An Analysis of Capital Structure and Financial Sustainability of Kerala Automobiles Private Ltd.

Abstract

This study examines the capital structure and sustainability of Kerala Automobiles Limited.. The research focuses on analyzing the company’s debt-equity composition and its impact on financial stability and long-term sustainability. Secondary data collected from annual reports and financial statements were used for the analysis. The study evaluates important financial indicators such as debt ratio, equity ratio, profitability, and liquidity position. It also examines how the company managed its financial resources during changing economic conditions. The findings indicate that an effective capital structure plays a significant role in maintaining organizational sustainability. The study highlights the relationship between financial performance and sustainable growth of the company. The research provides insights into the challenges faced by Kerala Automobiles Limited in balancing debt and equity financing. Overall, the study concludes that a well-planned capital structure contributes positively to the long-term sustainability and operational efficiency of the company.