{"id":999978428,"date":"2025-09-10T21:12:18","date_gmt":"2025-09-10T14:12:18","guid":{"rendered":"https:\/\/bizzi.vn\/?p=999978428"},"modified":"2026-06-09T13:54:38","modified_gmt":"2026-06-09T06:54:38","slug":"what-is-working-capital-turnover-how-to-calculate-working-capital-turnover","status":"publish","type":"post","link":"https:\/\/bizzi.vn\/en\/what-is-working-capital-turnover-how-to-calculate-working-capital-turnover\/","title":{"rendered":"What is Working Capital Turnover? How to Calculate Working Capital Turnover"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">What is working capital turnover? This is an important indicator that helps businesses evaluate the efficiency of short-term capital use, thereby optimizing business operations and cash flow management. In addition, understanding what net working capital is also helps accountants and business owners grasp the liquidity and financial security of the business.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this article, we will guide you in detail on how to calculate working capital turnover, analyze the meaning of each index, and provide practical examples for you to apply effectively in business financial management.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Index<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewbox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewbox=\"0 0 24 24\" version=\"1.2\" baseprofile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/bizzi.vn\/en\/what-is-working-capital-turnover-how-to-calculate-working-capital-turnover\/#1_Vong_quay_von_luu_dong_la_gi\" >1. What is working capital turnover?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/bizzi.vn\/en\/what-is-working-capital-turnover-how-to-calculate-working-capital-turnover\/#2_Cach_tinh_vong_quay_von_luu_dong_nhu_the_nao\" >2. How to calculate working capital turnover?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/bizzi.vn\/en\/what-is-working-capital-turnover-how-to-calculate-working-capital-turnover\/#3_Ky_luan_chuyen_von_luu_dong_la_gi_va_co_y_nghia_gi\" >3. What is the working capital turnover period and what does it mean?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/bizzi.vn\/en\/what-is-working-capital-turnover-how-to-calculate-working-capital-turnover\/#31_Cong_Thuc_Tinh_Ky_Luan_Chuyen_Von_Luu_Dong\" >3.1 Formula for Calculating Working Capital Turnover Period<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/bizzi.vn\/en\/what-is-working-capital-turnover-how-to-calculate-working-capital-turnover\/#32_Moi_Lien_He_va_Y_Nghia\" >3.2 Relationship and Meaning<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/bizzi.vn\/en\/what-is-working-capital-turnover-how-to-calculate-working-capital-turnover\/#33_Vi_Du_Minh_Hoa\" >3.3 Illustrative Examples<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/bizzi.vn\/en\/what-is-working-capital-turnover-how-to-calculate-working-capital-turnover\/#34_Ung_Dung_Trong_Quan_Ly_Tai_Chinh\" >3.4 Applications in Financial Management<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/bizzi.vn\/en\/what-is-working-capital-turnover-how-to-calculate-working-capital-turnover\/#4_Lam_the_nao_de_quan_tri_va_toi_uu_hoa_vong_quay_von_luu_dong\" >4. How to manage and optimize working capital turnover?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/bizzi.vn\/en\/what-is-working-capital-turnover-how-to-calculate-working-capital-turnover\/#Tai_Sao_Quan_Tri_Von_Luu_Dong_Quan_Trong\" >Why Is Working Capital Management Important?&#039;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/bizzi.vn\/en\/what-is-working-capital-turnover-how-to-calculate-working-capital-turnover\/#Cac_Giai_Phap_Toi_Uu_Hoa_Vong_Quay_Von_Luu_Dong\" >Solutions to Optimize Working Capital Turnover<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/bizzi.vn\/en\/what-is-working-capital-turnover-how-to-calculate-working-capital-turnover\/#Giai_Phap_Cong_Nghe_Ho_Tro_Toi_Uu_Hoa_Von_Luu_Dong\" >Technology Solutions to Support Working Capital Optimization<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/bizzi.vn\/en\/what-is-working-capital-turnover-how-to-calculate-working-capital-turnover\/#Bizzi_Financing_%E2%80%93_Giai_phap_toi_uu_von_luu_dong_toan_dien\" >Bizzi Financing \u2013 Comprehensive working capital optimization solution<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/bizzi.vn\/en\/what-is-working-capital-turnover-how-to-calculate-working-capital-turnover\/#Bizzi_Financing_ho_tro_toi_uu_vong_quay_von_luu_dong_nhu_the_nao\" >How does Bizzi Financing help optimize working capital turnover?