Debt-heavy textile firms in Bangladesh face profitability decline, study finds.
The study looked at how financial leverage affects the profitability of textile companies in Bangladesh. They used data from 22 listed textile firms and found that having more debt negatively impacts a company's profitability. This means that when companies borrow money, it can hurt their overall financial performance. The researchers suggest that textile firms should focus on generating funds internally rather than relying heavily on external debt to finance their operations.