Proxy Variables | Definitions | Predicted Sign |
CCP | Accounts receivables divided by sales and multiplied by 365 days | +/− |
CPP | Accounts payables divided by cost of goods sold and multiplied by 365 days | +/− |
CRA | current assets divided by current liabilities | +/− |
IVP | Inventory divided by cost of goods sold and multiplied by 365 days | +/− |