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  The Impact of Capital Structure on Firm Performance: A Case Study of the Consumer Cyclicals Sector 1. Introduction The capital structure of a firm is the key determinant of the way the financial management of the firm is done since it determines the risk aspect of the firm as well as its performance. Capital structure is thus defined as the manner or approach that a specific company uses to fund or finance its operations and expansion through, debt, equity, or other securities. It is important because the mix between debt and equity reduces the proportion between the business cost of its capital and its business risk, tax shield, and operating leverage. To achieve this objective, firms must understand the best capital structure they need to adopt in order to maximize the shareholders’ wealth while balancing the risks involved. This research analyses the relationship between capital structure and performance using data that is exclusive to the consumer cyclical sector. The i...