Cash Conversion Cycle Affect Firm Profitability? Evidence from the Listed Small and Medium-Sized Enterprises

Using a sample of 28 Small and Medium-Sized Enterprises (SMEs) listed in BIST Industrial Index from 2010 to 2019; this study aims to offer an evidence on the relationship between cash conversion cycle and profitability. Empirical findings show that cash conversion cycle has significantly positive link with profitability. When considered the cash conversion cycle components, it is seen that there is a statistically significant and negative relationship between profitability and two of cash conversion cycle components, such as days inventory outstanding and days payable outstanding. Moreover, the study also reveals a negative relationship between days sales outstanding and profitability, but it is not statistically significant.