Corporate finance team project reportfinancial statement analysis of fpt telecom from 2019 to 2021

NATIONAL ECONOMIC UNIVERSITY School of Advanced Education Program *** -*** CORPORATE FINANCE TEAM PROJECT REPORT Financial Statement Analysis of FPT Telecom from 2019 to 2021 Tutor: PhD Pham Van Tue Nha Group - Marketing Management 63C Student’s Name Role Student’s ID Vũ Minh Châu Member 11211023 Bùi Thu Huyền Member 11212656 Nguyễn Hoàng Hải Member 11219692 Cao Tùng Lâm Member 11212977 Đỗ Đình Long Leader 11213521 I INTRODUCTION II HORIZONTAL ANALYSIS Hanoi, 05/23 Revenue analysis Expenses analysis III.VERTICAL ANALYSIS Asset structure a, Current asset b, Long-term Asset Liabilities & Equity Structure IV CASH FLOWS ANALYSIS Cash flows from operating activities Cash flow from investing activities Cash flow from financing activities V RATIO ANALYSIS Liquidity Ratios a, Current Ratio b, Quick Ratio Long-term Solvency Ratios a, Leverage Ratio b, Coverage Ratio Turnover Ratios a, Inventory Ratio b, Receivables turnover Ratio c, NWC Ratio d, Total assets turnover Ratio Profitability Ratios a, Profit Margin b, Return on assets (ROA) c, Return on equity (ROE) Market Value Ratios a, Earning per share (EPS) b, Price-earnings Ratio (P/E Ratio) c, Price-to-book-ratio (P/B Ratio) VI RECOMMENDATION References Member’s Performance Review I INTRODUCTION As a member of Vietnam's leading technology corporation FPT, FPT Telecom is currently one of the reputable providers of telecommunications and internet services that are beloved by customers in Vietnam and the region After 25 years of operation, FPT Telecom has grown significantly with more than 8,984 employees, and nearly 316 transaction offices belonging to over 90 branches in 63 provinces and cities nationwide With a mission to pioneer bringing the Internet to Vietnamese people and a desire for every Vietnamese family to use at least one service from FPT Telecom, in line with the motto "Customer is the focus", we constantly strive to invest in infrastructure, upgrade product and service quality, enhance new technology applications to bring customers superior product and service experiences II HORIZONTAL ANALYSIS Revenue analysis - Revenue from sales of goods and rendering of services in 2020 increased by 13.86% compared to 2019, corresponding to an amount of 1.170.971.384.379 In 2021 also increased slightly compared to 2020 with an increase rate of 6.43% corresponding to an amount of 618.727.043.721 Thereby, showing us that the business is operating effectively We see that the company's revenue deductions have grown over the years, which means that the business has effectively applied sales policies to capture revenue growth over the years - Revenue from financial income in 2019 compared to 2020 declined by 19.20% corresponding to approximately VND 79 billion and revenue from financial income in 2020 compared to 2021 went up to 106.54% corresponding to about 354 billion - Net operating profit gradually increased from 2019 and doubled in 2021 compared to 2020 with a figure of 24.44% This growth was largely driven by financial income as Gross profile from sales of goods and rendering of services increased by only 1.71% in 2021 compared to 17.27% in 2020 => As we can see, FPT also has an investment in the financial sector and brings a profit for the business, but in terms of value, this profit is still small, showing that in 2021 the investments are still small Short-term financial investments have not yet yielded profits - In terms of other income, we see a growth in 2020 compared to 2019 up to 47.15%, equivalent to more than billion And strongly increased to 144.17% in 2021 compared to 2020 This increase is also worrisome if this increase is mainly from Proceeds from disposals of fixed assets Therefore, we consider that the Proceeds from disposals of fixed assets and other long-term assets in 2019 were only about 38 million, but by 2021 this figure reached approximately 973 million However, this 973 million compared to other income in 2020 of 16 billion is not significant Therefore, the growth of other income is not worrisome Proceeds from disposals of fixed assets Year 2019 2020 2021 VND 38.181.818 875.906.524 972.727.280 Table Proceeds from disposals of fixed assets Expenses analysis - Other expenses of the company in 2020 compared to 2019 increased dramatically by 117.58% but slightly decreased to 99.41% in 2021 This shows that the company still had strong investment policies in order to bring profits -> In general, FPT Telecom in 2021 compared to 2020 and 2019 still increased strongly during the Covid season because the business after stabilizing equitization have invested and expanded to large markets, doing business in several other industries, so it can be seen the business had reasonable and effective policies III.VERTICAL ANALYSIS Asset structure In general, as you can see, the company's