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capital structure

   Also found in: Wikipedia, Hutchinson 0.03 sec.
Capital Structure
The means by which a firm is financed.

Notes:
A firm can finance operations through common and preferred stock, with retained earnings, or with debt. Usually a firm will use a combination of these financing instruments.

The proportion of short and long-term debt is considered when analyzing capital structure. And, when people refer to capital structure they are most likely referring to a firm's debt-to-equity ratio, which provides insight into how risky a company is. Usually a company more heavily financed by debt poses greater risk.


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

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headquartered in Piano, Texas, has announced the completion of a major refinancing that significantly improves its capital structure, lowers interest expense, increases liquidity and provides greater financial flexibility, according to the company.
The key to obtaining capital is layering each piece of the capital structure together so that the completed capital stack can meet the owner's needs.
Neither the prescriptive nor the descriptive literature explicitly addresses the role of funding defined benefit pension plans as being integral to broader capital structure and operating policy decisions.
 
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