w88 link w88 moi nhatHiệu quả quản lý vốn lưu động của các công ty nhựa niêm yết tại Việt Nam

ABSTRACT:

This study is to analyze w88 link w88 moi nhat working capital management efficiency of plastic companies in Vietnam by analyzing financial statements of 31 listed plastics companies from 2015 to 2019.  In this study, working capital management effectiveness is evaluated by three indexes includingPerformance index of working capital management(PI), Utilization index of working capital management (UI), and Efficiency index of working capital management (EI). w88 link w88 moi nhat study’s results indicate that w88 link w88 moi nhat majority of listed plastic companies had goodUtilization index of working capital management. Meanwhile, only nearly half of businesses had good Performance index of working capital management andEfficiency index of working capital managementin this period.

Keywords:Performance index of working capital management, utilization index of working capital management, efficiency index of working capital management.

1. Introduction

Working capital managementis one of w88 link w88 moi nhat important financial management activities of firms. Researchers Amajad & Hussain (2014) emphasized w88 link w88 moi nhat importance of working capital management by stating: “Many companies fail due to lack of appropriate working capital management methods”. This implies that working capital management policies are precisely what is required for w88 link w88 moi nhat survival of a company. Adu (2013) argued that proper working capital management is essential for any company and that is w88 link w88 moi nhat reason why it has become a metric for determining a company's performance. Mun and Jang (2015) stated that working capital plays an important role in w88 link w88 moi nhat day-to-day operation of w88 link w88 moi nhat business to ensure that w88 link w88 moi nhat business operates smoothly. Similarly, Mwangi et al. (2014) suggested that w88 link w88 moi nhat important elements of working capital should be managed in parallel by organizations if they are successful. Other researchers believe that working capital plays a key role compared to capital budget and financial decisions (Agyei & Yeboah, 2011; Mun & Jang, 2015). This means companies must have effective working capital management in order to improve w88 link w88 moi nhat company's performance. Additionally, many empirical studies explored w88 link w88 moi nhat relationship between working capital management and w88 link w88 moi nhat profitability of businesses. Moreover, effective working capital management improves firm’s performance.

In Vietnam, w88 link w88 moi nhat plastic industry is increasingly playing an important role in w88 link w88 moi nhat life. Plastics or polymers are used as materials to produce many kinds of items as well as serving w88 link w88 moi nhat development of many other economic sectors such as electricity, electronics, telecommunications, transportation, fisheries, and agriculture. By 2019, w88 link w88 moi nhat scale of w88 link w88 moi nhat plastic industry is estimated at USD 15 billion, equivalent to 6.7% of Vietnam's GDP in w88 link w88 moi nhat same period (FPTS,2019). However, previous studies on working capital management conducted in food and pharmaceutical companies and there is no research on working capital management in plastic enterprises. In addition, in previous studies, authors usually used conventional ratios to evaluate w88 link w88 moi nhat effectiveness of working capital management such as: working capital ratio, current ratio, quick ratio, cash conversion cycle, inventory conversion period and receivables conversion period. Performance index of working capital management, utilization index of working capital management and efficiency index of working capital management have not used to evaluate w88 link w88 moi nhat effectiveness of working capital management in Vietnam. For these reasons, w88 link w88 moi nhat purpose of this paper is to analyze working capital management efficiency in selected plastic companies with these three indexes.

2. Literature Review

Many studies have shown that effective working capital management contributes to firms’ success. Deloof (2003) found a significant negative relationship between w88 link w88 moi nhat receivables turnover ratio, w88 link w88 moi nhat inventory turnover ratio as well as w88 link w88 moi nhat payables turnover ratio of Belgian firms and profitability. Similarly, Eljelly (2004) found a negative relationship between firms' profitability and liquidity. Moreover Padachi (2006) studied small manufacturing enterprises in Mauritius for w88 link w88 moi nhat period 1998-2003 and w88 link w88 moi nhat analytical results showed that accounts receivable, accounts payable, and cash conversion cycle were negatively related to ROA (statistical significance at w88 link w88 moi nhat 5% level). Lazaridis and Tryfonnidis (2006) also found a significant relationship between profitability and w88 link w88 moi nhat cash conversion cycle as well as its components (accounts receivable, payables and inventories).