total assets fluctuated during the period from 2019 to 2021 Through the charts showing the structure of assets, current assets accounted for a larger proportion than Chart Asset Structure long-term assets due to a relatively high proportion of investments in equity of subsidiaries company a, Current asset As we can see, the company's current asset structure has grown from 46.86% in 2019 to 63.41% in 2021 Cash and cash equivalents year over year are kept at around 1% of total assets structure, which shows that the business effectively managing its cash flow to ensure its quick solvency This is important for a company that uses finance as leverage Short-term receivables of FPT Telecom Company in 2019 accounted for 37.01% and increased gradually over years, namely 47.72% (in 2020) and increased to 59.64% (in 2021) An increase in short-term receivables may indicate that the business has been successful in generating more sales or providing more services to its customers Besides, Inventories of the company also fell from 4.70% in 2019 to 2,98% in 2021, which means that the company is optimizing business activities b, Long-term Asset Long-term assets recorded a decline and plummeted in 2021, from 53.14% to 36.59% In 2021, due to the impact of the Covid 19 epidemic, some investment projects of the company had to be postponed Liabilities & Equity Structure The company's capital structure is biased towards liabilities In general, the company's liabilities account for a relatively high proportion, about more than twothirds of the capital structure in the years 2019 and 2020, which makes the company's financial reputation in the financial market low, high financial risk, low Chart Liabilities & Owner's Equity Structure profitability, and financial autonomy, because the company mainly uses external capital, depend on capital from outside In the structure of Liabilities, the structure of short-term liabilities accounted for most, the highest is in 2021 with the figure of 111.02%, equivalent to 14 thousand 402 billion VND This may cause pressure on managers because if using financial leverage is short-term liabilities, the time to bring profit must be short and effective because of the short-term Chart Value Comparison debt repayment period Owner's equity in 2019 and 2020 has not changed significantly but has grown more in 2021 with the proportion of 46.71% This mainly comes from retained earnings after tax IV CASH FLOWS ANALYSIS Cash flows from operating activities The company's cash flows from operating activities have been fluctuating over the past three years (2019-2021) Net accounting profit before tax increased by 12.30% from 2019 to 2020, and then further increased by 24.59% from 2020 to 2021 This indicates that the company has been generating more profit in the past two years Chart Net accounting profit before tax Operating profit before changes in working capital also increased over the same period, rising by 16.91% from 2019 to 2020, and then by a smaller 3.85% from 2020 to 2021 Chart 5.Operating profit before changes in WC Document continues below Discover more from: Corporate finance 328 documents Go to course Test Bank for Fundamentals of Corporate Finance 10th 107 Edition by Ross Corporate finance 31 97% (66) Test Bank Fundamentals of Corporate Finance 12th edition Chapter Corporate finance 100% (17) TN1 corporate finance 38 Corporate finance 100% (12) Brooks Answers Introductory Econometrics for Finance 56 18 Corporate finance 94% (17) Corporate-Finance-Note-Chapter to Chapter 6, online note with full of useful information Corporate finance 100% (7) Ebook Tài doanh nghiệp (Lý thuyết & thực 148 hành quản lý ứng dụng cho doanh nghiệp Việt Nam)… 100% (7) Corporate finance This suggests that the company has been managing its operating expenses and costs effectively However, we can also see that the increase in payables between 2019 and 2020 was very significant, with the figure rising from a negative amount in 2019 to a positive amount in 2020 This suggests that the company may have been delaying payments to suppliers or creditors in order to improve its cash flow position The subsequent decrease in payables from 2020 to 2021 may Chart Increase in payables indicate that the company has caught up on its outstanding payments BIT (Business Income Tax) paid also increased significantly from 2019 to 2020, by 39.22% This may be due to the higher profits generated by the company during that period However, BIT paid then decreased by 38.30% from 2020 to 2021, which may indicate that the company has implemented tax-saving measures or has had lower profits Chart BIT paid Overall, we can see that the company's net cash inflows from operating activities increased substantially by 135.66% from 2019 to 2020, but then decreased by 8.69% from 2020 to 2021 This suggests that the company may have experienced some challenges in generating cash