In modern market conditions, an enterprise cannot do without borrowed and attracted funds, that is, without external sources of financing. For mature, long-established companies, raising borrowed funds is considered a more favorable factor than a new issue of shares. It is important that the enterprise maintains financial stability and maintains a flexible policy regarding credits and loans.
External sources of financial resources are divided into:
1. Long-term liabilities- these are obligations that must be repaid within a period exceeding 1 year (12 months). These include: long-term loans and loans, including bonds; accounts payable with a maturity of more than 1 year; long-term bills payable, etc. For a long time in a centrally planned economy, almost the only type of borrowed capital remained long-term loans . In market conditions, their role is sharply reduced, they acquire a certain significance bond issues . However, only large enterprises can resort to them. New long-term financing instruments are: rights to preferential purchase of shares, collateral transactions, mortgage, financial leasing and others.
2. Current liabilities- these are liabilities that are covered by current assets, or are repaid as a result of the formation of new short-term liabilities. They are repaid within 1 year. Current liabilities include items such as short-term bank loans, debt certificates - loans, tax debt and deferred taxes (tax credit), promissory notes payable, part of long-term liabilities payable in the current period.
3. Current accounts payable - This is money temporarily attracted by the enterprise, subject to return to persons from whom they are borrowed and to whom they have not yet been paid. This source is also called spontaneous. It is a natural element of the current activities of the enterprise. Accounts payable are mainly outstanding payments to suppliers for shipped goods, unpaid, deferred taxes, unpaid accrued wage, unpaid insurance premiums, unpaid debts, debts to banks, accrued but not paid interest and dividends. Basically, these are obligations, the payment term of which has already come, but the company has not yet paid these debts, i.e. these debts must be repaid as soon as possible.
The main external sources are loans provided by banks or non-bank credit institutions, other commercial enterprises, tax authorities. There are the following types of loans:
· financial loan- a loan from a bank or credit institution on the terms of return, urgency, payment. The recipient of the loan, according to the terms of the agreement, undertakes to repay the received loan amount in the established amount and pay interest for using the loan. Bank lending can take the form of fixed-term, contract-current, discount, acceptance loans, factoring and other forms of credit.
· Commercial loan - It is provided as a video deferral of payments from one enterprise to another, for example, by suppliers in the form of an open account, a bill of exchange loan, a corporate loan.
· tax credit- provided to companies by the state in the form of tax deferrals in accordance with the Law “On Investment Tax Credit”, enacted in 1993. This loan is provided for the purchase of property of an enterprise during privatization, for small enterprises when purchasing and commissioning equipment, etc.
Financial decisions regarding sources of funds are made not only within strategic management, but also in the course of the current activities of the enterprise, that is, when financing working capital. Direct financing of current activities is carried out by attracting various types of bank loans, indirect financing is carried out at the expense of accounts payable - a commercial loan.
Question 3. Composition and formation equity enterprises.
One of the key concepts in the theory of finance is "capital". Most often, capital is understood as long-term sources of funds and is divided into equity and borrowed capital. Own capital characterizes the share of the value of property owned by the owners of the enterprise, borrowed capital - the share of the value of property owned by third-party investors. The company's own capital includes authorized, additional and reserve capital, as well as targeted financing, funds formed from profits and retained earnings. Borrowed capital includes long-term loans and borrowings, including bonds.
Authorized capital - the main source of funding at the time of creation commercial enterprise. It is formed at the expense of the founders in the form of share contributions, if the enterprise is a limited liability company (LLC). As contributions to the authorized capital may include buildings, structures, equipment, other valuables, property rights, including intellectual property.
For a joint-stock company (JSC), the authorized capital consists of ordinary and preferred shares, their nominal value.
Ordinary shares (common)- the main component of the authorized capital of the company. They are characterized by the following features: give the right to participate in the management of the company by voting at a meeting of shareholders; no guaranteed income; there is no guarantee that when selling shares, their owner will not incur a loss; upon liquidation of the company, the right to receive part of the property is exercised last.
Preference shares give them to the owner preemptive right to receive dividends, most often in the form of a fixed percentage, as well as to receive an e share in the balance of the company's assets upon liquidation. The holders of preference shares do not have the right to vote general meeting shareholders. The yield on preferred shares is usually lower than on common shares. Preferred shares are more often traded on the financial market and are viewed as less risky investments. The nominal value of shares placed on the market must not exceed 25% of the authorized capital. Unlike ordinary shares, preferred shares have limited time life.
Extra capital- is formed at the expense of share premium and the amount of revaluation (revaluation) of fixed assets of the enterprise and intangible assets.
Share premium- income joint stock company, which is formed due to the difference between the price of the initial offering of shares on the market and their nominal value.
Example 1 The promotion has face value 500 rubles, the company places 10,000 shares on the market at a price of 700 rubles.
The total income of the company = 10,000 x 700 = 7,000,000 (rubles)
Of this amount, 5,000,000 (= 10,000 x 500) rubles will increase the authorized capital of the enterprise, and 2,000,000 will be share premium.
Share premium \u003d 10,000 x (700 - 500) \u003d 2,000,000 (rubles)
Example 2 The initial cost of fixed assets of the enterprise was 12,500 thousand rubles. After revaluation, the cost of fixed assets is 19,800 thousand rubles. The increase in additional capital (AC) will be:
Change in DC = 19,800,000 - 12,500,000 = 7,300,000 (rubles)
Reserve capital- reflects the increase in the company's equity capital due to the profits of previous years. It is formed through mandatory annual contributions, which for joint-stock companies should not be less than 5% of net profit. These deductions are made until the capital reaches a certain size. The funds of the reserve capital are intended to cover losses in future periods, to redeem bonds and buy back the company's own shares in the absence of other funds.
