The term capital structure is used to describe the proportion of debt to the equity that a business utilises to fund its daily operations. This factor is critical in estimating a company's long-term viability because it affects both the cost of borrowing money and the profit accruing to shareholders. Considerations such as a company's industry, size, and financial goals determine the ideal capital structure. To ensure that their funding is consistent with their long-term objectives, firms should give serious thought to their capital structure.