Title:
WORKING CAPITAL MANAGEMENT IN BANGLADESH'S TEXTILE SECTOR: A COMPARATIVE ANALYSIS

Authors:
Md. Khalilur Rahman*, Sheikh Sofikul Islam and Sharjina Shanta, Bangladesh

Abstract:
This study examines working capital management (WCM) practices in Bangladesh’s textile sector, focusing on listed companies to assess their efficiency in handling short-term assets and liabilities. Analyzing data from 21 textile firms on the Dhaka Stock Exchange (2017–2021), the research evaluates key WCM metrics, including inventory conversion, accounts receivable and payable periods, and the cash conversion cycle (CCC). Findings reveal considerable variation in WCM practices, with CCC values ranging from negative to prolonged periods, highlighting liquidity and operational efficiency challenges. The study suggests firms can improve financial performance through benchmarking, inventory optimization, stricter receivables management, and favorable payable arrangements. Regular WCM monitoring can help address inefficiencies and optimize cash flow. This research offers industry-specific insights and recommends that future studies expand the scope to non-listed firms and apply advanced statistical methods to explore WCM impact on profitability.