Financial statements analysis of vinamilk (2012 2014)

MINISTRY OF EDUCATION AND TRAINING HCM CITY UNIVERSITY OF FOREIGN LANGUAGES AND INFORMA TION TECHNOLOGY DEPARTMENT i OF INTERNATIONAL BUSINESS ADMINISTRATION GRADUATION PAPER / FINANCIAL STATEMENTS ANALYSIS OF VINAMILK (2012 - 2014) Student's name: LUONG KIEU Student's code: IlDH490698 Advisor: PHAN THI HONG HANH, MSc JUNE, 2015 Ho Chi Minh City - Viet Nam June9th, 2015 ADVISOR'S COMMENT Title: FINANCIAL STATEMENTS ANALYSIS OF VINAMILK (2012-2014) Author: LUONG KIEU Class: KTll 02 Advisor: PHAN THl HONG Hh.NH (MSc) : Contents: Chapter wrote about the literature review on financial analysis.In chapter 2, analysis of data, financial circumstance of Vinamilk as well as discussions and personal ideas were presented Some solutions were suggested with the aim of pushing upVinamilk Corporation's financial effectiveness in Chapter •: Practicality: The writer went into deep details on the structure of balance sheet and income statement Moreover, cash flow statements were also taken into account with the comparisons among cash flow from operations, cash flow from financing and cash flow from investment activities Besides, financial ratios and Dupont analysis were mentioned, being accompanied by discussions with clear explanation and strong arguments, which are very helpful for investors who are interested in the company These make the paper have practical sense and be used as a reference for concerned parties However, although some remedies for boosting Vinamilk's performance in finance field were recommended, they were too general to be put into action They should be made in more details with specific plans to implement, estimated costs to be spent etc •: Presentation:clear structure and layout : General Assessment:VeryGood : Suggestion: Qualified to defense in front of the examinations committee Advisor, Phan Thi Hong Hanh ACKNOWLEDGEMENTS First and foremost, I am deliriously happy and feel lucky to have family and friends who always give encouragement and motivation, and inspire me to successfully accomplish this essay Moreover, I would like to express my sincere gratitude to my advisor, Ms Hanh Hong Thi Phan, who enthusiastically and endlessly supports me to complete this research She has not only provided useful instructions in specific knowledge, but also in the proper presenting method in order to perfect my thesis In addition as a final-year student in Department of International Administration of Ho Chi Minh City University of Foreign Business Languages and Information Technology, I would like to say thanks to the faculty for giving me an opportunity to this paper Furthermore, all the lecturers are very enthusiastic and devoted to teaching students I am grateful for all the knowledge that lecturers imparted to me which is the foundation for me to this research better Finally, there would be some shortage in this essay due to limitation of time and knowledge; I will genuinely appreciate to receive all valuable comments from lecturers and readers I ABSTRACT These days, the economy of Vietnam has recovered and Vietnam has participated in many world economic organizations, there are a lot of industries and businesses appear in many different fields However, the investment and business's operation still include many potential risks Therefore, businesses and investors need a useful tool to help them make