Cash Conversion Cycle and Financial Performance: A Case of Cement Industry of Pakistan
The primary objective of this research is to examine the relationship between cash conversion cycle (CCC) and net profit margin (NPM) of cement industry of Pakistan. The study selected five companies out of 22 companies from Pakistan's cement industry over the period from 2009 to 2019. The relationship between CCC and NPM was investigated using correlation and regression analysis. The analysis shows that the cash exchange period and the net profit margin have a negative association. As explained this study is based on cement industry hence its result cannot be generalized with other manufacturing companies however similar studies across the Pakistani industries could be conducted to identify the presence of a relationship between CCC and NPM.