Conversion Cycle Research Articles

Enhanced reactivity over Ce2(SO4)3/MgO with NiO modification for chemical looping partial oxidation of methane

Chemical looping partial oxidation of methane to syngas is a promising process. Thermodynamic and kinetic analysis both forecast the NiO/Ce2(SO4)3–MgO is a prospective oxygen carrier (OC) to this process, which enables with 100% syngas selectivity, 2.15H2/CO ratio, excellent methane conversion and stable cycling characteristic. Compared with Ce2(SO4)3, the methane conversion rate rise by 73.19% because of the excellent lattice oxygen availability, less carbon deposit, and large specific surface area. The distinctive pore structure also provides a favorable reaction environment. Through the density functional theory, Ni doping can lower the energy barrier (Eb), promote lattice oxygen activation and diffusion, and the oxygen vacancy (Ov) can further promote these processes. CH3 → CH2 + H (TS2) is the rate-limiting step. Compared with Ce2(SO4)3, the Ni doping can reduce Eb by 16.8%, and the Ov can further reduce it by 43.0%. It does not change when the Ov concentration is more than 1.96%.

Unlocking the Role of Language and National Culture: Effects on Supply Chain Operations in a Global Context

We investigate how language, an essential part of culture, affects manufacturing firms’ supply chain operations management practices, including the cash conversion cycle and its components. Based on the Sapir–Whorf hypothesis, which theorizes that a language's structure may affect how its speakers think, prior studies have established that using the future tense to describe future events increases one's mental distance from the future, reducing a person's concern about it. Building upon this foundation, we hypothesize that firms in weak future-time reference countries are likely to be better prepared for future volatility in demand for their products and therefore carry higher inventory to avoid potential stockouts. We also hypothesize that firms in weak future-time reference countries are more apprehensive about long-term relationships with their customers and hence extend longer credit terms to them. Finally, we hypothesize that firms in weak future-time reference countries have longer operating and cash conversion cycles due to carrying higher levels of inventory and extending longer credit terms to customers. The empirical results using a large global sample of 193,625 firm-year observations from 45 countries support our hypotheses. In terms of economic significance, on average, the cash conversion cycle of firms in weak future-time reference countries is ∼ 11% longer than that of firms in strong future-time reference countries. We also find that the effect of language is dominant over the influence of traditional cultural dimensions. Together, the results suggest that time encoding in the language of a firm is a determining factor in its supply chain operations.

Working Capital Management and Financial Performance: Evidence from Nigeria’s Public Listed Manufacturing Companies

Working capital management is important in corporate finance and considerably impacts organizational profitability. The study investigates how working capital management impacts the performance (specifically in the context of financials) of publicly traded manufacturing companies listed on the Nigeria Stock Exchange (NSE). Data collected for this study was analyzed using Statistical Package for Social Sciences (SPSS) based on the sample of 18 manufacturing companies for five years from 2013 to 2017. Working capital management is important for all organizations as it can considerably impact profitability and financial performance. The linear regression study revealed a notable positive correlation between the Account Payable Period and profitability. An escalation in the duration of accounts payable is associated with increased profitability. The second regression model conclusion indicates that a reduction in the duration (days) to collect sales from consumers is linked to a reduction in the profit since accounts receivable are negatively and insignificantly correlated with profitability. The third discovery in this study revealed an insignificant adverse relationship between the conversion period for inventory and profitability. Manufacturing companies need to turn their inventory into sales to increase profits promptly. This analysis revealed an insignificant inverse correlation between the conversion cycle for cash and profitability.

