Tools for Cross-Industry Analysis of Capital Structure and Profitability Using the Example of three Industries

E. G. Demidova ()

Administrative Consulting, 2026, issue 5

Abstract: Purpose of the study. Development and testing of tools for matrix classification of enterprises by level of financial risk and profitability, allowing to identify the directions of cyclical shift between the quadrants of the “Leverage Quadrant†matrix for the purposes of cross-industry analysis of the capital structure and performance of companies.Methods. The study is based on a sample of 150 Russian public companies in three industries (metallurgy, construction, food industry) with a ten-year observation horizon (2015–2024). For each company, the average share of equity capital (autonomy coefficient) and the average return on equity (ROE) were calculated. Based on the threshold values (share of insurance company = 50%, ROE = 15%), a second-order square matrix “Leverage Quadrant†was constructed, which allows companies to be positioned in the “risk-return†coordinate system. To analyze the directions of cyclical shift, the apparatus of dynamic capital structure management was used.Results. Industry specific features of the distribution of companies by quadrant have been identified: metallurgy is characterized by the dominance of borrowed capital and a high share of problem enterprises (80%); construction demonstrates a bipolar structure with a high share of autonomous companies (48%); The food industry has a balanced structure and a maximum share of highly efficient companies (52%). The trajectories of a directed cyclical shift are proposed: from quadrant C (“ineffective borrowers†) to quadrant A (“effective borrowers†) through the implementation of a set of management measures aimed at increasing operational efficiency and debt restructuring; from quadrant D (“cautious conservatives†) to quadrant B (“stablely profitable†) due to the implementation of a set of management measures aimed at moderate attraction of borrowed capital and revision of the asset structure. An original toolkit is proposed — the “Leverage Quadrant†matrix, supplemented by the concept of a directed cyclical shift, which allows not only to diagnose the company’s current position in the “risk-return†coordinate system, but also to determine priority directions for transforming the financial strategy. The developed approach can be replicated for any industry and country samples. The results of the study can be used by financial managers to justify decisions on optimizing the capital structure, increasing return on equity and reducing financial risks; as well as regulators and analysts to monitor the financial stability of enterprises by industry.

Date: 2026
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