THE UNIVERSITY OF DANANG UNIVERSITY OF ECONOMICS ANALYSIS OF THE COMPANY''''S FINANCIAL SITUATION VIETNAM DAIRY JOINT STOCK COMPANY (VINAMILK) Group 7 Phan Thị Hương Trâm Đoàn Nguyên Minh Tâm Nguyễn Thị[.]
THE UNIVERSITY OF DANANG UNIVERSITY OF ECONOMICS - - ANALYSIS OF THE COMPANY'S FINANCIAL SITUATION VIETNAM DAIRY JOINT STOCK COMPANY (VINAMILK) Group Phan Thị Hương Trâm Đoàn Nguyên Minh Tâm Nguyễn Thị Kim Ngân Lê Thị Bảo Ngọc Vy Bảo Ngọc Lecturer: Nguyễn Quang Minh Nhi Evaluate the contribution level of members Evaluation (Working Member Task attitude, Participation, Contributions, etc ) Nguyen Thi Kim Ngan - Present industry characteristics, company position, direct competitors - Actively participate in group activities - Complete assigned work on time - Analyze financial ratios - Actively work, ask about work progress - Calculate the company's average dividend growth rate over the past years Le Thi Bao Ngoc - Present industry characteristics, company position, direct competitors - Participate in good group activities - Always give your opinion - Analyze financial ratios - Actively check the progress, promote the - Closing price earnings of that company's stock in 2020 Vy Bao Ngoc Doan Nguyen Minh Tam Evaluation by group (max 100%) 100% 100% work of individuals and the whole team - Compare industry averages or direct competitors - Comment on financial - Complete assigned tasks on time - Participate in group activities and work ratios enthusiastically - Actively contribute to the group's activity ideas - Propose reasons for the changing trends of financial ratios over the years - Complete assigned tasks on time - Participate in group activities and work - Conclusion of the company's financial enthusiastically - Actively contribute to 100% 100% situation the group's activity ideas Phan Thi Huong Tram - Compare industry averages or direct competitors - Comment on financial - Complete assigned tasks on time - Participate in group activities and work ratios enthusiastically - Actively contribute to the group's activity ideas 100% Table of Contents I Overview of Vinamilk Joint Stock Company II Analyze financial ratios Liquidity ratios a) Current ratio b) Quick ratio Capital structure ratios a) Total debt ratio b) Equity multiplier .9 Turnover ratios a) Inventory turnover b) Fixed assets turnover 10 c) Total asset turnover 12 Profitability ratios 13 a) Net profit margin 13 b) ROA 14 c) ROI 14 d) ROE 15 Market value ratios 15 a) EPS 15 b) P/E 16 c) Market-to-book ratio 17 III Compare with other companies in the same industry 17 Liquidity ratios 17 Turnover ratios 18 Market value ratios 18 IV Conclusion of financial situation 19 I Overview of Vinamilk Joint Stock Company ❖ Business name: Vietnam Dairy Products Joint Stock Company (Vinamilk) ❖ International trading name: Vietnam Dairy Products Joint Stock Company ❖ Short name: VNM ❖ Established: August 20, 1976 ❖ Position: Vinamilk Joint Stock Company (VNM) is one of the leading dairy production and trading enterprises in Vietnam In 2022, Brand Finance - the world's leading British brand valuation company has announced the list of Top 50 most valuable brands in Vietnam Vinamilk continues to be the most valuable food brand in Vietnam according to this ranking At the same time, Vinamilk was also honored to receive the title of "The 6th largest dairy brand in the world" In the 2022 Global Food and Beverage Industry Report published by Brand Finance, the Vinamilk brand has shown its position as the only representative from Southeast Asia in the Top 10 most valuable dairy brands globally (6th place) ) and Top strongest milk brands globally (2nd place) Although it has achieved great brand value, Vinamilk's development potential is still highly appreciated when it becomes the most potential global dairy brand in 2022 ❖ Type: Joint Stock Company ❖ Charter capital: 20,899.554,450,000 VND ❖ Head office: 10 Tan Trao, Tan Phu Ward, District 7, Ho Chi Minh City, Vietnam ❖ Key employees: Nguyen Hanh Phuc - Chairman of the Board of Directors, Mai Kieu Lien - General Director ❖ Competitors: Due to the diversified product portfolio, each product segment of Vinamilk will have a certain competitor Up to now, the direct competitors to Vinamilk are: Dutch Lady, TH True Milk, Nutifood In addition to strong competitors such as Dutch Lady, TH true Milk, Nutifood Vinamilk's competitors also include Nestle, Abbout USA, International Dairy Joint Stock Company (IDP), Frieslandcampina, Mead Johnson These firms all have good capabilities marketing and product research and development