Strategic working capital management in Polish SMES: Navigating risk and reward for enhanced financial performance

This study examines the impact of operating capital management (WCM) strategies on the monetary execution of small and medium-sized enterprises (SMEs) in Poland, with a particular focus on finding the correct equalization between liquidity and benefit. The review utilizes relapse investigation to survey the effect of forceful and conservative (WCM) techniques on the benefit and fluidity of 4,891 Polish SMEs from 2012 to 2021, as measured by an informational index of budgetary and operational information. The results demonstrate a noteworthy connection between WCM improvements and budgetary results. However, aggressive actions do not just mean higher earnings; they also involve heavier financial risks. On the other hand, cautious methods are linked with stronger financial stability but may lead to lower profit. According to the survey, when cash conversion cycle (CCC) days fall by 1%, return on total assets (ROA) can increase by approximately 1:0 percentage points. This demonstrates again that WCM is very important in improving company profits. These findings have implications for academics, practitioners, and government officials.

WHAT DO WE KNOW ABOUT THE FINANCIAL SUSTAINABILITY OF PRIVATE HOSPITALS? EVIDENCE FROM A PRIVATE HOSPITAL CHAIN

Private for-profit healthcare providers significantly contribute to health system in Türkiye. Therefore, the ability of the private providers to sustain their operations is critical for the success of the health system. At this point, the sector's financial sustainability emerges as an important determinant. This study aims to assess the financial sustainability of private healthcare sector in Türkiye. To explore this phenomenon, data for a decade were obtained from a private hospital chain which has hospitals in different regions in Türkiye. Given the multidimensional structure of financial sustainability, the evaluation was carried out across four categories encompassing various variables such as real growth rate, profitability ratios, asset turnover rated, and cash conversion cycle. Based on the variables, a financial sustainability index was formed. The analyses showed that the hospital’s level of financial sustainability had a fluctuating trend and exhibited a decline for a significant portion of the analysis period. Despite real increases in sales, relatively stable profitability ratios, and high asset turnover rates, it was determined that high production costs and prolonged collection period for accounts receivable adversely impacted the level of financial sustainability.

Factors influencing financial performance in South Africa’s food and beverage industry: An empirical analysis

Purpose: This study aims to investigate the determinants of financial performance in the food and beverage sector of South Africa, focusing on 11 listed companies on the Johannesburg Stock Exchange. Methodology: The study employs panel data regression analysis using secondary data sourced from the Integrated Real-time Equity System (IRESS) Library, covering the period from 1988 to 2017. Return on assets (ROA) is used as the performance indicator, while the explanatory variables include debt ratio, cash conversion cycle, leverage, labour, and capital. Results: The study’s findings reveal that labour and capital are statistically significant determinants of financial performance in the food and beverage sector of South Africa. On the other hand, debt ratio, cash conversion cycle, and leverage have an insignificant impact on the firms' performance. Theoretical contribution: This study contributes to the literature on the determinants of financial performance in the food and beverage sector, particularly in the context of South Africa. The findings highlight the importance of labour and capital as key factors influencing financial performance in the sector. Practical implications: The study's results have practical implications for managers and stakeholders in the food and beverage sector of South Africa. It is recommended that firms in the sector pay more attention to labour and capital as these variables have proven to be strong determinants of financial performance.

A Study on Working Capital Management in Automotive chassis Manufacturing Pvt Ltd

The effective management of working capital is crucial for all companies. Key elements of working capital management include days sales outstanding (DSO), days inventory outstanding (DIO), days payable outstanding (DPO), and cash conversion cycle (CCC). A study conducted on 332 Czech companies, 20 of which were certified by the EFQM (European Foundation for Quality Management) Model, investigated how these components of working capital management impact a company's profitability. Two regression models were utilized for testing - pooled regression and maximum likelihood estimation (MLE). The results indicated that all components of working capital management have a negative effect on profitability. Interestingly, the interaction between EFQM certified companies and working capital components had a positive impact on profitability, suggesting a beneficial relationship between these components and profitability for certified firms. However, it was found that receiving a quality certificate/award from the EFQM Excellence Model actually decreased a company's profitability. Keywords Working capital, Firm profitability CCC, EFQM, Czech firms

Highly efficient degradation and detoxification of antibiotics over C–Dots/siderite heteroaggregates in photo-Fenton systems: The crucial role of C–Dots

