The process of optimizing the structure of assets and liabilities of an enterprise in order to increase profits in financial analysis is called leverage.

There are three types of leverage: production, financial and production-financial. In the literal sense, "leverage" is a lever, with a little effort which can significantly change the results of the production and financial activities of the enterprise.

To reveal its essence, we present the factor model of net profit (NP) as the difference between revenue (B) and production costs (IP) and financial nature (FI):

PE=V-IP-IF

Production costs are the costs of production and sale of products (full cost). Depending on the volume of production, they are divided into fixed and variable. The ratio between these parts of the costs depends on the technical and technological strategy of the enterprise and its investment policy. Capital investment in fixed assets causes an increase in fixed costs and a relative reduction in variable costs. The relationship between the volume of production, fixed and variable costs is expressed by the indicator of production leverage (operating leverage).

By definition, V.V. Kovalev, industrial leverage is a potential opportunity to influence the profit of an enterprise by changing the structure of the cost of production and the volume of its output. The level of production leverage is calculated as the ratio of the growth rate of gross profit (∆P%) (before interest and taxes) to the growth rate of sales volume in physical, conditionally natural units or in value terms (∆VRP%):

Kp.l = (∆P%) / (∆VRP%)

It shows the degree of sensitivity of gross profit to changes in the volume of production. With its high value, even a slight decline or increase in production leads to a significant change in profit. A higher level of production leverage usually has enterprises with a higher level of technical equipment of production. With an increase in the level of technical equipment, an increase in the share fixed costs and the level of production leverage. With the growth of the latter, the degree of risk of shortfall in revenue required to reimburse fixed costs increases. You can verify this with the following example:

The table shows that the enterprise with the highest ratio of fixed costs to variables has the highest value of production leverage. Each percentage increase in output under the current cost structure ensures an increase in gross profit at the first enterprise of 3%, at the second - 4.125%, at the third - 6%. Accordingly, with a decline in production, profit at the third enterprise will decrease 2 times faster than at the first. Therefore, at the third enterprise more high degree production risk. Graphically, this can be represented as follows:

On the abscissa axis, the volume of production is plotted on an appropriate scale, and on the ordinate axis, the increase in profit (in percent). The point of intersection with the abscissa axis (the so-called "dead point", or equilibrium point, or break-even sales volume) shows how much each company needs to produce and sell products in order to reimburse fixed costs. It is calculated by dividing the sum of fixed costs by the difference between the price of the product and specific variable costs. Under the current structure, the break-even volume for the first enterprise is 2000, for the second - 2273, for the third - 2500. The greater the value of this indicator and the angle of the graph to the abscissa, the higher the degree of production risk.

The second component of the formula PE=V-IP-IF- financial costs (debt servicing costs). Their value depends on the amount of borrowed funds and their share in the total amount of invested capital. As already noted, an increase in the leverage of financial leverage (the ratio of debt and equity capital) can lead to both an increase and a decrease in net profit.

The relationship between profit and the ratio of own and borrowed capital is what financial leverage is. By definition, V.V. Kovaleva, financial leverage is a potential opportunity to influence the profit of an enterprise by changing the volume and structure of equity and borrowed capital. Its level is measured by the ratio of the growth rate of net profit (∆NP%) to the growth rate of gross profit (∆P%):

Kf.l \u003d (∆CHP% / ∆P%)

It shows how many times the growth rate of net profit exceeds the growth rate of gross profit. This excess is ensured by the effect of financial leverage, one of the components of which is its leverage (the ratio of borrowed capital to equity capital). By increasing or decreasing the leverage, depending on the prevailing conditions, you can influence the profit and return on equity.

An increase in financial leverage is accompanied by an increase in the degree financial risk associated with a possible lack of funds to pay interest on loans and borrowings. A slight change in gross profit and return on invested capital in an environment of high financial leverage can lead to a significant change in net income, which is dangerous during a decline in production.

