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One of the most essential decisions that a company must make is its capital structure decision, which may also be referred to as its financing decision. There have been a lot of studies done on this topic, but nobody can agree on what the definition of an optimal capital structure is. The purpose of this study was to make an attempt to determine the elements that influence the decisions that companies in the FMCG sector in India make regarding their capital structures. The research was carried out on 15 of the most successful FMCG businesses now operating in India. These businesses are all traded publicly on the Bombay Stock Exchange, and some of them are included in the S&P BSE Fast Moving Consumer Goods Index. The five years from 2017 to 2021 are included in the scope of the study. One dependent variable, referred to as the Debt Equity Ratio, along with seven independent factors, such as profitability, tangibility, liquidity, size, business risk, non-debt tax shield, and coverage ratio, were included in the research. The dependent variable was the Debt Equity Ratio. It has been determined, through the use of correlation and multiple regressions, which aspects of a company's capital structure are influenced by certain circumstances. Only two of the seven independent factors, namely liquidity and profitability, have been identified as having a major impact on the capital structure. These two factors are liquidity and profitability
Gagandeep et al. (Thu,) studied this question.