from its operations in 2021, despite its higher Chart Net cash inflows from operating activities profits It may be worth further analyzing the company's cash flows to understand the reasons behind this trend Cash flow from investing activities In 2019, the company had net cash outflows of VND 1.494 trillion from investing activities, which increased by 81.31% to VND 2.709 trillion in 2020 In 2021, the net cash outflows from investing activities decreased to VND 5.045 trillion, a decrease of 86.22% from the previous year The major reason for the increase in net Chart Net cash outflows from investing activities cash outflows from investing activities in 2020 was the significant increase in loans granted, which increased by 269.62% compared to the previous year This indicates that the company may have invested heavily in long-term assets, such as property, plant, and equipment, or acquired other companies during the year However, in 2021, the net cash outflows from investing activities decreased significantly, indicating that the company may have reduced its investments in long-term assets or divested some of its assets during the year The increase in dividends and interest received in 2021 may also suggest that the company may have invested in financial instruments to generate additional income In conclusion, the company's cash flow from investing activities shows that it has been actively investing in long-term assets, as well as financing its investments through loans It is important to note that while investing in long-term assets may lead to higher returns in the future, it also comes with higher risks and requires a careful evaluation of the company's financial position and prospects Cash flow from financing activities In 2019, the company had net cash inflows from financing activities of VND 618.5 billion, which decreased slightly to VND 588.9 billion in 2020 (-4.79%) However, in 2021, there was a significant increase to VND 3.161 trillion (+436.82%) This Chart 10 Net cash inflows from financing activities increase could be due to various factors, such as a successful fundraising campaign or an increase in investor confidence The net decrease in cash and cash equivalents in 2020 was a large negative amount of VND 75.2 trillion, indicating that the company used more cash than it generated during that year However, in 2021, the company was able to increase its cash and cash equivalents by VND 95.7 trillion, indicating a positive cash flow for the year The cash and cash equivalents at the beginning of each year also show interesting trends some In 2019, the company had VND 90.1 trillion in cash and cash equivalents, which increased slightly Chart 11 Cash and cash equivalents at the beginning of year to VND 99.3 trillion in 2020 (+10.22%) However, in 2021, the company's cash and cash equivalents decreased significantly to VND 24.1 trillion (-75.69%) The effect of foreign exchange differences also had a negative impact on the company's cash and cash equivalents in 2021 Overall, the company's cash flow from financing activities and its cash and cash equivalents shows some significant fluctuations over the three-year period It's important to further analyze the reasons behind these fluctuations, such as any major investments or acquisitions, changes in debt or equity financing, or any other significant factors that could have affected the company's cash flow V RATIO ANALYSIS Liquidity Ratios Table Liquidity Ratios a, Current Ratio The current ratio measures a company's ability to pay its short-term obligations using its current assets Generally, a current ratio of or greater is considered good, indicating that the company can cover its short-term liabilities with its current assets Both FPT TELECOM and ELCOM have seen an increase in their current ratio over the years However, ELCOM's current ratio is consistently higher than FPT TELECOM This indicates that ELCOM is in a better position to meet its short-term obligations using its current assets compared to FPT TELECOM In terms of the components of the current ratio, FPT TELECOM has a higher level of current debt compared to its current assets, while ELCOM has more current assets than current debt FPT TELECOM also has a higher level of inventory compared to ELCOM, which could affect its ability to pay off its short-term liabilities Overall, while both companies have seen an improvement in their short-term solvency ratios over the years, ELCOM appears to be in a better position to meet its short-term obligations compared to FPT TELECOM b, Quick Ratio The quick ratio is a measure of a company's short-term solvency or its ability to meet its short-term obligations using its most liquid assets It is calculated by dividing a company's current assets minus its inventory by its current liabilities A quick ratio of or higher is generally considered a good indication of a company's ability to