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The Impact of Cash Conversion Cycle on Profitability: The Case of Dairy Cooperatives in Poland Cover

The Impact of Cash Conversion Cycle on Profitability: The Case of Dairy Cooperatives in Poland

Zagadnienia Ekonomiki Rolnej
Volume 385 (2025): Issue 4 (December 2025)
By: Katarzyna Ziętek-Kwaśniewska  
Open Access
|Dec 2025

Figures & Tables

Correlation matrix

VariablesROA_DAROACCCLEVSIZE1SIZE2GROWTH
ROA_DA1.000
ROA0.926***1.000
CCC−0.091−0.107*1.000
LEV−0.002−0.078−0.096*1.000
SIZE10.189***0.101*0.444***−0.196***1.000
SIZE20.224***0.131**0.390***−0.123**0.980***1.000
GROWTH0.444***0.462***−0.182***0.0150.107*0.152***1.000

Estimation results for models 1–4

Variables and testsROA_DAROA
Model 1Model 2Model 3Model 4
CCC−0.00014(0.0008)−0.00003(0.0008)−0.00018(0.0008)−0.00011(0.0008)
LEV−0.3021***(0.0733)−0.2980***(0.0692)−0.3312***(0.0722)−0.3306***(0.0694)
SIZE1−0.0145(0.0340) −0.0139(0.0343)
SIZE2 0.0130(0.0293) 0.0040(0.0299)
GROWTH0.1711***(0.0516)0.1627***(0.0530)0.1703***(0.0503)0.1667***(0.0523)
Constant0.3440(0.3475)0.0389(0.3304)0.3068(0.3552)0.1135(0.3403)
F testF(9,52) = 6.42 p < 0.001F(9,52) = 6.29 p < 0.001F(9,52) = 6.62 p < 0.001F(9,52) = 6.52 p < 0.001
Breusch-Pagan LM testχ2(1) = 61.10 p < 0.001χ2(1) = 59.48 p < 0.001χ2(1) = 36.81 p < 0.001χ2(1) = 35.93 p < 0.001
Hausman testχ2(4) = 35.93 p < 0.001χ2(4) = 35.62 p < 0.001χ2(4) = 29.03 p < 0.001χ2(4) = 29.87 p < 0.001
within R20.37240.37250.37230.3718
No. of obs.318318318318

Turning points for models 5–8

SpecificationModel 5Model 6Model 7Model 8
Optimal CCC level22.2623.0521.4621.95

Descriptive statistics

VariableMeanSDMinMaxQ1MeQ3
ROA_DA0.06320.0685−0.31940.34940.03340.06680.0925
ROA0.01980.0643−0.35300.30170.00000.01800.0455
CCC14.872612.1390−25.578678.69887.152813.887321.7928
LEV0.44600.13460.13710.79340.34180.45120.5526
SIZE110.60901.63206.850314.75649.441110.344811.9224
SIZE211.60771.57607.966316.058210.453011.269412.7689
GROWTH0.06690.2049−0.52471.5916−0.03830.04280.1286

Definition of variables used in the study

RoleVariableDefinition
DependentCooperative profitability
[ROA_DA] EBITDA  average amount of total assets {{{\rm{ EBITDA }}} \over {{\rm{ average amount of total assets }}}}
[ROA] EBIT  average amount of total assets {{{\rm{ EBIT }}} \over {{\rm{ average amount of total assets }}}}
IndependentCash Conversion Cycle [CCC]CCC = Inventory period + Receivables period – Payables period
where:
Inventory period= average inventories  sales ·365 Receivables period= average trade receivables  sales ·365Payables period= average trade payables  sales 365\matrix{ {{\rm{Inventory period}} = {{{\rm{ average inventories }}} \over {{\rm{ sales }}}}\cdot365{\rm{ }}} \cr {{\rm{Receivables period}} = {{{\rm{ average trade receivables }}} \over {{\rm{ sales }}}}\cdot365} \cr {{\rm{Payables period}} = {{{\rm{ average trade payables }}} \over {{\rm{ sales }}}}365} \cr }
ControlSize
[SIZE1]ln(average total assets)
[SIZE2]ln(sales)
Leverage [LEV]average total debtaverage amount of total assets{{{\rm{average total debt}}} \over {{\rm{average amount of total assets}}}}
Growth [GROWTH] salest− salest−1 salest−1{{{\rm{ sale}}{{\rm{s}}_t} - {\rm{ sale}}{{\rm{s}}_{t - 1}}} \over {{\rm{ sale}}{{\rm{s}}_{t - 1}}}}

Estimation results for models 5–8

Variables and testsROA_DAROA
Model 5Model 6Model 7Model 8
CCC0.00178*(0.00096)0.00183*(0.00097)0.00153(0.001)0.00161(0.00099)
CCC2−0.00004***(0.00001)−0.00004***(0.00001)−0.00004***(0.00001)−0.00004***(0.00001)
LEV−0.2216***(0.0726)−0.2249***(0.0720)−0.2595***(0.0699)−0.2631***(0.0684)
SIZE1−0.0203(0.0340) −0.0190(0.0345)
SIZE2 −0.0036(0.0278) −0.0114(0.0283)
GROWTH0.1730***(0.0486)0.1726***(0.0485)0.1719***(0.0476)0.1758***(0.0480)
Constant0.3555(0.3512)0.1846(0.3128)0.3170(0.3604)0.2482(0.3226)
F testF(10,52) = 26.26p < 0.001F(10,52) = 25.73p < 0.001F(10,52) = 23.93p < 0.001F(10,52) = 23.79p < 0.001
Breusch–Pagan LM testχ2(1) = 71.12p < 0.001χ2(1) = 68.97p < 0.001χ2(1) = 44.07p < 0.001χ2(1) = 43.22p < 0.001
Hausman testχ2(4) = 20.38p < 0.001χ2(4) = 21.57p < 0.001χ2(5) = 22.15p < 0.001χ2(5) = 24.73p < 0.001
within R20.39000.38880.38650.3859
No. of obs.318318318318
DOI: https://doi.org/10.30858/zer/211833 | Journal eISSN: 2392-3458 | Journal ISSN: 0044-1600
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Language: English
Page range: 92 - 109
Submitted on: Jul 1, 2025
|
Accepted on: Oct 8, 2025
|
Published on: Dec 22, 2025
Published by: The Institute of Agricultural and Food Economics – National Research Institute
In partnership with: Paradigm Publishing Services
Publication frequency: 4 issues per year
Keywords:
cash conversion cycle,
working capital management,
profitability,
dairy cooperatives,
panel data
Related subjects:
Business and economics,
Political economics,
Microeconomics,
Macroeconomics,
Economic policy,
Business management,
Industries,
Agribusiness, food industry

© 2025 Katarzyna Ziętek-Kwaśniewska, published by The Institute of Agricultural and Food Economics – National Research Institute
This work is licensed under the Creative Commons Attribution 4.0 License.

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