The substantial presence of antibiotics in aquatic environments remains as a critical environmental issue that needs to be urgently addressed. In this study, mimetics of C–Dots/siderite heteroaggregates (CSI) were studied in a visible-light-responsive Fenton system as a platform for the degradation of antibiotics in contaminated water. By virtue of the excellent electron transfer of C–Dots, the sustained conversion cycles of Fe(II) → Fe(III) → Fe(II) in CSI were greatly accelerated, and meanwhile the H2O2 utilization was enhanced. The optimized CSI–3 nanocomposite displayed a prominent degradation efficiency towards a series of tetracycline analogs at ppb levels. Density functional theory (DFT) calculations indicated the excellent photo-Fenton catalytic performance of CSI originated from the increased d-band center and electron density, which considerably improves the utilization of H2O2. Both experimental and theoretical studies revealed that the correlated toxicity of degradation intermediates was significantly decreased. Additionally, a continuous flow device integrating the CSI photo-Fenton system maintained a high degradation efficiency after long-term treatment of simulated chlortetracycline wastewater. The presented work thereby confirms a spontaneous remediation process for the decontamination and detoxification of persistent organic pollutants under the action of heteroaggregates formed by engineered nanoparticles and natural minerals.

A Systematic Literature Review of Working Capital Management in Business Organizations

Working capital management is a crucial aspect of financial management that focuses on the effective management of a company's current assets and liabilities to ensure the smooth operation of day-to-day activities. A literature review on working capital management reveals a plethora of research studies highlighting the significance of optimizing working capital to enhance a firm's profitability, liquidity, and overall financial performance. Several studies have emphasized the importance of maintaining an optimal level of working capital to strike a balance between liquidity and profitability. By efficiently managing components such as cash, inventory, accounts receivable, and accounts payable, companies can minimize the risk of financial distress and improve their operational efficiency. Researchers have proposed various models and techniques to assess and improve working capital management practices, such as the cash conversion cycle, the operating cycle, the current ratio, and the quick ratio. Moreover, studies have also explored the impact of working capital management on firm value and performance. It has been widely documented that effective working capital management positively influences a company's profitability and shareholder value. By reducing the cash conversion cycle and operating cycle, firms can release trapped capital and reinvest it in value-creating activities. Conversely, inadequate working capital management can lead to financial constraints, increased costs, and reduced profitability. Furthermore, researchers have investigated the determinants and challenges of working capital management across different industries and regions. Factors such as industry characteristics, firm size, profitability, growth rate, and macroeconomic conditions have been identified as key determinants of working capital management practices. Cultural, regulatory, and technological factors also play a significant role in shaping companies' approaches to working capital management. In conclusion, the literature review on working capital management underscores the importance of adopting efficient strategies to manage current assets and liabilities effectively. By optimizing working capital levels, companies can improve their financial performance, enhance liquidity, and create long-term value for stakeholders.

Verification and Validation of Spectral Element Code for Supercritical CO2 Flow in Vertical Heated Tubes

The investigation of heat transfer in supercritical CO2 (sCO2) has garnered considerable attention in recent decades, given sCO2’s potential as a promising working fluid for advanced power conversion cycles. Despite previous research efforts, there are still gaps in our understanding of sCO2 heat transfer, particularly in conditions associated with heat transfer deterioration. To delve into sCO2 heat transfer more comprehensively, we propose employing the high-fidelity computational fluid dynamics code NekRS to simulate sCO2 flow using the large eddy simulation technique. Through graphics processing unit acceleration, NekRS achieves a higher computational speed than traditional CPU-based systems. However, before using NekRS in practical applications involving sCO2, it is imperative to perform verification and validation. This paper presents our efforts to verify and validate the NekRS code’s capability for simulating sCO2 using heated vertical tubes, where heat transfer deterioration usually happens. To accommodate the unique properties of sCO2, we have modified the NekRS code by integrating third-party property modules, such as REFPROP and PROPATH. Our simulations are compared with experimental and numerical data from the literature, instilling confidence in leveraging NekRS for future engineering applications. Our simulations also reveal that the accuracy of the property module significantly impacts the results, with REFPROP outperforming PROPATH for sCO2 properties. Additionally, we observed that, depending on the flow direction, buoyancy can either enhance or suppress turbulence in sCO2 flow. In upward flow, under certain conditions, the suppressed turbulence leads to heat transfer deterioration, resulting in elevated wall temperatures.

