ANALYSIS OF FINANCIAL STATEMENTS AT HOA PHAT GROUP JOINT STOCK COMPANY IN 2019 2020

NATIONAL UNIVERSITY OF ECONOMICS PRACTICE REPORT SUBJECT: SECURITIES INVESTMENT ANALYSIS TOPIC: ANALYSIS OF FINANCIAL STATEMENTS AT HOA PHAT GROUP JOINT STOCK COMPANY IN 2019-2020 GRADE: CLC 61A CORPORATE FINANCE NAME: TRAN HO NAM STUDENT CODE: 11193600 TEACHER: NGUYEN MINH HUE Hanoi, 2022 Table of contents INTRODUCTION PART I THEORETICAL BASIS FOR ANALYSIS OF FINANCIAL STATEMENTS Goals and meaning of financial statements Sources of information used for financial statement analysis .4 Methods in financial statement analysis .6 Content of financial statement analysis PART II 27 ABOUT HOA PHAT GROUP JOINT STOCK COMPANY 27 Company name and address 27 Main business lines 27 History of formation and development 27 Organization chart 29 Shareholder structure 29 Board of Directors 30 PART III 31 ANALYSIS OF HOA PHAT GROUP'S FINANCIAL STATEMENTS 2019-2020 31 Assessing the efficiency of hoa Phat's fixed capital use in 2019 and 2020 31 Assessing the efficiency of hoa Phat's working capital use in 2019, 2020 33 Capital structure and capital formation sources in 2020 34 Capital financing plans for the company .38 Ros, ROA, ROE targets in 2019 and 2020 of Hoa Phat 40 PART III 42 CONCLUSION 42 REFERENCES 43 INTRODUCTION The analysis of financial statements aims to generally assess the financial situation, business performance, potentials as well as financial limitations of enterprises in general and hoa Phat Group Joint Stock Company (HPG) in particular The analysis of financial statements of Hoa Phat Group Joint Stock Company is in the general condition of economic groups, state-owned corporations in Vietnam is still very new, sketchy and exists many limitations Therefore, I chose the topic: "Completing the analysis of financial statements at Hoa Phat Group Joint Stock Company" to study The thesis in addition to the introduction, conclusions and list of references, the list of abbreviations, diagrams, accompanying annexes are presented in three chapters with the following basic contents: PART I THEORETICAL BASIS FOR ANALYSIS OF FINANCIAL STATEMENTS Goals and meaning of financial statements Objectives of the financial statements: The basic purpose of the topic is a system of theoretical issues on the financial data of Hoa Phat Group Joint Stock Company to analyze the basic financial statements on the analysis of corporate financial statements in the market economy, relying on Hoa Phat Group Joint Stock Companyand analyzing the causes affecting the company's financial situation and assessing the reality the state of the financial situation at Hoa Phat Group Joint Stock Company, specifying the advantages and limitations that exist in terms of the financial situation at the Company From there, propose solutions to improve and propose financial capacity at Hoa Phat Group Joint Stock Company The meaning of financial statements: Financial activities have a direct relationship with production and business activities Therefore, all production and business activities have an impact on the finances of the business On the contrary, good or bad financial situations have a driving or inhibiting effect on the production and business process Therefore, the analysis of financial statements is important for the business owner himself and external objects related to the finances of the business For business managers: Financial research activities in the enterprise are called internal financial analysis, so complete information and understanding of the business, financial analysts in the business have many advantages to be able to analyze finance best Therefore, corporate managers must also pay attention to various goals such as creating jobs for workers, improving the quality of goods and services, lowering the lowest costs and protecting the environment Businesses can only achieve this goal when the business is profitable and pays off debts Therefore, more than anyone else, business managers need to have enough information to implement financial balance, in order to assess the past financial situation to conduct financial balance, profitability, solvency, repayment of debts, financial risks of the business Besides, orienting the decisions of the financial management board, investment decisions, financing, analysis of dividend yields For investors: Their concerns are primarily in payback, profitability, capital insolvency and risk Therefore, they need information about financial conditions, operating situation, business results and the potential of the business Investors are also interested in managing management This creates safety and efficiency for investors For lenders and suppliers of goods to businesses: Their concerns are directed at the