(Luận văn) financial statement analysis at song minh development investment joint stock company in the period of 2018 2020

ACADEMY OF POLICY AND DEVELOPMENT INTERNATIONAL SCHOOL OF ECONOMICS AND FINANCE lu an n va p ie gh tn to nl w GRADUATION THESIS d oa Topic: “Financial statement analysis at Song minh lu nf va an Development Investment Join Stock Company in the period of 2018-2020” Student: z at nh oi lm ul Supervisor: M.Sc Dang Thuy Nhung Le Xuan Thanh z ID: 5083402213 Class: TCCLC8.3 m co l gm @ Student an Lu Hanoi, Jun 2021 n va ac th i si ACADEMY OF POLICY AND DEVELOPMENT INTERNATIONAL SCHOOL OF ECONOMICS AND FINANCE lu an n va p ie gh tn to nl w GRADUATION THESIS d oa Topic: “Financial statement analysis at Song minh lu nf va an Development Investment Join Stock Company in the period of 2018-2020” Student: z at nh oi lm ul Supervisor: M.Sc Dang Thuy Nhung Le Xuan Thanh z ID: 5083402213 Class: TCCLC8.3 m co l gm @ Student an Lu Hanoi, Jun 2021 n va ac th ii si ACKNOWLEDGEMENTS SONG MINH Development Investment Joint Stock Company gave me a lot of experience on construction and the documents related to the company’s privacy I would like to thank and wish SONG MINH Development Investment Joint Stock Company success in the future I would like to thank the Academy of Development and Policy for giving me the opportunity to participate in a reality project and let me learn valuable knowledge in the year-period Finally, I would like to thank Mrs Dang Thuy Nhung for following lu closely and helping me to edit and build this thesis from the most basic stages an n va to the details so that I can complete the thesis p ie gh tn to Thank you sincerely! d oa nl w nf va an lu z at nh oi lm ul z m co l gm @ an Lu n va ac th iii si Table Categories Table 1.1: Contracts that the company get involved 25 Table 2.1: Balance sheet 35 Table 2.2 Income statement 44 Table 2.3 Cash flow statement 47 Table 2.4: Short term solvency ratios 50 Table 2.5: Long-term solvency ratios 52 Table 2.6: Asset utilization ratios 54 lu an Table 2.7: Profitability ratios 55 n va Table 2.8 DuPont Analysis 57 p ie gh tn to d oa nl w nf va an lu z at nh oi lm ul z m co l gm @ an Lu n va ac th iv si Charts, Pictures Categories Pictures 1.1: Organizational structure 26 Picture 1.2: Business orientation of SONG MINH 29 Chart 2.1 Assets, Liabilities and Owners' Equity structure of Song Minh 39 Chart 2.2 Current assets structure of Song Minh 41 Chart 2.3 Liabilities and Owners’ Equity structure of Song Minh structure of Song Minh 42 Chart 2.4 Short term solvency ratios 50 lu an Chart 2.5 Long term solvency ratios 52 n va Chart 2.6 Asset utilization ratios 54 to gh tn Chart 2.7 Profitability ratios 55 p ie Chart 2.8 DuPont Analysis 59 d oa nl w nf va an lu z at nh oi lm ul z m co l gm @ an Lu n va ac th v si Table of Contents OVERVIEW OF THE RESEARCH PROJECT CHAPTER 1: LITERATURE REVIEW ON FINANCIAL STATEMENT ANALYSIS 1.1 Overview of financial statements 1.1.1 Definition of financial statements 1.1.2 Functions of financial statements 1.1.3 Categories of financial statement 1.2 Overview of the financial statements analysis lu n va 1.2.2 Roles of financial statements analysis 1.2.3 Process of financial statement analysis – EIC analysis Financial statements analysis methods 10 gh tn to Definition of financial statements analysis ie an 1.2.1 p 1.2.4 Factors affecting financial statements analysis 20 oa nl w 1.3 Subjective factor 20 1.3.2 Objective factor 21 d 1.3.1 nf va an lu CHAPTER 2: FINANCIAL STATEMENT ANALYSIS OF SONG MINH lm ul DEVELOPMENT INVESTMENT JSC.’S FROM 2018 TO 2020 22 z at nh oi 2.1 Overview of SONG MINH Development Investment Join Stock Company 22 Establishment and Development 22 2.1.2 Functions and areas of activity 23 2.1.3 Organizational structure 26 2.1.4 Business orientation of SONG MINH Development Investment z 2.1.1 m co l gm @ an Lu Join Stock Company toward 2030 27 n va ac th vi si 2.2 Financial statement analysis at SONG MINH Development Investment Join Stock Company in the period of 2018-2020 29 2.2.1 EIC analysis 29 2.2.2 Balance sheet analysis 35 2.2.3 Income statement analysis 43 2.2.4 Cash flow statement analysis 47 2.2.5 Ratio analysis 49 2.2.6 DuPont identity 57 2.3 Assessment 59 lu an n va 2.3.1 Advantages 59 2.3.2 Limitations 60 tn to 3: gh CHAPTER SOLUTIONS TO IMPROVE THE FINANCIAL p ie SITUATIONS OF SONG MINH DEVELOPMENT INVESTMENT JSC nl w TOWARD 2025 63 Economic Background towards 2025 63 3.2 SWOT analysis 65 3.3 Solutions to improve the financial situations of Song minh d oa 3.1 nf va an lu lm ul Development Investment Join Stock Company 67 Solution for the inefficient in generating profits 67 3.3.2 Solution for lack of short-term receivable management 69 z at nh oi 3.3.1 z CONCLUSION 71 @ m co l gm REFERENCES 72 an