(TIỂU LUẬN) FINANCIAL STATEMENT ANALYSIS VIETNAM DAIRY PRODUCTS JSC

DA NANG UNIVERSITY DA NANG UNIVERSITY OF ECONOMICS ACCOUNTING FACULTY    FINANCIAL STATEMENT ANALYSIS: VIETNAM DAIRY PRODUCTS JSC Lecturer: Associate Professor Đon Ngc Phi Anh GROUP 2: Lê Thị Thuý Hằng: 42K18.2-CLC Phạm Hà Lan Chi: 42K18.2-CLC Hồ Thị Thuý Hà: 42K18.2-CLC Hong Thị Yn Nhi: KT42K18CT2.1-CLC Da Nang, 04/2019 MC LC I General information: II Assets structure: III Resource structure: Financial autonomy: Fund stability: Financial balance: IV The factors affecting the efficiency of using current assets: V Operational efficiency: Analysis of asset use efficiency: Inventories turnover: Customer accounts receivable turnover Account payable turnover Return on sales (ROS) 10 Return on assets (ROA) 10 Return on equity (ROE) 11 DuPont Analysis and factors affect ROE: 11 VI Analyzing financial risks and business risks in financing options: 13 VII Analyze insolvency risk of enterprises: 13 Short-term liquidity risk: 13 Long-term solvency risk: 15 VIII Change depreciation method: 16 IX Evaluate the performance of enterprises through EVA: 17 X Conclusion: 19 Vietnam Dairy Products JSC Group I General information: Vinamilk (Vietnam Dairy Products JSC) is the largest dairy company in Vietnam Based on the UNDP 2007 Top 200 largest firms in Vietnam report, it is also the 15th largest company in Vietnam and the most valuable public company listed in Vietnam In 2010, it is the first company in Vietnam to be included in the Forbes Asia's 200 Best Under A Billion list that highlights 200 top-performing small- and mid-sized companies with annual revenue under US$1 billion The company was established in 1976 as the state-owned Southern Coffee-Dairy Company, to nationalize and take over the operations of three previously private dairy factories in South Vietnam: Thống Nhất (belonging to a Chinese company), Trường Thọ (formerly owned by Friesland Foods, best known for its production of condensed milk that was widely distributed across the South) and Dielac (Nestlé) It was renamed United Enterprises of Milk Coffee Cookies and Candies in 1978 It became the Vietnam Dairy Company, formally established in 1993 In 2003, following its IPO to the Ho Chi Minh Stock Exchange, the company legally changed its name to Vietnam Dairy Products Joint Stock Company (Vinamilk) The principal activities of the Vinamilk are to produce and distribute condensed milk, powdered milk, fresh milk, soya milk, yogurts, ice-cream, cheese, fruit juice, coffee and other products derived from milk II Assets structure: 2015 2016 2017 Criteria Amount Propot ion Current assets 15,822,463,92 5,273 Cash and Cash equivale nt 1,067,935,585 ,325 4% Short term financial investm 8,653,183,732 ,226 33% Amount Propot ion Amount Propot ion 61% 17,801,341,38 63.30% 19,002,943,39 58.45% 2,408 5,528 485,358,843,1 52 1.73% 733,003,539,9 43 2.25% 10,368,523,48 10,515,000,83 36.87% 32.34% 8,016 1,849 Vietnam Dairy Products JSC Group ents Short term accounts receivab le 2,558,257,733 ,837 10% 2,707,207,940 ,196 9.63% 4,177,896,085 ,300 12.85% Inventor ies 3,467,279,028 ,328 13% 4,098,729,148 ,422 14.57% 3,447,759,304 ,261 10.61% Other current assets 75,807,844,55 0.29% 146,521,962,6 22 0.52% 129,283,635,1 75 0.40% Noncurrent assets 10,186,083,96 8,354 39% Long term accounts receivab le 14,238,293,77 0.05% 15,126,638,17 0.05% 43,381,778,32 0.13% Fixed assets 6,195,233,101 ,403 24% 5,790,522,519 ,072 20.59% 6,578,193,561 ,054 20.23% Long term financial investm ents 3,255,627,270 ,385 13% 3,616,419,284 ,278 12.86% 5,358,856,346 ,187 16.48% Other noncurrent assets 303,968,077,3 61 1% 334,590,662,5 07 1.19% 460,319,984,4 83 1.42% Total assets 26,008,547,89 3,627 100% 28,123,204,34 4,794 100% 32,509,573,33 7,670 100% 10,321,862,96 13,506,629,94 36.70% 41.55% 2,386 2,142  2016: Expanding four more potential markets in Africa Vietnam Dairy Products JSC Group Contributed 18% share capital of APIS JSC as to expand and broaden goods supply chain of Vinamilk