Question

Conclusion of working capital in
taxtile industry

Answer 1

Working capital management is one of the major issues of corporate finance. The success of any manufacturing company largely relies on the efficient management of working capital. There are different theoretical developments and empirical issues but there is no unified rule that can determine the optimal level of working capital. From the viewpoint of developing country like Bangladesh the role of working capital should be highly emphasized. But our country is characterized by low level of capital market development and inefficiency of financial market. In such a situation, it is hardly possible to have the desired funds to maintain the liquidity of business by collecting and investing funds as and when required.

The available literature suggests that static focusing on working capital management is not extensive in Bangladesh. The study although will not give a clear idea to draw a conclusion about the working capital management policy and practice of Bangladeshi Firms but will definitely give an overall idea about working capital management practice of the particular industry in Bangladesh.