meet its short-term obligations FPT Telecom's quick ratio has been steadily increasing over the three years, from 0.58 in 2019 to 0.84 in 2021 This is a positive trend, indicating that FPT Telecom is becoming more capable of meeting its short-term obligations using its most liquid assets ELCOM, on the other hand, has had a much higher quick ratio than FPT Telecom in all three years Furthermore, ELCOM's quick ratio has been increasing over the three years, from 1.46 in 2019 to 2.73 in 2021 This indicates that ELCOM has a much stronger shortterm solvency position than FPT Telecom, and its ability to meet its short-term obligations using its most liquid assets is steadily improving This can be explained because FPT Telecom only operates in the telecommunications industry, which may require more investment in fixed assets and therefore a lower quick ratio, while ELCOM also operates in the marine electronics industry, which may have lower fixed asset requirements and therefore a higher quick ratio Long-term Solvency Ratios a, Leverage Ratio Table Leverage Ratio The total debt ratio measures the proportion of a company's assets that are financed by debt A higher total debt ratio indicates that the company has taken on more debt to finance its assets In general, a total debt ratio above means that a company has more debt than assets, which can be a cause for concern FPT TELECOM's total debt ratio has been increasing over the past three years, from 0.64 in 2019 to 0.82 in 2021 This indicates that the company has been relying more heavily on debt to finance its assets On the other hand, ELCOM's total debt ratio has been relatively stable, decreasing slightly from 0.40 in 2019 to 0.22 in 2021 10 The debt/equity ratio measures the relative amounts of debt and equity financing used by a company A higher debt/equity ratio indicates that a company is relying more heavily on debt financing In FPT TELECOM's case, we can see that the debt/equity ratio has been increasing over the past three years, from 1.79 in 2019 to 2.50 in 2021 This suggests that the company has been using more debt financing relative to equity financing Similarly, ELCOM's debt/equity ratio has also been increasing, although more gradually, from 0.65 in 2019 to 0.28 in 2021 The equity multiplier is another way of measuring a company's use of debt financing It indicates the amount of assets that are supported by each unit of equity A higher equity multiplier indicates that a company is relying more heavily on debt financing FPT TELECOM's equity multiplier has also been increasing over the past three years, from 2.79 in 2019 to 3.05 in 2021 This suggests that the company is relying more heavily on debt financing to support its assets ELCOM's equity multiplier has also been increasing, from 1.65 in 2019 to 1.28 in 2021 Finally, the long-term debt ratio measures the proportion of a company's total debt that is long-term debt Long-term debt is generally considered less risky than short-term debt because it has a longer maturity and can be more easily managed FPT Telecom had a longterm debt ratio of 0.06 in 2019, which decreased slightly to 0.05 in 2020 but then increased sharply to 0.11 in 2021 ELCOM's long-term debt ratio was 0.00 in 2019 and 2020, but it increased to 0.01 in 2021 These ratios suggest that FPT Telecom has a higher level of long-term debt relative to its total debt than ELCOM, which may indicate higher financial risk b, Coverage Ratio Table Coverage Ratio 11 The Times Interest Earned Ratio indicates the company's ability to meet its interest payment obligations from its earnings A higher ratio indicates a better ability to meet these obligations From the table, we can see that FPT TELECOM's Times Interest Earned Ratio has improved over the years, from 8.7762 in 2019 to 11.3592 in 2021 ELCOM's Times Interest Earned Ratio has been more volatile, with a peak of 23.0901 in 2020 and a significant drop to 9.6053 in 2021 Overall, both companies have a good ability to meet their interest payment obligations, with FPT TELECOM having a more stable trend The Cash Coverage Ratio measures a company's ability to meet its interest payment obligations from its cash flow A higher ratio indicates a better ability to meet these obligations Both companies have a higher Cash Coverage Ratio compared to their Times Interest Earned Ratio, indicating that they have a good ability to meet their interest payment obligations from their cash flows From the table, we can see that both FPT TELECOM and ELCOM have a good ability to meet their interest payment obligations from their cash flows FPT TELECOM's Cash Coverage Ratio has improved over the years, from 13.2933 in 2019 to 16.2463 in 2021 ELCOM's Cash Coverage Ratio has been more volatile, with a peak of 29.0520 in 2020 and a significant drop to 11.2585 in 2021 Overall, both companies have a good ability to meet their interest payment