ability of the business to repay debts By analyzing the financial statements of the business, they pay special attention to the amount of money and assets that can be converted into money quickly so that they can compare and know the instant solvency of the business For state agencies such as tax and finance agencies and employees for enterprises: The analysis of financial statements will show the financial situation of the business On the basis that it will accurately calculate the tax rate that the company must pay, the Finance Agency and the governing body will take more effective management measures Besides business owners, investors, Workers have the same basic information needs as they because it relates to rights and responsibilities, to their current and future customers From the above meanings, we see that the analysis of financial statements plays an important role for every manager in the market economy that is closely related to each other It is a useful tool used to determine economic value, assess the strengths and financial weaknesses of the business On that basis, discover objective, subjective causes that help each manager choose and make decisions that are consistent with the goals they are interested in Therefore, financial statement analysis is a powerful tool for business managers to achieve the highest results and efficiency Sources of information used for financial statement analysis 2.1 Sources of information from the balance sheet Concept: A balance sheet is a composite accounting statement that reflects the general situation of the assets of the enterprise at a certain time, in the form of currency according to the value of assets and sources of asset formation Meaning: The CSC table is an important document to analyze and evaluate in a general way the situation and business results, the level of capital use and the financial and economic prospects of the enterprise By reviewing the "Assets" section, it allows for a general assessment of the capacity and level of use of assets Legally, the asset portion represents the "potential number" that the enterprise has the right to manage and use long-term associated with the purpose of obtaining future benefits When considering the "Capital" section, economically, users see the financial situation of the business Legally, the user sees the responsibility of the enterprise for the total amount of capital registered for business with the State, the number of assets formed by bank loans, borrowing other objects as well as the responsibility to pay debts to employees, with shareholders, with suppliers, with the Budget Content and structure: The SSC is structured in the form of a balance sheet, full of accounting accounts and arranged targets according to management requirements The financial statement consists of two parts: the asset part: reflecting the value of the assets and the capital part: reflecting the source of asset formation The two parts "Assets" and "Capital Sources" can be divided between the sides (left and right) or one side (top and bottom) Each section has a total number and the total number of the two parts is always equal because the same amount of assets reflects the same amount of assets according to the accounting equation principle 2.2 Sources of information from business results reports The report on business results reflects the situation and results of the business activities of the business, including results from the main business activities and results from other financial activities and activities of the business The report on business results has the following effect: - Analyze and evaluate the implementation of the plan, estimate of production costs, capital price, revenue of consumption of goods products, cost situation, income of other activities as well as the corresponding results of each activity - Assess the development trend of the business, take measures to exploit the potential as well as limit overcoming future existences * Information provided by the business results report The business results report the business results report presents information on revenues, expenses, profits (or losses) arising from ordinary business activities and activities outside the normal business activities of the enterprise during a business period, division of the cost of corporate income tax and the net profit of the enterprise in that period 2.3 Sources of information from the cash flow statement Cash flow statements are a component of the corporate financial reporting system, providing information that helps users assess changes in net assets, financial structure, ability to convert assets into money, solvency and ability to generate cash flows during the operation of the business The cash flow report is used