Báo cáo được 9 điểm Phân tích chỉ số tài chính của công ty Mía Đường Sơn La. So sánh về những biến động tăng giảm giữa hai năm và chỉ ra lí do dẫn đến sự khác biệt này. Từ đó, nhận xét về tình hình tài chính của doanh nghiệp Mía Đường Sơn La
NATIONAL ECONOMICS UNIVERSITY SCHOOL OF ADVANCED EDUCATIONAL PROGRAM FINANCIAL REPORTING ANALYSIS SON LA SUGAR JOINT STOCK COMPANY Student’s name: Student’s ID: Class: Supervisor: Bui Ngoc Linh 11202076 Auditing EEP 62B PhD Pham Xuan Kien Hanoi, October 2023 TABLE OF CONTENT LIST OF ABBREVIATIONS ii LIST OF TABLES iii LIST OF FIGURES iv INTRODUCTION .1 CHAPTER 1: INTRODUCTION TO SON LA SUGAR JOINT STOCK COMPANY 1.1 General information about the company 1.2 Son La Sugar JSC’s Financial Statements 1.2.1 Balance Sheet 1.2.2 Income Statement CHAPTER 2: FINANCIAL ANALYSIS 2.1 Liquidity of Short-term Assets and Related Debt-Paying Ability 2.2 Long-term Debt-Paying Ability 15 2.3 Profitability 18 CONCLUSION 26 REFERENCES 27 i LIST OF ABBREVIATIONS Abbreviation Explanation Accounts Receivable Construction in Progress Cost of Goods Sold Joint Stock Company Noncontrolling Interest Nonrecurring Items Operating Income Margin Operating Asset Turnover Return on Investment Value Added Tax Vietnamese Dong AR CIP COGS JSC NCI NI OIM OAT ROI VAT VND ii LIST OF TABLES Table 1.1 Balance Sheet Table 1.2 Income Statement .5 Table 2.1.1 Ratios related to current assets, current liabilities, and the operating cycle9 Table 2.1.2 Ratios related to current assets compared with current liabilities 13 Table 2.2 Ratios related to Long-term Debt-Paying Ability .17 Table 2.3 Ratios related to Profitability 23 LIST OF FIGURE iii Figure 2.1 Calculation of days’ sales in receivables Figure 2.2 Calculation of accounts receivable turnover Figure 2.3 Calculation of accounts receivable turnover in days Figure 2.4 Calculation of days’ sales in inventory Figure 2.5 Calculation of inventory turnover Figure 2.6 Calculation of inventory turnover in days Figure 2.7 Calculation of operating cycle Figure 2.8 Calculation of working capital 12 Figure 2.9 Calculation of current ratio 12 Figure 2.10 Calculation of acid-test ratio 12 Figure 2.11 Calculation of cash ratio 13 Figure 2.12 Calculation of sales to working capital 13 Figure 2.13 Calculation of sales to times interest earned 15 Figure 2.14 Calculation of fixed charge coverage .15 Figure 2.15 Calculation of debt ratio 16 Figure 2.16 Calculation of debt/equity ratio .16 Figure 2.17 Calculation of debt to tangible net worth ratio .16 Figure 2.18 Calculation of net profit margin .18 Figure 2.19 Calculation of total asset turnover 18 Figure 2.20 Calculation of return on assets .19 Figure 2.21 Calculation of operating income margin 19 Figure 2.22 Calculation of operating asset turnover 20 Figure 2.23 Calculation of return on operating assets .20 Figure 2.24 Calculation of dupont return on operating assets 21 Figure 2.25 Calculation of sales to fixed assets 21 Figure 2.26 Calculation of return on investment .21 Figure 2.27 Calculation of return on total equity 22 Figure 2.28 Calculation of return on common equity .22 Figure 2.29 Calculation of gross profit margin 23 iv v INTRODUCTION Analyzing the financial reports of any enterprise holds significant importance for not only management but also for various users of a company's financial reports, such as the government, tax authorities, investors, employees, competitors, and banks Moreover, the scrutiny of competitors' financial statements aids management in assessing the company's financial strength and its standing in the industry, enabling them to shape future strategic initiatives Given the importance of financial statement analysis in reflecting the financial status of entities, I have chosen the topic "Financial Reporting Analysis at Son La Joint Stock Company" for my research in this thesis In additions, I would like to express my gratitude to PhD Pham Xuan Kien, who guided me throughout this Financial Reporting Analysis subject as well as shared numerous insightful knowledge and experiences Sincerely, Bui Ngoc Linh CHAPTER 1: INTRODUCTION TO SON LA SUGAR JOINT STOCK COMPANY 1.1 General information about the company Company name: International name: SON LA SUGAR JOINT STOCK COMPANY Vietnamese name: CÔNG TY CỔ PHẦN MÍA ĐƯỜNG SƠN LA Legal type: Joint-stock company Stock code: SLS Tax code: 5500546290 Head office: Km 34, Hat Lot Town, Mai Son District, Son La Province Legal representative: TRAN NGOC HIEU Phone: (022) 3843 274 Fax: (022) 3843 406 Website: http://miaduongsonla.vn/ Email: sls.miaduongsonla@gmail.com Charter capital: 97,919,450,000 VND Establishing date: 09/1995 Main business line: Sugar production 1.2 Son La Sugar JSC’s Financial Statements 1.2.1 Balance Sheet