Management Influence Of Working Capital On Equity Capital Formation Of Agricultural Organizations

Abstract

In unstable economic conditions the equity capital, profitability, and improvement of stability and competitiveness indicate the success of agricultural organizations. Efficient management of working capital, rational use of material and financial resources, and risk mitigation against unproductive agricultural losses are considered the factors of equity capital formation. To assess the management efficiency of the working capital and taken managerial decisions on its use there is a need to improve the methods of economic analysis, which shall be adjusted to specifics of agricultural production, consider industrial features of organizations, strategic development of the state agricultural policy. Scientific approaches to the analysis of the influence of the working capital on elements of the equity capital within agricultural organizations will allow revealing problems and developing actions to eliminate them thus ensuring the equity capital growth. The paper considers successive evaluation stages of the working capital, its structure, assessment of its turnover characterizing speed and time of the working capital circulation in general on the total cost of the agricultural organization as well as their separate types, including inventory, receivables, cash flows and other working assets.