Inventory turnover negatively impacts firm profitability in Pakistan's textile industry.
The study looked at how managing working capital affects the profitability of spinning companies in Pakistan's textile industry. They analyzed data from 16 companies over 13 years and found that having a higher current ratio positively impacts profitability. However, longer inventory turnover and payables turnover periods have a negative impact on profitability. This suggests that companies should focus on improving their working capital management to increase their profits.