Capital structure and profitability analysis of Hydro Power Companies in Nepal

Abstract

This study has analysed the capital structure and profitability of selected listed hydro power companies in Nepal. The main objective of this study is to analyse and examine the capital structure and profitability and their relationship as well as the trend of overall performance in of Nepalese hydro power companies. The research design was based on descriptive and casual cooperative and sampled were collected by using based on hydro power companies established. Data collected and used secondary data from the annual report statements of the Nepalese hydro power companies. Analysis was based on data extracted from annual reports of the hydro power companies for the relevant period. Correlation and regression analysis were employed to examine the capital structure and profitability and their impacts. The return on assets and debt to equity ratio was used to measure profitability status whereas total debt to assets ratio & total debt to equity ratio was used to measure Efficiency position. The study covered seven listed hydro power (i.e., CHCL, BPCL, RADHI, SHPL, API, AKJCl and NPHC) in Nepal over a period of past 7 fiscal years from 2070/71 to 2076/77. Key Words: Capital Structure and Profitability Analysis of Hydro Power Companies in Nepal.