Abstract:

The purpose of this study is to investigate how cash conversion cycles of the listed companies were affected from global economic crisis. The sample of the study includes the companies listed in the following three sectors of ISE: stone-soil, textile, and trade. The study put out the following results. Among the sectors subject to the study, the longest cash conversion cycle belongs to the textile sector. The cash conversion cycles of the companies operating in stone-soil and textile sectors have been negatively affected from the crisis period. In this, lengthening of the receivables collection period and inventory conversion period has been effective. Cash conversion cycle of the trade sector has shortened in the crisis period, contrary to other sectors. In this, lengthening of payables deferral period has been effective. The following proposals could be provided to the companies to shorten their cash conversion cycles: reducing the amount of time that goods are held in inventory by improving theinventory control process or by having suppliers deliver raw materials exactly when they are needed in the production process; shortening the receivables collection process by offering discounts to customers who pay faster, and charging interest on accounts that are overdue; lengthening the payables deferral period by paying companies’ own bills more slowly.

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