Cash Conversion Cycle in Multi-Specialty Hospitals for Active Treatment from Varna Region

Abstract

Cash conversion cycle is an essential aspect of holistic financial management and metric for its efficiency. However, there is a limit of empirical evidence for its implementation in Bulgaria. The main purpose of this article is to study the cash conversion cycle in multi-specialty hospitals for active treatment (MBAL) from Varna region in the period 2018-2022. Cash conversion cycle assessment includes inventory turnover, receivables collection period and obligations payment period. Only 4 MBALs fall in the scope of the analysis. The small number of hospitals and results volatility limit the opportunity to formulate essential conclusions and generalizations. During the period one of the hospitals, stand out with negative values of cash conversion cycle. The remaining MBALs demonstrate a slowdown in the inventory turnover. One of them has stable indicators for receivable collection period, obligations payment period and cash conversion cycle. Others extend receivable collection period, shorter obligations payment period and as a result – extend cash conversion cycle.