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Efficiency Mark of Structuring the Share Capital of Native Automakers

Journal: Bulletin of Taras Shevchenko National University of Kyiv. Economics (Vol.206, No. 5)

Publication Date:

Authors : ; ;

Page : 6-14

Keywords : ;

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Abstract

The proposed system efficiency mark of structuring the share capital of domestic enterprises, consists of three levels. According to this evaluation system, the analysis of the efficiency of structuring the share capital of domestic automakers over the past eight years has been carried out and the main reasons for the economic downturn in the automotive industry of Ukraine have been identified. According to the analysis, at all investigated enterprises, the profitability of assets is lower than the interest on borrowing. The return on equity of enterprises decreases and acquires negative values, while the profitability of the assets of the investigated enterprises is also negative, as a result of which the profitability of equity with an increase in the level of debt quickly becomes negative. Such a structure of equity is inefficient and unsatisfactory, as the insolvency of enterprises comes along with the onset of obligations. Therefore, an important condition for further economic development of domestic automobile construction companies is the implementation of measures to improve the structure of share capital and optimize it.

Last modified: 2020-03-17 23:08:05