Opened a respresentative office in Thailand  2017: Cu Chi Raw Milk Center was went under operation Invested in sugar industry by acquiring 65% share capital of Vietnam Sugar JSC (formerly known as Khanh Hoa Sugar JSC) and 25% share capital of Asia Coconut Processing JSC Cash: in 2017, cash significantly increases because thanks to good business results, the Company always maintained a high level of cash and managed this cash flow in an effective and safe way The risk management policy was set up to ensure that term deposits were always at optimal levels of safety and flexibility in order to meet the Company's capital needs at all times Accounts receivable: accounted for 12.85% of total assets No significant bad debts were incurred during the year The Company maintained a good policy on receivables management The amount of accounts receivable in 2017 increases nearly double compared to the previous year That because since mid-November 2017, the Company has changed its credit policy for domestic customers, in which the credit period was increased to support sales better This change led to an increase in receivables from customers Inventories: There was a significant decrease in the proportion of inventories in 2017 compared to the previous year Because in 2017, The "Just in time" procurement strategy has been applied together with the optimization of inventory management and warehouse planning at the subordinate units that have brought about remarkable results in the Company’s inventory control, compared to the previous year III Resource structure: Financial autonomy: 2015 2016 2017 5,650,757,468,579 6,329,270,261,772 9,213,216,736,722 26,008,547,893,627 28,123,204,344,794 32,509,573,337,670 22% 23% 28% Owner equity 20,357,790,425,048 21,793,934,083,022 23,296,356,600,948 Total assets 26,008,547,893,627 28,123,204,344,794 32,509,573,337,670 78% 77% 72% Total liabilities Total assets Total liabilities/Total assets (Debt ratio) Owner equity/Total Vietnam Dairy Products JSC Group assets (Self-funded ratio) The debt ratio reflects the level of debt use of the company In 2017, this ratio is 28%, means 28% of the company's asset value is financed from debt The debt ratio of Vinamilk gradually increases over the years (from 22% to 28% over the past three years), but still quite low compared to the industry average (Milk industry’s debt ratio is 68.98%.) Company uses less debt to finance its assets This has the positive side of the ability to financial autonomy and the ability to borrow a high debt in the future However, the downside is that the company does not take advantage of financial leverage and loses the opportunity to save the tax from the use of debt Healthy financial structure brings significant advantages for the Company in implementing M&A deals on a large scale Debt ratios tend to increase over the years because in recent years, there are more big competitors such as TH True Milk, Nutifood and dozens of liquid milk brands imported from abroad This competitive pressure forces Vinamilk to increase its investment even further in order to keep its market dominance Vinamilk has very good cash flow generated from stable business operations, with high profit growth This is a platform for flexible implementation of business strategies, putting pressure on all competitors Market forces show that only foreign competitors are competitors that can threaten Vinamilk's position Accompanying it is expanding exports to potential markets Vinamilk has factories overseas such as the US (owning 100% Driftwood factory in California state), Cambodia (owning 100% Angkormilk factory in Phnom Penh capital), and New Zealand (owning 22.8%) with subsidiary in Poland The company's products have been exported to 43 countries around the world such as the US, Japan, Australia, Thailand, Myanmar, Bangladesh, countries in the Middle East region Fund stability: 2015 (1) Current liabilites (2) Non-current liabilites (3) Owner’s equity (4) Permanent capital = (2)+(3) 2016 2017 