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/bizzi.vn\/en\/what-is-working-capital-turnover-how-to-calculate-working-capital-turnover\/#Ung_dung_thuc_te_cho_doanh_nghiep_SMEs\" >Practical applications for SMEs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/bizzi.vn\/en\/what-is-working-capital-turnover-how-to-calculate-working-capital-turnover\/#Ket_noi_de_dang_trien_khai_nhanh_chong\" >Easy connection, quick deployment<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/bizzi.vn\/en\/what-is-working-capital-turnover-how-to-calculate-working-capital-turnover\/#Ket_luan\" >Conclude<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"1_Vong_quay_von_luu_dong_la_gi\"><\/span><span style=\"font-weight: 400;\">1. What is working capital turnover?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><b>Concept:<\/b><span style=\"font-weight: 400;\"> Working Capital Turnover is a financial ratio that measures how efficiently a business uses its working capital. <\/span><a href=\"https:\/\/bizzi.vn\/von-luu-dong-la-gi\/\"><span style=\"font-weight: 400;\">working capital<\/span><\/a><span style=\"font-weight: 400;\"> to generate sales. This ratio shows how much sales each dollar of working capital used generates.<\/span><\/p>\n<p><b>Meaning of the index:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>High index:<\/b><span style=\"font-weight: 400;\"> Shows that the business is using working capital effectively to generate revenue, each dollar of capital used generates high sales.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Index too high:<\/b><span style=\"font-weight: 400;\"> It could be a warning sign that the business is lacking working capital to support operations, or is trying to generate revenue with too little capital.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Low index:<\/b><span style=\"font-weight: 400;\"> Conversely, it suggests that the business may be overinvesting in receivables and inventories, leading to the risk of bad debt or overstocking.<\/span><\/li>\n<\/ul>\n<p><b>What is the reasonable working capital turnover?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Under 1:<\/b><span style=\"font-weight: 400;\"> Potential risks of liquidity and short-term debt payment ability.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>1.5 \u2013 2:<\/b><span style=\"font-weight: 400;\"> Considered a stable level, showing that the business has the ability to use capital effectively and maintain continuous business operations.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Over 2:<\/b><span style=\"font-weight: 400;\"> It is important to consider carefully, as the business may be lacking working capital to support operations, or is trying to generate revenue with too little capital.<\/span><\/li>\n<\/ul>\n<p><b>Illustration:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Suppose, in the last fiscal year, ABC company&#039;s net revenue was VND 800 billion. The working capital at the beginning of the period was VND 100 billion and the working capital at the end of the period was VND 120 billion. To calculate the working capital turnover, we will perform the following steps:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Determine net revenue:<\/b><span style=\"font-weight: 400;\"> ABC company&#039;s net revenue for the year was 800 billion VND.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Calculate average working capital:<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\"> Average working capital = (100 + 120) \/ 2 = 110 billion VND<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Calculate working capital turnover:<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\"> Working capital turnover = 800 \/ 110 \u2248 7.27<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Thus, the working capital turnover ratio of ABC company is approximately 7.27. This means that each dollar of the company&#039;s working capital was turned over 7.27 times during the year to generate revenue.<\/span><\/p>\n<p><b>Note:<\/b><span style=\"font-weight: 400;\"> Working capital turnover is an important indicator that helps businesses evaluate the efficiency of working capital use. However, to have a comprehensive view of the financial situation, businesses need to combine working capital turnover analysis with other financial indicators such as current ratio, debt to equity ratio, and profitability indicators.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"2_Cach_tinh_vong_quay_von_luu_dong_nhu_the_nao\"><\/span><span style=\"font-weight: 400;\">2. How to calculate working capital turnover?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><b>Working capital turnover<\/b><span style=\"font-weight: 400;\"> is calculated by the formula:<\/span><\/p>\n<p><b>Working capital turnover = Net sales \/ Average working capital<\/b><\/p>\n<p><b>In there:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Net revenue<\/b><span style=\"font-weight: 400;\">: Is the total revenue of the business after deducting revenue deductions such as sales discounts, returned goods, and related taxes.