The Capital Structure And Performance Evaluation In The Brewery Industry (A Case Study Of Nigerian Breweries Plc)

ABSTRACT

Capital Structure discusses a mix of debt and equity in financing a firm or how a company finances its operation using the debt and equity factor. Therefore, the purpose of this study is to determine whether the capital structure of Nigerian Brewery Plc has any relationship with its performance. Data were gathered from secondary sources, using Nigerian Breweries Plc financial statements and the data duly tested and analyzed using correlation which gave credence to the conclusion that the use of appropriate debt and equity ratio has resulted toe excellent profit performance following growth in turnover and that the industry's dividend per share have been on the increase, signifying financial stability. More so, to achieve further incremental improvement the study recommends that the industry should increase its proportion of debt in its capital structure mix to achieve a lower cost of capital as well as low tax rate. Effective costing and sales promotion techniques should be employed to achieve higher sales and the industry should encourage investment in allied industries that produces its needed raw materials to enable consistency in their production.