Authorized, additional and reserve capital form share capital enterprises. The amount of share capital differs from the amount of equity capital by the amount of retained earnings.
retained earnings- this is the part of the company's profit that remains at its disposal after paying taxes, paying dividends, forming a reserve and other funds, covering losses of previous years. Retained earnings are reinvested in the assets of the enterprise and reflected in the liabilities side of the balance sheet. The rest of the profit remains unchanged until the next meeting of shareholders (shareholders). Profits shown on the balance sheet are not cash and cannot be used as funds in a bank. The company may, on the one hand, have large incomes and retained earnings, and on the other hand, lack cash.
Question 4. The price of capital.
When assessing the sources of financial resources, determine average price(value) of capital
The average (weighted average) price of capital (ACC) is the total amount of funds that must be paid for the use of a certain amount of financial resources, expressed as a percentage. This is the cost of attracting financial resources.
The value of the average price of capital is also used in the evaluation of investment projects. The cost of capital is understood as the minimum rate of return - the return that investors expect to receive when investing in an alternative investment project with a constant amount of risk. That is, the value of the price of capital as a percentage is the percentage return that investors expect to receive in the process of project implementation.
The cost of capital is defined as the weighted average value - the after-tax cost, which the enterprise manages with its own and borrowed sources of financing. P
SCC \u003d ∑ Ci x Uvi \u003d C1 x Uv1 + C2 x Uv2 + ... + Sp x Uvp, Where
Сi (С1, С2, …Сп)– average cost of each source of fundraising, expressed as a percentage – profitability of the respective financial instrument;
Uvi– specific gravity(share) of each source.
Example. Determine the share of sources and the average price of capital. Analyze the attraction of funds in the indicated proportions and draw a conclusion, due to which it is possible to reduce the weighted average cost of capital.
Introduction
Any enterprise cannot exist without its own financial resources, because, as you know, one of the main components of these resources is the authorized capital, which determines minimum size enterprise property.
First and prerequisite normal activity of any enterprise is the presence of its own funds.
In order for an enterprise to function normally, it is necessary to carefully analyze its financial activities, identify problems and find ways out of them. In fact, the basis of the finances of the enterprise should be own resources, otherwise, based only on attracted (borrowed) funds, he is threatened with collapse and bankruptcy. After all, in this case, the company simply will not be able to repay its obligations and continue to freely engage in its production activities.
Unfortunately, at present, most enterprises exist mainly on borrowed funds, having their own financial resources in the amount of less than 40-30% of their total number. Gradually, these business entities are subject to slow, and sometimes even very fast "drowning in debt" to creditors, suppliers, etc.
The purpose of my work is to consider the composition of our own financial resources and trace the problems of the formation of some of them in a crisis.
During the crisis, if correctly assessed financial condition of the enterprise, having analyzed it from the very foundation, it is possible to bring the enterprise out of the state of decline and even increase its profitability.
Internal own sources of financial resources of the enterprise
Internal sources of own funds are formed in the course of economic activity and play a significant role in the life of any enterprise, since they determine its ability to self-finance. Obviously, an enterprise that is able to fully or to a large extent cover its financial needs at the expense of internal sources, receives significant competitive advantages and favorable opportunities for growth by reducing the cost of raising additional capital and reducing risks.
The main internal sources of financing for any commercial enterprise are net profit, depreciation, sale or lease of unused assets, etc.
IN modern conditions enterprises independently distribute the profits remaining at their disposal. Profit is the main source of funds for a dynamically developing enterprise. In the balance sheet, it is present explicitly as retained earnings, and also in a veiled form - as funds and reserves created from profits. In conditions market economy the amount of profit depends on many factors, the main of which is the ratio of income and expenses. At the same time, the current regulatory documents provide for the possibility of a certain regulation of profits by the management of the enterprise. These regulatory procedures include:
Varying the boundary of attributing assets to fixed assets;
accelerated depreciation of fixed assets;
The applied depreciation method for low-value and wearing items;
· procedure for valuation and amortization of intangible assets;
the procedure for evaluating participants' contributions to the authorized capital;
choice of method for estimating inventories;
the procedure for accounting for interest on bank loans used for financing capital investments;
the procedure for creating a reserve for doubtful debts;
The procedure for attributing to the cost of goods sold certain types expenses;
The composition of overhead costs and the way they are distributed.
Profit -- the main source of formation of reserve capital (fund). This capital is intended to compensate for unforeseen losses and possible losses from economic activity, that is, it is insurance in nature. The procedure for the formation of reserve capital is determined normative documents governing the activities of an enterprise of this type, as well as its statutory documents.
Rational use of profits involves taking into account factors such as plans further development enterprises, as well as respecting the interests of owners, investors and employees. In general, the more profit is directed to the expansion of economic activity, the less the need for additional financing. The amount of retained earnings depends on the profitability of business operations, as well as on the policy adopted by the enterprise regarding payments to owners ( dividend policy).
The advantages of reinvesting profits include:
· no costs associated with raising capital from external sources;
maintaining control over the activities of the enterprise by the owners;
raising financial stability and better opportunities to raise funds from external sources.
In turn, the disadvantages of using this source are its limited and changing value, the complexity of forecasting, as well as dependence on external factors that cannot be controlled by management (for example, market conditions, the phase of the economic cycle, changes in demand and prices, etc.). ).
Another important source of self-financing of enterprises is depreciation. They are included in the expenses of the enterprise, reflecting the depreciation of fixed and intangible assets, and are received as part of cash for sold products and services. Their main purpose is to provide not only simple, but also extended reproduction. The advantage of depreciation as a source of funds is that it exists in any financial position of the enterprise and always remains at its disposal. The amount of depreciation as a source of investment financing largely depends on the method of its calculation, as a rule, determined and regulated by the state. The selected depreciation method is fixed in accounting policy enterprise and is applied during the entire period of operation of the fixed asset.
