Abstract
Aim: The research aims to identify the interrelation between the capital structures and financial performances of different food manufacturers currently operational in the UK.
Method: The study would proceed with a secondary quantitative approach that involves collecting data through existing research and financial reports. This was achieved from three food and beverage manufacturing companies’ annual reports. The data would comprise data collected in the recent three years, which are; 2018, 2019, and 2020 to measure the financial performance of the food and beverages manufacturing companies.
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Manufacturing companies evolve with the technological advancement initiated through the financial performance of the company. Analysing the financial measures of the company is represented through the capital structure and financial performances leading the company toward certain advancements (Kumar et al., 2021). Xie et al. (2019) indicated the company’s fiscal performance also demonstrates the financial health of the organisation, which can improve by enhancing the internal and external forces. Furthermore, the chosen factor, the capital structure, helps to increase the business’s profit margins and improve the returns within the highly competitive market. However, innovation within the manufacturing sector requires high finances to improve the company’s financial performance and capital structure.
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Abel, AB, 2018. Optimal debt and profitability in the trade-off theory. The Journal of Finance, 73(1), pp.95-143.
Abeywardhana, D.Y, 2016. Impact of capital structure on firm performance: Evidence from manufacturing sector SMEs in the UK.
Alabdullah, T.T.Y., Laadjal, A., Ries, E. and Al-Asadi, Y.A.A., 2018. Board features and capital structure in emerging markets. Journal of Advanced Management Science, 6(2).
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