Abstract:
Purpose- The goal of the examination displayed here is to give exact confirmation about the
impacts of management of working capital on financial performance or profitability of
Textile companies in Karachi. Textile sector assumes a key part in the financial advancement
of Pakistan. Yet, the financial performance of this sector is not acceptable. This study or
research is anticipated to appear the financial performance or Profitability and Working or
operating Capital position of Textiles mills, connection between them and whether the benefit
is predisposed by Management of working capital. Financial analysis, with statistical
measurement tools such as Correlation, linear Regression, and other test have been used to
appear financial performance and Benefit.
Methodology/sample- For this study convenience sampling method used to collect data and
random sampling technique has been used to conduct the research. A sample of five Textile
companies has been taken which are listed in Pakistan stock exchange. Tire secondary data
gathered from the annual reports of textiles companies for ten years 2007 to 2016.
Findings- finding were tested at significance level 0.05 maximum. There are results shows
that the C. C. C has no significant association or impact on dependent variables (R.O.A,
R.O.E, and N.P.M). Furthermore, others independent variables Such as: D.I.O and D.R.O has
shown significant association or impact on (R.O.A, R.O.E, and N.P.M).
Practical Implications- Additionally, financial management can create profitability for the
films by handling correctly the liquidity ratio and investment ratio and also they must
consider others strategies and tools to improve their firms financial performance or
profitability included Working Capital.
