(Luận văn) evaluation business efficiency of 584 nha trang sea product joint stock company

ACADEMY OF POLICY AND DEVELOPMENT INTERNATIONAL SCHOOL OF ECONOMIC AND FINANCE lu an n va gh tn to p ie GRADUATION THESIS oa nl w d Topic: "Evaluation business efficiency of lu oi lm ul nf va an 584 Nha Trang Sea Product Joint Stock Company” Supervisor: Dr Doan Anh Tuan z at nh Student: Ngo Thi Truc Linh : 5073402115 z Student ID gm @ Class: TC CLC m co l n va ac th an Lu Hà Nội, tháng 3/2020 si ABSTRACT Nowadays, food safety is an important issue, often concerned by the media and the public In the recent years, the food market has many confidence crises with consumers In particular, it is impossible not to mention the crisis of traditional fish sauce Therefore, the fish sauce market - an indispensable spice in Vietnamese family lu meals, has made important changes, getting closer to transparency to win trust from an consumers, along with that is the healthy competition in the market va n Recognizing the importance, being facilitated and guided by Mr Doan Anh to gh tn Tuan, I chose 584 Nha Trang Sea Product Joint Stock Company - whose main business is to produce traditional fish sauce to make a training report with the content ie p "Evaluation business efficiency of 584 Nha Trang Sea Products Joint Stock Company" nl w Special thanks to the chief accountant – Mr Truong Nguyen Anh Tuyen and 584 Nha d oa Trang Sea Products Joint Stock Company staff for your help in my internship period in an lu the company I have gained a lot of practical knowledge as well as an opportunity to apply the knowledge I learned to complete this report oi lm ul nf va z at nh z m co l gm @ an Lu n va ac th si CHAPTER 1: THEORETICAL BASIS FOR FINANCIAL CAPITAL 1.1 The concept of financial capital 1.1.1 Definition For each business in particular and the economy in general, which always plays a very important role Depending on each socio-economic situation, there are many different views and judgments about financial capital that have been made It is any economic resource measured in terms of money used by entrepreneurs and businesses to buy what they need to make their products or to provide their lu an services to the sector of the economy upon which their operation is based But in this n va thesis, I give some definitions according to International Financial Reporting A financial concept of capital is adopted by most entities in preparing their ie gh tn to Standards (IFRS) p financial report Under a financial concept of capital, such as invested money or invested purchasing power, capital is synonymous with the net assets or equity of the w oa nl entity Under a physical concept of capital, such as operating capability, capital is d regarded as the productive capacity of the entity based on, for example, units of output va an lu per day ul nf In IFRS, there are two concepts of financial capital maintenance as follows: oi lm Physical concept of capital and Financial concept of capital z at nh About Financial capital maintenance, under this concept, a profit is earned only if the financial (or money) amount of the net assets at the end of the period exceeds the z financial (or money) amount of net assets at the beginning of the period, after @ gm excluding any distributions to, and contributions from, owners during the period l Financial capital maintenance can be measured in either nominal monetary units or m co units of constant purchasing power Under the concept of financial capital maintenance an Lu where capital is defined in terms of nominal monetary units, profit represents the increase in nominal money capital over the period Thus, increases in the prices of ac th n va assets held over the period, conventionally referred to as holding gains, are, si conceptually, profits They may not be recognized as such, however, until the assets are disposed of in an exchange transaction When the concept of financial capital maintenance is defined in terms of constant purchasing power units, profit represents the increase in invested purchasing power over the period Thus, only that part of the increase in the prices of assets that exceeds the increase in the general level of prices is regarded as profit The rest of the increase is treated as a capital maintenance adjustment and, hence, as part of equity And about physical capital maintenance, under this concept, a profit is earned lu an only if the physical productive capacity (or operating capability) of the entity (or the n va resources or funds needed to achieve that capacity) at the end of the period exceeds the to physical productive capacity at the beginning of the period, after excluding any gh tn distributions to, and contributions from, owners during the period Under the concept p ie of physical capital maintenance when capital is defined in terms of the physical productive capacity, profit represents the increase in that capital over the period All nl w price changes affecting the assets and liabilities of the entity are viewed as changes in d oa the measurement of the physical productive capacity of the entity