EXPRESS DIAGNOSTICS OF BORROWED CAPITAL MAN-AGEMENT (USING THE EXAMPLE OF MECHANICAL ENGINEER-ING ENTERPRISES OF THE NIZHNI NOVGOROD REGION)
One of the most important tasks of managing the capital of the organiza-tion is to maximize the level of return on equity at a certain level of financial risk. The mechanism for solving this problem is to calculate the efficiency of borrowed capital, which is determined by an indicator called the “effect of fi-nancial leverage”. The proposed rapid diagnosis allows evaluating the efficien-cy of borrowed capital management. The enterprises of the Nizhny Novgorod region and their borrowed funds were analyzed. It is shown that in parallel with the calculation of the effect of financial leverage, it is necessary to calcu-late the financial risk.
Keywords: borrowed capital management, borrowed funds, effect of fi-nancial leverage, ratio of financial leverage, financial risk.
Highlights:
the calculation of the effect of financial leverage can be considered as an ex-press methodology for diagnosing the efficiency of borrowed capital man-agement;
this technique was applied to 16 enterprises of the Nizhny Novgorod re-gion (the industry - mechanical engineering);
half of the studied enterprises do not use paid borrowed capital, about 30% have a competent borrowing policy, the rest are recommended to make changes in the management of borrowed funds.
Julia A. Mavricheva, Candidate of Physical and Mathematical Sciences, Asso-ciate Professor; Sergey V. Bogomolov, Candidate of Economics, Associate Professor - Lobachevsky State University of Nizhny Novgorod.