Abstract:
The present study provides cash conversion cycle (CCC) and
profitability of selected listed manufacturing companies during the period
from financial year 2006 to 2010. In order to select the sample, convenience
sampling technique was used. Further the study suitably used secondary
data. Correlation and regression analysis were performed. Results revealed
that CCC and profitability (i.e., Return on Assets (ROA)) are negatively
correlated with the value of -0.663 which is highly significant at five percent
level. A result of the regression analysis is CCC is 0.439 which means 43.9
percent impact on profitability. This study would hopefully benefit to the
academicians, researchers, policy makers and practitioners of Sri Lankan and
other similar countries through exploring the impact of CCC and on
profitability and pursuing policy to improve the current status of it.
