THE IMPACT OF CASH CONVERSION CYCLE ON THE PERFORMANCE OF CEMENT INDUSTRY IN SAUDI ARABIA

The primary objective of this research is to examine the relationship between cash conversion cycle (CCC) and net profit margin (NPM) of cement industry of Saudi Arabia. The study selected five companies out of 14 companies from Saudi Arabia's cement industry over the period from 2009 to 2019. The relationship between CCC and NPM was investigated using correlation and regression analysis. The analysis shows that the cash exchange period and the net profit margin have a negative association. As explained this study is based on cement industry hence its result cannot be generalised with other manufacturing companies however similar studies across the Saudi industries could be conducted to identify the presence of a relationship between CCC and NPM