“Textile Industry Boom”- Shows Sign Of Giant Wave For Bangladesh.

In present situation, the textile business utilizes very nearly 4 million individuals in Bangladesh. 45% of the mechanical business is the consequence of textile industry. As indicated by the Bangladesh Textile Mills Association (BTMA), from 2014 to 2018, 44 new textile factories additionally became members from the affiliation. In spite of the obstacles, riding the development wave, Bangladesh attire making division could arrive at 60 percent esteem expansion edge depending on the solid backwardly connected yarn-texture making industrial facilities straightforwardly from imported crude cotton, arriving at another tallness of fares worth of US $30.61 billion in the financial year 2018.

As the manufacturing sector of Bangladesh is becoming stronger and also contributing in the development of the national economy. Therefore, this data table is very much significant in terms of modern financial position particularly relevant in developing countries like Bangladesh because of very high uncertainty in different level of establishment financing activities.  

The data table represents a comprehensive understanding about the performance of Textile sector listed companies in DSE, Bangladesh for a period of five years (2014-2018).

Financial Performance (2014-2018)

The table shows Average Operating profit of SHASHADNIM is higher than others. SQUARETEX has the highest profit based on Average Net Profit. Average Current Assets, Average Current Liabilities, Average Total Asset and Average use of Long Term Debt of ENVOYTEX is higher compared to the other companies. RAHIMTEX holds the highest position based on Average Earnings Per Share. On the other hand, Based on Average Operating Profit AL-HAJTEX is in the lowest position. ANLIMAYARN has lower Average Net Profit, Earnings Per Share and Average Current Assets. RNSPIN uses less debt capital. DSHGARME keeps minimum level of Total asset size along with Average Current Liabilities. In the overall situations of these companies, ENVOYTEX and RAHIMTEX are in better position compared to the other companies of textile industry based on the average use of long term debt, the average operating profit, average net profit, average current liabilities and average total assets.

So it very well may be prescribed that determination of current resources and working capital as a wellspring of capital money ought to be done to produce more benefit. The financial managers of these firms should not ignore the importance of maintaining adequate liquidity and profitability for the sustainability of their firms. So this can be concluded that there is a requirement for an ideal use of the accessible liquidity in a various aspects of investment so as to expand the organizations' profitability and firm ought to keep up the ideal capital structure and in this way the shareholders wealth can be maximized. On the basis of the data table, following recommendations may be offered in order to improve financial performance of Textile companies listed in DSE:

• Revise its capital structure to minimize unnecessary debt & boost profitability.

• Decline operating expense by operational efficiency to cope up with trend.

• Avoid inadequate working capital concentrating on maximizing profit.