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The Impact Of Ccc And Wc On The Profi Tability Of Kmi-30 Index

Author

Listed:
  • Samina Riaz

    (Associate Professor IQRA University)

  • 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 KMI30 Index.For this research data was gathered from fi rm’s annual reports.Data of 30companies listed in KMI30 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 KMI30 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

Suggested Citation

  • Samina Riaz & Athar Iqbal & M Irfan Khan, 2019. "The Impact Of Ccc And Wc On The Profi Tability Of Kmi-30 Index," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 15(1), pages 84-94.
    • Handle: RePEc:aib:ibtjbs:v:15:y:2019:i:1:p:84-94
    DOI: https://doi.org/10.46745/ilma.ibtjbs.2019.151.7
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    References listed on IDEAS

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    1. Faris Nasif ALShubiri, 2011. "The Effect Of Working Capital Practices On Risk Management: Evidence From Jordan," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 5(1), pages 39-54.
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    4. Haitham Nobanee & Modar Abdullatif & Maryam AlHajjar, 2011. "Cash conversion cycle and firm's performance of Japanese firms," Asian Review of Accounting, Emerald Group Publishing Limited, vol. 19(2), pages 147-156, July.
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    More about this item

    Keywords

    KMI-30; Tobin’s Q; ROA; ROE; WC; CCC;
    All these keywords.

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