Thien long group, formerly known as thien long ballpoint pen establishment, was established in 1981

3 May 2020 Financial Statement Analysis MEMBER’s LIST No Name ID Card Lương Thị Thảo K174050547 Nguyễn Dương Ái Phương K174050542 Nguyễn Thị Mỹ Linh K174050521 Đoàn Thị Thanh Thanh K174050545 Nguyễn Thị Cẩm Tú K174050556 Financial Statement Analysis Contents Chapter I GENERAL INTRODUCTION Chapter II BUSINESS STRATEGY ANALYSIS INDUSTRY ANALYSIS 10 1.1 Rivalry among existing firm 10 1.2 Threat of new entrants 11 1.3 Threat of substitute products 11 1.4 Buyer’s Power 11 1.5 Supplier’s Power 12 COMPETITIVE STRATEGY ANALYSIS 12 CORPORATE STRATEGY ANALYSIS 13 SWOT ANALYSIS 15 PEST ANALYSIS 17 Chapter III 19 ACCOUNTING ANALYSIS 19 IDENTIFY KEY ACCOUNTING POLICIES 20 ASSESS ACCOUNTING FLEXIBILITY 21 EVALUATE ACCOUNTING STRATEGY 22 EVALUATE THE QUALITY OF DISCLOSURE 22 IDENTIFY POTENTIAL RED FLAGS 23 UNDO ACCOUNTING DISTORTIONS 25 Chapter IV 26 FINANCIAL STATEMENT ANALYSIS 26 ANALYSIS OF FINANCIAL STRUCTUE 27 ANALYSIS OF INCOME STATEMENT 29 ANALYSIS OF CASH FLOW 30 Chapter V 31 FINANCIAL ANALYSIS 31 ANALYSIS OF PROFITABILITY 32 1.1 Net profit margin and gross profit margin 32 1.2 Total asset turnover; Return on asset and Dupont analysis 32 Financial Statement Analysis 1.3 Operating income margin, operating asset turnover, return on operating asset and Dupont analysis 33 1.4 Sale to fixed asset 34 1.5 Return on total equity, Return on investment 35 ANALYSIS OF LIQUIDITY OF SHORT-TERM ASSETS 36 2.1 Receivables Issues 36 2.2 Liquidity of inventory 37 2.3 Operating cycle 38 ANALYSIS OF DEBT-PAYING ABILITY 39 3.1 Current Debt ratio 39 3.2 Long-term debt ratio 41 3.3 Other long-term debt ratio 43 ANALYSIS OF STATEMENT OF CASH FLOW (RATIO ANALYSIS) 43 Chapter I GENERAL INTRODUCTION Financial Statement Analysis INTRODUCTION Thien Long Group, formerly known as Thien Long Ballpoint Pen Establishment, was established in 1981 In 2010 was officially listed on HSX with TLG code From 2013-2018, Thien Long has been named one of the 50 best listed companies in Vietnam, according to Fobers Vietnam Thien Long Group has a distribution network throughout 63 provinces, with more than 60,000 retail locations Beside that, Thien Long Group continues to invest and develop export markets, bringing the current branded products FlexOffice and Colokit to more than 60 countries on continents MISION-VISION-CORE VALUES - Mision: bring Thien Long’s products to all regions of Vietnam and the world - Vision: Thien Long commits to providing the best quality products, stationery products, and services serving the studing, working, and creative activities to conquer the peak of mankind knowledge - Core value: TLG’s key assets are its people and its culture Driven by these 05 core values: pioneer, dedication, fairness, integrity and humanism BUSINESS MODEL Available in ample designs, high quality, prestigious brands and reasonable prices, Thien Long’s products are ready to meet diverse needs of consumers, from kindergartens to elementary schools, high schools and colleges as well as employees and executives Thien Long’s writing instruments (TL brand name) includes product lines such as ballpoint pens, gel pens, rollerball pens, fineliners, etc This long-standing product category helped build up the Group’s reputation from early days of establishment and accounted for 41% of total revenue up to 2017; Premium Products category (Bizner brand name) includes typical products such as Premium ballpoint pen (BIZ-01, BIZ-rB01, TL-075, ), Premium pencil (BIZ-PC01, BIZ-PO1, BIZ -PO2, ), Premium notebook (BIZNer-MB-08, BIZNer-MB-09, ) Target customers of this premium product category are business people and high-income earners Official Supplies (FlexOffice brand name) contributed significantly to the Group’s business with 30% of total revenue In 2017, Thien Long repositioned