I.

FPT
1. Operating cycle

 Receivable turnover
- Receivables turnover is a financial ratio that measures how efficiently a
company manages its accounts receivable by comparing the amount of
credit sales during a period to the average accounts receivable
outstanding during that same period.
- 2021-2023: FPT's receivables turnover remained above 6, with slight
variations but consistently at a high and stable level. Therefore, FPT
takes between 59 to 60 days to collect receivables from customers.
 FPT maintains stability and efficiency in managing and collecting
receivables from customers over the years.
 Inventory turnover
- Inventory turnover is a financial ratio that measures how many times a
company's inventory is sold and replaced over a certain period. It reflects
the efficiency with which a company manages its inventory by
comparing the cost of goods sold (COGS) to the average inventory level
during the same period.
- The inventory turnover ratio of FPT in 2021 and 2022 both stood around
15, but by 2023, it increased to 18. The company's average inventory
holding period has remained stable over the past three years, notably
decreasing in 2023. This also reflects FPT's efforts to reduce the time its
inventory is held before being sold.
 A higher inventory turnover ratio and a lower average inventory
holding period are signs of FPT effectively managing its inventory
 and optimizing resource utilization. This could contribute to
enhancing the company's profitability and financial performance.
 Operating cycle

- The operating cycle is a financial metric that measures the time it takes
for a company to convert its investments in inventory and other resources
into cash flows from sales. It encompasses the entire process from
purchasing inventory to receiving cash from the sale of goods or services.
- The operating cycle has decreased from 2021 to 2023. This may indicate
that FPT has improved the efficiency of their business processes, from
purchasing inventory to collecting cash from customers, thereby reducing
the time capital is tied up in business operations.
- Despite minor fluctuations between years, the reduction in the operating
cycle over time is a positive sign, showing that FPT is working to
enhance the efficiency of its operations and strengthen its financial
position.
- The decrease in FPT's operating cycle over the past 3 years is a positive
signal, indicating improvement in financial management and business
operations of the company.
1. Cash cycle
 Payable turnover
- Payable turnover is a financial ratio that measures how efficiently a
company manages its accounts payable by comparing the amount of
credit purchases during a period to the average accounts payable balance
during that same period. It indicates how many times, on average, a
company pays off its suppliers during a certain period.
- The payable turnover ratio of FPT increased significantly from 2021 to
2023. This indicates that FPT is paying its suppliers more quickly and
efficiently over the years.
- The average accounts payable turnover period for customers decreased
sharply from 2021 to 2023. FPT has improved its financial management
and cash management efficiency, reducing the time that money is held
before being paid to suppliers.
- A higher payable turnover ratio and a lower average accounts payable
turnover period are signs of FPT effectively managing and utilizing its
financial resources.
 Cash cycle
 - The cash cycle is a financial metric that measures the time it takes for a
company to convert its investment in inventory into cash flows from
sales, and then back into cash again. It represents the time period between
a company's cash outflows for purchasing inventory and its cash inflows
from collecting payments for goods sold.
- The cash cycle of FPT has increased from 2021 to 2023. This may
indicate that the time FPT invests money into their business operations
has extended. Additionally, it also reflects the development and
investment strategy of the company.

 The operating and cash cycles of a business are industry and company
specific due to variations in the nature of operations, business models, and
market dynamics.
 JVC has the longest accounts receivable and inventory turnover among the
three companies. Because JVC is a company selling products related to
medical supplies, it has slower payments. This means JVC has an operating
cycle and cash cycle of nearly a year. Whereas, FPT has the shortest
inventory turnover, hence the shortest operating cycle. FPT is a
conglomerate with its main businesses in information technology and
education, so its accounts receivable turnover is also the shortest. The
operating cycles of BBC and FPT are nearly equal, but BBC has the shortest
cash cycle. BBC is a food manufacturing company, so its accounts
receivable turnover is very short because customers tend to pay in cash or
credit card.

2. The cash budget

3. In 2024, the quarterly sales forecast for FPT is as follows: 12,850 billion
VND; 13,730 billion VND; 15,140 billion VND; and 16,160 billion VND.
FPT begins the new year with accounts receivable of 9,900 billion VND. For
the 4 quarters of 2024, the forecasted total amount collected will be: 6,425
billion VND; 6,865 billion VND; 7,570 billion VND; and 8,080 billion
VND. The company's payments to suppliers in a quarter are equal to 20% of
 the predicted sales of the previous month. Employee salaries, taxes, and
other expenses typically account for 10% of revenue, while long-term costs
represent 5% of the company's expenditure. In 2024, FPT plans to allocate
6,500 billion VND for investment and infrastructure expansion. Therefore,
the projected net cash flow for FPT in the 4 quarters will be: 303 billion
VND, 435 billion VND, 646 billion VND, and 799 billion VND.

