The study looked at how debt financing affects the performance of textile companies in Pakistan. They analyzed data from 70 companies over 5 years and found that firms with higher debt tend to have better performance. Most companies rely on debt to finance their operations, with a mix of short-term and long-term debt. Short-term debt can be risky due to higher interest rates, but long-term debt is linked to higher returns. Sales growth and interest rates have a positive impact on performance, while firm size has a negative effect. This shows that a company's financial decisions can greatly influence its success.