the correct decisions, completely prevent from risks and bring benefits in the future through financial statements analysis Basing on periodic analysis of the financial situation in the past and present will assist analysts provide the precise estimate of the possibility of the economic problems in the future Besides that, tools and techniques of financial statement analysis are used to point out strengths and weaknesses of the enterprise, problems that company are confronting with Therefore, they can make a judgment and offer solutions and improve competitiveness of enterprise The research in this paper is carried out by employing information in VINAMILK's website, websites of securities companies, and Proquest database The author used comparable approach and financial ratios analysis to indicate financial health and financial performance of VINAMILK in the period of 2012-2014 Moreover, this thesis also suggested some measures for the financial improvements in the future II LIST OF CONTENTS Title Page Advisor assessment Acknowledgelnents i Abstract ii List of Contents iii List of Tables vi L'1st fF'19ures Vll INTR DUCT ION I Research Objectives I Scope of the research Research tnethods Con ten ts CHAPTER I " 1: LITERATURE REVIEW Financial Statements 1.1 Definition of Financial Statements I Types of Financial Statements 1.2.1 Balance sheet 1.2.2 IncOine statelnent 1.2.3 Statement of Cash flows I 2.4 Statement of Shareholders' 4 equity I Users of Financial Statements Financial Statement Analysis 2.1 Definition of Financial Statements Analysis 2.2 Obj ecti ves of Financial 2.3 Financial Statements Statements Analysis Analysis techniques 2.3.1 Steps in the financial statements analysis framework 2.3.2 Financial Statements analysis methods 2.3.2.1 Horizontal analysis 2.3.2.2 Vertical analysis 2.3.2.3 Financial ratios analysis 2.3.2.3 I Liquidity ratios 2.3.2.3.2 Debt Uti Iization ratios 2.3.2.3.3 Assets Utilization ratios 2.3.2.3.4 Profitabi lity ratios 2.3.2.3.5 Price ratios Dupont systeln analysis 7 8 9 10 11 12 13 iii CHAPTER 2: VINAMILK'S FINANCIAL STATEMENTS ANALYSIS MacroeconoHlic analysis 15 15 II Industry analysis 18 I Advantages of dairy industry G'rowIng cOInpetItIon Challenges to Vietnamese dairy industry 11I.OVER VIE W OF VINAMILK 18 19 20 21 I VINAMILK' s Profile 2I Historical background and development 22 Principal business activities ofVINAMILK 23 Value chain of VINAMILK 24 IV Financial Statements Analyis ofVINAMILK (2012-2014) Financial tatements analysis 215 Error! Bookmark not defined 1.1 Balance sheet analysis 25 1.1.1 Analyzing asset structure of VNM (2012-2014) 1.1.2 The proportion of current assets in total assets ofVNM (2012-2014) 1.1.3 The proportion of long-term assets in total assets of VNM (2012-2014) 1.2 Analyzing VNM's structure of capital resources (2012 - 2014) 25 27 29 30 1.3 1ncoIne stateInent analysis 34 1.4 Cash flows statement analysis 38 1.4.1 1.4.2 1.4.3 Ratio Changes in cash flows from operating activities Changes of cash flows from investing activities Changes of cash flows from financing activities Analysis 2.1 Liquidity ratios 2.1.1 Current Ratio 2.1.2 Quick Ratio 2.2 Debts Uti Iizati on Ratios 2.2.1 Debts-to-Equity Ratio 2.2.2 Total debts to Total assets Ratio 2.2.3 Times Interest Earned Ratio 2.3 Asset Utilization Ratio 2.3.1 Receivables Turnover 2.3.2 Average Collection Period 2.3.3 Inventory Turnover 2.3.4 Fixed