Does Cash Conversion Cycle Affect Firm Profitability? Evidence from the Listed Small and Medium-Sized Enterprises

Year 2021, Volume: 16 Issue: 1, 110 - 123, 01.04.2021

Işıl Erem Ceylan

https://doi.org/10.17153/oguiibf.853862

Cited By: 5

Abstract

Using a sample of 28 Small and Medium-Sized Enterprises (SMEs) listed in BIST Industrial Index from 2010 to 2019; this study aims to offer an evidence on the relationship between cash conversion cycle and profitability. Empirical findings show that cash conversion cycle has significantly positive link with profitability. When considered the cash conversion cycle components, it is seen that there is a statistically significant and negative relationship between profitability and two of cash conversion cycle components, such as days inventory outstanding and days payable outstanding. Moreover, the study also reveals a negative relationship between days sales outstanding and profitability, but it is not statistically significant.

Keywords

Cash Conversion Cycle, Small and Medium-Sized Enterprises, Profitability, Liquidity, Size

Nakit Dönüş Süresi Firma Kârlılığını Etkiler mi? Küçük ve Orta Ölçekli Halka Açık Firmalara Yönelik Bir Uygulama

Abstract

Bu çalışmada Borsa Istanbul KOBİ Sanayi Endeksi’ne kayıtlı 28 küçük ve orta ölçekli işletmeye ait finansal veriler ışığında nakit dönüş süresi ile kârlılık arasındaki ilişki ele alınmıştır. 2010-2019 dönem aralığının dikkate alındığı çalışmadan elde edilen ampirik bulgular nakit dönüş süresi ile kârlılık arasında pozitif bir ilişki olduğunu göstermiştir. Nakit dönüş süresi bileşenleri genelinde bakıldığında ise, kârlılık ile stok dönüş süresi ve borç ödeme süresi arasında istatistiksel olarak anlamlı ve negatif bir ilişki olduğu görülmüştür. Diğer taraftan alacak tahsil süresinin de kârlılık üzerinde negatif bir etkiye sahip olduğu, ancak söz konusu ilişkinin istatistiksel olarak anlamlı olmadığı tespit edilmiştir.

Keywords

Nakit dönüş süresi, Küçük ve orta ölçekli İşletmeler, Karlılık, Likidite, Büyüklük

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