Equity capital is an economic object of accounting and analysis of the enterprise. The capital increase is possible with the proper conduct of fiscal policy.
Financial is the basis of the calculation of shareholders' equity and is involved in the accounting system.
equity analysis should be conducted to identify its basic components and determine the changes of financial stability.
You will need
- The company with sufficient equity, the desire to increase capital.
Change your own capitalbut it depends on the involved capitala debt to capitala. For proper functioning of businesses need sufficient cash capitalTo carry out financial operations. Own capital determined by the total value of assets of the enterprise. The collection of the contributions of shareholders is authorized capitalAnd reserve capital It is guaranteed for the protection of creditors. When revaluation of fixed assets and unfinished construction going increase in the value of the property, which is called extension capitalth. The net profit is distributed to shareholders as dividends or used for working capital and the accumulation of property. Growing your own capitaland it depends on retained earnings, which is increasing every year.
Some organizations place their profits inbank demand deposits. Very easy to use program designed specifically for businesses in virtually every country bank. The idea is that the money can be removed from the deposit account at the time when they are needed. In the same way the amount can be increased to the desired level. Bank monthly or 2 times a month the company will credit the interest on the deposit to the current account. To control means better use of client-bank, not to go to the bank several times a day for the transfer of funds.
In order to increase their own capitaland the company can take your property for rent, accept grant financial assistance to attract investors. Increased turnover rate increases capitaland, at the same time it requires a highproductivity, improving management, marketing and logistics. It is also necessary to reduce the production cycle and reduce the labor intensity of production.