Assessment of the optimal capital structure of Ukrainian agricultural holdings (Kernel Holding S.A., MHP S.A.)

Fedorova, T.; Minina, V.

Assessment of the optimal capital structure of Ukrainian agricultural holdings (Kernel Holding S.A., MHP S.A.)

Файли

Black_Sea_Sci_2018_Fedorova.pdf(2.9 MB)

Дата

2018

Автори

Fedorova, T.

Minina, V.

Анотація

The optimal capital structure is a structure in which an optimal ratio between the level of return on equity and the level of financial sustainability is ensured, and, thus, the value of an enterprise (or its shares) is maximized. An unstable economic situation brings forward the optimal capital structure problem. It is of current interest nowadays as the optimal capital structure allows rational use of financial resources and affects the value of an enterprise. The purpose of the article is to study the capital structure at different levels of debt load and identify the optimal. The objects of study are Ukrainian agricultural holdings Kernel Holding S.A. and MHP S.A. Basic financial indicators of enterprises economic activity for a period of 5 years have been analyzed in this work. They are: revenues from sales, EBITDA and operating profit, economic profitability and return on assets. Moreover, WACC model has been used in the study that allowed calculating the value of capital at different levels of debt load and finding the optimal ratio of equity and debt capital. The result of this article is the conclusion that the capital structure of both MHP S.A. and Kernel is not optimal, but tends to it. The solution to this problem may be an increase in the share of debt capital, since its cost is cheaper. However, due to increased liabilities, the risk of insolvency increases, and this in turn can lead to bankruptcy of companies. Consequently, the decisions of the company's managers must be verified and weighed.

Опис

Fedorova T. Assessment of the optimal capital structure of Ukrainian agricultural holdings (Kernel Holding S.A., MHP S.A.) / T. Fedorova, V. Minina ; supervisor Т. Kulakovsky // Black Sea Science 2018 : матеріали Міжнар. конкурсу студентських наук. робіт, Одеса, 4 квіт. 2018 р. / Одес. нац. акад. харч. технологій ; ред. кол.: Б. В. Єгоров [та ін.]; орг. ком.: Б. В. Єгоров (голова) [та ін.]. – Одеса : ОНАХТ, 2018. – P. 337–355 : tabl., fig. – Ref.: 15 tit.