Lu n va ac th vii si OVERVIEW OF THE RESEARCH PROJECT Origin of the study: In the continuous development of the country's economy, the field of construction, technical infrastructure and transportation, is an important area not only for the country but also especially important to large, small businesses, at home or abroad With the repair of infrastructure, a large number of companies can face many obstacles when doing this work when they not know how to improve, repair as well as related regulations There are a few subsidiaries formed by large cooperation with expertise related to construction, lu infrastructure, and transportation However, it is extremely difficult for both an n va small domestic and foreign companies to work directly in this field Companies tn to will spend a lot of time and resources to improve their understanding of construction fields, technical infrastructure, and not only that it can also cause gh p ie obstacles to the development of companies, enterprise Therefore, the w development of construction companies is becoming bigger and bigger oa nl In order to expand and develop over time, Song minh Development d Investment Joint Stock Company needs to use the Financial statement analysis lu nf va an This would help to understand more about its financial situation, the operation and figure out the weakness and then create several solutions fit to the company lm ul situation With the understanding about the importance of financial statement z at nh oi analysis, I chose the graduation thesis topic “Financial statement analysis at Song minh Development Investment Joint Stock Company in the period of 2018-2020” z @ gm Objective of the Study co l Object of the Study is: m - Common goal: analyzing the financial situation of Song minh an Lu Development Investment Joint Stock Company in the period of 2018- ac th n va 2020 si - Detail goals: the detail goals include main aspects: o Literature review on financial statements analysis o Financial statement analysis of Song Minh Song minh Development Investment Joint Stock Company in 2018-2020 o Solutions to improve the financial situations of Song minh Development Investment Joint Stock Company toward 2025 Scope of the Study - Space of research: Song minh Development Investment Joint Stock Company lu - Time implement assess: 2018- 2020 an - Time implement resolve: 2021- 2025 va n - Content of research: gh tn to - The subject of research: Financial activities at Song minh Development Investment Join Stock Company ie p - The objective of research: Financial activities nl w Research Methodology of the study d oa - Data collection method: collect the information through the financial an lu statement and further documents about Song Minh nf va - Processing data method: process the correct data from financial statements lm ul and further documents about Song Minh for the analysis - Using analysis methods: EIC analysis, common-size analysis, trend z at nh oi analysis, ratio analysis, DuPont identity Structure of the study z gm @ The graduation thesis consists chapter: - Chapter 1: Literature review on financial statement analysis l co - Chapter 2: Financial statement analysis at Song minh Development m Investment Join Stock Company in the period of 2018-2020 an Lu - Chapter 3: Solutions to improve the financial situations at Song minh n va ac th Development Investment Joint Stock Company si CHAPTER 1: LITERATURE REVIEW ON FINANCIAL STATEMENT ANALYSIS 1.1 Overview of financial statements 1.1.1 Definition of financial statements According to the Institute of Certified Public Accountants (AICPA): “The financial statement is created for the purpose of periodically evaluating or reporting about the investing situation and the result achieved The financial statement system reflects the combination of recorded events, accounting principles and the evaluation apply mainly on noting the events lu an According to Vietnam Accounting system (2010), Financial statement is n va a kind of accounting report, reflecting a general overview of assets situation, tn to capital, the situation and result of a firm’s business activities in a specific period gh of time With that, Financial statements not only provide the necessary for the p ie outsiders of the company like: investors, creditors, tax organization, … but also provide the information for the firm manager, help them evaluate, analyze the nl w oa financial situation like the results of the firm production activities Financial d statement is a combination of a balance sheet, income statement, cash flow nf va an lu statement and notes According to the scope of the study, the author applies the definition for lm ul financial statements from Viet Nam Accounting system (2010) in this thesis z at nh oi 1.1.2 Functions of