THE IMPACT OF CCC AND WC ON THE PROFITABILITY OF KMI-30 INDEX

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Volume 15 Issue 1 2019

Author(s):

Samina Riaz
Associate Professor IQRA University
samina_bahria@hotmail.com

Athar Iqbal
Associate Professor IQRA University

M Irfan Khan
Associate Professor Jinnah University for women

Abstract This research purpose is to investigate the impact of WC and CCC on prosperity of the companies, listed in KMI-30 Index. For this research data was gathered from fi rm’s annual reports. Data of 30companies listed in KMI-30 Index was collected over the period of 2010 till 2014. Data was collected to check signifi cance of ROE, Tobin’s Q, and ROA. To analyze these variables regression analysis was used to measure the impact on dependent variable through independent variables. The study concluded that cash conversion cycle and debt to assets ratio were most signifi cant variable on the dependent variables i.e. ROA, Tobin’s Q and ROE. It was recommended to the companies of listed in the KMI-30 to maintain the CCC at their minimum level or in lines with the industry norms, so they can avoid the liquidity problem along with the reduce the shortfall of cash requirement which were needed to smoothly run the operations of the companies
Keywords KMI-30, Tobin’s Q, ROA, ROE, WC, CCC
Year 2019
Volume 15
Issue 1
Type Research paper, manuscript, article
Recognized by Higher Education Commission of Pakistan, HEC
Category "Y"
Journal Name IBT Journal of Business Studies
Publisher Name ILMA University
Jel Classification -
DOI https://doi.org/10.46745/ilma.ibtjbs.2019.151.07
ISSN no (E, Electronic) 2409-6520
ISSN no (P, Print) 2415-8393
Country Pakistan
City Karachi
Institution Type University
Journal Type Open Access
Manuscript Processing Blind Peer Reviewed
Format PDF
Paper Link http://ibtjbs.ilmauniversity.edu.pk/journal/jbs/15.1/7.pdf