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Average working capital<\/b><span style=\"font-weight: 400;\">: Calculated by taking the average of the working capital at the beginning and end of the period. Working capital is determined by the formula:<\/span><\/li>\n<\/ul>\n<p><b>Working capital = Current assets \u2013 Current liabilities<\/b><\/p>\n<h2><span class=\"ez-toc-section\" id=\"3_Ky_luan_chuyen_von_luu_dong_la_gi_va_co_y_nghia_gi\"><\/span><span style=\"font-weight: 400;\">3. What is the working capital turnover period and what does it mean?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><b>Working capital turnover period<\/b><span style=\"font-weight: 400;\"> (also known as Days Working Capital \u2013 DWC) is an important financial indicator, reflecting the number of days it takes a business to convert working capital into revenue. This indicator helps evaluate the efficiency of short-term capital use in the production and business process.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"31_Cong_Thuc_Tinh_Ky_Luan_Chuyen_Von_Luu_Dong\"><\/span><b>3.1 Formula for Calculating Working Capital Turnover Period<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>Days Working Capital = Average Working Capital \u00f7 Net Sales \u00d7 365<\/b><\/p>\n<p><span style=\"font-weight: 400;\">In there:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Average working capital<\/b><span style=\"font-weight: 400;\"> = (Beginning working capital + Ending working capital) \/ 2<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Net revenue<\/b><span style=\"font-weight: 400;\"> = Revenue after deducting revenue deductions<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"32_Moi_Lien_He_va_Y_Nghia\"><\/span><b>3.2 Relationship and Meaning<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Inversely proportional to working capital turnover<\/b><span style=\"font-weight: 400;\">: The shorter the working capital turnover period, the higher the working capital turnover, showing that the business is using capital more effectively.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Short turnover period<\/b><span style=\"font-weight: 400;\">: Shows how quickly a business converts working capital into revenue, improving liquidity and reinvestment capabilities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Long rotation period<\/b><span style=\"font-weight: 400;\">: May indicate poor operating performance, such as falling revenue or long collection periods, affecting cash flow and solvency.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"33_Vi_Du_Minh_Hoa\"><\/span><b>3.3 Illustrative Examples<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Suppose:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Beginning working capital<\/b><span style=\"font-weight: 400;\">: 1,000 million VND<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>End of period working capital<\/b><span style=\"font-weight: 400;\">: 1,200 million VND<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Net revenue<\/b><span style=\"font-weight: 400;\">: 5,000 million VND<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Average working capital = (1,000 + 1,200) \/ 2 = 1,100 million VND<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Working capital turnover period = (1,100 \/ 5,000) \u00d7 365 \u2248 80.6 days<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This means that it takes a business approximately 81 days to convert working capital into sales.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"34_Ung_Dung_Trong_Quan_Ly_Tai_Chinh\"><\/span><b>3.4 Applications in Financial Management<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Performance Evaluation<\/b><span style=\"font-weight: 400;\">: Compare rolling periods over periods to identify trends and adjust business strategies.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Compare with competitors<\/b><span style=\"font-weight: 400;\">: Compare with businesses in the same industry to determine competitive position.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cash flow management<\/b><span style=\"font-weight: 400;\">: Reducing the conversion period improves liquidity and reduces financial risk.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"4_Lam_the_nao_de_quan_tri_va_toi_uu_hoa_vong_quay_von_luu_dong\"><\/span><span style=\"font-weight: 400;\">4. How to manage and optimize working capital turnover?