TOPIC: Calculating and analyzing the companys financial ratios over the years (20182020)Business: Bamboo Capital (BCG)A. OVERVIEWBamboo Capital Group (BCG) was established in 2011 with 2 main areas of activity: Investment banking services, MA consulting and capital mobilization. Provide information technology solutions and project development.In 2012 BCG expanded its business with the addition of activities including: Trade and agriculture. Investment MA.In 2015, BCG became one of the multiindustry companies with more than 15 member companies and associates. Also listed on the Ho Chi Minh City Stock Exchange (HSX).In 2019, Consolidation of investment portfolios, focusing on 4 main activities including: Agricultural production. Infrastructure Real Estate Development. To build trading. Recycled energy.Currently, BCG has more than 30 member companies and affiliated companies in Vietnam, doing business in such fields as: Consulting, Fund Management, Investment Banking, Real Estate, Manufacturing, Export Imports, Transportation, Minerals, Services and Tourism.Operating in 4 key areas with more than 30 member companies and associates. The appearance of Bamboo Capital Group has been clearly shaped with specific development strategies for each industry and field of activity.
MINISTRY OF EDUCATION AND TRAINING DUY TAN UNIVERSITY GROUPWORK: FINANCIAL MANAGEMENT PSU-FIN-302-AIS TOPIC: Calculating and analyzing the company's financial ratios over the years (2018-2020) Business: Bamboo Capital (BCG) Group: A OVERVIEW Bamboo Capital Group (BCG) was established in 2011 with main areas of activity: - Investment banking services, M&A consulting and capital mobilization - Provide information technology solutions and project development In 2012 BCG expanded its business with the addition of activities including: - Trade and agriculture - Investment M&A In 2015, BCG became one of the multi-industry companies with more than 15 member companies and associates Also listed on the Ho Chi Minh City Stock Exchange (HSX) In 2019, Consolidation of investment portfolios, focusing on main activities including: - Agricultural production - Infrastructure & Real Estate Development - To build trading - Recycled energy Currently, BCG has more than 30 member companies and affiliated companies in Vietnam, doing business in such fields as: Consulting, Fund Management, Investment Banking, Real Estate, Manufacturing, Export Imports, Transportation, Minerals, Services and Tourism Operating in key areas with more than 30 member companies and associates The appearance of Bamboo Capital Group has been clearly shaped with specific development strategies for each industry and field of activity VISION: BCG aims to become the leading renewable energy developer in Vietnam in the coming time The field of renewable energy will be developed on the basis of the sustainable development of the following fields: - Agricultural production - Building infrastructure - Real estate MISSION: BCG's mission is to constantly build trust and value for partners, customers, shareholders and employees through successfully connecting and realizing business opportunities, based on based on experience, professionalism, strong relationships and deep understanding of local and international cultures From 2018 to 2020 The financial market has clearly differentiated in recent years in terms of scale, market share as well as development direction Especially since the Government drastically restructured the banking and financial system, focusing on banks and securities companies, the total asset size as well as the equity of financial institutions and banks securities companies continuously increased sharply Considering the overall system of financial institutions, banks, securities companies, fund management companies, the scale of BCG is quite small Therefore, to overcome this shortcoming, BCG is constantly looking for investors and strategic partners who can expand the Company's capital, in order to take advantage of the advantage of scale In the context of positive changes