Let's carry out a comparative analysis of financial risk with different capital structure. According to the table below, we calculate how the return on equity will change with a deviation of profit from basic level on 10%:

If an enterprise finances its activities only from its own funds, the financial leverage ratio is equal to 1, i.e. there is no leverage effect. In this situation, a change in gross profit by one percent leads to the same increase or decrease in net profit. It is easy to see that with an increase in the share of borrowed capital, the range of variation in the return on equity (RCC), the financial leverage ratio and net profit increases. This indicates an increase in the degree of financial risk of investing with a high leverage. Graphically, this dependence is shown in the figure below:

The abscissa shows the value of gross profit on an appropriate scale, and the ordinate shows the return on equity as a percentage. The point of intersection with the x-axis is called the financial critical point, which shows the minimum amount of profit required to cover the financial costs of servicing loans. At the same time, it also reflects the degree of financial risk. The degree of risk is also characterized by the steep slope of the graph to the x-axis.

The general indicator is production and financial leverage- the product of the levels of production and financial leverage. It reflects the general risk associated with a possible lack of funds to recover production costs and financial costs servicing external debt.

For example, the increase in sales is 20%, gross profit - 60%, net profit - 75%:

Kp.l= 60/20=3, Kf.l=75/60=1.25, Kp-f.l=3x 1.25=3.75

Based on these data, we can conclude that with the current cost structure at the enterprise and the structure of capital sources, an increase in production by 1% will ensure an increase in gross profit by 3% and an increase in net profit by 3.75%. Each percentage increase in gross profit will result in a 1.25% increase in net profit. In the same proportion, these indicators will change with a decline in production. Using them, it is possible to evaluate and predict the degree of production and financial investment risk.

The relationship between profit and the valuation of the costs of assets or funds incurred to obtain this profit is characterized by the indicator "leverage"(lever arm). This is a certain factor, a small change in which can lead to a significant change in a number of performance indicators.

Production (operating) leverage quantitatively characterized by the ratio between fixed and variable costs in their total amount and the variability of the indicator "profit before taxes". It is this profit indicator that makes it possible to isolate and evaluate the impact of operating leverage on financial results firm's activities.

The level of production leverage is calculated by the formula:

where FС - fixed costs in monetary units;

VC - total variable costs in monetary units.

z - specific variable costs per unit of production;

Q is the sales volume in real terms.

The concept of operating leverage is related to the effect of operating leverage. It is due to the fact that any change in sales revenue leads to a greater change in profits, obtained due to the stabilization of fixed costs for the entire volume of production.

The effect of production leverage is calculated by the formula:

, where

P- profit of the enterprise for the reporting period;

R- the company's revenue for the period;

R- selling price of a unit of production;

cont– the value of the contribution;

If the share of fixed costs is high, the company is said to have a high level of operating leverage. For such a company, even a slight change in production volumes can lead to a significant change in profits, since the company has to bear fixed costs in any case, whether products are produced or not. Thus, the variability in earnings before interest and taxes due to changes in operating leverage quantifies production risk. The higher the level of operating leverage, the higher the company's production risk.

However, consider that high proportion fixed costs in the cost structure of the enterprise is a negative factor, it is impossible. An increase in production leverage may indicate an increase in the production capacity of the enterprise, technical re-equipment, an increase in labor productivity, as well as the implementation of research and development projects. All these factors, which are undoubtedly positive, are manifested in an increase in fixed costs and lead to an increase in the effect of production leverage.

Production leverage effect manifests itself in the fact that with an increase in the company's revenue, the profit also changes, and the higher the level of production leverage, the stronger this effect,

An analysis of the values ​​of fixed and variable costs of an enterprise allows you to identify the level of risk, which is necessary step planning and making managerial decisions.

So, the level of production leverage that has developed in the company is a characteristic of the potential opportunity to influence profit before interest and taxes by changing the cost structure and output volume.

Financial leverage

Quantitatively, this characteristic is measured by the ratio between borrowed and own capital; the level of financial leverage directly proportionally affects the degree of financial risk of the company and the rate of return required by shareholders. The higher the amount of interest payable, which, by the way, is a permanent obligatory expense, the less net profit. Thus, the higher the level of financial leverage, the higher the financial risk of the company.

The level of financial leverage of a company is calculated by the formula:

where ZK- borrowed capital;

SC- equity.