obligations, with FPT TELECOM having a more stable trend However, it is important to note that the Cash Coverage Ratio for ELCOM has been more volatile, indicating that it may face some short-term liquidity risks Turnover Ratios a, Inventory Ratio Table Inventory Ratio Inventory turnover ratio is a financial metric used to measure the number of times a company has sold and replaced its inventory during a given period A higher inventory turnover ratio indicates that the company has sold more inventory in relation to its cost of 12 goods sold It can also suggest that the company is managing its inventory more efficiently, avoiding overstocking, and maintaining a lean inventory Days sales in inventory (DSI) measures the average number of days it takes a company to sell its inventory It is calculated by dividing the average inventory by the cost of goods sold and multiplying the result by the number of days in the period A lower DSI indicates that the company is selling its inventory more quickly, which can be a positive sign FPT Telecom had a low inventory turnover ratio in 2020, indicating that it may have had difficulty selling its inventory However, it improved significantly in 2021, with an inventory turnover ratio of 7.98, which is an indication of better inventory management The DSI for FPT Telecom also improved significantly from 461.66 in 2020 to 45.76 in 2021, indicating that the company is selling its inventory more quickly On the other hand, ELCOM had a higher inventory turnover ratio in 2019 and 2020, indicating that it was selling its inventory more frequently than FPT Telecom However, the ratio declined slightly in 2021, suggesting that the company may have been holding onto inventory longer The DSI for ELCOM also increased in 2021, indicating that the company was taking longer to sell its inventory Overall, inventory turnover and DSI are essential metrics to assess a company's inventory management A higher inventory turnover ratio and a lower DSI can suggest that the company is managing its inventory efficiently, which can positively impact the company's profitability b, Receivables turnover Ratio Table Receivables turnover Ratio The Receivables Turnover Ratio indicates the number of times a company collects its average accounts receivables during a year A higher ratio is preferable because it suggests that a company is collecting its outstanding receivables quickly, whereas a low ratio may indicate that customers are not paying their bills on time, or the company is not doing enough to collect its outstanding debts 13 Both FPT TELECOM and ELCOM have seen a decline in their Receivables Turnover Ratio over the past three years This indicates that both companies are taking longer to collect their outstanding receivables However, it's worth noting that FPT TELECOM has a much higher ratio compared to ELCOM, which suggests that FPT TELECOM is doing a better job of collecting its outstanding debts The Day's Sales in Receivables Ratio indicates the average number of days it takes a company to collect its outstanding receivables A lower ratio is preferable because it suggests that a company is collecting its outstanding debts more quickly Conversely, a high ratio indicates that a company is taking longer to collect its outstanding debts Looking at the table, we can see that both FPT TELECOM and ELCOM have seen an increase in their Day's Sales in Receivables Ratio over the past three years This suggests that both companies are taking longer to collect their outstanding debts However, ELCOM has a much higher ratio compared to FPT TELECOM, which suggests that ELCOM is taking longer to collect its outstanding debts compared to FPT TELECOM Overall, while both companies have seen a decline in their Receivables Turnover Ratio and an increase in their Day's Sales in Receivables Ratio, FPT TELECOM seems to be doing a better job of collecting its outstanding debts compared to ELCOM c, NWC Ratio Table Net working capital Ratio Net Working Capital Turnover is a financial ratio that measures a company's efficiency in using its working capital to generate revenue It is calculated by dividing net sales by net working capital Looking at the table, we can see that FPT TELECOM's Net Working Capital Turnover increased significantly from 4.61 in 2019 to 34.61 in 2021, indicating a significant improvement in the company's efficiency in using its working capital to generate revenue On the other hand, ELCOM's Net Working Capital Turnover decreased from 1.72 in 2019 to 1.13 in 2021 This suggests that ELCOM was less efficient in using its working capital 14 to generate revenue over the years However, it's worth noting that the company's net sales also decreased over the same period, which could have contributed to the decrease in the ratio Overall, Net Working Capital Turnover is an important metric for evaluating a company's short-term liquidity and