Financial Statement Analysis
Capital structure refers to the way a company finances its overall operations and growth by using different sources of funds, primarily debt and equity. The mix between these sources influences a company's financial stability, risk profile, and cost of capital. Understanding capital structure is essential for evaluating how a company can generate free cash flow, how its future cash flows will be discounted, and how it manages financing cash flows to support its business objectives.
congrats on reading the definition of capital structure. now let's actually learn it.