Hence, they are an lu treated as capital maintenance adjustments that are part of equity and not as profit nf va The principal difference between the two concepts of capital maintenance is oi lm ul the treatment of the effects of changes in the prices of assets and liabilities of the entity In general terms, an entity has maintained its capital if it has as much capital at the end z at nh of the period as it had at the beginning of the period In short, capital is a prerequisite of any business to participate in production and z gm @ business activities l 1.1.2 Classification m co 1.1.2.1 Classified by source an Lu 1.1.2.1.1 Equity Equity is typically referred to as shareholder equity (also known as ac th n va shareholders' equity), or owner equity (for privately held companies), which represents si the amount of money that would be returned to a company’s shareholders if all of the assets were liquidated and all of the company's debt was paid off Equity is found on a company's balance sheet and is one of the most common financial metrics employed by analysts to assess the financial health of a company Shareholder equity can also represent the book value of a company Equity can sometimes be offered as paymentin-kind 1.1.2.1.2 Liability A liability is something a person or company owes, usually a sum of money lu an Liabilities are settled over time through the transfer of economic benefits including n va money, goods, or services Recorded on the right side of the balance sheet, liabilities to include loans, accounts payable, mortgages, deferred revenues, earned premiums, gh tn unearned premiums, and accrued expenses Even marriages can change your liability p ie In general, a liability is an obligation between one party and another not yet completed or paid for In the world of accounting, a financial liability is also an obligation but is nl w more defined by previous business transactions, events, sales, exchange of assets or d oa services, or anything that would provide economic benefit at a later date lu an An essential characteristic of a liability is that the entity has a present obligation nf va An obligation is a duty or responsibility to act or perform in a certain way Obligations oi lm ul may be legally enforceable as a consequence of a binding contract or statutory requirement This is normally the case, for example, with amounts payable for goods z at nh and services received Obligations also arise, however, from normal business practice, custom and a desire to maintain good business relations or act in an equitable manner z If, for example, an entity decides as a matter of policy to rectify faults in its products @ gm even when these become apparent after the warranty period has expired, the amounts m co l that are expected to be expended in respect of goods already sold are liabilities Enterprises can receive debt capital from many sources such as bank loans, an Lu corporate bond issuance, loan capital from other enterprises, n va ac th si 1.1.2.2 Classified by roles and characteristics 1.1.2.2.1 Fixed capital This money which is used to purchase assets that will remain permanently in the business and help it to make a profit Factors used to determine fixed capital needs: Nature of business, size of business, stage of development, capital invested by the owners, location of that area, … Fixed capital is denominated in money by fixed assets, its characteristics also depend on fixed assets When engaged in production and business, the capital value of lu an fixed capital shifted into the production cost of fixed capital produced It is n va understood that fixed capital is depreciated by the number of products produced Fixed tn to capital can be divided into types: tangible fixed assets, intangible fixed assets and capital lease ie gh p A tangible asset is an asset that has a finite monetary value and usually a physical form Tangible assets can typically always be transacted for some monetary w oa nl value though the liquidity of different markets will vary Tangible assets are the d opposite of intangible assets which have a theorized value rather than a transactional va an lu exchange value ul nf An intangible asset is an asset that is not physical in nature Goodwill, brand oi lm recognition and intellectual property, such as patents, trademarks, and copyrights, are all intangible assets Intangible assets exist in opposition to tangible assets, which z at nh include land, vehicles, equipment, and inventory z A capital lease is a contract entitling a renter to the temporary use of an asset, @ and such a lease has the economic characteristics of asset ownership for accounting gm l purposes The capital lease requires a renter to book assets and liabilities associated m co with the lease if the rental contract meets specific requirements In essence, a capital lease is considered a purchase of an asset, while an operating lease is handled as a true an Lu lease under generally accepted accounting principles n va ac th si 1.1.2.2.2 Working capital Firms use working capital to run their business For example, money that they use to