The study looked at how the way companies in the textile industry in Pakistan borrow money affects their financial performance. They analyzed data from 90 textile firms over 10 years. They found that having more debt compared to equity is linked to lower financial performance. However, increasing sales and exports can improve financial performance. The size of the company also plays a role, with larger firms showing lower performance. Overall, better management and ownership can help companies reduce risks and costs, leading to better financial performance and stability.