Any company strives to increase its market share. In the process of formation and development, the company creates and increases its equity. At the same time, it is very often necessary to attract external capital to boost growth or launch new areas. For modern economy with a well-developed banking sector and exchange structures, it is not difficult to get access to borrowed capital.

Theory about the balance of capital

When attracting borrowed funds, it is important to strike a balance between the commitments made to repay and the goals set. Violating it, you can get a significant decrease in the pace of development and the deterioration of all indicators.

According to the Modigliani-Miller theory, the presence of a certain percentage of borrowed capital in the structure of the total capital that a company has is beneficial for the current and future development of the company. Borrowed funds at an affordable service price allow you to direct them to promising directions, in this case, the effect of the money multiplier will work, when one invested unit will give an increase in an additional unit.

But in the presence of a high proportion of borrowed funds, the company may not meet its internal and external obligations by increasing the amount of loan servicing.

Thus, the main task of a company that attracts third-party capital is to calculate the optimal financial leverage ratio and create a balance in the overall capital structure. It is very important.

Financial leverage (lever), definition

The leverage represents the existing ratio between the two capitals in the company: own and attracted. For a better understanding, the definition can be formulated differently. The financial leverage ratio is an indicator of the risk that a company takes on by creating a certain structure of funding sources, that is, using both its own and borrowed funds as them.

For understanding: the word "leverage" is in English, meaning "lever" in translation, therefore, the leverage of financial leverage is often called "financial leverage". It is important to understand this and not to think that these words are different.

Components of the "shoulder"

The financial leverage ratio takes into account several components that will affect its indicator and effects. Among them are:

1. Taxes, namely the tax burden that the company bears in carrying out its activities. Tax rates are set by the state, so the company this issue can regulate the level of tax deductions only by changing the selected tax regimes.
2. Indicator of financial leverage. This is the ratio of borrowed funds to equity. Already this indicator can give an initial idea of ​​the price of capital raised.
3. Financial leverage differential. Also an indicator of compliance, which is based on the difference between the profitability of assets and the interest that is paid for loans taken.

Financial Leverage Formula

Calculate the coefficient of financial leverage, the formula of which is quite simple, as follows.

Leverage = Amount of debt / Amount of equity

At first glance, everything is clear and simple. It can be seen from the formula that the leverage ratio of financial leverage is the ratio of all borrowed funds to equity capital.

Shoulder of financial leverage, effects

Leverage (financial) is associated with borrowed funds, which are aimed at the development of the company, and profitability. Having determined the capital structure and obtained the ratio, that is, by calculating the coefficient of financial leverage, the formula for the balance sheet of which is presented, one can evaluate the effectiveness of capital (that is, its profitability).

The leverage effect gives an understanding of how much the efficiency of equity capital will change due to the fact that external capital has been attracted to the company's turnover. To calculate the effect, there is an additional formula that takes into account the indicator calculated above.

There are positive and negative effects of financial leverage.

The first is when the difference between the return on total capital after all taxes have been paid exceeds the interest rate for the loan provided. If the effect is greater than zero, that is, positive, then it is profitable to increase the leverage and it is possible to attract additional borrowed capital.

If the effect has a minus sign, then measures should be taken to prevent a loss.

American and European interpretations of the leverage effect

The two interpretations of the leverage effect are based on which accents in more taken into account in the calculation. This is a more in-depth consideration of how the financial leverage ratio shows the magnitude of the impact on the company's financial results.

The American model or concept considers financial leverage through net profit and profit received after the company has completed all tax payments. This model takes into account the tax component.

The European concept is based on the efficiency of using borrowed capital. It examines the effects of using equity capital and compares it with the effect of using borrowed capital. In other words, the concept is based on assessing the profitability of each type of capital.

Conclusion

Any company strives at least to achieve a break-even point, and as a maximum - to obtain high profitability. To achieve all the goals, there is not always enough own capital. A lot of companies resort to attracting borrowed funds for development. It is important to maintain a balance between own capital and borrowed capital. It is to determine how this balance is observed in the current time, and the indicator of financial leverage is used. It helps to determine how much the current capital structure allows you to work with additional borrowed funds.