buy stock, pay expenses and finance credit Factors used to determine working capital needs: Size of business, stage of development, time of production, rate of stock turnover ratio, buying and selling terms, seasonal consumption, seasonal product, profit level, growth and expansion, production cycle, general nature of business, business cycle, business policies, debt ratio, … Working capital is denominated in cash from working assets, so it is influenced lu an by current assets They include some accounts belonging to short-term assets such as: n va Cash and cash equivalents, short-term investments, short-term receivables, 1.1.3 The role of capital in production and business activities gh tn to inventory, … p ie Legally, capital is one of the basic factors to establish a business and go into w production and business activities in the course of operation, capital plays a role of oa nl ensuring the smooth and efficient production and business process of enterprises d capital helps businesses carry out production, reproduction and expand investment and va an lu business activities ul nf In today's competitive market environment, which helps businesses to be more oi lm active in business forms, proactively innovate business forms, machinery and equipment, improve technology, Since then, businesses have improved the quality z at nh of products, competitiveness, changing models, lowering product costs, checking working time for employees as well as improving operational efficiency z @ 1.2 The concepts of efficiency of financial capital use gm l 1.2.1 Definition m co Capital plays a very important role in the operation and development of the business Because the effective use of capital in an enterprise is the result of the an Lu process of managing and using capital in the production and business process so as to ac th n va achieve maximum efficiency That why analyzing the efficiency of capital use in si enterprises is also same way with analyzing corporate finance Besides, the efficiency of capital use also shows the correlation between the input and output of the production and business process through evaluation indicators From financial capital efficiency analysis, manager of company can evaluate the process of examining a company’s performance in the context of its industry and economic environment in order to arrive at a decision or recommendation Moreover, the efficiency of capital use not only shows the evaluation of business results, it also reflects the management, capital exploitation and use capacity of enterprises in order to maximize the profit lu while minimizing costs an n va 1.2.2 Factors affecting the efficiency of financial capital use 1.2.2.1.1 Political and legal environment gh tn to 1.2.2.1 Objective factors p ie The political stability of our country is a favorable first hunger for the business w environment Especially after joining the WTO in 2007, the government has had many oa nl monetary and monetary policies to help promote domestic production and business activities In addition, the government is increasingly improving the legal environment, d an lu shortening time and simplifying procedures for establishing businesses, building a nf va friendly and healthy business environment oi lm ul 1.2.2.1.2 Economic environment As the economy grows, an increase in per capita income will lead to an increase z at nh in people's spending needs Therefore, the competitive pressure on domestic enterprises is increasing, but businesses still have many opportunities to develop z production and business activities to meet the increasingly demanding Vietnamese @ l gm market m co Vietnam is a market with a fast growing up speed, great potential and attractive to domestic and foreign investors Forecasts from reputable experts all agree that GDP an Lu growth in the period of 2020-2025 will reach 7% per year The increase in GDP has ac th n va led to an increasing demand for quality products and models This is both a challenge si and an opportunity for businesses to improve the quality of products and services and increase competitiveness in the market 1.2.2.1.3 Social and cultural environment Currently, Vietnam's population is estimated at over 95 million It is predicted that Vietnam's population will reach 104 million by 2030 Of which 40% to 50% of the population will live in urban areas The number of people of working age accounts for more than 50% Along with that is the change of shopping habits to better suit the pace of development The need for safe and healthy food is also more focused The lu an youth's shopping culture also greatly affects businesses va 1.2.2.1.4 Technology environment n tn to The booming telecommunication system has created a new era It is followed gh by the outstanding development of production equipment as well as operating and p ie management technologies People have developed machines to shorten the production nl w process, increase labor productivity as well as reduce labor costs d oa 1.2.2.2 Subjective factor an lu 1.2.2.2.1 Industry environment The company belongs to the seafood industry specializing