Professor in Finance, Department of Management Studies, Guru Nanak Institute of Technology, Hyderabad, India
Online published on 12 May, 2017.
The Textile Sector in India ranks next to Agriculture. Textile is one of India's oldest industries and has a formidable presence in the national economy. The textile industry occupies a unique place in our country. One of the earliest to come into existence in India, it accounts for 14% of the total Industrial production, contributes to nearly 27% of the total exports and is the second largest employment generator after agriculture. Like other organizations, all textile companies keep various assets such as inventory, debtors, fixed assets, investments etc. to carry out the business operations effectively and efficiently. However, managing these assets effectively is a crucial thing. Asset Management Ratios attempt to measure the firm's success in managing its assets to generate sales. These ratios can provide insight into the success of the firm's credit policy and inventory management. These ratios are also known as Activity or Turnover Ratios. This paper represents an empirical study which examines the assets management in textile companies in India with a data of 5 years. For the purpose of the study secondary data is used. For the purpose of analysis ratios and arithmetic mean have been used and to test hypothesis, ANOVA test (F test) has been applied.
Assets management, Inventory turnover ratio, Debtors turnover ratio, Fixed assets turnover ratio, Total assets turnover ratio and ANOVA test
