Consolidating Financial Analysis Tools in Determining The Financial Structure Indicators of The Arab Company For Livestock Development For The Period (2014-2019)

Abstract

Several different factors influence companies. Sometimes from within and other times otherwise, when making administrative and financial decisions, the economic structure is one of these factors. The financial position significantly impacts the company's decisions, especially those related to the fundamental aspects of investment, financing, and profit distribution. The method of financing represents the outcome of the preferential relationships and links between the benefits the company receives when the level of debt increases and the risk of bankruptcy, which prefers to cover the financing gap by issuing shares. This reflects on the company's profit levels, as the issue of balancing the capital structure between borrowing and owners' equity has become one of the essential points in the financial management of all companies. The study attained several results: the level of reliance on loans in the company was around 30–35%, the percentage of long-term loans was around 9%, the average cash-to-equity ratio was 8%, and the working capital was positive throughout the study period. It recommended a set of recommendations, including the necessity for the company to take several measures, including setting the upper limits for borrowing and forming a capital structure combination that suits its activities.