A Study on Capital Structure and Financial Performance of Selected Textile Companies in India

In this paper an attempt to identify the impact between Capital structure and financial performance of selected textile companies, for accomplishment of the objective, the data collected from the annual reports for ten years. The collected data is analyzed and computed to fit for drawing inferences; this study utilizes various ratios, correlation and compounded growth rate. The results revels that there exists a negative relationship between capital structure and financial performances. It is reflect the insignificant level of the selected textile companies in India. Hence Business companies mostly depend on the debt capital. Therefore, they have to pay interest expenses much.