financial statements According to Nguyen Nang Phuc (2009), financial statements play a really z important role in analyzing the financial activities of the company In addition, @ l gm it is also important to business operations All of that are express to several key opponents: co m - The financial statement provides an overview about the economy and an Lu finance, this helps in analysis of the situation and the outcome of ac th n va productivity, it also analyzes the current financial situation of the company si period (2018-2020) showing the intension of the company, however the total asset turnover increased significantly in 2019 but decreased in 2020 The assets turnover in 2020 declined 33% compared to 2019, the assets of the company had not been used properly in 2020 The company faced the struggle on managing the assets The profit margin increased significantly in 2019 from a very low point of -13.14% to 0.90% The profit margin in 2020 continued to increase by 1.16 times the figure for 2019, to about 1.94% This mean that the net revenue in 2020 generated 1.19 dong in profit With the small amount of profit, the lu company still tried to improve its ROE an n va The equity multiplier also increased over time The figure for 2018 was tn to 1.19, equity multiplier declined slightly to 1.11 however, due to the struggle in 2020, the number increased by 17%, get the number from 1.11 to 1.29 This gh p ie growth was mainly from a short-term debt in 2020 w Through that, the growth of ROE was mainly on two factors: the profit oa nl margin and the equity multiplier The increase from profit margin was a good d sign for the company because it making some profit despite its struggle in the lu nf va an beginning The second increase from equity multiplier was a very bad signal, the factor for this increase was mainly on debt This situation would contain a lm ul large amount of risk potential z at nh oi z m co l gm @ an Lu n va ac th 58 si lu an n va p ie gh tn to d oa nl w nf va an lu 2.3 Assessment 2.3.1 Advantages z at nh oi lm ul Chart 2.8 DuPont Analysis z gm @ After analyzing the performance of Song minh Development Investment m co advantages from the company are quite significant l Joint Stock Company over the 3-year period of 2018, 2019, 2020, the an Lu n va ac th 59 si Firstly, the company mainly invested in the product as the Net revenue from sale of goods in 2019 and services shot up remarkably 4.7 times over the previous year Secondly, the slow improvement of the company on effectively using capital In 2020, cost of goods sold and services rendered dropped 17.75% showing that the company is on the rise to optimize its production Thirdly, the company always tries to push to finish the uncompleted project in order to give it right on schedule for their partner, even pushing hard in the covid-19 situation lu Fourthly, the company supports itself and does not increase the operations an n va with borrowing status Due to the total equity being owner’s equity, the tn to company will face less risk of default on debts, more flexibility and last but not least the company has the capacity to add more debt if required With this, the gh p ie total return will not be divided or shared with other shareholders w Fifthly, there is a source of cash to meet the payment immediately to fasten oa nl the company due to the lack of company's inventory d Mover, Song Minh company knows their disadvantages and tries to lu 2.3.2 Limitations nf va an improve them The growth of the company indicates that information lm ul 2.3.2.1 The inefficient in generating profits z at nh oi The performance on creating profit was very poor, the net profit after tax of the company was too low (-110,743,136 VND in 2018, 44,394,355 in 2019, z 73,724,311 in 2020) This inefficient caused by many factors: @ l gm - The inefficient in company management: The company has a large percentage of cash in its assets, the company is co m in the process of equitization so it turned cash into other short-term receivables an Lu But this just basically not helping the company operation but only reducing the n ac th 60 va cash and making unknown use of that cash si - The lack of long-term asset: The lack of long-term assets may help reduce the risk and the commitment but it also pushes the cost of services rendered Song minh Development Investment Joint Stock Company is a construction company so the need for long-term assets is necessary The lack of all sorts equipment makes the company cost a lot to hire - Most of the company’s equity still from the owner The company is fairly new so it used too much of its own equity and it does not have the capital increase from shareholders Still 2020, the company lu still has 77.2% of owner’s equity in total equity The owner has the money for