Does the Cash Conversion Cycle Affect Firm Profitability? Some Empirical Evidence from Listed Firms in North Macedonia

Abstract This study aims to investigate the potential relationship between the cash conversion cycle (CCC) and firm profitability for the period from 2011 to 2019. To do this, a fixed effects panel regression model is applied to a sample of firms listed on the Macedonian Stock Exchange. Firm profitability is measured by the return on assets (ROA) ratio, while the liability ratio, firm size, current ratio, acid test and liquidity ratio are used as control variables. Our main finding is a decreasing and convex relationship between cash conversion cycle and profitability. In terms of working capital management policy, this implies that firms with a shorter cash conversion cycle perform better than others, since financial managers repay suppliers and reduce investments in working capital.

Development of modular dynamic code for steam power conversion system in sodium-cooled fast reactor

Sodium-cooled fast reactor (SFR) is one of the most promising Generation IV reactor types. To improve operational safety and economy, SFR requires accurate prediction of the steam power conversion system. Therefore, a one-dimensional thermal-hydraulic analysis code of the steam power conversion system of SFR is developed in this study where each equipment is packaged as a separate module with modular modeling method. JFNK is adopted to solve ODE in this code, which expand the universality of the code. The model is validated by comparing with design results from the Daya Bay nuclear power plant and the BN-600 steam generator. The maximum relative errors for pressure and temperature are 5.44% and 2.40%, respectively. After validation of the code, the steady-state analysis of the SFR steam power conversion circuit is carried out where the flow and heat transfer process of key equipment can be accurately simulated considering a complete steam power conversion cycle. This work provides reference value for the thermal-hydraulic characteristics of steam power conversion system in SFR.

Optimalisasi Finansial pada Industri Barang Konsumsi: Analisis Faktor-Faktor yang Memengaruhi Cash Holding

The purpose of this study is to examine the variables influencing cash holding in consumer products businesses that are listed on the Indonesia Stock Exchange in the 2019–2021 timeframe. Effective financial tactics, particularly cash holding practices, are necessary in a competitive and tightly developed economy. Maintaining cash on hand is critical to the business's ability to remain liquid, particularly in the face of adversity like the Covid-19 outbreak. Growth opportunity, investment opportunity set, and cash conversion cycle are the aspects taken into account in this study. The findings of a regression study using SPSS 26 indicate that, among the 43 companies chosen through purposive selection, growth potential has no bearing on cash holding, but that the cash conversion cycle and investment opportunity set do. This demonstrates that businesses with higher levels of cash holding typically have longer cash conversion cycles and significant investment prospects. This study sheds light on the critical function that cash holding plays in preserving a company's liquidity as well as the significance of financial management in the face of industrial and economic uncertainty..

Degradation of phenol by Cu-Ni bimetallic-doped sludge biochar as a fenton-like catalyst: Mechanistic study and practical application

