Impact of Working Capital & Firm Size on Frim Performance: An Evidance from Bric Automobile Industry

The final outcome for investments, finance and operating activities of any business can be conceptualized by knowing the net profit of that business for a particular time period. These are the activities that are affected through the decisions taking by the management as well as many other internally and externally effecting factors. So this study is also designed to check the effect of the working capital managing decisions as well as capital structure for the automobile industries working in Pakistan. For this purpose current ratio is used to know the effect of the management decisions while the leverage is chosen as base for the structure of the capital. Along with these other analysis like the impact of the operating leverage are included for the results. Firm size is also an important factor and I also consider it in thesis. The goal of the study is to analyze the impact of all above mentioned factors for which pooled data analysis is selected using the appropriate financial theories. Some strategies that are not included in these theories are also explained in the study. Tests are applied on the data to check the results and also some recommendations are provided on how the management decision can be like to have more profit also that how automobile industry can enhance the growth through financial as well as operating leverage.