In any investment, investors seek to earn a return and seek to obtain information about the future profitability of companies. One of the most common ways to review financial information is to prepare financial reports. This study aims to find the variable with the broadest perspective to explain profitability. Investors, whether personal shareholders or corporations, need a model to evaluate the performance of companies and determine their expected profitability. Financial ratios play an important role in developing a company effectively, if a company does not maintain financial ratios efficiently it will directly affect the performance of the company, different financial ratios such as profitability ratios, liquidity ratios, gearing ratios and the return ratio plays an important role in the judgment of a company's progress by the new investor and existing investors. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original Essay The pharmaceutical industry in Pakistan has grown over the last few decades. At the time of Pakistan's independence in 1947, few manufacturing units existed in the country. Currently, Pakistan has more than 800 large-volume pharmaceutical formulation units, including those operated by 25 multinationals present in the country. Pakistan's pharmaceutical industry meets approximately 90% of the country's demand for finished dosage forms and 4% for active ingredients. Specialized finished dosage forms such as soft gelatin capsules, parenteral fat emulsions and metered dose inhalers continue to be imported. There are only a few active ingredient manufacturers of bulk drugs, and Pakistan is primarily dependent on bulk drug imports for its formulation needs, resulting in frequent drug shortages. Political unrest and allegations of under-invoicing increase uncertainty over imports, and clashes with customs and tax authorities are common. The domestic pharmaceutical industry has shown growth over the years, particularly in the last decade. The industry is trying to catch up and today most of the industry is following local good manufacturing practice laws, with some in compliance with international guidelines.