THE COMBINATION OF OWN AND DEBT CAPITAL IN THE FINANCING OF CURRENT ASSETS OF AN ORGANIZATION ON THE BASIS OF A FINANCIAL MODEL

The paper deals with the issue of combination of own and debt capital in the financing of working assets of an organization. The author considered the existing scientific approaches to this problem. There are no reasonable criteria for the choice of the sources of working financing in the theory and practice of lending. In this regard, the development of scientific methods to justify the feasibility of attracting loans for working capital is relevant. The author justifies the technique of calculating the elements of net working capital based on the value of base indicator and the change in the time of turnover. The paper presents the technique of calculating the index of the time of working capital turnover and short-term liabilities making up the net working capital: accounts receivable, accounts payable, inventories, and value-added tax. The author studied the technique of calculating the need for working capital by two methods: based on the marginal profit and leverage and based on the sustainable growth model in terms of long-term loans and non-current assets. The ratio of net working capital and own working capital depending on the time of turnover and the rate of change in the base indicator and the terms of settlements with counterparties are considered. Based on the financial model, the author studied the dependences between own working capital and net working capital and their impact on the need for loans. Using an illustrative example, the author calculated own working capital for the crediting period. Attracting loans for working assets is advisable in case of the lack of net profit for additional financing. The external financing can ensure the growth of assets resulting from the required increase in sales. Changes in the terms and conditions of settlements with counterparties may also cause the need for lending.

working assets, time of turnover, financial model, financial cycle, own working capital, net working capital, sustainable growth model