asset turnover 388 39 400 422 42 42 433 43 43 44 44 45 45 466 46 47 IV 2.3.5 Total Asset Turnover 2.4 Profitability Ratios 47 48 2.4.1 2.4.2 2.4.3 2.4.4 2.5 Du 48 48 49 49 50 Gross Profit Margin Ratio Net Profit Margin Ratio Return on Assets (ROA) Return on Equity (ROE) Pont Analysis 2.6 Price Ratios 2.6.1 Price to Earnings (PIE) 2.6.2 Dividend Yield CHAPTER 3: RECOMMENDA nONS I Assets structure improvements Revenues ilnprovelnents Cost of goods sold improvements 51 51 52 53 53 54 566 CON C L U SION 588 Ref eren ce List 589 Appendix v LIST OF TABLES Title Page Table 2.1: Principal business activities of VINAMILK 23 Table 2.2: Changes in total assets ofVNM (2012-2014) 25 Table 2.3: Changes in total liabilities of VNM (2012-2014) 30 Table 2.4: Changes in owners' equity of VNM (2012-2014) 33 Table 2.5: Cash flows from operating activities (2012-2014) 38 Table 2.6: Cash flows from investing activities (2012-2014) 40 Table 2.7: Cash flows from financing activities (2012-2014) 40 Table 2.8: Comparison among net cash flows from three activities (2012-2014) 41 Table 2.9: Du Pont Analysis (2012-2014) 50 VI LIST OF FIGURES Title Page Figure 1.1: Du Pont analysis model 14 Figure 2.1: Vietnam GDP growth rate (2012-2014) 15 Figure 2.2: Vietnam inflation rate (2012-2014) 15 Figure 2.3: Vietnam consumer price index (CPl) (2012-2014) 16 Figure 2.4: Vietnam interest rate (2012 - 2014) 16 Figure 2.5: Vietnam exchange rate (2012-2014) 17 Figure 2.6: Vietnam GDP per capita (2012-2014) 18 Figure 2.7: Market share in fresh milk 19 Figure 2.8: Logo of VINAMILK 21 Figure 2.9: Distribution channel of VINAMILK 24 Figure 2.10: Value chain ofVINAMILK 25 Figure 2.11: The changes in total assets (2012-2014) 26 Figure 2.12: The proportion of current assets in total assets ofVNM (2012-2014) 27 Figure 2.13: The proportion oflong-term assets in total assets ofVNM (2012-2014) 29 Figure 2.14: The changes in capital structure (2012-2014) 31 Figure 2.15: VNM's operating overview (2012-2014) 34 Figure 2.16: Changes in cost elements during 2012-2014 35 Figure 2.17: VNM' Selling expenses during 2013-2014 36 Figure 2.18: VNM's total revenue and profit before tax (2013-2014) 37 Figure 2.19: Current ratio (2012-2014) 42 Figure 2.20: Quick rati (2012-2014) 43 Figure 2.2 I: Debts to equity ratio (2012-2014) 43 Figure 2.22: Total debts to total assets ratio (2012-2014) 44 Figure 2.23: The times interest earned ratio (2012-2014) 44 Figure 2.24: Account receivable turnover (2012-2014) 45 Figure 2.25: Average collection period (2012-2014) 46 Figure 2.26: Inventory turnover (2012-2014) 46 Figure 2.27: Fixed asset turnover (2012-2014) 47 VII Figure 2.28: Total asset turnover (2012-20 14) Figure 2.29: Gross profit margin ratio (2012-2014) 47 48 Figure 2.30: Net profit margin (2012-2014) 48 Figure 2.31: Return on assets (ROA) (2012-20 14) 49 Figure 2.32: Return on Equity (ROE) (2012-2014) 49 Figure 2.33: Du Pont analysis (2012-2014) 50 Figure 2.34: Price to earnings ratio (2012-2014) 51 Figure 2.35: Dividend yield (2012-2014) 52 VIII Vietnam Dairy Products Joint Stock Company Consolidated statement of cash flows for the year ended 31 December 2013 (I ndirect method - continued) Form B 03 -DN/HN Code 2013 VND Note 2012 VND CASH FLOWS FROM FINANCING ACTIVITIES Payments Payments for shares repurchases of dividends Net cash flows from financing Net cash flows during (50 = 20 + 30 +40) activities theyear Cash