Cash conversion cycle (CCC) is a performance-based measure for determining how well a company manages its working capital. Effective management of working capital will enhance a company's performance and enable it to accomplish its profitability objectives. Even though there have been a few studies on CCC in the past, CCC research has grown in importance. This is because the CCC in any business may have evolved over time. The goal of this study is to present a conceptual framework for analysing the CCC and firm performance, as well as their relationship. The measurement of CCC, which is Days Sales Outstanding (DSO), Days Inventory Outstanding (DIO), and Days Payables Outstanding (DPO), are independent variables, whereas the firm's performance is measured by return on asset (ROA) and return on equity (ROE). This research contributes to the current knowledge on the correlation between the CCC and firm performance.
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In-Text Citation: (Asman et al., 2022)
To Cite this Article: Asman, F. N., Fernandez, D., Jamaludin, N. A., Zaki, H. O., & Ghazali, A. W. (2022). Cash Conversion Cycle and Firm’s Performance. International Journal of Academic Research in Business and Social Sciences, 12(11), 2518– 2527.
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