to check the status of the cash flow of the enterprise, assess previous predictions about cash flows; examine the relationship between profitability and net cash flow and predict the likelihood of the magnitude, duration, and speed of future cash flows, thereby providing information to management entities * The main effect of the cash flow statement is: - Provide information to assess the ability of the business to generate money, cash equivalents and needs in the use of funds - Provide information to the subjects using the analysis report evaluating the time as well as the certainty of generating funds in the business - Provide information on sources of money formed from business activities, financial investment activities to assess the impact of such activities on the financial situation of the business - Provide information to assess the solvency and determine the money needs of the business in the next period of operation Methods in financial statement analysis 3.1 Comparison method This is a method that is widely used in economic analysis in general, financial analysis in particular When using the comparison method, it is necessary to pay attention to the following issues First, comparison conditions - At least two quantities must exist - Quantities (indicators) must ensure comparison It is the unity of economic content, on the method of calculation, the agreement on time and units of measurement Second, identify the original root comparison of comparative origin depending on the purpose of the analysis Concrete: - When determining the trend and speed of development of the analysis target, the original comparison is determined as the value of the analysis target in the previous period or a series of previous periods (the previous year) At this time, we will compare this mid-term target with the previous period, this year with the previous year or a series of previous periods To detect the law of the transformation of each financial phenomenon, analyze based on the data source of many years of that phenomenon and choose a typical year to root, comparing the remaining years with the original year, based on the law of large numbers to consider fluctuations over time, If it is cyclical, it means the law of volatility - When assessing the implementation of the set objectives and tasks, the original comparison is the number of plans, estimates and norms of the analytical targets At that time, make a comparison between the reality and the plan, estimate, norms of the target This result not only examines the implementation of the objectives but also assesses the quality of forecasting and financial planning - When determining the position and ranking of enterprises, the original comparison is determined as the value of the average financial indicators of the industry, the standards and rating standards of the evaluation organization, professional ranking published or analytical indicators of competitors Third: The commonly used comparison technique is absolute numerical comparison, relative numerical comparison, vertical comparison, horizontal comparison - Compare by absolute number to see the absolute numerical fluctuation of the analytical indicator (CTPT) - Compare by relative numbers to see how much the rate or rate of increase or decrease of CTPT increase or decrease In fact, it is common to use relative numbers to study indicators in relation to other indicators to evaluate the economic relations of enterprises through the ratio system In order to assess the financial situation and operational efficiency of enterprises if only comparing the information available in the financial statements of enterprises is not enough but it is necessary through the analysis of financial ratios (coefficients) and economic indicators Financial ratios include: ratios reflecting solvency, operability, profitability, efficiency of using assets, speed of capital rotation These indicators show the relationship between different items in financial statements When comparing financial coefficients or ratios, we can give us more useful information - Vertical comparison (also known as vertical analysis technique) is the comparison by the relative number of each department with the whole, or one part with another of the whole to evaluate the structure, proportional relationship of the elements in the whole with or more components - Horizontal comparison (also known as horizontal analysis technique) is the comparison of each indicator over time or in different dimensions that have similarities 3.2 Method of exclusion The exclusion method is applied to determine the degree of influence of each independent factor on the research target When determining the effect of one factor on the analytical indicators, it is assumed that the