Corporate self-financing indicators

Abstract

The category of self-financing was actively used in the management of corporate finance in the socialist period of the development of the Russian economy. Initially, it referred to the use of funds earned by the corporation to finance investment and current activities. In market conditions, this category is considered in relation to the investment activities of corporations and reflects the use of their own sources in financing investment projects. The article substantiates the need to use self-financing indicators to assess not only investment, but also the entire current activities of corporations. The corporation’s stock network is proposed
as a methodological basis for these indicators. The requirements for self-financing indicators are formulated. Formulas for calculating indicators for each of the phases, as well as for the financial turnover as a whole, have been developed. The absolute value of self-financing of the phase is proposed to be characterized by modules of intra-network turnover flows.
The overall need for funding is the potential of the phase. Self-financing coefficients are
determined by the ratio of these indicators. Self-financing indicators have been developed to assess the financial turnover as a whole. As the main one, it is recommended to use the value of the private coefficient of use of the ordinary potential for intra-network turnover.
A new indicator for evaluating the self-financing of the corporation’s investment activities is proposed. It takes into account the modules of external inflows of the stock network. The high level of self-financing indicators indicates a low immobilization of the corporation’s assets in its reserves, the absence of borrowing and attracting funds from the corporation’s owners to finance its activities. A number of examples are given to demonstrate the possibility of determining these indicators based on the stock network of a particular corporation.