in the domestic economy, Bamboo Capital Group as one of the leading multi-industry investment companies in Vietnam, with enthusiasm and experience, has been actively transforming , using the inherent potential to increase the attractiveness, ready to join the change of the market The following are the calculations and analysis of the company's financial indicators in 2018,2019 and 2020 B FINANCIAL STATEMENTS INCOME STATEMENTS Revenues from sales and services rendered Revenue deductions Net revenue from sales and services rendered Financial income SALES Costs of goods sold Gross profit Financial expenses 2018 1,114,09 773 1,113,32 208,62 1,321,949 881,94 440,002 224,87 2019 1,575,87 1,575,87 327,47 1,903,354 1,296,83 606,518 185,46 2020 1,855,00 62 1,854,94 854,30 2,709,251 1,434,68 1,274,562 554,63 In which: interest expenses Profit or loss in joint ventures and associates Selling expenses General administration expenses Net profit from operating activities Other income Other expenses Other profit Total accounting profit before tax Current corporate income tax expense Deferred corporate income tax expense Profit after corporate income tax Shares outstanding Basic earnings per share 169,643 (3,808 ) 64,44 105,83 41,041 176,140 15,98 71,37 176,12 189,529 4,373 8,998 9,812 (5,439 ) 35,602 24,63 (357 ) 11,326 108 105 6,193 2,805 192,334 52,17 (357 ) 140,522 108 1,301 302,906 (52,390 ) 110,38 222,50 334,643 12,26 13,65 (1,394 ) 333,249 88,02 (21,190 ) 266,419 117 2,277 BALANCE SHEET ASSET Current assets Cash and equivalents Short-term investments Short-term receivables In which: short-term receivables from customer In which:Advanced payments to suppliers 2018 1,955,68 73,64 15,82 1,628,79 477,647 220,92 2019 2,287,19 150,21 36,02 1,196,33 644,005 249,92 2020 11,338,108 903,38 593,76 7,083,49 901,498 757,20 In which:Short-term loan receivables In which:Other short-term receivables In which: Short-term allowances for doubtful debts Inventories In which: Allowances for decline in value of inventories Other current assets In which: Short-term prepaid expenses Non-current assets Non-account receivables Fixed assets Tangible fixed assets Finance lease fixed assets Intangible fixed asset Net Fixed assets Investment property Non-current property in progress Non-current financial investments Other non-current assets Total assets 5,00 949,86 (24,98 5) 179,89 (76,75 3) 57,52 27,18 3,364,94 1,017,81 221,35 4,13 68 226,17 653,23 214,40 881,96 371,35 5,320,62 Liabilities & Owner’s Equity 6,50 348,56 (52,81 2) 841,78 62,83 24,29 4,967,45 2,755,47 295,59 4,93 10,34 310,88 17,58 1,362,66 520,84 7,254,64 8,400 5,503,70 (87,32 1) 2,276,29 481,16 19,81 12,798,717 6,042,28 358,99 3,911 2,235 365,145 4,033,61 1,290,61 1,067,06 24,136,826 Current liabilities Short-term trade payables Short-term prepayments from customers Tax and payables to the State Payables to employees Short-term accrued expenses Short-term unrealized revenue Other short-term payments Short-term borrowings and finance lease liabilities Bonus, welfare fund Long-term liabilities Long-term trade payables Long-term repayments from customers Other long-term payables Long-term borrowings and finance lease liabilities Convertible bonds Deferred income tax payable Liabilities Owners’ investment equity Capital surplus 2018 2,883,52 688,19 502,48 58,36 9,08 127,53 2019 3,118,30 426,04 748,04 114,36 13,14 209,45 568,79 923,24 5,83 1,029,39 357,24 1,245,43 4,57 2,511,81 - - 45,25 701,64 280,00 2,50 3,912,91 1,080,05 (16 977,38 1,136,52 395,75 2,14 5,630,11 1,080,05 (16 2020 10,609,458 4,780,66 1,689,33 120,65 12,97 91,50 12,33 1,863,76 2,030,72 7,498 10,564,059 688,31 40,00 5,264,97 2,549,39 2,020,30 1,072 21,173,518 1,360,05 (16 5) 77 49 (10,51 2) 337,06 1,407,71 5,320,62 Development and investment fund Other equity funds Undistributed profit non-controlling shareholder interests Total Owner’s Equity Total Liabilities and Owner’s Equity 5) 76 48 133,65 409,72 1,624,52 7,254,64 5) 307 481 215,21 1,387,41 2,963,308 24,136,826 C CALCULATION AND ANALYSIS I CAPITAL STRUCTURE 