remaining factors not change This method consists of two forms: the continuous replacement method and the difference number method 3.3 Application of Dupont financial model - ROA The Dupont financial model is often used to analyze the link between factors that affect financial indicators to be analyzed Thanks to the analysis of the relationship between the factors, it is possible to detect the factor that has influenced the analytical target in a strict logical sequence and the analyst will be aware of the causes and improve the possible weakness The Dupont financial model is often used to analyze the return on total assets (ROA), return on equity (ROE) If you analyze the return on assets (ROA), it takes the following form: From the above model it can be seen that, in order to improve the profitability of a coasset that the enterprise is using, corporate governance must study and consider what measures are available for the continuous improvement of the profitability of revenue and the movement of assets Thus, financial analysis under the Dupont model has great significance for corporate governance, not only evaluating business performance in a deep and comprehensive way, but also fully and objectively evaluating the factors affecting business performance Thereby, the system of meticulous and authentic measures to strengthen the improvement of the business management organization, contributing to constantly improving the business efficiency of the business in the next business periods 3.4 Balanced contact method The balanced relationship method is the method based on the balance of quantity between the two sides of the elements and of the business process When factor indicators are related to analytical indicators are expressed as totals or differences The balanced contact method is used to determine the influence by the difference of each factor between periods (the actual period compared to the planned period, the current period compared to the previous period), between independent factors Content of financial statement analysis 4.1 General analysis of the financial situation of the enterprise A general analysis of the financial situation is the consideration and general assessment of the financial situation of the enterprise This work will provide the user with information about whether the financial situation of the business is positive or not The general assessment of the corporate financial situation is carried out through the following basic criteria: 4.1.1 General assessment of the capital mobilization situation of enterprises The fluctuation (increase or decrease) of the total capital sources at the end of the year compared to the beginning of the year and compared to previous years adjacent is one of the indicators used to assess the ability of enterprises to organize and raise capital in the year However, due to the increase and decrease of the capital of the enterprise due to various reasons, the fluctuation of the total capital sources does not fully reflect the financial situation of the enterprise, so when analyzing, it should be combined with the consideration of the capital structure and the fluctuation of capital sources to have appropriate comments To analyze the growth trend of capital, the analysts used a method of comparing the original relative number (yi/y0; i=1,2, ,n) to compare the growth rate over time of the total capital with a fixed root period: To find out if the pace of capital growth (capital mobilization) is consistent between periods, analysts use a relatively continuous numerical comparison method (yi/y(i-1)." From there, contact the actual situation to assess the situation of capital mobilization of the enterprise 4.1.2 General assessment of the level of financial independence of enterprises The level of independence and financial autonomy of the enterprise reflects the ability of the enterprise to make decisions about the financial and operational policies of the enterprise as well as the control over such policies To generalize the level of financial independence of the business, analysts often use the following indicators: Funding coefficient: is a criterion that reflects the financial self-assurance and the level of financial independence of the business This indicator indicates that, of the total capital sources of the enterprise, equity accounts for some parts The greater the value of the target, the higher the financial self-assurance, the greater the level of financial independence of the enterprise and vice versa, when the value of the target is smaller, the lower the financial selfassurance capacity of the enterprise, the level of financial independence of the business decreases 10 Organization chart Figure 1: Hoa Phat Group organization diagram Shareholder