reflect the ratio of equity and borrowed funds in the organization’s sources of financing, i.e. characterize the degree of its financial independence from creditors. To construct a methodology for recognizing the latent stage of the crisis, the following indicators were identified (Table 4.4):

1) Share equity in working capital, or equity ratio(K 9), calculated as the ratio of own funds in circulation to the entire value of current assets. The indicator characterizes the ratio of own and borrowed working capital and determines the degree of provision of the organization's economic activities with its own working capital necessary for its financial stability.

2) Autonomy coefficient(K 10), or financial independence, calculated as the quotient of equity capital divided by the amount of the organization's assets, and determining the share of the organization's assets that are covered by equity capital (provided by its own sources).

The remaining share of assets is covered by borrowed funds. The indicator characterizes the ratio of the organization's own and borrowed capital.

3) Ratio of total liabilities to total assets(K 11) - an indicator reflecting the share of assets that is financed through long-term and short-term loans.

Table 4.3

Solvency indicators

№ p/p	Index	Conditional designation	Index calculation formula	Calculation formula coefficient	Range of values	Number meaning signal
	Index of growth (decrease) in the ratio A 2 /P 2			K 2 = (line 230+line 240)/ line 690 form No. 1
					0.8≤I 1<0,9
					0.7≤I 1<0,8
					0.5≤I 1<0,7
	Index of growth (decrease) in the degree of overall solvency			K 2 = (DO + KO)/ V avg K 2 = (line 690 + p. 590 of form No. 1)/ V av m
					1,1
					1,2
	Index of growth (decrease) of the debt ratio for bank loans and loans			K 3 = (DO + Z)/ V avg K 3 = (line 590 + p. 610 of form No. 1)/ V av m
					1,1
					1,2
	Index of growth (decrease) of debt ratio to other organizations			K 4 = KZ/ V avg K 4 = (line 621+p.622+ +p.623+p.627+ +p.628 form No. 1)/ V av m
					1,1
					1,2
	Index of growth (decrease) of the debt ratio to the fiscal system			K 5 = ZB/ V avg K 5 = (line 625 + p. 626 of form No. 1)/ V av m
					1,1
					1,2
	Index of growth (decrease) of the domestic debt ratio			K 6 = ZV/ V avg m K 6 = (line 624+p.630+ +p.640+p.650+ +p.660 form No. 1)/V avg m
					1,1
					1,2
	Index of growth (decrease) in the degree of solvency for current liabilities			K 7 = KO/ V avg K 7 = page 690 of form No. 1/ V av m
					1,1
					1,2
	Index of growth (decrease) in coverage of current liabilities by current assets			K 8 =OA/KO K 8 = page 290/page 690 form No. 1
					0.8≤I 8<0,9
					0.7≤I 8<0,8
					0.5≤I 8<0,7

Table 4.4

Capital structure indicators

№ p/p	Index	Conditional designation	Calculation formula index	Calculation formula coefficient	Range of values	Number meaning signal
	Index of growth (decrease) in the equity ratio			K 9 = SK-VA/OA K 9 = (p. 490-p. 190)/p. 290 of form No. 1)
					0.8≤I 9<0,9
					0.7≤I 9<0,8
					0.5≤I 9<0,7
	Index of growth (decrease) of the autonomy coefficient			K 10 = SK/ (VA + OA) K 10 = line 490/(line 190+ line 290 of form No. 1)
					0.9≤I 10<1
					0.8≤I 10<0,9
					0.7≤I 10<0,8
					0.5≤I 10<0,7
	Index of growth (decrease) in the ratio of total liabilities to total assets			K 11 = (DO+KO)/ (BA+OA) K 11 = (p.590+p.690)/ (p.190+p.290 of form No. 1)
					1
					1,1
					1,2
					1,5
	Index of growth (decrease) in the ratio of long-term liabilities to assets			K 12 =DO/ (VA+OA) K 12 = p. 590/ (p. 190 + p. 290 of form No. 1)
					1
					1,1
					1,2
					1,5
	Index of growth (decrease) in the ratio of total liabilities to equity capital			K 13 = (DO+KO)/ SK K 13 = (line 590+line 690)/ line 490 form No. 1
					1
					1,1
					1,2
					1,5
	Index of growth (decrease) in the ratio of long-term liabilities to non-current assets			K 14 =DO/VA K 14 = line 590/line 190 of form No. 1
					1
					1,1
					1,2
					1,5

Legend for Table 4.4: SC – capital and reserves of the organization; VA – non-current assets.

4) Long-term liabilities to assets ratio(K 12) shows the share of assets financed by long-term loans.

5) Ratio of total liabilities to equity(K 13) – the ratio of credit and own sources of financing.

6) Ratio of long-term liabilities to non-current assets(K 14) shows what share of fixed assets is financed through long-term loans.

3. Third group - indicators of efficiency in the use of working capital, profitability and financial results, assessing the velocity of circulation of funds invested in current assets. In this methodology, they are supplemented by working capital coefficients in production and in calculations, the values ​​of which characterize the structure of current assets (Table 4.5):

1) Working capital ratio (K 15 ) is calculated by dividing the organization's current assets by average monthly revenue and characterizes the volume of current assets, expressed in the organization's average monthly income, as well as their turnover. This indicator assesses the velocity of circulation of funds invested in current assets.

2) Working capital ratio in production (TO 16 ) is calculated as the ratio of the cost of working capital in production to average monthly revenue. Working capital in production is defined as funds in inventories, including VAT, minus the cost of goods shipped.

The ratio characterizes the turnover of an organization's inventory. Its values ​​are determined by the industry specifics of production and characterize the efficiency of the organization’s production and marketing activities.