The use of accelerated methods (decreasing balance, the sum of the numbers of years, etc.) allows you to increase depreciation charges in the initial periods of operation of investment objects, which, with other equal conditions leads to an increase in self-financing. In general, an adequate depreciation policy, under certain conditions, can contribute to the release of funds in excess of the costs of investments made. This fact is known as the Logman-Rukhti effect, which showed that under conditions of constant investment growth rates, when using linear depreciation, the ratio between them will have the form
DAi / ICi = ((1 - (1 + g) - n) / g) x n
where g is a constant growth rate;
n -- useful life of depreciable assets;
DAi -- depreciation charges in period I;
ICi -- investment in period i.
Thus, for more efficient use of depreciation charges as financial resources, an enterprise needs to pursue an adequate depreciation policy. It includes a policy for the reproduction of fixed assets, a policy in the field of application of certain methods for calculating depreciation charges, the choice of priority areas for their use, and other elements.
In some cases, it is possible to attract additional financial resources into economic circulation from domestic sources through the sale or leasing of unused fixed and current assets. However, such transactions are of a one-time nature and cannot be considered as a regular source of funds. To assess the ability of an enterprise to self-finance and predict its volumes in the corresponding period, the ratio can be used
SF = (EBIT - I) (1 - T) + DA x T - DIV
where EBIT is earnings before interest and taxes; I -- the cost of servicing loans (interest payments); DA -- depreciation; T -- income tax rate; DIV - payments to owners.
As follows from this formula, the ability of an enterprise to self-finance is directly affected, in addition to the efficiency of economic activity, by the ongoing borrowing, depreciation and dividend policy. Despite the advantages of internal sources of financing, their volumes are usually insufficient for expanding the scale of economic activity, implementing investment projects, introducing new technologies, etc. In this regard, there is a need to additionally attract own funds from external sources.
The budget of the enterprise at the initial stage of development is formed at the expense of the funds of its founders. Wherein internal funds at a certain point, the company ceases to be enough to carry out daily activities, development and work for the future. Sources of external financing make it possible to solve this problem with the least time loss.There are two options for external funding. For many companies and individuals with free capital, the best way to increase it is to finance various projects instead of starting a new line of business. Compared to starting your own company, investing in an already existing and successfully operating organization provides greater guarantees of a return on funds with a profit. An additional advantage is the possibility of repurchasing part of the shares.
The second way to attract external sources of financing is to receive funds from a banking organization. A loan or credit is issued at interest, and the terms of financing may be different. In most cases, the company pays monthly payments, which include interest on the loan and part of the principal.
Options for obtaining external financial resources
The company can attract external financing from banks and other organizations. At the same time, management must calculate all the risks associated with the obligations assumed.To attract external financial resources, companies may issue shares or other securities. As a result, the organization receives funds at its disposal by transferring its debt obligations or a share in the capital of the company to individuals and legal entities. This method of raising funds is called direct financing. Indirect financing consists in obtaining credits and loans from a bank.
There can be several sources of external financial resources:
- Funds of higher organizations for which the company is a subsidiary. This financing option is often used in large holdings and corporations.
- In some cases, it is possible to attract funds from public sources. Grants and subsidies are designed to improve financial position organizations, in the existence and successful functioning of which the authorities are interested.
- The volume of foreign investments is growing every year. Foreign companies invest in the development of companies in various industries.
- Raising funds from Russian private companies and individuals is the main source of external financing, along with loans from banking organizations.
* this work is not a scientific work, is not a graduation qualifying work and is the result of processing, structuring and formatting the collected information, intended for use as a source of material for self-study educational work.
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Application……………………………………………………………………..27
Introduction
Finance represent economic relations which are associated with the formation, distribution, as well as the use of funds and funds to fulfill the tasks set by the state and to create conditions for expanded reproduction in the economy.
Finance expresses the monetary relations that arise between:
enterprises of various forms of ownership in the acquisition of inventory items, in the sale of products, works, services;
enterprises and higher organizations in the creation of centralized funds and their distribution;
the state and citizens when paying taxes and other payments;
the state and enterprises when paying taxes, other mandatory fees, as well as with funding from the budget;
· enterprises, citizens, off-budget funds when making payments and receiving resources;
individual parts of the budget system;
insurance organizations, enterprises, the population when paying insurance premiums, when compensating for damage in the event of an insured event.
According to the material content, finances represent the financial resources of the country. Financial resources- this is a set of trust funds, funds of the state and enterprises. Financial resources are made up of the following sources:
funds accumulated in the state budget system;
funds from extrabudgetary funds;
Resources of enterprises (profit remaining at the disposal of enterprises, depreciation).
Financial system of the Russian Federation represents a combination of various spheres of financial relations, each of which is characterized by features in the formation and use of funds of funds, a different role in social reproduction.
nationwide finance plays a leading role: in ensuring certain rates of development of all branches of the national economy; redistribution of financial resources between sectors of the economy and regions of the country, production and non-production areas, forms of ownership, individual groups and strata of the population.
General government finance is organically linked to enterprise finance. On the one hand, the main source of budget revenues is the national income generated in the sphere of material production. On the other hand, the process of expanded reproduction is carried out not only at the expense of enterprises' own funds, but also with the involvement of a nationwide fund of funds in the form of budget allocations and the use of bank loans.
1. Finance of enterprises.
Finances of enterprises of various forms of ownership, being the basis of the country's unified financial system, serve the process of creating and distributing the social product and national income. The provision of centralized monetary funds with financial resources depends on the state of the enterprise's finances. At the same time, the active use of enterprise finances in the process of production and sale of products does not exclude the participation of the budget, bank loans, and insurance in this process.