and cash equivalents beginning of theyear atthe Effect of exchange rate fluctuations cash and cash equivalents on Cash and cash equivalents at the end of the year (70 = 50 + 60 +61) 32 36 (525,442,959) (3,167,235,049,800) (1,982,321,000) (2,222,994,056,000) 40 (3,167,760,492,759) (2,224,976,377,000) 50 1,494,193,637,187 (1,904,069,717, I 06) 60 1,252,120,160,804 3,156,515,396,990 61 (668,472,041) (325,519,080) 2,745,645,325,950 1,252,120,160,804 70 28 February 2014 Prepared by: LJlL./ ~_/ Le Thanh Licm Chief Accountant The accompanying \, l \ I I {i)j/ I L/ ~' li Iv'f Ngo Tili Tim Trang Exec71tive Director - Ffmll1r:e notes are an integral part oflhese r:onsolidatedjinancia/ statements 13 The accompanying notes are an integral part of these consolidated financial statements Vietnam Dairy Products Joint Stock Company and its subsidiaries Consolidated balance sheet as at 31 December 2014 (continued) Form B 01 - DNIHN Code Note 31/12/2013 VND 31/12/2014 VND Long-term assets (200 = 210 + 220 + 240 + 250 + 260 +269) 200 10,247,828,541,941 9,856,483,929,198 Accounts receivable - long-term Other long-term receivables 210 218 7,395,303,671 7,395,303,671 736,666,667 736,666,667 Fixed assets Tangible fixed assets Cost Accumulated depreciation Intangible fixed assets Cost Accumulated amortisation Construction in progress 220 221 222 223 227 228 229 230 Investment property Cost Accumulated depreciation 240 241 242 Long-term investments Investments in associates and joint-ventures Other long-term investments Allowance for diminution in the value of long-term investments 250 259 (4,857,290,601) (10,248,632,262) Other long-term assets Long-term prepayments Deferred tax assets Other long-term assets 260 261 262 268 15 16 341,541,338,443 183,505,250,834 150,793,168,409 7,242,919,200 295,112,796,930 171,151,838,315 115,300,622,640 8,660,335,975 Goodwill 269 17 160,706,939,654 174,463,919,182 25,770,138,060,957 22,875,414,056,636 TOT AL ASSETS (270 = 100 + 200) 8,890,084,022,717 7,548,188,780,138 11,782,649,084,362 (4,234,460,304,224 ) 538,207,032,321 691,495,740,057 ( 153,288,707,736) 803,688,210,258 8,918,416,535,379 7,849,058,771,126 11,147,267,493,199 (3,298,208,722,073) 531,485,413,625 690,742,242,273 ( 159,256,828,648) 537,872,350,628 13 147,725,868,615 179,594,679,077 (3 1,868,810,462) 149,445,717,001 176,332,062,888 (26,886,345,887) 14 700,375,068,841 318,308,294,039 325,220,122,483 380,012,236,959 284,629,299,345 43,927,626,956 10 II 12 252 258 270 The accompanying notes are an integral part of these conso/idatedjinancial statements Vietnam Dairy Products Joint Stock Company and its subsidiaries Consolidated balance sheet as at 31 December 2014 (continued) Form B 01- DNIHN Code Note 31/12/2014 VND 31/12/2013 VND RESOURCES 5,969,901,577 ,449 5,307,060,807,329 5,453,262,931,031 1,279,525,014,840 1,898,529,392,924 17,826,386,435 502,643,076,304 163,476,907,176 637,114,219,782 598,428,618,781 355,719,314,789 4,956,397,594,108 178,943,692,147 1,968,257,136,188 20,929,404,542 456,725,904,986 137,540,107,294 490,760,970,004 1,341,762,807,045 361,477,571,902 516,638,646,418 8,192,561,774 346,383,586,552 84,711,303,600 77,333,769,500 17,424,992 350,663,213,221 5,036,159,560 184,142,784,403 91,065,600,000 69,583,293,250 835,376,008 19,680,282,615,855 17,545,489,315,423 25 26 19,680,282,615,855 10,006,413,990,000 26 (5,388,109,959) (161,099,075) 1,550,028,784,604 