structure 29 Figure 2: Hoa Phat Group's shareholder structure Source: [ CITATION Gro20\l 1033 ] Board of Directors Time Full name and name 31/12/202 Mr Tran Dinh Long Mr Doan Gia Cuong Mr Nguyen Manh Tuan Mr Tran Tuan Duong Mr Hoang Quang Viet Mr Nguyen Ngoc Quang Mr Nguyen Viet Thang Ms Nguyen Thi Thao Duty Chairman of the Board of Directors Vice Chairman of the Board of Directors Vice Chairman of the Board of Directors Vice Chairman of the Board of Directors Board member Board member General Manager/ Board Member Deputy General Year of birth 1961 Degree Stock Stick time Bachelor of Economics 1,166,400,000 1992 1963 Master of Business Administration 56,066,315 1999 1962 Bachelor of Economics 101,449,929 1996 1963 Bachelor of Economics 103,471,308 1992 1961 University 21,760,911 2001 1960 Intermediate 84,686,315 1992 1970 Construction engineer 14,346,270 2003 1973 Bachelor of Economics 859,909 1998 30 Nguyen Ms Pham Thi Kim Oanh Ms Bui Thi Hai Van Ms Le Minh Thuy Ms Ngo Lan Anh Ms Thai Thi Loc Manager Chief Accountant /Chief Financial Officer Head of Supervisory Board Member of the Supervisory Board Member of the Supervisory Board Member of the Supervisory Board 1982 Economic masters 1979 Bachelor of Accounting 2008 Bachelor of Auditing N/A Bachelor of Laws 28,856 1,100 Bachelor of Laws 2008 N/A N/A PART III ANALYSIS OF HOA PHAT GROUP'S FINANCIAL STATEMENTS 2019-2020 Assessing the efficiency of hoa Phat's fixed capital use in 2019 and 2020 1.1 Efficiency of using fixed capital in 2019, 2020 Table 1: Efficiency of using fixed capital of Hoa Phat Group 31 (Athletes: million dong) Quota 2019 2020 Average fixed capital 62.126.687 Net revenue Spreads number difference % 73.051.634 10.924.947 17,58% 63.658.193 90.118.503 26.460.310 41,57% LN after tax Performance using fixed capital =(2)/(1) 7.578.248 13.506.164 5.927.916 78,22% 1,02 1,23 0,21 20,39% Fixed capital content = (1)/(2) 0,98 0,81 (16.53%) (16.94% ) Profit margin = (3)/(1) 12,20% 18,49% 6,29% 51,57% Original price of fixed assets The amount of depreciation and accounting of fixed assets TSCD wear coefficient = (8)/(7) 67.405.566 127.104.107 59.698.541 88,57% (23,373,512) (0 35) (30,292,956) (6,919,444) 29,60% 0,11 (31.27% ) (0 24) 1.2 Commenting and evaluating the effectiveness of using fixed capital In which: Average fixed capital = - - fixed capital avg đầu ky +fixed capital avg cuoi ky Efficiency of fixed capital use: In 2020 compared to 2019, hoa Phat company's fixed capital efficiency increased by 20.39% corresponding to an increase of VND 0.21 Thus, fixed capital coin of 2020 will generate more revenue than in 2019 Fixed capital content: Reflected to get dong of revenue, it is necessary to invest VND 0.98 of fixed capital in 2019 By 2020, the fixed capital content will decrease by 16.94% corresponding to VND 0.17 Fixed capital return: This target indicates that an average of fixed capital generated 0.122 VND in profit in 2019 In 2020, the profit margin of fixed capital increased to VND 0.185 The difference between 2020/2019 is 51.57% corresponding to an increase of VND 0.06 profit The profit margin of fixed capital tends to increase, which can see the quality and efficiency of fixed capital investment increase Fixed asset wear factor: Shows the level of wear and tear of fixed assets at the time of assessment compared to the time of initial investment The wear and tear factor of fixed assets in 2019 is (0.35) proving that the fixed assets of enterprises are new and modern By 2020, this coefficient will increase (0.24), from here, we can see the wear and tear of hoa Phat's fixed assets within year Assessing the efficiency of hoa Phat's working capital use in 2019, 2020 32 2.1 Efficiency of using working capital in 2019, 2020 Table 2: Efficiency of using working capital of Hoa Phat Group Chênh lệch (+)/(-) % 63.658.192 90.118.503 26.460.311 41,57% 27.872.831 43.592.097 15.719.266 56,40% 7.578.248 13.506.164 5.927.916 78,22% Chỉ tiêu 2019 Doanh thu Vốn lưu động bình quân Lợi nhuận sau thuế Vòng quay vốn lưu động = (1)/(2) Kỳ luấn chuyển vốn lưu động = 360/(4) 2,28 157,63 2020 2,07 173,91 0,21 16,29 10,33% 0,040 9,09% 0,22 -9,48% 0,04 13,94% Hàm lượng vốn lưu động 0,44 0,48 Hiệu suất sử dụng vốn lưu động = (1)/(2) 2,28 2,07 - Tỷ suất lợi nhuận vốn lưu động (%) = (3)/(2) 27,19% 30,98% -9,36% 2.2 Commenting and evaluating the effectiveness of using working capital In which: Average Working capital = - - - - - VL D bq đầu k ì +VL D bq cuối kỳ Working capital rotation: Reflecting the company performing 2.28 rotations in 2019 By 2020, it will be reduced to 2.07 working capital rotations, a difference of 9.48% equivalent to (0.22) rotation This shows that hoa Phat's business is experiencing problems with inventory volume Businesses need to change