Abstract: in the modern world, the most pressing issue is the investment of free funds in order to generate income. There are many ways to invest, but the most profitable, though the most risky way is to invest in corporate securities.
In order to understand how stable an organization is in financial terms, how independent, competitive and successful it is in the market, managers of this company first analyze the structure of their own sources of funding.
When analyzing the structure of own sources of funding, you should pay attention to the following points:
- Structure of section III of the balance sheet “Capital and reserves”;
- The various factors of financial stability;
- Some indicators of the organization’s liquidity and solvency;
- Investment indicators;
- Indicators of the company’s financial policy;
- Indicators of return on equity;
- The effect of financial leverage;
- Share of net cash flow from current activities in revenue;
- Some price multipliers.
Own sources are analyzed according to the form № 1 of the accounting statements, which are presented in section III “Capital and reserves”. It is worth noting that this reporting form is universal and applicable for analyzing any balance sheet items.
Keywords: financial resources; sources of financing; financial management; profit; company capital