Cash conversion cycle across industries

• Author(s): Costa, Bárbara Reis da
• Date: 2014
• Persistent ID: http://hdl.handle.net/10362/11731
• Origin: Repositório Institucional da UNL
• Subject(s): Cash conversion cycle; Fast moving consumer goods industry; Airline industry; Financial ratios
• Document Type: Master thesis
• Language: English
• Advisor(s): Ferreira, Leonor
• Contributor(s): RUN

Description

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Management from the NOVA – School of Business and Economics

The purpose of this research is to assess whether Cash Conversion Cycle differs between industries via their components, namely Days Inventory Outstanding, Days Sales Outstanding and Days Payables Outstanding. Based on a sample of multinational companies from two different industries, Fast Moving Consumer Goods and Airline industry for the period 2009-2012, the results suggest that Cash Conversion Cycle differs between industries. Also it differs between large and smaller companies due to different accounting choices. It contributes to a better understanding about how size of the firm, inventory system, liquidity and payables impact on CCC and consequently on companies’ profitability.