THE IMPACT OF CCC AND WC ON THE PROFI TABILITY OF KMI-30 INDEX

Samina Riaz (), Athar Iqbal and M Irfan Khan
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Samina Riaz: Associate Professor IQRA University
Athar Iqbal: Associate Professor IQRA University
M Irfan Khan: Associate Professor Jinnah University for women

IBT Journal of Business Studies (JBS), 2019, vol. 15, issue 1, 84-94

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

Keywords: KMI-30; Tobin’s Q; ROA; ROE; WC; CCC (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:aib:ibtjbs:v:15:y:2019:i:1:p:84-94

DOI: 10.46745/ilma.ibtjbs.2019.151.7

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