efficiency in managing its working capital It is essential to consider this ratio in conjunction with other financial metrics to obtain a complete picture of a company's financial health d, Total assets turnover Ratio Table Total assets turnover Ratio Total asset turnover is a financial ratio that measures a company's ability to generate sales from its assets It is calculated by dividing a company's net sales by its average total assets In the case of FPT TELECOM, the total asset turnover ratio decreased from 0.74 in 2019 to 0.58 in 2021 This indicates that the company was less effective at using its assets to generate sales over the years One possible reason for this decline could be the increase in the company's total assets, which grew by almost 80% from 2019 to 2021 On the other hand, ELCOM had a high total asset turnover ratio in all three years, with a significant increase from 2019 to 2021 This indicates that the company was highly efficient in generating sales from its assets The increase in the ratio over time suggests that the company was able to improve its asset utilization or increase its sales faster than its asset growth Overall, the total asset turnover ratio can provide insights into a company's operational efficiency and effectiveness in utilizing its assets to generate revenue 15 Profitability Ratios a, Profit Margin Table Profit Margin Profit Margin is a financial ratio that measures the company's ability to generate profit from its sales It is calculated by dividing net income by sales, and it indicates how much profit a company makes per dollar of sales FPT TELECOM has consistently had a higher Profit Margin than ELCOM over the past three years FPT TELECOM's Profit Margin has increased from 16.67% in 2019 to 18.60% in 2021, indicating that the company has been able to increase its profitability over time On the other hand, ELCOM's Profit Margin has fluctuated over the past three years but has generally been lower than FPT TELECOM's b, Return on assets (ROA) Table 10 Return on assets (ROA) ROA is a financial ratio that measures a company's profitability in relation to its total assets It shows how efficiently a company uses its assets to generate profits A higher ROA indicates better efficiency in generating profits FPT TELECOM has a higher ROA compared to ELCOM in all three years However, FPT TELECOM's ROA has been decreasing over the years, indicating a decrease in profitability or an increase in asset base ELCOM, on the other hand, has seen an increase in ROA, indicating improved efficiency in generating profits 16 c, Return on equity (ROE) Table 11 Return on equity (ROE) ROE measures a company's profitability by calculating how much profit it generates for each dollar of shareholders' equity A higher ROE indicates that a company is generating more profit with the money invested by shareholders As seen from the table, FPT TELECOM has a much higher ROE compared to ELCOM In 2019, FPT TELECOM's ROE was 31.68% while ELCOM's ROE was only 3.1% The trend continued in the following years, with FPT TELECOM consistently maintaining an ROE above 30%, while ELCOM's ROE remained below 4% FPT TELECOM's higher ROE may be attributed to its strong financial performance, as reflected by its high net income and total equity On the other hand, ELCOM's lower ROE may indicate that it is less profitable compared to FPT TELECOM and may have a lower net income or a higher level of equity, which is reducing its profitability Market Value Ratios a, Earning per share (EPS) Earnings per share (EPS) is a financial ratio that indicates the portion of a company's net income that is allocated to each outstanding share of common stock It is calculated by dividing the net income by the number of outstanding shares of common stock FPT TELECOM's EPS has increased from 4.375 VND in 2019 to 4.926 VND in 2021, indicating that the company has been able to generate more net income per outstanding share of common stock over the years On the other hand, ELCOM's EPS has also increased from 590 VND in 2019 to 628 VND in 2020 This suggests that the company has been able to generate more net income per outstanding share of common stock in the past two years Overall, the increase in EPS for both companies indicates that they have been able to generate more profit per share of common stock, which can be a positive sign for investors 17 b, Price-earnings Ratio (P/E Ratio) The P/E ratio is a financial ratio that measures a company's share price relative to its earnings per share A high P/E ratio indicates that investors are willing to pay a higher price for each VND of earnings, which may suggest that the company is expected to experience strong growth in the future Both FPT TELECOM and ELCOM have experienced an increase in their P/E ratio over the past years FPT TELECOM's P/E ratio has increased from 10 in 2019 to 15 in 2021, indicating that investors are