The effect of financial leverage

The financial risk of an enterprise is primarily due to the structure of the sources of its property, i.e. the ratio of own and borrowed capital attracted to finance its activities. Almost all funds are attracted by the enterprise on a reimbursable basis, however, the obligations for their various sources are not the same: if the company fails to fulfill its obligations to external investors, they may initiate bankruptcy proceedings. Therefore, the essence of financial risk lies in the fact that a high proportion of borrowed capital increases the risk of the company's inability to pay off its obligations and, as a result, its possible bankruptcy. On the other hand, raising borrowed funds allows the company to receive additional profit on equity.

To characterize the relationship between the enterprise's profit, the cost of resources spent on its receipt and the costs incurred in connection with attracting and maintaining the formed structure of enterprise financing sources, a special economic category is used - leverage (lever).

Leverage is a long-term operating factor, whose value can be controlled; even a small change can lead to a significant change in the resulting performance of the company.

financial leverage characterizes the use of borrowed funds by the enterprise, which affects the change in the return on equity ratio; arises with the advent of borrowed funds in the composition used by the enterprise and is closely related to the category of financial risk of the company.

Exist different approaches to the definition of financial leverage.

1. The actual coefficient of financial leverage (2.6) - characterizes the ratio of borrowed and own funds enterprise, the higher its value, the more borrowed capital falls on each ruble of its own, and the higher the financial risk of the company.

2. The European approach considers financial leverage as an indicator that reflects the level of additionally generated profit on equity when an enterprise uses borrowed funds. It is called the effect of financial leverage and is calculated using the following formula:

where EGF 1 is the effect of financial leverage, calculated by the first method (European approach);

C n.p - income tax rate, expressed decimal;

ER A - economic profitability of assets, calculated according to the formula (2.14) and expressed in%;

SP - the average interest rate on loans, expressed in%;

ЗК av - the average amount of borrowed capital used by the enterprise;

SC av - the average amount of equity capital of the enterprise.

Numerically, EGF 1 is equal to the increase in the net return on equity in the transition from a debt-free financing option to the capital structure that has developed for the period under review. Its positive value indicates that the attraction of borrowed capital allows the company to increase the return on equity. At the same time, its negative or very large value indicates a high level of financial risk.

The formula for the effect of financial leverage (3.12) has three components.

· Tax corrector of financial leverage (1 - C n.p.) - characterizes the extent to which the effect of financial leverage is manifested in connection with different levels of income taxation. Its value practically does not depend on the activity of the enterprise, since the income tax rate is established by law. At the same time, in the process of managing financial leverage, a differentiated tax corrector can be used in the following cases:

If by various types the activities of the enterprise established differentiated rates of taxation of profits;

If for certain types of activities the enterprise uses tax benefits on profits;

If individual subsidiaries of the enterprise operate in free economic zones where preferential treatment profit taxation;

If individual subsidiaries of the enterprise operate in states with a lower level of income taxation.

In these cases, affecting the industry or regional structure production (and, accordingly, on the composition of profit in terms of its taxation level), it is possible, by reducing the average profit tax rate, to increase the impact of the tax corrector on the effect of financial leverage.

· Financial leverage differential (ER A - SP) - characterizes the difference between the gross return on assets and the average interest rate for a loan, is the main condition that forms its positive effect. If the additional profit received by the enterprise when using borrowed funds exceeds the financial costs that it incurs when using borrowed capital, then the value of this indicator is positive. The higher the positive value of the financial leverage differential, the higher its effect will be.

Due to the high dynamism of this indicator, it requires constant monitoring in the process of managing the effect of financial leverage. This dynamism is due to a number of factors.

