Management of working capital, liquidity and Profitability in the textile sector Cucuta, period 2008-2011 Administración del capital de trabajo, liquidez y rentabilidad en el sector textil de Cúcuta, periodo 2008-2011

Abstract

It is important to emphasize the textile sector as generator of employment and currencies for a region, in addition to this the optimization of the financial management is essential in the growth and sustainability of the companies, management is relevant in that the analysis of working capital, liquidity and profitability. The objective was to relate working capital and liquidity to profitability in the textile sector of Cucuta in 2008-2011. The methodology, design consisted of a documentary based on a descriptive correlational research. The secondary sources where the financial information relating to the sector were consulted. The data were tabulated and analyzed using statistical techniques to relate the correlation coefficient and the coefficient of determination. Changes in Net Operating Working Capital explained 89.4% variation of Return of Net Assets and 98.1% variations in Return on Equity (ROE). Accounts Receivable accounted for 96.67% of the variation in ROE, inventories grew by 76.89% and Accounts Payable at 95.26%. The liquidity was the variable of less influence in the changes of the ROE. The results obtained were aligned with the theoretical postulates of Gitman, Albornoz and Garcia. In general, the importance of proper management of working capital seen as critical factor in the operational management of the textile confections this period, providing information to assist this sector to position in the local and international market, advancing in the Draft Productive Transformation Sectors world class launched by the Ministry of Commerce, Industry and Tourism.