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 ?
Since the publication of Durand's work (1952) and Modigliani and Miller (1958) that generated the debate about the companies' capital structures, where many empirical studies have been dedicating in the verification of a great capital structure verification.
Academically it adds to the already limited empirical studies on capital structures involving panel data models.
Different cultures and social norms prefer different capital structures.
Typically, data on capital structures show, first-lien loans use 60 to 80 percent of a company's assets, including intangibles, as collateral; second-lien borrowings cover whatever remains.
Empirical evidence supporting the predicted positive relation between firms' capital structures and their marginal tax rates is scarce.
The capital structures of legally independent companies are thus interconnected via an aggregated capital structure (Lee 1986).
With respect to 1999, I believe that capital structures will be akin to baking a cake, i.
Companies with complex capital structures should present basic and diluted EPS for income from continuing operations and net income in the same way.
HPHC's capital structure is one-third comprised of surplus notes, as compared to its peers, whose capital structures do not contain contractual repayment provisions to external parties.
NEW YORK -- A new study examining the distribution of Fitch's Recovery Ratings in their first full year after launch has revealed that the most common driver of Recovery Rating changes has been changes in the amount of secured debt in issuer capital structures, affecting in particular Recovery Ratings on senior unsecured bonds.
banks are expected to remain active capital managers and it is anticipated that hybrid capital will become more prevalent in the capital structures of banks over time, said Fitch Ratings in its recently released 'U.
The need to wisely manage capital structures is driving many hospitals and health systems to better balance their missions with their margins.