Working Capital Management and Billing Cycles in the Indian Textile Industry: A Case Study of Surat

Abstract

This study explores the interaction between billing cycles and working capital management (WCM) in the Indian textile industry. Billing cycle is an important area of research in the new commerce world for reducing the timeline between sale of goods and payment as the circulation of money is delayed. The research examines the vital relationship between Working Capital Management and profitability as well as the changing economic conditions of the Indian textile industry. Given the issues associated with profitability and liquidity, the textile sector requires a thorough examination of asset management as the industry is highly dependent on primary resources for raw materials. Surat, being the hub for textile industry, struggles with cash flow needs, which are mostly brought on by protracted cash conversion cycles. Examining these facets, the goal of this research is to shed light on the ways in which successful working capital management techniques might affect the sustainability and financial performance of textile enterprises in Surat as findings reveal diverse working capital strategies among firms. Quantitative analysis shows a significant positive loading of 0.714 of Billing cycles on Profits. The study clarifies important elements affecting performance in a changing market environment, offering valuable perspectives for stakeholders in the textile industry.