Therefore, there is always a risk of competition with Vinamilk ❖ The main products: Vinamilk liquid milk, Vinamilk yogurt, Ong Tho and Phuong Nam Star condensed milk, Dielac powdered milk, Vfresh fruit juice II Analyze financial ratios Liquidity ratios a) Current ratio 2017 2018 2019 2020 2021 Current 19.002.943.395 18.505.885.806 19.828.855.240 23.931.776.664 29.091.665.553 assets 528 390 231 071 974 Current 9.111.522.890 9.011.802.452 12.870.779.480 12.911.012.291 15.812.637.654 liabilitie 254 031 737 043 901 s Invento 3.447.759.303 4.531.768.842 3.876.560.751 3.856.553.157 5.504.479.715 ry Current 261 734 360 650 927 2,086 2,054 1,541 1,854 1,840 ratio It can be seen that, in 2017 and 2018, the company's Current ratio reached above However, starting in 2019, this ratio tends to decrease sharply to 1.5 in 2019 and increase again again in 2020 and 2021 Despite many fluctuations, the coefficients in each year are always greater than It means that the business can guarantee to pay its debts with short-term assets, the financial situation is assessed as good The reason for the sudden change in 2019 was that Vinamilk's short-term loans in 2019 increased more than times in 2018, while current assets increased insignificantly Specifically, at the end of 2019, parent company Vinamilk is taking short-term loans of more than 4,800 billion VND, many times higher than the figure of more than 700 billion VND at the beginning of the year Vinamilk said these loans are secured by tangible fixed assets and inventory It can be said that Vinamilk is promoting the use of debt instruments to finance corporate assets in order to enjoy the benefits of financial leverage In 2020, 2021 VNM will continue to increase short-term debt, but at the same time increase the value of short-term assets to a high level, causing the current ratio to increase again The reason for the change is that enterprises promote short-term assets through short-term financial investments Investing in this short-term asset can help a business earn a return that helps offset the interest costs of its debts b) Quick ratio 2017 Current assets Current liabilities 2018 2019 2020 2021 19.002.943.39 18.505.885.80 19.828.855.24 23.931.776.66 29.091.665.55 5.528 6.390 0.231 4.071 3.974 9.111.522.890 9.011.802.452 12.870.779.48 12.911.012.29 15.812.637.65 254 031 0.737 1.043 4.901 Inventory 3.447.759.303 4.531.768.842 3.876.560.751 3.856.553.157 5.504.479.715 Quick 261 734 360 650 927 1,707 1,551 1,239 1,555 1,492 ratio It can be seen that Vinamilk's quick ratio decreased gradually in the first years, from 1.7 to 1.2 After that, the company's ratio increased again in 2020 and 2021 However, in general, Vinamilk's quick ratio in all years is greater than 1, showing that the company has enough financial resources liquid assets to pay short-term and highly liquid liabilities It can be seen that the ratio of inventory in short-term assets is not too large and inventories between years are not fluctuated strongly, so the change of quick ratio is also similar with the current ratio by the impact of the other two factors, which are current assets and current liabilities Those are also the causes of Vinamilk's quick ratio change bổ sung thêm quick ratio để giải thích cho dễ hiểu Capital structure ratios a) Total debt ratio 2017 32.509.573.3 37.670 23.296.356.6 00.948 9.213.216.73 6.722 0,283 Total assests Total equity Total debt Total debt ratio 2018 34.317.285 376.581 25.305.067 076.332 9.012.218 300.249 0,263 2019 39.415.110.6 95.231 26.544.331.2 14.494 12.870.779.4 80.737 0,327 2020 43.016.376.910 393 30.105.364.619 350 12.911.012.291 043 0,300 2021 47.813.425.086 580 32.000.787.431 679 15.812.637.654 901 0,331 There are many fluctuations in the overall debt ratio, but in general, this ratio of Vinamilk increased in the period from 2017 to 2021 (from 28% to 33% over the past five years) This shows that VNM has an increasing tendency to use debt as a source of capital A high debt ratio represents a large debt burden, which can lead to insolvency However, if it can make good use of the debt instrument, the company can take advantage of financial leverage and have the opportunity to save the tax in order to increase net income Cause: In 2018, the overall debt ratio decreased because total liabilities did not change too much, but total assets increased, causing the ratio to change In 2018, tangible fixed assets increased by 27%, from VND 6,491 billion to VND 8,585 billion The added value mainly comes from the main activities of investing in machinery and equipment to