Impact of capital structure on porfitability of listed cement industry in India

This paper is an attempt has been made so as to ascertain the impact of capital structure (CS) on the profitability (P) of the firm. This study is focused on cement industry. To proceed with the five cement firms were taken as sample, under convenience sampling technique. The study period is five years and completely based on secondary data. The data have been collectedfor the period of 5 years i.e. from the year 2008–09 to 2012–13 have been collected and considered for analysis. Correlation analysis (to analyze the impact of CS on (P)), in addition to descriptive statistics such as Mean, Standard Deviation, and Ratios have been used. The capital structure variables such as Debt to Equity, Debt to Asset, Interest coverage variables are taken as predictor variables and the profitability variables are taken as respondent variables to attain the objectives. The finding of the study have put forth that capital structure have negative impact on the profitability of the firms.