A company that has a significant share of debt capital is called a company with a high level of financial leverage, or a financially dependent company. ; a company that finances its activities only from its own funds is called financially independent .

The costs of servicing loans are fixed, since they are obligatory for the enterprise to pay, regardless of the level of production and sales of products. It is obvious that if the market situation develops unsuccessfully and the company's revenue turns out to be low, then an enterprise with a higher level of financial leverage (and, accordingly, with high financial costs) will lose financial stability much earlier and become unprofitable than an enterprise that preferred to finance its activities from its own resources. sources and thus retained a low level of financial dependence on external creditors. Therefore, a high level of financial leverage is a reflection of the high risk inherent in this enterprise.

So, the level of financial leverage that has developed in the company is a characteristic of the potential opportunity to influence net profit commercial organization by changing the volume and structure of long-term liabilities.

The current activity of any company in the implementation of a specific investment project is associated not only with production (operational), but also with financial risk. The latter is determined primarily by the structure of its sources. financial resources and, in particular, their ratio on the basis of own or borrowed capital. The situation when a company for the implementation of a specific investment project is not limited to its own capital, but attracts funds from external investors, is quite natural.

By raising borrowed funds, the investment project manager is able to control larger cash flows and, therefore, implement larger investment projects. At the same time, it should be clear to all borrowers that there are certain limits debt financing in general and investment projects in particular. These limits are mainly determined by the increase in costs and risks associated with attracting borrowed capital, as well as a decrease in the company's creditworthiness in this case.

What should be the optimal ratio between own and borrowed long-term assets when implementing a specific investment project? financial resources And how will it affect the profit of the company? The answer to this question can be obtained using the category of financial leverage, financial leverage, the strength of which is determined precisely by the share of borrowed capital in the total capital of the company.

Financial leverage - potential opportunity to influence the net profit of an investment project (company) by changing the volume and structure of long-term liabilities; by varying the ratio of own and borrowed funds in order to optimize interest payments.

The issue of the advisability of using borrowed capital is directly related to the effect of financial leverage: an increase in the share of borrowed funds can increase the return on equity.

Quite convincingly and clearly the effect of financial leverage can be demonstrated using the famous DuPont formula. (Dupont,) widely used in international financial management to assess the level of return on equity of a company (Return on equity , ROE):

where is the profitability ratio of sales; – asset turnover ratio; (Return on assets) is the rate of return on assets; IL- financial leverage.

It follows from this formula that the rate of return on capital ( ROE) will depend on the amount of financial leverage determined by the ratio of the company's own and borrowed funds. It is obvious, however, that with an increase in financial leverage, the return on capital rises only if the return on assets ( ROA) will exceed the interest rate on borrowed funds. Although this statement is understandable and on a purely intuitive level, we will try to formalize the relationship between financial leverage and return on assets by answering the question under what conditions the impact of financial leverage on ROE turns out to be positive?

For this we introduce the following notation:

N1 - net profit; GI - earnings before interest and taxes (balance sheet income - EBIT); E - equity; D - borrowed capital; j – interest rate on capital; t- tax rate.

Or, taking into account that the quantity is the so-called operating room (production ) profitability , can be written

where is the adjusted interest rate on capital for

after paying taxes.

The resulting expression ROE is very meaningful, as it clearly shows that the impact of financial leverage, the strength of which is determined by the ratio D to E depends on the ratio of two quantities r and i.

If the operating rate of return on assets exceeds the adjusted rate of interest on debt capital, the company receives a return on its invested capital in excess of the amount it must pay creditors. This creates an excess of funds that is distributed among the shareholders of the company, and, therefore, increases the rate of return on capital. (ROE). If the operating return on assets is less than the adjusted borrowing rate, then the company is better off not borrowing these funds.

An illustration of the influence of the interest rate level on the return on equity of a company in terms of financial leverage is given in Table. 6.14.

