A Study on Capital Structure and Leverage of Tata Motors Limited: Its Role and Future Prospects

This study examines the influence of capital structure on the performance of the company. It is measured using EBIT-EPS analysis. In this paper an attempt is made to analyze the capital structure of Tata Motors Limited during the period 2003-04 to 2012-2013, so as to understand the factors that influenced the capital structure decisions of the company and to know the impact of capital structure decisions on profitability and performance of the company. The company's performance is measured through EBIT-EPS analysis. Increase in the level of debt and net worth increases the debt equity ratio. Capital structure is the crucial decision to be taken by every business, the positives and negatives of these decisions plays a important role in determining the future of every business.