Working Capital Management and Solvency of the Industries in Bangladesh

The goal of a firm is to maximize its wealth maximization and it is important for the financial manager to take the right decision to utilize its investment efficiently and effectively. One of the crucial decisions is the working capital management which is made by the financial manager. The challenge is that every firm should maintain the optimum working capital management by which the shareholders’ wealth can be maximized. This study focused on the working capital management of different types of industries in Bangladesh and covers the difference between the solvencies of different industries. Moreover, it also represents the profitability of different industries in compare with the working capital management. It is important to manage the working capital management; otherwise, the firm may suffer in insolvency which may result in bankruptcy. Keywords: Working Capital Management, Liquidity, Solvency, Profitability, Cash Conversion Cycle

Capital Structure and Financing Decision: Industry-Base Debt-Equity Ratio in Bangladesh

This study covers the significance of capital structure for the organization which differs on the basis of the industry. The reasons behind the various debt-equity ratios for different industry are also discussed in this study. This study also mainly focused on the use of debt and equity for financing the various types of industry in Bangladesh. It is important to evaluate any particular industry of any country by considering their financing decision which has an impact on capital structure. Bangladesh is a developing country and has an opportunity to attract the foreign investors and also the domestic investors to invest in the country. For this reason, it is essential to assess the capital structure before investing in the industry of this country. Keywords: Capital Structure, Financial Distress Cost, Weighted Average Cost of Capital, Debt-Equity Ratio, Tax Benefit