"business needs working capital for the survival of STIs. Working capital is a vital part of businessinvestment, which is essential for continuous business operations. You need a company to maintain itsliquidity, solvency and profitability (Mukhopadhyay, 2004). The importance of capital managementof a company cannot effectively deny (Filbeck and Krueger, 2005). Management explicitly the impactof the capital, both in the level of profitability and liquidity of the company (Raheman and Nasr,2007). If a company is going to invest heavily in the workplace, namely, the capital, when their needsrather than the benefits that can be generated by investing in these resources or certain long-termassets will be reduced Furthermore; the company must take cost of store stocks for longer periods andthe cost of managing excess inventory (Arnold, 2008). There are different approaches to themanagement of working capital. Two basic policies of capital management are namely politics and theaggressive policy of capital management of working capital management in the hands of conservativework. An aggressive investment policy with high levels of capital and low investment in current assetscan generate more profits for a business. This gives an additional impetus to our study.Chhapra and Naqvi (2010) worked on five variables, including transactions; the profitability; the costof production; Capital and debt. They found, after an evaluation of the textile industry of Pakistan as awhole was lackluster part Working Capital Management disrupt productivity, efficiency andprofitability of the textile industry. The textile industry of Pakistan was considered the largestinvestment industry develops How widely produced in the country, and the country's gross nationalincome.Mekonnen (2011) who worked on five variables, including working capital, capital management,company size, profitability and cash conversion cycle The study found a significant negativerelationship between had profitability was examined by the gross operating margin and averagecollection period, revenues in equity-day payment cycle time and average cash conversion for asample of manufacturing firms.Afza and Nazir (2011) worked six variables named as the working efficiency of capital utilizationrate, rate of return and the cement industry in Pakistan. They found that the turnover of funds wasvery essential for companies, as it plays a fundamental to generate more profitability for paperstakeholder, but was concerned that less attention from researchers and practitioners.Tufail (2012) worked on three variables named as Working Capital Management, Performance andTextile Pakistan. He found the working capital management was one of the most important financial6 decisions of a company. It’s well organized working capital must be present for the proper conduct ofbusiness in all cases, the nature of the business. In this study, which was effective Maintain theconclusion that the level of working capital is very important for the textile industry and all otherindustries?Rehman et al (2012) who worked on five variables, including profitability, capital structure, short- term debt, long term debt and total debt. They found the results of debt levels that have an effect onthe profitability of the company when sales are high and have no impact on businesses with low sales.Data collected for the study does not cover all companies in the textile industry, and may explain thedifferent results. The results suggest that while business sales are high after current liabilities will notoperate.Hussain (2012) who worked on five variables that easy credit, energy crisis, the profitability, thePakistan textile industry panel data and found that companies that are committed to high debt in 2005due to low interest rates and the nominal interest rate of existing negative current at the time hadrecently begun to address the consequences of high leverage. The energy crisis resulting in thecountry has significantly affected the business activities and therefore those who have squeezed salesand higher financing costs subject to profitability or reduced losses.The management and working capital profitability have some relation to each other, no doubt. Muchresearch is available in selected relationship esta but the sector has not been well studied textile EastPakistan the importance of capital management. Therefore, in the literature are not available in theindustry, in the Pakistani context. The working capital is very important part of any business. For thetextile and capital management industry is a fundamental value. Our empirical results are of practicaluse, especially in the case of the current financial crisis and the sad state of the world economy. Theliquidity of many companies is under intense pressure and money has become a very scarce resourcebecause of tighter credit conditions and market demand. Obviously, this condition underlines theimportance of effective management of working capital. Examine interesting for all assets in Europeindicates that very little has been done largely increase the efficiency of capital between 2006 and2010, which includes the start of the current financial crisis? The implications of the results for theliquidity position of the company and improve profitability underline the importance of active capitalcompanies, not only in moments of anxiety, but as a daily routine. Therefore, the study focused on thestudy of the impact of capital management and profitability of work and identified important variablesthat influence the management of working capital effectively.7 Therefore, the purpose of my study is to establish the relationship between working capitalmanagement and profitability and discover the working capital ratio acerca management andprofitability of the Pakistani companies.8 1.2 Purpose statementThe purpose of the study is to examine the impact of the work that the organization of the profitabilityof capital in Pakistan. There are three independent variables included the average length of theaverage distribution of the collection period, the total turnover of assets and charge a margin andprofitability of the organization varying net profit. The study uses annual data collection reports forresearch in the textile sector. The definition of the dependent variable of net profit margin box netgeneral revenue Return on equity shows the effectiveness of a company is in control of costs andexpenses related to business normal operations there. Equity divided by net income is often expressedas a percentage. This number is an indicator of the efficiency of a company is on cost control. Thehighest net income is the most effective of the company is in converting income into a real benefit.The net profit margin is a good way of comparison Sami industry companies as these companies aresubject to broadly similar commercial conditions. However, the net profit margin. It is also a goodway to compare companies in different sectors to measure relatively industries that are moreprofitable9 1.3 Significance of the Study Working capital needs of institutions and see what is how to increase profitability due to managingworking capital. The most important asset of any business is working. Taking care of your keypersonnel is crucial to successful management. Earlier studies mostly concentrated in the workingcapital region. Pakistan, while this study will try to find the reason for working capital. The objectiveof the study will be important that the selected fields are the most important in the development of aneconomy. In this study, understanding the causes decreased profitability increase. From theperspective of working rotation of traditional capital, it is very narrow. Considering the importance ofthe management of working capital fund for the management evaluation researchers and profitabilityof employment, such as Uyar, 2009; Samiloglu and Demirgunes, 2008; Vishnani and Shah, 2007;Teruel and Solano, 2007; Lazaridis and Tryfonidis, 2006; Padachi, 2006; Shin and Soenen, 1998;Smith et al., 1997 and Jose et al., 1996, among others. However, there are some studies refer toPakistan as Afza and Nazir 2007 and 2008; Raheman and Nasr 2007 and 2006. Sana Shah and NazirAfza from 2007 to 2008 and only focused on managing the political financing working capital. Twoother studies have examined the relationship between the profitability and working capitalmanagement in Pakistan. Sana Shah (2006) focused on the oil and gas and the estimated relationshipusing small sample of seven companies. Raheman and Nasr (2007) analyzed the profitability andefficiency of working capital management of only 94 companies were listed Karachi Stock Exchangefor the period 1999-2004 by the ordinary least squares and generalized least squares. However, thisstudy has ignored the effect of each company is only a conflict of company characteristics andanalysis of wise ignored aussi working capital management performance of manufacturing firms inthe sector. Sufficient evidence of the performance of the company and the management of workingcapital in reference to Pakistan to provide a strong motivation for the evaluation of the relationshipbetween capital management and business results in detail.Study add to the existing body of knowledge by serving the cause of working capital in Pakistan andorgans can be useful for working capital and increased profitability that will benefit students andresearchers, and to add to the existing body of knowledge or Who materials way for future research isopen Haut-related topics By using this study managers can mitigate importance of agencies in the capital and the effects ofworking capital profitability of working bodies. The results of this study are useful for financialmanagers of the textile sector as a thesis provide information about management policies used by theirpeers. This information is useful for maintaining healthy competition and improves the organization.10 "