II. Japan Vietnam Medical Instrument Joint Stock Company

After comparing the indicators as well as the operating cycle of Viet Nhat Medical Equipment
Joint Stock Company and Bibica Joint Stock Company. We see that Viet Nhat's short-term
finances show bad signs. So we compared Viet Nhat's financial indicators with those over the
previous years to better clarify the financial situation of this company:
- The accounts receivable turnover ratio of JVC in 2022 is 0.94, with a customer receivable
period of 389 days. Over the past 3 years (2020-2022), this ratio has shown a slightly increasing
trend (0.84->0.86->0.94), indicating a more effective recovery of outstanding receivables from
customers.

- The inventory turnover ratio of JVC in 2022 is 4.54 times, with an average inventory holding
period of 80 days. This ratio in 2022 is lower than in 2021 (4.54<5.36), indicating more
inventory being held up in 2022 compared to 2021.

- The accounts payable turnover ratio in 2022 is 7.64 times, with an average payment period to
suppliers of 50.43 days. This ratio is lower than in 2020 and 2021.

 This business is heavily indebted, with high risk of default. Suppliers have a low
assessment of the company's financial status, and the company's credibility has also
severely declined.
 JVC trades in medical supplies and equipment sold to hospitals, healthcare facilities,
which often have high values, resulting in slower accounts receivable turnover compared
to retail companies.
 The financial situation has been incurring losses for JVC in recent years due to tax
reporting violations and the company's management being arrested.

III. Vinhomes JSC

We also compare the short-term financial ratios of VinHomes Joint Stock Company to see more
clearly the financial situation of a company in the real estate industry.

- The inventory turnover ratio in 2022 is 0.68, indicating an inventory holding period of 535
days.

- The accounts receivable turnover ratio in 2022 is 4.12, resulting in a collection period of 89
days.

- The accounts payable turnover ratio in 2022 is 2.3, leading to a payment period of 159 days.

- The cash conversion cycle is 465 days. Therefore, Vinhomes' cash conversion cycle in 2022 is
465 days, equivalent to 1 year and 3 months.
- Vinhomes had a cost of goods sold of 31.696 trillion VND in 2022, with beginning and ending
inventory values of 28.579 and 64.362 trillion VND respectively (average inventory value of
46.470 trillion VND).

- VHM's net revenue from sales and services in 2022 was 62.393 trillion VND. The beginning
and ending total assets were 230.516 and 361.812 trillion VND respectively (average total assets
of 296.164 trillion VND).

- Vinhomes' total asset turnover ratio during the period of 2020-2022 was around 0.2, indicating
that it takes approximately 3 years for Vinhomes to convert its entire assets (real estate,
unfinished projects, inventory, accounts receivable, etc.) into revenue.

 It can be observed that in 2022, Vinhomes experienced a sharp decline in house sales
revenue compared to 2021, leading to a reduction in the cost of goods sold. Vinhomes
executed numerous large projects in 2022, causing both inventory and unfinished real
estate assets to increase significantly. Consequently, Vinhomes' inventory turnover ratio
decreased from 1.01 in 2021 to 0.68 in 2022.
 In 2022, despite the significant decrease in net revenue, Vinhomes' total assets increased
due to new projects launched during the year. Consequently, Vinhomes' total asset
turnover ratio decreased. However, 2022 was a challenging year for real estate companies
in general, and Vinhomes' performance during the period of 2020-2022 was considered
good within the industry.

1. Compare financial ratios of companies in the food industry and companies in the
specialized medical industry.
We have relied on the financial statements of two companies in two industries: food and medical
equipment, Bibica confectionery company, and Viet Nhat medical equipment company, as a
practical example of the difference of short-term finance between these two industries in
Vietnam. We have calculated indicators such as Inventory period, Receivable period, Payable
period, Operating cycle, and Cash cycle and summarized the results in the table below.

Looking at the table we can see that:

- Company in the medical device industry turn over their inventory 4 times, nearly 3 times less
than a confectionery company.

- JVC's inventory stays in the warehouse for 80 days before being released, which is twice as
long as the number of days Bibica's inventory stays in the warehouse.
- JVC's receivables period is also much longer than Bibica's amount in the year

- In addition, the number of times JVC has to pay debt during the year is also more than Bibica

=>The operating cycle of the company in the food industry is much longer than the business
cycle of the company in the medical equipment supply industry

=> Bibica company's cash cycle is (-83) which means the company sells pharmaceutical
products before having to pay and that brings great benefits to the company and vice versa for
JVC, the cash cycle is longer cash cycle (418 days), much longer than Bibica, which show that
the company take a long time to generate cash from its inventory investments.

Some reasons for this difference:

-Food has a much shorter shelf life than medical equipment, so the inventory period of food
companies will be shorter than that of medical equipment companies.

-The food industry's receivable period is very short because customers tend to pay in cash or use
credit cards.

-The medical specialty industry has a longer receivable period, possibly due to slow insurance
payments.