Abstract

"Finance serves as the lifeblood of every business, and effectively managing finances stands as a crucial element for any company’s sustenance. This study delves into the examination of how a Cash Conversion Cycle (CCC) influences a company’s earnings. For this purpose, five companies from the Fortune 500 list are selected and ten years of data are extracted from their annual reports for analysis. Employing statistical methodologies, using a sample of firms from diverse industries, we employ regression analysis to examine how variations in the CCC affect profitability yardsticks like Return on Assets (ROA) and Return on Equity (ROE). Implications of this probe extend to financial managers, policymakers, and investors, emphasizing the paramountcy of efficient working capital management in enhancing firm profitability, earnings, and sustainability in competitive markets."

Full Text
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