3) Working capital ratio in calculations (K 17 ) determines the circulation rate of the organization’s current assets that are not involved in direct production. It characterizes, first of all, the average terms of settlements for shipped but not yet paid products, that is, it determines the average terms for which working capital in settlements are withdrawn from the production process. Also, it can give an idea of ​​how liquid the products produced by the organization are, and how effectively its relationships with consumers are organized, characterizes the likelihood of doubtful and bad receivables and their write-off as a result of non-receipt of payments, that is, the degree of commercial risk.

4) Return on working capital (K 18 ) reflects the efficiency of using working capital. The index determines how much profit accrues per ruble invested in current assets.

5) Return on sales (K 19 ) reflects the ratio of profit from product sales and income received in the reporting period (Table 4.5).

Table 4.5

Indicators of efficiency in the use of working capital, profitability and financial results

№ p/p	Index	Conditional designation	Calculation formula index	Formula calculation coefficient	Range of values	Number signal value
	Index of growth (decrease) in the working capital ratio			K 15 = OA/V avg m K 15 = page 290 of form No. 1/ V avg m
					0.9≤I 15<1
					0.8≤I 15<0,9
					0.7≤I 15<0,8
					0.5≤I 15<0,7
	Index of growth (decrease) in the working capital ratio in production			K 16 = OSB/V avg K 16 = (p. 210+ p. 220-p. 215 of form No. 1)/ V av m
					0.9≤I 16<1
					0.8≤I 16<0,9
					0.7≤I 16<0,8
					0.5≤I 16<0,7
	Index of growth (decrease) of the working capital ratio in calculations			K 17 = OSR/ V avg K 17 = (p. 290-p. 210 + p. 215 of form No. 1)/ V av m
					0.9≤I 17<1
					0.8≤I 17<0,9
					0.7≤I 17<0,8
					0.5≤I 17<0,7
	Index of growth (decrease) in working capital profitability			K 18 = P / OA K 18 = page 160 of form No. 2 / page 290 of form No. 1
					0.9≤I 18<1
					0.8≤I 18<0,9
					0.7≤I 18<0,8
					0.5≤I 18<0,7
	Index of growth (decrease) in profitability of sales			K 19 = P pr / V K 19 = line 050 / line 010 of form No. 2
					0.9≤I 19<1
					0.8≤I 19<0,9
					0.7≤I 19<0,8
					0.5≤I 19<0,7
	Index of growth (decrease) in average monthly output per employee			K 20 = V av m / SCR K 20 = In average m / line 760 of form No. 5
					0.9≤I 20<1
					0.8≤I 20<0,9
					0.7≤I 20<0,8
					0.5≤I 20<0,7

Average monthly output per employee ( K 20 ) determines the efficiency of using the organization’s labor resources and the level of labor productivity, and also characterizes the financial resources for conducting business activities and fulfilling obligations, reduced to one employee of the analyzed organization (Table 4.5).

Designations for table 4.5:

OSB – working capital in production;

OSR – working capital in settlements;

P – profit after paying all taxes and deductions;

P pr – profit from sales; B – the organization’s revenue;

SHR – the average number of employees of the organization.

4. The last group of indicators included in the methodology is indicators of efficiency of use of non-working capital and investment activity, characterizing the efficiency of use of the organization's fixed assets and determining how much the total volume of available fixed assets (machinery, equipment, buildings, structures, vehicles) corresponds to the scale of the organization's business.

We used the following indicators (Table 4.6):

1) Efficiency of non-working capital, or return on assets (TO 21 ), which is determined by the ratio of average monthly revenue to the cost of non-current capital and characterizes the efficiency of using the organization's fixed assets.

A value of this indicator that is lower than the industry average indicates insufficient utilization of equipment if the organization did not acquire new expensive fixed assets during the period under review.

While a very high value of this indicator may indicate both the full load of equipment and the lack of reserves, and a significant degree of physical and moral wear and tear of outdated production equipment.

2) Investment activity coefficient (K 22 ), characterizing investment activity and determining the amount of funds allocated by the organization for modification and improvement of property, as well as for financial investments in other organizations.

Strong deviations of this indicator in any direction may indicate an incorrect development strategy of the organization or insufficient management control over the activities of management.

3) Profitability ratio of non-current assets (K 23 ), demonstrating the organization’s ability to provide a sufficient amount of profit in relation to fixed assets.

4) Return on Investment Ratio (K 24 ), showing how many monetary units the organization needed to obtain one monetary unit of profit. This indicator is one of the most important indicators of competitiveness.

Designations for table 4.6:

NA – intangible assets;

OS – fixed assets.

Table 4.6

Indicators of efficiency of use of non-working capital and investment activity

№ p/p	Index	Conditional designation	Index calculation formula	Formula for calculating the coefficient	Range of values	Number meaning signal
	Index of growth (decrease) in capital productivity			K 21 = V av m /VA K 21 = In average / page 190 of form No. 1
					0.9≤I 21<1
					0.8≤I 21<0,9
					0.7≤I 21<0,8
					0.5≤I 21<0,7
	Index of growth (decrease) of the investment activity coefficient			K 22 =(VA-NA-OS)/ VA K 2 =(p.130+p.135+ Page 140)/ page 190 of form No. 1
					0.9≤I 22<1
					0.8≤I 22<0,9
					0.7≤I 22<0,8
					0.5≤I 22<0,7
	Index of growth (decrease) in the profitability ratio of non-current assets			K 23 = P /VA K 23 = page 160 of form No. 2 / page 190 of form No. 1
					0.9≤I 23<1
					0.8≤I 23<0,9
					0.7≤I 23<0,8
					0.5≤I 23<0,7
	Index of growth (decrease) of return on investment ratio			K 24 = P /(SK+DO) K 24 = line 160 of form No. 2 / (line 490+line 590 of form No. 1)
					0.9≤I 24<1
					0.8≤I 24<0,9
					0.7≤I 24<0,8
					0.5≤I 24<0,7

After assigning a numerical value to each signal about the threat of a hidden crisis (s i, i=1..n, where n is the number of indicators selected for analysis), it is proposed to aggregate the received data into a table of the following form:

Table 4.7

Numerical values ​​of signals about the threat of crisis

№ p/p	Signal of a crisis	Numerical value of the signal

Such tables must be constructed for each group of indicators.

