Cash management in textile industry: Problems and solution proposals, research on a sample textile business

The sustainability of a business operational activities depends on the level of liquidity. Businesses with liquid problems are likely to be successful in the long run and not be able to provide their long-term competitiveness. Businesses have to improve a variety of strategies and manage its resources in the best way in order to sustain operations, determine and provide the necessary cash needs. In this sense, cash management is crucial in terms of enabling businesses to continue to compete. Therefore, the aim of this thesis is to analyse the problems of the textile industry regarding cash management and develop appropriate solutions for these issues, through S.G.S. Textile and Ready to Wear Business in SME type. Textile and Clothing industry has been accepted as locomative contributing to Turkish economy, in terms of production, employment and export, building competitive advantage in global market. It has been thought that the results of the thesis will be an example for other enterprises as the majority of textile companies in this sector are made up of SME-type enterprises. Liquidity and activity ratios were calculated by using the financial statement items of S.G.S. Textile and Ready-to-Wear Business between 2012-2017, and cash management strategies were tried to be determined by interviewing with the business management. By comparing the calculated liquidity and activity ratios with the interview data, the problems of the cash management of the company were identified and solution proposals were developed. Keywords; Cash, Cash Management, Liquidity, Textile