THE STUDY OF RELATIONSHIP BETWEEN PERFORMANCE METRICS AND CASH CONVERSION CYCLE OF COMPANIES LISTED IN TEHRAN STOCK EXCHANGE

Abstract

Businesses continue to operate its short-term resource management depends to a great extent, the normal operating activities in a period usually a year to identify its optimal working capital management is concerned. So that it becomes possible to achieve the expected results will provide long-term continuity of operations. In connection with the financing of working capital management decisions and controlling current assets of the business units, given the importance of the study mentioned above, due to the restrictions imposed on listed companies in the period 2005 to 2011, 73 companies were chosen to investigate the hypothesis. Present results in the form of hypotheses of working capital management(Cash conversion cycle companies) Assessment of the indicators of corporate profitability has Suggest that the relationship between cash conversion cycle and its components, including the collection period, inventory turnover and payment of creditors With indicators of economic value added, compared with earnings per share and operating cash flow is a meaningful relationship And corporate executives can reduce the collection period and inventory turnover period, sufficient to increase their profitability. Also, the results in relation to the payment of creditors in accordance with the view that the payment of creditors, the companies that have high profitability are less profitable than companies that are shorter than.