WORKING CAPITAL MANAGEMENT IN TURKISH CLOTHING INDUSTRY

Working capital management plays an important role in increasing the performance of manufacturing firms. The profile of clothing sector in terms of, capital structure, the applied working capital management strategies and the impact of working capital on profitability were analyzed in this article. The analysis was performed on the basis of financial ratios, correlation and regression studies for period 1996-2011 by using clothing industry data, published by Turkish Central Bank. As a result, it has been concluded that, clothing companies should reduce the duration of the debt collection, the cash conversion cycle and establish a balance between liquidity and profitability in order to survive and to increase their profits.