MANAGEMENT OF STRUCTURE OF THE CAPITAL OF THE METALLURGICAL COMPANY, AIMED AT GROWTH OF MARKET CAPITALIZATION

Abstract

A method to manage the structure and volume of the working capital of the enterprise is being evaluated. This method could be utilized to provide conditions to raise the enterprise’s market capitalization. Rating valuations oriented at the increase of the market capitalization are formulated. They are aimed at improvement of the effectiveness of utilization of the enterprise’s working capital. The original values of the rating valuations and their optimal values are calculated; the effectiveness of the utilization of the working capital and of the short term accounts payable that is driving the increase in the market capitalization is analyzed. It is concluded that the volume of the working capital and the size of the short term accounts payables are not always optimal for the effective functioning of the enterprise.