Types of capital as indicators of the financial soundness of the enterprise

There is a great variety of classificationscapital, for example, it is divided into physical and human, permanent and variable, statutory, additional and reserve. But in the conditions of the market, capital types have only two fundamental forms that determine the development of the main sectors of the economy. This is real and financial capital.

Real capital is formed directlyenterprise. It is a collection of all assets and is necessary to ensure the production activities and development of the company in order to create profit.

Kinds of the capital of the enterprise also can bebasic and negotiable. The fixed capital includes tangible and intangible assets. To it all basic funds in the form of cars and the equipment, buildings and constructions and other kinds which are considered on cost of made production parts are considered, they name amortization deductions. Intangible assets are the intellectual value of an enterprise, for example, the acquired technology or software, an invention backed by a patent, does not have a tangible form, but is of particular importance for the production and production process, therefore they are also assets and are attributed to the value of goods in the form of parts.

The working capital of an enterprise is a raw material base, materials and other types of material assets that are attributed to the value of goods in full, which is necessary for their production.

The capital of the enterprise can be expressed in monetaryform. A certain part of the capital reflects the value of fixed and working capital, while the other part is in the form of retained earnings and funds in the account. It is at the expense of profits that other types of capital can be created, such as reserve or insurance.

In order for enterprises to systematicallyDeveloped, investment projects are created that require certain investments. In this case, the investment of capital matters, and its types are divided into two categories, differing from each other by sources of financing: own and borrowed. Investments can include such types of capital as real and financial. In most cases, investments are made with the help of financial capital, but in some cases it is more efficient to use the real one, for example, in the form of entering into a contract with a potential investor to supply the necessary equipment.

Enterprises prefer to be financiallyindependent, but some major investment projects for successful and timely implementation require significant additional capital. The indicator of the ratio of own and borrowed capital is financial leverage, it reflects the degree of financial dependence of the company.