Capital Structure and Profitability A Correlation Study of Selected Pharmaceutical Companies of India
Capital structure plays and important role in for the profitability of the company but there are many other factors that affect the profit of the company i.e. management, pricing policy, Advertisement etc. .The research was undertaken to know the relationship between capital structure and profitability of 4 listed companies of pharmaceutical sector. The data has been analyzed by using descriptive statistics and correlation analysis to know the relation between considered variables. It shows that negative relation between the debt equity and other variables like net profit, capital employed and return on net worth but the relation is no significantly negative.
Profitability, Capital Employed, Debt Equity, Return on Net Worth