Abstract

There are two main areas in which this article focus (1) checking the length of cash conversion cycle with respect to the size of the firms. (2) Examining the length of CCC with respect to the profitability of the firm. For the purpose of research the data is collected from the listed companies of Karachi Stock Exchange (KSE) over the period of 2012-2016. Descriptive statistics of the study shows that all firms of the sample have favorable Cash conversion cycle but Tobacco sector is at number one with the lowest value of Cash conversion cycle. The Pearson correlation and regression analysis is conducted for the empirically testing of the results. The results of the study show that the relationship of Cash conversion cycle with profitability and size is insignificant. It means that the favorable answers of the Cash conversion cycle is not due to the firm size and favorable answer does not has a positive impact on the profitability of the firms.

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