Next, it is proposed to introduce two intermediate indicators (S – counter of true conditions, and F – counter of the total strength of signals about the threat of a hidden crisis), which are calculated using the following algorithm:

To calculate the scale of the threat of a hidden crisis for each group of indicators or for the organization as a whole, it is proposed to use the following formula:

where M is the scale of signals about the threat of a hidden crisis;

n – the number of analyzed indicators for the group or the organization as a whole.

The scale of signals about the threat of a crisis characterizes the crisis in terms of its breadth of coverage and gives an idea of ​​the number of areas covered by a hidden crisis, or in which the development of a crisis is possible in the near future.

It is proposed to calculate the intensity of the crisis threat using the formula:

(4.39)

where I′ is the intensity of signals about the threat of a hidden crisis;

r – dimension of the scale of numerical values ​​of signals (here r=5).

The intensity of signals about the threat of a crisis characterizes the crisis in terms of the depth of its coverage and gives an idea of ​​the level of threat of the development of a hidden crisis.

The scale and intensity of signals about the threat of a crisis are proposed to be assessed on the following scale (Table 4.8):

Table 4.8

Linguistic assessment of the scale and intensity of signals about the threat of a crisis

№ p/p	Numerical value of the indicator	Linguistic assessment of the indicator	Forecast
		extremely low	Potential
			Hidden crisis	Nascent
				Developing
		extremely high		Progressive

Indicator values ​​above 40% allow us to conclude that there is a hidden crisis in the organization.

With indicator values ​​less than 40%, the likelihood of a latent crisis is low; the condition is characterized as a potential crisis with the subsequent possible development of a latent crisis.

1) The methodology developed and presented by us allows us to recognize the earliest stages of a crisis, including the stage of a latent crisis, which are characterized by the absence of visible symptoms of the development of crisis phenomena and cannot be diagnosed by standard methods;

2) When constructing the methodology, a system of indices was used that allows one to evaluate the performance indicators of an organization over time, which gives a more objective assessment of the development of crisis phenomena in the organization and makes it possible to take into account even minimal deviations in its work;

3) The linguistic scale for assessing signals about the threat of a crisis allows us to draw not just a conclusion about the presence or absence of a hidden crisis, but also to calculate the scale and intensity of the development of the crisis;

4) The developed methodology allows us to assess the crisis both in terms of breadth and depth of coverage, which allows us to further develop a set of appropriate measures to localize and overcome the hidden crisis in the organization.

Analysis of capital structure and long-term solvency

Internal analysis of the capital structure is associated with the assessment of alternative options for financing the activities of the enterprise. Funds supporting the activities of an enterprise are usually divided into own and borrowed funds.

An enterprise's equity represents the value (monetary value) of the enterprise's property, which is entirely owned by it.

Borrowed capital is capital that is attracted by an enterprise from outside in the form of loans, financial assistance, amounts received as collateral, and other external sources for a specific period, under certain conditions, under any guarantees.

The capital structure used by the enterprise determines many aspects of not only financial, but also operating and investment activities, and has an active impact on the final result of these activities. It affects the indicators of return on assets and equity capital, financial stability and liquidity ratios, and forms the ratio of profitability and risk in the process of enterprise development.

The solvency of an enterprise is one of the most important indicators that helps characterize the financial condition of an enterprise in a modern economy; if an enterprise is insolvent, then no one will want to deal with it. The solvency of an enterprise means its ability to repay its debt obligations on time and in full. Depending on what obligations of the enterprise are taken into account, short-term and long-term solvency are distinguished. The long-term solvency ratio (K) characterizes the financial condition of an enterprise for a long period and is necessary for early detection of signs of bankruptcy. It is calculated as the ratio of debt capital (DZ) to equity capital (EK)

Capital structure analysis as a basis for assessing long-term financial stability and solvency

The analysis of long-term financial stability is based on an assessment of the efficiency of the capital structure. Capital structure refers to the ratio of own and borrowed sources of capital. Here, special attention should be paid not to the entire mass of liabilities, but to the ratio of long-term borrowed funds to equity capital, since short-term liabilities are intended primarily to finance current activities.

Assessing long-term financial stability is most important from the point of view of business development prospects. At the same time, modern economic realities do not allow Russian organizations to actively attract various long-term financial instruments for business financing, such as mortgages, leasing, long-term bonds, pension obligations, etc. due to the lack of appropriate legislation on these issues. Evidence of this situation is the state of the “Long-term liabilities” section of the balance sheet of most Russian organizations and the list of articles in this section. Long-term liabilities in the balance sheet are represented only by loans and borrowings and, therefore, we can conclude that in this regard, this line of analysis cannot be fully implemented, and, therefore, the possibility of assessing the business prospects of such organizations in the long term is underestimated.

Almost no organization can make do with its own sources. There are a large number of reasons for this and, first of all, it is obvious that borrowed sources are used to physically increase capital in order to increase income and profits.