5,563,657,738,579 6,233,534,218,272 9,111,522,890,254 87,099,730,000 95,736,043,500 101,693,846,468 20,357,790,425,048 21,793,934,083,022 23,296,356,600,948 20,444,890,155,048 21,889,670,126,522 23,398,050,447,416 Vietnam Dairy Products JSC Group 5,563,657,738,579 6,233,534,218,272 9,111,522,890,254 26,008,547,893,627 28,123,204,344,794 32,509,573,337,670 (7) Permanent capital ratio (%)=(4/(6) 78.61% 77.83% 71.97% (8)Temporary capital ratio (%)=(5)/(6) 21.39% 22.17% 28.03% (5) Temporary capital = (1) (6) Total capital 2017: Vinamilk's owner’s equity increased significantly because the company implemented a bonus share issuance policy for existing shareholders at the ratio of 5: 1, meaning each shareholder owns shares will receive additional issue share In general, a high permanent capital ratio indicates the greater the stability of the funding Financial balance: Figures 2015 2016 2017 15,822,463,925,273 17,801,341,382,408 19,002,943,395,528 (2) Current liabilities 6,004,316,835,213 6,233,534,218,272 9,111,522,890,254 (3) Net working capital = (1)+(2) 9,818,147,090,060 11,567,807,164,136 9,891,420,505,274 (4) Inventories 3,467,279,028,328 4,098,729,148,422 3,447,759,304,261 (5)Short-term receivables 2,558,257,733,837 2,702,207,940,196 4,177,896,085,300 (6)Short-term account payable (not including bank loans) = (7)-(8) 4,321,647,738,579 5,033,534,218,272 9,111,522,890,254 (7)Short-term account payable 5,563,657,738,579 6,233,534,218,272 9,111,522,890,254 (8) Short-term borrowings and finance lease liabilities 1,242,010,000,000 1,200,000,000,000 (9)Net working capital required = (4)+(5)-(6) 1,703,889,023,586 1,767,402,870,346 (1,485,867,500,693) (10) Net fund = (3)-(9) 8,114,258,066,474 9,800,404,293,790 11,377,288,005,967 (1) Current assets There was a sharp increase in short-term account payables from 2015, 2016 to 2017 because of a sudden increase in other payables from 574,093,150,299 (2016) to 3,023,434,643,866 (2017) The reason is in 2017, Vinamilk pays a proportion of the Vietnam Dairy Products JSC Group profit as a dividend to shareholders and in 2016, they didn’t This makes net working capital required significantly increase, so net fund is improved Company has sufficient capital to finance current assets Positive net funds represent a safe financial balance because businesses not have to borrow to offset the shortage of net working capital needs so they not meet difficulties in short-term payment IV The factors affecting the efficiency of using current assets: Figures 2015 2016 % changes 2017 2016/2015 2017/2016 Average current assets 15,210,520,640,436 16,811,902,653,841 18,402,142,388,968 10.53% 9.46% Net sales 37,913,499,514,763 43,809,126,381,210 47,506,683,942,486 15.55% 8.44% Current assets use efficiency 2.49 2.61 Average day of current asset turnover 144.3 138.15 2.58 139.45 Average current assets all increased over years, specific in 2016 increased 10.53% compared to 2015, although still increases but in 2017 compared to in 2016 (9.46%) less than in 2016 compared to 2015 Net sales also increased each year, specific in 2016, it increased by 15.55% compared to 2015, although it still increased but in 2017 compared to 2016 (8.44%) less than in 2016 compared to 2015 Current assets use efficiency in 2017 was 2.58 and 2016 was 2.61 to show each short-term asset of the company in turn generated 2.58 and 2.61 dong of revenue We can see that Average day of current asset turnover in 2017 has decreased compared to 2016 because the change of net sales percentage is less than the percentage of Current Assets But overall, still larger than Average day of current asset turnover the industry average Vietnam Dairy Products JSC Group V Operational efficiency: Analysis of asset use efficiency: Figures 2015 2016 % change 2017 2016/2015 Average total assets 25,245,581,143,455.5 27,065,876,119,210.5 30,316,388,841,232 Total sales and revenues 38,796,950,031,012 44,848,115,301,649 48,943,156,735,159 Assets use efficiency 1.54 1.66 1.61 2017/2016 7.21% 