Management of own capital

Own capital consists of funds owned by an economic entity advanced to the creation of net assets. The value of this capital is one of the most significant indicators of economic potential and efficiency of operations. Own funds are divided between circulating and non-current assets. Usually the total amount of these funds is greater than the amount of non-current assets.

The calculation of equity is carried out as the amount of statutory, reserve and additional capital, as well as funds held by the company. Own capital is organized from the day the company was founded with its subsequent build-up due to external and internal, borrowed and own sources of education funds. As the main source is the profit of the enterprise, except for it as a source can issue shares, accounts payable, various loans, the growth of sustainable liabilities. Management of own capital can be made only after a careful study of the effectiveness of this activity in the previous period. Here it is necessary to take into account not only the capital itself, but also its structural elements.

The management of own capital involves both ensuring the effective use of the part that has already been accumulated, and with the organization of its own financial resources intended to ensure the future development of the enterprise. During the formation of resources, they are classified by source, which can be internal and external.

In the first place, the main place is given to the profits remaining at the disposal of the enterprise itself, and it creates a predominant share of its own financing resources, which allows to ensure the growth of the capital itself, and, accordingly, the market value of the company. In the structure of internal sources, a certain role is assigned to depreciation charges, especially for enterprises with a high price of their own fixed assets and NMA. It should be noted that they do not make a larger amount of the organization's own capital, but only serve as a means of reinvesting it. Management of own capital is carried out taking into account that other internal sources do not have a significant role in shaping the resources of the organization.

If to speak about external sources of formation of own capital, then the main value has an additional share or share capital. One of such sources of creation of own capital for some companies can be the financial help, carried out on a gratuitous basis. Other external sources are tangible assets and NMA, which are included in the balance of the company.

Management of the company's own capital is carried out on the basis of managing the creation of own resources. In order to ensure the effectiveness of this process, a special policy is being developed, which is aimed at attracting own resources from different sources according to the needs of its development in the future period.

Management of the bank's own capital is carried out according to similar principles. The main tasks in this case are:

- Identification of an appropriate amount of capital;

- increase in the organization's capital due to the issuance of additional shares and retained earnings;

- determination of the most rational structure of shares that are only issued;

- determination of dividend policy and its implementation.

It turns out that the management of own capital is carried out according to a well-thought-out plan taking into account all the nuances of the current situation. Each company in this case requires a certain approach.