Ten Marks brand and implemented the new logo design in accordance with modern trends, suitable for pupils With the slogan “ready to learn well”, Ten Marks plays the role of providing learning tools of high quality, diversification and usefulness to serve the learning Ten Marks category has many products such as chalk, ruler, compass, pencil, eraser, glue, scissors, notebook Colokit is the brand that represents Thien Long’s Art Supplies, including products serving the arts Colokit are unique and safe, non-toxic, and certified to meet US standards (ASTM D4236), European standards (eN71/3 and eN71/9) Financial Statement Analysis OWERSHIP STRUCTURE AND ORGANIZATION STRUCTURE Realizing that Mr Co Gia Tho is the largest shareholder He is founder of Thien Long in 1981 and has been staying with the company since then Mr Co Gia Tho also holding the posion of Chairman cum CEO of Thien Long An Thinh Investment JSC Domestics shareholder account for a high proportion( 72,7%) Sourse: Annual Reporting in 2018 of TLG Financial Statement Analysis Chapter II BUSINESS STRATEGY AN ANALYSIS ALYSIS Financial Statement Analysis INDUSTRY ANALYSIS 1.1 Rivalry among existing firm According to the assessment, the Vietnamese market is full of potential because 85% of people are between the ages of - 64, the age of going to school and working with high demand for stationery Stationery is a highly competitive market, especially in the writing pen segment The competitors of Thien Long are Hong Ha, Ben Nghe, and KOKUYO Vietnam For the Chinese market is Deli, M & G , because the market is quite similar to Vietnam Domestic competitors Hong Ha Stationery Joint Stock Company Formerly known as Hong Ha Stationery Factory, was established on October 1, 1959 Over 60 years of growth and development, HONG HA has been operating in the field of stationery and constantly expanding into the field of real estate investment Hong Ha JSC has built a deep and extensive product distribution network across the country with nearly 100 distributors and over 10,000 retail points, especially in the North Hong Ha Stationery Joint Stock Company is one of the typical businesses, outstandingly awarded the Vietnam Golden Star Award in 2018 Ben Nghe Production - Trading Co., Ltd Formerly known as Dong A ballpoint pen factory (with Dong A brand name) established and operated from 1984, developed in 1989 to Ben Nghe Private Enterprise The company's traditional products are all kinds of Ballpoint Pens, Stationery and School Supplies With over 20 years experience in stationery field Ben Nghe has expanded its business into other fields following the trend of multi-industry activities such as raising animals under the model of farms, processing food and producing helmets Ben Nghe was also voted as one of the top 100 brands organized by the Tiep Thi Sai Gon newspaper in 2006 At the end of 2018, Ben Nghe was acquired by TIE-tranding in electronics Competitor in China Shanghai M&G Stationery Inc Found in 1996, with total 300,000 m² M&G Industrial Park and over 10000 staff In 2014, M&G produced billion pcs writing instruments, including Gel Pen, Ball pen, Mechanical Pencil, Highlighter, Marker, Refills etc, taking over 40% market share in China M&G achieve 29% sales increase in 2014 to annual 795 million USD turnover Discovery Channel chose M&G as only one pen factory to make TV program 10 32 Financial Statement Analysis ANALYSIS OF PROFITABILITY 1.1 Net profit margin and gross profit margin 3,500,000,000,000 45.00% Net profit margin and gross profit margin 40.00% 3,000,000,000,000 35.00% 2,500,000,000,000 30.00% 2,000,000,000,000 25.00% 1,500,000,000,000 20.00% 15.00% 1,000,000,000,000 10.00% 500,000,000,000 Net sale (VND) 5.00% 2015 2016 2017 2018 2019 1,883,741,590,457 2,162,315,906,238 2,497,400,717,875 2,855,776,350,214 3,252,481,516,052 Gross profit (VND) 726,201,554,102 