A Study on Capital Structure of Wonjin Autoparts India Private Limited at Chennai

Capital structure is an important part of financial management. It determines how much debt and equity a company uses to fund its operations and growth. This study looks at the capital structure of Wonjin Autoparts India Private Limited in Chennai and its effects on financial performance and stability. The goal is to understand how the company manages its financial resources to achieve the best efficiency and profitability. The study explores key factors that impact capital structure decisions. These include cost of capital, risk, profitability, and financial flexibility. It also assesses how debt and equity contribute to maximizing shareholder value. The research takes a descriptive approach using secondary data like financial statements and published reports. The findings show that a good mix of debt and equity improves financial performance and reduces risk. Relying too much on debt raises financial risk, while depending too heavily on equity can lower returns. Thus, keeping a balanced capital structure is vital for sustainable growth. This study concludes that managing capital structure effectively is crucial for enhancing financial stability, operational efficiency, and the long-term success of the organization.