- Authorized capital Additional capital
- not distributed profits
- Reserve Equity
Shareholders' equity in the balance sheet is reflected in the balance sheet.By its very nature it is an investment potential of size and power.That is, with an increase in equity and there is this potential capacity.The structure of the equity and presented in the balance sheet of the enterprise.As it can be determined and the size of the authorized capital, additional, and also to establish the amount of profit not distributed, if any.Additional capital is presented in the balance sheet as a component of additional capital.
Analyzing the idea of equity in the balance sheet, it should be noted that equity in "Reserve capital" line shows the balance of the amount of profit not distributed, which is designed to target costs.This is due to the fact that such reserves should be created at the enterprise.Their purpose is different in nature use.It may be noted that the means of this
Analyze equity according to various criteria and parameters.For example, very often analyze the proportions of debt and equity capital structure of the organization to consider the financial stability.In the analysis of important basic criterion is that the greater the leverage in the capital structure, so the lower the level of financial stability of the enterprise.And, conversely, the more equity funds, assets, the company is more financially stable in the market and less financially dependent.
order to capital ratio was optimal, you need a combination of debt and equity, which would ensure a maximum valuation of all capital market.Analysis and search of such proportions - is the question and the problem of capital structure.The theory is based on a comparison of the costs of these two types of capital and, ultimately, find some combination of options.In the process of analysis and consideration, of course, the main document used by a Company balance sheet.In order to analyze the capital of the organization, analysis of balance sheet liabilities in its structure and relationships with total liabilities.
The significant part of the equity is equity.It is an integral part thereof.For the analysis of the financial condition of the enterprise it is often used.In particular, it is used to analyze the business activity of the enterprise.According to its meaning, the size of the authorized capital determines the minimum size of the property, which is a guarantee of satisfaction of creditors.The peculiarity of the authorized capital is that it can be formatted in a mutual fund, the statutory fund, as well as share capital.If you change the value of the share capital, then make changes to the statutory documents of the company.
Another significant part of their own capital is additional capital.It may be called to a certain extent and the added capital, or optional.The explanation for the emergence of additional capital is the fact that the size of charter capital should reflect the name of the original amount of capital, which is shown in the charter of the enterprise.To reflect the changes in the value of capital and needed additional capital that characterizes and reflects the changes in this aspect.If it were not to do so, in fact, all of the changes and would be shown and reflected in the charter capital of the enterprise.
Thus, an important indicator, which tells about the financial condition of the company and its level of development, the place it occupies in the market is the capital of which it is provided.Or it may be called equity capital of the enterprise, own proprietary database.However, apart from its own resources and often have to use borrowed funds.The important point is the price, costs associated with debt capital.Subject to the necessary requirements and conditions, even with the participation of borrowed capital, the company is financially stable and not dependent on someone else's capital.