846,324,025,266 933,549,957,060 1,066,668,867,831 1,197,491,157,297 Net income (VND) 187,857,986,325 240,072,899,021 268,058,082,079 294,384,242,148 349,087,049,076 Net profit margin 10.00% 11.10% 10.70% 10.31% 10.73% Gross profit margin 38.55% 39.14% 37.38% 37.35% 36.81% 0.00% From 2015-2019, both TLG's revenue, gross profit and net profit increased Net profit margin fluctuated at a stable level (about 1%) However, gross profit margin tends to decrease, because the cost of goods sold ratio increases faster than revenue The reason for high cost of goods sold may come from TLG's inadequate control of costs, or possibly due to rising raw material prices The slow increase in revenue may be because TLG is under pressure from competitors, so they have to carry out many promotions and discounts to attract customers However, overall, this ratio is still higher than the industry average of 31% 1.2 Total asset turnover; Return on asset and Dupont anal analysis ysis 2015 2016 2017 Net sale 1,883,741,590,457 2,162,315,906,238 2,497,400,717,875 (VND) Net income 187,857,986,325 240,072,899,021 268,058,082,079 (VND) Average 1,200,600,406,769 1,338,655,370,623 1,476,414,591,581 total asset (VND) 2018 2019 2,855,776,350,214 3,252,481,516,052 294,384,242,148 349,087,049,076 1,681,588,180,402 2,105,781,786,133 Financial Statement Analysis 33 Dupont analysis 20.00% 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 1.75 1.7 1.65 1.6 1.55 1.5 Net profit margin 2015 10.00% 2016 11.10% 2017 10.70% 2018 10.31% 2019 10.73% Dupont Return on asset 15.65% 17.93% 18.16% 17.50% 16.60% Asset turnover (times) 1.57 1.615 1.692 1.7 1.55 1.45 Asset turnover tends to increase from 2015-2018, but by 2019, TLG has bought a large amount of short-term financial investments, leading to a sharp increase in total assets Therefore, the asset turnover ratio this year dropped dramatically, from 1.7 to only 1.55 ROA increased in the period of 2015-2017, due to both the increase of net profit margin and total assets turnover This is a positive trend However, from 2017 to 2019, this ratio continued to decrease In 2018, although the total assets turnover increased, the profit margin decreased and in 2019 is opposite, the net profit margin increased but the total assets turnover decreased Both are showing negative signals Therefore, TLG needs to review its operational strategies Even so, TLG's ROA is still higher than the industry average of 14.79% 1.3 Operating income margin, operating asset turnover, retur return n on operating asset and Dupont an analysis alysis 2015 2016 2017 2018 2019 Net sale 1,883,741,590,457 2,162,315,906,238 2,497,400,717,875 2,855,776,350,214 3,252,481,516,052 (VND) Operating 252,089,691,820 297,621,551,039 313,774,205,387 361,296,027,501 412,306,743,044 income (VND) Average 1,065,954,386,075 1,177,196,017,772 1,297,665,382,622 1,466,639,090,697 1,917,369,310,879 operating asset (VND) Financial Statement Analysis Dupont Operating Analysis 30.00% 1.95 25.00% 1.9 20.00% 1.85 1.8 15.00% 1.75 10.00% 1.7 1.65 5.00% 1.6 0.00% 1.55 2015 2016 2017 2018 2019 Operating income margin 13.38% 13.76% 12.56% 12.65% 12.68% Dupont Return on operating asset 23.65% 25.28% 24.18% 24.60% 21.50% 1.767 1.837 1.925 1.95 1.7 Asset turnover (times) The adjustment when calculating the operating ratios will create a more accurate view of business operations of the business After making the necessary adjustments, we see a significant increase in operating income, but the average operating assets are reduced As a result, operating income margin, total assets turnover and return on total operating assets increased compared to the time without adjustment The trend in the ratios is similar to the previous one, operating income margin fluctuated steadily at around 1%, the total asset turnover increased from 2015-2018 and dropped sharply in 2019 ROA operating