Abstract

This paper aims to evaluate the capital structure for industry and development company in Saudi araba, Wafrah. The financial statements for five consecutive years (2015-2019) was adopted in the course of this research work. The data used in this research were secondary data obtained from the Saudi Stock Exchange Tadawul website with the help of the company’s online personnel. Findings were drawn from the research that the company was unable to make a positive net income for five years, from 2015-2019. Different accounting/financial ratios were used to analyze the company’s performance over the years. And it was concluded that the company should reduce the proportion of the contribution of debt to finance the company. But endeavor to finance the company majorly from shareholders’ equity. With that, she will be able to earn a positive net income and create more value for itself.

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