Why do different industries have different capital structure?
The various industries experience different business environments. Consequently, such circumstances can cause differences in the capital structure. In a growth industry, the need for new investments and increased debt capital can be larger than in a mature industry.
How do you analyze the capital structure of a company?
You can calculate your company's capital structure by examining your debt-to-equity ratio, which you determine by dividing your liabilities (level of debt) by your total equity. The difference between your assets and liabilities determines your working capital or the amount of liquidity (current cash flow) you have.