In this study, the sewage sludge was converted into sludge biochar (SBC) and doped with Cu-Ni bimetal to synthesize a novel composite catalyst (Cu-Ni@SBC) for the activation of H2O2 for phenol degradation. Characterization results showed that the Cu-Ni bimetal was successfully doped into the SBC and led to the formation of a porous structure with abundant cavities, resulting in a larger specific surface area and higher adsorbed oxygen content. Mechanism analysis revealed a valence state conversion cycle between Cu0-Cu(II), Ni(III)-Ni(II) and Cu-Ni which made Cu-Ni@SBC have higher electron transfer performance. Response surface methodology was applied to determine the optimal preparation and reaction conditions, under which the Fenton-like system composed of Cu-Ni@SBC and H2O2 removed 100 % of phenol and mineralized 69.1 % of TOC from simulated wastewater. In addition, the experimental results showed that the Cu-Ni@SBC material had a relatively wide pH adaptation range (4–8), and the removal efficiency of phenol could reach 76.4 % after 5 cycles of experiments, and the catalytic inhibition rates of the two common coexisting anions, HCO3– and Cl-, were 17.1 % and 0 %, respectively. The results of practical application revealed that the phenol removal efficiency reached 90.44 % and the pollutant mineralization rate could reach 58.5 % within 90 min, which proved that the catalyst was suitable for the advanced degradation of organic matter in coal chemical wastewater. Therefore, Cu-Ni@SBC can be considered as a promising Fenton-like catalyst, and the process method is also of some guiding significance for the treatment of coal chemical wastewater.

Influence of working capital efficiency on firm’s composite financial performance: evidence from India

PurposeThe objective of this paper is to investigate the effect of working capital efficiency (WCE) and its components on the composite financial performance of a sample of Indian firms.Design/methodology/approachOur sample includes 796 non-financial listed firms from 2015–16 to 2021–22. Sample firms’ profitability, liquidity, solvency, cash flow management, and financial and operational leverage have been used to classify them into companies with high composite financial performance (HCFP) and with low composite financial performance (LCFP) by using K-Means Clustering technique. A composite financial performance score (CFPS) of 1 has been assigned to HCFP and 0 to LCFP. We have used logistic regression models with fixed effect to estimate the effect of cash conversion cycle (CCC) and its components, i.e. inventory days, accounts receivable days and accounts payable days on CFPS in the presence of control variables such as growth, leverage, firm size, and age.FindingsThe study finds that CCC and inventory days are inversely associated with CFPS. This finding shows that the firms’ WCE leads to superior financial performance on a composite basis.Research limitations/implicationsThe research findings are based on samples drawn from the population of the listed Indian non-financial companies. Since the operation, financial practices, working capital policies, and management styles of firms vary greatly among nations, the results of this study should be extended to firms in other countries after taking into account the degree of resemblance to the sample firms.Practical implicationsThe findings of this study hold significant value for industry practitioners, as they provide guidance in determining the optimal allocation of funds for working capital and devising strategies for effectively managing inventory levels, credit sales, and vendor payments in order to increase the overall value of the company. This study aims to help investors in building their investment portfolios by identifying companies with superior composite financial performance. Investors can enhance the construction of their investment portfolios by strategically selecting companies that demonstrate superior overall performance.Social implicationsThe results of our study will help companies improve their WCM strategies to enhance their overall value, and their significance increases manifold during economic downturns. Business firms that perform well by efficiently managing their working capital have a multiplier effect on the economy and society at large in the form of GDP contribution, labor income, taxes to the government, investment in capital assets, and payments to suppliers.Originality/valueTo understand the impact of WCE on firms’ performance, the extant working capital literature focuses on some specific characteristics such as profitability, valuation, solvency, and liquidity. The limitation of employing a single parameter is its inability to present the comprehensive performance evaluation of firms. This study is among the earliest studies that focus on the holistic evaluation of WCE's impact on the composite performance of a company.

Does working capital management improve financial performance in China's agri-food sector during COVID-19? A comparison with the 2008 financial crisis.

The objective of this study is to explore the impact of working capital management on firms' financial performance in China's agri-food sector from 2006 to 2021. In addition, we analyze whether this impact is the same during the 2008 financial crisis and the 2020 COVID-19 crisis. Working capital management is measured by working capital investment policy (measured by current assets to total assets ratio), working capital financing policy (measured by current liabilities to total assets ratio), cash conversion cycle, and net working capital ratio. The results reveal that current assets to total assets ratio and net working capital ratio positively influence financial performance measured through return on assets (ROA), while current liabilities to total assets ratio and cash conversion cycle negatively influence ROA. We also find that the relationship between working capital management and financial performance is more affected during COVID-19 than in the 2008 financial crisis. The findings might provide important implications for company managers to make optimal working capital management practices, depending on the economic environment.

