Formation of own capital and its importance in the financial activity of the business entity

Abstract

Introduction. The article is devoted to the study of theoretical and methodological aspects of equity analysis in the financial activities of the business entity, analysis of the current state of business entities and development prospects and developed areas for improving the formation of equity of business entities in Ukraine.

The content and features of formation of the own capital of the enterprise are considered in the work, the description of methods of the quantitative analysis of its modern activity is given, methods of the qualitative analysis of prospects of its development are investigated.

Purpose. Research of theoretical and methodological aspects of the analysis of own capital in the financial activity of the business entity, analysis of the environment and results of economic activity and developed directions for improving the analytical support of the business entity in modern conditions.

Method (methodology). The solution of the set tasks is carried out by means of methods of the system analysis, logical generalization, the comparative analysis and the analysis of coefficients, expert estimations, tabular and graphic methods..

Results. The method of equity analysis is proposed, according to which analytical procedures will be conducted in five stages: preparation for equity analysis; analysis of the share of equity in the structure of the business entity and its dynamics; analysis of the structure and composition of equity; analysis of the efficiency of the entity's use of equity; generalization of the results of the analysis for the management of the enterprise.