GO
Loading...

Capital Structure: CNBC Explains

Capital structure is important to understanding how a business is run and financed, and can be easily evaluated by looking through a corporate balance sheet. Capital structure refers to the relationship between a company’s assets and liabilities, including how the assets are funded and the amount of debt managed by the firm. Salman Khan of the Khan Academy explains the concept with a side-by-side comparison of companies with different capital structures.

From this video, you’ll understand:

  • The basics of corporate capital structure
  • How capital structure affects owners’ equity

Contact CNBC Explains

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    To learn more about how we use your information,
    please read our Privacy Policy.
    › Learn More

Latest Special Reports

  • Financial advisors stress that now is the time for investors to get serious about year-end financial planning checkup.

  • File photo: Participants at a hacking conference in Germany

    A series of high profile cyber attacks has created huge economic opportunity as businesses look to fend off future attacks.

  • Is an active twist on passive investing the right portfolio move? An inside look at the rise of ETF strategists.

Central Banking Explained

Corporate Accounting Explained