1.1 Debt/Asset Debt/ Asset 2018 2019 73.54% 77.61% 2020 87.72% 1.2 Change in financial leverage Debt/ Asset EPS 2018 2019 2020 73.54% 77.61% 87.72% 105 1,301 2,277 From 2018 to 2020, along with the increased use of financial leverage has increased EPS this is a correlation relationship The debt/asset ratio increased gradually from 2018 to 73.54% to 77.61% in 2019 and 87.72% in 2020 From 2018, the company started to increase investment in real estate projects and renewable energy, using a lot of financial leverage, causing a significant increase in costs Since these industries cannot immediately record results in 2018, we can see 2018 EPS (105) significantly lower than 2019 (1,301) and 2020 (2,277) In the following years, a part of the revenue from real estate and renewable energy projects was recorded and the company continued to increase financial leverage, raising the company's profit after tax from 11,326 (2018) to 140,522 (2019) and 266,419 (2020) and increase EPS 1.3 WACC and Price Debt/ Asset Price 2018 2019 2020 73.54% 77.61% 87.72% 5,540 7,970 13,250 According to actual data, in the year with the minimum WACC (2018), the stock price did not reach the maximum The difference from this theory is that in 2018, the company narrowed down its low-efficiency business activities to develop key projects At the same time, focusing resources on long-term projects in the fields of real estate and renewable energy, these fields cannot bring immediate profits, so they have created many costs that directly affect net income, EPS, price and put the stock on warning 1.4 WACC and EPS In the year with the minimum WACC, the EPS does not reach the maximum Because in theory at the minimum WACC, the stock price will be at the maximum But according to the fact as explained in 1.3, it is due to the company's decisions that directly affect profit, EPS, and stock price EPS WACC II DIVIDEND POLICY 2.1 Dividend policy 2018 2019 2020 105 1,301 2,277 4.44% 7.25% 8.50% 2018 2019 2020 DPS - 558 1590 EPS 105 1,301 2,277 Payout ratio 0% 42.89% 69.83% In 2018, the parent company's revenue dropped sharply because of the restructuring company, making the parent company profit less than last year, BGC decided not to pay dividends so the payout ratio is 0%, this is a No Dividend Policy In 2019, the Company uses an Irregular Dividend Policy with a dividend payout ratio of 42.89%, this is theory Preference capital gains which mean that the company is looking to retain more profits to satisfy its equity, and in 2019 Net income 12.4 times compared to 2018 from 11,326 to 140,522, this shows that the company has many investment opportunities for growth and higher profitability, shareholders will easily accept relatively low dividend payments to reinvest profits in the company In 2020, the company continues to use the Irregular Dividend Policy but with a higher dividend payout ratio of 69.83%, which means that the company is using more 2/3 part of profits to pay dividends to shareholders, which is theory Bird-in-the-Hand Fallacy In 2020, when profits are on the rise and steady, the company will want to raise this payout ratio to increase the value of the company 2.2 Dividend policy and change in total asset Payout ratio Total Asset 2018 2019 2020 0% 42.89% 69.83% 5,320,626 7,254,645 24,136,816 From 2018 to 2020, along with the change in dividend policy is an increase in total assets, this is a correlative relationship 2018 is the beginning of the restructuring when the company is focusing resources to develop new long-term projects along with is the No dividend policy In 2019 total assets increased from 5,320,626 ( 2018 ) to 7,254,645 (2019) because revenue recognition from previously invested projects proves the efficiency of the investment This also shows investors that the company's prospects have many growth opportunities, capturing investors's sentiment that will Preference capital gains, with an average payout ratio of 42.89%, making more easily accepted by shareholders In 2020 total assets skyrocketed from 7,254,645 (2019) to 24,136,816 (2020) BCG didn't disappoint investors when it had a stable growth rate and the Bird-in-the-Hand Fallacy policy with a high dividend rate of up to 69.83% to satisfy investors when the ratio was not stable last years With this stable growth rate, the company will want to maintain a stable payment ratio and that is not too high in the coming years III CURRENT ASSET INVETSMENT 3.1 Current asset investment policy SALES Current assets Current assets turnover Profit after corporate income tax Total Owner’s Equity Return On Equity (ROE) 2018 1,321,94 1,955,68 0.68 11,326 1,407,71 0.8% 2019 1,903,35 2,287,19 0.83 140,52 1,624,52 8.7% 2020 2,709,25 11,338,10 0.24 266,41 2,963,30 9.0% In 2018, based on the CAT ratio of 0.68, we can determine that the Current Asset Investment Policy that BCG used is the Moderate Current Asset Investment Policy because the Moderate Policy is a balance between the Restricted Policy and the Relaxed Policy In 2019, the CAT ratio sits at 0.83 This proves that BCG has used Restricted Current Asset Investment Because Restricted Current Asset Investment restricts cash holdings, marketable securities, inventories, and receivables, Current Asset is inversely proportional to CAT, so the less short-term assets are used, the lower CAT The CAT for 2020 is just 0.24 Thus we can determine that in 2020 BCG used Relaxed Current Asset Investment Policy Because this policy is the policy of using a relatively large amount of cash, marketable securities and inventory, etc The more short-term assets are used, the lower CAT Therefore, based on a CAT ratio of 0.24, we can determine that, in 2020 BCG used Relaxed Current Asset Investment 3.2 Current asset investment policy and ROE SALES Current assets Current assets turnover Profit after corporate income tax Total Owner’s Equity Return On Equity (ROE) 2018 1,321,94 1,955,68 0.68 11,326 1,407,71 0.8% 2019 1,903,35 2,287,19 0.83 140,52 1,624,52 8.7% 2020 2,709,25 11,338,10 0.24 266,41 2,963,30 9.0% From 2018 to 2020, along with the change in current asset investment policy is the increase in ROE this is a correlative relationship In 2018, BCG's CAT ratio was 0.68 but ROE was just 0.8% That means in 2018, with 100 USD of Total Owner’s Equity spent, the business can only earn USD in profit, the reason for this is because in 2018, BCG has focused on conducting investment projects in a series of large projects in the field of real estate and renewable energy Meanwhile, BCG's Current Assets Turnover ratio is at 0.68, which is not too high, so it is completely appropriate for businesses to choose the Moderate Current Asset Investment Policy to ensure profits and safety for businesses BCG's goal for 2019 is to create a balanced source of income for financial obligations and reduce the burden of interest, and investment projects in 2018 have come into operation and are profitable And the data shows us, along with the change in shortterm asset investment policy is an increase sharply in ROE from 0.8% to 8.7%, so they are correlative Aiming to stabilize short-term income as well as partially settle debt and interest obligations, in 2019 the Board of Directors has set a business plan based on the sudden growth compared to the results achieved in 2018 In 2020, BCG has used most of its assets to focus on quickly investing in real estate projects, capturing favorable market opportunities The renewable energy sector has also been deployed rapidly, taking full advantage of the government's preferential mechanism Therefore, BCG used Relaxed Current Asset Investment Policy, along with the change in short-term asset investment policy is an increase ROE to 9.0%, it also means that they are correlative The Relaxed Current Asset Investment Policy allows BCG to hold a large number of short-term assets so that it can promptly grasp market opportunities IV FINANCING CURRENT ASSET 4.1 Financing current asset policy 2018 2019 2020 Current liabilities 2,883,523 3,118,306 10,609,458 Temporary current asset 1,304,705 682,098 6,376,438 2.21 4.57 1.66 CL/TCA In 2018, the CL/TCA was