Afza and Nazir (2011) used w88 link w88 moi nhat Bhattacharya’s indexes (1997) to examine w88 link w88 moi nhat working capital management efficiency of w88 link w88 moi nhat cement firms in Pakistan for w88 link w88 moi nhat period from 1988 to 2008. w88 link w88 moi nhat study found that w88 link w88 moi nhat cement firms under this study have good working capital management efficiency during w88 link w88 moi nhat period. After that, Press, Valipour and Jamshidi (2012) also used w88 link w88 moi nhat Bhattacharya’s indexes to evaluate working capital management efficiency. w88 link w88 moi nhat study found that there is positive relationship between performance index, efficient index, and utilization index with w88 link w88 moi nhat efficiency of w88 link w88 moi nhat asset. However, w88 link w88 moi nhat results show that cash conversion cycle inversely significant relationship on efficiency of w88 link w88 moi nhat assets.

w88 link w88 moi nhat research is motivated by previous studies and limited research from w88 link w88 moi nhat plastic enterprises in Vietnam. This study thus examines working capital management effectiveness of plastic firms in Vietnam by using w88 link w88 moi nhat Bhattacharya’s indexes.

3. Methodology

In order to analyze working capital management efficiency of plastic companies in Vietnam. A sample of 41 listed plastic companies was taken from HOSE and HNX stock exchanges databases for w88 link w88 moi nhat period 2015-2019. However only 31 companies with complete financial data were selected for analysis. Data are extracted from w88 link w88 moi nhat company's annual financial statements.

To measure w88 link w88 moi nhat effectiveness of working capital management, this study used w88 link w88 moi nhat index developed by Bhattacharya (1997). This study differs from previous research by using a sample-based index that has not been previously tested in Vietnam.

Bhattacharya developed a model for measuring and monitoring w88 link w88 moi nhat efficiency of working capital management which is similar to cost management. If there is a more than proportionate rise in current assets with w88 link w88 moi nhat increase in sales, w88 link w88 moi nhat costs of an enterprise also increase, both in terms of blockage of additional funds and w88 link w88 moi nhat interest. A firm cannot be said to have an efficient working capital management if it is registering a more than proportionate rise in current assets. Modern day financial management aims at reducing w88 link w88 moi nhat level of current assets without, of course, ignoring w88 link w88 moi nhat risk of stock outs, etc. This is similar to that of cost management, where quality cannot be sacrificed at w88 link w88 moi nhat expense of reducing costs. w88 link w88 moi nhat model for measuring w88 link w88 moi nhat efficiency of working capital management is as follows:

Table 1: 3 indexes of working capital management

Source: Total management by ratio (Bhattacharya (1997))

4. Discussion and results

Table 1 shows w88 link w88 moi nhat working capital management efficiency ratios of selected plastic listed companies. w88 link w88 moi nhat indicators include: Performance Index (PI_WCM), Usage Index (UI_WCM) and Performance Index (EI_WCM).

Table 2: Working capital management efficiency indexes of listed plastic companies

Source: Indexes calculated by w88 link w88 moi nhat author

Utilization Index:According to w88 link w88 moi nhat results in table 2, most companies were selected (24 out of 31 companies) effectively used their existing assets. w88 link w88 moi nhat utilization indexes are greater than 1. For instance, An Tien plastics company’s average utilization index is 1.53 (1). Only 7 companies have bad utilization index such as Pha Le plastics company, Sadico Can Tho company, Plastic bags company with their utilization indexes are less than 1. However, w88 link w88 moi nhat lowest index is approximately 1.

Performance Index:In general, in w88 link w88 moi nhat period 2015-2019, there are 14 companies which working capital management is managed properly with w88 link w88 moi nhat performance index greater than 1. Notably, Tan Phu plastics company has average performance index of 1.79 ( 1) and w88 link w88 moi nhat highest index that w88 link w88 moi nhat company gained is 5.5. However, there are some companies with low performance index like Danang Plastic company with w88 link w88 moi nhat mean value of PI is 0.62. These figures indicate that w88 link w88 moi nhat revenue generated by this company is less than w88 link w88 moi nhat amount of working capital used.

Efficiency Index:According to w88 link w88 moi nhat table 2, w88 link w88 moi nhat results show 15 out of w88 link w88 moi nhat total 31 selected companies have effective working capital management with efficiency index greater than 1. Typically, Tan Phu plastics company, Tan Tien plastics company and Saigon plastics company have highest efficiency index (1.82, 1.28 and 1.22 respectively). w88 link w88 moi nhat remaining companies have bad efficiency index with EI less than 1 such as Danang plastics company (EI is 0.62), Dong A plastics company (EI is 0.73) and Hanel plastics company (EI is 0.74). w88 link w88 moi nhat results show that these companies are not using working capital effectively.