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Working Capital Turnover is an important financial indicator that reflects the efficiency of using working capital to generate revenue. This indicator is calculated by the formula:<\/span><\/p>\n<p><b>Working capital turnover = Net sales \/ Average working capital<\/b><\/p>\n<p><span style=\"font-weight: 400;\">A high turnover shows that the business is using capital efficiently, while a low turnover may indicate liquidity or financial management problems.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Tai_Sao_Quan_Tri_Von_Luu_Dong_Quan_Trong\"><\/span><b>Why Is Working Capital Management Important?&#039;<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Working capital is the financial \u201cblood vessel\u201d of a business, directly determining the ability to pay, operate and develop in the long term. Effective working capital management helps businesses ensure short-term cash flow while creating a foundation for sustainable growth.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Liquidity assurance:<\/b><span style=\"font-weight: 400;\"> Helps businesses have enough cash to pay short-term debts and maintain continuous business operations.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Business expansion support:<\/b><span style=\"font-weight: 400;\"> Abundant working capital allows businesses to invest in growth opportunities, such as expanding production or expanding markets.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Maintain stable operation:<\/b><span style=\"font-weight: 400;\"> Effective working capital management helps businesses avoid cash shortages, reduce financial risks and maintain stable business operations.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Cac_Giai_Phap_Toi_Uu_Hoa_Vong_Quay_Von_Luu_Dong\"><\/span><b>Solutions to Optimize Working Capital Turnover<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">To improve financial efficiency and ensure liquidity, businesses need to apply many synchronous solutions to optimize working capital turnover. These measures not only help to use capital resources reasonably but also contribute to improving competitiveness and long-term growth potential.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Reduce inventory<\/b><span style=\"font-weight: 400;\">: Maintaining reasonable inventory levels helps avoid capital congestion and storage costs. Businesses can apply the Just-in-Time (JIT) method or an automated inventory management system to accurately forecast demand, reduce excess inventory while still ensuring continuous production and supply activities.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Speed up<\/b><a href=\"https:\/\/bizzi.vn\/thu-hoi-cong-no-la-gi-quy-trinh-thu-hoi-cong-no-hieu-qua-cho-doanh-nghiep\/\"><b> debt collection<\/b><\/a><span style=\"font-weight: 400;\">: Long-standing receivables will reduce a business&#039;s cash flow. Establishing a clear credit policy, classifying customers according to their risk level, and using automatic debt reminders will help shorten the collection cycle, reduce bad debt, and improve liquidity.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Manage accounts payable<\/b><span style=\"font-weight: 400;\">: Businesses should make the most of the payment terms allowed by suppliers to maintain flexible cash flow. However, this needs to be carefully considered so as not to affect the reputation and long-term cooperative relationship with partners.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Control spending<\/b><span style=\"font-weight: 400;\">: Building a detailed budget and closely monitoring expenses in real time will help businesses promptly detect waste, thereby adjusting to optimize capital efficiency. Support from financial management software helps monitor cash flow more transparently and accurately.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Increase revenue<\/b><span style=\"font-weight: 400;\">: Working capital turnover can only be improved when revenue grows steadily. Businesses should promote marketing activities, expand sales channels, take care of customers and develop new products\/services to increase revenue, thereby improving cash flow and optimizing working capital.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Giai_Phap_Cong_Nghe_Ho_Tro_Toi_Uu_Hoa_Von_Luu_Dong\"><\/span><b>Technology Solutions to Support Working Capital Optimization<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In the context of economic fluctuations and cash flow is always a vital factor, businesses, especially <\/span><b>SMEs (small and medium enterprises)<\/b><span style=\"font-weight: 400;\">, often have difficulty maintaining <\/span><b>working capital<\/b><span style=\"font-weight: 400;\"> stable. status <\/span><b>late paying customer<\/b><span style=\"font-weight: 400;\">, <\/span><b>high inventory<\/b><span style=\"font-weight: 400;\">, or <\/span><b>difficult to access bank loans<\/b><span style=\"font-weight: 400;\"> causing the working capital cycle to be interrupted, directly affecting production and business activities.