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 ?
As an associate at Mirus Capital Advisors, an investment bank in Burlington, Massachusetts, Bernsetein supported several sell-side M&A transactions, evaluated sources of finance and advised clients on optimum capital structure.
Dana Gas continues to assess various options for its optimum capital structure and will update the market when appropriate.
But a second line of research--by Kim (1978), Baxter (1967), Lee and Barker (1977), Scott (1977), Barnea, Haugen and Senbet (1981), Chen (1978), Chen and Kim (1979), and many others--has established more formally that unique level of optimum capital structure does indeed exist for a firm if market distortions caused by taxes, bankruptcy costs, agency problem, informational asymmetry, etc.
We are continuing to review our future capital needs and optimum capital structure, as we evaluate future opportunities for the Company.
The conference will provide insight into achieving the optimum capital structure and provide pointers on lining up the appropriate sources of capital.
We are currently evaluating our future capital needs and optimum capital structure, and anticipate that we will refinance our outstanding Senior Notes and revolver in the first quarter of 2007.
The separation of the two companies will provide financial flexibility for Pratt Hotel in the capital markets, enabling it to pursue its optimum capital structure and operating strategy," said Jack E.
Stewart said, "The current debt issuance and the previously announced $1 billion increase in the Company's share repurchase program provide the Company with the opportunity to enhance long term shareholder value while maintaining financial flexibility with a more optimum capital structure and preserving the Company's commitment to a strong credit profile.
The Deloitte & Touche Real Estate Group provides high value business and tax consulting services to real estate companies including property tax consulting, state income and franchise tax consulting, and planning for optimum capital structure and access to capital markets.
Requires a medium-level understanding of microeconomics, international business administration, long-term finance and optimum capital structures, the nature of organizational decision making, and the related communication and management involved.