It is necessary to compare the advantages and disadvantages of using own and borrowed sources of financing in order to better understand their nature and the characteristics of their impact on the structure and cost of capital. In fact, all sources used in business are attracted. Investor resources are attracted as equity capital. Own capital varies depending on the organizational and legal form of its involvement in business - sole, partnership (share) and joint stock. Credits and borrowings, as well as many financial instruments, are used as borrowed capital.

Organizations incur expenses for servicing their own and borrowed capital. Expenses for servicing equity capital are dividends paid to shareholders and participants. The cost of servicing borrowed capital is interest.

The positive aspects of using equity capital include:

Stability - equity capital (Ksob) is characterized by stability, taking into account the principle of a functioning organization;

Non-obligatory payment of dividends. The requirement to pay dividends is not always mandatory compared to the requirement to repay loans and interest on them.

The negative aspects of using equity capital are:

Uncertainty in the payment of dividends - the uncertainty factor manifests itself in the process of operational financial planning, since before determining the amount of net profit it is difficult to predict the amount of dividends to be distributed;

Paying dividends from net profit means, firstly, double taxation and, secondly, disadvantage compared to the system of paying interest on loans.

The positive aspects of borrowed capital include:

A method of relative insurance against inflation. Modern society lives in conditions of constant inflation. In these conditions, from an economic point of view, it is profitable to use borrowed sources of financing, because, even when insuring against inflation, the debtor always gives back cheaper money than he takes. This property of inflation is one of the key problems in managing receivables and payables;

Stability of payments - stability of interest payments is convenient from the position of operational financial planning, since it minimizes the factor of uncertainty and risk in cash flow planning;

Including interest expense as an expense that reduces pre-tax earnings allows you to increase your tax expense and reduce your income tax.

The negative aspects of using borrowed capital include a general increase in financial, credit and business risk in general, since there is always a threat of inability to pay interest on time or repay the debt amount, which can lead to partial or complete loss of business.

When analyzing the use of borrowed sources of financing, it is always necessary to consider various aspects of the effectiveness of their use:

It is more profitable to use loans with longer terms - this allows you to save overall on loan servicing costs, as well as on tax payments, in each payment period;

If the cost of paying interest on loans is lower than the profit received from investing borrowed funds, it is more profitable to use borrowed sources;

- if the cost of paying interest on loans is higher than the profit received from investing borrowed funds, it is more profitable for the organization to lend its funds itself and thus increase the organization’s income.

Financial stability is expressed by a whole system of analytical coefficients that allow a comprehensive assessment of the capital structure based on balance sheet data. These ratios reflect different aspects of financial stability, and only their combined assessment allows us to draw general conclusions. Organizations, taking into account the specifics of their activities, establish standard values ​​of financial stability coefficients and, during the analysis, compare standard values ​​with actual ones. This allows you to build a system relative to objective evaluation criteria. In this case, normative values ​​can be both external and internal.

Solvency ratios (capital structures)

The solvency of an enterprise refers to its ability to pay long-term obligations. This definition is confirmed by the composition of solvency ratios, the construction of which is based on the ratio of items of long-term assets to each other and to the total liabilities. Since long-term liability items represent equity and borrowed capital, the ratios of this group may also be called “capital structure ratios.” Unfortunately, in Russian practice, the concept of enterprise solvency is mistakenly identified with the concept of their liquidity. Solvency indicators characterize the degree of protection of creditors and investors with long-term investments in enterprises from the risk of non-repayment of invested funds.

The group of solvency ratios (or capital structure) includes the following ratios:

1) ownership coefficient;

2) leverage ratio;

3) dependence coefficient;

4) interest coverage ratio.

1. Equity ratio:

K = Equity / Balance Sheet x 100%

The equity ratio characterizes the share of equity in the sources of financing the enterprise's activities. It also reflects the balance of interests between investors and creditors. A high share of equity in the structure of long-term liabilities, other things being equal, ensures a stable financial position of the enterprise. Acceptable values: in Western financial management it is believed that the value of this ratio must be maintained at a level exceeding 50%.

2. Gearing ratio:

K = Borrowed capital / Balance sheet totals x 100%

The debt capital ratio reflects the share of borrowed capital in the sources of financing the enterprise's activities. This coefficient is the inverse of the property coefficient. Acceptable values: in Western financial management it is believed that the value of this ratio must be maintained at a level below 50%.

3. Dependency coefficient:

K = Borrowed capital / Equity capital x 100%

Acceptable values: in Western financial management it is considered that a high ratio is undesirable. This coefficient characterizes the firm's dependence on external loans. The higher the value of the indicator, the more long-term liabilities a given enterprise has, the more risky its position is. Large external debt, including interest payments, means the potential danger of a cash shortage, which, in turn, can lead to bankruptcy of the enterprise.

4. Interest coverage ratio:

K = Earnings before interest and taxes / Interest expenses (times)

The interest coverage ratio characterizes the degree of protection of creditors from the risk of non-payment of interest on issued loans. The ratio shows how many times during the reporting period the company earned funds to pay interest on loans. This indicator also reflects the acceptable level of reduction in the share of profits allocated to interest payments. Acceptable values: the higher the coefficient value, the better.

Capital structure indicators (or solvency ratios)

Capital structure indicators characterize the degree of protection of the interests of creditors and investors with long-term investments in the company. They reflect the company's ability to repay long-term debt. This group includes:

Ownership ratio;

Financial dependency ratio;

Creditor protection ratio.

Ownership ratio characterizes the share of equity capital in the company's capital structure and the relationship between the interests of the owners of the enterprise and creditors. In Western practice, it is believed that it is desirable to maintain this ratio at a fairly high level, since in this case it indicates a stable financial structure of funds, which is preferred by creditors.

