Efficient working capital management is an essential instrument to realize continuous profit which has direct effect on the value of the firm. Better management of liquidity helps the firm to attain its objectives. The objective of any... more
Efficient working capital management is an essential instrument to realize continuous profit which has direct effect on the value of the firm. Better management of liquidity helps the firm to attain its objectives. The objective of any firm or industry is to generate high profit margin. Management of liquidity varies industry to industry due to requirement of raw material, labour force, purchase and sale policy, credit collection policy etc. The traditional rule indicates that liquidity and profitability are inversely related. This study tries to provide the empirical evidence regarding the relationship of working capital management and profitability. For this purpose, we have taken 43 Indian textile sectors listed in Bombay Stock Exchange as sample. Standalone secondary data are collected for 12 years from 2005-06 to 2016-17 using Prowess database. Panel data regression and ratio analysis have been used to make the study. It was found that performance of Indian textile industry is ...
