Efficiency analysis of equity capital use for joint stock company based on indicators of public reporting

Abstract

Purpose : the author considers the evaluation method for equity capital efficiency of joint stock companies. The specialists apply the above method in international practice. Indicators of public reporting for the analytical calculations use in this method. Discussion : the information about the equity is important characteristic of financial organization condition and functioning of the business. The analytical assessment for efficiency of own capital use in dependence on the amount of work-ing capital, retained earnings, capital stock, value dividends, market value of shares and other indicators conducts on the basis of public reporting indicators for joint- stock companies of the Mordovia Republic for various industries. Results : the current and potential shareholders and business owners can use the results of the analysis to assess the attractiveness and payback of invested funds. An analysis of equity use efficiency is important for assess the welfare of shareholders subject to the use of securities.