Financial Analysis of Textile Sector in Bangladesh: A Study on Selected Textile Companies

Abstract

The Textile sector of Bangladesh has got a greater facet than any other sector in terms of growth and foreign exchange earnings. It makes a significant contribution to the national economy by creating generous employment opportunities and reducing poverty through socioeconomic development. The paper focuses on the financial strength of the textile sector in Bangladesh. And to know that up to what extent textile sector has used their available resources effectively. For this purpose profitability, liquidity and solvency position of textile companies has been examined. In this paper comparative ratio analysis technique has been used to know the financial soundness of textile companies. The result shows the profitability margins is slightly different due to volatile textiles market and volatility in raw material prices. The Liquidity and solvency position is almost the same in all the textile companies.

Keywords: Textile Sector, profitability, liquidity, volatility and solvency.