Capital investments - is part kapitaloobrazuyuschih investment, a necessary condition for the proper functioning of the company.
They also received the name of investments in fixed assets.
Types of investments
Capital investments arelong-term investments that can provide returns in the future. This, for example, R & D costs. You can select the following types of investments: construction of facilities, the expansion of the company through the introduction of new production facilities, renovation (reorganization without the introduction of new capacity) and technical re-equipment (introduction of new equipment, modernization). Faster economic returns are investments for reconstruction and technical re-equipment. This requires smaller investments and operations are carried out in a short time.
The organization may carry out capital investments do notonly in production but also in human capital. This, for example, the cost of training employees and productivity. In this case, the costs can be compensated by an increase in company revenue in the future.
In terms of technological structuredistinguish between investments in active and passive elements of fixed capital. Passive are those that are not directly involved in the production, but creating the necessary conditions for it. This, for example, investment in buildings and structures.
By appointment capital investments are divided into manufacturing (machinery, equipment) and non-production (of the building).
By way of implementation of capital investment can be carried out economic way (on their own) or by contract (with the assistance of third-party companies).
In terms of investment sourcesCapital investments are carried at their own expense (in deductions from income, depreciation, due to the share premium, charitable contributions), and borrowed funds (loans, accounts payable). Also, budgetary subsidies and foreign investment can act including sources of funding.
The effectiveness of capital investments
Before making investments alwaysshould evaluate their efficiency in economic and technical terms. In particular, it produced a feasibility study, including the development of production capacity and marketing of research is forecasting financial results of investments, as well as general economic analysis.
According to the analysis conclusionswith respect to changes in various indicators of this activity. This, in particular, the additional yield on the ruble of capital investments. It is calculated by the formula: (total production with additional investment - the production at the initial investment) / (the sum of capital expenditures).
Another indicator of the analyzed - reductioncost per ruble of capital investments. It is calculated as the volume of production after capital expenditures * (unit cost at source - when investments produced) / (total capex). Accordingly, the term return on investment can be calculated using the inverse formula: (total capex) / volume of production after capital expenditures * (unit cost at source - when made investments).