18 WORKING CAPITAL MANAGEMENT AT NIER FINE WINES VIETNAM COMPANY LIMITED

MINISTRY OF FINANCE ACADEMY OF FINANCE - - GRADUATION THESIS TOPIC: WORKING CAPITAL MANAGEMENT AT NIER FINE WINES VIETNAM COMPANY LIMITED Major : Corporate Finance Student: Phạm Thị Thu Thảo Code : 11 Student ID: 17523402010778 Lecturer: MA Nguyen Thu Thuong HA NOI – 2021 Graduation Thesis Academy of Finance DECLARATION I hereby undertake that this is my own research project, with the enthusiastic help of Master Nguyen Thu Thuong The figures and results in the thesis are honesty deriving from the actual situation of the internship unit Signature of author Pham Thi Thu Thao Pham Thi Thu Thao Class: CQ55/11.01 Graduation Thesis Academy of Finance TABLE OF CONTENTS LIST OF ABBREVIATIONS COGS Cost of goods sold BEP Basic earnings power EBIT Earnings Before Interest and Tax Pham Thi Thu Thao Class: CQ55/11.01 Graduation Thesis Academy of Finance ROA Return on assets ROE Return on equity ROS Return On Sales WC Working Capital LIST OF TABLES Table Name Page ORGANIZATION OF THE ACCOUNTING APPARATUS 52 THE FLUCTUATION OF ASSET, CAPITAL 2019-2020 60 THE FLUCTUATION OF REVENUE, COST AND PROFIT 62 Pham Thi Thu Thao Class: CQ55/11.01 Graduation Thesis Academy of Finance 2019-2020 FINANCIAL INDICATORS 65-66 WORKING CAPITAL AND DISTRIBUTION OF 70 WORKING CAPITAL 2019-2020 WORKING CAPPITAL FINANCING 2019-2020 75 WORKING CAPITAL STRUCTURE 2019-2020 78-79 CAPITAL STRUCTURE IN MONEY 2019-2020 82 CAPITAL STOCK MANAGEMENT SITUATION 84 10 11 STRUCTURE AND FLUCTUATION OF ACCOUNTS 87 RECEIVABLE THE SITUATION OF RECEIVABLE DEBT 90 MANAGEMENT 12 THE SITUATION OF DEBT 2019- 2020 13 PERFORMANCE WORKING CAPITAL2019- 2020 Pham Thi Thu Thao 92 94 Class: CQ55/11.01 Graduation Thesis Academy of Finance LIST OF DIAGRAM Diagram Name Page Diagram Characteristics of working capital Diagram The classification of capital Diagram First funding model 17 Diagram Second funding model 18 Diagram Third funding model 18 Diagram Diagram of the company's management apparatus 49 Diagram The company’s sales process 56 Pham Thi Thu Thao Class: CQ55/11.01 Graduation Thesis Academy of Finance ACKNOWLEDGEMENT I would like to express my utmost gratitude towards all the people who have supported me to complete this graduation thesis Sincerely thanks to my teachers, my supervisors at work and all other colleagues First of all, I want to send my special thanks to my instructors also being my class’s academic advisor, Master Nguyen Thu Thuong – lecturer of Academy of Finance, who put all her effort in supporting and guiding me Thanks for all her comments, guidance, and advices that contribute significantly in the completion of my graduation thesis Secondly, I want to send my gratitude to all staff in Nier Fine Wines Vietnam Company Limited, who have supported me during the internship report Thanks for their helps, I have obtained a lot of experiences, knowledge in finance and also been able to access to all the materials of the company Last but not least, I want to say thank you to all the lectures of Academy of Finance, who have been working hard to enrich our knowledge, giving us lessons to function well in the future Gratefully thanks to all their support helping and teaching during four years Pham Thi Thu Thao Class: CQ55/11.01 Graduation Thesis Academy of Finance ABSTRACT This graduation thesis is about the use and management of working capital of Nier Fine Wines Vietnam Company Limited in 2019-2020 After analyzing and assessing the working capital needs of the company over the aforementioned years, I will give some assessments of the strengths and weaknesses of the business In addition, in the conclusion, I will try to give some solutions for businesses to apply in the future Pham Thi Thu Thao Class: CQ55/11.01 Graduation Thesis Academy of Finance INTRODUCTION Rationale of the study Each enterprise is a cell of society, an economic organization that carries out production and business activities, and supplies goods to consumers through the market for profit purposes In today's market economy, any business activity requires capital Depending on specific business characteristics, the capital structure