The finances of an enterprise reflect in monetary form the economic relations associated with the formation and distribution of cash income and savings from business entities and their use in fulfilling obligations to the financial and banking system and financing the costs of expanded reproduction, social security and material incentives for employees. These relations arise in the process of circulation of fixed and working capital, production and sale of products, creation and expenditure of funds of monetary resources. Given their specifics, the following can be distinguished as part of financial relations: groups of relatively homogeneous monetary relations:
· associated with the formation of primary income, the formation and use in the economic units of material production of trust funds for on-farm purposes, intended to meet production and consumer needs;
arising between enterprises, if these relations are of a distributive nature, and do not serve the exchange. The movement of financial resources in this case is carried out in a non-fund form (payment and receipt of fines in case of violation of contractual obligations, making share contributions by members of various associations, their participation in the distribution of profits from the cooperation of production processes, investing in shares and bonds of other enterprises, receiving dividends on them and interest, etc.);
· emerging material production enterprises with insurance organizations in connection with the formation and use of various kinds of insurance funds;
· Formed by enterprises with banks when obtaining bank loans, repaying them, paying interest on them, as well as providing banks for temporary use of free cash for a certain fee;
· arising from enterprises of material production with the state regarding the formation and use of budgetary and extrabudgetary funds. This group of financial relations takes the form of payments to the budget, budget financing, payments to various off-budget funds, etc.;
· emerging from enterprises with their higher management structures within the boundaries of intra-industry redistribution of financial resources.
Expressing a certain economic category, finance is at the same time a tool for influencing the production and economic activities of an enterprise through financial mechanism, which includes a system of financial leverage (profit, income, depreciation, financial sanctions, interest rates, dividends, etc.), which is implemented in organizing, planning and stimulating the use of financial resources. The structure of the financial mechanism includes five interconnected elements: financial methods, financial leverage, legal, regulatory and information support.
In the process of realizing its main goal, the financial mechanism is aimed at solving the following main tasks:
1.Ensuring the formation of a sufficient amount of financial resources in accordance with the objectives of the development of the enterprise in the coming period. This task is implemented by determining the total need for financial resources of the enterprise for the coming period, maximizing the volume of attracting own financial resources from internal sources, determining the feasibility of forming own financial resources from external sources, managing the attraction of borrowed funds. financial resources, optimization of the structure of sources for the formation of resource financial potential.
2.Ensuring the most efficient use of the formed volume of financial resources in the context of the main activities of the enterprise. Optimization of the distribution of the formed volume of financial resources provides for the establishment of the necessary proportionality in their use for the purposes of the production and social development of the enterprise, the payment of the required level of income on invested capital to the owners of the enterprise, etc. In the process of production consumption of the formed financial resources in the context of the main activities of the enterprise, the strategic goals of its development and the possible level of return on investment should be taken into account.
3.Cash flow optimization. This problem is solved by effectively managing the enterprise's cash flows in the process of its cash circulation, ensuring synchronization of the volumes of receipts and expenditures of funds for certain periods, maintaining the necessary liquidity of its current assets. One of the results of such optimization is the minimization of the average balance of free cash assets, which reduces losses from their inefficient use and inflation.
4.Ensuring the maximization of the profit of the enterprise with the foreseen level of financial risk. Profit maximization is achieved through the effective management of the enterprise's assets, the involvement of borrowed funds in the economic turnover, and the choice of the most effective areas of operating and financial activities. At the same time, in order to achieve the goals of economic development, the enterprise should strive to maximize not the balance sheet, but the net profit remaining at its disposal, which requires the implementation of an effective tax, depreciation and dividend policy. Solving this problem, it must be borne in mind that the maximization of the level of profit of the enterprise is achieved, as a rule, with a significant increase in the level of financial risks, since there is a direct relationship between these two indicators. Therefore, profit maximization should be ensured within the allowable financial risk, the specific level of which is set by the owners or managers of the enterprise, taking into account their financial mentality (relations to the degree of acceptable risk in the implementation of economic activities).
5.Ensuring the minimization of the level of financial risk at the expected level of profit. If the level of profit of the enterprise is set or planned in advance, an important task is to reduce the level of financial risk that ensures the receipt of this profit. Such minimization can be achieved by diversifying the types of operating and financial activities, as well as the portfolio of financial investments; prevention and avoidance of certain financial risks, effective forms of their internal and external insurance.
6.Ensuring the constant financial balance of the enterprise in the process of its development. Such a balance is characterized by a high level of financial stability and solvency of the enterprise at all stages of its development and is ensured by the formation of an optimal structure of capital and assets, effective proportions in the volume of formation of financial resources from various sources, and a sufficient level of self-financing of investment needs.
Basic principles the organization of the financial activity of enterprises consists in the centralization of financial resources, which makes it possible to quickly maneuver them and concentrate funds on priority areas for the development of production; development of short, medium and long-term financial plans; creation of financial reserves in case of unforeseen situations; unconditional fulfillment of financial obligations to partners and the state.
Thus, the financial resources (Appendix 1) of the company are part of the funds in the form of income and external receipts intended to fulfill financial obligations and incur costs to ensure expanded reproduction.
Enterprise finance performs the following functions:
· the formation of income and cash funds as a necessary condition for ensuring a continuous production process by creating financial resources to increase fixed assets and working capital, production and sales of products, the formation of consumption and accumulation funds;
· distribution of income of the enterprise on the funds remaining in its ownership and transferred to the federal, regional and local budgets;
· financial control of production, distribution and use of the created product and net income, i.е. verification of the correctness of the expenditure of material, labor and financial resources in the process of production and sale of products.
2. The structure of financial resources in the enterprise.
The cost of the applied national economy or its separate link (enterprise, industry) of the means of production is their productive assets, or investment capital. A necessary condition for the production and economic activity of an enterprise is the circulation of funds - the constant movement of the value of investment resources, as a result of which it consistently takes productive, monetary and commodity forms. Depending on production consumption and participation in the creation of product value production assets subdivided into main revolving funds. The ratio between them depends on the technique and production technology, consumed raw materials, materials and energy, and the characteristics of the products. This ratio on average in the industry is approximately 80% and 20%, in the chemical industry - 90% and 10%, in mechanical engineering - 60% and 40%.
2.1. Basic funds.
Basic production assets(OPF) of industry is the means of labor in monetary terms, used gradually in the production process over a number of its cycles, the cost of which is transferred in parts to the finished product and is reimbursed from the cost of products sold. There are also non-productive fixed assets- objects of healthcare, culture, social welfare, children's institutions, etc., which are under the jurisdiction of enterprises, but are not directly involved in production, but serve the employees of these enterprises.
