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Types of capital as indicators of the financial soundness of the enterprise
There is a great variety of classifications of capital, for example, it is divided into physical and human, permanent and variable, statutory, additional and reserve. But in the conditions of the market, types of capital have only two fundamental forms that determine the development of the main sectors of the economy. This is real and financial capital.
The types of capital of an enterprise can also be basic and circulating. The fixed capital includes tangible and intangible assets. It includes all fixed assets in the form of machinery and equipment, buildings and structures and other types, which are attributed to the cost of manufactured products in parts, they are called depreciation deductions. Intangible assets are the intellectual value of an enterprise, for example, the acquired technology or software, an invention backed by a patent, does not have a tangible form, but is of particular importance for the production and production process, therefore they are also assets and are included in the value of goods In the form of parts.
The working capital of an enterprise is a raw material base, materials and other types of material assets that are attributed to the value of goods in full, which is necessary for their production.
The capital of the enterprise can be expressed in monetary form. A certain part of the capital reflects the value of fixed and working capital, while the other part is in the form of retained earnings and funds in the account. It is at the expense of profits that other types of capital can be created, such as reserve or insurance.
Enterprises prefer to be financially independent, but some major investment projects for successful and timely implementation require significant additional capital. The indicator of the ratio of own and borrowed capital is financial leverage, it reflects the degree of financial dependence of the company.
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