12.01% 15.60% 9.13% In 2016: There is a significant revenue growth because keep up with market demand and technological progress, offers many products with featured and benefits meet the customer's diverse need For foreign market, the presence in 43 countries and territories also brings a significant revenue In 2017: Each property of the company generated 1.61 dong of revenue, this suggests that efficiency of assets use of company as well However, have a slight decrease compared to 2016 The market share: main categories liquid milk, Powdered milk, Eating Yogurt, Drinking Yogurt and condensed milk all increased their market share compared to 2015 Specifically: milk increased 1.5% to 54.5%, eating yogurt increased 0.4% to 84 7% and drinking yogurt increases abruptly 1.9% to 33.9% Total asset turn over of the industry average 1.27, this suggests that efficiency of assets use of company as well Inventories turnover: Targets Cost of goods sold (COGS) 2015 2016 Difference 2017 22,470,518,366,089 22,522,706,121,326 2016/2015 2017/2016 24,244,098,117,020 0.23% 7.64% Average inventories 3,422,053,205,546 3,783,004,088,375 3,773,244,225,842 10.55% -0.26% Inventories turnover 6.57 5.95 6.43 -9.33% 7.92% Vietnam Dairy Products JSC Inventories period Group 54.82 60.47 56.03 10.29% -7.34% Cost of goods sold increased over the years, especially in 2017 increased to 7.64% compared to 2016, leading to an increase in average inventories Despite the fluctuation of inventories turnover index, it is still in a reasonable and stable level, consistent with the inventory management policy of the Company The company does not allow any significant slowdown in inventory Customer accounts receivable turnover Targets 2015.00 2016.00 Difference 2017.00 Net sales VAT 37,913,499,514,763 43,809,126,381,210 47,506,683,942,486 204,127,132,111 245,031,363,448 375,861,148,168 2016/2015 2017/2016 15.55% 7.78% -96.20% 97.23% Average Customer accounts receivable 2,526,218,506,831 Customer accounts receivable turnover 15.09 16.656 13.80 10.377% -17.15% Account receivable period 23.86 21.613 26.08 -9.42% 20.67% 2,644,915,302,990 3,469,306,220,998 The customer accounts receivable turnover of 2017 is 13.8, in 2016 it is 16.656 The number of customer receivables receivable in 2017 is lower than in 2016, proving that the company's debt recovery rate in the year is slower than in 2016, this is generally not good The reason is that the growth rate of revenue (7.78%) is lower than the growth rate of the average customer accounts receivable from customers (97.23%) in 2017 compared to 2016 Since mid-November 2017, the company debt policy changes for domestic customers Accordingly, customer payment time is increased to support better sales This change has increased the customer accounts receivable and reduced the customer accounts receivable turnover The company considers this policy change to have a positive impact on the company and its receivables policies are effectively managed, creating a certain competitive advantage in the domestic market Vietnam Dairy Products JSC Group Account payable turnover Figures COGS 2015 2016 22.470.518.366.089 22.522.706.121.326 The beginning account payable 1.647.920.447.124 2.118.962.866.700 The endning 2.118.962.866.700 2.568.934.375.909 account payable The average account payable 1.883.441.656.912 2.343.948.621.305 Account payable 11,93 9,61 turnover Account payable turnover decreases over years 2017 24.244.098.117.020 2.568.934.375.909 3.608.952.910.564 3.088.943.643.237 7,85  The company is appropriating the seller's capital The account receivables turnover is quite good and larger than the account payables turnover  The company is appropriating the capital of sellers rather than being appropriated by customers This means that the company's short-term solvency is good, earning customers' money before having to pay suppliers The company is able to secure money for production and payment for sellers Vietnam Dairy Products JSC Group Return on sales (ROS) % change