Table 6.14

The impact of the interest rate onROE

Investment project indicators	Investment projects
	BUT		B
	Annual interest rate		Annual interest rate
Amount of assets, thousand dollars
Equity capital, thousand dollars
Borrowed capital, thousand dollars
Earnings before interest and taxes ( GI ), thousand dollars
Return on assets ( ROA ), %
Interest expenses, thousand USD
Taxable income (G/), thousand dollars
Taxes (t = 40%), thousand dollars
Net profit (LU), thousand dollars
Return on equity ratio (ROE) %

In the effect of financial leverage, as follows from the above, two components can be distinguished.

Differential – the difference between the operating profitability of assets and the adjusted (by the value of the income tax rate) interest rate on borrowed funds.

Shoulder financial leverage, determined by the ratio between debt and equity capital.

It is obvious that between these components there is an inextricable, but at the same time contradictory relationship. With an increase in the amount of borrowed funds, on the one hand, the leverage of the financial leverage increases, and on the other hand, as a rule, the differential decreases, since lenders tend to compensate for the increase in their financial risk by increasing the price of their "commodity" - loan rates. In particular, there may come a time when the differential becomes negative. In this case, the effect of financial leverage will lead to very negative consequences for the company implementing the corresponding investment project.

Thus, a reasonable financial manager will not increase the leverage of financial leverage at any cost, but will regulate it depending, firstly, on the differential and, secondly, on the predicted market conditions.

The method of assessing the financial leverage considered above, while remaining the most well-known and used, is at the same time not the only one. For example, in an American school financial management A widely used approach involves comparing the rate of change in net income (GM) with the rate of change in earnings before interest and taxes ( TGI ). In this case, the level of financial leverage (LG) can be calculated by the formula

This formula answers the question of how many percent net income will change if there is a change of one percent in earnings before interest and taxes. Denoting - interest on loans and borrowings, a t is the average tax rate, we modify this formula into a more computationally convenient form

Thus, the coefficient FL receives another interesting interpretation - it shows how many times the income before interest and taxes exceeds taxable income (67 - ). The lower limit of the financial leverage coefficient is one. The larger the relative amount of borrowed funds attracted by the company, the greater the amount of interest paid on them (), the higher the level of financial leverage, the more variable net profit, which, all other things being equal, leads to greater financial instability, expressed in a certain unpredictability of net profit. Since the payment of interest, unlike, for example, the payment of dividends, is mandatory, then with a relatively high level of financial leverage, even a slight decrease in profits can have very negative consequences compared to a situation where the level of financial leverage is low.

Production and financial leverage

The considered production and financial leverage can be generalized by the category of production and financial leverage, which describes the relationship between revenue, production and financial costs, and net profit.

As a reminder, operating leverage measures the percentage change in earnings before interest and taxes for each percentage change in sales. And the leverage ratio measures the percentage change in net income for each percentage change in earnings before interest and taxes. Since both of these measures are related to percentage changes in earnings before interest and taxes, we can combine them to measure total leverage.

Total leverage ratio ( TL) is the ratio of the percentage change in net profit to the unit percentage change in sales

If we multiply and divide the right side of this equation by the percentage change in earnings before interest and taxes ( TG1 ), then we can express the total leverage in terms of operating leverage ( OL ) and financial (FL) leverage

The relationship between indicators of operational and financial leverage for a certain conditional company, dollars, is given below:

The economic interpretation of the leverage indicators calculated above is as follows: given the structure of sources of funds and conditions of production and financial activities that have developed in the company:

• a 10% increase in output would result in a 16% increase in earnings before interest and taxes;
• a 16% increase in earnings before interest and taxes would result in a 26.7% increase in net income;
• a 10% increase in production will result in a 26.7% increase in the company's net profit.

Practical actions to manage the level of leverage are not amenable to rigid formalization and depend on a significant number of factors: sales stability, the degree of saturation of the market with relevant products, the availability of reserve debt capital, the pace of company development, the current structure of assets and liabilities, the tax policy of the state in relation to investment activities, the current and the prospective situation in the stock markets, etc.

The process of optimizing the structure of assets and liabilities of an enterprise in order to increase profits in financial analysis is called leverage. There are three types of it: production, financial and production-financial. In the literal sense, leverage is understood as a lever, with a little effort which can significantly change the results of the production and financial activities of an enterprise.

