CAPITAL STRUCTURE AND PROFITABILITY OF NEPALI MANUFACTURING COMPANIES

Abstract

The objectives of research are set and they are; To assess the current status of total debt to total assets, total debt to equity ratio, leverage, liquidity, assets tangibility, size, return on assets and return on equity of Nepali manufacturing companies, to examine the relationship of total debt to total assets, total debt to equity ratio, leverage, liquidity, assets tangibility and size to the return on assets and return on equity of Nepalese manufacturing companies and to analyze the total debt to total assets, total debt to equity ratio, leverage, liquidity, assets tangibility and size impact to the return on assets and return on equity of Nepalese manufacturing companies. Descriptive and casual comparative research design has been employed. The descriptive statistics, correlation and regression analysis are conducted. The achievement of the objectives. The data are collected from annual report of the manufacturing companies. Sample are selected three sample manufacturing and secondary data of each 10 years from 2014-2023. The finding of the study is that the result the data flow of descriptive statistics the standard deviation seem higher and higher standard deviations means the higher level of fluctuation in the data flow. The return on equity, return on assets, and total debt to total assets, debt equity ratio, leverage, liquidity, assets tangibility and size are fluctuating in nature. The relationship of total debt to total assets, debt to equity ratio, leverage, liquidity, assets tangibility is significant to the return on assets. The total debt to total assets is significant relationship to the return on equity. The assets tangibility and size has not significant relationship to the return on equity. The debt to equity, leverage, liquidity, assets tangibility and sig have not significant relationship to the return on equity. The impact of total debt to total assets, debt to equity ratio, leverage and liquidity is significant to the return on assets and return on equity. The assets tangibility and size have not significant impact to the return on assets and return on equity.