THE IMPACT OF WORKING CAPITAL MANAGEMENT ON FINANCIAL PERFORMANCE OF TEXTILE SECTORS IN KARACHI

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.