Capital structure analysis of a small enterprise-A case study of Radhika Vegetable Oils Private Limited Dr. Podile Venkateswararao.*, Kumar Fr. Kataru Anil**, Dr. Sree Ch. Hema Venkata Siva*** *Professor & Principal Investigator, Project: DST/NSTMIS/05/04/2017–18 Andhra Loyola Institute of Engineering and Technology, Opp. Poly Technic Post office, Vijayawada, Andhra Pradesh, India Email id: vraopodile@gmail.com **Assistant Director, Andhra Loyola Institute of Engineering and Technology, Opp. Poly Technic Post office, Vijayawada, Andhra Pradesh, India Email id: kataruanilkumarsj@gmail.com ***Co-Investigator, Project: DST/NSTMIS/05/04/2017–18 Vijayawada, Andhra Pradesh, India. Email id: dreamworld7982@gmail.com Online published on 10 October, 2018. Abstract 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 Radhika Vegetable Oils Private Limited. Radhika Vegetable Oils Private Limited is an Indian unlisted private Enterprise in the state of Andhra Pradesh. It was located at Garividi of Vizianagaram District. It is engaged in production, extraction and delivery of palm oil to major Vanaspati makers in India. This Small Enterprise has an annual turnover of Rs.2719.51 lakhs and total Assets of the company are Rs.993.4 lakhs as per 2015–16 accounts. 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 Capital Structure, Degree Of Combined Leverage, Degree Of Financial Leverage, Fixed Assets Ratio, Interest Coverage Ratio, Solvency Ratio. Top |