Assessing the efficiency of an enterprise based on an analysis of equity capital: practical aspects
Abstract. Effective management of the enterprise`s own capital plays a key role in ensuring its efficient functioning. In this article, different approaches to the evaluation of the efficiency of use of own capital on the basis of an integrated analysis of its structure, dynamics and profitability are considered. Research papers on the subject are studied, including methods of vertical, horizontal, coefficient and factor analysis. Special attention is given to the practical application of these methods on the example of LLC «Samara Meat Factory». In conclusion, conclusions and recommendations are provided for improving the management of the enterprise`s equity capital.
Keywords: equity, efficiency, analysis, profitability, capital structure, capital dynamics, ratio analysis, factor analysis, financial leverage, return on sales.
Highlights:
- analysis of an enterprise`s equity is a basis for assessing its effectiveness;
- an integrated approach to calculations covers analysis of the structure, dynamics and profitability of equity capital, as well as its factor analysis;
- the efficiency of using equity capital is determined by various factors, including return on sales, asset turnover and financial leverage.
Yulia I. Vaskova - Samara State University of Economics, Samara, Russia