CASH CONVERSION CYCLE IN VIETNAMESE AQUACULTURE INDUSTRY: AN INVESTIGATION INTO ITS EFFECTS ON FINANCIAL PERFORMANCE

Abstract

Cash conversion cycle (CCC) has played a fundamental element to firm’s financial management. The study investigates how cash conversion cycle have effects on financial performances of firms by using 222 financial statements from 42 Aquaculture Companies in period of time from 2013-2018. The research was conducted with a goal to examine the association of Cash Conversion cycle as an independent variable and explained variables measured by Net operating profitability (NOP), return on equity (ROE) and return on asset (ROA). Following that, Cash Conversion Cycle has a negative impact on profitability determined by NOP, ROE and ROA, while Average Collection Period affects positively to NOP, ROE and ROA. Besides, Average Payment Period influences significant negatively to NOP, ROE and ROA.