Abstract
The article presents a simulation-dynamic model for calculating the financial leverage efficiency level. The model was developed on the basis of the system dynamics method using Powersim Studio tools. In the constructed model, the calculations were carried out on the example of PJSC «Koks», one of the largest Russian producers and exporters of metallurgical coke. The model was used as a tool to study the capital structure of the enterprise. As a result of the experiments, the level values of financial leverage efficiency, differential of financial leverage and financial leverage ratio were calculated. On the basis of the calculations, the conclusions were made about the quality of management of borrowed capital in the enterprise. In addition the assessment of the developed model of financial leverage efficiency was carried out; as a result of the assessment, both the model advantages and its disadvantages were indicated.
Highlights
On modern market conditions, covering the need for financial resources only from our own sources is a difficult task
The main ones include: tax rates on income tax, industry characteristics, cost of borrowed capital, enterprise scale
The effect of financial leverage is an increment in the return on equity that comes from using borrowed funds, provided that the economic return on the assets of a company is greater than the interest rate on the loan
Summary
On modern market conditions, covering the need for financial resources only from our own sources is a difficult task. The complexity of taking into account the influence of these factors predetermines the need to use instrumental methods of management, such as economic and mathematical modeling (EMM), which provide an increase in the effectiveness of decisions made to calculate the level of efficiency of financial leverage. One of such modern and widely used approaches today is simulation-dynamic modeling, the method of system dynamics [5, 6, 9, 10].
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