I wish to express my genuine thanks and gratefulness to the Academy Of Finance and Advanced Educational Programs for granting me this exceptional opportunity to be an intern at Hanoi telecoms electricity jointstock company. I sincerely respect and appreciate the hard work of Mr. Vu Van Ninh, my Academic Supervisor. Without his thoughtful direction and admirable patience, this work would have never been an accomplishment. In each period, his supervision and support helped this Graduation Thesis to be finished effectively. I also want to acknowledge with much appreciation the important role of the staff of Hanoi telecoms electricity jointstock company, especially Mrs. Vu Thi Xuan Hoa – Chief of Financial – Accounting Department who allowed me to utilize every single fundamental record and materials to finish this report. Without their support during the internship period, it would be impossible for me to finish this work.
ACADEMY OF FINANCE Major Corporate Finance FULL NAME: NGUYỄN QUỲNH ANH CLASS: CQ54/11CL.01 GRADUATION THESIS TOPIC: “FINANCIAL PERFORMANCE - A CASE STUDY OF HANOI TELECOMS ELECTRICITY JOINT STOCK COMPANY” Specialized : Business finance Student code : 16CL3402010005 Instructor : Associate Professor.Dr Vũ Văn Ninh Hanoi – 2020 Graduation Thesis i Academy of Finance ACKNOWLEDGMENTS I wish to express my genuine thanks and gratefulness to the Academy Of Finance and Advanced Educational Programs for granting me this exceptional opportunity to be an intern at Hanoi telecoms electricity jointstock company I sincerely respect and appreciate the hard work of Mr Vu Van Ninh, my Academic Supervisor Without his thoughtful direction and admirable patience, this work would have never been an accomplishment In each period, his supervision and support helped this Graduation Thesis to be finished effectively I also want to acknowledge with much appreciation the important role of the staff of Hanoi telecoms electricity joint-stock company, especially Mrs Vu Thi Xuan Hoa – Chief of Financial – Accounting Department - who allowed me to utilize every single fundamental record and materials to finish this report Without their support during the internship period, it would be impossible for me to finish this work Nguyễn Quỳnh Anh Class: CQ54/11CL.01 Graduation Thesis ii Academy of Finance PLEDGE I assure you that this is my own research project, the data and results stated in the graduation thesis are honest and come from the practical situation of the intern The author Nguyễn Quỳnh Anh Nguyễn Quỳnh Anh Class: CQ54/11CL.01 Graduation Thesis iii Academy of Finance APPENDIX ACKNOWLEDGMENTS i PLEDGE ii APPENDIX iii LIST OF ABBREVIATIONS vi LIST OF TABLES vii LIST OF CHARTS viii PREFACE .1 CHAPTER 1: OVERVIEW OF FINANCIAL SITUATION OF COMPANY 1.1 Corporate finance and corporate finance decisions 1.1.1 Business finance concept and business finance relationships 1.1.1.1 Business finance concept .4 1.1.1.2 Business finance relationships .5 1.1.2 The financial decisions of the business 1.2 Enterprise Financial Management 1.2.1 Business financial management concept 1.2.2 The role of corporate finance management 1.2.3 Content corporate finance management .10 1.2.4 Corporate value and goals of corporate financial governance 11 1.2.4.1 Corporate value 11 1.2.4.2 Goals of corporate financial governance 13 1.3 Financial situation of the business 13 1.3.1 Concept of corporate financial situation .13 1.3.2 Content and criteria reflect the situation of the business 14 1.3.2.1 Capital situation of the business 14 1.3.2.2 The situation of capital allocation of enterprises 16 Nguyễn Quỳnh Anh Class: CQ54/11CL.01 Graduation Thesis iv Academy of Finance 1.3.2.3 Business performance of the enterprise .17 1.3.2.4 Cash flow situation of the business 18 1.3.2.5 The situation of debt and solvency of the business 22 1.3.2.6 Situation of performance and efficiency of business operations of the enterprise 26 1.4 Factors affecting the financial analysis of the business 30 1.4.1 Objective factor 31 1.4.2 Subjective factor 32 CHAPTER 2: CURENT FNANCIAL SITUATION OF HANOI TELECOMS ELECTRICITY JOINT STOCK COMPANY 33 2.1 The process of formation and development of Hanoi telecoms electricity joint stock company 33 2.1.1 Establishment and development process 33 2.1.1.1 Basic information about the company 33 2.1.1.2 History of formation and development 34 2.1.2 Operating characteristics 35 2.1.2.1 Business lines and areas .35 2.1.2.2 Business characteristics of the company 35 2.1.2.3 Overview of financial performance of Hanoi telecoms electricity joint stock company 40 