no-1

The impact of cash conversion cycle on the profitability of food and beverage companies in Vietnam: Commentary from quantitative analysis

Authors:
Nguyên Lê Trần Khôi, Thảo Phạm Phương, Anh Nguyễn Đức, Khánh Tạ Ngọc, Hoàng Lê Nhật
Pages:
100
View:
681
Position:
1/1
Download:
326
This research paper focuses on examining the relationship between the cash conversion cycle (CCC) and the profitability of Food and Beverage (F&B) companies in Vietnam by utilizing quantitative models. Analyzing a sample of 23 companies in the period from 2015 to 2021, the study reveals that a reduction in the CCC positively influences profitability, as measured by the return on assets (ROA) ratio. The study further dissects the impact of CCC’s components, including days payable outstanding (DPO), days inventory outstanding (DIO), and days sales outstanding (DSO), on profitability. Based on regression analysis results, the study recommends that companies under study endeavor to reduce the durations of DPO, DIO, DSO, and CCC to improve profitability. Implementing strategies to tighten credit policies and optimize capital utilization is suggested as a means to achieve this objective.
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Vinh University journal of science

Tạp chí khoa học Trường Đại học Vinh

ISSN: 1859 - 2228

Governing body: Vinh University

  • Address: 182 Le Duan - Vinh City - Nghe An province
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License: 163/GP-BTTTT issued by the Minister of Information and Communications on May 10, 2023

Open Access License: Creative Commons CC BY NC 4.0

 

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