Workings of the operating cash cycle in the manufacturing sector

John S. Croucher, Maslada Nobhandhu

Research output: Contribution to journalArticlepeer-review


The study investigates the Operating Cash Cycle (the Cash Conversion Cycle) as an important element of how the Working Capital of an enterprise works, viewing it from an Operational Capacity perspective. Working Capital is a short-term measure of liquidity, but it is a/so a sustainable performance measure that all enterprises need to closely monitor in order to have a competitive advantage in any economic situation. The objective of this paper is to uncover any significant relationships between the Operating Cash Cycle and key performance ratios in Australian manufacturing industries. As the bottom line for any business is the wealth of the shareholders, the Free Cash Flow to Equity (FCFE) model is applied to support the selection of financial performance measures to be analyzed in this study.
Original languageEnglish
Pages (from-to)130-134
Number of pages5
JournalJournal of international management studies
Issue number1
Publication statusPublished - 2010


  • Operating Cash cycle
  • working capital
  • key performance ratios
  • Australian manufacturing


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