Figures 2015 2016 2017 Profit before tax 9,245,534,638,5 33 11,066,936,634, 605 12,496,851,735, 222 Total sales and revenu es 38,796,950,031, 012 44,848,115,301, 649 Return on sales 24% 25% 2016/2015 2017/20 16 19.70% 12.92% 48,943,156,735, 159 15.60% 9.13% 26% 2.82% 5.36% Over the years, the ROS index has increased due to the increase in revenue and profit before tax over the years, in which the profit before tax increased a lot of revenue The company's revenue in 2017 increased significantly over years from 38,796,950,031,012 to 48,943,156,735,159 It can be seen that this significant change is due to the company changing sales policy resulting in a change in ROE index, every 100 dong of revenue, 26 dong profits will be generated in 2017 Return on assets (ROA) % change Figures 2015 2016 2017 Profit before tax 9,245,534,638,533 11,066,936,634,605 12,496,851,735,222 Average total assets 25,245,581,143,456 27,065,876,119,211 30,316,388,841,232 ROA 36.62% 40.89% 41.22% 2016/2015 2017/2016 19.70% 12.92% 7.21% 12.01% 4.27% 0.33% Vinamilk's return on assets increased gradually over the years in the period of 2015-2017, every 100 dong of assets, 41.26 dong profits will be generated in 2017 Despite a positive change, the rate of increase has decreased over the years from 4.27% to 0.33% The reason for this decline is that the growth rate of pre-tax profit is significantly lower than the average growth rate of total assets 10 Vietnam Dairy Products JSC Group Since ROA is affected by interest, so that comparisons are more accurate, we make RE comparisons The table below shows the economic return on assets (RE): Figures 2015 2016 2017 Total accounting profit before tax 9,245,534,638,533 11,066,936,634,605 12,496,851,735,222 Loan interest expenses 13,936,351,072 29,633,689,355 12,869,222,222 9,259,470,989,605 11,096,570,323,960 12,509,720,957,444 25,245,581,143,456 27,065,876,119,211 30,316,388,841,232 36.68% 41.00% 41.26% EBIT Average total assets RE After deducting interest, it can be seen that the profitability ratio of the company's assets is still high, indicating that the company is still profitable Return on equity (ROE) % change Figures 2015 2016 2017 2016/2015 Profit tax after Average shareholder equity ROE 7.677.375.711.774 9.245.370.494.638 10.545.161.872.454 19.903.327.166.750 21.075.862.254.035 22.545.145.341.985 38,57% 43,87% 46,77% 2017/201 20,42% 14,06% 5,89% 6,97% 5,29% 2,91% ROE increased sharply over the years, from 38.57% in 2015 to 43.87% in 2016 and continued in 2017 to 46.77% Therefore, it can be seen that enterprises have efficiently used their capital and the resources brought to shareholders are increasing The financial performance of the business also increased DuPont Analysis and factors affect ROE: 11 Vietnam Dairy Products JSC Group ROE is nearly twice as high as the industry average, in which the business performance of the company is nearly twice as high as that of the industry due to a significant increase in ROS compared to the industry ROS is 26% is a huge profit / Sales ratio shows that the company is doing well and tends to dominate the market Asset turnover of 1.6 is a little higher than the industry average; it is effective to use the company's assets in production and business activities In which inventories turnover approximates the industry average, the ability to manage goods is relatively good while the company's debt recovery rate is slightly lower than the industry average because the company is changing its selling policy Therefore, asset turnover increased due to fixed asset turnover likely higher than the industry average The debt ratio of the company is double that of the industry average, showing that the company is using less debt instruments to finance its assets This has the positive side of the ability to financial autonomy and the ability to borrow a high debt of the company, 12 Vietnam Dairy Products JSC Group however, the downside is that the company does not take advantage of financial leverage