Academic Journal
Working Capital Management and Cash Conversion Cycle - Thinking Outside the Box with New Insights.
| Title: | Working Capital Management and Cash Conversion Cycle - Thinking Outside the Box with New Insights. |
|---|---|
| Authors: | Enyi, Enyi Patrick1 enyip@babcock.edu.ng, Nweze, Eze Ogbonnaya2 nzekanzeo@yahoo.com, Oladipupo, Adebawojo1 dipoadebawojo@gmail.com, David, Olalere Mayowa3 olalerem@babcock.edu.ng |
| Source: | Economics & Business Quarterly Reviews. Mar2026, Vol. 9 Issue 1, p90-99. 10p. |
| Subject Terms: | *Working capital, *Break-even analysis, *Profitability, *Cash flow, *Financial performance, *Industrial management, *Liquidity (Economics), Multiple regression analysis |
| Geographic Terms: | Nigeria |
| Abstract: | This paper scrutinizes the efficacy of the period-based cash conversion cycle (CCC) as a tool for working capital management. Recognizing that efficient working capital management is essential for a firm's liquidity, operational efficiency, and overall financial health, the study employs a multi-factor regression analysis to examine and contrast the effectiveness of the period-based cash conversion cycle (CCC-X) and the operational breakeven-based cash conversion cycle (CCC-B) on firms' profitability. The research, conducted using data from the financial statements of 83 listed industrial enterprises in India and Nigeria, reveals that the period-based CCC-X has no significant impact on the financial performance of the firms analyzed. Conversely, the operational breakeven-based CCC-B metric shows a highly significant influence on all profitability proxies utilized. The paper recommends that financial managers consider the operational breakeven point theory as a more effective approach to liquidity management. [ABSTRACT FROM AUTHOR] |
| Copyright of Economics & Business Quarterly Reviews is the property of Asian Institute of Research and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.) | |
| Database: | Business Source Index |
| FullText | Text: Availability: 0 |
|---|---|
| Header | DbId: bsx DbLabel: Business Source Index An: 193185146 RelevancyScore: 1390 AccessLevel: 6 PubType: Academic Journal PubTypeId: academicJournal PreciseRelevancyScore: 1390.35424804688 |
| IllustrationInfo | |
| Items | – Name: Title Label: Title Group: Ti Data: Working Capital Management and Cash Conversion Cycle - Thinking Outside the Box with New Insights. – Name: Author Label: Authors Group: Au Data: <searchLink fieldCode="AR" term="%22Enyi%2C+Enyi+Patrick%22">Enyi, Enyi Patrick</searchLink><relatesTo>1</relatesTo><i> enyip@babcock.edu.ng</i><br /><searchLink fieldCode="AR" term="%22Nweze%2C+Eze+Ogbonnaya%22">Nweze, Eze Ogbonnaya</searchLink><relatesTo>2</relatesTo><i> nzekanzeo@yahoo.com</i><br /><searchLink fieldCode="AR" term="%22Oladipupo%2C+Adebawojo%22">Oladipupo, Adebawojo</searchLink><relatesTo>1</relatesTo><i> dipoadebawojo@gmail.com</i><br /><searchLink fieldCode="AR" term="%22David%2C+Olalere+Mayowa%22">David, Olalere Mayowa</searchLink><relatesTo>3</relatesTo><i> olalerem@babcock.edu.ng</i> – Name: TitleSource Label: Source Group: Src Data: <searchLink fieldCode="JN" term="%22Economics+%26+Business+Quarterly+Reviews%22">Economics & Business Quarterly Reviews</searchLink>. Mar2026, Vol. 9 Issue 1, p90-99. 10p. – Name: Subject Label: Subject Terms Group: Su Data: *<searchLink fieldCode="DE" term="%22Working+capital%22">Working capital</searchLink><br />*<searchLink fieldCode="DE" term="%22Break-even+analysis%22">Break-even analysis</searchLink><br />*<searchLink fieldCode="DE" term="%22Profitability%22">Profitability</searchLink><br />*<searchLink fieldCode="DE" term="%22Cash+flow%22">Cash flow</searchLink><br />*<searchLink fieldCode="DE" term="%22Financial+performance%22">Financial performance</searchLink><br />*<searchLink fieldCode="DE" term="%22Industrial+management%22">Industrial management</searchLink><br />*<searchLink fieldCode="DE" term="%22Liquidity+%28Economics%29%22">Liquidity (Economics)</searchLink><br /><searchLink fieldCode="DE" term="%22Multiple+regression+analysis%22">Multiple regression analysis</searchLink> – Name: SubjectGeographic Label: Geographic Terms Group: Su Data: <searchLink fieldCode="DE" term="%22Nigeria%22">Nigeria</searchLink> – Name: Abstract Label: Abstract Group: Ab Data: This paper scrutinizes the efficacy of the period-based cash conversion cycle (CCC) as a tool for working capital management. Recognizing that efficient working capital management is essential for a firm's liquidity, operational efficiency, and overall financial health, the study employs a multi-factor regression analysis to examine and contrast the effectiveness of the period-based cash conversion cycle (CCC-X) and the operational breakeven-based cash conversion cycle (CCC-B) on firms' profitability. The research, conducted using data from the financial statements of 83 listed industrial enterprises in India and Nigeria, reveals that the period-based CCC-X has no significant impact on the financial performance of the firms analyzed. Conversely, the operational breakeven-based CCC-B metric shows a highly significant influence on all profitability proxies utilized. The paper recommends that financial managers consider the operational breakeven point theory as a more effective approach to liquidity management. [ABSTRACT FROM AUTHOR] – Name: AbstractSuppliedCopyright Label: Group: Ab Data: <i>Copyright of Economics & Business Quarterly Reviews is the property of Asian Institute of Research and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.) |
| PLink | https://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=bsx&AN=193185146 |
| RecordInfo | BibRecord: BibEntity: Identifiers: – Type: doi Value: 10.31014/aior.1992.09.01.707 Languages: – Code: eng Text: English PhysicalDescription: Pagination: PageCount: 10 StartPage: 90 Subjects: – SubjectFull: Working capital Type: general – SubjectFull: Break-even analysis Type: general – SubjectFull: Profitability Type: general – SubjectFull: Cash flow Type: general – SubjectFull: Financial performance Type: general – SubjectFull: Industrial management Type: general – SubjectFull: Liquidity (Economics) Type: general – SubjectFull: Multiple regression analysis Type: general – SubjectFull: Nigeria Type: general Titles: – TitleFull: Working Capital Management and Cash Conversion Cycle - Thinking Outside the Box with New Insights. Type: main BibRelationships: HasContributorRelationships: – PersonEntity: Name: NameFull: Enyi, Enyi Patrick – PersonEntity: Name: NameFull: Nweze, Eze Ogbonnaya – PersonEntity: Name: NameFull: Oladipupo, Adebawojo – PersonEntity: Name: NameFull: David, Olalere Mayowa IsPartOfRelationships: – BibEntity: Dates: – D: 01 M: 03 Text: Mar2026 Type: published Y: 2026 Identifiers: – Type: issn-print Value: 27759237 Numbering: – Type: volume Value: 9 – Type: issue Value: 1 Titles: – TitleFull: Economics & Business Quarterly Reviews Type: main |
| ResultId | 1 |