To reveal its essence, we present a factorial model of net profit ( state of emergency) as the difference between revenue ( VR) and production costs ( IP) and financial nature IF):

state of emergency = VR-IP-IF (157)

Production costs are the costs of production and sale of products (full cost). Depending on the volume of production, they are divided into fixed and variable. The ratio between these parts of the costs depends on the technical and technological strategy of the enterprise and its investment policy. Investing capital in fixed assets causes an increase in fixed costs and a relative reduction in variable costs. The relationship between the volume of production, fixed and variable costs is expressed by the indicator of production leverage.

By definition Kovalev V.V. production leverage - this is a potential opportunity to influence the profit of the enterprise by changing the structure of the cost of production and the volume of its output.

The level of production leverage is calculated as the ratio of the growth rate of gross profit П% (before interest and taxes) to the growth rate of sales volume in natural or nominal units (VRP%).

It shows the degree of sensitivity of gross profit to changes in the volume of production. With its high value, even a slight decline or increase in production leads to a significant change in profit. A higher level of production leverage usually has enterprises with a higher level of technical equipment of production. With an increase in the level of technical equipment, there is an increase in the share of fixed costs and the level of production leverage. With the growth of the latter, the degree of risk of shortfall in revenue required to reimburse fixed costs increases. You can verify this with the following example:

Product price, thousand rubles
The cost of the product, thousand rubles.
Specific variable costs, thousand rubles
The amount of fixed costs, million rubles
Break-even sales volume, pcs.
Volume of production, pcs.:
option 1
option 2
Production increase, %
Revenue, million rubles:
option 1
option 2
Amount of expenses, million rubles:
option 1
option 2
Profit, million rubles:
option 1
option 2
Gross profit growth, %
Operating leverage ratio

The given data show that the enterprise with the highest ratio of fixed costs to variables has the highest value of the production leverage ratio. Each percentage increase in output under the current cost structure provides an increase in gross profit at the first enterprise - 3%, at the second - 4.26%, at the third - 6%. Accordingly, with a decline in production, the profit of the third enterprise will decrease twice as fast as that of the first. Consequently, the third enterprise has a higher degree of production risk .

Graphically, this relationship can be depicted as follows (Fig. 11). On the abscissa axis, the volume of production is plotted on an appropriate scale, and on the ordinate axis, the increase in profit (in percent). The point of intersection with the axis (the so-called "dead point" or equilibrium point or break-even sales volume) shows how much each company needs to produce and sell products in order to reimburse fixed costs. It is calculated by dividing the sum of fixed costs by the difference between the price of the product and specific variable costs. Under the current structure, the breakeven volume for the first enterprise is 2000, and for the second - 2273, for the third - 2500. The larger the value of this indicator and the slope of the graph to the x-axis, the higher the degree of production risk.

Rice. 11. Dependence of production leverage

from the cost structure of the enterprise

The second component of formula (157) is financial costs (debt servicing costs). Their value depends on the amount of borrowed funds and their share in the total amount of invested capital. As already noted, an increase in the leverage of financial leverage (the ratio of debt and equity capital) can lead to both an increase and a decrease in net profit.

The relationship between profit and the ratio of equity and debt capital - this is financial leverage. According to V. V. Kovalev, financial leverage is a potential opportunity to influence profit by changing the volume and structure of equity and borrowed capital. Its level is measured by the ratio of net profit growth rates (  PE%) : to the growth rate of gross profit (  P%):

Cfl = PE% / P% (159)

It shows how many times the growth rate of net profit exceeds the growth rate of gross profit. This excess, as can be seen from the previous paragraph, is ensured by the effect of financial leverage, one of the components of which is its leverage (the ratio of borrowed capital to equity). By increasing or decreasing the leverage, depending on the prevailing conditions, you can influence the profit and return on equity.

The increase in financial leverage is accompanied by an increase in the degree of financial risk associated with a possible lack of funds to pay interest on long-term loans and borrowings. A slight change in gross profit and return on invested capital in an environment of high financial leverage can lead to a significant change in net income, which is dangerous during a decline in production.

Let's carry out a comparative analysis of financial risk with different capital structure. Let's calculate how the return on equity will change if the profit deviates from the baseline by 10%.