and lose the opportunity tax from the use of debt With RE is 41.26% compared to loan interest rate that is less than 10%, the company should use more debt to amplify ROE Conclusion: In order to increase ROE efficiency, the company often focuses on increasing the efficiency of asset use to generate revenue (asset turnover) and ROS Asset turnover decreased slightly but this ratio is still higher than the average industry However, thanks to the cost control, ROS increased sharply compared with to the industry which helped ROE rise dramatically The company maintains the use of leverage at a safe level, hardly use loan capital From focuses on to high safety, the company pushed the tax burdens rise VI Analyzing financial risks and business risks in financing options: ROE=(RE+(RE-i)*D/E)*(1-T) RE 4% 6% 8% 10% 12% Option 3.20% 4.80% 6.40% 8.00% 9.60% Option 0.00% 3.20% 6.40% 9.60% 12.80% Option -9.60% -1.60% 6.40% 14.40% 22.40% In case of RE = i, (RE-i) * D/ E=0 leads to capital structure without affecting ROE In case of RE> i, the financial leverage will affect the ROE amplification so in the case of RE = 10, 12%, option will be the optimal option In case of RE Vinamilk was using liabilities to finance the assets Liabilities to shareholder's equity ratio is less than 1, the company used debt less than equity to finance assets => the financial autonomy ang the ability to borrow capital of Vinamilk are high, however, the company didn’t take advantage of financial leveage and lost opportunities for saving tax from using debt The interest coverage ratio (ICR) is a measure of a company's ability to meet its interest payments In 2017, ICR of the company is 972.02, being more than double 2016 This means that the ability to pay interest amount is very well because every dollar in interest expense, the company has $972.02 from profitable operation to pay The interest payable can make the income tax decrease but the dividends per share don’t Because the company using debt instrument is responsible for pay a stable interest expense It makes financial cost be limited and creates situation which the financial leverage of the company is used effectively VIII Change depreciation method: Regarding discount cash flow method, firm’s value is determined by the present value of the free cashflow in future This cash flow is determined by the formula: FCFF = EBIT x (1 - Tax Rate) + Depreciation of fixed assets – Capital Expenditure – Changes in Net Working Capital Because Depreciation is these expense as a tax deduction on Income Statement but it differs with other expenses in that it is not an expenditure The cashflow from operation activities will higher than net profit from depreciation If the company change the depreciation method, in the earlier years, the amount of depreciation under the doubledeclining-balance method will be significant greater than the amount under straight-line method  The free cashflow in future will increase  The firm’s value increase 16 Vietnam Dairy Products JSC Group As the declining balance method is only suitable to enterprises operate in easily obsolete technology fields which it has the fixed assets changing quickly On the other hand, Vinamilk is manufacturing companies; the machines and equipment, that Vinamilk uses, have the relatively long estimated useful life:  Tangible fixed assets: 5-50 years  Intangible fixed assets: over years Vinamilk should not change from the straight-line method to the double-decliningbalance method IX Evaluate the performance of enterprises through EVA: (Unit: 1.000.000d) Figures Amount EBIT 12,509,721 Total owner’s equity 32,509,573 Interest rate of WACC Weight average cost of capital (WACC) =(2)x(3) 3,738,001 EVA = (1)-(4) 8,771,720 EVA/ Total owner’s equity (%)=(5)/(2) 27% ROI (%)=(1)/(2) 38% 11.50% Net profit of the company in 2017 is about VND 10,545,161 million while EVA is 8,771,720 It confirms that in 2017, Vinamilk not only has profit but also creates and increases the additional value for shareholders