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what is capital structure mean

Hi,
Capital Structure is referred to as the ratio of different kinds of securities raised by a firm as long-term finance. The capital structure involves two decisions-

1. Type of securities to be issued are equity shares, preference shares and long term borrowings( Debentures).

2. Relative ratio of securities can be determined by process of capital gearing. On this basis, the companies are divided into two-
1. Highly geared companies- Those companies whose proportion of equity capitalization is small.
2. Low geared companies- Those companies whose equity capital dominates total capitalization.

For instance - There are two companies A and B. Total capitalization amounts to be Rs. 20 lakh in each case. The ratio of equity capital to total capitalization in company A is Rs. 5 lakh, while in company B, ratio of equity capital is Rs. 15 lakh to total capitalization, i.e, in Company A, proportion is 25% and in company B, proportion is 75%. In such cases, company A is considered to be a highly geared company and company B is low geared company.

friend,
its a civil engg. point,it means that on the base structure of a body has a efficiency to divulge the total force exerted to withstand the ground.

Originally Posted by mohamnmed

what is capital structure mean

What is the meaning of Capital Structure?

In finance capital structure means the permanent long term financing of a company which includes
long-term debt,
common stock
preferred stock, and
retained earnings.

hi friend,
Capital structure refers to the financial structure of the company or the financial infrastructure of an industry.

the with good capital structure is said to be high in market
and can compete in the running strategy of the market.

capital strategy can be measured as per income of the person working in the company and total amount that left after that in the profit of the industry.
so this all refers to the capital structure or the strategy of of various industry or company or anything.

Capital structure is the permanent long-term financing of a company, including long-term debt, common stock and preferred stock, and retained earnings.

It differs from financial structure, which includes short-term debt and accounts payable.

It is a framework of different types of financing employed by a firm to acquire resources necessary for its operations and growth.

here is the definition of capital structure
Capital Structure is the permanent long-term financing of a company, including long-term debt, common stock and preferred stock, and retained earnings. It differs from financial structure, which includes short-term debt and accounts payable.




here i am attaching an attachment containing the wikipedia file for the Capital structure. go through the attachment to get a brief idea about capital structure.

What is the meaning of Capital Structure?


Capital Structure Ordinarily Implies The Proportion Of debt And Equity In The Total Capital Of A Company.


Some Other Defination -


The Term Capital Structure Is Frequently Used To Indicate The Long Term Sources Of Fund Employed In A Business Enterprise.

Capital Structure Is The Permanent Financing Of the Firm, Represented By Long Term Debt, Preferred Stock And Net Worth.


So, The Capital Structure The Mix of Different Sources Of Long Term funds Such As Equity Shares, Preference Shares, Long Term Loans Or Debts Like Debenture Or Bonds, Retained Earnings Etc. In The Total Capitalisation Of The Company.

Hello friend,
the capital Structure means that long term fund of an organization. suppose an organization having principle to the fund of employee then long term fund will be called capital structure of tat company.
In short you can say total gain minus total investment.

capital structure refers to the means through which a company finances its long term

assets or resources through a combination of equity, debt, or hybrid securities

capital structure mainly comprises of debt and equity.

equity is generally understood as shares/ownership... and debt is like loan

a company which has total $ 100B finance of which 25 is equity and rest is debt

will be called to have 1:3 gearing.

further there are some Hybrid finances as well which combine features of debt and shares
The capital structure is how a firm finances its overall operations and growth by using different sources of funds.
Read
http://en.wikipedia.org/wiki/Capital_structure

The meaning of capital structure is The permanent long-term financing of a company, including long-term debt, common stock and preferred stock, and retained earnings. It differs from financial structure, which includes short-term debt and accounts payable.

All information about your question of Capital structure, you can find on the Wikipedia.

DEFINITION


A mix of a company's long-term debt, specific short-term debt, common equity and preferred equity.


The capital structure is how a firm finances its overall operations and growth by using different sources of funds.

Debt comes in the form of bond issues or long-term notes payable, while equity is


classified as common stock, preferred stock or retained earnings. Short-term debt such


as working capital requirements is also considered to be part of the capital structure.

Hi,

Capital structure in financial parlance means the way in which a company designs its assets. It can be based on equity or based on debt. Mostly companies go in for a mix of both equity and debt to offset the risks involved.

If the company is more aggressive in nature they will go in for more of equity and less of debt.

If the company is more conservative then the company will go in for more of debt and less of equity.

hi


A mix of a company's long-term debt, specific short-term debt, common equity and preferred equity. The capital structure is how a firm finances its overall operations and growth by using different sources of funds.

Debt comes in the form of bond issues or long-term notes payable, while equity is classified as common stock, preferred stock or retained earnings. Short-term debt such as working capital requirements is also considered to be part of the capital structure.

Capital Structure !!!

Basically This Term is used in Finance, & Its refers to the aspect of Corporation Finance which assets through the combination of Equity, Hybrid securities or Debt.

Capital Structure is then the Composition of Structure of the Liabilities.

Like take an Example
A firm which sells around 20$ billion in Equity and 80$ billion in debt is said to be 20% equity Financed and 80% Debt Financed.

Even i have Attached a Presentation for Capital Structure you can have look on it.

Hello,

A word Capital Structure is related to FINANCE.

Meaning of Capital Structure: -

The permanent long-term financing of a company, including long-term debt,

common stock and preferred stock, and retained earnings.

Capital Structure is different from financial structure, which includes short-

term debt and accounts payable.


Good Luck

Capital Structure is the permanent long-term financing of a company, including long-term debt, common stock and preferred stock, and retained earnings. It differs from financial structure, which includes short-term debt and accounts payable
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CAPITAL STRUCTURE


A mix of a company's long-term debt, specific short-term debt, common equity and

preferred equity. The capital structure is how a firm finances its overall operations and

growth by using different sources of funds.

Debt comes in the form of bond issues or long-term notes payable, while equity is

classified as common stock, preferred stock or retained earnings. Short-term debt such

as working capital requirements is also considered to be part of the capital structure.

what is meaning of optimal capital structur ?

Ques. What is the meaning of Capital Structure?

Ans. Capital Structure refers to the means through which a company finances its long term assets or resources through a combination of equity, debt, or hybrid securities. Here, equity is generally understood as shares/ownership and debit is like loan.

which ratios should analysis in capital structure?