A Conceptual Study on Comparison of Capital Structure of Selected Auto mobile Companies of India
DOI:
https://doi.org/10.31305/rrijm2026.v06.n02.002Keywords:
Capital Structure, Debt, Equity, Automobile Industry, Financial Management, Companies in IndiaAbstract
The capital structure is one of the important financial decisions taken by a firm. it is the combination of debt and equity used to finance business operations and long-term investments. A proper capital structure helps a company to minimise its cost of capital, increase profitability, ensure financial stability, and maximise shareholders’ wealth. The Indian auto mobile industry requires huge capital for manufacturing, research and development, technological innovation and business expansion. Therefore, it is essential to choose the right combination of debt and equity for sustainable growth. The paper ends by noting there is no one perfect capital structure for all firms. Each auto mobile company chooses a pattern of financing based on its operating requirements, profitability, opportunities for growth and ability to bear risks. A sound capital structure supports long-term financial performance, builds investor confidence, and improves the company’s competitive position in the marketplace.
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