CAPITAL STRUCTURE AND ITS IMPACT ON PROFITABILITY: A STUDY BASED ON TATA STEEL LIMITED

The capital structure is the mixture of debt capital and equity capital that the firm uses. The choice of appropriate source of fund for capital structure is one of the major policy decisions taken by a firm. In this paper an attempt has been made to study the capital structure and its impact on profitability by the help of analysing the last five years balance sheet and financial position through various ratios and components of capital. To achieve the objective of analysing the capital structure of the steel industry component wise dominance and a relationship between the capital structure and profitability of steel industry by taking last five years annual reports of TATA STEEL LTD. It has been observed from the study that shareholders fund has a positive correlation with the element of non-current liabilities but contains a mixed impact with current liability. On the other side, from the profitability point of view, debt equity ratio has a positive impact on price earnings ratio and dividend payout ratio which implies debt capital will improve on profitability measurement ratios.资本结构（capital structure）指企业所采用的债务资本（debt capital）与权益资本（equity capital）的组合。为资本结构选取合适的资金来源，是企业作出的重大战略决策之一。本文通过各类资本比率与资本构成分析，结合企业近五年的资产负债表与财务状况，尝试探究资本结构及其对盈利能力的影响。为达成研究目标，本文以塔塔钢铁有限公司（TATA STEEL LTD.）近五年的年度报告为样本，分析钢铁行业资本结构的构成占比，并探究钢铁行业资本结构与盈利能力之间的关联。研究结果显示，股东资金（shareholders fund）与非流动负债（non-current liabilities）呈正相关关系，而与流动负债（current liability）则存在混合影响效应。另一方面，从盈利能力视角出发，债务权益比率（debt equity ratio）对市盈率（price earnings ratio）与股利支付率（dividend payout ratio）均存在正向影响，这意味着债务资本能够优化盈利能力相关衡量指标的表现。