capital structure meaning
[Business]
noun [C,U]
noun [C,U]
(Finance )
the way in which a company obtains money for its business activities:
Their capital structure consists of 200 000 ordinary shares of five euros each.
The company has a fairly complex share and loan capital structure.
[Economics]
= financial structure
The balance between the assets and liabilities of a company, the nature of its assets, and the composition of its borrowings. The assets may be fixed (tangible or intangible) or current (stock, debtors, or creditors); the borrowings may be long- or short-term, fixed or floating, secured or unsecured. Ideally the assets and liabilities should be matched.
See also:
[Finance]
The makeup of the liabilities and stockholders' equity side of the balance sheet, especially the ratio of debt to equity and the mixture of short and long maturities.
Examples
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