Depending on the production purpose, fixed assets are divided into groups:
Building- these are architectural and construction objects designed to create the necessary working conditions. This group includes: residential buildings, production buildings of workshops, depots, garages, warehouses, production laboratories, etc. These facilities also include heating systems, an internal sewerage and water supply network, lighting fittings and electrical wiring, internal telephone and signaling networks, ventilation devices, and lifts.
Structures- these are engineering and construction objects intended for the implementation of the production process and not associated with a change in the objects of labor. These include: mine shafts, oil wells, dams, overpasses, water-lifting stations and wells, reservoirs, bridges, roads, railways of intra-factory, on-farm transport.
Transfer devices- devices with the help of which the transfer of electrical, thermal or mechanical energy, as well as the transfer of liquid and gaseous substances from one object to another. These devices include: oil and gas pipelines, water distribution networks, electrical networks, heating networks, gas networks, communication lines.
cars and equipment are used for direct impact on the object of labor or its movement in the process of creating a product or service of an industrial nature, for the generation and conversion of energy. These include: power machines and equipment, turbine equipment, tractors, metal-cutting, press-forging, compressor equipment, pumps, hoisting and transport, handling equipment, computer technology.
Vehicles designed to move people and goods within the enterprise and outside it. This group includes: rolling stock of railway transport (factory locomotives, wagons, tanks, railcars); factory barges, boats, ferries, cars, tractors, tractors, motorcycles; as well as industrial transport - trolleys, autocars, electric cars, carts and the like (except for conveyors, conveyors and other mechanisms related to industrial equipment).
Tools of all kinds- these are mechanized and non-mechanized cutting, pressing, compacting, impact and other tools of manual labor, as well as devices attached to machines that serve to process products (clamps, vices, mandrels).
Production equipment and accessories serve to facilitate production operations (work tables, workbenches); for storage of liquid and loose bodies (tanks, vats); for labor protection (a group of fencing machines). This group also includes trade cabinets and racks, inventory packaging, technical items that cannot be classified as working machines.
TO household inventory include office and household furnishings: office furnishings, wardrobes, tables, fireproof cabinets, typewriters, duplicators, as well as fire-fighting items.
TO other fixed assets include, for example, library collections.
The remaining groups of fixed production assets (working and productive livestock, perennial plantations and capital expenditures for land improvement) have in fixed assets industrial enterprises very low specific gravity.
Production structure of fixed assets characterized by the share of each group of fixed assets in their total value for the enterprise, industry and industry as a whole (Appendix 2).
The production structure of fixed assets and its change over a given period of time make it possible to characterize the technical level of industry and the effectiveness of the use of capital investments in fixed assets. In particular, the higher the share of machinery, equipment and other elements of the active part of fixed assets in the composition of fixed assets, the more products will be produced for each ruble of fixed assets.
The structure of industrial and production fixed assets should also be considered in the sectoral context. It reflects the level of material and technical base industrial production, as well as the degree of industrial development of the country.
The main part of the production fixed assets of industry is located at enterprises of heavy industry, including a significant proportion of them concentrated in industries that ensure technical progress in the national economy (in the electric power industry, mechanical engineering, in the chemical, petrochemical and fuel industries, in ferrous metallurgy and other industries).
2.2. Working capital.
An indispensable condition for the implementation of economic activity by an enterprise is the presence working capital (working capital). working capital- these are funds advanced to working capital and circulation funds.
William Collins defines the essence of current assets as "... the short-term current assets of a firm that quickly turn over during the production period."
Cherkasov V.E. in the training manual on financial management specifies that “ working capital are the company's current assets, which are in cash or can be turned into them within a year or one production cycle.
To define the concept of working capital, let us formulate external and internal factors on which the value and condition of the company's current assets depend.
TO external factors should include the relationship of the enterprise with contractors - suppliers of raw materials and materials and consumers of finished products. The amount of stocks of raw materials, materials, finished products in warehouses, receivables directly depend on the degree of established contacts with these counterparties. In addition, the value of current assets depends on the timeliness of settlements with suppliers for acquired assets, since when paying off accounts payable to counterparties, the enterprise is reimbursed for the VAT paid, which in turn reduces the value of current assets by this amount (p. 220 “VAT on acquired values” of the balance sheet).
TO internal factors on which the value and condition of the current assets of the enterprise depends can be attributed to the duration of the production cycle of the enterprise. Depending on the type of products produced, the production cycle of an enterprise can vary from one day to several months, which affects the amount of work in progress. For example, at food industry enterprises, the value of work in progress may be minimal due to the short manufacturing technology.
In addition, the state of fixed assets of the enterprise should also be attributed to internal factors. For example, the deterioration of the condition of fixed assets leads to an increase in the cost of repairs, maintenance of equipment, etc., resulting in an increase in the amount of costs attributable to the cost of production. In order for the cost of production not to have significant jumps, part of the costs is written off to account 31 "Deferred expenses", included in the structure of the company's working capital. In this regard, the presence or absence of such costs is also reflected in the value of the company's current assets.
Thus, taking into account the above factors and the above definitions, we formulate the concept of "current assets": these are assets that characterize the totality of the enterprise's property values serving the current production and commercial activities, the value of which is determined by its scale and nature and depends on the duration of the production cycle, the state of the main funds of the enterprise, as well as its relationship with counterparties.
In their turnover, working capital consistently takes on a monetary, productive and commodity form, which corresponds to their division into production assets and circulation funds. The material carrier of production assets are the means of production, which are divided into objects of labor and tools of labor. Finished products together with cash and funds in the calculations reflect circulation funds.
The circulation of funds of enterprises begins with the advance of value in cash for the purchase of raw materials, materials, fuel and other means of production - the first stage of the circuit. As a result, cash takes the form of inventories, expressing the transition from the sphere of circulation to the sphere of production. In this case, the value is not spent, but is advanced, since after the completion of the circuit it is returned. The completion of the first stage interrupts commodity circulation, but not circulation.
