Asian Journal of Management
  • Year: 2019
  • Volume: 10
  • Issue: 3

The Impact of Capital Structure on Profitability of XYZ Limited

1MBA II Year, Department of Business Administration, Avinashilingam Institute for Home Science & Higher Education for Women, Coimbatore

2Assistant Professor, Department of Business Administration, Avinashilingam Institute for Home Science & Higher Education for Women, Coimbatore

*Corresponding Author E-mail: sindusavi103@gmail.com

Online published on 3 January, 2020.

Abstract

The Capital Structure and Profitability are very vital matters in the development and survival of the business. This study hunts to find out the impact of capital structure on profitability. The present study bounded XYZ limited over the period of 5 years from 2014 to 2018. The analysis tools used in this study are correlation and regression analysis. In this study, Capital structure is represented by three variables, they are Debt Equity Ratio, Long Term Debt Ratio and Short Term Debt Ratio. The profitability is expressed by Return on Assets (ROA). As Per the findings there is a significant impact of Capital Structure on profitability of XYZ limited. There is a significant relationship between capital structure and profitability of XYZ limited.

Keywords

Capital Structure, and Profitability