increased in 2015, 2016 but tapering off in later years 1.4 Sale to fixed asset Sale to fixed asset 3,500,000,000,000 12 3,000,000,000,000 10 2,500,000,000,000 2,000,000,000,000 1,500,000,000,000 1,000,000,000,000 500,000,000,000 2015 2016 2017 2018 2019 Net sale (VND) 1,883,741,590,45 2,162,315,906,23 2,497,400,717,87 2,855,776,350,21 3,252,481,516,05 Net fixed asset (VND) 197,690,192,119 289,918,854,187 359,509,747,304 417,122,326,343 464,236,995,775 9.53 7.46 6.95 6.85 Sale to fixed asset Although both fixed assets and net revenue of TLG increased over the years, the ratio of sale to fixed assets decreased gradually The reason is because the increase in net revenue is smaller than the increase of fixed asset This is easy to understand because TLG is implementing strategies to expand 34 Financial Statement Analysis its scale, invest in procurement of machinery, equipment, factory construction, etc By 2019, the rate of investment in fixed assets decreased, so that the number of sale to fix assets increased 1.5 Return on total equity, Return on investment Return on Equity and Return on Investment 30.00% 1,800,000,000,000 1,600,000,000,000 25.00% 1,400,000,000,000 20.00% 1,200,000,000,000 1,000,000,000,000 15.00% 800,000,000,000 10.00% 600,000,000,000 400,000,000,000 5.00% 200,000,000,000 2015 2016 2017 2018 2019 Net income (ROE) 187,857,986,325 240,072,899,021 268,058,082,079 294,384,242,148 349,087,049,076 Net income (ROI) 196,763,272,783 248,630,828,629 275,658,314,085 303,238,756,115 358,234,692,134 Shareholder's equity 776,908,594,434.0 872,934,974,290.5 992,090,617,179.0 1,164,311,585,959 1,537,827,634,158 Investment 798,722,497,363.5 885,644,225,417.0 1,007,639,234,971 1,176,605,783,584 1,549,790,778,096 Return on Equity 24.18% 27.50% 27.02% 25.28% 22.70% Return on Investment 24.63% 28.07% 27.36% 25.77% 23.12% Net income (ROE) Net income (ROI) Shareholder's equity Investment Return on Equity Return on Investment 0.00% Both ROE and ROI ratio of TLG increased in years 2015-2016 but decreased gradually from 20162019 Because TLG's growth rate can be considered to be relatively good, that is the reason why many investors buy shares of the company, banks and creditors increase loans Although this ratio decreased but compared to the industry average of 21.96%, TLG is still higher, indicating that the company is still performing well and has more potential for further development in the future 35 Financial Statement Analysis 36 ANALYSIS OF LIQUIDITY OF SHORTSHORT-TERM TERM ASSETS 2.1 Receivables Issues 2015 2016 2017 2018 2019 104,040,921,196 125,458,895,045 207,705,244,272 341,435,875,694 585,476,000,681 95,205,155,501 114,749,908,121 166,582,069,659 274,570,559,983 463,455,938,188 1,883,741,590,457 2,162,315,906,238 2,497,400,717,875 2,855,776,350,214 3,252,481,516,052 Gross receivable Average receivable Net sales 2015 20.16 19.79 18.45 Day's sales in receivable Receivable turnover Receivable turnover in days 2016 21.18 18.84 19.37 2017 30.36 14.99 24.35 2018 43.64 10.40 35.09 2019 65.70 7.02 52.01 Receivable issues 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00 2015 2016 Day's sales in receivable 2017 2018 2019 Receivable turnover in days Receivable turnover Day's sales in receivable: Time to recover receivables increases from year to year In particular, DSR in 2018,2019 over 30 days, showing that a company is selling most of its products to customers and taking more time to collect money This can lead to cash flow problems since the time between sales and the company receives long payments Receivable turnover: Inventory turnover over the years Inventory turnover in 2019 decreased by 32.59% compared to 2018, indicating that the company has a poor recovery process, bad credit policies or their customers are unable to pay The company should revise its credit policy to ensure time for money recovery