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To overcome these bottlenecks, <\/span><b>Financial Technology Solutions (Fintech)<\/b><span style=\"font-weight: 400;\"> was born as a powerful tool to support businesses. <\/span><b>Smart working capital management<\/b><span style=\"font-weight: 400;\">, optimize cash flow and reduce financial risks. Notable among them are <\/span><b>Bizzi Financing<\/b><span style=\"font-weight: 400;\"> \u2013 pioneering technology platform in the field <\/span><b>Supply Chain Financing (SCF)<\/b><span style=\"font-weight: 400;\"> in Vietnam.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Bizzi_Financing_%E2%80%93_Giai_phap_toi_uu_von_luu_dong_toan_dien\"><\/span><a href=\"https:\/\/finance.bizzi.vn\/\"><b>Bizzi Financing <\/b><\/a><b>\u2013 Comprehensive working capital optimization solution<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Bizzi Financing helps businesses <\/span><b>Quick financing from unpaid invoices<\/b><span style=\"font-weight: 400;\">, reduce short-term capital pressure and maintain continuous production and business operations. Unlike traditional loans that require collateral, Bizzi Financing operates based on <\/span><b>real transaction data<\/b><span style=\"font-weight: 400;\"> between business and customers\/suppliers, providing <\/span><b>Fast, transparent and secure approval process<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><b>Key benefits of Bizzi Financing:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Quick capital from unpaid invoices<\/b><span style=\"font-weight: 400;\">: Businesses can receive money immediately <\/span><b>24-48 hours<\/b><span style=\"font-weight: 400;\"> from the time of sending the sales invoice or purchase contract. This is especially useful when customers often have long payment terms of 30-90 days, helping businesses <\/span><b>shorten the cash conversion cycle<\/b><span style=\"font-weight: 400;\">.<\/span>&nbsp;<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>No collateral required: <\/b><span style=\"font-weight: 400;\">Unlike traditional bank loans, Bizzi Financing does not require businesses to mortgage fixed assets. Invoices and transaction history are the basis for evaluating and approving capital advances.<\/span>&nbsp;<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Increase liquidity and capital turnover:<\/b><span style=\"font-weight: 400;\"> When cash flow is replenished in a timely manner, businesses can <\/span><b>Pay suppliers on time<\/b><span style=\"font-weight: 400;\">, import raw materials on schedule, at the same time <\/span><b>take advantage of business opportunities<\/b><span style=\"font-weight: 400;\"> without delays due to lack of funds.<\/span>&nbsp;<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Transparent process, technology integration:<\/b><span style=\"font-weight: 400;\"> Bizzi uses a cloud computing platform and connects directly to the enterprise&#039;s ERP\/accounting system, helping to automate the entire process from invoice checking, data reconciliation, to disbursement. This minimizes manual errors and increases transparency.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Bizzi_Financing_ho_tro_toi_uu_vong_quay_von_luu_dong_nhu_the_nao\"><\/span><b>How does Bizzi Financing help optimize working capital turnover?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Low working capital turnover often results from <\/span><b>Long-Term Receivables<\/b><span style=\"font-weight: 400;\"> or <\/span><b>large inventory<\/b><span style=\"font-weight: 400;\">Bizzi Financing acts as a \u201cfinancial lever\u201d to help businesses solve two main problems:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Improve Receivables:<\/b><span style=\"font-weight: 400;\"> When customers are late in paying, Bizzi Financing allows businesses to <\/span><b>Convert bills to cash instantly<\/b><span style=\"font-weight: 400;\">This helps businesses avoid interruptions in cash flow and reduces pressure on bank loans.<\/span>&nbsp;<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Optimize Payables Management:<\/b><span style=\"font-weight: 400;\"> Thanks to the flexible capital flow from Bizzi, businesses can <\/span><b>Pay suppliers on time<\/b><span style=\"font-weight: 400;\">, from which to negotiate <\/span><b>price offers and purchase conditions<\/b><span style=\"font-weight: 400;\">, reduce input costs.