Payment conversion in listed enterprises in Vietnam: Evaluation from the money conversion cycle

Abstract

Liquidity in an enterprise is not only measured by some static ratios such as current liquidity and quick liquidity but also is measured by another dynamic ratio such as the time to move from cash flow out to cash flow in. That's the cash conversion cycle. Enterprises in different industries have different characteristics of production and business activities. This article evaluates the current situation of the general cash conversion cycle of 1,531 listed enterprises on the Vietnamese stock market from 2015-2022. Then compare this indicator between industries to show the current situation of cash conversion time of enterprises in each industry. From there, we provide some general recommendations to help enterprises improve cash conversion time.