During a period of deteriorating conditions financial market(with a reduction in the volume of capital supply) the cost of borrowed funds can increase sharply, exceeding the level of gross profit generated by the assets of the enterprise;

A decrease in the financial stability of an enterprise with an increase in the share of borrowed capital used leads to an increase in the risk of its bankruptcy, which forces creditors to increase the interest rate for a loan, taking into account the risk premium; at a certain level of the general interest rate for a loan, the financial leverage differential can become zero (when the use of borrowed capital does not increase the return on equity) or negative (when the return on equity decreases, since part of the net profit generated by equity capital will be spent on servicing the used borrowed capital at high interest rates);

During the period of deterioration in the commodity market, the volume of sales of products is reduced, and, accordingly, the size of the gross profit of the enterprise from operating activities; under these conditions, the negative value of the differential of financial leverage can be formed even at constant interest rates for a loan due to a decrease in the economic profitability ratio of assets.

The formation of a negative value of the financial leverage differential for any of the above reasons leads to a decrease in the return on equity ratio. In this case, the use of borrowed capital by the enterprise has a negative effect, and therefore unprofitable.

· The coefficient of financial leverage or its leverage (LC cf / SC cf) - characterizes the amount of borrowed capital used by the enterprise, per unit of equity, is the factor that enhances the positive or negative effect obtained due to the corresponding value of its differential. With a positive value of the differential, any increase in the coefficient of financial leverage will cause an even greater increase in the return on equity ratio, and with a negative value of the differential, to an even greater rate of its decline. In other words, an increase in the coefficient of financial leverage causes an even greater increase in its effect (positive or negative, depending on the positive or negative value of the differential).

With a constant differential, the leverage ratio is the main generator of both the increase in return on equity and the financial risk of losing this profit.

Formula (3.12) is classical and does not take into account the peculiarities of Russian taxation. As noted above, financial costs, according to the current Tax Code, are divided into two categories: those attributable to costs and financial results. In this regard, the formula for the effect of financial leverage adapted to Russian tax conditions is as follows

where SP c - the interest rate on borrowed capital, attributable to the cost of production;

SP p - interest rate on borrowed capital, attributable to financial results (profit).

3. The American approach to assessing the effect of financial leverage (also called the level of financial leverage) is to highlight its impact on the amount of net profit, namely, how sensitive net profit to changes in operating profit (NREI). The result is defined as the ratio of the rate of change in net profit in the current period relative to the previous one, expressed as a percentage, to the same rate of change in operating profit:

, (3.14)

where EGF 2 is the effect of financial leverage, calculated by the second method (American approach);

PE (%) = (PE 1 - PE 0) / PE 0 × 100% - the rate of change in net profit in the current period compared to the previous one,%;

NREI (%) = (NREI 1 - NREI 0) / NREI 0 × 100% - the rate of change in operating profit in the current period relative to the previous one, %.

The value of EGF 2 shows how many percent net profit will change if operating profit changes by 1%. How more amount the financial costs that the company incurs on borrowed capital, the more the net and operating profits will differ, the more significantly the net profit will change when operating, which means that the effect of financial leverage will be higher. In this case, it is a measure of financial risk, its high value indicates significant financial costs to the firm.

Transformation of formula (3.14) gives the classical EGF 2 formula:

, (3.15)

where BP is the balance sheet profit (profit before tax) of the enterprise.

Formula (3.15) is also not entirely adapted to Russian financial management. The modified formula for the effect of financial leverage is as follows

. (3.16)

Knowledge of the mechanism of the impact of financial leverage on the level of profitability of equity and the level of financial risk allows you to purposefully manage both the cost and the capital structure of the enterprise.

test questions

1. What is the financial risk of the enterprise? What types of risks exist and why do they arise?

2. What are the main goals and objectives of financial risk management?

3. Describe the procedure for managing the financial risks of the enterprise.

4. What are the main methods used to assess financial risks? Is there a universal one among them? Justify your answer.

5. What are the ways to neutralize financial risks? What are the advantages and disadvantages of external and internal mechanisms for their neutralization?

6. List the main ways external funding enterprises. What are the benefits of each?

7. What are the risks associated with different external sources funding?

8. How and for what purpose are the operating profit threshold and financial critical point calculated?

9. Define the concept of leverage (lever). In this connection, in the course of the enterprise's activity, the concept of financial leverage arises?

