THE IMPACT OF CASH FLOW, COMPANY SIZE, AND FINANCIAL LEVERAGE ON THE PROFITABILITY OF SEAFOOD COMPANIES IN VIETNAM

Abstract

This study aims to investigate the influence of operational cash flow (OCF), company size (SIZE), and financial leverage (FLV) on gross profit (GP), operating profit (EBIT), and net profit (NP) within the seafood sector in Vietnam. This study uses secondary data obtained from the financial statements of 24 seafood companies published over a five-year period from 2019 to 2024. The analysis employs descriptive statistics and incorporates three linear regression models to assess the relationships among the variables. The results show that both OCF and SIZE have a positive impact on GP and EBIT, while FLV does not exhibit any significant effect on these profit measures. Additionally, the analysis reveals that OCF and SIZE positively influence GP, EBIT, and NP, whereas FLV exerts a negative effect on these outcomes of financial indicators. Based on the findings, seafood companies are advised to implement robust cash flow management strategies, determine an appropriate company size, establish an optimal capital structure, and exercise prudent debt management to mitigate potential financial risks. However, given the presence of large companies operating across multiple sectors, the findings may not fully capture the intricacies of the entire seafood industry. Therefore, further research is warranted to explore these factors in greater depth and strengthen empirical evidence on these dynamics.