Solution Matrix • Cost-Benefit-Analysis

Financial structure

The term financial structure is similar in meaning to capitalization, but more inclusive.

Capitalization (usually synonymous with capital structure) is a measure of a company’s financial framework, covering the company’s underlying value as represented by the total securities issued, such as bonds, debentures, long-term liabilities or debt, and preferred and common stock.

A broader measure of this framework is a company’s financial structure, which includes all of the above but also short term liabilities such as accounts payable.

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