971,689,582,340 7,157,699,467,945 17,545,489,315,423 8,339,557,960,000 1,276,994,100,000 (5,068,507,959) (300 =310 + 330) 300 Current liabilities Short-term borrowings Accounts payable - trade Advances from customers Taxes payable to State Treasury Payables to employees Accrued expenses Other payables Bonus and welfare fund 310 311 312 313 314 315 316 319 323 Long-term liabilities Other long-term liabilities Long-term borrowings Deferred tax liabilities Provision for severance allowance Unearned revenue 330 333 334 335 337 338 EQUITY (400 = 410) 400 Owners' equity Share capital Share premium Treasury shares Foreign exchange differences Investment and development fund Financial reserve Retained profits 410 411 412 414 416 417 418 420 MINORITY INTEREST 439 28 TOT AL RESOURCES (440 = 300 + 400 + 439) 440 LIABILITIES 18 19 20 21 22 23 24 950,237,983,612 833,955,796,000 6,149,811,983,770 119,953,867,653 22,863,933,884 25,770,138,060,957 22,875,414,056,636 The accompanying notes are an integral part of these consolidated financial statements Vietnam Dairy Products Joint Stock Company and its subsidiaries Consolidated balance sheet as at 31 December 2014 (continued) Form B 01 - DNIHN OFF BALANCE SHEET ITEMS 31/12/2014 Foreign currencies 31/12/2013 included in cash and cash equivalents: 3,735,730 20,792 USD EUR 16,776,618 21,606 28 February 2015 l'repared by: Lc Thanh Liem CltiefAccoUlllant ICU Licn Chief Executive Officer The accompanying notes are an integral part of these consolidated financial statements Vietnam Dairy Products Joint Stock Company and its subsidiaries Consolidated statement of income for the year ended 31 December 2014 Form B 02 - DNIHN 2014 VND 2013 VND Code Note Total revenue 01 29 35,703,776,176,355 31,586,007,133,622 Less revenue deductions 02 29 726,847,843,179 637,405,006,316 Net revenue (10 = 01 - 02) 10 29 34,976,928,333,176 30,948,602,127,306 Cost of sales 11 30 22,668,451,134,488 19,765,793,680,474 G ross profit (20 = 10 - II) 20 12,308,477 ,198,688 11,182,808,446,832 31 32 573,569,553,162 81,697,752,419 23 39,581,737,758 24 33 4,696,142,714,715 507,347,709,516 90,790,817,490 104,027,048 3,276,431,628,666 25 34 795,365,066,390 611,255,506,250 7,308,841,218,326 7,711 ,678,203,942 367,460,023,857 122,819,758,563 313,457,899,019 58,819,862,034 40 244,640,265,294 254,638,036,985 45 59,887,377,298 43,940,615,792 Profit before tax (50 = 30 + 40 + 45) 50 7,613,368,860,918 8,010,256,856,719 Income tax expense - current 51 37 1,580,658,440,379 1,483,448,216,660 Income tax benefit - deferred 52 37 (35,492,545,769) (7,298,675,568) Net profit after tax (60 = 50 - 51 - 52) 60 6,068,202,966,308 6,534,107,315,627 Financial income Financial expenses In which: Interest expense Selling expenses General and administration expenses Net operating profit {30 = 20 + (21 - 22) - (24 + 25)} Other income Other expenses Results of other activities (40=31-32) Share of profit in associates and jointly controlled entities 21 22 30 31 32 35 36 The accompanying notes are an integral part of these consolidatedfinancial statements Vietnam Dairy Products Joint Stock Company and its subsidiaries Consolidated statement of income for the year ended 31 December 2014 (continued) Form B 02 - DNIHN Code Net profit after tax (60 = 50 - 51 - 52) Note 2013 VND 2014 VND 60 6,068,202,966,308 6,534,107,315,627 Minority interest 61 (604,730,533) (26,347,207) Equity holders of the Company 62 Basic earnings per share 70 Attributable to: 6,068,807,696,841 38 6,534,133,662,834 6,068 6,533 28 February 2015 -Le Thanh Liem Chif!