Abstract:
Purpose: This study aims to find out the impact of different financial ratios like current
ratio, net profit margin, total asset turnover ratio on ROE. Moreover it also aims to find
out impact of marketing expenses on return on equity. It is very important to know
relationship of these factors on return on equity so that companies make their decision
making based on the results of this research. For more clear understanding research has
been done about companies from a specific industry as different industries would have
different conditions thus different results.
Research method: For industry analysis 10 years data from 2010 to 2019 ofthree
companies from textile industry were chosen and one company for an individual analysis
by using least square method.
And for the second part of research regression test has been run through SPSS. Data was
collected from financial statements of company which are made available on internet by
the companies on their official website.