10. What are the approaches to determining the numerical value of financial leverage?

To calculate the effect of financial leverage (EFF), it is necessary to calculate the economic profitability (ER) and the average calculated interest rate (AMIR).

EGF \u003d 2/3 (ER - SRSP) * ZS / SS

Where ER = Net operating result of the investment / (Own funds + Borrowed funds),
IFCI = Finance Cost of Interest / Borrowings * 100%
This formula can be presented in a more extended version.

Service assignment. With the help of an online calculator, a step-by-step analysis of the enterprise's activities is carried out:

1. Calculation of the effect of financial leverage.
2. Profit sensitivity analysis to changes in the analyzed factor.
3. Determination of a compensating change in the volume of sales when the analyzed factor changes.

Instruction. Complete the table, click Next. The decision report will be saved in MS Word format.

Unit rev. rub. thousand roubles. million rubles

1. Sales proceeds, thousand rubles
2. The cost of production, thousand rubles. (item 2a + item 2b)
2a variable costs, thousand roubles.
2b fixed costs, thousand roubles.
3. Own funds (SS), thousand rubles.
4. Borrowed funds (LL), thousand rubles
4a Financial costs for borrowed funds (FI), thousand rubles. (item 4 * item 4b)
4b Average interest rate, %

The following data is filled in for a more detailed analysis:
For sensitivity analysis

We will increase the volume of sales by (in%):
1 option
Option 2
At the same time, fixed costs will increase by,%
The increase in the selling price will be, %

For the percentage of sales method

Enterprise performance indicators

Indicators such as Own funds (SS), Borrowed funds (SL), Retained earnings of previous years, Authorized capital, Current assets, Current liabilities and Return on sales can be determined from the data balance sheet(find with a calculator).

Classification of the effect of financial leverage

Example. Table 1 - Initial data

Indicators	Meaning
1. Sales proceeds thousand rubles.	12231.8
2. Variable costs thousand rubles.	10970.5
3. Fixed costs thousand rubles.	687.6
4. Own funds (SS) thousand rubles.	1130.4
5. Borrowed funds (LL) thousand rubles.	180
6. Financial costs for borrowed funds (FI) thousand rubles.	32.4

Let's define financial indicators enterprise activities
Table 1 - Performance indicators of the enterprise

1. Calculation of the effect of financial leverage
To calculate the effect of financial leverage (EFF), it is necessary to calculate the economic profitability (ER) and the average calculated interest rate (AMIR).
ER = NREI / Assets * 100 = 606.1 / (1130.4 + 180) * 100 = 46.25%
SRSP \u003d FI / GC * 100 \u003d 32.4 / 180 * 100 \u003d 18%
EGF \u003d 2 / 3 (ER - SRSP) * GL / SS \u003d 2 / 3 (46.25% - 18%) * 180 / 1130.4 \u003d 3.0%
PCC = 2/3 * ER + EGF = 2/3 * 46.25 + 3.0 = 33.84%
The essence of the effect of financial leverage: the effect of financial leverage shows the increment to the return on equity obtained as a result of the use of borrowed capital. In our case, it was 3.0%.
The effect of financial leverage can also be used to assess the creditworthiness of an enterprise.
Since the financial leverage is less than 1 (0.159), this enterprise can be regarded as solvent. The meaning of the effect of financial leverage: the company can apply for additional credit.
By using graphic method determine the safe amount of borrowed funds. Typical differential curves are shown in Figure 1.