an n va the operation but put the company in the process of equitization, this can be tn to seen through the amount of cash converted into a short-term receivable (from more than billion VND in 2018 to only almost billion VND in 2019) The gh p ie company was in the process of equitization, but 100% of the company was still w under the original owner oa nl - Fixed cost are too high: d The company also took on a lot of large projects at the same time, this also lu nf va an caused the company to lack of cash to operate the company smoothly The push in order to finish the project on time is very harsh and the projects all have a lm ul long time to finish In 2020, the company needs to have Short-term debts The z at nh oi cash paid to people providing goods and services of the company over the years were very high due to the lack of long-term assets Song Minh had to rent z all of its tools in the operation from transportation to equipment @ gm 2.3.2.2 Lack of short-term account receivable management co l The company is granted to poor credit risks and the collection efforts are m ineffective This situation made the short-term account receivable shoot up to an Lu 76.1% and 79.1% The receivable turnover also pointed out the highest figure of the company was only 0.59 in 2019 and the industry figure was 5.72 The n va ac th 61 si number helped find that the average collection period of 2020 was far too long 964 days, while the average collection period was only 63.81 days (compared with 848 days in 2018, 620 days in 2019) The company was in the process of equitization, but 100% of the company was still under the origin owner This might be a good move after the company proves itself in the field so it can provide the evidence on its efficiency in operating in order to call out for more capital lu an n va p ie gh tn to d oa nl w nf va an lu z at nh oi lm ul z m co l gm @ an Lu n va ac th 62 si CHAPTER 3: SOLUTIONS TO IMPROVE THE FINANCIAL SITUATIONS OF SONG MINH DEVELOPMENT INVESTMENT JSC TOWARD 2025 3.1 Economic Background towards 2025 The industry has many complicated impact factors, there are three main factors from long run to short run: - Demographic factors: create a potential long-term growth rate - Economic factor: affecting the investment decision of the customer in midterm lu an - Legal system: restructure the competitive environment, have an important n va affection on business in short-term tn to The demographic factors: due to the youth population and the high ie gh urbanization rate of Viet Nam are the two factors that push the need of p construction, focus on households, factories, offices and the urban infrastructure nl w The youth population has not just become abundant in human resources but can oa also be considered as the motivational trend of the need in construction for the d long-term The high urbanization rate of Viet Nam has pushed the need for an lu households, commercial and public infrastructure and urban infrastructure nf va The economic factor: the growth rate of the economy is high, stable and the lm ul slightly low control on inflation and interest rate are the benefits for the z at nh oi construction industry The need for construction has pushed Viet Nam economy to be more stable and have a growth rate on the top of the world z The legal system: construction is a business industry with the condition, @ l gm every construction activity is controlled by the government through legal documents The construction legal system of Viet Nam has not keep up with the co m development speed of the economy- society and needs to be adjusted continuously an Lu over time The improvement of the legal system is a long complicated process in ac th 63 n va order to work properly si In all of the industry, the Covid-19 only has an average impact on the construction industry The negative impact of the Covid-19 was mainly through discontinue of the economy and the reduction in the need of investment The discontinue of the economy has direct effect to short-term growth rate of the industry; opposite that the reduction of investment need would has affect in the long-term Although the industry only needs to face an average impact, it is still very rough for the construction company with big projects but it is just a small business and still has a low net profit margin The competitive pressure between contractors is also very high in this tough period, with the competitive strategies mainly on lu an price making the revenue and net profit margin fall n va The Covid-19 slows everything down but due to the strict rules from the tn to government and the agreement of the people, Viet Nam has basic control on all ie gh of the previous impact of Covid-19 in the community Now Viet Nam is facing p another big wave of