Zahra Hosseini - Department of Management, Payam Noor University, Tehran, Iran
Elaheh Farzadnia - Department of Management, Payam Noor University, Tehran, Iran
Ahmad Riahi - Department of Management, Payam Noor University, Tehran, Iran

Supply chain performance is based the on cash flows and asset utilization. This in turn has impact on the financial performance of the firm. This study is taken on basis of firms identified from S&P BSE-100 index in India. Data of past 2005-15 years of these firms is used to measure the supply chain ratio (SC ratio). It is found that the manufacturing sector has significantly higher  investment in networking capital as compared to service sector firms. It is  because of firms going for expansion either by sales or additional investments. Trade receivables formed the major component of additional net working capital resulting in lower free cash flows available to the firm. This resulted in the negative relation of SC ratio with Return on Equity (ROE) of firms for 2005-15 in manufacturing sector. However, the service sector has positive relation to SC ratio in both the 2005-10 and 2010-15 eras. That is the firms are less impacted by additional working capital, and have a focus on positive earnings only.

Asset utilization, cash generation ratio, credit rating, financial performance, Return on Equity, Supply chain performance