Total amount of capital
Share of borrowed capital, %
Gross profit
Interest paid
Tax (30%)
Net profit
RAC range, %

The given data show that if an enterprise finances its activities only from its own funds, the financial leverage ratio is equal to 1, i.e. there is no leverage effect. In this situation, a 1% change in gross profit results in the same increase or decrease in net profit. It is easy to see that with an increase in the share of borrowed capital, the range of variation in the return on equity (RCC), the financial leverage ratio and net profit increases. This indicates an increase in the degree of financial risk of investing with a high leverage. Graphically, this dependence can be shown as follows (Fig. 12).

P, million rubles

50 75 100 150 200

Fig.12. Dependence of return on equity and financial leverage on capital structure

The abscissa shows the value of gross profit on the appropriate scale, and the ordinate shows the return on equity in percent. The point of intersection with the abscissa is called the financial critical point, which shows the minimum amount of profit required to cover the financial costs of servicing loans. At the same time, it also reflects the degree of financial risk . The degree of risk is also characterized by the steep slope of the graph to the x-axis.

The general indicator is production and financial leverage, which represents the product of the levels of production and financial leverage. It reflects the overall risk associated with a possible lack of funds to recover production costs and financial costs of servicing external debt.

For example, the increase in sales is 20%, gross profit - 60%, net profit - 75%.

Kp.l \u003d 60 / 20 \u003d 3; Kf.l \u003d 75 / 60 \u003d 125; Kp-f.l \u003d 3 1.25 \u003d 3.75. Based on these data, we can conclude that with the current cost structure at the enterprise and the structure of capital sources, an increase in production by 1% will ensure an increase in gross profit by 3% and an increase in net profit by 3.75%. Each percentage increase in gross profit will result in a 1.25% increase in net profit. In the same proportion, these indicators will change with a decline in production. Using these data, it is possible to evaluate and predict the degree of production and financial investment risk.

Leverage - means the action of a small force (lever), with which you can move fairly heavy objects.

Operating leverage.

Operating (production) leverage is the ratio of the relationship between the structure of production costs and the amount of profit before interest and taxes. This operating profit management mechanism is also called "operating leverage". The operation of this mechanism is based on the fact that the presence in the composition of operating costs of any amount of their constant types leads to the fact that when the volume of sales of products changes, the amount of operating profit always changes even faster. In other words, fixed operating costs (costs), by the very fact of their existence, cause a disproportionately higher change in the amount of the operating profit of the enterprise with any change in the volume of sales of products, regardless of the size of the enterprise, industry specifics of its operating activities and other factors.

However, the degree of such sensitivity of operating profit to changes in the volume of product sales is ambiguous at enterprises with a different ratio of fixed and variable operating costs. The higher the share of fixed costs in the total operating costs of the enterprise, the more the amount of operating profit changes in relation to the rate of change in the volume of sales.

The ratio of fixed and variable operating costs of the enterprise, which means the level of production leverage is characterized by "operational leverage ratio", which is calculated using the following formula:

Where:
Number - operating leverage ratio;

Ipost - the amount of fixed operating costs;

Io - the total amount of transaction costs.

The higher the value of the operating leverage ratio at the enterprise, the more it is able to accelerate the growth rate of operating profit in relation to the growth rate of sales volume. Those. at the same rate of growth in sales volume, an enterprise with a higher operating leverage ratio, ceteris paribus, will always increase the amount of its operating profit to a greater extent compared to an enterprise with a lower value of this ratio.

The specific ratio of the increase in the amount of operating profit and the amount of sales volume, achieved at a certain operating leverage ratio, is characterized by the indicator "operational leverage effect". The principal formula for calculating this indicator is:

Eol - the effect of operating leverage, achieved at a specific value of its coefficient at the enterprise;

ΔVOP - growth rate of gross operating profit, in %;

ΔOR - growth rate of sales volume, in%.

The effect of the impact of the production leverage (operating leverage) is a change in sales proceeds leading to a change in profit

The growth rate of the volume expressed in% is determined by the formula:

I - change, meaning the growth rate, in%;
P.1 – volume indicator obtained in the 1st period, in rubles;

P.2 - volume indicator obtained in the 2nd period, in rubles.

financial leverage.