In general, w88 link w88 moi nhat three indexes of working capital management efficiency show that listed companies in w88 link w88 moi nhat plastic industry have uneven efficiency levels. While there are many enterprises with very good working capital management efficiency such as Tan Phu plastics company, Tan Tien plastics company and Saigon fishing net company (All these firms have 3 indexes PI, UI and EI greater than 1). In contrast, there are also companies have poor working capital management with all 3 indexes less than 1 like Vinh Khanh Plastics company.

5. Conclusion

This study analyses w88 link w88 moi nhat efficiency of working capital management in w88 link w88 moi nhat listed plastic companies for w88 link w88 moi nhat period from 2015 to 2020. Working capital management efficiency is assessed by w88 link w88 moi nhat working capital management efficiency index. For analysis purposes, 31 out of 40 listed plastics companies were selected. w88 link w88 moi nhat analytical results show that UI indexes of listed plastics companies are very good in this study period with w88 link w88 moi nhat average value of 24 out of 31companies greater than 1. PI index shows that 14 out of 31 companies achieve a mean value greater than 1. In terms of w88 link w88 moi nhat EI, w88 link w88 moi nhat results show that 15 out of 31 companies achieve a mean value greater than 1. Actual results have shown that w88 link w88 moi nhat efficiency of working capital management is very different between companies in w88 link w88 moi nhat plastic industry (about nearly 50% of enterprises achieving good results while w88 link w88 moi nhat remaining companies have not achieved w88 link w88 moi nhat expected results). This result may provide alarming signals for many plastic enterprises in Vietnam and these enterprises have to improve their working capital management to enhance their firm performance.

REFERENCES:
1. Afza T., Nazir, M.S. (2007).Is it better to be aggressive or conservative in managing working capital?Paper presented at Singapore Economic Review Conference (SERC) on August 02-04, 2007, Singapore.

2. Bhattacharya, H. (1999).Total Management by Ratios. New Delhi: Sage Publication In- dia Pvt. Ltd.,.
3. Eljelly, A. M. A. (2004). Liquidity-Profitability Tradeoff: An Empirical Investigation in an Emerging Market.International Journal of Commerce and Management14(2), 48-61.
4. Deloof, M., (2003). Does Working Capital Management Affect Profitability of Belgian Firms?Journal of Business Finance & Accounting,30, 0306-686X.

5. Padachi, K. (2006). Trends in Working Capital Management and its Impact on Firm's Performance: An Analysis of Mauritian Small Manufacturing Firms.International Reviewof Business Research Papers,2, 45-58.

6. Lazaridis, I. and Tryfonidis, D. (2006). Relationship between Working Capital Managementand Profitability of Listed Companies in w88 link w88 moi nhat Athens Stock Exchange.Journal of Financial Management and Analysis,19, 26-35.

Hiệu quả quản lý vốn lưu động của các công ty nhựa

niêm yết tại Việt Nam

TrầnThị Thu Trang

Đại học Thương mại

TÓMTẮT:

Nghiên cứu này nhằm phân tích hiệu quả quản lý vốn lưu động của các công ty nhựa tại Việt Nam thông qua phân tích báo cáo tài chính của 31 công ty nhựa được niêm yết trên sàn chứng khoán từ năm 2015 đến năm 2019. Trong nghiên cứu này, hiệu quả quản lý vốn lưu động được đánh giá thông qua ba chỉ số bao gồm Chỉ số năng lực quản lý vốn lưu động (PI), Chỉ số hiệu dụng quản lý vốn lưu động (UI) và Chỉ số hiệu quả quản lý vốn lưu động (EI). Kết quả cho thấy phần lớn các công ty nhựa được niêm yết có chỉ số hiệu dụng quản lý vốn lưu động ở mức tốt. Trong khi đó, chỉ có gần một nửa số doanh nghiệp được phân tích có chỉ số năng lực quản lý vốn lưu động và chỉ số hiệu quả quản lý vốn lưu động ở mức tốt trong giai đoạn này.

Từ khoá:Chỉ số năng lực quản lý vốn lưu động, chỉ số hiệu dụng quản lý vốn lưu động, chỉ số hiệu quả quản lý vốn lưu động.

[Tạp chí Công Thương - Các kết quả nghiên cứu khoa học và ứng dụng công nghệ, Số 29+30, tháng 12 năm 2020]