Žemaitijos pienas jsc capital structure analysis


Introduction. The main concept of capital structure. What is capital structure. The main types of capital structure. Company growth opportunity checking capital structure. Profitability as capital structure leverage. Firm‘s size as a determinant of capital structure. Firm size depends of liquidity ratio. Capital structure and risk. Optimal capital structure. Financial risk. Agency Costs in capital structure. Introduction of “Žemaitijos pienas” JSC. “Žemaitijos pienas” JSC formation of the capital structure analysis. Methodology of “Žemaitijos pienas” JSC research. “Žemaitijos pienas” JSC relative ratio analysis. „Žemaitijos pienas“ JSC 2006-2015 capital structure analysis using WACC. „Žemaitijos pienas“ JSC optimal capital structure by using EVA model. Altman Z-Score. Conclusions. References. Annexes.


The research problem and relevance. Many companies have taken the decision based on the capital structure theories. There is a classic capital structure theory and traditional and modern capital structure approaches that different assumptions and factors influencing corporate financing decisions. Existing capital structure approaches are not always able to explain on what basis the company chooses the debt to equity ratio. Appropriate capital structure choice can guarantee a profitable and long-term undertaking. Financial stability and the risk of insolvency problems primarily associated with leveraged capital structure of the size, or simply leverage level. In the selection of the most rational alternative for attracting financial resources, it is necessary to identify and evaluate the factors affecting the adoption of strategic financing decisions. Which of the existing models best reflects the current behavior of the firms and the risk factors for CEOs financing decisions taken so far are still a scientific problem.

Work Objective: Analyze “Žemaitijos pienas” JSC capital structure. Analysis includes profitability calculations by checking cost of debt, cost of equity, relative ratio analysis, market value of the firm equity, market value of the firm debt. From all these calculation weighted average cost of capital was found and also assessed bankruptcy possibility by calculating Altman-Z score.

Hypothesis: “Žemaitijos pienas“ JSC capital structure formation in economic terms potent in internal than external factors.

1. Analyze the traditional and the latest capital structure theories.

2. Perform years 2006 to 2015 “Žemaitijos pienas” JSC relative financial indicators and capital structure analysis.

3. Based on the analysis of scientific material and a study consisting of “Žemaitijos pienas” JSC optimal capital structure mode.

In order to reveal the master thesis topic and tasks set and hypothesis, logical sequence presented in

Work consists of: 29 pages without appendixes, 4 figures, 6 table, Appendixes included.

Key words: capital, structure, profitability, debt, equity, wighted average, optimal.

Research methodology - a set of methods for any work carried out or targeted to the totality of the use of the practice; technical operations and acts, their sequence and relationship. The AB “Žemaitijos Pienas” 2006 – 2015 years of activity analysis, based on comparative analysis of the indicators. Performance analysis calculated profitability, solvency / liquidity and turnover 2006- 2015 Financial Highlights. Indicators calculation methodology presented in the tables together with the results obtained. Indicators assessment was carried out on the basis of the Statistics Department of the evaluation criteria of the Methodology, which is presented in Annex 1. 2006 - 2015 years of financial indicators of performance indicator values ​​recoded into ordinal scale values ​​from 1 to 5 according to the Statistics Department of the evaluation methodology criteria:

Over the years 2006-2015 AB “Žemaiijos pienas” borrowed funds received varying rates of interest. Company 2006 - 2015 years debt capital rate is calculated:

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Žemaitijos pienas jsc capital structure analysis . (2017 m. Vasario 27 d.). https://www.mokslobaze.lt/zemaitijos-pienas-jsc-capital-structure-analysis.html Peržiūrėta 2020 m. Balandžio 07 d. 18:45
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