Inventory turnover decreased because receivables increased Because Thien Long Group mortgaged its receivables to secure a bank loan (in Note 21, December 31, 1919), it was because the company wanted to borrow more that the receivables increased Receivable turnover in days and day's sales in receivable are big difference It shows that Thien Long Group has seasonal fluctuations For example, in August, September is a school-like season, the 37 Financial Statement Analysis demand for stationery supplies is high, so, the ending number of recevable is higher than the average 2.2 Liquidity of inventory Days' Sales in inventory Inventory turnover in days 2015 2016 2017 2018 2019 132.53 127.78 120.7 139.64 103.44 133.23 112.17 114.12 122.57 112.5 2.74 2.99 3.2 2.97 3.24 Inventory turnover Days' Sales in inventory 160 140 120 100 80 60 40 20 2014 2015 2016 2017 2018 2019 2020 Days' Sales in inventory: increased unevenly with 2018 increased sharply, but this is not a bad signal because the company is promoting export of goods The availability of large inventories will create conditions to meet the rising demand of customers Inventory turnover in days 135 130 125 120 115 110 2014 2015 2016 2017 2018 2019 2020 2019 2020 Inventory turnover 3.3 3.2 3.1 2.9 2.8 2.7 2014 2015 2016 2017 2018 Financial Statement Analysis 38 The inventory turnover: is good because the ratios increase in recent years, indicating that the company is performing well and managing inventory effectively without being stagnant In 2018, this ratio was decreased, as mentioned above due to an increase in the available inventory by boosting exports This is not a bad sign 2.3 Operating cycle Operating cycle Net operating cycle 2015 2016 2017 2018 2019 185.16 157.17 138.34 141.74 130.93 51.03 31.85 29.23 45.23 24.78 Operating cycle 200 150 100 50 2014 2015 2016 2017 2018 2019 2020 Operating cycle: is generally on the decline, proving that the company is operating effectively The inventories are managed well without stagnation Reasonable credit policy which can help minimizes the risk of not earning money Net operating cycle 60 50 40 30 20 10 2014 2015 2016 2017 2018 2019 2020 Net operating cycle: has generally decreased with the lowest rate in 2019 Over the years showing that TLG has increased the efficiency of obtaining significant cash on the investments it made Financial Statement Analysis ANALYSIS OF DEBTDEBT-PAYING PAYING ABILITY 3.1 Current Debt ratio 2017 2018 2019 Working capital 617.393.499.504 680.729.207.872 1.276.240.715.716 Working capital turnover 4.06 4.4 3.32 We can see that the company's working capital has increased over the years Especially in 2019 nearly doubled the previous year The increase in working capital shows that the business has increased its current assets by making profit, selling the company's long-term assets, increasing owner's equity, reducing inventories, The increase in working capital can help businesses pay off debt and invest more in business operations more easily Working capital turnover of 2018 is 4.4, and in 2019 is 3.32 Compared to the previous two years, we can see the decrease in working capital turnover in 2019 The decline in working capital turnover comes from many reasons And one of the main reasons that can be clearly seen from the 39 Financial Statement Analysis company's trade receivables is that the company is having difficulty with customer receivables resulting in decreased working capital turnover 2017 2018 2019 Current ratio 2.3 2.37 3.3 Acid ratio 1.21 0.99 2.25 Cash ratio 0.75 0.29 0.35 Current ratios of 2017, 2018, 2019 are 2.3 , 2.37 , 3.3 Looking at the ratio, we can see that the company can afford to pay Having sufficient short-term assets to pay for short-term debts In short, the company has high solvency In 2018, the company's acid ratio was 0.99 less than But it was also in 2018, for the