246. Topic “Financial performance – a case study of Hanoi telecoms electricity joint stock company”

501 ACADEMY OF FINANCE Major Corporate Finance Full name: Nguyễn Quỳnh Anh Class: CQ54/11CL.01 GRADUATION THESIS Topic: “Financial performance – a case study of Hanoi telecoms electricity joint stock company” Specialized: Business finance Student code: 16CL3402010005 Instructor: Associate Professor.Dr Vũ Văn Ninh Hanoi - 2020 502 PLEDGE I assure you that this is my own research project, the data and results stated in the graduation thesis are honest and come from the practical situation of the intern The author Nguyễn Quỳnh Anh APPENDIX 503 COVER 1 PLEDGE 2 APPENDIX 3 LIST OF ABBREVIATIONS 7 LIST OF TABLES 8 LIST OF CHARTS 9 PREFACE 10 Chapter 1: Overview of financial situation of a company 14 1.1.Corporate finance and corporate finance decisions 14 1.1.1 Business finance concept and business finance relationships 14 1.1.1.1 Business finance concept 14 1.1.1.2 Business finance relationships 16 1.1.2 The financial decisions of the business 17 1.2.Enterprise financial management 19 1.2.1.Business financial management concept 19 1.2.2.The role of the corporate finance management 20 1.2.3.Content corporate finance managemet 21 1.2.4.Corporate value and goals of corporate financial governance 22 1.2.4.1.Corporate value 22 504 1.2.4.2.Goals of corporate financial governance 1.3.Financial situation of the business 24 25 1.3.1.Concept of corporate financial situation 25 1.3.2.Content and criteria reflect the situation of the business 25 1.3.2.1.Capital situation of the business 26 1.3.2.2.The situation of capital allocation of enterprises 27 1.3.2.3.Business performance of the enterprise 29 1.3.2.4.Cash flow situation of the business 30 1.3.2.5.The situation of debt and solvency of the business 35 a.Assess the debt situation of the business 35 b.Asses the solvency of the business 37 1.3.2.6.Situation of performance and efficiency of business 39 operations of the enter prise a.Operational ratio group 39 b.Profitability ratio group 43 1.4.Factors affecting the financial analysis of the business 44 1.4.1.Objective factor 44 1.4.2.Subjective factor 46 Chapter 2: Curent financial situation of Hanoi telecoms electricity joint stock company 47 505 2.1.The process of formation and development of Hanoi telecoms 47 electricity joint stock company 2.1.1.Establishment and development process 47 2.1.1.1.Basic information about the company 47 2.1.1.2 History of formation and development 48 2.1.2.Operating characteristics 49 2.1.2.1.Business lines and areas 49 2.1.2.2.Business characteristics of the company 49 2.1.2.3.Overview of financial performance of Hanoi telecoms 54 electricity joint stock company 2.2 Curent financial situation of Hanoi telecoms electricity joint 55 stock company 2.2.1.Assets and Asset structure 55 2.2.2.Sources of Capital and Capital Structure 56 2.2.3.Business results 59 2.2.4.Cash flows 63 2.2.5.Liquidity 65 2.2.6.Asset utilization efficiency and Profitability 68 2.3.Assessment of the financial situation of Hanoi telecoms electricity joint stock company 75 506 2.3.1.Achievements 75 2.3.2.Shortcomings and reasons 76 Chapter 3: Solutions to improve the financial situation of Hanoi 78 telecoms electricity joint stock company 3.1.Objectives and targeted performance of Hanoi telecoms electricity 78 joint stock company in the future 3.1.1.Socio-economic situation 78 3.1.2.The targeted performance of Hanoi telecoms electricity 80 joint stock company 3.2.Solutions ti improve the financial situation of Hanoi telecoms 82 electricity joint stock company 3.3.Conditions needed for implementing the solutions 85 CONCLUSION 88 LIST OF ABBREVIATIONS 507 ADI: Average days in inventory ADP: Average days in payables ADR: Average days in receivables BEP: Basic earning power COGS: Cost of good sold DSI: Days sales in inventory DSO: Days sales outstanding HATEC: Hanoi telecoms electricity joint stock company ROA: Return on assets ROE: Return on equity ROS: Return on sales LIST OF TABLES 508 Table 2.2.2 Capital fluctuation situation 57 Table 2.2.3 Business results of the company 60 Table 2.2.5 The liquidity ratios 65 Table 2.2.6.1 DSI 68 Table 2.2.6.2 Working capital 70 LIST OF CHARTS 509 Chart 2.2.1 The asset structure ratios 56 Chart 2.2.4 The criteria in business cash flow management 63 Chart 2.2.6.1 Inventory turnover 68 Chart 2.2.6.2 Receivable turnover 69 Chart 2.2.6.3 Fixed assets turnover 71 Chart 2.2.6.4 Total asset turnover 72 Chart 2.2.6.5 Profitability ratios 73 PREFACE 5010 1 Introduction With the development of the country in the last decade, along with the growing trend of globalization and business both at home and abroad, it has had a great and profound impact on Vietnam's market economy Nam, especially in management, capital mobilization and capital utilization Most effective on respect of financial, credit and law enforcement principles So businesses compete with each other extremely fierce and must constantly change to survive and develop sustainably and have a foothold in the market Along with the plans and intentions set for the development of the business will also face the risks and limitations in it Financial situation analysis is also an information tool for administrators, investors, etc Each object is interested in the financial situation of businesses through many different angles to management and investment Therefore, in order for businesses to achieve the desired effect, analyzing the financial situation will help businesses to clearly see the current financial situation, find out the cause and the degree of influence of the factors affecting the situation financial picture From there, there is an effective solution to stabilize and develop the financial situation Hanoi telecoms electricity joint stock company (HATEC) was established in 2004, the company has been operating for more than 15 years and created a great reputation in the domestic telecommunications industry The regular analysis of the financial situation will help business managers see the status of financial activities, which can identify the strengths and weaknesses of the business as a basis for proper operation with the economy in the future and propose optimal solutions to improve 5079 must have certain competence, ability to work well, acumen, grasp the strengths and weaknesses