in producing fish va ul nf sauce, seafood and related products, the source for the company's activities comes production oi lm from the fishermen The company's operations depend heavily on local seafood z at nh The company also has many competitors in the same industry that have greater advantages with modern technical production lines and shorter production time z gm @ However, traditional production-oriented production is also an advantage of enterprises in the market when this production method takes more time but in return, l m co the product quality is greatly improved compared to the competitors operate by industrial methods an Lu n va ac th si 1.2.2.2.2 Manager level For each enterprise, after having sufficient capital for production and business activities, managing and using that capital source in an effective manner is a very important issue Enterprises with a good administrator, professional competence and management capacity can maximize profits achieved on the unit of capital very quickly, thereby helping businesses expand and improve better Strategies and policies appropriate to the situation of the business will be able to maximize the resources of the business, the employees, help improve staff capacity and improve productivity lu an 1.2.2.2.3 Labor force n va 1.2.3.1 Comparison method ie gh tn to 1.2.3 Methods of assessing the efficiency of financial capital use p Comparative method is a method often used in the analysis process to determine the trend of fluctuations in the accounts of businesses In order to apply this w oa nl method, criteria need to ensure consistency in the standard such as the same d measurement unit, the same percentage or the time unit, etc lu va an Content comparison may be as follows: oi lm enterprises ul nf - Longitudinal comparisons to assess the ratio of capital to total capital of z at nh - Compare horizontally to see the relative, absolute change over the years - Compare operational efficiency in actual operation with the plan set out earlier z gm @ to determine the level of business striving l 1.2.3.2 Ratio method m co Ratio method is the method based on certain financial ratios In enterprise financial analysis, financial ratios are classified into several groups such as: liquidity, an Lu profitability, capital and asset structure, business capacity, Each ratio group consists ac th 10 n va of individual reflection indicators, each division of financial activity Depending on si compensate Perhaps in 2018, the company took action to increase product prices to rebalance the figure Accompany with gross profit margin is operating profit margin; an operating profit margin increasing faster than the gross profit margin can indicate improvements in controlling operating costs, such as administrative overheads In contrast, a declining operating profit margin could be an indicator of deteriorating control over operating costs In 2016, gross profit stayed the same while the operating profit margin rose from 5.80 to lu an 6.30 It shows that there is an increase in administration and selling expenses In the margin n va following years, the figures show the same direction of volatility as the gross profit gh tn to The net profit margin in the table above is adjusted for non-recurring items to p ie off er a better view of a company's potential future profitability This number increased w insignificantly in 2016 In the following year, this index decreased, showing a decrease in oa nl business efficiency Do not let this happen for long, next year, the company's business d results have become better with the profit margin of 6,53 lu va an The final index that appears in the table is the Operating return on assets Similar nf to the traditional return on assets, the operating return on assets is used to determine the oi lm ul effectiveness of business operations and the profitability generated from assets used and to indicate how well a company is using its assets to generate operating income From z at nh this index, we can see that 2016 was the year the company used assets to generate the most effective main operating income since this year the index peaked at 14.99 In the z @ remaining years, this figure is not as high as in 2016, which suggests that the company l gm should focus on improving its core business to increase efficiency m co 2.2.4.2 DuPont analysis DuPont analysis breaks ROE into its constituent components to determine which an Lu of these components is most responsible for changes in ROE According to DuPont ac th 46 n va analysis, ROE is affected by three things: si  Operating efficiency, which is measured by profit margin  Asset use efficiency, which is measured by total asset turnover  Financial leverage, which is measured by the equity multiplier Decomposing ROE is useful in determining the reasons for changes in ROE over time for a given company and for diff erences in ROE for diff erent companies in a given time period The information gained can also be used by management to determine which areas they should focus on to improve ROE This decomposition will also show why a lu an