Table 1.1 Balance Sheet At the year ended June 30 Unit: Million VND 2022 2021 779,346 565,391 6,692 4,489 6,692 4,489 Cash equivalents - - II Short-term receivables 304,156 313,618 315,949 325,416 Short-term trade accounts receivables 114,943 176,897 Short-term prepayments to suppliers 46,421 14,366 Short-term loan receivables 9,400 9,400 Other short-term receivables 145,185 124,753 -11,793 -11,798 468,475 247,275 471,308 252,498 -2,834 -5,223 IV Other short-term assets 24 VAT to be reclaimed 19 - 600,224 627,497 - - ASSETS: A SHORT-TERM ASSETS I Cash and cash equivalents Cash Short-term receivables, gross: Allowance for short-term doubtful accounts III Inventories Inventories Provision for decline in value of inventories Taxes and other receivables from state authorities B LONG-TERM ASSETS I Long-term receivables II Fixed assets 558,845 607,948 Tangible fixed assets 557,629 606,725 Intangible fixed assets 1,216 1,223 III Long-term assets in progress 29,779 6,648 Construction in progress 29,779 6,648 11,600 11,600 Investments in associates, joint ventures 9,600 9,600 Held-to-maturity investments 2,000 2,000 - 1,301 - 1,301 1,379,570 1,192,888 A LIABILITIES 619,492 536,105 I Short-term liabilities 569,392 433,705 II Long-term liabilities 50,100 102,400 760,078 656,783 Common shares 97,919 97,919 Capital in excess of par value 3,999 3,999 Investment and development fund 45,608 45,608 Other funds from owner's equity 6,800 6,800 605,752 500,948 - - 1,379,570 1,192,888 IV Long-term financial investments V Other long-term assets Long-term prepayments TOTAL ASSETS RESOURCES: B OWNER’S EQUITY I Shareholders’ equity Retained earnings II Other resources and funds TOTAL RESOURCES Source: Son La Sugar JSC’s Income Statements 1.2.2 Income Statement Table 1.2 Income Statement For the year ended June 30 Unit: Million VND 2022 2021 Cash Ratio = Cash Current Liabilities Figure 2.11 Calculation of cash ratio Source: Calculated by author from financial statements of Son La Sugar JSC Sales to Working Capital = Sales Average WorkingCapital Figure 2.12 Calculation of sales to working capital Source: Calculated by author from financial statements of Son La Sugar JSC Table 2.1.2 Ratios related to current assets compared with current liabilities Order Ratios 2022 2021 Changes Absolute Percentag 209,954 131,686 (±) 78,268 (Million VND) Current Ratio 1.37 1.30 0.07 5.38 (Times) Acid-Test Ratio 0.55 0.73 -0.19 -26.03 Working Capital 12 e (%) 59.44 (Times) Cash Ratio 0.012 0.010 0.002 20 (Times) Sales to Working 5.09 7.54 -2.45 -32.49 Capital (Times) Source: Calculated by author from financial statements of Son La Sugar JSC In the span of two years, Son La JSC exhibited noteworthy changes in various financial ratios Working capital witnessed a substantial increase, rising from 131,686 million VND in 2021 to 209,954 million VND in 2022, marking an absolute increase of 78,268 million VND, which translates to a significant 59.4% growth This remarkable increase in working capital can be attributed to factors such as improved sales, more effective collections from customers, or better management of current assets and liabilities Current ratio slightly improved from 1.3 in 2021 to 1.37 in 2022, indicating a 5.4% increase Acid-test ratio declined from 0.73 in 2021 to 0.55 in 2022, representing a 24.7% decrease This drop might result from a decrease in liquid assets or an increase in short-term liabilities Cash ratio also experienced a slight uptick from 0.01 in 2021 to 0.012 in 2022, showing a 20% increase Sales to working capital decreased from 7.54 in 2021 to 5.09 in 2022, indicating a 32.4% drop This suggests that the company may have expanded its operations with less working capital in the more recent year, possibly due to improved efficiency or changes in business strategy In conclusion, Son La JSC's significant increase in working capital reflects improved liquidity, but the changes in other ratios underscore the need for careful evaluation of assets and liabilities management to maintain financial stability and continue strategic growth 2.2 Long-term Debt-Paying Ability 13 Times Interest Earned = Recurring Earnings , Exculding Interest Expense , Tax Expense , Equity Earnings,∧NCI Interest Expense , Including Capitalized Interest Figure 2.13 Calculation of sales to times interest earned Source: Calculated by author from financial statements of Son La Sugar JSC Fixed Charge Coverage = Recurring Earnings , Exculding Interest Expense , Tax Expense , Equity Earnings,∧NCI + Interest Portion of Rentals Interest Expense , Including Capitalized Interest + Interset Portionof Rentals Figure 2.14 Calculation of fixed charge coverage Source: Calculated by author from financial statements of Son La Sugar JSC 14