Rice. 1. Differential curves

Determine the position of our enterprise on the graph.
ER / SRSP = 46.25 / 18 = 2.57
Where ER \u003d 2.57 SRSP
With additional borrowing, it is necessary that the enterprise does not fall below the main curve (the enterprise is between ER \u003d 3 SRSP and ER \u003d 2 SRSP). Therefore, at the level of tax neutralization at the EGF/RCC point = 1/3, the allowable leverage of the CA/CC financial leverage is 1.0.
Thus, the loan can be increased by 950.4 thousand rubles. and reach 1130.4 thousand rubles.
Let us determine the upper limit of the price of borrowed capital.
ER = 2SRSP
Where SRSP = 46.25% / 2 = 23.13%
CPCP = FI / AP
Where FI \u003d SRSP * GS \u003d 23.13% * 1130.4 \u003d 261.422 thousand rubles.
Thus, this enterprise, without losing financial stability, can take an additional amount of borrowed funds by 950.4 thousand rubles. Additional borrowing will cost the company 219.795 thousand rubles, if the average interest rate on the loan does not exceed 23.13%.
Let us calculate the critical value of the net result of the operation of investments, i.e. such a value at which the effect of financial leverage is equal to zero, and therefore, the return on equity is the same for options, both with the involvement of borrowed funds, and with the use of only own funds.
NREI critical = 1310.4 * 18 = 235.872 thousand rubles.
In our case, the threshold value has been passed, and this indicates that it is profitable for the enterprise to attract borrowed funds.

For any enterprise, the priority is the rule that both own and borrowed funds must provide a return in the form of profit (income). The action of financial leverage (leverage) characterizes the expediency and efficiency of the use of borrowed funds by the enterprise as a source of financing of economic activity.

The effect of financial leverage is that the company, using borrowed funds, changes the net profitability of own funds. This effect arises from the discrepancy between the profitability of assets (property) and the "price" of borrowed capital, i.e. average bank rate. At the same time, the company must provide for such a return on assets so that the funds are sufficient to pay interest on the loan and pay income tax.

It should be borne in mind that the average calculated interest rate does not coincide with the interest rate accepted under the terms of the loan agreement. The average settlement rate is set according to the formula:

SP \u003d (FIk: amount of AP) X100,

joint venture - the average settlement rate for a loan;

Fick - actual financial costs for all loans received for the billing period (the amount of interest paid);

AP amount - the total amount of borrowed funds attracted in the billing period.

The general formula for calculating the effect of financial leverage can be expressed as:

EGF \u003d (1 - Ns) X(Ra - SP) X(GK:SK),

EGF - the effect of financial leverage;

Ns – income tax rate in fractions of a unit;

Ra – return on assets;

joint venture - average calculated interest rate for a loan in %;

ZK - borrowed capital;

SC - equity.

The first component of the effect is tax corrector (1 - Hs), shows the extent to which the effect of financial leverage is manifested in connection with different levels of taxation. It does not depend on the activities of the enterprise, since the income tax rate is approved by law.

In the process of managing financial leverage, a differentiated tax corrector can be used in cases where:

differentiated tax rates have been established for various types of enterprise activities;

for certain types of activities, enterprises use income tax benefits;

individual subsidiaries (branches) of the enterprise operate in free economic zones, both in their own country and abroad.

The second component of the effect is differential (Ra - SP), is the main factor that forms the positive value of the effect of financial leverage. Condition: Ra > SP. The higher the positive value of the differential, the more significant, other things being equal, the value of the effect of financial leverage.

Due to the high dynamism of this indicator, it requires systematic monitoring in the management process. The dynamism of the differential is due to a number of factors:

during a period of deterioration in the financial market, the cost of borrowing funds may increase sharply and exceed the level accounting profit generated by the assets of the enterprise;

the decrease in financial stability, in the process of intensive attraction of borrowed capital, leads to an increase in the risk of bankruptcy of the enterprise, which makes it necessary to increase interest rates for a loan, taking into account the premium for additional risk. The financial leverage differential can then be reduced to zero or even to a negative value. As a result, the return on equity will decrease, as part of the profit it generates will be used to service the debt received at high interest rates;

during a period of deterioration in the situation on the commodity market, a decrease in sales and the amount of accounting profit negative meaning differential can be formed even at stable interest rates due to lower return on assets.

Thus, the negative value of the differential leads to a decrease in the return on equity, which makes its use inefficient.

The third component of the effect is debt ratio or financial leverage (GK: SK) . It is a multiplier that changes the positive or negative value of the differential. With a positive value of the differential, any increase in the debt ratio will lead to an even greater increase in the return on equity. With a negative value of the differential, the increase in the debt ratio will lead to an even greater drop in the return on equity.