The second stage of the circuit takes place in the process of production, where the labor power carries out the productive consumption of the means of production, creating a new product that carries in itself the transferred and newly created value. The advanced value again changes its form - from a productive one it passes into a commodity one.
The third stage of the circulation is the sale of finished products (works, services) and the receipt of funds. At this stage, working capital again moves from the sphere of production to the sphere of circulation. The interrupted circulation of goods is resumed, and the value of commodity form goes into cash. The difference between the amount of money spent on the manufacture and sale of manufactured products (works, services) is the cash savings of the enterprise.
Having completed one circuit, working capital enters a new one, thereby carrying out their continuous circulation. It is the constant movement of working capital that is the basis for an uninterrupted process of production and circulation.
The circulation of funds of enterprises can only be carried out if there is a certain advanced value in the form of money. Entering the circuit, it no longer leaves it, consistently changing its functional forms.
Current assets act, first of all, as a cost category. In the literal sense, they are not material values, since they cannot be used to produce finished products. Being value in monetary form, working capital already in the process of circulation takes the form of inventories, work in progress, finished products. Unlike inventory items, working capital is not spent, not expended, not consumed, but advanced, returning after one cycle and entering the next.
The study of the essence of working capital involves the consideration of working capital and circulation funds. Working capital, working capital and circulation funds exist in unity and interconnection, but there are significant differences between them, which boil down to the following.
Working capital is constantly in all stages of the enterprise, while working capital goes through the production process, being replaced by new batches of raw materials, fuel, basic and auxiliary materials. Inventories, being part of working capital, go into the production process, turn into finished products and leave the enterprise. Working capital is completely consumed in the production process, transferring its value to the finished product. Their sum per year can be dozens of times greater than the amount of working capital, which ensures the processing or consumption of a new batch of objects of labor during each circuit and those remaining in the economy, making a closed circuit.
Revolving funds are directly involved in the creation of new value, and working capital - indirectly, through revolving funds. The circulation of funds of enterprises ends with the process of selling products (works, services). For the normal implementation of this process, enterprises, along with fixed and circulating assets, must also have circulation funds. The turnover of circulation funds is inextricably linked with the turnover of circulating production assets and is its continuation and completion.
Working capital, making a circuit, from the sphere of production, where they function as working capital, pass into the sphere of circulation, where they function as circulation funds.
Thus, the working capital of enterprises according to their purpose in the process of reproduction is broadly divided into the following groups:
· productive reserves;
· unfinished production;
finished products in stock and shipped;
cash on hand and on the current account, and funds in settlements.
Work in progress is a product (work) that has not passed all the stages provided for by the technological process, as well as products that are incomplete or have not passed testing and technical acceptance.
Deferred expenses are expenses incurred in the reporting period, but related to the following reporting periods.
Finished products are finished and manufactured products that have passed tests and acceptance, are fully completed in accordance with contracts with customers and comply with specifications and requirements.
The amount of working capital is determined not only by the needs of the production process, but also by random factors. Therefore, it is customary to subdivide working capital into fixed and variable.
In the theory of financial management, there are two main interpretations of the concept of "permanent working capital". According to the first interpretation constant Working capital is that part of cash, receivables and inventories, the need for which is relatively constant throughout the entire operating cycle. This is an average, for example, in terms of time parameter, the value of current assets that are in the permanent management of the enterprise. According to the second interpretation, permanent working capital can be defined as the minimum necessary for the implementation of production activities. This approach means that an enterprise needs a certain minimum of working capital to carry out its activities, for example, a permanent cash balance on a current account, some analogue of reserve capital.
Category variable working capital reflects additional current assets needed during peak periods or as safety stock. For example, the need for additional inventory may be related to maintaining a high level of sales during seasonal sales. At the same time, as sales increase, accounts receivable increase. Additional cash is needed to pay for the supply of raw materials and materials, as well as labor activities that precede a period of high business activity.
In addition, there are:
own working capital;
borrowed working capital (loans from third parties);
Attracted working capital (attracted by the enterprise from its own funds).
According to the degree of planning, working capital is divided into normalized And non-standardized. Rationing involves the establishment of planned norms of the stock and norms for the elements of working capital, with the exception of goods shipped, cash and funds in the calculations. In practice, three methods of normalization of working capital are used:
1) analytical - provides for a thorough analysis of cash inventory items with the subsequent extraction of excess from them;
2) coefficient - consists in clarifying the current standards of own working capital in accordance with changes in production indicators;
3) direct counting method - scientifically based calculation of standards for each element of normalized working capital.
The amount of non-standardized working capital is determined on an operational basis.
3. Sources of formation of financial resources.
Sources of formation of financial resources is a set of sources to meet additional capital needs for the coming period, ensuring the development of the enterprise.
In principle, all sources of financial resources of an enterprise can be represented as the following sequence:
Own financial resources and intra-economic reserves,
borrowed funds,
attracted financial resources.
Own and attracted sources of financing form equity enterprises. Amounts attracted from these sources from outside, as a rule, are non-refundable. Investors participate in income from the sale of investments on the basis of shared ownership. Borrowed sources of financing form borrowed capital enterprises.
3.1. Equity.
First of all, the company focuses on the use internal funding sources.
Own internal funds include:
· authorized capital,
· Extra capital,
Retained earnings.
The organization of the authorized capital (Appendix 3), its effective use, management is one of the main and most important tasks of the financial service of the enterprise. Authorized capital- the main source of own funds of the enterprise. The amount of the authorized capital of a joint-stock company reflects the amount of shares issued by it, and the state and municipal enterprise- the amount of the authorized capital. The authorized capital is changed by the enterprise, as a rule, according to the results of its work for the year after the introduction of changes in the constituent documents.