Covid-19, but with the expectation from the abilities of the government and the large amount of vaccine, the prediction of coming back to nl w oa work in the smallest amount of time is understandable The large amount of d material and human resources inside Viet Nam would meet the need of the lu nf va an construction and have a small impact on the shortage from global supply The prospects of the construction industry depend on the economic recovery lm ul and prospects in every industry, which rely on corresponding customer groups z at nh oi affected by diseases The non-residential house construction has the largest impact, the impact on residential houses was less, and the infrastructure on the z other hand might have benefited if the government increased the public @ gm investment in order to push the economic recovery co l The prospects of the construction industry through the positive scrip about m the economy recovery Firstly, the impact of Covid-19 to Viet Nam economy was an Lu low compared to others, because of the control on community infection and wide ac th 64 n va range supporting solutions deployed on time Secondly, Viet Nam has stable si macro elements, this will push the economy back on its feet after the Covid-19 wave The infrastructure construction would have benefits if the government increased public investment The government considered that increase the public investment would be a perfect tool to push the economy However, the government also has many difficulties in order to this due to the limited budget, especially plus the disease supporting policy 3.2 SWOT analysis Strength: - The infrastructure construction would have benefits if the government lu an increase the public investment The government considered that increase va n the public investment would be a perfect tool to push the economy tn to recovery ie gh - According to the company’s profiles, when all the projects are finished, the p company will make quite a large profit from 70% of the process (50% of nl w the payment) d oa - With a more appealing financial situation, the company can increase the an lu capital through calling out for shareholders and invest in long-term to Weakness: nf va improve the efficiency in operation lm ul - The construction legal system of Viet Nam has not keep up with the z at nh oi development speed of the economy- society and need to be adjust continuously over time z - Due to the wave of Covid-19, it is still very rough for the construction @ l gm company with big projects but it just only a small business and still have a low net profit margin co m - The company has an inefficient in company management because the an Lu company have a large percentages of cash in its assets n va ac th 65 si - The company not have any long-term asset, fixed cost are too high This make it inefficient in generating profit - most of the company’s equity still from the owner while the company is in the need for capital - The company also have a poorly management in account receivable Opportunities: - The construction industry is very important to Viet Nam, which is a developing country In the long run, due to the youth population and the high urbanization rate of Viet Nam, the construction industry is already in the need lu an - The growth rate of the economy is high, stable and the slightly low control n va on inflation and interest rate also help this business infrastructure sector, which the company is now operate in, might have ie gh tn to - The Covid-19 only has an average impact on the construction industry The p benefit if the government increase the public investment in order to push the economy recovery nl w oa - The large amount of material and human resources inside Viet Nam would d meet the need of the construction company and the company only have a lu nf va an small impact on the shortage from global supply - The company have many projects that about to end and it can receive the z at nh oi Threats: lm ul payment for it - The competitive pressure between contractor also very high in this tough z period, with the competitive strategies mainly on price make the revenue @ gm and net profit margin fall co l - The government also has many difficulties in order to increase the public m investment due to the limited budget, specially plus the diseases supporting an Lu policy n va ac th 66 si - Due to the lack in account receivable management, the company can take a lot of time to receive all the payment - The profile of the company might not look appealing to the investors, this make it hard for the company to expand - The continuous of social distancing from Covid-19 will make the projects slowing down and this will make the financial situation of Song Minh more badly overtimes 3.3 Solutions to improve the financial