Imitation-dynamic model for calculating the efficiency of the financial leverage

Abstract

The article presents a simulation-dynamic model for calculating the financial leverage efficiency level. The model was developed on the basis of the system dynamics method using Powersim Studio tools. In the constructed model, the calculations were carried out on the example of PJSC «Koks», one of the largest Russian producers and exporters of metallurgical coke. The model was used as a tool to study the capital structure of the enterprise. As a result of the experiments, the level values of financial leverage efficiency, differential of financial leverage and financial leverage ratio were calculated. On the basis of the calculations, the conclusions were made about the quality of management of borrowed capital in the enterprise. In addition the assessment of the developed model of financial leverage efficiency was carried out; as a result of the assessment, both the model advantages and its disadvantages were indicated.