The Capital Structure Of The Company

Finding the perfect capital structure in terms of risk and reward can ensure a company meets shareholder expectations and protects a firm in times of recession. Capital structure refers to how a business puts its money to “work”. The two forms of capital structure are equity capital and debt capital. Both have their benefits and limitations. Striking that perfect balance between the two can mean the difference between thriving versus trying to survive.

Healthcare organizations have a way of handling the issues of the capital structure. The policy of the optimal capital structure in a health institute ensures that the financial strength of the company is obtained. Health organizations need to fund their projects for the sake of smooth running of the activities. However, some of them cannot be able to sell stocks to the public since they are non-profit organizations. Capital structure is a dynamic aspect; instead of static. It depends on the socio-economic sector and the conditions the company is operating in. there are three first types of approaches an organization can take when it comes to the optimal capital structure. It has to do with the balancing between equity and debt.

Zara is a name that seems to always come up when people talk about Spanish fashion. It is one of Spain’s most famous clothing brands and Zara stores can be found all over the world. The company was founded in 1975 by Amancio

Marked as the first prestigious venture of the Inditex group the first store of Zara, the chain of Spanish fashion stores came into reality on central A Coruna Street in 1975. In 1985, Amancio Ortega integrated Zara in a new holding company, Industria de Diseno Textil, INDITEX S.A.

Inditex group is a Retail fashion group with the famous brands as Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara home, and Uterque . This group has presence in 92 markets. They recently launched Zara into the Vietnam market in September’2016 in Ho Chi Minh City. The Chairman and CEO of Zara is Pablo Isla. Inditex is a fashion group, started in Spain1975. It is a textile design, manufacturing and distribution firm. This firm operates with full integration of bricks and mortar stores and online sales. It operates in 39 markets with their online sales, and it has a total of 7096 stores worldwide.

Capital structure shows that how a firm’s assets have been established debt and equity, it is very important in a firm, because it is related to the capacity of the company to suit the needs of its stakeholders. The capital structure impacts on the performance of the firm, because it can influence the top management of the company decision making (Hitt, Hoskisson and Harrison, 1991).For example, a company has 20million in equity and 80 million in debt. It can be defined as 20% equity-financed and 80% debt-financed. The ratio of debt to total financing companies, 80% in this example, is called the leverage of the company. In reality, the capital structure may be very complex, including dozens of sources. Gearing ratio is the capital from outside the business by the company adopted, such as taking a short term loan (Capital Structure Overview and Theory 2014).

Over the years, what we know as the retail industry has changed. With fast access to information and increasing demand from customers, the retail industry have been fighting to overcome challenges to keep up with the changing times. Zara, a flagship brand under the Inditex Company (Industrias de Deseno Texti S.A) founded in 1975, achieving huge success within the retail industry in most focuses of operation.

The world’s largest fashion retailer, Zara’s Indian unit Inditex trent which is a 51:49 Joint venture partnership between Spanish retailer Inditex SA with Tata Group’s retail arm trent has witnessed a phenomenal rise in India’s fashion retail sector. Incorporated in 2009-2010, Zara India has been the fastest fashion brand in India to clock profits. In the financial year 2011, Zara India made net profits of 22.5 crore while in the financial year 2012, it made net profits of 38.3 crore on sales of 260 crore. In the year 2013, Zara clocked a staggering 56% growth in sales as it earned net profits of 45.19 crore on annual sale of 411.19 crore. According to Economic Times, this is “over six times more than the country's largest apparel brand Louis Philippe and a tad higher than the country's largest department chain Shoppers Stop”. Zara has 13 stores in Mumbai, Delhi, and Bangalore. It is believed that the company is

Zara is established in 1975, as the flagship brand of Inditex group, which founded by Amancio Ortega. In a short period, Inditex group has become one of the world’s top fashion retailers with more than 4000 stores across 82 countries around the world and more than 50% is accounted as Zara’s. Another Inditex brands which operate worldwide are Massimo Dutti, Oysho, Stradivarius, Zara Home, Pull and Bear, and Uterque. By seeing the Inditex’s brands list, it can be concluded that Inditex almost covers all aspect in fashion industry (Zara 2008).

Zara is one of the top clothing brand all over the world. This is the number one competitor of Uniqlo and all other brand. It has got 1603 store in 78 countries of the world. Those stores are located in world largest cities. This retailer proved that international

Zara is the flagship chain store of the Inditex group (Industria de Diseno Textil), encompassing many self-designed different fashion styles from daily clothing to formal suits, evening dresses and business wear. Their stores feature low-costs lookalike products of popular high-end clothing fashion. The Spanish corporation Inditex is the world`s largest fashion

Zara is a fashion company founded by Amancio Ortega in Spain in 1975. It is part of Inditex holding company, a large fashion retail chain that operates five other clothing brands. Since its inception, Zara has been financially very successful as it contributes the most to Inditex’s overall revenue. Also, Zara’s fast growth is represented by its massive global presence; it has stores all over the world from Americas to Middle East to Europe, its principal market. In my analysis, Zara’s competitive advantage lies in its ability to mass produce a large range of highly demanded latest designer clothes faster than its other competitors in the industry. By virtue of being first in the

ZARA is an understood Spanish garments brand well known for its high-speed answer, which is considered as a win variable for the organization and obtaining competitive edge over its rivals around the world. Style is about new and in vogue garments, ZARA's stock administration and distribution strategy are the key components behind its high-speed answer procedure. ZARA has outlets in 86 nations, including Europe, United States, Middle East and Asia. In 2012, Inditex the guardian organization of ZARA has asserted US$20.7

Zara is one of the largest international fashion companies and has over 2000 stores located across 88 countries. It is part of the large distribution group Inditex, which also owns brands such as Pull & Bear, Stradivarius and Bershka.

Zara is a clothing company that was founded in 1975 and came from Spain. Its under Inditex group which owns other brands such as Massimo Dutti, Pull & Bear, Oysho, Uterques and many more companies. Zara grew very fast and currently in 2012 has 1,617 stores worldwide. With a large name in the fashion industry, besides that, Zara faces tough competition internationally including H&M, Benetton, and GAP. In order to keep up with the speed chic, Zara need to keep up also with the information system to run their business.