average (2.21), so we can determine that BCG used the Moderate Approach Because Moderate Approach's Short-Term, Nonspontaneous Debt Financing is only used to fund Temporary Current Assets, its ratio is in the middle Because the company is in the midst of a restructuring in 2018, the Moderate Approach is a perfect fit to stay safe while still ensuring profitability Relatively Aggressive Approach is a policy of using Short-Term, Nonspontaneous Debt Financing to fund Temporary Current Assets and ½ Permanent Current Assets, so its CL/TCA is the highest In 2019, when things were gradually stabilizing, BCG delayed payments to suppliers to use short-term debt to finance short-term assets of the year, resulting in 2019's CL/TCA being the highest in years(4.57) Therefore, it can be determined that in 2019 BCG used Relatively Aggressive Approach In 2020, BCG's current asset financing policies are Conservative Approach This is the policy of using Short-Term, Nonspontaneous Debt Financing to fund part of Temporary Current Asset Because BCG's Short-Term, Nonspontaneous Debt Financing is only used to finance a portion of the Temporary Current, the Conservative Approach's CL/TCA is minimal And yes, in 2020, BCG made timely payments to suppliers to keep a good relationship with them, to minimize the risk of out of stock without timely supply, resulting in low short-term debt the most in years(1.66) So it can be determined that in 2018 BCG used Conservative Approach 4.2 Financing current asset policy and ROE 2018 2019 Current liabilities 2,883,523 3,118,306 2020 10,609,45 Temporary current asset CL/TCA Profit after corporate income tax Total Owner’s Equity Return On Equity (ROE) 6,376,43 1,304,705 682,098 2.21 4.57 11,326 140,522 1,407,712 1,624,528 1.66 266,41 2,963,30 0.8% 8.7% 9.0% From 2018 to 2020, along with the change in financing current asset policy is the increase in ROE this isn't a correlative relationship In 2018, BCG focused on conducting investment and restructuring projects on large projects in the real estate and renewable energy sectors, so the ROE was only 0.8%, so it is perfectly appropriate for businesses to choose Moderate Approach to keep safe and ensure profits for businesses And ROE in 2018 is 0.8% In 2019, ROE increased sharply to 8.7% That's in part thanks to a change in current asset financing policy BCG uses Relatively Aggressive Approach to defer debt and use it to finance short-term assets Bringing the business into a stable state after restructuring in 2018 Along with the change in short-term asset financing policy ROE also increased sharply to 8.7% So they are not correlative In 2020, when successfully implementing Relatively Aggressive Approach to invest in short-term assets, BCG's business and profit activities have entered a state of development and stability BCG returned to the Conservative Approach to make timely payments to suppliers and establish a good relationship with them ROE also has signs of increase in this period to 9.0%, so they are not correlative V FORECASTING FINANCIAL STATEMENTS 5.1 The AFN in 2021 Ao/So Δ Sale Lo/So 8.91 270,925 4.88 M 0.098 S1 2,980,176 RR 0.302 AFN = (Ao/So)*Δ Sale - (Lo/So)*Δ Sale - M*(S1)*RR AFN = 2,413,683 - 1,323,024 - 88,428 AFN = 1,002,231 5.2 Forecast Financial Statements PART I INPUT Growth rate, g Total asset 10% Operating costs/Sales = 95%2020 Adjustable Inputs Fixed Inputs 2020 2021 N/A 10% Tax rate ( T ) 20% 24,136,826 26,550,508 Interest rate 4.6% Shares 65.24% 61.98% outstanding 117 Debt ratio =2020 Payout ratio = 2020 87.72% 69.83% PART II INCOME STATEMENT Sales Profit or loss in joint ventures and associates Other profit Operating costs (includes depreciation) Earnings before interest and taxes (EBIT) Less interest expense 87.72% 69.83% 2020 2,709,251 Price 13,250 Change 1+g 2021 2,980,176 1+g (52,390) 1+g (1,394) 61.98% 1,767,581 887,886 See notes 302,906 (57,629) (1,534) 1,847,122 1,073,891 333,982 Other financial expenses Earnings before taxes (EBT) Taxes Net income (NI) Dividends Addition to retained earnings PART III BALANCE