Financial leverage is the relationship between the structure of sources of funds and the amount of net profit.

financial leverage characterizes the use of borrowed funds by the enterprise, which affects the change in the return on equity. Financial leverage arises with the advent of borrowed funds in the amount of capital used by the enterprise and allows the enterprise to receive additional profit on equity.

An indicator that reflects the level of additional return on equity with a different share of the use of borrowed funds is called the effect of financial leverage (financial leverage).

The effect of financial leverage is calculated by the formula:

EFL - the effect of financial leverage, which consists in the increase in the return on equity ratio,%;

C - income tax rate, expressed as a decimal fraction;

KVR - gross return on assets (the ratio of gross profit to the average asset value), %;

PC - the average amount of interest on a loan paid by an enterprise for the use of borrowed capital (the price of borrowed capital), %;

ZK - the amount of borrowed capital used by the enterprise;

SC - the amount of equity capital of the enterprise.

The formula has three components.

1. Tax corrector of financial leverage (1 - C).

2. Differential financial leverage (KVR - PC).

3. Coefficient of financial leverage or "shoulder" of financial leverage (LC / SC).

Using the effect of financial leverage allows you to increase the level of profitability of the company's own capital. When choosing the most appropriate structure of sources, it is necessary to take into account the scale of current income and profit when expanding activities through additional investment, capital market conditions, interest rate dynamics and other factors.

dividend policy.

The term "dividend policy" is associated with the distribution of profits in joint-stock companies.

Dividend - part of the profit of a joint-stock company, annually distributed among shareholders in accordance with the number (amount) and type of shares they own. Typically, a dividend is expressed as a dollar amount per share. The total amount of net profit payable as a dividend is set after taxes, deductions to the funds for expansion and modernization of production, replenishment of insurance and other reserves, payment of interest on bonds and additional rewards directors of a joint stock company.

Dividend policy - the policy of a joint-stock company in the field of profit use. The dividend policy is formed by the board of directors depending on the goals of the joint-stock company, and determines the shares of profit that: are paid to shareholders in the form of dividends; remain in the form of retained earnings and are also reinvested.

The main goal of developing a dividend policy is to establish the necessary proportionality between the current consumption of profit by the owners and its future growth, maximizing the market value of the enterprise and ensuring its strategic development.

Based on this goal, the concept of a dividend policy can be formulated as follows: a dividend policy is constituent part a general policy of profit management, which consists in optimizing the proportions between its consumed and capitalized parts in order to maximize the market value of the enterprise.

The following factors influence the size of the dividend:

The amount of net profit;

The possibility of directing profits to pay dividends, taking into account other costs;

The share of preferred shares and the fixed level of dividends declared on them;

Value authorized capital and the total number of shares.

Net profit that can be directed to the payment of dividends is determined by the formulas:

NPdoa \u003d (CHP × Dchp / 100) - (Kpa × Dpa / 100)

NPDOA - net profit directed to the payment of dividends on ordinary shares;

PE - net profit;

DPP - the share of net profit directed to the payment of dividends on preferred shares;

Kpa - the nominal value of the number of preferred shares;

Dpa - the level of dividends on preferred shares (as a percentage of the nominal value).

Doa \u003d (NPd / (Ka - Kpa)) × 100

Doa - the level of dividends on ordinary shares;

NPI - net profit directed to the payment of dividends on shares;

Ka - the nominal value of the number of all shares;

Kpa - the nominal value of the number of preferred shares.

Factors influencing the development of a dividend policy:

Legal factors (the payment of dividends is regulated by the Law of the Russian Federation "On Joint Stock Companies");

Conditions of contracts (restrictions related to the minimum share of reinvested profits when concluding loan agreements with banks);

Liquidity (payment not only in cash, but also in other property, such as shares);

Expansion of production (restrictions on the payment of dividends);

Interests of shareholders (securing high level market value of the company);

Information effect (information about non-payment of dividends may lead to a decrease in share prices).

Dividend policy directly depends on the chosen dividend payment methodology, reflected in various types of dividend policy (table).

Table

Similar information.