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Weaving Financial Efficiency : Working Capital Management in Coimbatores Textile Industry

Dr.P.RAJAVEL Published on : 2025-08-27 Weaving Financial Efficiency : Working Capital Management in Coimbatores Textile Industry

The study examined the working capital management of five Coimbatore-based textile enterprises over a ten-year period, from 2013–2014 to 2022–2023. Ratio analysis was its primary financial tool. Lakshmi Mills Ltd., Bannari Amman Spinning Mills Ltd., and Gangotri Textiles Ltd. all had good current ratios, according to the study. Any company's liquidity ratio was unsatisfactory. In every year of the study period, the chosen companies' absolute liquid ratio did not meet the standard norm. KG Denim Ltd. and Ambika Cotton Mills Ltd. did not have a cash position ratio that was satisfactory in any of the study's years. Gangotri Textiles Ltd. had a successful inventory conversion phase, followed by KG Denim Ltd. Ambika Cotton Mills Ltd. was not doing well.Ambika Cotton Mills Ltd. and Bannari Amman Spinning Mills Ltd. both had effective collection management.Gangotri Textiles Ltd. was not satisfied.Ambika Cotton Mills Ltd. had the longest average payment term of any of the chosen companies, followed by KG Denim Ltd.Gangotri Textiles Ltd. and Bannari Amman Spinning Mills Ltd. have worse scores.Ambika Cotton Mills Ltd.'s cash conversion cycle was extremely brief, which hurt KG Denim Ltd.

Keywords: liquidity ratio, cotton mills, Coimbatore, and capital management.

 



DOI : https://doi.org/10.64009/iajome.vol.16.issue08.327

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