SHEETS ASSET Cash and equivalents Short-term investments In which: short-term receivables from customer Short-term receivables Inventories Other current assets Non-current assets TOTAL ASSET LIABILITIES AND EQUITY Spontaneous liabilities Short-term bank loans Other current liabilities Long-term bonds Total debt Common stock Retained earnings Total common equity TOTAL LIABILITIES AND EQUITY PART IV RATIO AND EPS Operating costs/Sales Receivables/Sales Inventory/Sales Debt ratio 1+g 251,730 333,249 EBT(T) 66,830 266,419 186,030 NI(Payout) 80,389 276,903 463,006 92,601 370,405 258,639 111,766 Change 1+g 1+g 2021 2020 903,386 593,767 901,498 7,083,496 2,276,299 481,160 12,798,717 24,136,826 14,553,259 2,030,729 19,831 4,569,699 21,173,518 1,360,058 1,603,250 2,963,308 24,136,826 1+g 993,725 653,144 991,648 7,791,846 2,503,929 529,276 14,078,589 26,550,508 1+g 1+g 1+g 1+g 1+g 1+g 16,008,584 See notes 2,233,802 1+g 21,814 See notes 5,026,669 23,290,869 See notes 1,544,623 111,766 1,715,016 3,259,639 26,550,508 2020 65.24% 33.27% 84.02% 87.72% 2021 61.98% 33.27% 84.02% 87.72% Payout ratio Inventory turnover Days sales outstanding (DSO) Total assets turnover Assets/Equity (equity multiplier) Times interest earned (TIE) Profit margin Return on assets (ROA) Return on equity (ROE) PART V NOTE ON CALCULATIONS Assets in 2021 will change to this amount, from the balance sheet Target debt ratio Resulting total debt: (Target ratio)(2021 Assets) Less: Spontaneous liabilities and other liabilities Bank loans and bonds (= Interest bearing debt) Allocated to bank loans, based on 2020 proportions Allocated to bonds, based on 2020 proportions Interest expense: (Interest rate)(2021 Bank loans plus bonds) Target equity ratio = - Target debt ratio Required total equity: (2021 Assets)(Target equity ratio) Retained earnings, from 2021 balance sheet Required common stock = Required equity - Retained earnings Old shares outstanding (millions) Increase in common stock = 2021 Stock - 2020 Stock Initial price per share from input section Change in shares = Change in stock/Initial price per share New shares outstanding = Old shares + Δ Shares Old EPS = 2020 Net income/Old shares outstanding New EPS = 2020 Net income/New shares outstanding 69.83% 1.19 121 0.11 8.15 2.93 9.8% 2.1% 9.0% 69.83% 1.19 121 0.11 8.15 3.22 12.4% 2.6% 11.4% 26,550,508 87.72% 23,290,869 16,030,399 7,260,471 2,233,802 5,026,669 333,982 12.28% 3,259,639 1,715,016 1,544,623 117 184,565 13,250 14 131 2277 2,829 5.3 Compare the level of financial risk and evaluate the level of competition DuPont Calculations Profit Margin N/S Actual for 2020 Forecasted for 2021 Industry-average data 9.8% 12.4% 10.65% * Total Assests * Equity = Turnover Multiplier (S/A) (A/E) 0.11 8.15 0.11 8.15 0.22 7.75 ROE 9.0% 11.4% 18.16% a, Compare the level of financial risk Based on ROE's DuPont equation, comparing the financial risk level of the business in 2021 and 2020, we can see the fluctuations in each ratio over the years of BCG The first is the ROS ratio of BCG, the ROS ratio is the higher ratio, the lower risk In 2020, the company's ratio is 9.8%, the ratio reflecting the business performance of the business is in a relatively good state and in 2021, the ratio will increase by nearly a quarter compared to 2020, proving that that the level of risk on business performance of enterprises in 2021 will be lower than in 2020 Next is the Total Asset Turnover ratio, usually the higher this ratio shows, the higher efficiency of asset use, the more businesses invest in reasonable asset purchase plans But in 2020 and 2021, this ratio is almost unchanged and only stays as low as 0.11 Therefore, the risk in the use of assets of the enterprise is relatively large The third one is Equity Multiplier The Equity Multiplier is a coefficient that shows a company's level of risk to equity A higher ratio indicates that the company has more assets financed by debt than by equity The company is then considered more leveraged and risky for investors From there we can see that, in 2020 and 2021, BCG's Equity