Abstract
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 also 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 retailing companies. As the bottom line for any business is wealth of shareholders; therefore in this study, Free Cash Flow to Equity (FCFE) model is applied to support the selection of financial performance measures to be analyzed in relation to Operating Cash Cycle.
| Original language | English |
|---|---|
| Pages (from-to) | 95-99 |
| Number of pages | 5 |
| Journal | European Journal of Management |
| Volume | 10 |
| Issue number | 1January 1 |
| Publication status | Published - 1 Jan 2010 |
Keywords
- Operating Cash cycle
- working capital
- financial performance ratios
- Australian retailing