Management of Working Capital in Textile Sector

Current assets and current liabilities both are present at the same time in the business. The flow of current assets and current in business is like an electric current. The role of working capital is like a heart in the business. As heart provides blood to the whole body same way funds that is generated for working capital is circulated in the firm as this flow the whole operations of the business stop to work. The reason of this is that WC provides funds to the business for the daily operation. That is why managing working capital efficiently is necessary to achieve more profitability and increase marketability of the company. This study has tried to contribute in the literature by studying the impact of working capital management on profitability and market evaluation.