company's current ratio was 2.37 These two ratios are different because the current ratio does not include inventories It can be seen that the number of inventories in 2018 that is higher than every year affects the quick ratio However, in 2019, the company has a better way of managing inventories, reducing inventory, increasing quick solvency 40 Financial Statement Analysis It can be seen that in 2017, cash ratio is higher than 2018,2019 However, very few businesses have enough cash and cash equivalents to meet short-term debts For Thien Long is the same Cash ratio is less than Because the company uses these cash and cash equivalents to invest in business activities that generate higher revenue 3.2 Long-term debt ratio DEBT RATIO DEBT/EQUITY RATIO DEBT TO TANGIBLE NET WORTH TIME INTEREST EARNED 2015 0.36 1.6 2016 0.33 1.2 2017 0.32 2018 0.29 0.8 2019 0.25 0.78 1.8 1.56 1.2 0.84 0.8 39 34 36 28 21 DEBT RATIO 0.4 0.35 0.3 0.25 0.2 0.15 0.1 0.05 2014 2015 2016 2017 2018 2019 2020 In 2019, Thien Long's debt to assets ratio is the lowest in years This shows that Thien Long increasingly has high financial autonomy, and also shows a lower level of corporate risk 41 Financial Statement Analysis DEBT/EQUITY RATIO 1.8 1.6 1.4 1.2 0.8 0.6 0.4 0.2 2014 2015 2016 2017 2018 2019 2020 As we can see, Thiên Long's D/E increases over the years, with the sharp rise in 2019 The reason came from the increase in long-term and short-term debt for the business invesment Thiên Long's Debt to tangible net worth in 2019 reached the highest peak in years It can make their lenders unsafe because the higher this ratio is, the higher it reduces the margin of safety in their loans TIME INTEREST EARNED 45 40 35 30 25 20 15 10 2014 2015 2016 2017 2018 2019 2020 42 Financial Statement Analysis The TIE of the company in recent years is very high.The production and business activities also create good cash flows This proves that Thiên Long has the ability to pay off interest quite positively 3.3 Other long-term debt ratio Current debt net worth ratio fixed assets equity ratio 2015 404,618,283,947 821,643,489,472 197,690,192,119 821,643,489,472 current debt/ net worth ratio fixed assets/ equity ratio 2016 2017 2018 413,093,993,826 147,749,740,460 495,903,207,694 924,226,459,109 1,059,954,775,249 1,268,668,396,670 289,918,854,187 359,509,747,304 417,122,326,343 924,226,459,109 1,059,954,775,249 1,268,668,396,670 2019 554,653,680,656 1,806,986,871,569 464,236,995,775 1,806,986,871,646 2015 2016 2017 2018 2019 49.24% 44.70% 13.94% 39.09% 30.69% 24.06% 31.37% 33.92% 32.88% 25.69% Other Long-term Debt Ratio 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 2015 2016 2017 2018 2019 49.24% 44.70% 13.94% 39.09% 30.69% fixed assets/ equity 24.06% ratio 31.37% 33.92% 32.88% 25.69% current debt/ net worth ratio current debt/ net worth ratio fixed assets/ equity ratio The current debt/ net worth ratio increased in 2017 and decreased in 2017,2019 In 2019 the low ratio indicates that the business has a low debt burden, which means it can easily cover or meet its debt obligation without having to sell a lot of assets The fixed assets/ equity ratio decrease from 2017 to 2019 The ratio is less than 1, it means that stockholders’ equity is more than the fixed assets and the stockholders’ equity is financing not only the fixed assets but also a part of the working capital ANALYSIS OF STATEMENT OF CASH FL FLOW OW (RATIO ANALYSIS) Operating cash flow/ Current Maturities of Long - term Debt and Current Notes Payable Operating cash flow to the Total Debt Operating cash flow per Share Operating cash flow to Cash Dividends 2019 2018 2017 2016 2015 1.031121048 0.423285207 3355.830163 1.404006584 0.17245775 0.082705064 661.3993078 0.430257589 0.617594955 0.236760374 2412.140367 2.093849021 1.352444417 0.636636562 7645.187711 2.339393419 0.568300875 0.320418502 3942.060291 