Multiplier is almost unchanged, moreover, it is quite high compared to the industry Therefore, the company has a high risk because it is too dependent on debt and has few investors in 2020 and 2021 Finally, the ROE ratio ROE, which shows the ability to use capital to generate profits The greater coefficient, the lower risk So with an ROE of 9% in 2020 and 11.4% in 2021, we can assess that the risk in using capital to generate profits in 2020 is higher than in 2021 b, Evaluate the level of competition About assessing the level of competition in 2020 of enterprises with the general level of the industry From the ROS, Total Asset Turnover, Equity Multiplier ratios of the business in 2020 and the industry in 2020, we can completely see that the competitiveness of BCG in the industry in 2020 is quite low The following are more specific reviews BCG's ROS ratio in 2020 is 0.85% lower than the industry ratio Therefore, the aspect of generating profit on revenue is not high enough compared to the industry even though the ROS is quite high The efficiency in using assets of enterprises reflected in the Total Assets Turnover ratio of 0.11 shows Compared to the industry (Total Asset Turnover is 0.22), the efficiency of asset use of the enterprise is not good Enterprises need to take more measures to increase the efficiency of asset use and reduce risks in the operation process Next is the competitiveness of the business expressed through the Equity Multiplier ratio BCG has a ratio higher than the industry, and the higher the ratio, the greater the risk due to its heavy reliance on debt But this risk level of BCG is larger than the industry in 2020, making its competitiveness also weaker From these indicators, it has created an impact on the return on equity (ROE), making the ROE target in 2020 at 9% Less than half of the industry That means the risk of the business is more than twice that of the industry Therefore, after applying the Dupont model to analyze, combine and compare the ROE of enterprises in 2020 compared to the industry We can see that the position of enterprises in the industry is not high, the competitiveness is quite low 5.4 Solutions for raising capital When raising capital becomes difficult The solution CFO should propose to the Board of Directors of the Company is: Develop viable business plans and investment projects to submit to the bank, pay principal and interest on time, build trust in banks and sponsors to quickly find financial resources aid In addition, it is necessary to strengthen the management of receivables, minimize the amount of capital that is appropriated (do not leave debt or only provide low discount for small customers, learn carefully about solvency) payments of large customers and strict regulations on time, payment methods and penalties for breach of contract) In fact, leaving a large amount of money temporarily idle in the bank can cause the company to lose investment opportunities for other activities, so the company will strategically develop measures to use temporarily idle cash capital effectively Along with using temporarily idle money to invest, the company also has to manage inventory, reduce storage costs, and regularly monitor commodity market movements From there, predict and decide to timely adjust the import and the quantity of goods in stock in the face of market fluctuations to preserve capital in times of difficult capital mobilization Another optimal solution that the CFO should propose to the company's leadership is to strengthen cooperation, expand the consumption market, promote marketing, and conduct market research to capture the tastes of customers wrong goods accelerate the turnover of working capital And must build measures to prevent possible risks so that when the economy is inflationary, market prices increase, the company will promptly take preventive measures so that when the working capital in general and working capital say If there is a loss, the company has an immediate source of compensation, ensuring the business process is not interrupted