An effective working capital can contribute to achieving the firm’s financial profitability, increasing the value of companies, creating a short-term financing source, continuing their activities and increasing their sustainability. This study examines the effect of working capital management on firm performances (ROA and TOBIN's Q) of firms operating in the textile industry in 4 countries (Brazil, India, Indonesia and Turkey) called the Fragile Five countries between 2010 and 2020. In the estimation of the coefficients of the panel regression models determined in this study, the Driscoll-Kraay estimator, which is robust against the problems of unobserved heterogeneity, autocorrelation, varying variance and cross-section dependence, was used. In the general evaluation of the panel data analysis estimation results, it is seen that the effect of working capital management on financial performance differs significantly depending on the selected performance variable. All of these results show that successful and effective working capital management in the textile sector depends on taking into account the differences in economic conditions, differences in capital markets, financial market performance and daily working habits, and evaluating each component of working capital separately.

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