Working capital management of selected textile companies of india

Abstract

This study is made on the textile industry of India, and it is a part and partial of newlineresearch study on working capital management of the selected textile company of newlineIndia. The study period is 10 years, i.e. 2006 to 2015. Both dependent and newlineindependent variables are used in this study. Variables used in this study Include newlineCurrent Ratio, Quick Ratio, Gross working Capital Ratio, Current Assets to Total newlineAssets Ratio and Current Liability to Total Assets Ratio are used as a proxy for newlineworking capital management. Bills Receivable Ratio, Bill Payable Ratio, Inventory newlineTurnover Ratio and Cash Conversion Cycle are used as control variables. newlineDependent variable is Operating Profit Ratio. The data analysis is carried out for newlinetwenty textile companies listed on Bombay Stock Exchange and National Stock newlineExchange of India. This study is based on secondary data and data are taken for a newlineperiod of ten years, i.e. 2006 to 2015 in order to calculate all these variables. The newlineresearch methodology used in this study was descriptive statistics, multi regression newlineanalysis in order to know the impact of these variables on profitability. The result of newlinemulti regression represents the CR, ACP and CCC have a negative impact on newlineprofitability while QR, GWCR, CATA,CLTA, APP and ITR have a positive impact on newlineprofitability. Textile Industry is one of the major sectors of the Indian economy. Thus, newlinethe aim of this study is to cater to some useful references for the people responsible newlinefor the management of this sector. This study also creates the basis for proposed newlineresearch in this area of business.