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Cited by 1Working Capital and Financial PerformanceSupply Chain and Inventory ManagementFinancial Analysis and Corporate Governance

Influence of Cash Conversion Cycle on Government Agency Profitability: A Case of Tanzania Electricity Supply Company – Dar es Salaam

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Fuime, Daria, Jilenga, Moga·2024·The Accountancy and Business Review
DOI 10.59645/abr.v16i1.173
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Abstract

This study sought to examine the influence of the cash conversion cycle on government agency profitability, A Case of Tanzania Electricity Supply Company – Dar es Salaam. In this study, the Trade-off theory was employed. A descriptive research design was utilized, and a quantitative approach was employed. The research was accomplished by considering a population of 420 staff members from the TANESCO – Dar es Salaam Region Offices as the participants, selected using a simple random sampling technique. For the collection of primary data, a questionnaire was employed as the primary data collection tool, and secondary data was collected through document review. The collected data underwent rigorous analysis using a combination of descriptive and inferential statistics with the support of the SPSS version 26. Findings revealed that the length of the cash conversion cycle, a well-optimized cash conversion cycle, timely management of cash flow, and working capital significantly affect the profitability of the organization. The study recommends that TANESCO should optimize working capital management to boost cash flow and profitability. Future research can explore technological solutions and advanced financial software for further improvement.

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Crossref · 10.59645/abr.v16i1.173

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9 of 9 references verified0 citation errors · 0 not checkable

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  • [3, 13] established a considerable positive link between CCC and profitability.

    “As illustrated, [3, 13] established a considerable positive link between CCC and profitability”

    From Exploring the Causal Effect of Cash Conversion Cycle Signals on Profitability of Tanzanian Manufacturing Firms (2024) · cites this paper as [13]

    The Discussions section says efficient cash conversion cycle management is positively correlated with improved profitability at TANESCO. It also says a shorter cycle is associated with higher profitability and a longer one has a negative impact. Thus the paper supports a positive link with cycle efficiency, not an unqualified positive link between cycle length and profitability; it does not establish the claimed magnitude. (LLM, conf=0.83)

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  • The reviewed literature presents mixed findings regarding the correlation of CCC components with profitability, showing either positive or negative relationships.

    “Researches present mixed findings regarding the correlation of CCC components with profitability. The reviewed literature showed either positive relationship or negative relationship.”

    From Exploring the Causal Effect of Cash Conversion Cycle Signals on Profitability of Tanzanian Manufacturing Firms (2024) · cites this paper as [13]

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Research works printed but not linked: 9

  1. Binafif, M. S., et al. (2021) Working Capital Management and Profitability: Evidence from Gulf Cooperation Council Countries. International Journal of Financial Research, 12(2), 266-281.
  2. Hakim, M., Kasiran, F. W., Mohamad, N. A., & Chin, O. (2020) Working Capital Management and Firm Profitability: Evidence from Malaysian Government-Linked Companies. Journal of Asian Finance, Economics and Business, 7(5), 99-107.
  3. Lazaridis, I., & Tryfonidis, D. (2006) Relationship between Working Capital Management and Profitability of Listed Companies in the Athens Stock Exchange. Journal of Financial Management and Analysis, 19(1), 26-35.
  4. Maad A. Q., Wang, J., & Gong, T. (2022) Impact of working capital management on e-2546-1982 p-0856-7263 profitability: evidence from listed companies in Qatar. Journal of Money and Business, 2(1), 70-81. DOI 10.1108/JMB- 08-2021-0032 · DOI · Paper page
  5. Makoni, T. M., Muringani, B. V., & Mapuranga, T. I. (2019) An empirical study of the impact of working capital management on profitability of selected Zimbabwean parastatals. Journal of Economics and Behavioral Studies, 11(6), 51-61.
  6. Modigliani, F., & Miller, M. H. (1958) The Cost of Capital, Corporation Finance and the Theory of Investment. The American Economic Review, 48(3), 261-297.
  7. Pandey, A., Gill, A., Biger, N., & Mathur, N. (2018) Working Capital Management in Indian Central Public Sector Enterprises: An Empirical Investigation. Journal of Public Budgeting, Accounting & Financial Management, 30(1), 67-85.
  8. Sathyamoorthi, C.R. (2020) The Impact of Working Capital Management on Profitability: Evidence from the Listed Retail Stores in Botswana. Applied Finance and Accounting, 4(1), 20-28.
  9. Yadav, R., & Sharma, A. (2022) Working Capital Management and Firm Profitability: Empirical Evidence from India. Global Business Review, 17(5), 1079-1092.

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Authors
Fuime, D., & Jilenga, M.
Affiliations
Institute of Accountancy Arusha (TZ)
ORCID
Jilenga, Moga
Venue
The Accountancy and Business Review
Publisher
Institute of Accountancy Arusha
Published
2024-06-21
Volume
16
Issue
1
ISSN
  • 0856-7263 (ISSN-L)
  • 2546-1982
DOI
10.59645/abr.v16i1.173
OpenAlex
W4399887167
Cited by
1
References
9
Citations by year
2024: 1
FWCI
1.00
Type
journal article
Language
en
Open access
Licence
iaa.ac.tz/ (unspecified)
Locations
The Accountancy and Business Review (publishedVersion)
Topics
  • Social Sciences › Business, Management and Accounting › Accounting › Working Capital and Financial Performance
  • Social Sciences › Business, Management and Accounting › Management Information Systems › Supply Chain and Inventory Management
  • Social Sciences › Business, Management and Accounting › Accounting › Financial Analysis and Corporate Governance
Keywords
cash conversion cycle, working capital management, cash flow management, trade-off theory, public finance, Dar es Salaam

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