increase production capacity and develop dairy farms on an industrial scale according to the business strategy until 2021 (annual report 2018) In 2019, although total assets and total liabilities both increased, we can see that the growth of total liabilities is higher than that of total assets (total debt increased by 43%; total assets increased by 15%), which causes chỗ ni ngnhan c nợ ngắn hạn the overall debt ratio to increase The increase in the use of debt instruments to finance chỗ ni ngnhan ts dài h ạn assets in 2019 was explained earlier The reason for the increase in total assets intr2019ước rwồasimới nói in order tontake advantage of financial that the company focused on refinancing investments for subsidiaries In 2020, the overall leverage nên nói s ự tăng s ự tăng cao nên ch ỉ số giảm debt ratio will decrease due to the increase in total assets from businesses promoting short-term financial investments In 2021, we can see that the growth of total debt is higher than that of total assets (total debt increases by 23%; total assets increases by 9%), which causes the overall debt ratio to short-term debt increase The company has exploited long-term economic relationships with financial institutions to take advantage of financial leverage (Annual report 2021) b) Equity multiplier Total 2017 2018 2019 2020 2021 32.509.573.3 34.317.285.3 39.415.110.6 43.016.376.9 47.813.425.0 assests Total 37.670 23.296.356.6 76.581 25.305.067.0 95.231 26.544.331.2 10.393 30.105.364.6 86.580 32.000.787.4 equity 00.948 76.332 14.494 19.350 31.679 Equity 1,395 1,356 1,485 1,429 1,494 multip lier Equity multiplier of VNM fluctuates between 2017-2021 but in general this figure to increase and it reaches the highgest level at 1,494 in 2021, the equity multiplier over the years is still less than 2, which means that the company's assets are financed more by equity However, the change of the coefficient over the years shows that the financial autonomy of enterprises in 2021 is much lower than in 2017 It can be seen that enterprises are trying to promote the use of leverage finance The cause of the change is similar to the general debt ratio Turnover ratios a) Inventory turnover 2017 2018 2019 2020 2021 24.244.098.1 23.675.568.9 25.736.367.9 26.120.319.2 27.773.728.0 goods sold 17.020 49.025 36.729 80.754 42.223 Inventory 3.447.759.30 4.531.768.84 3.876.560.75 3.856.553.15 5.504.479.71 3.261 2.734 1.360 7.650 5.927 7.032 5.224 6.639 6.773 5.046 Cost of Inventory turnover The inventory turnover ratio of Vietnam Dairy Products Joint Stock Company in the past years has always fluctuated In 2017, the inventory turnover ratio was at the highest level of 7,032 but in 2018 it suddenly dropped sharply to 5,224 In 2019 and 2020, the inventory turnover ratio increased to 6.639 and 6,773 and in 2021 it decreased to 5,046 From 20172021, despite many fluctuations, the inventory turnover rate has always remained from to 7, not too high or too low, thus ensuring the level of production to meet demand The number of turnover increases and decreases continuously rather than completely decreasing over the years, this is a sign that the business does not have too many risks To make it easier to understand, we can consider the inventory turnaround time index, from 2017-2021 the index ranges from 54 to 62 days, showing that inventory is only stored for months, after New goods will be imported every month Cause: General influence from fluctuations in all aspects of the world economy, resonance with the shift and change in habits consumer, FMCG industry in 2018 did not grow as expected In 2018, with the consumer trend showing signs of slowing down, this led to a decrease in VNM's revenue and at the same time reduced the cost of goods sold In addition, the inventory turnover index decreased compared to 2017 due to the increase in inventory at the end of the year to prepare for the production plan in 2019 (annual report 2018) In 2019, although the global economy is going down, Vietnam at the moment achieved a stable growth rate, causing the retail industry in general and the dairy industry in particular to record good growth Besides, with the consumption trend from delicious to healthy eating, VNM achieved better revenue growth with some key products At the same time, VNM's strategy of premiumizing the product portfolio has achieved certain achievements With this situation, Vinamilk's revenue has grown more than in 2018, and at the same time made the cost of goods sold increase Along with that, the decrease in inventory ratio caused a sudden