Factors for Reluctance of Individuals and Business Firms in Investing on Fixed Deposits in Tanzania

This study assess on the factors for reluctance of public in investing on fixed deposits. Either to reveal the facts three main hypotheses were formulated that is i) investing on fixed deposits in covenants borne with financial services is the reason for reluctance ii) the liquidity risks associated with investing on the fixed deposits is the factor that count for reluctance and iii) the risk sharing unawareness is the factor that count for public being reluctant in investing on fixed deposits account. Using a quantitative approach, explanatory research design and simple random sampling techniques the facts were gathered from (96) Bankers, Banking specialists and Investors in Financial services/products. The facts being collected by employing structured questionnaires and the cleaned through use of multiple imputations, the Augmented Dicker Fuller Unit root test, the Runs test, incremental fit index, absolute fit index were applied in analyzing data. Either the results were as follows: the covenants and more other requirements in investing on the fixed deposits accounts count for the reason over public reluctance. Moreover long cash conversion cycle that lead into liquidity risks was another reason found to be influencing factor for reluctance. Furthermore unawareness over risk sharing portfolio and maturity of fund invested opportunities was revealed to be another reason why there was reluctance. The study therefore recommends that Banks should act leanly and responsively towards meeting the need of investors.

Financial ratios, credit risk and business strategy: Application to the PDO Parma ham sector in single production and non-single production firms

Food geographical indications (GIs) protected by the European Union collective protection mark (CPM) have been the subject of a growing interest. Several research has analyzed the economic, social and environmental role of CPM, which require Production Specifications (PS), imposing constraints to food production, with side effects on performance and corporate strategy.The research has the aim to analyze, through financial ratios (FRs), the performance of firms in the PDO Parma ham (PrH_PDO) sector; PrH_PDO is the third geographical indication (GI) in Italy among those protected by CPM of the European Union (PDO, PGI, TSG). The research considers, for firms associated with the PrH_PDO Consortium, a series of 10-year annual report, 739 observations, divided into two groups, first of 103 of 11 firms that sell only PrH_PDO and second of 636 of 78 firms that sell not only PrH_PDO. This categorization allows us to highlight and compare the effects of adopting PS in terms of FRs, credit scoring and firms’ strategy.Research highlights that PrH_PDO_Only firms perform slightly better, with less variable results. Research shows that the PS of Prosciutto di Parma PDO, determines reduction in turnover (T) and a longer duration of the INV_DAYS and, consequently, of the conversion cycle (CCC_DAYS). Research highlights that PrH_PDO_Only firms have a strategy based on higher margins (ROS) which compensates low T; research highlights that credit risk (EM-Score) is higher for PrH_PDO_Only firms.The research can be replicated in other GI sectors, where there are few studies that have compared firms that produce only GIs and firms that produce not only GIs. The research can be useful to operators in the sector, to financial intermediaries and to policy makers. Lines of applied action may include development of financial instruments to assist maturation period and establishment to assess creditworthiness, tailored to PrH_PDO firms’ characteristics.

The Effect of Cash Conversion Cycle on Company Earnings and Profitability

"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."

Cost management and working capital management: ebony and ivory in perfect harmony?

AbstractThe aim of this paper is to empirically investigate the potential association between a firm’s cost behavior, characterized as cost stickiness or anti-stickiness, and working capital management (WCM), as measured by the working capital to total assets ratio and the trade cycle measures net trade cycle and cash conversion cycle. We measure cost stickiness using four widely accepted models and a sample of non-financial firms sourced from Compustat. Our findings highlight the significant influence of WCM on cost behavior. Specifically, we observe an inverse relationship between a firm’s WCM aggressiveness and both its cost stickiness and degree of cost adjustment. These relationships are consistent for both operating costs and the costs of goods sold.