willing to pay a higher price for each VND of earnings generated by the company Similarly, ELCOM's P/E ratio has increased from 10 in 2019 to 15 in 2020, suggesting that investors are also bullish on the company's future prospects c, Price-to-book-ratio (P/B Ratio) The P/B ratio, or price-to-book ratio, is a financial metric that compares a company's stock price to its book value per share The book value per share is calculated by dividing a company's total shareholder equity by the number of outstanding shares FPT Telecom's P/B ratio for the past three years, we see that it has increased from in 2019 to in both 2020 and 2021 This suggests that the market is valuing the company's stock higher relative to its book value A P/B ratio of less than indicates that the company's stock is trading below its book value, while a ratio greater than indicates that the market is valuing the company's stock higher than its book value In FPT Telecom's case, a P/B ratio of suggests that the market is willing to pay a premium for the company's stock It's important to note that the P/B ratio should not be used in isolation and should be considered along with other financial metrics and qualitative factors when evaluating a company's investment potential Additionally, a high P/B ratio may not necessarily be a bad thing, as it could reflect strong growth prospects or other positive factors VI RECOMMENDATION FPT Telecom can enhance its competitive position and drive growth in the market by implementing several strategic recommendations based on our analysis of financial statements and extensive research from 2019 to 2021 18 Firstly, expanding the paid television service with new localized content lines will attract a larger user base, particularly among customers opting for FPT's bundled internet and television package By diversifying content and tailoring it to local preferences, FPT Telecom can capture new market segments and increase revenue streams Secondly, establishing new sales channels in suburban and rural areas will improve market reach By expanding the distribution network, FPT Telecom can tap into untapped markets, increase the customer base, and enhance overall market share Infrastructure investments and effective marketing strategies are necessary for success Continuously investing in technology infrastructure and international internet transmission systems is crucial to deliver high-quality services, ensuring customer satisfaction and loyalty Staying ahead of competitors in terms of service reliability, speed, and user experience is essential for FPT Telecom Implementing digital programs and initiatives will enhance the customer experience, engagement, and satisfaction of Internet service users Streamlining the entire customer care process, from sales to after-sales support and maintenance, using digital solutions will lead to personalized experiences, efficient issue resolution, and proactive customer support, fostering long-term loyalty FPT Telecom should actively seek partnerships and integrate additional features into its ecosystem of Made by FPT products and solutions By leveraging external expertise and resources, FPT Telecom can enhance its offerings and address evolving customer needs, strengthening its market position and fostering sustainable growth In conclusion, FPT Telecom can position itself for long-term success by expanding its paid television service, establishing new sales channels, investing in technology infrastructure, implementing digital programs, and collaborating with partners These recommendations aim to enhance customer satisfaction, increase market penetration, and solidify the company's competitive advantage in the telecommunications industry References ELCOM (n.d.) ELC: CTCP Công Nghệ - Viễn Thông Elcom - ELCOM CORP VietstockFinance Retrieved May 20, 2023, from https://finance.vietstock.vn/ELC-ctcp-cong-nghe-vien-thongelcom.htm 19 FOX: CTCP Viễn thông FPT - FPT TELECOM (n.d.) VietstockFinance Retrieved May 20, 2023, from https://finance.vietstock.vn/FOX-ctcp-vien-thong-fpt.htm FPT (n.d.) ″ ″ - Wiktionary Retrieved May 20, 2023, from https://fpt.com.vn/-/media/project/fptcorporation/fpt/ir/report/tabs/annual-report/years/2019/2019/file-1/bao-cao-thuong-nien-2019.pdf FPT TELECOM (n.d.) bctc_rieng_2020-min.pdf Retrieved May 20, 2023, from https://fpt.vn/vi/ve-fpt-telecom/quan-he-co-dong/bao-cao-tai-chinh/bao-cao-tai-chinh-cong-ty-menam-2020 5952.html FPT TELECOM (n.d.) bao-cao-tc-rieng.pdf Retrieved May 20, 2023, from https://fpt.vn/vi/vefpt-telecom/quan-he-co-dong/bao-cao-tai-chinh/bao-cao-tai-chinh-rieng-cho-nam-tai-chinh-ketthuc-ngay-31-12-2021 7625.html Member’s Performance Review Student’s Name Role Student’s ID Contribution Mark Vũ Minh Châu Member 11211023 1.1 9.5 Bùi Thu Huyền Member 11212656 1.0 Nguyễn Hoàng Hải Member 11219692 0.9 Cao Tùng Lâm Member 11212977 0.9 Đỗ Đình Long Leader 11213521 1.2 10 20