increase in the inventory turnover index in 2019 Despite the impact of the Covid 19 pandemic, VNM's revenue in 2020 and 2021 still increased stable growth However, compared to revenue growth, COGS growth was higher due to higher input material prices due to the impact of supply chain disruptions And with the reduced inventory policy in 2021, there has been a sharp drop in inventory turnover b) Fixed assets turnover doanh thu 2021 tăng lên có th ể 10giá thành s ản phẩm tăng lên, nguyên nhân nguyên li ệu đầu vào t ăng giá b ởi ảnh hưởng gián đoạn chuỗi cung ứng Gía thành sp tăng lên có th ể khiến cho khách hàng tiêu dùng h ơn, có th ể lý mà l ượng hàng t ồn kho l ớn Dẫn đến việc vòng quay hàng t ồn kho giảm đột ngột năm 2021 Sales Fixed assets Fixed asset 2017 2018 2019 2020 2021 47.458.779 46.893.210 50.771.510 51.531.992 51.966.817.7 619.504 033.874 534.450 143.718 11.789 6.578.193.5 8.667.870.6 8.729.549.3 7.638.105.0 6.616.862.18 61.054 41.168 47.732 02.753 2.899 7,215 5,410 5,816 6,747 7,854 turnover In 2017, fixed asset turnover's ratio of Vinamilk reached 7,674, the highest level in the past years Through that index, we can see that in 2017, company had effectively used investments in fixed assets to generate sales In the next years, VNM's ratio had decreased to 5,837 from 2017 to 2019 but then rose again to 7,291 in 2021 In 2019, having this ratio lower shows that Vinamilk is not currently using up all its assets their own to the maximum However, in the following two years, VNM started to improve its index Cause: In 2018, fixed asset turnover's ratio dropped sharply, due to Vinamilk's revenue plummeted in 2018 (the reason was explained above) and fixed assets increased sharply by 32% The added value mainly comes from the main activities of investing in machinery and equipment to increase production capacity and developing dairy farms on an industrial scale according to the business strategy until 2021 The gradual increase in fixed asset turnover is due to VNM's revenue increasing over the years combined with VNM's gradual decrease in investment in fixed assets determined VNM's reduction in investment in fixed assets may be due to the fact that during this period, the enterprise wants to evaluate the effectiveness of its business model by examining the efficiency of its investment in fixed assets intended to generate revenue 11 c) Total asset turnover 2017 2018 2019 2020 2021 47.458.779.6 46.893.210.0 50.771.510.5 51.531.992.1 51.966.817.7 19.504 33.874 34.450 43.718 11.789 Total 32.509.573.3 34.317.285.3 39.415.110.6 43.016.376.9 47.813.425.0 assets 37.670 76.581 95.231 10.393 86.580 Total asset 1,460 1,366 1,288 1,198 1,087 Sales turnover Total asset turnover of VNM is higher than 1, which means that Vinamilk's revenue generated is greater than the total assets it invests However, from statistics, we see that the company's efficiency of using total assets over the years is on a decreasing trend (from 1,565 to 1,144 in 2021) Although net income and total assets also tend to increase over the years, the plans for procurement and investment in assets have not been as effective as expected to generate revenue and cash flow for the business Cause: Total asset turnover dropped sharply in 2018 due to the decrease in annual revenue of the business this year due to the declining trend of consumption, combined with the sharp increase in total assets due to the increase in investment in fixed assets , however, because the factory has just come into operation, the operating capacity is not at its maximum In 2019, the company's revenue and total asset investment both increased strongly, so this coefficient did not change too much However, two years later, the Covid pandemic made it impossible for revenue to increase sharply, and at the same time, the business continued to promote investment from short-term assets to take advantage of financial leverage, making the efficiency of the business more efficient Asset use of enterprises decreased sharply in the two years 2020 and 2021 12 Profitability ratios a) Net profit margin Net income Sales 2017 2018 2019 2020 2021 10.545.161.8 9.814.109.82 10.085.159.9 10.728.728.1 10.426.791.8 72.454 47.458.779.6 19.504 Net profit 0,222 6.048 46.893.210.0 33.874 0,209 96.024 50.771.510.5 48.728 51.531.992.1 34.450 0,199 43.718 0,208 05.457 51.966.817.7 11.789 0,201 margin In the first years, the profit-to-sales ratio tends to decrease sharply (from 0.222 to 0.199) In the following two years, this ratio fluctuated continuously, increasing to 0.208 in 2020 and again decreasing