Cash Conversion Cycle and Financial Performance: A Case of Cement Industry of Pakistan

  • Mahboob Ullah, Ghulam Rasool Lakhan, Amanullah Channa, Shabnam Gul, Ishtiaq Ur Rehman


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.