The Effect of Cash Conversion Cycle on Profitability and Interest Firms

The purpose of this research is to investigate the effect of cash conversion cycle on the performance and the expenses of the firms. The relationship between the cash conversion cycle and the profitability through panel data for samples of firms from Tehran Stock Exchange for the period ۱۳۸۱ – ۱۳۸۹ has been studied. The multi-variable regression model has been utilized to test various hypotheses. The results confirm the existence of a negative significant relationship between cash conversion cycle and profitability of the firms, while there is a positive relationship between the cash conversion cycle and the expenses of the firms. It is also evident that the relationship between cash the conversion cycle and the profitability of the smaller firms is negatively significant. The cash conversion cycle affects the performance of firms in different industries and the degree of this effect is more dominant on the dynamic firms in the basic and consumer-goods industries.

کلیدواژه ها:

cash conversion cycle ، working capital ، profitability ، accounting receivable ، inventory ، accounting payable. ، چرخه تبدیل وجوه ، سرمایه در گردش ، سودآوری ، حساب های دریافتنی ، موجودی کالا ، حساب های پرداختنی.