How does Capital Structure affect the Profitability of the firms in FMCG Sector of Pakistan

Abstract

FMCG sector of Pakistan is vital for the growth of the economy and business sector in the country for both local as well as overseas affairs. The vitality of sector can be proved in tem1s of the growth, development, and progress of the FMCG sector of Pakistan in the last decade. This study examines and analyzes the Impact of capital structure on the profitability of FMCG sector of Pakistan. The relationship between these, the risks involved in capital structure, profitability, and the size and performance of firms involved in the decision of capital structure is discussed in this paper. Data is collected tlu·ough past financial repm1s of the concerned firms. The main concerns and issues regarding capital structure and profitable ity is discussed in tlus paper. Later, a proposed solution based on the reading and the data analyzes is unde11aken to conclude this report.