So, with a stable differential, the debt ratio is the main factor affecting the return on equity, i.e. it generates financial risk. Similarly, with a fixed debt ratio, a positive or negative value of the differential generates both an increase in the amount and level of return on equity, and the financial risk of losing it.

Combining the three components of the effect (tax corrector, differential and debt ratio), we obtain the value of the effect of financial leverage. This method of calculation allows the company to determine the safe amount of borrowed funds, that is, acceptable lending conditions.

To realize these favorable opportunities, it is necessary to establish the relationship and contradiction between the differential and the debt ratio. The fact is that with an increase in the amount of borrowed funds, the financial costs of servicing the debt increase, which, in turn, leads to a decrease in the positive value of the differential (with a constant return on equity).

From the above, the following can be done conclusions:

if new borrowing brings to the enterprise an increase in the level of the effect of financial leverage, then it is beneficial for the enterprise. At the same time, it is necessary to control the state of the differential, since with an increase in the debt ratio, a commercial bank is forced to compensate for the increase in credit risk by increasing the “price” of borrowed funds;

the creditor's risk is expressed by the value of the differential, since the higher the differential, the lower the bank's credit risk. Conversely, if the differential becomes less than zero, then the leverage effect will act to the detriment of the enterprise, that is, there will be a deduction from the return on equity, and investors will not be willing to buy shares of the issuing enterprise with a negative differential.

Thus, an enterprise's debt to a commercial bank is neither good nor evil, but it is its financial risk. By attracting borrowed funds, an enterprise can more successfully fulfill its tasks if it invests them in highly profitable assets or real investment projects with a quick return on investment.

The main task for a financial manager is not to eliminate all risks, but to take reasonable, pre-calculated risks, within the positive value of the differential. This rule is also important for the bank, because a borrower with a negative differential is distrustful.

Financial leverage is a mechanism that a financial manager can master only if he has accurate information about the profitability of the company's assets. Otherwise, it is advisable for him to treat the debt ratio very carefully, weighing the consequences of new borrowings in the loan capital market.

The second way to calculate the effect of financial leverage can be viewed as a percentage (index) change in net profit per ordinary share, and the fluctuation in gross profit caused by this percentage change. In other words, the effect of financial leverage is determined by the following formula:

leverage strength = percentage change in net income per ordinary share: percentage change in gross income per ordinary share.

The smaller the impact of financial leverage, the lower the financial risk associated with this enterprise. If borrowed funds are not involved in circulation, then the force of the financial leverage is equal to 1.

The greater the force of financial leverage, the higher the company's level of financial risk in this case:

for a commercial bank, the risk of non-repayment of the loan and interest on it increases;

for the investor, the risk of reducing dividends on the shares of the issuing enterprise with a high level of financial risk that he owns increases.

The second method of measuring the effect of financial leverage makes it possible to perform an associated calculation of the strength of the impact of financial leverage and establish the total (general) risk associated with the enterprise.

In terms of inflation if the debt and interest on it are not indexed, the effect of financial leverage increases, since debt servicing and the debt itself are paid for with already depreciated money. It follows that in an inflationary environment, even with a negative value of the differential of financial leverage, the effect of the latter can be positive due to non-indexation of debt obligations, which creates additional income from the use of borrowed funds and increases the amount of equity capital.

Financial assessment of the company's stability indicators is essential for the successful organization and planning of its activities. Financial leverage in this analysis is used quite often. It allows you to evaluate the capital structure of the organization and optimize it.

The investment rating of the enterprise, the possibility of development, and the increase in the amount of profit depend on this. Therefore, in the process of planning the work of the analyzed object, this indicator plays an important role. The method of its calculation, the interpretation of the results of the study deserve special attention. The information obtained during the analysis is used by the company's management, founders and investors.