company’s overall profitability, measured by ROE, is a function of its efficiency, n va operating profitability, taxes, and use of financial leverage DuPont analysis shows the to relationship between the various categories of ratios discussed in this reading and how ie gh tn they all influence the return to the investment of the owners p Therefore, DuPont analysis is represented in mathematical form by the following nl w calculation: d oa ROE = Profit Margin x Asset Turnover Ratio x Equity Multiplier an lu ROE = (Net income)/Assets x Assets / (Total Equity) = ROA x Equity multiplier nf va ROE = (Net income)/ (Total equity) = (Net income)/Sales x Sales/Assets x Assets/(Total oi lm ul Equity) Table 5: DuPont analysis from 2015 to 2018 z at nh 2016 2017 2018 ROE 28.82 32.87 22.49 22.38 ROA 14.12 17.03 13.10 16.65 Profit Margin 5.15 5.57 Equity multiplier 2.61 Total asset turnover 2.18 z 2015 2.37 2.29 1.75 2.38 2.30 1.75 m co 6.53 l gm @ 4.20 an Lu (Source: My analysis accumulated and calculated) n va ac th 47 si 2.2.3.2.1 DuPont Chart in 2015 of 584 Nha Trang Sea Product Joint Stock Company Diagram 2: DuPont analysis in 2015 Return on Equity 28.82 Return on Asset 14.12 Equity multiplier 2.61 lu an va n Asset 87,477 million VND Total asset turnover 2.18 Profit Margin 5.15 ie gh tn to Equity 33,463 million VND p Net income 9,173 million VND Asset 87,477 million VND d oa nl w Sales 178,154 million VND Sales 178,154 million VND oi lm ul nf va an lu z at nh z m co l gm @ an Lu n va ac th 48 si 2.2.3.2.2 DuPont Chart in 2016 of 584 Nha Trang Sea Product Joint Stock Company Diagram 3: DuPont analysis in 2016 Return on Equity 32.87 Return on Asset 17.03 Equity multiplier 2.37 lu an va n Asset 96,219 million VND Total asset turnover 2.38 Profit Margin 5.57 ie gh tn to Equity 40,662 million VND p Net income 12,182 million VND d oa nl w Asset 96,219 million VND Sales 218,640 million VND Sales 218,640 million VND oi lm ul nf va an lu z at nh z m co l gm @ an Lu n va ac th 49 si 2.2.3.2.3 DuPont Chart in 2017 of 584 Nha Trang Sea Product Joint Stock Company Diagram 4: DuPont analysis in 2017 Return on Equity 22.49 Return on Asset 13.10 Equity multiplier 2.29 lu an va n Asset 143,791 million VND Total asset turnover 2.30 Profit Margin 4.20 ie gh tn to Equity 62,663 million VND p Net income 11,620 million VND Asset 143,791 million VND d oa nl w Sales 178,154 million VND Sales 276,395 million VND oi lm ul nf va an lu z at nh z m co l gm @ an Lu n va ac th 50 si 2.2.3.2.4 DuPont Chart in 2018 of 584 Nha Trang Sea Product Joint Stock Company Diagram 5: DuPont analysis in 2018 Return on Equity 22.38 Return on Asset 16.65 Equity multiplier 1.75 lu an va n Asset 176,806 million VND Total asset turnover 1.75 Profit Margin 6.53 ie gh tn to Equity 100,797 million VND p Net income 18,294 million VND Asset 176,806 million VND d oa nl w Sales 280,118 million VND Sales 280,118 million VND Company va an lu 2.2.3.2.5 DuPont Chart in 2019 of 584 Nha Trang Sea Product Joint Stock oi lm ul nf Diagram 6: DuPont analysis in 2019 z at nh z m co l gm @ an Lu n va ac th 51 si Return on Equity 16.79 Return on Asset 13.24 Equity multiplier 1.75 Equity 104,616 million VND Asset 188,224 million VND Total asset turnover 1.61 Profit Margin 5.88 lu an n va Sales 293,361 million VND Sales 293,361 million VND Asset 188,224 million VND ie gh tn to Net income 17,224 million VND p 2.2.3.2.6 DuPont analysis by trend nl w DuPont analysis is a useful tool for isolating different factors that contribute to d oa ROE In other words, this model breaks down the return on equity ratio to explain how an lu companies can increase their return for investors nf va Investors are not looking for large or small output numbers from this model oi lm ul Instead, they are looking to analyze what is causing the current ROE The management can use this formula to pinpoint the problem area whether it is a lower profit margin, z at nh asset turnover, or poor financial leveraging Once the problem area is found, management can attempt to correct it or address it with shareholders z Equity multiplier calculated by dividing total assets by stockholder's equity This @ gm index gradually decreases year by year It means the company is not relying on financial m co l leverage and raised additional capital from issuing shares, attracting more investors to become shareholders Equity multiplier depends on total assets divided by total equity In an Lu this period, we can see that this index decreased because of the rapid increase in capital n va ac th 52 si from investors but in contrast, the increase in assets, especially long-term assets, was not as fast That has led to a decline in the index ROE can be calculated by multiplying net profit margin, the asset turnover ratio, and the equity multiplier together, so ROE can be deconstructed into the constituent financial metrics for observation The ROE index during this period had a noticeable variation that reflected a change in the company The index hit the highest level of 32.87 in 2016 Then it dropped lu an sharply to about 22 By using the DuPont identity, we can