Degree
Master of Business Administration Executive
Faculty / School
School of Business Studies (SBS)
Year of Award
2025
Advisor/Supervisor
Mr. Yaseen Ahmed Meenai, Lecturer, Department of Mathematical Sciences
Project Type
MBA Executive Research Project
Access Type
Restricted Access
Keywords
Cash Conversion Cycle (CCC), Working Capital Optimization, Operational Efficiency, Financial Performance, Pakistan Cables Limited (PCL)
Executive Summary
This project examines how Pakistan Cables Ltd. (PCL), a leading player in the Cable Industry, can strengthen liquidity and operational efficiency by optimising its Cash Conversion Cycle (CCC). As a manufacturer in a capital-intensive and price-volatile sector, PCL faces rising financing costs and pressure from ongoing capacity expansion. The study frames CCC optimisation not as an isolated financial metric but as an enterprise-wide imperative requiring inter-department collaboration across finance, supply chain, sales, and governance.
Objectives and scope: The research identifies current CCC performance and its drivers, quantifies financial implications, benchmarks against an industry peer, and develops practical strategies to shorten the cycle without compromising service levels.
Methodology: Using a mixed-methods approach, the study combines six years of financial data with interviews and internal surveys, alongside peer benchmarking. Scenario modelling was applied to estimate the financial impact of reductions in CCC.
Key findings: PCL’s baseline CCC of ~100 days locks up Rs 8.22 billion of working capital. Through targeted improvements particularly in finished-goods management, faster invoicing, and reduced transit times PCL could reduce the CCC by 12 days. This would release ~Rs 1 billion in liquidity and cut finance costs by ~Rs 170 million annually at prevailing interest rates.
Pages
viii, 34
Notes
Project was proceeded in collaboration with PCL
Recommended Citation
Ur Rahman, A., Anjum, S., & Jamil, H. (2025). Optimizing the Cash Conversion Cycle: A Strategic Initiative to Enhance Liquidity and Operational Efficiency at Pakistan Cables Limited (Unpublished graduate research project). Institute of Business Administration, Pakistan. Retrieved from https://ir.iba.edu.pk/research-projects-emba/696
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