Investment in Fixed Assets and Profitability of Businesses in the Textile Sector of PakistanLiterature Review: Investment is the sacrifice of the present condition for the future prospect in which risk is the factor that can influence the investment decision. Therefore, the investment in fixed assets can be verified through the fixed asset turnover ratio and we can know the efficiency with which fixed assets are used to generate sales. A high fixed asset turnover ratio indicates efficient use of fixed assets in generating sales and vices. -pours. The impact of investment in fixed assets on the profitability of the business depends on the nature, size and requirements for the current operations of the businesses which may impact the profitability of the business as the investment decision in fixed assets varies from industry to industry. sector based on their work needs and services. In the textile industry of Pakistan, investment in fixed assets may not have a strong or significant impact on the profitability of the company because in textile companies the current situations are very important and they have to invest in the current resources to generate more sales and increasing the volume of sales compete with others and investing in fixed assets would not be very satisfied or profitable that in CAAbarbannel and Bushee (1997-1998) stated that there is a negative relationship between investment intensity and profitability. Deloof (2003) considered a non-financial business sample of 1,000 companies based in Belgium and studied the relationship between the profit ratio and asset management and concluded that there is an indirect relationship between the profit ratio and the asset management of all companies in Belgium and the rate of profit can be decreasing... in the middle of the document... 1997). Fundamental analysis, future earnings and stock prices, journal of Accounting Research, 35, pp. 1-247. Beneish, M., Lee, C., Tarpley, R. (2001). Contextual fundamental analysis in predicting extreme returns. Review of accounting studies, 2/3, pp. 165-1918. Gautam, K. (2008) Important tips for stock market investors outlook money, November 24 Indian Rediff abroad. Retrieved February 20, 20119. Ibam (2007). How to evaluate a company before investing, stock market news Sat. March 22, 2007 Retrieved March 20, 201110. Lev, B., Thiagarajan, R. (1993). Fundamental Information Analysis, Journal of Accounting Research, 31, pp. 191-215.11. Fairfield, P., Whisenant, T., Yohn, T. (2003). Accrued earnings and growth: Implications for future profitability and market pricing errors. The audit, 78, pp. 353-371.