break down the cause of a n va decline in ROE in 2017, 2018 In 2017, the company unexpectedly doubled its equity tn to And year later, equity still increased by a number almost as large as the previous year gh The amplitude of capital increase of these years is the same, and revenue did not p ie increase significantly for the previous year As a result, the Company's ROE remained the nl w same d Stock Company oa 2.2.4 Conclusion from financial capital use of 584 Nha Trang Sea Product Joint va an lu 2.2.4.1 Advantages ul nf 584 Nha Trang Sea Product Joint Stock Company has been taking the right steps, the company's financial statements oi lm positive changes, bringing better business results over the years This is clearly shown in z at nh Through the above indicators, it can be seen that, after receiving a large amount of z investment capital, the company had a significant increase in revenue However, the @ percentage is not equal to the figures for the previous years The increase in capital gm m co l indicates an expansion of the company The advantages of the business performance are to have a low level of risk, high an Lu liquidity Although not growing fast but the steps of the company are always firm And the company also invested in machinery, infrastructure, equipment, to improve n va ac th 53 si production, improve products and service quality In addition, the company invested heavily in improving product quality, fully meeting quality standards on food safety 2.2.4.2 Disadvantages However, enterprises still have some imperfection such as low capital efficiency According to the ROE indicator in the last years, the profit that a company makes on all capital it uses is not effective compared to previous years The company may consider adjusting to operate more effectively on equity lu an The ROE and ROA have decreased and are no longer at a good level In the future, n va if the management does not come up with effective methods, the development of the The company's revenue in the most recent year increased but profits fell slightly ie gh tn to company will be difficult to guarantee p The company should consider adjusting the strategy accordingly, reducing costs and nl w increasing revenue from some other business activities d oa 2.2.4.3 Reasons an lu The company does not have a highly specialized economic and financial analyst, nf va but the accountant undertakes this task, so the analytical efficiency is not high oi lm ul The company does not have a wide marketing strategy, although it has invested more in technology such as creating an online shopping web site and not having an z at nh advertising strategy to bring customers more exposure to the technology platform The company also faces many restrictions in the management of machinery, z gm @ labor l The amount of capital used for fixed assets is still low, indicating that the m co company is still slow in scaling up an Lu n va ac th 54 si CHAPTER 3: SOLUTIONS TO IMPROVE THE EFFICIENCY OF CAPITAL USE AT 584 NHA TRANG SEA PRODUCT JOINT STOCK COMPANY 3.1 Development orientation of the company in the future With the increasingly rapid pace of change in the domestic economy and the world, in order to improve competitiveness, businesses must choose the right strategy and suit the business situation as well as the situation of the economy Therefore, the company has lu set general development directions for the following year: an n va - Keeping sesame and developing production and business activities, raising tn to production speed, increasing the company's revenue next year higher than the previous year gh p ie - Minimum expenses to increase profits, bring better efficiency for production and nl w business activities d customers oa - Improve product quality, improve designs, diversify items to attract more an lu oi lm ul nf make the best effort va - Improve the material and spiritual life for the company's employees so that they - Training and improving the professional capacity of leading officials z at nh - Invest in modernizing equipment, machinery and factories z 3.2 Solutions to improve the efficiency of capital use at 584 Nha Trang Sea @ gm Product Joint Stock Company l 3.2.1 Solutions for fixed capital m co 3.2.1.1 Revaluation of fixed assets an Lu The cost of a fixed asset and its residual value may not reflect its true value Therefore, the company should periodically evaluate its fixed assets so that their values n va ac th 55 si are in line with market prices In addition, it helps to manage the fluctuation of fixed assets in order to make plans for depreciation and handle damaged assets by repairing or reselling them moreover, enterprises may find that fixed assets are used less effectively to plan for more efficient use of resources There are also other types of fixed assets with high market prices after many years such as land and factories, the company should also re-evaluate to avoid confusion causing loss of the company's assets lu an 3.2.1.2 Take advantage of fixed asset capacity va Most of the company's machinery and equipment have not been used at full n tn to