/Acco/lfltClnl leu Lien Chief Executive Officer The accompanying noles are an integral part of these consolidated financial statements 10 Vietnam Dairy Products Joint Stock Company and its subsidiaries Consolidated statement of cash flows for the year ended 31 December (Indirect method) 2014 Form B 03 - DNIHN Code Note CASH FLOWS FROM OPERATING 2014 VND 2013 VND ACTIVITIES Profit before tax Adjustments for Depreciation and amortisation Allowances and provisions Unrealised foreign exchange (ga ins )/Iosses Losses on disposals of tangible fixed assets and construction in progress Dividends and interest income Losses from other investing activities Share of profit in associates and jointly controlled entities Interest expense 01 7,613,368,860,918 8,010,256,856,719 02 03 1,032,730,002,039 3,786,590,677 786,432,923,150 33,285,887,136 04 (8,404,807,167) 13,064,625,014 05 05 05 12,301,757,361 (498,729,023,388) 18,361,924,596 10,670,289,649 (417,488,105, I02) 9,486,50 I,689 05 06 (59,887,377,298) 39,581,737,758 (43,940,615,792) 104,027,048 Opel-ating pl"Ofit before changes in working capital Change in receivables Change in inventories Change in payables and other liabilities Change in prepayments 08 8,153,109,665,496 8,401,872,389,511 09 10 J I 12 (130,429,515,728) (545,317,603,122) (40,780,546,630) 5,506,120,979 (38,409,421,579) 258,940,210,677 (272,224,654,212) (27,641,597,327) 7,442,088,120,995 8,322,536,927,070 13 14 15 16 (34,741,971,887) (1,521,907,400,545) 46,119,165,658 (603,234,373,651) (104,027,048) (1,399,982,286,806) 20,984,913,520 (691,692,163,285) 20 5,328,323,540,570 6,251,743,363,451 Interest paid Income tax paid Other receipts from operating activities Other payments for operating activities Net cash flows from operating activities The accompanying notes are an integral part of these consolidated financial statements 1I Vietnam Dairy Products Joint Stock Company and its subsidiaries Consolidated statement of cash flows for the year ended 31 December 2014 (Indirect method - continued) Form B 03 - DNIHN Code Note 2014 VND 2013 VND CASH FLOWS FROM INVESTING ACTIVITIES Payments for additions to fixed assets Collections on disposals of fixed assets Increase in time deposits Payments for purchases of debt instruments of other entities Proceeds from sales of deht instruments of other entities Collection of loans granted to associates Payments for investments in other entities Proceeds from matured bonds Collections on investment in other entities Receipts of interest and dividends Increase in cash from a subsidiary Net cash flows from investing activities 21 22 23 (858,946,281,717) 53,894,284,254 (3,349,601,000,000) 23 (300,915,667,523) 24 24 25 26 5,296,101,394 (2,759,659,696) (1,491,459,216,581 ) 20,991,389,628 (623,100,000,000) 4,531,896,380 30,000,000,000 (33,713,307,770) 350,000,000,000 26 27 19,748,461,471 560,479,407,828 86,867,562 4,927,205,437 307,719,066,699 ( 159,686,267,298) 30 (3,872,717,486,427) (1,589,789,233,505) The accompanying notes are an integral part of these consolidated financial statements 12 Vietnam Dairy Products Notes to the consolidated (continued) Joint Stock Company financial statements for the year ended 31 December Code Note CASH FLOWS FROM FINANCING 2014 VND 2014 2013 VND ACTIVITIES