The present study relates to the impact of capital structure on profitability and the study is focused on the fertilizer sector of Pakistan. The objective of this study is to examine whether the debt financing and equity financing used for financing operations have any impact on a company's profitability in the fertilizer sector of Pakistan.Data of four large companies from the fertilizer sector of Pakistan representing about 89 percent of the market share is used for analysis. Data is

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... from published Annual reports of these four companies. Data for eight years from 2002 to 2009 is used for analysis. SPSS is used for analyzing the data and linear regression is applied to generate the results. Regression analysis is used to analyze the relationship between capital structure and the profitability of a company. The output of regression analysis is created in the form of a scatter diagram and tables to interpret the results of the regression.Results suggest that there is no significant relationship between capital structure and profitability of a company in the fertilizer sector of Pakistan. Results also show a significant relationship between current liabilities and the profitability of the company in the fertilizer sector of Pakistan. JEL Classification Code: E22, G32, M49