EVALUATION METHODOLOGY OF THE EFFICIENCY OF USING BORROWED CAPITAL OF THE ENTERPRISE

Анотація

The article examines methodological approaches to assessing the effectiveness of the use of borrowed capital of enterprises. It has been proved that an enterprise that focuses only on the use of its own capital significantly narrows the possibilities for increasing its profitability, being unable to quickly and on a large scale increase production volumes. It is substantiated that the use of borrowed capital provides enterprises with certain advantages, such as a reduction in the tax base, a reduction in payments to the budget. An enterprise can derive additional benefit from the use of borrowed capital during a period of rising inflation. It is shown that the general methodological approach to assessing the effectiveness of managing the loan capital of enterprises involves determining its state, security and efficiency of use. The factors influencing the effectiveness of the use of the general, own and borrowed capital of the enterprise are investigated. It is proved that one of the indicators used to assess the efficiency of the use of loan capital is the effect of financial leverage. It is shown that the attraction of loan capital will be effective when the growth rate of the enterprise's profit will outpace the growth rate of the total assets, that is, the return on assets will increase. The influence of various factors on the level of financial leverage and the overall stability of the enterprise is analyzed. A multiplicative model for evaluating the effectiveness of the use of borrowed capital of an enterprise has been developed and proposed, taking into account the following processes: ensuring the constancy of the development of an enterprise when using borrowed capital, determining the efficiency of attracting borrowed capital and the effectiveness of using borrowed capital. The resulting indicator of the efficiency of the use of loan capital is the return on loan capital. To manage the efficiency of the use of borrowed funds, a model is proposed, where the object of influence is the leverage of the financial lever, the change of which affects the profitability of both the borrowed and the total capital of the enterprise.

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