2.2 Current financial situation of Hanoi telecoms electricity joint stock company .41 2.2.1 Assets and Asset Structure 41 2.2.2 Sources of Capital and Capital Structure 42 2.2.3 Business results 45 2.2.4 Cash flows 48 2.2.5 Liquidity .50 Nguyễn Quỳnh Anh Class: CQ54/11CL.01 Graduation Thesis v Academy of Finance 2.2.6 Asset utilization efficiency and Profitability 52 2.3 Assessment of the financial situation of Hanoi telecoms electricity joint stock company 59 2.3.1 Achievements .59 2.3.2 Shortcomings and reasons 61 CHAPTER 3: SOLUTIONS TO IMPROVE THE FINANCIAL SITUATION OF HANOI TELECOMS ELECTRICITY JOINT STOCK COMPANY 63 3.1 Objectives and targeted performance of Hanoi telecoms electricity joint 63 3.1.1 Socio-economic situation 63 3.1.2 The targeted performance of Hanoi telecoms electricity joint stock company 65 3.2 Solutions to improve the financial situation of Hanoi telecoms electricity joint stock company 66 3.3 Conditions needed for implementing the solutions 69 CONCLUSION .72 REFERENCES 73 Nguyễn Quỳnh Anh Class: CQ54/11CL.01 Graduation Thesis vi Academy of Finance LIST OF ABBREVIATIONS ADI: Average days in inventory ADP: Average days in payables ADR: Average days in receivables BEP: Basic earning power COGS: Cost of good sold DSI: Days sales in inventory DSO: Days sales outstanding HATEC: Hanoi telecoms electricity joint stock company ROA: Return on assets ROE: Return on equity ROS: Return on sales Nguyễn Quỳnh Anh Class: CQ54/11CL.01 Graduation Thesis vii Academy of Finance LIST OF TABLES Table 2.2.2: Capital fluctuation situation 43 Table 2.2.3 Business results of the company .46 Table 2.2.5 The liquidity ratios 50 Table 2.2.6.1 DSI 52 Table 2.2.6.2 Working capital 55 Nguyễn Quỳnh Anh Class: CQ54/11CL.01 Graduation Thesis viii Academy of Finance LIST OF CHARTS Chart 2.2.1 The asset structure ratios 41 Chart 2.2.4 The criteria in business cash flow management 48 Chart 2.2.6.1 Inventory turnover 53 Chart 2.2.6.2 Receivable turnover 54 Chart 2.2.6.3 Fixed assets turnover 56 Chart 2.2.6.5 Profitability ratios 58 Nguyễn Quỳnh Anh Class: CQ54/11CL.01 Graduation Thesis Academy of Finance PREFACE Introduction With the development of the country in the last decade, along with the growing trend of globalization and business both at home and abroad, it has had a great and profound impact on Vietnam's market economy Nam, especially in management, capital mobilization and capital utilization Most effective on respect of financial, credit and law enforcement principles So businesses compete with each other extremely fierce and must constantly change to survive and develop sustainably and have a foothold in the market Along with the plans and intentions set for the development of the business will also face the risks and limitations in it Financial situation analysis is also an information tool for administrators, investors, etc Each object is interested in the financial situation of businesses through many different angles to management and investment Therefore, in order for businesses to achieve the desired effect, analyzing the financial situation will help businesses to clearly see the current financial situation, find out the cause and the degree of influence of the factors affecting the situation financial picture From there, there is an effective solution to stabilize and develop the financial situation Hanoi telecoms electricity joint stock company (HATEC) was established in 2004, the company has been operating for more than 15 years and created a great reputation in the domestic telecommunications industry The regular analysis of the financial situation will help business managers see the status of financial activities, which can identify the strengths and weaknesses of the business as a basis for proper operation with the economy in the future and propose optimal solutions to improve the financial situation of the business Although the accounting system is relatively complete, the Nguyễn Quỳnh Anh Class: CQ54/11CL.01 ... insight More about the importance of financial situation in the company Aware of that, I chose the topic: ? ?Financial performance: a case study of Hanoi telecoms electricity joint stock company? ?? Objectives... Chapter 2: Curent financial situation of Hanoi telecoms electricity joint stock company Chapter 3: Solutions to improve the financial situation of Hanoi telecoms electricity joint stock company. .. process At the same time, financial analysis is also an indispensable tool in the management of superior agencies, financial agencies and banks to assess the state of the state''s policies, capital