The EBIT-EPS approach to capital structure is a tool businesses use to determine the best ratio of debt and equity that should be used to finance the business' assets and operations. At its core, the ...

The capital structure of a company directly impacts its profitability and ability to continue as a going concern. If a company is over-leveraged and cash flows are insufficient to meet recurring debt ...

Julie Young is an experienced financial writer and editor. She specializes in financial analysis in capital planning and investment management. Thomas J. Brock is a CFA and CPA with more than 20 years ...

Peter Gratton, Ph.D., is a New Orleans-based editor and professor with over 20 years of experience in investing, risk management, and public policy. Peter began covering markets at Multex (Reuters) ...

Most private companies don’t spend much time thinking about their capital structure. A few people own the business, and they typically have a relationship with a commercial bank that works well for ...

Capital structure theories seek to explain why businesses choose different mixes of debt and equity to finance their operations. Banking firms represent a special case because of certain unique ...

Companies use financial statements to track and monitor their financial and operational performance and health. The balance sheet provides a snapshot of what a company owns and owes at a specific ...