Relationship between Working Capital and Corporate Performance in the Textile Sector of Pakistan

Working capital is related with managing and financing short term investment decisions and management of current assets as well as fixed assets at the same time. Managing theses short term investment decisions is known as working capital management. All the organizations manage their current assets efficiently due to their importance in the measurement of overall performance of the organizations. Productions organizations manage their current assets with great care due the dependence of their liquidity and profitability on the working capital. It is evident from the past researches that organizations have faced critical situations due to their mismanagement of working capital. All those organizations operating in developed or developing countries, which have given less importance to their working capital have suffered in managing ideal performance [1]. Abstract