Abstract
In this study, for semiconductor test equipment agents, in order to promote the new equipments, company must make expensive demonstrate machines for consignment on the customers side; During the demonstration period there is the Operating working capital as sales costs plus operation cost; Due to the high risk of semiconductor industry, product life cycle is short, the profit margin is not easy to maintain; Therefore, reduced gross margins means to do larger revenue. In order to deal with the lower gross margin, the company must correct choice of debt or equity financing because of the company's growth rate varying by the business expansion or shrink. Due to the small amount of the company's capital, usually the borrowing cost is higher than the larger companies. In this study, based on the actual financial data, the following analysis will help companies to make capital structure decisions relating to the gross margin and growth. According to the characteristics of this industry, in response to the decrease in operating margins, calculate the minimum revenue for the breakeven point and the relationship in between gross margin, growth and assets increased. Capital structure change should be varying by gross margin and growth rate to decide on debt or equity financing.