The additional value is 8,771,720, equivalent with 70,12% This shows that profit can cover the loan interest and gain the expected rate of return of shareholders However, like the other measurement, EVA has still restriction for using mainly the accounts on the accrual basic to measure business income instead of using the accounts on the cash basic In order to overcome this weakness, when calculating the EVA measurement, the company have to adjust some accounting information to improve this indicator's usefulness Adjusting: Index Invested capital ( Balance Sheet) Invested capital (TC) (NOPAT) 32,509,573 17 Vietnam Dairy Products JSC Group 11,530,566 NOPAT 10,772,970 Subtract the indexes not Invested capital 3,523,643 The funds: the reward and welfare funds 674,169 The Investment Funds 2,849,474 Interest-free loans 7,249,327 Accounts payable 3,608,952 Deferred revenue 58,920 Taxes and other payables to the State budge 375,861 Payables to employees 173,777 Short-term Unearned Revenue 7,344 Long-term Unearned Revenue 1,039 Other Short-term liabilities 3,023,434 Total R&D cost Operating Lease The allowances: Short-term provisions 985,405 989,661 - - 4,400 4,400 125,555 125,555 603 long-term provisions 603 100,654 100,654 Provision for bad debts 4,159 4,159 Provision for devaluation of stocks 4,814 4,814 15,325 15,325 The accural expenses: 855,450 855,450 The short-term accural expenses 425,525 425,525 The long-term accural expenses 429,925 429,925 allowances for long-term investments 4,256 Deferred income tax assets 21,736,603 Invested capital after adjusting 10,540,905 NOPAT after adjusting Figures Amount EBIT after adjusting 10,540,905 Total owner’s equity after adjusting 21,736,603 18 Vietnam Dairy Products JSC Group Interest rate of WACC 11.50% Weight average cost of capital (WACC) =(2)x(3) 2,499,709 EVA = (1)-(4) 8,041,195 EVA/ Total owner’s equity after adjusting (%)=(5)/(2) 37% ROI (%)=(1)/(2) 48% With the above calculation results, after adjusting the accounting data to reduce the difference due to the accounting method of accounting, the added economic value of the company in 2017 is about 8,041,195,000,000 shows that the company still ensures to create real value for shareholders as well as the true value of the business is at a high level X Conclusion: Continue to manage the key costs (cost of good sold, selling expense), investing in technology => Increases in labour productivity, management capacity Continue to keep the account receivable turnover higher than the account payable => take the initiative to manage cash and liquidity Continue to maintain to manage the inventory turnover => Minimize power cuts in costs, reduce the damaged goods You can use higher debt ratios to increase business efficiency, use more debt instrument to relieve the tax burden 19 Vietnam Dairy Products JSC Group REFERENCES Separate financial statement of Vietnam Dairy Products JSC in 2015, 2016, 2017 Annual report of Vietnam Dairy Products JSC in 2015,2016,2017 General information of the industry at https://vn.investing.com/equities/vietnamdairy-products-jsc-ratios Slides of Associate Professor Đon Ngọc Phi Anh - lecturer in Accounting Faculty in Danang university of Economics Vietnam Dairy Products JSC Group EVALUATION No Full name Contribution Lê Thị Thuý Hằng 25% Phạm Hà Lan Chi 25% Hồ Thị Thuý Hà 25% Hong Thị Yn Nhi 25% Total 100% Signature Notes ... tax burden 19 Vietnam Dairy Products JSC Group REFERENCES Separate financial statement of Vietnam Dairy Products JSC in 2015, 2016, 2017 Annual report of Vietnam Dairy Products JSC in 2015,2016,2017... 19 Vietnam Dairy Products JSC Group I General information: Vinamilk (Vietnam Dairy Products JSC) is the largest dairy company in Vietnam Based on the UNDP 2007 Top 200 largest firms in Vietnam. .. https://vn.investing.com/equities/vietnamdairy -products- jsc- ratios Slides of Associate Professor Đon Ngọc Phi Anh - lecturer in Accounting Faculty in Danang university of Economics Vietnam Dairy Products JSC Group