their business strategy Working capital rotation: Indicates how long it takes to make a Working capital rotation The lower the ratio, the better We have noticed that the time of a Working capital rotation in 2020 increased compared to the time of a Working capital rotation in 2019 of 16.51 days In other words, working capital in 2020 is slower than in 2019, causing the number of days of a Working capital rotation to increase from 157.63 days to 174.14 days Working capital content: In 2019, to generate vnd of revenue needs 0.44 VND working capital In 2020 to generate dong of revenue, it is necessary to 0.48 VND Working capital Efficiency of using Working capital: In 2020 compared to 2019, hoa Phat's working capital performance decreased by 9.48% corresponding to a decrease of VND 0.22 Thus, coin of Working capital in 2020 will generate less revenue than in 2019 Due to the impact of covid 19 epidemic, the effectiveness of using Working capital of enterprises is reduced Working capital profit margin: From the above calculation data, we see that in 2020, the company's VLD is more effective than 2019 as shown by the increase in the profit margin of VLD In 2019, this rate is 27.19% compared to 30.98% in 2020 This means that in 2019, for every 100 VND spent, 27.19 Profit after taxes 33 will be collected Meanwhile, in 2020, for every 100 VND spent, 30.98 Profit after taxes will be collected Figures from [ CITATION Newspaper191 \l 1033 ], CITATION Newspaper201 \l 1033 ] Capital structure and capital formation sources in 2020 3.1 Capital structure Capital sources are financial relationships through which businesses can exploit or raise a certain amount of money to invest assets Figure 3: Capital structure of Hoa Phat from 2015-2020 In 2020, the Group's financial structure will remain stable Equity increased by 24%, from VND 47,787 billion to VND 59,220 billion from profit streams made in the year Although the ratio of liabilities to equity increased above level 1, the ratio of bank loan debt to equity stood at 0.91 times 34 Figure 4: Hoa Phat's debt coefficient from 2018-2020 The net bank loan-to-equity target currently stands at 0.54 times, which is a low average for the use of financial leverage Although it is the year with the highest bank loan milestone ever due to the scale of the sharp increase but still controlled at a safe level, helping the Group have a very strong resilience in the near future Net cash flow from business activities began to increase more, increasing by 17% compared to the same period last year, indicating that Hoa Phat's financial "health" is getting better and better Source: [ CITATION Gro20 \l 1033 ] Figure 5: Hoa Phat's solvency coefficient from 2018-2020 The current solvency at the end of 2020 is 1.09 times and the ability to pay is 0.54 times faster, better than the same period in 2019 The current payout ratio always maintains above indicating that the Group's ability to pay short-term liabilities is good Table 3: Capital statistics of Hoa Phat in 2019 and 2020 (Athletes: million dong) 35 31/12/2019 31/12/2020 53.989.393 72.291.648 Chênh lệch +/Tỷ lệ (%) 18.302.255 33,9% 26.984.198 51.975.217 24.991.019 92,6% 7.507.198 10.915.752 3.408.554 45,4% Người mua trả tiền trước ngắn hạn 408.691 1.257.272 848.581 207,6% Thuế khoản phải nộp NN 478.426 548.579 70.153 14,7% Phải trả người lao động 247.936 313.099 65.163 26,3% Chi phí phải trả ngắn hạn 429.777 640.129 210.352 48,9% Doanh thu chưa thực ngắn hạn 27.406 34.564 7.158 26,1% Phải trả ngắn hạn khác 237.391 328.061 90.670 38,2% 16.837.653 36.798.465 19.960.812 118,5% 3.111 5.846 2.735 87,9% Chỉ tiêu I NỢ PHẢI TRẢ Nợ ngắn hạn Phải trả người bán ngắn hạn Vay ngắn hạn Dự phòng phải trả ngắn hạn Quỹ khen thưởng, phúc lợi Nợ dài hạn Phải trả người bán dài hạn Chi phí phải trả dài hạn 806.604 1.133.445 326.841 40,5% 27.005.195 20.316.430 -6.688.765 -24,8% 6.652.492 2.637.987 -4.014.505 -60,3% 427.328 223.664 -203.664 -47,7% 3.2 Sources of capital formation in 2020 According to the source of capital formed Divided by source of formation, hoa Phat Group's capital in 2020 includes equity and liabilities In it: - In 2020, the equity source (which is the capital spent by the business owner in the form of capital contribution, equity ) reached VND 59,219,786,306,111 on December 31, 2020, an increase of 23.9% compared to December 31, 2019 - Hoa Phat's liabilities in 2020 reached VND 72,291,648,082,726 , an increase of VND18,302,254,126,521 or 33.9% compared to December 31, 2019 Over time mobilized and used Divided by the time of mobilization and use, hoa Phat Group's capital in 2020 includes temporary capital and regular capital In it: - In 2020, Hoa Phat's temporary capital (short-term capital, meeting temporary capital needs) reached VND 