The ownership ratio, which characterizes a fairly stable financial position, all other things being equal, is the ratio of equity capital to total funds at the level of 60%.

Can also be calculated gearing ratio, which reflects the share of borrowed capital in sources of financing. This ratio is the inverse of the ownership ratio.

Financial dependency ratio characterizes the firm's dependence on external loans. The higher it is, the more loans the company has, and the riskier the situation, which can lead the company to bankruptcy. A high level of the ratio also reflects the potential danger of a cash shortage for the enterprise.

The interpretation of this indicator depends on many factors, in particular, such as: the average level of this coefficient in other industries; the company's access to additional debt sources of financing; stability of the company's economic activities.

It is believed that the coefficient of financial dependence in a market economy should not exceed one. High dependence on external loans can significantly worsen the position of the enterprise in the event of a slowdown in the pace of sales, since the costs of paying interest on borrowed capital are classified as semi-fixed, i.e. those that the company cannot reduce in proportion to the decrease in sales volume.

In addition, a high financial dependence ratio may lead to difficulties in obtaining new loans at the average market rate. This coefficient plays a vital role when an enterprise decides on the choice of sources of financing. It is calculated as the ratio of debt to equity capital.

Creditor protection ratio (or interest coverage) characterizes the degree of protection of creditors from non-payment of interest on the loan provided. This indicator is used to judge how many times during the reporting period the company earned funds to pay interest on loans. This indicator also reflects the acceptable level of reduction in profits used to pay interest. It is found by dividing the sum of net profit, interest expenses and income taxes by interest expenses.

The capital structure ratio is a complex concept that involves assessing the shares of debt and equity financing in the capital structure of a business entity. To do this, it seems necessary to determine the indicators of autonomy, dependence, concentration of borrowed capital, interest coverage, and in some cases, the share of total assets covered by own funds. The basis for the calculation is the data from the company’s financial statements – Forms No. 1 and No. 2.

Before sending funds to a company, any investor or creditor is interested in the degree of its solvency and, in particular, its ability to repay long-term debt. Capital structure indicators can become a source of such information for them.

Capital structure ratios (Capital Structure Indicator - CSI, KSK)- this is a group of financial indicators that make it possible to identify how close the ratio of debt capital (LC) to equity capital (SC) in a company is to the standard value, as well as to determine the financial condition and solvency of a business entity.

Reference! The capital structure ratio allows you to assess the quality of the combination of debt and equity capital, for which several indicators are used:

• Coefficient of autonomy or concentration of equity capital (Kavt).
• Debt capital concentration ratio (Ккзк).
• Financial dependency ratio (FDC).
• Interest coverage ratio (ICR).

KSK allows you to determine the degree of financial autonomy of an enterprise and its dependence on borrowed sources of financing, and also clearly demonstrates the level of risk of bankruptcy due to excessive use of loans.

Reference! If a company uses only borrowed funds, then the risk of bankruptcy is zero. However, this state of affairs cannot be considered an optimal state: if debt financing is not used to expand and improve production activities, then it is considered that management is deliberately limiting business activities and receiving less revenue and profit.

In order to establish efficient production, but at the same time protect the enterprise from bankruptcy, it is important to achieve an optimal ratio between borrowed and equity funds. Capital structure indicators are used for this purpose.

Who cares about calculating KSK?

Since indicators of a company’s financing structure are capable of demonstrating the financial condition of a business, its solvency, the efficiency of using all channels, the risk of bankruptcy, and the ability to cover obligations in the long term, a wide range of people are interested in their calculations:

• Investors are assured of the company's development prospects and its stable financial position.
• Lenders clarify the level of bankruptcy risk, which acts as a stop factor when determining the possibility of providing loans.
• Management is evaluating opportunities to raise additional borrowings without compromising its financial stability.

Note! In some cases, the CSC is calculated by state regulatory authorities when it comes to enterprises in strategic industries or business entities, the deterioration of the financial situation of which may entail irreversible consequences for the entire national economy as a whole.

Formula for calculating the capital structure ratio

Indicators from the Capital Structure Indicator group include several separate indicators for assessing the ratio of LC and IC:

1. Autonomy coefficient is a financial indicator that is calculated as the ratio of the total value of equity and reserve capital to the company’s assets. It shows what share of its assets the company covers with its own funds.

   Kavt = SK + Reserves / Total Assets

2. Debt capital concentration ratio is a financial indicator that acts as the ratio of borrowed capital to the balance sheet currency (the total value of assets or liabilities). It shows what share of the financial resources of the enterprise is borrowed capital.

   Kkzk = Short-term liabilities + Long-term liabilities / Balance sheet currency

3. Financial dependency ratio demonstrates how dependent the company is on external sources of financing, in particular, how much borrowing it has raised per 1 ruble. debt financing.

   Kfz = Total liabilities / Own funds + Reserves

4. Interest coverage ratio is often called a creditor protection indicator because it shows how many times during the year a company has earned funds to repay its loan obligations.

   KPP = Earnings before interest and taxes / Interest payable

After calculating the four indicators above, we can formulate a final conclusion regarding how optimal the ratio of borrowed and equity funds within the object of study is.

Note! Often, along with the above indicators, the coverage ratio of total assets (Total Equity Assets) with own funds is calculated. However, it varies depending on the industry and is therefore used optionally.

What is the optimal value of the indicators?

Regardless of the scale of activity and industry, companies must strive for a general regulatory ratio of debt and equity financing.

If any of the capital structure ratios exceeds the normative value, this indicates the development of factors contributing to a decrease in the financial stability of the business.