capacity Therefore, the consideration to increase the capacity of using machines is also a gh measure to save labor force, reduce raw material and labor costs, and avoid long-term p ie downtime leading to machinery broken nl w The company needs to have a specific plan in arranging production plans, d oa avoiding overlap in order to improve the productivity of machinery and equipment an lu 3.2.1.3 Improve the efficiency of investment in renovation of fixed assets va Science and technology development require the company to apply more modern ul nf machines to the production process, improve the process to meet the needs of customers oi lm The company should consider discarding outdated, outdated, heavily damaged machinery and replacing it with more modern equipment z at nh However, in order to purchase new equipment, the company needs to consider and z carefully evaluate the effectiveness of this activity From there, we can assess the @ gm suitability with the size of the business, bring the greatest efficiency as well as avoid m co l wasting capital an Lu n va ac th 56 si 3.2.2 Solutions for working capital 3.2.2.1 Cash management accordingly Cash helps financial operations of the company So the cash management in the business is very important Managers should focus on managing the company's cash to minimize solvency risks, increase the efficiency of using money and avoid financial fraud If the company reserves too little cash, it will lose the initiative in cash-need transactions or flexible solvency or investment opportunities lu an The company needs to determine a suitable amount of cash to meet the demand for n va regular activities such as: - Regular expenses in service of business and production activities gh tn to - Provision for unplanned expenses ie Provisions for possible risks of the enterprise - Provision for newly arising investment opportunities p - oa nl w 3.2.2.2 Inventory management d an lu Inventory accounts for a large part of the value of current assets As a company nf va operating in the manufacturing industry, the amount of inventory is usually very large oi lm ul Management should focus on managing inventory, focusing on production to meet the increasing demand in the holiday seasons of the year Avoiding goods shortages z at nh reduces sales Therefore, the planning of production and stockpiling of goods should be in z gm @ harmony, also avoiding the case of long-term stockpile stockpiling that results in loss, decrease in value or expiration l m co 3.2.2.3 Receivables management Receivables usually come from customers of the company good management of an Lu receivables helps the company to have a short debt recovery time to increase sales and n va ac th 57 si take advantage of the available cash To minimize receivables, the company may use the following measures: - Analyzing and assessing customers' credit ability to make appropriate plans and policies, avoiding excessive debt, capital appropriation - Closely monitoring the status of receivables, there are clear regulations on the rights and responsibilities of the parties regarding the time of debt payment, payment method, if any, there will be sanctions lu an - The company should have a department in charge of debt management and va collection, be able to persuade customers to pay, commit to recover debts, and n solve difficult situations in debt recovery p ie gh tn to d oa nl w oi lm ul nf va an lu z at nh z m co l gm @ an Lu n va ac th 58 si CONCLUSION For an enterprise, improving and using capital effectively is very important, determining the success of the company's production and business activities 584 Nha Trang Sea Product Joint Stock Company is a long-time operating enterprise in fish sauce lu and fisheries, the company has made constant efforts and efforts and achieved significant an achievements But in order to maintain and improve efficiency in the future, the company n va must try harder in the management and production gh tn to Although the internship time at 584 Nha Trang Seafood Joint Stock Company is not much, it helped me have practical experiences about the knowledge taught by ie p teachers in the school as well as in the professional working environment w oa nl I would like to thank 584 Nha Trang Seafood Joint Stock Company and Academy of Policy and Development for creating the opportunity to help us complete my d va an lu internship, thereby helping me gain a lot of knowledge for my future career I would like to express my special thanks to the accounting department of the nf oi lm ul company and Mr Doan Anh Tuan for following me closely during time to write graduation thesis and making detailed reports, giving a lot of attention and dedication to z at nh me Due to the limited time as well as the young level, it is inevitable errors in z teachers to be more complete and more practical m co l gm @ graduation thesis Therefore, I hope to receive sympathy as well as suggestions from the Best regards, an Lu ac th 59 n va Ngo Thi Truc Linh si lu an n va p ie gh tn to d oa nl w oi lm ul nf va an lu z at nh z m co l gm @ an Lu n va ac th 60 si