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 the prosperity of the companies, listed in the KMI-30 Index. For this research data was gathered from fi rm’s annual reports. Data of 30companies listed in the KMI-30 Index was collected throughout 2010 till 2014. Data were collected to check the significance of ROE, Tobin’s Q, and ROA. To analyze these variables regression analysis was used to measure the impact on dependent variables through independent variables. The study concluded that cash conversion cycle and debt to assets ratio were the most significant variable on the dependent variables i.e. ROA, Tobin’s Q, and ROE. It was recommended to the companies listed in the KMI-30 to maintain the CCC at their minimum level or in line with the industry norms, so they can avoid the liquidity problem along with 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 D63
DOI http://dx.doi.org/10.46745/ilma.jbs.2019.15.01.07
ISSN no (E, Electronic) 2409-6520
ISSN no (P, Print) 2416-8393
Country Pakistan
City Karachi
Institution Type University
Journal Type Open Access
Type of Review Double Blind Peer Reviewed
Format PDF
Paper Link http://ibtjbs.ilmauniversity.edu.pk/journal/jbs/15.1/7.pdf
Page 84-94
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