Capital structure analysis of a small enterprise-A case study of Raghunath Dye Chem Pvt. Ltd. Dr. Podile Venkateswararao.1, Kumar Fr. Kataru Anil2, Dr. Sree Siva Ch. Hema Venkata3 1Professor & Principal Investigator, Andhra Loyola Institute of Engineering and Technology, Opp. Poly Technic Post office, Vijayawada, Andhra Pradesh, India, Email id: vraopodile@gmail.com 2Assistant Director, Andhra Loyola Institute of Engineering and Technology, Opp. Poly Technic Post office, Vijayawada, Andhra Pradesh, India, Email id: kataruanilkumarsj@gmail.com 3Co-Investigator, Vijayawada, Andhra Pradesh, India. Email id: dreamworld7982@gmail.com Online published on 17 September, 2018. Abstract Finance decision is one of the important decisions of financial management in any Enterprise. Capital structure refers to the combination of debt and equity. The financial manger has to strike a balance between various sources of funds so as to maximise return of an Enterprise without affecting risk composition in the business. An optimal capital structure is very much essential to maximise the owner‘s wealth of any Enterprise. In this paper, an attempt is made to analyse the capital structure in Raghunath Dye Chem Pvt. Ltd. Raghunath Dye Chem Pvt. Ltd. is a Small Enterprise located in Kurnool district of Andhra Pradesh state in India. Raghunath Dye Chem Pvt. Ltd., was established in 1975. It has been manufacturing and supplying optical whitener products to the Global market for the Paper, Textile and Detergent industries. The total assets of the company are Rs. 1086.5 lakhs. In this paper composition of capital structure in the enterprise for a period of ten years is analysed. Leverage analysis was also done. Debt-Equity ratio, Proprietary Ratio, Solvency Ratio, Fixed Assets to Net worth Ratio, Fixed Assets Ratio, Current Assets to Proprietary Ratio and Interest Coverage Ratio are calculated for the study period. Chi-square test is used for testing Hypotheses. Top Keywords Debt-Equity Ratio, Degree Of Combined Leverage, Degree Of Financial Leverage, Fixed Assets Ratio, Solvency Ratio. Top |