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capital structure
noun
the apportionment of all the financial resources of a business, in equity, bonds, etc.
Example Sentences
The company’s weak risk-adjusted capitalization and low U.S. dollar liquidity are offset in part by its access to capital markets and “prudent management of its capital structure,” the agency wrote.
In the rating release, S&P said: “We view Strategy’s high bitcoin concentration, narrow business focus, weak risk-adjusted capitalization, and low U.S. dollar liquidity as weaknesses. These are only partially offset by the company’s strong access to capital markets and prudent management of its capital structure, including maintaining no maturities in the next 12 months and financing its business primarily with equity.”
First Brands’ capital structure might have held up indefinitely, if not for some unexpected developments in the financial markets.
For retirement savers, this consistency, regular interest payments and senior position in the capital structure provide a good balance between income and downside protection.
“Our capital structure hasn’t materially changed in 80-plus years,” Strammello said.
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