Keywords : Working Capital Management, Profit efficiency, Textile Industry, India

Abstract : To manage working capital of the business is one of the difficult task of financial management. The present research paper tried to assess the impact of working capital management over the profit efficiency. The study was based on secondary data and contains analysis of 5 years that is from 2016 to 2021. Return on Assets (ROA) is used to quantify profitability, whereas Average Collection Period (ACP), Inventory Conversion Period (ICP), Average Payment Period (APP), and Cash Conversion Cycle (CCC) were served as working capital management proxies. Debt Ratio, Current Ratio, Sales Growth, and Firm Size were taken as controlled variables. To assess the influence of these variables on profitability, descriptive statistics, correlation analysis, and regression analysis were employed in this study. The findings of correlation analysis show that ROA has negative relation with ACP, ICP, CCC and DR while ROA is positively related with APP, current Ratio and growth.

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