2.81890543 43 Financial Statement Analysis Operating cash flow/ Current Maturities of Long - term Debt and Current Notes Payable 1.6 1.4 1.352444417 1.2 1.031121048 0.8 0.617594955 0.6 0.568300875 0.4 0.2 0.17245775 2019 2018 2017 2016 2015 Since 2016, Thien Long has promoted and optimized the modern distribution system, by 2018, continues to promote the problem of expanding warehousing, meeting the demand for increased production and timely delivery to the country, the company actively strengthen long-term and short-term loans to meet the demand , which leads to an active cash flow rate on low-term and short-term debts However, in 2019, the structure of the company's operation is relatively stable and the company has transferred the whole land to 58.9 billion, so the proportion is increasing in the positive trend Operating cash flow to the Total Debt 0.7 0.636636562 0.6 0.5 0.423285207 0.4 0.320418502 0.3 0.236760374 0.2 0.082705064 0.1 2019 2018 2017 2016 2015 From the end of 2016 to 2018, Thien Long borrowed long-term and short-term debts to serve the purpose of expanding manufacturing processes, warehousing, improving production process quality and investing for fixed assets, so the total debt increased dramatically resulting in the proportion of cash flow operations on gross debt tends to lag very rapidly , and bottom 2018 But in 2019, the proportion of cash flows doing business on the total amount of debt skyrocketed, the principal cause of Thien Long's cash activity in this year was increasing in previous years, this demonstrates the company is profitable and is on the momentum of good growth 44 Financial Statement Analysis Operating cash flow per Share 9000 7645.187711 8000 7000 6000 5000 4000 3942.060291 3355.830163 2412.140367 3000 2000 661.3993078 1000 2019 2018 2017 2016 2015 During the period from 2015 to 2019, in 2016, Thien Long group reached the rate of cash flow operating on the highest number of circulating stocks, partly caused by shares in the year reached the highest level within the last years Moreover, due to its main business, the positive and wellworking capital management has helped to achieve this indicator However, in 2017 and 2018, the score is remarkly downtrend because capital has largely invested in fixed assets to improve the quantity and quality of products Operating cash flow to Cash Dividends 2.81890543 2.339393419 2.5 2.093849021 1.5 1.404006584 0.430257589 0.5 2019 2018 2017 2016 2015 The active cash flow on dividends is payable to shareholders descending from 2015 to 2018, and significantly increased from 2018 to 2019 This trend shows that within years from 2015 – 2018, the number of dividends paid to shareholders in this period is declining because the company is spending money on investing in FIXED assets and scaling production In 2019, however, because the economic situation is steadily being returned, the cash flows of business activities spike so the proportion of the trend is positive 45 Financial Statement Analysis REFERENCES https://www.reuters.com/companies/603899.SS/financials/balance-sheet-annual Palepu, Healy Business analysis & valuation Charles H.Gibson.Financial Reporting & Analysis Charles W.L.Hill, Gareth R.Jones, Mellisa A Schilling Strategic manangement 46 ... Thien Long Group, formerly known as Thien Long Ballpoint Pen Establishment, was established in 1981 In 2010 was officially listed on HSX with TLG code From 2013-2018, Thien Long has been named one... profit, selling the company's long- term assets, increasing owner's equity, reducing inventories, The increase in working capital can help businesses pay off debt and invest more in business operations... working capital has increased over the years Especially in 2019 nearly doubled the previous year The increase in working capital shows that the business has increased its current assets by making