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@article{172180,
        author = {Saravanan Shanmugam},
        title = {The cash conversion cycle and liquidity Analysis: A study on Malaysian Companies},
        journal = {International Journal of Innovative Research in Technology},
        year = {2025},
        volume = {11},
        number = {8},
        pages = {2230-2247},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=172180},
        abstract = {This study examined the cash conversion cycle (CCC) as a liquidity indicator of the Consumer products and Industrial Products companies in Malaysia and tries to establish its relationship with the current and the quick ratios, with its component variables, and investigates the implications of the CCC in terms of profitability, Indebtness and firm size. Therefore, five hypotheses are formed to investigate the contemporary liquidity measure of the CCC.
 The data covering the period of 2009-2011, 130 of firms whose Stocks are listed on the Bursa Malaysia Stock Exchange. The companies selected on the random basis from the Consumer products and Industrial Products companies of Malaysia, which is a representative sector of the Malaysian industry as a whole and a very crucial industry for the whole economy, with rapid growth and expansion domestically and internationally. The methodology that was followed included correlation analysis, as well as t-tests of two independent sample means. 
The results indicated that there is a significant positive relationship between the cash conversion cycle and the traditional liquidity measures of current and quick ratios except 2010 Industrial products companies negatively correlated for cash conversion cycle and quick ratio. The cash conversion cycle was positively related to the net profit margin, except 2009 and 2011 Consumer products companies negatively correlated for cash conversion cycle and net profit margin. The cash conversion cycle was positively related to the return on assets, except 2009 Consumer products and 2010 Industrial products companies negatively correlated for cash conversion cycle and the return on assets. The cash conversion cycle was negatively related to leverage ratios, except 2010 Consumer products, CCC- TIE and 2009, 2010 CCC-DR and CCC-TIE Industrial products companies positively correlated for cash conversion cycle and leverage ratios. 
On the other hand, the current and quick ratios had negative relationship with the debt to equity ratio, and a positive one with the times interest earned ratio, except 2010 CR-TIE and 2010, 2011 QR-TIE Consumer products  negatively correlated for current and quick ratios and the times interest earned ratio. Finally, there is no difference between the current and quick ratios of large and small firms.},
        keywords = {},
        month = {January},
        }