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Research Article | Open Access
Volume 4 | Issue 8 | Year 2017 | Article Id. IJEMS-V4I8P109 | DOI : https://doi.org/10.14445/23939125/IJEMS-V4I8P109

A Study on Capital Structure Analysis of Selected Pharmaceutical Companies of Gujarat

Dipak J. Shah

Citation :

Dipak J. Shah, "A Study on Capital Structure Analysis of Selected Pharmaceutical Companies of Gujarat," International Journal of Economics and Management Studies, vol. 4, no. 8, pp. 46-47, 2017. Crossref, https://doi.org/10.14445/23939125/IJEMS-V4I8P109

Abstract

Capital structure is combination of various source of capital use by the company, normally it includes two types of funds (i) own funds and (ii) loan funds. Own funds includes equity capital, preference capital, and reserves and surplus while loan fund includes long term loans secured and unsecured like debenture, loan from financial institutions, loan from banks and public deposits etc. From the analysis of capital structure of selected pharmaceutical companies of Gujarat the researcher can be concluded that capital structures of the all selected companies are levered. Proportions of owner’s funds are more as compare to debt fund. Overall ratio of own funds and loan fund founds were found 72 percent and 28 percent respectively. Capital structure of all selected companies are not identical in all manners these are significantly different.

Keywords

Capital Structure, Levered and Unlevered, Own funds, Loan funds.

References

[1] Annual reports of selected pharmaceutical companies of last 5 years from 2010-11 to 2014-15
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