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Influence of cash conversion cycle on financial performance of coconut oil mills in Western Tamil Nadu

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N. Deepa, S.D. Sivakumar, Sagar Surendra Deshmukh, and M. Malarkodi

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Abstract

Indian Journal of Economics and Development
Year : 2016, Volume : 12, Issue : 1
First page : ( 143) Last page : ( 150)
Print ISSN : 2277-5412. Online ISSN : 2322-0430.
Article DOI : 10.5958/2322-0430.2016.00016.0

Influence of Cash Conversion Cycle on Financial Performance of Coconut Oil Mills in Western Tamil Nadu

Deepa N.*, Sivakumar S.D., Deshmukh Sagar Surendra, Malarkodi M.
Department of ARM, Tamil Nadu Agricultural University, Coimbatore-641 003

*Corresponding author’s email: ndeepa@tnau.ac.in

JEL Codes: G33, L25, L60, Q13, Q18

Online published on 5 February, 2016.

Abstract
This study analyzed the effect of cash conversion cycle on financial performance of coconut oil mills in Western Tamil Nadu. The data were collected from 40 coconut oil mills in western Tamil Nadu for five-year period from 2009–10 to 2013–14. Based on the Overall Working Capital Management Efficiency Index, the coconut oil mills were classified as efficient (70 per cent) and inefficient (30 per cent) category. Regression results revealed thatthere was a significant influence of cash conversion cycle, liquidity of firm and capital structure on financial performance of coconut oil mills in Western Tamil Nadu.