General concept

Financial leverage is an indicator that characterizes the degree of risk of a company with a certain ratio of its borrowed and own sources of financing. Translated from English, "leverage" means "lever". This suggests that when one factor changes, other indicators associated with it are affected. This ratio is directly proportional to the financial risk of the organization. This is a very informative technique.

In conditions market economy the indicator of financial leverage should be considered not from the point of view of the balance sheet valuation of equity capital, but from the position of its real valuation. At large enterprises, which have been successfully operating in their industry for a long time, these indicators are quite different. When calculating the financial leverage ratio, it is very important to take into account all the nuances.

General meaning

Applying a similar technique at the enterprise, it is possible to determine the relationship between the ratio of equity and borrowed capital and financial risk. Using free sources of business support, you can minimize the risks.

The stability of the company is the highest. By using paid debt capital, a company can increase its profits. The effect of financial leverage involves determining the level of accounts payable at which the return on total capital will be maximum.

On the one hand, using only their own financial sources, the company loses the opportunity to expand its production, but on the other hand, too high level paid resources in the overall structure of the balance sheet will lead to the inability to repay their debts, reduce the stability of the enterprise. Therefore, the leverage effect is very important when optimizing the balance sheet structure.

Calculation

Kfr \u003d (1 - H) (KRA - K) Z / S,

where H is the income tax coefficient, KRA is the return on assets, K is the rate for using the loan, Z is borrowed capital, and C is equity.

KPA = Gross Profit/Assets

In this technique, three factors are connected. (1 - H) - tax corrector. It does not depend on the enterprise. (KRA - K) - differential. C/S is financial leverage. This technique allows you to take into account all conditions, both external and internal. The result is obtained as a relative value.

Description of the components

The tax corrector reflects the degree of influence of a change in income tax percentages on the entire system. This indicator depends on the type of activity of the company. It cannot be lower than 13.5% for any organization.

The differential determines whether it will be profitable to use the total capital, taking into account the payment of interest rates on loans. Financial leverage determines the degree of influence of paid sources of financing on the effect of financial leverage.

With the overall impact of these three elements of the system, it was found that the normatively fixed value of the coefficient is determined in the range from 0.5 to 0.7. The share of credit funds in the total structure of the balance sheet currency should not exceed 70%, otherwise the risk of debt default increases, and financial stability decreases. But when it is less than 50%, the company loses the opportunity to increase the amount of profit.

Method of calculation

Operational and financial leverage is an integral part of determining the efficiency of the company's capital. Therefore, the calculation of these values ​​is mandatory. To calculate leverage, you can use the following formula:

FR \u003d KRA - RSK, where RSK - return on equity.

For this calculation, it is necessary to use the data that are presented in the balance sheet (form No. 1) and the income statement (form No. 2). Based on this, you need to find all the components of the above formula. Return on assets is as follows:

KRA = Net profit / Balance sheet

KRA = s. 2400 (f. No. 2)/s. 1700 (f. No. 1)

To find the return on equity, you need to use the following equation:

RSK = Net profit / Equity

RSK = s. 2400 (f. No. 2)/s. 1300 (f. No. 1)

Calculation and interpretation of the result

To understand the calculation methodology presented above, it is necessary to consider it on specific example. To do this, you can take the data of the financial statements of the enterprise and evaluate them.

For example, a company's net income reporting period amounted to 39 350 thousand rubles. At the same time, the balance sheet currency was fixed at the level of 816,265 rubles, and the equity capital in its composition reached the level of 624,376 rubles. Based on the above data, it is possible to find financial leverage:

CRA = 39,350/816,265 = 4.8%

RSK = 39,350/624,376 = 6.3%

RF = 6.3 - 4.8 = 1.5%

Based on the above calculations, we can say that the company, thanks to the use of credit funds, was able to increase profits in the reporting period by 50%. The financial leverage of the return on equity is 50%, which is optimal for effective management of borrowed funds.

Having become acquainted with such a concept as financial leverage, one can come to the conclusion that the method of its calculation allows one to determine the most effective ratio of credit funds and own liabilities. This enables the organization to receive greater profits by optimizing its capital. Therefore, this technique is very important for the planning process.