Important point! An enterprise in any industry is obliged to use not only its own funds, but also borrowed funds in its activities. The optimal ratio of debt and equity financing is 60%/40%, respectively. If it shifts in favor of equity, then the firm is considered to be using debt financing ineffectively. If the ZK turns out to be more than 60%, then the financial position of the enterprise is destabilized. With a ratio of 80%/20%, the company is considered bankrupt.

Examples of indicator calculations

A more detailed procedure for assessing the financial condition of a company based on the system of capital structure coefficients is presented in examples of their calculation for Russian companies: Vnesheconombank State Corporation and Surgutneftegaz PJSC.

All information for determining the company's financing structure is given in the corporation's financial statements - Form No. 1 (balance sheet) and Form No. 2 (profit and loss statement).

Conclusion! Based on the results of calculating the capital structure coefficients for the State Corporation Vnesheconombank, a significant dependence of borrowed sources of financing was revealed. In particular, the autonomy indicator indicates an insufficiency of own funds, and the indicator of dependence on loans showed an excessively high value. What keeps it from bankruptcy is the normal value of the debt capital concentration ratio, as well as the availability of its own funds to ensure interest payments. The dynamics show a slow increase in equity and a decrease in borrowed funds.

For Vnesheconombank, an excessive amount of borrowed financing does not threaten bankruptcy proceedings, since the funds are raised with government support - at a low interest rate.

The information presented is taken from the corporation's consolidated financial statements, which are publicly available.

Conclusion! Based on the results of calculating the capital structure coefficients for Surgutneftegas PJSC, it was established that all indicators are within acceptable values: the company has solid equity capital (Kavt) and optimally uses debt financing (Kfz and Kkzk). As for the checkpoint, during 2014-2015. the company received low profits due to the decline in oil prices, which did not allow it to pay off interest on obligations using its own capital, but in 2016 the situation changed.

It is most convenient to calculate capital structure ratios in the Excel spreadsheet editor. All the above examples are presented in

Bulletin of Chelyabinsk State University. 2009. No. 2 (140). Economy. Vol. 18. pp. 144-149.

S. N. Ushaeva

indicators of the efficiency of the company's capital structure

A range of issues related to optimizing the capital structure of a company, which should ensure its minimum price, optimal level of financial leverage and maximizing the value of the company, is covered. The coefficients for assessing profitability and financial stability are considered as indicators of the effectiveness of the capital structure. The mechanism of influence of financial leverage on the level of profitability of equity capital and the level of financial risk is described.

Key words: capital, capital structure, capital structure efficiency indicators, financial leverage, firm value, equity and debt capital, profitability, financial stability.

At the present stage of development of the economic system, economic entities are faced with a number of tasks that require optimal solutions. One of these tasks remains the determination of an effective capital structure that meets the requirements of both the economic situation as a whole (the dynamism and uncertainty of external influences due to the influence of globalization and the expansion of the range of possible options for applying available resources, associated with an increase in risk), and the management of the company at a certain stage of its development (a competitive environment presupposes the effective functioning of only economic entities that are capable of not only attracting resources, but also determining their ratio, which would be optimal in the given conditions). So optimal

capital structure implies ensuring the financial stability of the company, its current liquidity and solvency, as well as the required return on invested capital.

Ensuring current liquidity and solvency is associated with the optimization of working capital, which guarantees the continuity of the processes of production and circulation of goods (liquidity). The lower the net working capital, the higher the efficiency (profitability, turnover), but the higher the risk of insolvency.

Ensuring an effective capital structure depends on the ratio of equity and borrowed funds, which develops when choosing sources of financing (see figure). Managers' decisions to use loans are associated with the effect of financial leverage

Sources of financing for the company’s activities and directions for their use

(financial leverage); By increasing the share of borrowed funds, you can increase the return on equity, but at the same time the financial risk will increase, i.e. the threat of becoming dependent on creditors in the event of insufficient money to pay off loans. This is the risk of losing financial stability. The condition under which it is advisable to attract borrowed funds is when the current profitability of the company’s assets exceeds the interest rate for the loan.

In this case, the risk is justified by the increase in return on invested equity capital. In this regard, the management task is to optimize the capital structure by assessing and comparing the cost of various sources of financing, taking into account profitability.

The ability of an enterprise to generate the necessary profit in the course of its business activities determines the overall efficiency of using assets and invested capital and characterizes the coefficients for assessing profitability (profitability). To carry out such an assessment, the following main indicators are used.

1. The profitability ratio of all assets used, or the economic profitability ratio (P). It characterizes the level of net profit generated by all assets of the enterprise that are in use on its balance sheet. This indicator is calculated using the formula

where NPO is the total amount of net profit of the enterprise received from all types of economic activities during the period under review; Ap - the average value of all used assets of the enterprise during the period under review (calculated as the chronological average).

2. The return on equity ratio, or financial profitability ratio (Rsk), characterizes the level of profitability of equity capital invested in the enterprise. To calculate this indicator, the following formula is used:

RSK SKsr" 1)

where NPO is the total amount of net profit of the enterprise received from all types of economic

activities during the period under review; SKr is the average amount of the enterprise’s equity capital during the period under review (calculated as the chronological average) [Ibid].

3. The profitability ratio of product sales, or the commercial profitability ratio (PP), characterizes the profitability of the operating (production and commercial) activities of the enterprise. This indicator is calculated using the following formula:

where NPRp is the amount of net profit received from the operating activities of the enterprise during the period under review; OR - the total volume of product sales during the period under review [Ibid. P. 59].