situations of Song minh Development Investment Join Stock Company 3.3.1 Solution for the inefficient in generating profits lu an - Solution for the in efficient in company management: n va The company should establish an optimal financial plan with an accurate Because cash is a non-profitable asset, the company's most essential purpose ie gh tn to cash flow in order to operate the company smoothly p is to maximize the amount of cash in circulation In the meantime, because cash nl w is required to run the business, Song Minh Development Investment Joint Stock d oa Company must acquire the necessary funds on a daily basis Cash management an lu refers to the control of a company's liquid assets If the cash flow is excessive, the organization would miss out on other chances On the other hand, the 2020 issue nf va will repeat itself if the amount of money in operation is incorrect As a result, one lm ul of the most crucial things for the company to consider is how to efficiently invest z at nh oi in stock The financial-accounting department of the company should make a plan on z receipt and expenses in order to recognize the need of the company The cost of @ gm goods sold was very high in both 2019 and 2020, and the figures did not reduce co l in a significant way m The company also needs to improve on its accounting report The accounting an Lu sector should write down the payment on the project in several periods, not write ac th 67 n va down the combination of all payments from one project This would help the si company to calculate the use of cash so with that it could improve the efficiency of cash management - Solution for the lack of long-term asset: For the long term process, the company is in the need of long-term assets to optimal the cost of goods sold In order to afford the long-term assets, the company faces on big problems, which is the lack of capital With that in mind, it can convert its short-term receivable back or call for capital from shareholders With long-term assets like tools, machines, offices, … the company can decrease its cost from operating The owner of the company needs to make a commitment with the industry lu an which the company targets too, so the company can have long-term assets The va company should develop a plan for 15 years to find out what is the appropriate n - Solution for high fixed cost: ie gh tn to industry for it p The company has been in the field for over years and has the same offer nl w with the service provider, so in order to reduce the fixed cost, it needs to calculate d oa the right amount of payment needed to run the projects With that, the company nf va monthly, annually, … an lu can negotiate again with the service provider with a correct amount of payment lm ul The company should also invest on the long-term assets, this will help the company reduce the fixed cost The company should start with transportation and z at nh oi offices When the company not have a target in mind for the industry, transportation is needed in all of the three industry the company involved in z gm @ - Solution for most of the company’s equity still from the owner l The company is fairly new so it used too much of its own equity and it does m co not have the capital increase from shareholders This problem can be solved by a call for capital through the future shareholder But this can be very tough for the an Lu company, mainly from the view of the current financial situation n va ac th 68 si In conclusion, in order to have an efficient performance on generating profits, Song minh Development Investment Joint Stock Company needs to make its profile more appealing through the investor and also it needs to make sure that the amount of future projects will be appropriate for the size of the company 3.3.2 Solution for lack of short-term account receivable management The company should improve vastly on management tightly the account receivable: Managing the account receivable is a very important and complicated object in managing a company With Song Minh Development Investment Joint Stock Company, the account receivable occurred a large amount in current assets (up to lu an 79.1% of total current asset) The increase in account receivable also pulls the va debt management expenses and the interest in expenses for loan repayment to n tn to increase Moreover, this increase also makes the risk of the company higher and ie gh makes the debt become long-term hard to receive due to bankruptcy of the partner p To overcome this, the company must first conduct extensive research on the nl w investor, the source of funds, and other contractors participating in the project d oa The corporation must pay attention to the contract condition and the price for late an lu payment when negotiating and signing