Equity is the monetary value of the property of the enterprise. The capital structure of an enterprise is considered in the process of analyzing the level of the company's solvency. In this case, among other indicators, the equity capital ratio is calculated.
It is necessary
- - the balance sheet of the enterprise for the analyzed period;
- - the formula for calculating the equity ratio:
- Ksk = Ks / K, where:
- - Кс - equity capital of the enterprise, thousand rubles,
- - K - assets of the enterprise, thousand rubles.
Instructions
Step 1
Determine the amount of the company's equity capital (Kc). This can be done by taking the total amount on the line of section III "Capital and reserves" of the balance sheet at the end of the reporting period. As can be seen from the structure of the balance sheet, the equity capital of the enterprise includes the authorized and additional capital, reserves and retained earnings.
Step 2
Determine the value of the assets of the enterprise (K). The value of the company's assets is the total amount (currency) of the balance sheet at the end of the analyzed period. Calculate the coefficient of equity capital Ksk according to the specified formula, dividing the amount of the company's equity capital (Kc) by the value of its assets (K) at the end of the reporting period.
Step 3
Analyze the results obtained by calculating the equity ratios of the enterprise for the same period last year, for the previous reporting periods. Review the dynamics of changes in the ratio, draw the necessary conclusions. If necessary, calculate other indicators characterizing the capital structure and the level of solvency of the enterprise (ratio of debt to equity capital, coverage ratio, recovery of solvency, etc.).