to 0.201 in 2021 In general, with Vinamilk's net profit margin, it can be seen that the business can be seen still operating effectively and making a profit However, the decline in net profit margin over the years shows that Vinamilk is operating less efficiently and reflects the company's "financial health" and declining profitability Cause: In 2018, although revenue and net profit both decreased, the decrease in net profit was much larger than the decrease in revenue (net income decreased by 7%; sales decreased by 1%) Similar to 2019, the revenue growth was larger than the net profit growth (8%>2%) The same explanation can be given to the fluctuations of the remaining two years as above The reason for the low net profit was the high price of input materials, which caused the cost of goods sold to increase significantly in the context of broken supply chains In addition, from 2019 the revenue deductions have increased significantly because businesses want to increase the discount rates for partners to increase revenue and overcome the impact of the Covid 19 pandemic 2018 and 19: chi phí đầu vào t ăng cao dẫn đến net income giảm mạnh (cuộc chiến thương mại mỹ trung dẫn đến rủi ro biến động tỷ giá có th ể khiến giá nguyên vật liệu đầu vào t ăng cao) 2020: giá đầu vào gi ảm giá x ăng dầu giới giảm khiến giá x ăng dầu nước giảm theo khiến cpi giảm 2020 n ăm dịch bệnh xu hướng tiêu dùng c khách hàng dần trở nên lành m ạnh hơn, việc tiêu th ụ sữa cx trở nên nhi ều 13 b) ROA Net income Total assests ROA 2017 2018 2019 2020 2021 10.545.161 9.814.109.8 10.085.159 10.728.728 10.426.791 996.024 148.728 805.457 872.454 26.048 32.509.573 34.317.285 39.415.110 43.016.376 47.813.425 337.670 376.581 695.231 910.393 086.580 32,437% 28,598% 25,587% 24,941% 21,807% Overall, Vinamilk's ROA can still be considered as high rate and earned more money on less investment However, during this period, VNM's ROA tended to gradually decrease (from 32.437% to 21,807%) The total assets of the enterprise used for investment increased significantly over the years, but the profit after tax remained unchanged, which shows that the enterprise is having problems using assets, making the assets not promote out of effect Enterprises need to adjust their business plans to improve the efficiency in using assets Cause: The decline in ROA over the years is due to the fact that although the investment in assets of the enterprise increased rapidly, the growth of net profit was relatively low In 2018, the enterprise increased investment in fixed assets, and invested in short-term assets to take advantage of financial leverage in the following years, causing total assets to increase However, under the strong impact of the Covid 19 pandemic, it is difficult for businesses to use assets in the most effective way c) ROI Total assests EBIT ROI 2017 2018 2019 2020 2021 32.509.573 34.317.285 39.415.110 43.016.376 47.813.425 337.670 376.581 695.231 910.393 086.580 23.214.681 23.217.641 25.035.142 25.411.672 24.193.089 502.484 084.849 597.721 862.964 669.566 71,409% 67,656% 63,517% 14 59,074% 50,599% In general, the ROI rate of Vinamilk is relatively high, which shows the profitability of the total assets that the business invests in projects to generate profits However, it can be seen that this ratio of VNM is decreasing over the years The reason can be explained similarly with the ROA index because the change in costs (operating costs, tax costs, ) is not too large d) ROE 2017 Net 2018 2019 2020 2021 10.545.161.872 9.814.109.826 10.085.159.996 10.728.728.148 10.426.791.805 income Total 454 048 024 728 457 23.296.356.600 25.305.067.076 26.544.331.214 30.105.364.619 32.000.787.431 equity 948 332 494 350 679 ROE 45,265% 38,783% 37,994% 35,637% 32,583% In general, VNM's ROE has always been positive for the past years, which shows that the business is effectively using capital from shareholders However, similar to the above two indicators, it can be seen that this coefficient is decreasing gradually from 2017 to 2021 (from 45.265% to 32.583%) Cause: The combination of strong equity growth over the years and low net profit makes the use of equity less efficient Market value ratios a) EPS 2017 Net income outstanding 2019 10.545.161.8 9.814.109.82 10.085.159.9 72.454 Number of 2018 6.048 96.024 1.451.278.52 1.741.411.58 1.741.377.69 2020 2021 10.728.728.1 10.426.791.8 48.728 05.457 2.089.645.34 2.089.955.44 7.266 5.636 5.791 5.134 4.989 shares EPS 15 There was a noticeable decrease in 2018, from 7,266 to 5,636 and the next year, EPS grew slightly to 5,791 