has some differences to some degree In order to survive and develop, businesses need to pay attention to creating, using and managing capital in the most effective way as well as the lowest cost of capital but without affecting business results Vietnam's economy is in the process of transition and operating under the market mechanism, opening up, and integrating with the global economy For Vietnamese businesses, this has a positive impact on their ability to expand their market, encroach on other markets in the region as well as the world But besides that, integration also poses challenges for import-export enterprises of Vietnam And especially at this time, the economy is still in a difficult period, businesses are still struggling to find output for their manufactured products, the organization and management of capital is always an issue that poses many challenges for business leaders Working capital is part of general capital In the capital structure, if fixed capital is compared to the backbone of a living organism, working capital is considered as the lifeblood of that living organism, and here, the living organism is the business Because of the cyclical, continuous movement associated with the business production cycle of the business, working capital Pham Thi Thu Thao Class: CQ55/11.01 Graduation Thesis Academy of Finance becomes especially important, and is a decisive factor to the scale of business production Therefore, working capital management for an enterprise is a prerequisite factor determining whether that enterprise effectively does business or not There has been much research on working capital, but for each type of business, with different environmental conditions and business fields, the requirements for working capital management are different With the continuous development of the market economy, the problems that rotate effective working capital management are different from day to day With the knowledge I gained at the academy together with the practical internship at Nier Fine Wines Vietnam Company Limited , I have chosen my graduation thesis topic as: “Working capital management at Nier Fine Wines Vietnam Company Limited” Purposes and Research questions Researching the current situation of working capital management at Nier Fine Wines Vietnam Company Limited from then proposing a number of financial solutions to enhance the management of working capital in this company Scope of the study The research focuses on the working capital management of Nier Fine Wines Vietnam Company Limited in 2019 and 2020 Data and Research methodology Pham Thi Thu Thao 10 Class: CQ55/11.01 Graduation Thesis Pham Thi Thu Thao Academy of Finance 121 Class: CQ55/11.01 NHẬN XÉT CỦA NGƯỜI HƯỚNG DẪN KHOA HỌC Họ tên người hướng dẫn khoa học: Nhận xét trình thực tập tốt nghiệp Sinh viên Phạm Thị Thu Thảo Khóa: CQ55 Lớp: 11.01 Đề tài: Quản trị vốn lưu động Công ty TNHH Nier Rượu Vang Hảo Hạng Việt Nam Nội dung nhận xét: 1.Về tinh thần thái độ thực tập sinh viên ………………………………………………………………………………… ………………………………………………………………………………… ……………………………………………………………………………… 2.Về chất lượng nội dung luận văn/đồ án Điểm: - Bằng số: - Bằng chữ: Hà Nội, ngày tháng năm 2021 Người nhận xét NHẬN XÉT CỦA NGƯỜI PHẢN BIỆN Họ tên người phản biện: Nhận xét trình thực tập tốt nghiệp Sinh viên: Khóa: ; Lớp: Đề tài: Nội dung nhận xét : -Sự phù hợp tên nội dung đề tài với chuyên ngành -Đối tượng mục đích nghiên cứu -Độ tin cậy tính đại phương pháp nghiên cứu -Nội dung khoa học Điểm: -Bằng số -Bằng chữ Hà Nội, ngày….tháng….năm 2021 Người nhận xét (Ký, ghi rõ họ tên) ... 2: Situation of working capital management at Nier Fine Wines Vietnam Company Limited Chapter 3: Solution to improving the working capital management at Nier Fine Wines Vietnam Company Limited. .. gained at the academy together with the practical internship at Nier Fine Wines Vietnam Company Limited , I have chosen my graduation thesis topic as: ? ?Working capital management at Nier Fine Wines. .. enhance the management of working capital in this company Scope of the study The research focuses on the working capital management of Nier Fine Wines Vietnam Company Limited in 2019 and 2020 Data and