Innovation and Sustainability

The article summarizes the main approaches to determining the essence of equity in accordance with the provisions and accounting standards of P(S)BO and the views of economists. It was determined that modern scientists analyze the economic essence of equity capital taking into account the fact that it is the main factor of production, characterizes the financial resources of the enterprise that bring profit, is used as the main source of the formation of the well-being of its owners, is the main indicator of the market value of the enterprise, its dynamics are important indicator of economic efficiency. It is substantiated that capital as a factor of production acts as the main resource of production and investment, a source of income, an object of management and ownership, purchase and sale, and obtaining profit, which includes risk and liquidity factors. Equity is the portion of a company's assets that remains after deducting its liabilities. The guarantor of the successful and profitable operation of the enterprise, its market competitiveness and financial stability is the situation when equity capital constitutes the main part of its financial resources. Proposals for improving the company's own capital management system are presented and the need for effective use of the company's own resources in conditions of limited resources is determined. Equity plays a fundamental role in the activity of a modern enterprise, which should be based on the use of borrowed capital, but its size is limited and smaller than the size of equity capital. If the company effectively uses borrowed funds, this will lead to an increase in the return on equity and its dynamic growth. However, there are also advantages of using debt capital over equity, which are reflected in the cost of using equity and debt capital, since interest on debt service reduces the basis for charging income tax. The effectiveness of the functioning of the “Fort” of the Ministry of Internal Affairs of Ukraine depends on the effective capital management strategy of the enterprise, an important component of which is the optimization of the capital structure

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