Academic Journal
Working Capital Management and Cash Conversion Cycle - Thinking Outside the Box with New Insights.
| Τίτλος: | Working Capital Management and Cash Conversion Cycle - Thinking Outside the Box with New Insights. |
|---|---|
| Συγγραφείς: | 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 |
| Πηγή: | Economics & Business Quarterly Reviews. Mar2026, Vol. 9 Issue 1, p90-99. 10p. |
| Θεματικοί όροι: | *Working capital, *Break-even analysis, *Profitability, *Cash flow, *Financial performance, *Industrial management, *Liquidity (Economics), Multiple regression analysis |
| Γεωγραφικοί όροι: | Nigeria |
| Περίληψη: | 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] |
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| Βάση Δεδομένων: | Business Source Index |
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