KENZU HUSSEN2023-11-142023-11-142023-05This research study is undertaken to investigate the effect of capital structure on profitability of manufacturing company in Addis Ababa, Ethiopia. The study examines the manufacturing specific and macro-economic factors that affect profitability of manufacturing company of Addis Ababa, Ethiopian. The data covered the period from 2010-2021 GC for the sample of selected seventeen manufacturing company. Quantitative research approach and explanatory design are adopted in carrying out this research. Secondary data is collect from the ERCA and NBE annual report by using purposive sampling technique. The random effect regression technique is used by econometric display EViews9 and Stata. The findings of the study shows that, Solvency and Debt to equity ratio(DER) have positive and statically significant effect on ROE and firm value and liquidity have negative and significant effect on ROE. When we come to ROA, solvency and Debt to asset ratio(DAR)have significant and positive effect on ROA and firm value, liquidity and DER have negative and statically significant effect on ROA. The remaining variables like are not significant. The researcher recommends, manufacturing company who has the axes of market demand, should mainly focus on the efficiently used the available resource to improve profitability of manufacturing company in Addis Ababa Ethiopia.enROEROAcapital structure,Manufacturing company,Addis AbabaTHE EFFECT OF CAPITAL STRUCTURE ON PROFITABILITY: EVIDENCE FROM MANUFACTURING COMPANIES IN ADDIS ABABA, ETHIOPIAThesis