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VFS (VinFast Auto) Cash Conversion Cycle : 60.80 (As of Dec. 2024)


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What is VinFast Auto Cash Conversion Cycle?

Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

VinFast Auto's Days Sales Outstanding for the three months ended in Dec. 2024 was 23.25.
VinFast Auto's Days Inventory for the three months ended in Dec. 2024 was 91.76.
VinFast Auto's Days Payable for the three months ended in Dec. 2024 was 54.21.
Therefore, VinFast Auto's Cash Conversion Cycle (CCC) for the three months ended in Dec. 2024 was 60.80.


VinFast Auto Cash Conversion Cycle Historical Data

The historical data trend for VinFast Auto's Cash Conversion Cycle can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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VinFast Auto Cash Conversion Cycle Chart

VinFast Auto Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24
Cash Conversion Cycle
54.85 52.41 71.45 108.11 91.32

VinFast Auto Quarterly Data
Dec20 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Cash Conversion Cycle Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 108.23 170.07 130.73 121.81 60.80

Competitive Comparison of VinFast Auto's Cash Conversion Cycle

For the Auto Manufacturers subindustry, VinFast Auto's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


VinFast Auto's Cash Conversion Cycle Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, VinFast Auto's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where VinFast Auto's Cash Conversion Cycle falls into.


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VinFast Auto Cash Conversion Cycle Calculation

Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.

Cash Conversion Cycle is one of several measures of management effectiveness.

VinFast Auto's Cash Conversion Cycle for the fiscal year that ended in Dec. 2024 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=25.19+152.88-86.75
=91.32

VinFast Auto's Cash Conversion Cycle for the quarter that ended in Dec. 2024 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=23.25+91.76-54.21
=60.80

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


VinFast Auto  (NAS:VFS) Cash Conversion Cycle Explanation

Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.


Be Aware

CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.

The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.


VinFast Auto Cash Conversion Cycle Related Terms

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VinFast Auto Business Description

Traded in Other Exchanges
Address
Dinh Vu – Cat Hai Economic Zone, Cat Hai Islands, Cat Hai Town, Cat Hai District, Hai Phong, VNM
VinFast Auto Ltd manufactures cars, and motor vehicles, renders leasing activities, trades smartphones, and related businesses. The company is engaged in designing and manufacturing premium EVs, e-scooters, and e-buses. The company's initial EV product line is an all-new range of fully electric A- through E-segment SUVs. The Company has three reportable segments, namely Automobiles, E-scooter, Spare parts & Aftermarket services. The Automobiles segment includes the design, development, manufacturing, and sales of cars and electric buses; The E-scooter segment includes the design, development, manufacturing, and sales of e-scooters; the Spare parts & Aftermarket services segment includes the sales of spare parts and rendering of aftermarket services for automobiles and e-scooters.