Capital Structure Practices- Industry wise Analysis of Companies

Abstract

Capital structure decisions are important for the financial soundness of the company. The main sectors covered under the study are Cement, Computer and Drugs and Pharmaceuticals for the purpose of analysis. An attempt has been made to analyze the various ratios like Debt-Equity ratio, Debt to total asset ratio and Current liability to total asset ratio which are related to capital structure. Each sector is analyzed with the help of last ten-year financial data. This study finds that the nature of industry influences the capital structure practices of corporate firms and allof the industry groups under study have marked inclination towards shareholder funds in their capital structure.