A Study on Capital Structure Pattern of JSW Steel Industry Tamilselvi J.1, Neela M.2, Thamaraiselvi S.2 1Head, Department of Business Administration, Cauvery College for Women, Tiruchirappalli, Tamilnadu, India. 2Assistant Professor, Department of Business Administration, Cauvery College for Women, Tiruchirappalli, Tamilnadu, India. Online published on 16 March, 2018. Abstract In this paper, an attempt has been made to study the “Capital Structure Pattern of JSW STEEL Industry”. An analysis of long-term solvency, assessment of debt-equity, debt to total fund and justification for the use of debt in JSW STEEL Industry through the application of ratio analysis and statistical test has been undertaken. The time period considered for evaluating the study is five years i.e. from 2013 to 2017. It is found that long term funds had contributed more on an average 72.59 percent of total funds when compared to short term funds (27.40 percent) in JSW STEEL Industry. Long term funds had apportioned nearly two-third of total funds. Shareholders’ funds had occupied on an average 34.57 percent of the total funds when compared to the borrowed funds (38.01 percent). The JSW STEEL Industry had shown an inclination in strengthening long term funds consisting of both shareholders funds as well as long term borrowed funds in order to finance its assets requirement. JSW STEEL Industry mostly depended on equity financing. So, the financial risk of the company is low, but it could fail to enjoy the advantages of financial gearing. JSW STEEL Industry should raise the debt funds to bring the optimum capital structure for improving the financial performance of the company. A higher interest coverage ratio is desirable, but too high ratio is some of the years of the study indicate that the JSW STEEL Industry is very conservative in using debt, and it is not using debt to the best advantage of the shareholders. Top Keywords Debt-equity ratio, Debt to total fund ratio, Interest coverage ratio and structure of total funds JSW STEEL industry. Top |