Definition of capital structure in US English:

capital structure


  • The particular distribution of debt and equity that makes up the finances of a company.

    ‘restructuring our operations and capital structure will enable the firm to emerge as a stronger company’
    • ‘They need to understand the risk of carrying debt in the capital structure, but also to see that equity has a cost and a risk, too.’
    • ‘When Shindler joined the wireless company in 1996, Nextel didn't have "an appropriate capital structure," he says.’
    • ‘When we look at the balance sheets of many local cooperatives, we see capital structures largely composed of equity.’
    • ‘The optimal capital structure of a firm is solely determined by the leverage ratio where the average cost of debt equals the rate of return on productive investments.’
    • ‘To make that leap - from local metropolitan utility to regional holding company - has meant shedding all ties to power generation as well as creating an entirely new capital structure.’