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Company capital

Money capital

Equity capital is the total value of all funds of the enterprise that it owns. It includes the following main components:


  • authorized capital is the property basis of the company's functioning, i.e. initial capital formed at the time of its creation;

  • additional capital - various types of receipts in the company's equity capital;

  • reserve capital - the share of funds allocated from the profit to cover losses and losses;

  • retained earnings, which is the main source of accumulation of the company's property.

Debt capital - the total number of cash or other property values ​​attracted on a repayable basis to invest in the development of the company's activities. This includes bank and commercial loans, leasing, factoring, forfeiting, bond issuance and franchising.


Real capital

This form is understood to be material, i.e. natural, the personification of capital. Fixed capital includes buildings, tools, transport, equipment. It is erroneously attributed only to the fixed assets of the company, representing its significant share. Fixed capital is a broader concept, since it includes construction in progress and long-term investments. The company's working capital is aimed at ensuring a separate production cycle and paying salaries to employees. These are raw materials, finished goods, semi-finished products. The duration of the use of fixed capital is determined by a significant period (from 1 year to several tens of years). The consumption of working capital occurs to its full extent in one production cycle.


Capital structure of the company

This concept does not imply the structure and classification of assets, but the organization of ownership of capital, i.e. to whom and to what extent it belongs. The capital structure plays a fundamental role in making management decisions for the entire company. More here - https://en.wikipedia.org/wiki/Company


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