ABSTRACT
Cash conversion cycle is a concept that is receiving serious
attention al over the world especially with the current financial situations
and the state of i he world economy. The concern of business owners and
managers all over the world is to devise a strategy of managing their day to
day operations in order to rivet their obligations as they fall due and
increase profitability and shareholder's wealth. Cash conversion cycle, in most
cases, are considered from the perspective of working capital management as
most of the indices used for measuring corporate liquidity are a function of
the components of working capital. The purpose of this rapper is to investigate
the relation between a firm's cash conversion cycle and its profitability. The
study examined the effect of cash conversion cycle on the financial performance
of quoted companies in Nigeria, focused of Premier Paints Plc., a major
manufacturer and supplier of paints in Nigeria and in Africa, for the period of
2008-20 17. Cash conversion cycle, accounts receivable ratio, accounts payable
ratio, inventory conversion ratio and, profit after tax are the variables
studied in this study, data were sourced from the annual reports of the company
under study. Generalized Least square multiple regression analytical tool was
used to test the Hypotieses, the Ex-post factor research design was employed.
The findings showed that, Inventory ratio and Accounts receivable ratio had
significant and positive effect on firms profitability, accounts payable ratio
and Cash conversion cycle had positive and significant effect on firms' profit
after tax. The results of this study showed that Profit after Tax (PAT) is
positively affected by cash conversion cycle (poxied by accounts receivable
ratio, inventory conversion ratio and accounts payable ratio). The study also
revealed that there is a very high relationship between cash conversion cycle
(proxied by accounts receivable ratio, inventory conversion ratio and accounts
payable ratio) and the dependent variable financial performance proxy by Profit
after Tax (PAT).
OGBONNA, E (2021). Effect Of Cash Conversion Cycle On The Financial Performance Of Quoted Companies In Nigeria (A Study Of Premier Paints Plc, Ogun State. (2008-2017). Mouau.afribary.org: Retrieved Nov 26, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-cash-conversion-cycle-on-the-financial-performance-of-quoted-companies-in-nigeria-a-study-of-premier-paints-plc-ogun-state-2008-2017-7-2
EZEKIEL, OGBONNA. "Effect Of Cash Conversion Cycle On The Financial Performance Of Quoted Companies In Nigeria (A Study Of Premier Paints Plc, Ogun State. (2008-2017)" Mouau.afribary.org. Mouau.afribary.org, 02 Jul. 2021, https://repository.mouau.edu.ng/work/view/effect-of-cash-conversion-cycle-on-the-financial-performance-of-quoted-companies-in-nigeria-a-study-of-premier-paints-plc-ogun-state-2008-2017-7-2. Accessed 26 Nov. 2024.
EZEKIEL, OGBONNA. "Effect Of Cash Conversion Cycle On The Financial Performance Of Quoted Companies In Nigeria (A Study Of Premier Paints Plc, Ogun State. (2008-2017)". Mouau.afribary.org, Mouau.afribary.org, 02 Jul. 2021. Web. 26 Nov. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-cash-conversion-cycle-on-the-financial-performance-of-quoted-companies-in-nigeria-a-study-of-premier-paints-plc-ogun-state-2008-2017-7-2 >.
EZEKIEL, OGBONNA. "Effect Of Cash Conversion Cycle On The Financial Performance Of Quoted Companies In Nigeria (A Study Of Premier Paints Plc, Ogun State. (2008-2017)" Mouau.afribary.org (2021). Accessed 26 Nov. 2024. https://repository.mouau.edu.ng/work/view/effect-of-cash-conversion-cycle-on-the-financial-performance-of-quoted-companies-in-nigeria-a-study-of-premier-paints-plc-ogun-state-2008-2017-7-2