2025, Vol. 6, Issue 2, Part Q
Capital structure analysis of power industry: A case study of power grid corporation ltd
Author(s): Satyendra Kumar and Mamta Rawat
Abstract: Capital structure or capital mix is very important to control the overall cost of capital in order to improve the earnings per share of shareholders. The long term solvency of a firm can be analysised by using leverage or capital structure ratios which highlight its ability to assure the long-term creditors with regard to (i) payment of interest during the period of loan and (ii) reimbursement of principal on maturity or in predetermined of installments at due dates. Thus the long term creditors judge the reliability of a firm or the relationship between borrowed funds and owner’s capital. The present study analyzing the capital structure of power industry. The study overview five year balance sheet of the power gird from March 2021 to March 2025. Company mostly depends on outside capital. The growth rate of EPS is 33.36% in last five years and interested coverage ratio grow about 31.71%. DE ratio has negative growth ratio i.e. -30.91.
DOI: 10.22271/27084515.2025.v6.i2q.884
Pages: 1568-1572 | Views: 101 | Downloads: 53
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How to cite this article:
Satyendra Kumar, Mamta Rawat. Capital structure analysis of power industry: A case study of power grid corporation ltd. Asian J Manage Commerce 2025;6(2):1568-1572. DOI: 10.22271/27084515.2025.v6.i2q.884
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