Proceeds from capital contribution by minority interest Payments for shares repurchases Proceeds from short-term and long-term borrowings Payments to settle loan principals Payments of dividends 31 32 70,421,503,931 (319,602,000) (525,442,959) 33 34 36 1,490,974,827,513 (233,883,299,908) (4,000,514,074,130) (3,167,235,049,800) Net cash flows from financing activities 40 (2,673,320,644,594) (3,167,760,492,759) Net cash flows during the year (50 = 20 + 30 + 40) Cash and cash eq uivalents at the beginning of the year Effect of exchange rate fluctuations cash and cash equivalents 50 (1,217,714,590,451 ) 1,494,193,637,187 60 2,745,645,325,950 1,252,120,160,804 61 (186,238,711) (668,472,041) Currency translation on 130,931,428 differences Cash and cash equivalents at the end of the year (70 = 50 + 60 + 61) 70 1,527,875,428,216 2,745,645,325,950 28 February 2015 Prepared by: Lc Thanh Licm CII ief.4 cc;o lIutufll The accompanying notes are an integral part of these consolidated financial statements 14 VINAMILK HANOIMILK INDUSTRY 2012 2013 2014 Current Assets 11,110,610 13,018,930 15,522,309 Current Liabilities 4,144,990 4,956,397 5,453,262 CUtTent Ratio 2.68 times 2.63 times 2.85 times Current Assets 128,890 117,394 228,076 Current Liabilities 81,516 93,725 121,497 Current Ratio 1.58 times 1.25 times 1.88 times Current Ratio 1.83 times 1.59 times 1.75 times Table 2.10: Current ratio (2102-2014) VINAMILK HANOIMILK INDUSTRY 2012 2013 2014 Current Assets 11,110,610 13,018,930 15,522,309 Current Liabilities 4,144,990 4,956,397 5,453,262 Inventory 3,472,845 3,217,483 3,620,107 Quick Ratio 1.84 times 1.98 times 2.18 times Current Assets 128,890 117,394 228,076 Current Liabilities 81,516 93,725 121,497 Inventory 49,329 18,269 48,315 Quick Ratio 0.98 times 1.06 times 1048 times Current Ratio 1.35 times 1.27 times lAO times Table 2.11: Quick ratio (2012-2014) 2012 2013 2014 4,204,771 5,307,060 5,969,981 15,493,096 17,545,960 19,680,282 Debts/Equity 27.14% 30.25% 30.33% Debts 81,516 93,725 127,411 132,367 134,007 212,275 Debts/Equity 61.58% 69.94% 60% Debts/Equity 79% 84% 94% Debts VINAMILK HANOIMILK INDUSTRY Stockholders' Stockholders' equity equity Table 2.12: Debts-to-Equity ratio (2012-2014) VINAMILK HANOIMILK INDUSTRY 2012 2013 2014 Debts 4,204,771 5,307,060 5,969,901 Total Assets 19,697,868 22,875,414 25,770,138 Debts/Total assets 21.35% 23.20% 23.17% Debts 81,516 93,725 127,411 Total Assets 213,884 227,732 339,686 Debts/Total assets 38.11% 41.16% 37.51% Debts/Total assets 41% 41% 45% Table 2.13: Total debts-to-total 2012 2013 2014 6,929,668 8,010,257 7,613,369 4,131 909 40,480 1,677.5 times 8,912.3 times 188.1 times EBIT 1,217 3,034 3,845 Interest 6,854 5,847 5,075 Times Interest Earned Ratio 0.18 times 0.52 times 0.76 times Times Interest Earned Ratio N/A N/A N/A EBIT VINAMILK Interest Times Interest Earned Ratio HAN01MILK INDUSTRY assets ratio (2012-2014) Table 2.14: The times interest earned ratio (2012-2014) 2012 2013 2014 27,101,683 31,586,007 35,703,769 Accounts Receivable 2,246,362 2,728,421 2,771,736 Receivables Turnover 12.06 times 11.58 times 12.88 times 234,862 246,373 232,443 Accounts Receivable 67,331 84,039 85,933 Receivables Turnover 3.49 times 2.93 times 2.7 times Receivables Turnover N/A N/A N/A Net Sales (Credit) VINAMILK Net Sales (Credit) HANOIMILK INDUSTRY Table 2.15: Account receivable turnover (2012-2014) • 2012 2013 2014 2,246,362 