Analysis of the organisation's borrowed capital

Abstract

Subject. Due to increasing competition and an increasingly complicated social and economic environment, capital configuration in organisations requires a very flexible approach. The corporate tradition of relying only on the company’s own funds can result in many rapidly disappearing business opportunities being missed while operating based on mainly borrowed resources can result in unjustified risks to the company's solvency and financial stability. A comprehensive analysis of how borrowed capital is used is necessary for making informed and immediate decisions with regard to raising capital and structuring it. As a result of the state’s policy to increase transparency and digitalise the economy, many sources of information about the activities of organisations have become publicly available. These data allows conducting a comprehensive analysis of how the borrowed capital is used. Purpose. Developing recommendations for the analysis of the borrowed capital of organizations using open data. Methods. The research results were obtained using analysis, synthesis, analogy, classification, and other methods and approaches. Results. The article continues the discussion about the meaning and content of the term “borrowed capital”; it justifies a rejection of using the category “attracted funding” for the purpose of economic analysis; it proposes a methodological approach to the comprehensive analysis of the organisation’s borrowed capital; it demonstrates the procedure for such analysis and the interpretation based on the example of a telecommunication company and with a due consideration of the peculiarities of the current social and economic situation. Conclusions. The proposed recommendations for the analysis of borrowed capital are universal and can be applied in organisations outside the public and financial sectors that produce standard (not simplified) financial statements and annual reports.