<\/span>&nbsp;<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Shorten the cash conversion cycle (CCC):<\/b><span style=\"font-weight: 400;\"> When a business collects money quickly from customers and pays suppliers on time, the cash conversion cycle is significantly shortened. This is the foundation for <\/span><b>improve working capital turnover<\/b><span style=\"font-weight: 400;\"> and improve overall operating performance.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Ung_dung_thuc_te_cho_doanh_nghiep_SMEs\"><\/span><b>Practical applications for SMEs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">A small and medium-sized manufacturing enterprise often has to import raw materials in large quantities but customers pay on a 60-90 day term. This causes the enterprise to constantly be <\/span><b>short-term capital shortage<\/b><span style=\"font-weight: 400;\"> and depend on bank loans with high interest rates.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"> With Bizzi Financing, businesses can:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Advance capital from sales invoices<\/b><span style=\"font-weight: 400;\"> to import raw materials on schedule, without interruption of production.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Maintain good relationships with suppliers thanks to <\/span><b>Pay on time<\/b><span style=\"font-weight: 400;\">, even get discounts for early payment.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Take advantage of flexible capital to <\/span><b>expand business<\/b><span style=\"font-weight: 400;\">, invest in marketing or upgrade production lines.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Ket_noi_de_dang_trien_khai_nhanh_chong\"><\/span><b>Easy connection, quick deployment<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Bizzi Financing integrates directly with accounting systems and <a href=\"https:\/\/bizzi.vn\/erp-la-gi\/\">ERP<\/a> that the business is using. The registration and approval process is online, transparent, helping businesses save <\/span><b>time, operating costs<\/b><span style=\"font-weight: 400;\"> and quick access to capital.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bizzi Financing is not only a financial solution, but also a strategic tool to help businesses manage working capital intelligently, improve capital turnover, and maintain sustainable development in the long term.<\/span><\/p>\n<p><b>Explore now at:<\/b> <a href=\"https:\/\/finance.bizzi.vn\"><span style=\"font-weight: 400;\">finance.bizzi.vn<\/span><\/a><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Ket_luan\"><\/span><span style=\"font-weight: 400;\">Conclude<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Clearly understand <\/span><b>What is working capital turnover?<\/b><span style=\"font-weight: 400;\"> helps businesses and accountants accurately assess the efficiency of short-term capital use, thereby optimizing cash flow and improving liquidity. Correctly applying the formula for calculating working capital turnover helps make accurate financial decisions, improve business performance and ensure sustainable development. Therefore, monitoring and analyzing this index should be an indispensable part of corporate financial management.<\/span><\/p>","protected":false},"excerpt":{"rendered":"<p>What is working capital turnover? This is an important index that helps businesses evaluate the efficiency of short-term capital use,\u2026<\/p>","protected":false},"author":57,"featured_media":999978429,"comment_status":"open","ping_status":"open","sticky":false,"template":"elementor_theme","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[372],"tags":[],"class_list":["post-999978428","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-thanh-toan"],"acf":[],"_links":{"self":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999978428","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/users\/57"}],"replies":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/comments?post=999978428"}],"version-history":[{"count":4,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999978428\/revisions"}],"predecessor-version":[{"id":999978751,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999978428\/revisions\/999978751"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/media\/999978429"}],"wp:attachment":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/media?parent=999978428"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/categories?post=999978428"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/tags?post=999978428"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}