the contract, as a result of which the way nf va company will be able to collect the money from the contract in a more effective lm ul The second is to assess and aim to improve the efficiency of receivables z at nh oi procedures Money transfer, client credit monitoring, and debt collection are the three main procedures involved in receivings z gm @ The third step is to create indicators to track account receivables performance Managers will be able to view and assess the performance of their l co accounts receivables using these metrics Accounts receivable turnover, accounts m receivable-to-revenue ratio, and debt age arrangement are three main metrics that an Lu companies should use to assess the success of their receivables These criteria n va ac th 69 si must meet three standards: they must be consistent, standardized, and informed and understood by the company's key divisions The fourth step is to maintain a positive relationship Customers' interactions and connections with various departments inside the company are examples of relationships (such as sales departments) To encourage clients to pay their debts on time, the company's debt collection department can announce the terms of getting discounts or offer further information about the items and relevant papers to establish a friendly, trustworthy relationship The connection between debt accounting and the sales department is critical within the organization since any contract from the sales department must be lu an recognized right once To avoid any loss or omission of client receivables, debts n va should be placed on the watch list as away p ie gh tn to d oa nl w nf va an lu z at nh oi lm ul z m co l gm @ an Lu n va ac th 70 si CONCLUSION Construction, technical infrastructure and transportation, are a longstanding field in the business environment in Vietnam, it requires a lot of expertise and information about these fields as well as experience with the continuous development of the country's economy, the field of construction, technical infrastructure and transportation, is an important area not only for the country but also especially important to large, small businesses, at home or abroad Song Minh Investment and Development Joint Stock Company is a construction company that has just been established for more than years without much experience or long-term partner, but the company is still trying its best so Song lu an Minh is on the way to developing va In recent year, the economy has had a huge fluctuation due to the Covid-19 n tn to situation Outside the duty of paying taxes, the company also cares about the ie gh staff’s life situation and their salaries, also improving the working environment, p while paying contributes to the growth of Vietnam nl w The company still has several problems in business operation so it needs to d oa be said that the company needs solutions for these situations to improve the nf va further in the future an lu company’s optimal profit Given the current situation, the company can develop lm ul This thesis has analyzed the business activities and the disadvantages of the company However, with the limitation of time and knowledge, there are some z at nh oi faults in the graduation thesis that could not avoid I would like to receive feedback from teachers in order to refine the graduation thesis z m co l gm @ an Lu n va ac th 71 si REFERENCES Associate professor of PhD Nguyen Nang Phuc, 2009, “Financial statement analysis” textbook, National Economics University Michael E Porter, 2016, Competitive Strategy: Techniques for Analyzing Industries and Competitors Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, 2011, “Corporate Finance” textbook, McGraw-Hill Irwin Charles H Gibson, 2011, “Financial Reporting and Analysis” textbook, The University of Toledo, Emeritus lu Song Minh Development Investment Joint Stock Company’s profile an n va Financial statements of Song Minh in 2018, 2019, 2020 tn to https://www.stockbiz.vn ie gh https://www.investopedia.com/ p United Nations, 2021, World Economic Situation and Prospects 2021, United Nations, New York 2021 nl w d oa 10 United Nations, 2020, World Economic Situation and Prospects 2020, an lu United Nations, New York 2020 nf va 11 United Nations, 2019, World Economic Situation and Prospects 2019, United Nations, New York 2019 lm ul 12 https://www.gso.gov.vn/en/data-and-statistics/2021/01/socio-economic- z at nh oi situation-in-the-fourth-quarter-and-the-whole-year-2020/ 13.https://www.gso.gov.vn/en/data-and-statistics/2020/01/socio-economic- z gm @ situation-in-the-fourth-quarter-and-the-whole-year-2019/ 14.https://www.gso.gov.vn/en/data-and-statistics/2019/05/report-social-and- l m co economic-situations-in-the-fourth-quarter-and-the-year-of-2018/ an Lu n va ac th 72 si