51,975,217,447,498, an increase of 92.6% compared to the temporary capital in 2019 - Regular capital sources (long-term capital sources of a stable nature, used in production and business activities) of enterprises decreased compared to December 31, 2019, to VND 20,316,430,630,228 equivalent to 24.8% By scope of mobilization Divided by the scope of mobilization, hoa Phat Group's capital in 2020 includes internal and external capital sources In it: - In 2020, the internal capital (which is the capital mobilized from production and business activities) of Hoa Phat reached million VND 21,792,442, an increase of 36 - 37.2% compared to December 31, 2019 The increased internal capital compared to the previous year demonstrates hoa Phat's relatively good self-financing ability, saving capital costs, maintaining control of the business and limiting the pressure to pay debts on time Hoa Phat's external capital (which is a source of capital mobilized from other activities) in 2020 reached million VND 70,845,102, while, on December 31, 2019, this capital only reached million VND 52,934,852 Thus, after year, the internal capital of the enterprise has grown by 33.8% Adjective Figures [ CITATION Newspaper201 \l 1033 ] Specifically, hoa Phat's capital formation sources in 2020 are shown in the following table: Table 4: Sources of capital of Hoa Phat in 2020 37 Nguồn hình thành nên nguồn vốn Các nguồn vốn Theo nguồn vốn hình thành Vốn chủ sở hữu x x x x x x x x x x Phải trả người bán Người mua trả tiền trước Thuế khoản phải nộp NN Phải trả người lao động Chi phí phải trả ngắn hạn Phải trả ngắn hạn khác Vay nợ thuê tài ngắn hạn Dự phịng phải trả ngắn hạn Quỹ khen thưởng phúc lợi 10 Vay nợ thuê tài dài hạn 11 Vốn chủ sở hữu 12 Quỹ đầu tư phát triển 13 Quỹ khác Nợ phải trả Theo thời gian huy động sử dụng Theo phạm vi huy động NV thường NV tạm thời NV bên NV bên xuyên x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Capital financing plans for the company From Hoa Phat's capital statistics report (2019 - 2020), we see an increase in the cost of using equity over two years, specifically in 2020 increased 23.9% compared to 2019 In which equity increased by 20%, proving the effective use of equity capital, creating a relative profit for the business In addition, we also see that the capital mobilization from TDNH is being used by businesses and it has brought some positive results In 2019 it was VND 22,248,179,488,083 and IN 2020 it was VND 22,587,781,095,478 (up 1.53%) Thus, it can be seen that raising capital from bank credit and issuing shares can be considered as the most suitable method for Hoa Phat Group today 4.1 Capital mobilization by bank credit Advantages - It is possible to mobilize large amounts of capital in the short or long term, meeting the capital needs of the enterprise for different objectives; 38 - Bank interest rate is considered a type of expense, so when using bank loans, enterprises are entitled to a partial reduction in corporate income tax; - The cost of using bank credit is the cheapest of all methods of raising capital; - Low level of risk: by the time of payment, the enterprise fails to pay the debt will be issued additionally by the bank Disadvantages - The enterprise must have a report on the specific capital use plan for the bank to appraise and need assets to secure such loan; - Enterprises must comply with regulations set by banks in the use of loans; - Subject to the supervision of the bank on the use of capital for the right purposes stated in the contract, pay the principal and interest on the committed term ; - Enterprises reduce the initiative in borrowing and using loans because they depend on the bank's assessment and regulations set out by credit institutions 39 Complex and time-consuming procedures can cause businesses to lose business opportunities due to the lack of capital in a timely manner 4.2 Mobilize capital from stock issuance Advantages - The enterprise is underwritten by the bank and has a securities company that supports the public offering of shares; - Improving the ability to borrow capital, thereby being able to expand the scale, increase the competitiveness of enterprises in production and business due to the acquisition of new resources both in finance, technology - The enterprise does not have to return the principal nor is it required to pay dividends if the business is not profitable because the dividends are divided from after-tax profits Disadvantages - The cost of guarantee and issuance that the enterprise must pay to banks and securities companies is relatively large; - Cumbersome, time-consuming loan procedures; - The issuance of shares is likely to reduce the current owner's control over the business; - The issuance of additional shares often reduces