2,728,421 2,771,736 A verage Daily Credit Sales 75,282.5 86,537 99,177.2 Average Collection Period 30 days 32 days 28 days Accounts Receivable 67,331 84,039 85,933 Average Daily Credit Sales 652.4 685.4 645.7 A verage Collection Period 103 days 123 days 133 days A verage Collection Period N/A N/A N/A Accounts Receivable VINAMILK HANOlM1LK INDUSTRY Table 2.16: Average collection period (2012-2014) 2012 2013 2014 26,561,574 30,948,602 34,976,928 Inventory 3,472,846 3,217,483 3,620,107 Inventory Turnover 7.65 times 9.61 times 9.66 times Sales 223,562 237,876 221,877 Inventory 49,329 18,269 48,315 Inventory Turnover 4.53 times 13.02 times 4.59 times Inventory Turnover N/A N/A N/A Sales VINAMILK • ' HANOlMILK INDUSTRY Table 2.17: Inventory turnover (2012-2014) 2012 2013 2014 26,561,574 30,948,602 34,976,928 Fixed Assets 8,587,258 9,856,483 10,247,828 Total Fixed Turnover 3.09 times 3.19 times 3.41 times 223,562 237,876 221,877 84,993 110,338 111,610 Total Fixed Turnover 2.63 times 2.16 times 1.99 times Total Fixed Turnover N/A N/A N/A Sales VINAMILK Sales HANOlMILK INDUSTRY Fixed Assets Table 2.18: Fixed asset turnover (2012-2014) • • VINAMILK 2012 2013 2014 Sales 26,561,574 30,948,602 34,976,928 Total Assets 19,697,868 22,875,414 25,770,138 , • 1.35 times 1.35 times 1.35 times Sales 223,562 237,876 221,877 Total Assets 213,884 227,732 339,686 Total Asset Turnover 1.45 times 1.44 times 0.65 times Total Asset Turnover 0.89 times 0.84 times 0.81 times Total Asset Turnover HANOIM1LK INDUSTRY Table 2.19: Total asset turnover (2013-2014) VINAMILK HANOIMILK • INDUSTRY Gross Profit 9,076,743 11,182,808 12,308,477 Sales (Net) 26,561,574 30,948,602 34,976,928 Gross Profit Margin Ratio 34.17% 36.13% 35.19% Gross Protit 34,739 65,198 69,272 Sales (Net) 223,562 237,876 221,877 Gross Profit Margin Ratio 15.54% 27.41 % 31.22% Gross Profit Margin Ratio N/A N/A N/A Table 2.20: Gross profit margin ratio (2012-2014) • VINAMILK 2012 2013 2014 Net Income 5,819,454 6,534,107 6,068,202 Sales (Net) 26,561,574 30,948,602 34,976,928 21.9% 21.12% 17.35% Net Income 1,216 3,034 155 Sales (Net) 223,562 237,876 221,877 Net Profit Margin 0.54% 1.28% 0.07% Net Profit Margin 14% 13% 12% Net Profit Margin HANOIMILK INDUSTRY Table 2.21: Net profit margin ratio (2012-2014) VINAMILK 2012 2013 2014 Net Income 5,819,454 6,534,107 6,068,202 Total Assets 19,697,868 22,875,414 25,770,138 29.54% 28.56% 23.55% Net Income 1,216 3,034 155 Total Assets 213,884 227,732 339,686 ROA • HANOIMILK • r I INDUSTRY ROA 0.57% 1.33% 0.05% ROA 12% 11% 10% Table 2.22: Return on assets (ROA) (2012-2014) 2012 2013 2014 5,819,454 6,534,107 6,068,202 15,493,096 17,545,960 19,680,282 37.56% 37.23% 30.83% 1,216 3,034 155 132,367 134,007 212,275 ROE 0.92% 2.26% 0.07% ROE 23% 22% 20% Net Income VINAMILK Stockholders' Equity ROE Net Income HANOIMILK INDUSTRY Stockholders' Equity Table 2.23: Return on Equity (ROE) (2012-2014) VINAMILK 2012 2013 2014 Common stock price 86,000 135,000 95,500 EPS 6,981 6,533 6,068 PIE 12.32 20.66 15.74 Common stock price 5,000 8,100 12,900 HANOIMILK EPS 97 243 12 51.55 33.33 1,075 INDUSTRY PIE PIE N/A N/A N/A Table 2.24: Price to earnings ratio (2012-2014) 2012 2013 2014 Dividends per share 3,800 4,600 4,000 Common stock price 86,000 135,000 95,500 Dividend yield 4.42% 3.41% 4.19% HANOIMILK Dividend yield N/A N/A N/A INDUSTRY Dividend yield N/A N/A N/A VINAMILK Table 2.25: Dividend yield (2012-2014)