of the company in order to have can take advantage of persuasion Moreover, to convince investors, the company must have a firm foothold with sufficient weight and clearly show the - potential for the future development of the company Regarding cost management, financial forecasting must be completed in detail and before the company's next operating period Forecasters - must have unique expertise in the field of cost management In order to manage cash flow, it is necessary to strictly control expenses and income in business activities, while the expansion of business activities that need to be done before must have sufficient capital and must also be approved determining the need for capital to capture where business activities require more capital and where can be - reduced to save capital In terms of effective asset management, it is possible to apply the above solution which requires a large amount of money, together with a high level of science and technology, to be able to ensure effective - research in the best way and the fastest Regarding the profitability, it is necessary to make a large capital distribution to business activities, in addition to improving product quality, it is imperative to apply modern technology Such a relatively high aesthetic level can create a unique element of the product Moreover, in order to realize their marketing ability, it is imperative for employees to be creative and highly competent to meet the ability to - implement this solution Regarding the above ideas, it greatly affects the personnel of the company Employees in the company must also have improvements 5080 and changes in the way of working and thinking to apply changes in - the way of working and working environment Deploying the application of construction solutions with modern technology in urban areas to ensure beauty and protect the - environment Collaborate with universities and research institutions in foreign countries to carry out scientific and technological research projects that - serve the standards of enterprise products Build a team of construction workers, managers, operating professional - product systems Develop capacity-building training programs for officials and employees - 5081 - CONCLUSION - - Finance is one of the very important fields in the production and business activities of every business Financial activities are associated with all stages of the business process from raising funds until distributing profits - In the context of fierce competition of market mechanisms, in order to survive and develop, raising the financial capacity of enterprises is at the forefront As one of the leading enterprises in electricity telecommunication, the company plays a key role in creating the technical and physical foundation for the national economy This is one of the important fields in the country's development, the success of the industry in recent years is a condition to promote the process of industrialization and modernization of the country - Originating from the importance of financial and financial analysis in the business and financial situation of Hanoi telecoms electricity joint stock company and the knowledge that has been equipped during the 4 years of university, I chose the thesis with the topic "Financial performance – a case study of Hanoi telecoms electricity joint stock company" to see the problems and find solutions to improve the financial capacity of the company With such goals, the thesis has analyzed in a dire way to learn the financial situation of the company, showing that the results achieved are similar to the shortcomings On that basis, the thesis boldly proposed a number of solutions to improve the financial capacity of the company - With the enthusiastic help of the teacher - Associate Professor Dr Vu Van Ninh and the enthusiastic guidance of the brothers and sisters in the 5082 company, I completed my graduation thesis However, due to the limited time of studying, researching at the company, and limited knowledge, my essay's essay is hard to avoid mistakes I look forward to receiving contributions from teachers to improve the thesis and to supplement practical knowledge - 5083 - REFERENCES 1 Associate Professor.Dr Bùi Văn Vần (editor), Associate Professor.Dr Vu Văn Ninh (editor) (2015), “Corporate finance curriculum”, Pubisher Academy Of Finance 2 Balance sheet of HATEC in 2017 3 Balance sheet of HATEC in 2018 4 Balance sheet of HATEC in 2019 5 Income statement of HATEC in 2017 6 Income statement of HATEC in 2018 7 Income statement of HATEC in 2019 8 Cash flow statement of HATEC in 2017 9 Cash flow statement of HATEC in 2018 10 Cash flow statement of HATEC IN 2019 11 Chandra, Prasanna (2008), Financial Management – Theory and Practice (7thed): TMH 12 James Sagner, Essential of working capital management, Wiley, 2010 13 Khan, M.Y.,& Jain, P.K (2011) Financial Management – Text, Problem and Cases (6thed): TML 14 Preve L., Sarria – Allende V., Working Capital Management, Oxford University Press, 2010 15 Professor.Dr Ngô Thế Chi, Associate Professor.Dr Trương Thị Thủy, “Financial accountant” 16 S.R., R.W., B.J (2012), “Fundamentals of Coporate Finance”, McGrawHill.Brealey, Richard a., & Stewart C.Myers, Coporate Finance, Capital Investment and Valuation, McGraw Hill 17 Srivastara, Rajiv, and Anil Mirshra, Finncial Management, Oxford Universty Press, UK 5084 18 "Business Forum Magazine" (enternew.vn), the article "Full text of Socioeconomic situation report in 2019 and the plan of socio-economic development in 2020" 19 LuatVietnam.vn article "Resolution 01 / NQ-CP 2020 tasks, solutions to implement the Socio-Economic Development Plan 2020" 20 Website: Wikipedia.org, Ketoan7e.com, Cafef.vn, LuatVietnam.vn Entermew.vn, ... of financial situation of a company 5013 Chapter 2: Curent financial situation of Hanoi telecoms electricity joint stock company Chapter 3: Solutions to improve the financial situation of Hanoi. .. 2.1.1.1 Basic information about the company - Legal Name : Hanoi Telecoms Electricity Joint Stock Company - Trading Name : Hanoi telecoms electricity joint stock company - Abbreviated Name : Hatec... company 49 2.1.2.3.Overview of financial performance of Hanoi telecoms 54 electricity joint stock company 2.2 Curent financial situation of Hanoi telecoms electricity joint 55 stock company 2.2.1.Assets