the share price of the business Ros, ROA, ROE targets in 2019 and 2020 of Hoa Phat 5.1 ROS, ROA and ROE targets in 2019 and 2020 40 Chênh lệch Chỉ tiêu 2019 2020 +/- Tỷ lệ 1) Tổng tài sản bình quân 89.999.518 116.643.732 26.644.214 29,60% 2) Vốn CSH bình quân 44.204.792 53.503.211 9.298.419 21,03% 3) Doanh thu 63.658.192 90.118.503 26.460.311 41,57% 4) Lợi nhuận sau thuế 7.578.248 13.506.164 5.927.916 78,22% Tỷ suất lợi nhuận tổng tài sản ROA = (4)/(1)*100% 8,42% 11,58% 3,16% 37,51% Tỷ suất lợi nhuận doanh thu ROS = (4)/(3)*100% 11,90% 14,99% 3,08% 25,89% Tỷ suất lợi nhuận vốn CSH ROE = (4)/(2)*100% 17,14% 25,24% 8,10% 47,25% In which: T tài s ản bình quân= Average CSH = Tài sản đầu kỳ + Tài sản cuối kỳ Vốn CSH đầu kỳ +Vốn CSH cuối kỳ 5.2 Commenting and evaluating ROS, ROA, ROE targets - In 2020, ros, ROA and ROE profitability indicators all increased higher than in 2019 due to increased after-tax profitability Concrete: POSITIVE ROS proves that the company operates effectively and the business is profitable ROS increased by 25.97% year-on-year indicating the profitability of increased revenue Roa's 37.53% increase indicates that using assets to profit a company is more efficient than the previous year ROE's increase of 47.26% in 2020 proves that Hoa Phat uses capital more effectively than in 2019 ROE >15% indicates that the company has sufficient financial capacity - The asset turnover over years ≈ 0.7 rounds and the increased ROS ratio will cause roa to increase accordingly As you can see, the business has managed the cost well during the period 41 - In addition, the ROE target is greater than the ROA target proving that the company has effectively used financial leverage, using borrowed capital to further increase the profit margin of the business Thus, in general, despite the impact of covid-19 epidemic, Hoa Phat's business situation is still relatively stable and achieves high performance PART III CONCLUSION By analyzing the corporate financial statements of Hoa Phat Group Joint Stock Company in 2019 and 2020, the group has drawn assessments on strengths, weaknesses as well as the efficiency of production and business activities of enterprises At the same time, the group also understands: analyzing the financial situation of the business is an important process for businesses to come up with the right strategies, investment directions and development to achieve the highest efficiency In an increasingly integrated economy, wanting to survive requires businesses in general and Hoa Phat Group Joint Stock Company in particular to actively take the initiative, constantly chalk their heads, improve their working performance; at the same time, continue to maintain and develop business capacity as well as improve the lives of employees In the past two years, the company has made many efforts, active in business activities as well as building and expanding production and business activities at member companies However, due to the long-term stressful epidemic situation, the business efficiency of the company in general and the efficiency of the organization using capital in particular is not really flexible In the "new normal" – living with the epidemic, the whole company needs to unite, as well as the Board of Directors needs to be more discerning to be able to make the most appropriate 42 decisions, try to overcome difficulties, help the Company grow and grow as well as ensure the lives of employees in the Company REFERENCES Group, H P (2019) Financial statements Retrieved from Hoa Phat: https://file.hoaphat.com.vn/hoaphat-com-vn/2020/01/hpg-bctc-hop-nhat-31-12-20191.pdf Group, H P (2020) Financial statements Retrieved from Hoa Phat: https://file.hoaphat.com.vn/hoaphat-com-vn/2021/03/hpg-bao-cao-tai-chinh-hop-nhatnam-2020-sau-kiem-toan.pdf Group, H P (2020) Annual report Retrieved from Hoa Phat: https://file.hoaphat.com.vn/hoaphat-com-vn/2021/04/bctn-2020-online.pdf Group, H P (n.d.) A look at HPG Retrieved from Hoa Phat: https://www.hoaphat.com.vn/ UDS ("n.d") Syllabus "Corporate Finance" Hanoi: Statistics Publishing House Financial statements (n.d.) Scribbr https://finance.vietstock.vn/HPG/tai-chinh.htm 43 ... analysis of corporate financial statements in the market economy, relying on Hoa Phat Group Joint Stock Companyand analyzing the causes affecting the company' s financial situation and assessing... reality the state of the financial situation at Hoa Phat Group Joint Stock Company, specifying the advantages and limitations that exist in terms of the financial situation at the Company From... Objectives of the financial statements: The basic purpose of the topic is a system of theoretical issues on the financial data of Hoa Phat Group Joint Stock Company to analyze the basic financial statements