Asset and Liability Management (ALM) plays a vital role in maintaining the financial stability, liquidity, and profitability of an organization. This study examines the asset and liability management practices of Loyal Textile Mills Ltd. using financial data collected from the company's annual reports for the period 2020–2025. The study aims to analyze the company's liquidity position, asset utilization efficiency, solvency, and profitability through various financial ratios. Based on secondary data and an analytical research design, financial tools such as Ratio Analysis, Common Size Balance Sheets, and Compound Annual Growth Rate (CAGR) were used to evaluate financial performance. The findings indicate that the company maintained a strong liquidity position with continuous improvement in current and liquidity ratios, while the proprietary ratio showed an increasing trend, reflecting a strong financial base and greater creditor confidence. The total asset turnover ratio demonstrated efficient asset utilization in generating sales; however, profitability indicators such as Return on Assets and Return on Shareholders' Funds fluctuated during the study period. The study concludes that Loyal Textile Mills Ltd. has maintained sound asset and liability management practices, ensuring adequate liquidity and financial stability, although further improvements in profitability and asset utilization could enhance its long-term financial performance and sustainability.