4. The profitability ratio of current costs (Рт) characterizes the level of profit received per unit of costs for carrying out the operating (production and commercial) activities of the enterprise. To calculate this indicator, the formula is used

where NPRp is the amount of net profit received from the operating (production and commercial) activities of the enterprise during the period under review; I is the sum of production (circulation) costs of the enterprise in the period under review [Ibid].

5. The return on investment ratio (Pi) characterizes the profitability of an enterprise’s investment activities. This indicator is calculated using the following formula:

where NPI is the amount of net profit received from the investment activities of the enterprise during the period under review; IR is the sum of an enterprise’s investment resources invested in objects of real and financial investment [Ibid].

Managing current liquidity/payment capacity generally involves making decisions about the liquidity of the firm's assets and the priority of debt payments; separate these concepts

can be done as follows: current liquidity characterizes the potential ability to pay off its short-term obligations, solvency - the ability to actually realize this potential. A sign of solvency, as is known, is the presence of money in the company’s current account and the absence of overdue accounts payable, and liquidity is assessed by comparing the positions of current assets and current liabilities.

In the financial equilibrium diagram, current liquidity lies on the opposite side of the scale to profitability - this illustrates the inevitability of the choice between profitability and risk. The smaller the share of liquid assets in the total amount of working capital, the greater the profit, but the higher the risk. Achieving high profitability by directing resources to any one, most profitable, area of ​​activity can lead to a loss of liquidity, namely, to the interruption of the production and circulation of goods at other stages and the lengthening of the financial cycle. At the same time, excessive tying up of financial resources (for example, in inventories) also lengthens the financial cycle and means a relative outflow of funds from more profitable current activities. It is clear that “thrifty”, careful management is inferior in terms of profitability to management in those companies where managers flexibly and flexibly coordinate the financial cycle and put the “time is money” principle at the forefront.

Structural liquidity and financial stability serve as a fundamental pillar of management. In a broad sense, financial stability is the company’s ability to maintain a target structure of funding sources. The company's owners (shareholders, investors, shareholders, etc.) prefer a reasonable increase in the share of borrowed funds. Lenders give preference to companies with a high share of equity capital and greater financial independence. Managers are called upon to find a reasonable balance between the interests of owners and creditors, observing the established rules of financing, and the tool for such management decisions is the analysis of the balance sheet structure.

As is known, in the liabilities of the analytical balance sheet the following positions are distinguished: equity capital,

borrowed capital - long-term and short-term. The requirement for the vertical capital structure (a condition of financial stability) is that own sources of financing exceed borrowed ones: SC > ZK.

Structural liquidity also depends on investment decisions within asset management: according to the hedged approach to financing, each category of assets must be matched with liabilities of one type or another. For example, in the process of forming property, one should remember the so-called “golden rule” of financing, which describes the requirement for the horizontal structure of the balance sheet: the amount of equity capital must cover the cost of non-current assets: SC > VNA. In addition to direct comparison of balance sheet positions, analytical coefficients are used to analyze compliance with financing rules. These include: autonomy ratio, financing ratio, debt ratio, long-term financial independence ratio, equity capital agility ratio.

The coefficients for assessing the financial stability of the enterprise allow us to identify the level of financial risk associated with the structure of the sources of capital formation of the enterprise, and, accordingly, the degree of its financial stability in the process of upcoming development.

1. The autonomy coefficient (AC) shows to what extent the volume of assets used by the enterprise is formed from its own capital and how independent it is from external sources of financing. This indicator is calculated using the following formulas:

where SK is the amount of the enterprise’s equity capital as of a certain date; NA - the value of the enterprise's net assets as of a certain date; K - the total amount of capital of the enterprise as of a certain date; A is the total value of all assets of the enterprise as of a certain date.

2. Financing ratio (FR), which characterizes the volume of borrowed funds per unit of equity capital, i.e., the degree of dependence of the enterprise on external sources of financing.

where ZS is the amount of borrowed capital raised (average or as of a specific date); SK is the amount of equity capital of the enterprise (average or as of a certain date) [Ibid].

3. Debt ratio (CR). It shows the share of borrowed capital in the total amount used. The calculation is carried out using the following formula:

where ZK is the amount of borrowed capital attracted by the enterprise (average or as of a specific date); K - the total amount of capital of the enterprise (average or as of a specific date) [Ibid. P. 53].

4. Long-term financial independence coefficient (LFC). It shows to what extent the total volume of assets used is formed from the enterprise’s own and long-term borrowed capital, i.e., it characterizes the degree of its independence from short-term borrowed sources of financing. This indicator is calculated using the formula

where SK is the amount of equity capital of the enterprise (average or as of a specific date); ZK - the amount of borrowed capital raised by the enterprise on a long-term basis (for a period of more than one year); A is the total value of all assets of the enterprise (average or as of a specific date) [Ibid].

5. The coefficient of maneuverability of equity capital (KMsk) shows what is the share of equity capital invested in current assets in the total amount of equity capital (i.e., what part of equity capital is in its highly turnover and highly liquid form). This indicator is calculated using the following formula:

where SOA is the amount of own current assets (or own working capital); SK is the total amount of the enterprise's own capital [Ibid].

These ratios are interrelated: for example, if the coverage ratio of non-current assets with equity capital is greater than one, then the company has no problems with liquidity and financial stability - short-term debt is less than current assets, and the current liquidity ratio is greater than one.

Not only the current financial condition, but also the investment attractiveness of the company and its development prospects depend on financial balance. An optimal capital structure ensures financial stability, maximizes the level of financial profitability, minimizes the level of financial risks, as well as its cost. Disruption of financial balance causes financial difficulties and can lead to insolvency and bankruptcy. To monitor financial balance, managers must regularly analyze reporting data using the proposed indicators, which helps answer the questions: what is the current state and whether there are certain “distortions” caused by certain incorrect or risky decisions, and timely correct this process.

