Capital Structure and Leverage Analysis of The True Sai Works

Authors

  • P. Vanitha Department of Management, M. Kumarasamy College of Engineering, Karur, India
  • P. S. Kaviya Department of Management, M. Kumarasamy College of Engineering, Karur, India

Keywords:

Capital structure, Debt, EBIT, Leverage, Profitability

Abstract

This study examines the influence of capital structure and leverage analysis on the performance of the company. It is measured using ratio analysis. This research has been done to analyze the capital structure and leverage of The True Sai Works dealer of Tata Motors for the last five years from 2015-2020, in order to find out the impact and the factors which influenced the capital structure decisions of regarding profitability and performance. to know the Growth of the Company and to understand about the three types of leverage involved in the company. And at last to find out the relationship between the Leverage and Profitability. Finally from the analysis it was found that debt to assets ratio indicates that company own more assets than liabilities, debt to capital ratio indicates that company is considered to be less risky, debt to equity ratio indicates that company is more funded by debt, operating leverage states that the contribution of the company was fluctuated positively, financial leverage states that from the last five years the EBIT & EBT of the company was decreased and combined leverage states that the operating and financial leverage of the company was improperly fluctuated.

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Published

2021-04-23

How to Cite

[1]
P. Vanitha and P. S. Kaviya, “Capital Structure and Leverage Analysis of The True Sai Works”, IJRESM, vol. 4, no. 4, pp. 78–81, Apr. 2021.

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Articles