The effect of cash cycle on the firm performance: A research on technology companies listed in Borsa Istanbul

Profitability also has a major impact on the cash conversion cycle. The cash conversion cycle has positive and negative effects on the profitability of firms; A company with a long cash conversion cycle has higher sales volume due to long-term loans to commercial customers, while the high investment cost in working capital also leads to a decrease in its profitability. The aim of this study is; to determine the effect of cash conversion cycle on firm performance. In the study, the data set of 12 enterprises whose stocks are traded in Borsa Istanbul and operating in the technology sector, belonging to the period 2010-2019, was used. Accounting-based financial performance indicators are used as dependent variables in the study. Cash conversion period, receivable collection period, which enables the calculation of cash conversion period, stock conversion period and debt payment period are used as independent variables. As a result of the analysis, it has been determined that the receivable, stock and debt conversion period affects the asset and equity profitability of technology companies. Keywords: Cash cycle, firm performance, technology companies, BIST.