Thus, one of the main tasks of capital formation - optimization of its structure, taking into account a given level of its profitability and risk - is solved by different methods. One of the main mechanisms for achieving this task is financial leverage.

Financial leverage characterizes the use of borrowed funds by an enterprise, which affects changes in the return on equity ratio. In other words, financial leverage is an objective factor that arises with the appearance of borrowed funds in the volume of capital of an enterprise and allows it to obtain additional profit on its own capital.

An indicator reflecting the level of additionally generated profit on equity capital at different shares of borrowed funds is called the effect of financial leverage. It is calculated using the following formula:

EFL _ (1 - SNP) X (KVRa - PK) X SK, (12)

where EFL is the effect of financial leverage, which consists in an increase in the return on equity ratio, %; C - becoming

income tax rate, expressed as a decimal fraction; KVRa - gross return on assets ratio (ratio of gross profit to average asset value), %; PC - the average amount of interest on a loan paid by an enterprise for the use of borrowed capital,%; ZK - the average amount of borrowed capital used by the enterprise; SK is the average amount of the enterprise's equity capital.

In the formula for calculating the effect of financial leverage, three main components can be distinguished:

1) tax corrector of financial leverage (1 - SNP), which shows to what extent the effect of financial leverage is manifested in connection with different levels of profit taxation;

2) financial leverage differential (KVRa - PC), characterizing the difference between the gross return on assets ratio and the average interest rate on a loan;

3) financial leverage ratio ZK L

I, which characterizes the amount borrowed

capital used by an enterprise per unit of equity capital.

Isolating these components allows you to purposefully manage the effect of financial leverage in the process of financial activity of the enterprise.

The tax corrector of financial leverage practically does not depend on the activities of the enterprise, since the profit tax rate is established by law. At the same time, in the process of managing financial leverage, a differentiated tax adjuster can be used in the following cases: a) if differentiated profit tax rates are established for various types of activities of the enterprise; b) if the enterprise uses tax benefits on profits for certain types of activities; c) if individual subsidiaries of the enterprise operate in free economic zones of their country, where preferential income taxation regimes apply; d) if separate subsidiaries

enterprises operate in countries with lower levels of income taxation.

In these cases, by influencing the sectoral or regional structure of production (and, accordingly, the composition of profit according to the level of its taxation), it is possible, by reducing the average rate of profit taxation, to increase the influence of the tax corrector of financial leverage on its effect (all other things being equal).

The main condition for achieving a positive effect of financial leverage is its differential. This effect manifests itself only when the level of gross profit generated by the assets of the enterprise exceeds the average interest rate for the loan used (a value that includes not only its direct rate, but also other specific costs for its attraction, insurance and servicing), i.e. when the financial leverage differential is positive. The greater the positive value of the financial leverage differential, the higher, other things being equal, its effect.

Due to the high dynamics of this indicator, it requires constant monitoring in the process of managing the effect of financial leverage. This dynamism is due to a number of factors.

First of all, during a period of deterioration in financial market conditions (primarily, a reduction in the supply of free capital), the cost of borrowed funds may increase sharply, exceeding the level of gross profit generated by the assets of the enterprise.

In addition, a decrease in the financial stability of an enterprise in the process of increasing the share of borrowed capital used leads to an increase in the risk of bankruptcy, which forces lenders to increase the interest rate for the loan, taking into account the inclusion of a premium for additional financial risk. At a certain level of this risk (and, accordingly, the general interest rate for the loan), the financial leverage differential can be reduced to zero (at which the use of borrowed capital will not increase the profitability of equity capital) and even acquire a negative value (at which the profitability of equity capital will decrease, so how part of the net profit it generates will be spent on maintenance

used borrowed capital at high interest rates). Finally, during a period of deterioration in commodity market conditions, the volume of product sales decreases, and, accordingly, the size of the enterprise’s gross profit from operating activities decreases. Under these conditions, the value of the financial leverage differential may become negative even at constant interest rates for the loan due to a decrease in the gross return on assets ratio.

The formation of a negative value of the financial leverage differential for any of the above reasons always leads to a decrease in the return on equity ratio. In this case, the use of borrowed capital by an enterprise has a negative effect.

The financial leverage ratio is the lever that multiplies (changes in proportion to the multiplier or coefficient) the positive or negative effect obtained due to the corresponding value of its differential. With a positive differential value, any increase in the financial leverage ratio will cause an even greater increase in the return on equity ratio, and with a negative differential value, an increase in the financial leverage ratio will lead to an even greater rate of decline in the return on equity ratio. In other words, an increase in the financial leverage ratio multiplies an even greater increase in its effect (positive or negative depending on the positive or negative value of the financial leverage differential). Likewise, reducing the financial leverage ratio will have the opposite effect, reducing its positive or negative effect to an even greater extent.

Consequently, with a constant differential, the financial leverage ratio can be the main generator of both an increase in the amount and level of profit on equity, and the financial risk of losing this profit. Similarly, with a constant financial leverage ratio

positive or negative dynamics of its differential can generate both an increase in the amount and level of profit on equity, and the financial risk of its loss.

Knowledge of the mechanism of influence of financial leverage on the level of profitability of equity capital and the level of financial risk allows you to purposefully manage both the cost and capital structure of the enterprise.

The mechanism of financial leverage is used most effectively in the process of optimizing the capital structure of an enterprise. The optimal capital structure is a ratio of the use of own and borrowed funds that ensures the most effective proportionality between the financial profitability ratio and the enterprise’s financial stability ratio, i.e., its market value is maximized.

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