However, in the next two years, EPS was continuing to go down to 4,989 In general, Vinamilk's EPS is still at a stable level, greater than 1500 The continuous decline in this index in recent years may be due to Vinamilk's inefficient operations, which has led to a decrease in net profit In addition, it can be seen that equity also increased during this period, which may also be the reason for the decline in EPS in these years b) P/E Price per 2017 2018 2019 2020 2021 208600 120000 116500 108800 86400 7.266 5.636 5.791 5.134 4.989 share EPS P/E varied between 2017 and 2021 During the period from 2017 to 2019, there was a significant reduction, from 28,709 to 20,116 The P/E rose to 21,191 in the following year, but dropped to 17,318 in 2021 Overall, we can conclude that VNM is a potential company since a company with a high P/E ratio are often considered to be growth stocks It can be seen that the P/E ratio is decreasing year by year However, the reason for this index's decline is the declining EPS, besides that, the existing investors of the enterprise see that the business is operating less efficiently, so they want to sell shares to avoid suffered a loss, the supply of shares increased, causing the market value of shares to decrease, causing the P/E ratio to decrease significantly In addition, the cause may be due to the complicated epidemic situation, causing the income of some investors to decrease, they need money to spend, so they are ready to sell their current holdings 16 c) Market-to-book ratio Price per 2017 2018 2019 2020 2021 208600 120000 116500 108800 86400 16.052 14.531 15.243 14.407 15.312 12,995 8,258 7,643 5.134 4.989 share Book value per share Market-tobook ratio It can be seen that the market-to-book ratio of VNM is greater than 1, which indicates that the market's expectation about the future business prospects of the enterprise is quite good Therefore, investors are willing to pay more than book value to own shares of the company The reason for the decline of this index is similar to the P/E ratio III Compare with other companies in the same industry Liquidity ratios Current ratio Quick ratio VNM HNM VNM HNM 2017 2,086 1,257 1,707 0,702 2018 2,054 1,075 1,551 0,553 2019 1,541 1,006 1,239 0,506 2020 1,854 0,743 1,555 0,288 2021 1,840 0,810 1,492 0,324 From the data table, it can be clearly seen that Vinamilk's solvency is approximately times higher than that of Hanoi Milk In general, the company's payment ratios are always at a stable level, ensuring good ability to pay short-term debts Besides, Vinamilk mainly uses its own capital in its business activities rather than borrowed capital compared to rival companies The company's financial picture is very good and there is little risk of debt payment However, these low debt ratios are also a limitation for Vinamilk in taking advantage of financial leverage like competitors VNM's instant solvency ratio is much 17 higher than that of HNM, which shows that Vinamilk has higher liquidity than rival companies Turnover ratios Total debt ratio Debt/equity ratio Equity multiplier VNM HNM VNM HNM VNM HNM 2017 0,283 0,587 0,395 1,421 1,395 2,421 2018 0,263 0,702 0,356 2,355 1,356 3,355 2019 0,327 0,732 0,485 2,734 1,485 3,734 2020 0,300 0,734 0,429 2,764 1,429 3,764 2021 0,331 0,717 0,494 2,530 1,494 3,530 (Vinamilk) (Vinamilk) (Vinamilk)Overall, these three coefficients are quite similar in meaning Total debt ratio indicates that VNM has a smaller proportion of total assets in debt than rival HNM Debt/equity ratio shows that HNM is financed mostly from debt and debt accounts for a larger proportion than equity, unlike VNM The equity multiplier of HNM is quite high, higher than VNM for all years, showing that VNM still has a higher level of financial independence than HNM It can be seen that Vinamilk still focuses on using resources from equity instead of external capital to ensure safety Market value ratios Inventory turnover Fixed asset turnover Total asset turnover VNM HNM VNM HNM VNM HNM 2017 7,032 0,836 7,215 1,234 1,460 0,354 2018 5,224 1,097 5,410 1,432 1,366 0,399 2019 6,639 1,045 5,816 1,410 1,288 0,403 2020 6,773 1,092 6,747 1,047 1,198 0,485 2021 5,046 1,217 7,854 1,395 1,087 0,591 Overall, these three coefficients are quite similar in meaning Total debt ratio indicates that VNM has a smaller proportion of total assets in debt than rival HNM Debt/equity ratio shows that HNM is financed mostly from debt and debt accounts for a larger proportion than equity, unlike VNM The equity multiplier of HNM is quite high, higher than VNM 18