Evaluation of the effectiveness of leveraging capital of a telecommunication company

Tatyana Martynova,Yuriy Danilchenko,Oleslav Antamoshkin,Elena Vaitekunene,Dmitry Eremeev,N Akatov,K Antipyev

doi:10.1051/shsconf/202111600082

Tatyana Martynova, Yuriy Danilchenko + Show 5 more

Open Access

https://doi.org/10.1051/shsconf/202111600082

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Abstract

Any company, and especially an actively developing one, constantly feels the need to attract financial resources. Debt capital plays an important role for companies as an additional means for expanding and carrying out economic activities. Accordingly, effective management of borrowed capital is economically beneficial for the company, and the wrong approach to the formation of borrowed sources of the company can adversely affect its financial condition. The object of research in this article was PJSC “MegaFon”. A characteristic feature of this industry is the increased competition due to the aggressive policies of both telecom operators and companies that have entered this market from related industries. In the study, the process of forming borrowed funds by the company is presented in the form of five consecutive stages. The approbation of the proposed research scheme, using the example of PJSC “MegaFon”, showed the ambiguity of the financial decisions made to attract borrowed capital. And the main recommendation is to attract borrowed funds only for the development of the company.

Highlights

Borrowed capital arises at a certain stage of production development and is conditioned by socio-economic relations, when production reaches a level of development at which the organization does not have enough equity capital to support production and expand it [1,2,3].On the other hand, there are quite wealthy members of society and organizations who are willing to meet their personal needs, and to lend their capital for the purpose of productive use
Resource provision of the enterprise is a necessary condition for its development. It is the availability of financial resources that determines the possibility of forming debt capital in the company
We study the dynamics of total borrowing in the period under review; rate these dynamics are compared with the growth rate of the sum of own financial resources of the volumes of operational and investment activities, the total assets of the organization

Summary

Introduction

Borrowed capital arises at a certain stage of production development and is conditioned by socio-economic relations, when production reaches a level of development at which the organization does not have enough equity capital to support production and expand it [1,2,3]. Borrowed capital is a historical concept and, starting from the capitalist stage of historical development, has an objective nature It is formed under the influence of economic and social factors. Resource provision of the enterprise is a necessary condition for its development It is the availability of financial resources that determines the possibility of forming debt capital in the company. Borrowed capital as a financial category expresses economic relations inherent only to it, mediated by a certain amount of funds transferred for temporary use by one economic entity to another. In this capacity, the borrowed capital represents the unity of the economic relationship and its form (monetary, tangible or intangible). Effective management of borrowed capital is economically beneficial for the company, and the wrong approach to the formation of borrowed sources of the company can adversely affect its financial condition [7,8,9]

Materials and Methods

Results and Discussion

Conclusions