Impact of Capital Structure on Profitability at the Kalkulam Co-Operative Credit Society

Abstract

This study examines the impact of capital structure on profitability at the Kalkulam Co- operative Credit Society, Thuckalay for the period of five years (2020-21 to 2024-25). The main objective of the study is to analyze how the society’s financial structure, including share capital, reserves, deposits, and borrowings, influences its profitability performance. The study is based on secondary data collected from the audited financial statements of the society. Various financial tools such as Debt-Equity Ratio, Equity Ratio, Proprietary Ratio, Leverage Ratio, and Profitability Ratios were used for analysis. The society maintained zero external borrowings during the study period, indicating strong financial independence and low financial risk. Profitability indicators such as net profit showed an improving trend, suggesting effective utilization of available funds and efficient financial management.