It is possible to increase (decrease) the authorized capital by issuing additional shares into circulation (or withdrawing from circulation some of their number), as well as by increasing (decreasing) the par value of old shares.
TO additional capital relate:
· the results of the revaluation of fixed assets;
share premium of a joint-stock company;
· gratuitously received monetary and material values for production purposes;
· appropriations from the budget for the financing of capital investments;
funds to replenish working capital.
retained earnings this profit received in a certain period and not directed in the process of its distribution for consumption by owners and personnel. This part of the profit is intended for capitalization, i.e. to reinvest in production. According to its economic content, it is one of the forms of the reserve of the enterprise's own financial resources, which ensure its production development in the coming period.
Involved funds enterprises - funds provided on a permanent basis, which may be paid to the owners of these funds of income, and which may not be returned to the owners. These include: funds received from the placement of shares of a joint-stock company; share and other contributions of members of labor collectives, citizens, legal entities to the authorized capital of the enterprise; funds allocated by superior holding and joint-stock companies, public funds provided for targeted investment in the form of subsidies, grants and equity participation; funds of foreign investors in the form of participation in the authorized capital of joint ventures and direct investments of international organizations, states, individuals and legal entities.
3.2. Borrowed capital.
In some cases, it becomes necessary for an enterprise to attract borrowed capital to cover the need for fixed and working capital. Such a need may arise for reasons beyond the control of the enterprise. They can be optional partners, emergency circumstances, reconstruction and technical re-equipment of production, lack of sufficient start-up capital, seasonality in production, procurement, processing, supply and marketing of products, and other reasons.
Thus, borrowed capital, borrowed funds- these are funds and other property attracted to finance the development of an enterprise on a repayable basis. The main types of borrowed capital are: bank credit, financial leasing, commodity (commercial) credit, issue of bonds and others.
Borrowed capital about the term is divided into:
· short-term;
long-term.
As a rule, borrowed capital with a term of up to one year refers to short term, and more than a year - to long-term. The question of how to finance certain assets of the enterprise - at the expense of short-term or long-term capital must be discussed in each specific case. The effectiveness of the investment of borrowed capital is determined by the degree of return of fixed or working capital.
By sources of financing, borrowed capital is divided into:
· Bank loan;
placement of bonds;
Loans of legal entities under debt obligations;
leasing.
Long-term bank loans, bond offerings and corporate loans are traditional instruments of debt financing.
Bank loans are provided to the enterprise on the basis of a loan agreement, the loan is provided on the terms of payment, urgency, repayment against collateral: guarantees, pledge of real estate, pledge of other assets of the enterprise.
Many enterprises, regardless of the form of ownership, are created with very limited capital. This practically does not allow them to fully carry out their statutory activities at their own expense and leads to their involvement in the turnover of significant credit resources.
Not only large investment projects are credited, but also the costs of current activities: reconstruction, expansion, reorganization of production, redemption of leased property by the team and other events.
Essence leasing consists of the following. If the company does not have free funds to purchase equipment, it can apply to a leasing company. In accordance with the concluded agreement leasing company fully pays the manufacturer (or owner) of the equipment for its cost and leases it to the purchasing enterprise with the right to purchase (with financial leasing) at the end of the lease. Thus, the enterprise receives a long-term loan from a leasing company, which is gradually repaid as a result of the allocation of lease payments to the cost of production. Leasing allows the company to receive equipment, start its operation, without diverting funds from turnover. In a market economy, the use of leasing is 25% - 30% of the total amount of borrowed funds. Decision-making regarding leasing is based on the ratio of the value of the lease payment to the payment for the use of a long-term loan, which the company has the opportunity to obtain.
3.3. Cost of capital and financial risks. Optimal capital structure.
All funds provided at the disposal of the investment project have a value, i.e. for the use of all financial resources must be paid, regardless of the source of their receipt. Payment for the use of financial resources is made to the person who provided these funds - the investor in the form of dividends for the owner of the enterprise (shareholder), interest deductions for the creditor who provided the funds for certain time. In the latter case, the return of the amount of invested funds is provided.
Accounting and analysis of payment for the use of financial resources is one of the main ones in assessing the economic efficiency of capital investments. This is the subject of the next section of this tutorial series.
We note here two fundamentally important features of the payment for the enterprise's own financial resources accumulated by the enterprise in the course of its activities, and the attracted financial resources that are invested in the enterprise in the form of financial instruments of ownership (shares). At first glance, it may turn out that if the enterprise already has some financial resources, then no one needs to pay for these resources. This is the wrong point of view. The fact is that having financial resources, an enterprise always has the opportunity to invest them, for example, in any financial instruments, and thereby earn on it. Therefore, the minimum cost of these resources is the “earnings” of the enterprise from an alternative way of investing the financial resources at its disposal. Thus, an enterprise, when deciding to invest money in its own investment project, assumes the cost of this capital at least equal to the cost of an alternative investment of money.
Now consider the payment to the owners of the enterprise. This fee is not limited to dividends. The fact is that the profit of the enterprise remaining at the disposal of the owners (after paying the remuneration to the credit investor) is divided into two parts: the first part is paid in the form of dividends, and the second part is reinvested in the enterprise. Both the first and the second belong, in fact, to the owners of the enterprise. Therefore, when calculating the cost of equity capital, it is necessary to be guided by the following considerations: the entire cash profit of the enterprise (net cash flow), remaining after the payment of the amounts due to the creditor, is a payment to the total owner for the investments provided, and not be limited only to dividend payments to shareholders.
Differences between own and borrowed funds. The main difference between own and borrowed financial resources is that interest payments are deductible before taxes, i.e. are included in gross costs, while dividends are paid out of profits.
This circumstance serves as a source of additional benefit for the enterprise, which is called the "tax shield".
