capital structure

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Capital structure

The makeup of the liabilities and stockholders' equity side of the balance sheet, especially the ratio of debt to equity and the mixture of short and long maturities.

Capital Structure

How a company finances its operations. The three most basic ways to finance are through debt, equity (or the issue of stock), and, for a small business, personal savings. Capital structure usually refers to how much of each type of financing a company holds as a percentage of all its financing. Generally speaking, a company with a high level of debt compared to equity is thought to carry higher risk, though some analysts do not believe that capital structure matters to risk or profitability.

capital structure

capital structure

the composition of a JOINT-STOCK COMPANY'S long-term capital which reflects the source of that capital, for example SHARE CAPITAL and long-term LOAN CAPITAL. See CAPITAL GEARING.

capital structure

See capital stack.
References in periodicals archive ?
The acquisition will potentially increase MMC's consolidated gearing ratio to about 0.
After the mining company took on its second debt package in a period of just four months, the gearing ratio of gold miner Newcrest Mining shows little sign of falling.
NSX-listed real estate company, Oryx properties has set a target of a 40% gearing ratio by mid next year, the Economist has established.
Gearing ratio indicates the extent to which debt financing is used relative to the total capital employed.
8 million, with the equity ratio standing at 40%, up from 35%, and the gearing ratio at 36%, up from 29%.
Only 27% of investors (at the corporate borrowing level) have a gearing ratio of more than 50%, with the majority in the range of 41%-50% gearing.
But the debt gearing ratio was virtually unchanged at 21.
As at 30 June 2005, the gearing ratio (total liabilities divided by total assets) was 70.
Considering the weaker CPO prices and KLK's larger debt load, we expect its gearing ratio and FFODC to hover at a respective 0.
The Group's gearing ratio (the ratio of consolidated net bank borrowings to shareholders' fund and minority interests) was 1, as compared with 1.
In spite of a smaller equity base attributable to large foreign currency translation adjustments, the Group's adjusted gearing ratio remained unchanged y-o-y at 0.
As at March 31, 2004, the aggregate of the Group's shareholders' funds and minority interests was HK$1,551 million and the Group's gearing ratio (the ratio of consolidated net bank borrowings to shareholders' fund and minority interests) was 1.