Thus, credit financing is more beneficial for the enterprise than financing with its own financial resources. At the same time, credit financing for an enterprise is more risky, since the interest on the loan and the main part of the debt must be repaid under any conditions, regardless of the success of the enterprise. It is clear that for an investor this form of investment is less risky, since, in accordance with the law, in extreme cases, he can get his money through the courts. The enterprise, seeking to reduce its risk, issues financial instruments of ownership (shares). But how to attract an investor to invest in these instruments if debt obligations are less risky for him? The only way is to attract an investor by promising him, and then providing him, a higher fee for attracting financial resources belonging to him.
If we compare both matrices, we get the “golden rule” of investing: The greater the risk of investing, the higher the return.
One of the urgent problems of the theory and practice of financial management is the task of choosing optimal capital structure, that is, determining the ratio of own and long-term borrowed funds.
The ratio between own and borrowed sources of funds is one of the key analytical indicators characterizing the degree of risk of investing financial resources in a given enterprise.
The possibility and expediency of managing the capital structure has long been debated among scientists and practitioners. There are two main approaches to this problem:
traditional;
Modigliani-Miller theory.
Followers of the first approach believe that the price of capital depends on the structure and there is an "optimal capital structure". Since the price of borrowed capital is on average lower than the price of equity capital, there is a capital structure, called optimal, in which the price of advanced capital has a minimum value, and, consequently, the price of the enterprise will be maximum.
The founders of the second approach - Modigliani and Miller argue the opposite - the price of capital does not depend on its structure, and, therefore, it cannot be optimized. In substantiating this approach, they introduce a number of limitations: the presence efficient market, the absence of taxes, the same interest rates for individuals and legal entities, rational economic behavior, the ability to identify enterprises with the same degree of risk, etc. Under these conditions, they argue, the price of capital is always equalized by transferring capital through loans provided to companies by individuals .
Conclusion
In this term paper an attempt was made to reveal the true impact of the main sources of financial resources of the enterprise, the structure of financial resources. Since the topic chosen for the study is very “large”, it was not possible to reveal the whole essence of the stated issues, but nevertheless, certain conclusions can already be drawn from the study.
First, along with the main source of financial resources? cost of goods sold? there are many other sources. Among them, it is necessary to highlight the authorized capital, depreciation fund and investment loans.
Secondly, the correct choice of forms of financing by these sources is of great importance. Since with incorrect actions, the service that manages the financial policy and activities of the enterprise runs the risk of irrationally distributing these sources, and this, in turn, may well lead to a financial crisis in the enterprise or even bankruptcy of this enterprise.
Thirdly, paramount importance refers to the management of finances and sources of financial resources in the enterprise. Since it is the effective distribution and search for sources of financial resources that is the responsibility of financial services and employees of these services (financial managers in the first place).
As a result, we can say that the sources of financial resources are no less, and maybe even more important than the financial resources themselves, since it is they (the sources of financial resources) that underlie these financial resources.
Bibliography
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Application No. 1
Scheme 1. Financial resources of the enterprise.
Application No. 2
Table 1. The structure of the sources of financing of the enterprise.
|
Types of financing |
External funding |
Domestic funding |
|
Equity-based financing |
1. Funding based on contributions and equity participation (for example, issuing shares, attracting new shareholders) |
2. Financing from profit after tax (self-financing in the narrow sense) |
|
Debt financing |
3. Loan financing (for example, based on loans, loans, bank loans, supplier loans) |
4. Borrowed capital formed on the basis of income from sales - deductions to reserve funds (on pensions, to compensate for damage to nature by mining, to pay taxes) |
|
Mixed financing based on equity and debt capital |
5. Issuance of bonds that can be exchanged for shares, option loans, loans on the basis of granting the right to participate in profits, issuance of preferred shares |
6. Special positions containing part of the reserves (i.e. not yet taxable deductions) |
Application No. 3
Scheme 2. Structure of own capital.
External financial resources- this is a kind of enterprise resources, which is expressed in the form of attracted and borrowed capital.
The concept of financial resources of the enterprise
Entrepreneurial activity involves the management of finances, cash, through their contributions and expenses, in order to make a profit in the future. Accordingly, for this, a business entity needs to have capital, which can be formed due to invested resources of various origins.
The company's own budget is formed, first of all, thanks to the contributions of the participants. In the future, if the legal entity activity will be successful, the source of formation internal resources there will be income from such activities. Net profit is calculated from the amount of income and expenses, which include the costs of doing business and paying the necessary payments (taxes, credit obligations, etc.). In addition, the operating budget of the enterprise is expressed in depreciation charges.
External financial resources of the enterprise
Despite the fact that own funds can, to a certain extent, ensure the activity of an enterprise, it is impossible to imagine a business in modern conditions that is not supported by third-party resources and contributions. External sources of formation of financial resources include borrowed and borrowed funds. They form entrepreneurial and loan capital, respectively.
The first is expressed in the investment of the enterprise by third parties, legal or natural. Sometimes, entities with sufficient resources prefer financing an existing business instead of creating their own. In addition, investment in a particular enterprise may be carried out for the purpose of repurchasing shares and obtaining management rights.
Loan capital is transferred to a business entity only for a while, while the financial institution has its own benefit, expressed in the form of interest payments.
The ratio of entrepreneurial and loan capital
It is worth saying that in the current economic situation, the sources of formation of these types of capital may overlap. That is, the financial resources involved in the activities of the enterprise often themselves consist of credit funds. This is not always good, because the circulation of such resources is difficult, since banks and others financial institutions prefer to exercise tighter control over the funds issued on loans.
Essence of attracted capital
It should be noted that entrepreneurial capital forms both internal and external sources financial resources of the enterprise. Partially, these funds are used to create the necessary material funds that ensure the activities of business entities. The other part is authorized capital, which is formed by selling shares of the company. In fact, it is the attracted capital that is a help for the financial operations of the enterprise.
The essence of loan capital
These resources can be considered as a means of operational regulation economic activity. Since the company receives borrowed money only for a short period, this determines their liquidity and turnover rate. Loan capital can be formed with the help of credit loans from banks and non-bank entities, and by selling the company's bonds.
