Solutions to improve the financial situation of thanh do joint stock company

STATUTORY DECLARATION I herewith formally declare that this is a study done by myself with the support of the instructor The figures, the results stated in the thesis are honest from the actual situation of the internship unit I am fully responsible for this promise! Signature Trinh Khanh Linh Luận văn thạc sĩ Kinh tế ACKNOWLEDGEMENT In order to complete the thesis and finish the course, I would like to express my profound gratitude to the Academy of Finance for enabling me to have a good studying environment during my time at the school I would like to thank Dr Tran Thanh Thu assisted in the research process and directly guided the completion of this graduation thesis In addition, I express my warm thanks to all my colleagues at Thanh Do Joint Stock Company, specially accounting department who provided me with the facilities being required and conductive conditions for my report During the internship due to the limited theoretical and practical level, I cannot avoid the shortcomings, I am looking forward to receiving the teachers' suggestions to complete the thesis Signature Luận văn thạc sĩ Kinh tế Trinh Khanh Linh TABLE OF CONTENTS STATUTORY DECLARATION ACKNOWLEDGEMENT INTRODUCTION .1 CHAPTER : THE FUNDAMENTAL REASONING FOR THE EVALUATION OF FINANCIAL SITUATION OF THE ENTERPRISES .3 1.1 CORPORATE FINANCE AND CORPORATE FINANCE MANAGEMENT.3 1.1.1 Overview of Corporate Finance 1.1.2 Enterprise Financial Management 1.2 FINANCIAL SITUATION OF ENTERPRISES 1.2.1 Concept of corporate financial situation 1.2.2 Content and indicators reflect the financial situation of the enterprise 10 1.3 FACTORS AFFECTING THE FINANCIAL SITUATION OF ENTERPRISES 23 1.3.1 Objective factors .23 Luận văn thạc sĩ Kinh tế 1.3.2 Subjective factors 23 CHAPTER : THE STATUS OF FINANCIAL SITUATION IN THANH DO JOINT STOCK COMPANY IN THE PAST TIME .25 2.1 OVERVIEW OF THANH DO JOINT STOCK COMPANY 25 2.1.1 The process of formation and development .25 2.1.2 Organize the management apparatus and business operations of the company 27 2.2 CURRENT SITUATION OF FINANCIAL SITUATION AT THANH DO JOINT STOCK COMPANY 32 2.2.1 The size and structure of the company's equity and liabilities 33 2.2.2 The size and structure of the company's assets 40 2.2.3 Business performance results 45 2.2.4 Cash flow situation 49 2.2.5 Debt situation and solvency .57 2.2.6 Asset's ultilization and profitability on using capital situation 62 2.2.7 The situation of profit distribution of the company 67 2.3 GENERAL ASSESSMENT ON THE FINANCIAL SITUATION OF THANH DO JOINT STOCK COMPANY 68 2.3.1 The results achieved 68 2.3.2 Limitations and reasons 70 CHAPTER : SOLUTIONS TO IMPROVE THE FINANCIAL SITUATION OF THANH DO JOINT STOCK COMPANY 73 3.1 SOCIAL ECONOMIC BACKGROUND AND DEVELOPMENT ORIENTATION OF THANH DONG JOINT STOCK COMPANY IN THE COMING TIME 73 3.1.1 Socio-economic context 73 3.1.2 Objectives and development orientation of Thanh Do Joint Stock Company 75 3.2 SOLUTIONS TO IMPROVE THE FINANCIAL SITUATION OF THANH DO JOINT STOCK COMPANY 78 3.2.1 Improve solvency and debt collection 78 3.2.2 Improve business cost management solutions 79 Luận văn thạc sĩ Kinh tế 3.2.3 Find potential markets, diversify products and approach customers 80 3.2.4 Perform regularly, proactively and effectively the business financial analysis .81 3.3 CONDITIONS FOR IMPLEMENTING SOLUTIONS 81 3.3.1 Environmental conditions 81 3.3.2 Specific conditions for each solution .82 CONCLUDE 84 REFERENCES 85 LIST OF TABLES Figure 2.2.1: Capital structure of the Company in 2016-2019 33 Table 2.2.1: Capital structure of Thanh Do Joint Stock Company in 2016-2019 (Unit: million dong) .34 Table 2.2.1a: Difference in capital structure in 2016-2019 35 Table 2.2.1.2: Structure of capital sources by time of capital mobilization (Unit: million dong) .38 Table 2.2.2: Asset structure of Thanh Do Joint Stock Company in 2016-2019 (Unit: million dong) .41 Table 2.2.2a: Difference in assets structure in 2016-2019 42 Table 2.2.3.1:Business performance of the Company in the period of 2016-2019 (Unit: million dong) .45 Table 2.2.3.1a: Difference in business results of the Company in the period of 20162019 (Unit: million dong) 46 Luận văn thạc sĩ Kinh tế Table 2.2.3.2: Cost use level of the Company in 2016-2019 (Unit: million dong) 48 Table 2.2.4: Cash flow statement of the Company for the period of 2016-2019 (Unit: million dong) 49 Table 2.2.4a: Difference of cash flow statement of the Company during 2016-2019 .51 Table 2.2.5.1: Debt situation of Thanh Do Joint Stock Company in 2016-2019 (Unit: million dong) .58 Table 2.2.5.2: Liquidity ratios of Thanh Do Joint Stock Company in 2016-2019 .60 Table 2.2.6.1: Indicator reflecting the capital's ultilization of Thanh Do in 2016-2019 .62 Table 2.2.6.2: Criteria reflecting profitability on using capital situation of Thanh Do in 2016-2019 65 Table 2.2.7: Profit distribution situation of Thanh Do in 2016-2018 67 INTRODUCTION Rationale of the thesis The process of globalization opens countries with opportunities to promote economic growth and social development Specifically, on November 12, 2018, the Resolution on ratifying the CPTPP Agreement was approved by the National Assembly and came into effect for Vietnam from January 14, 2019; On 12/02/2020, the free trade agreement between the European Union (EU) and Vietnam (EVFTA) was approved by the European Parliament (EP), the developments are in a good direction; In the context that Vietnam is increasingly deeply involved in the global market, we see great opportunities ahead, this is an opportunity and also a challenge for Vietnamese enterprises in the quest to gain a foothold in the international market The world economy is showing many complicated changes, leading to Vietnam's economy are also affected, the most influential part is to mention that businesses, in which small and medium enterprises are occupying a large percentage Luận văn thạc sĩ Kinh tế of the economy, and also the place to create a major job in Vietnam Therefore, the health of small and medium enterprises also greatly influence Vietnam's competitiveness in the international arena Therefore, businesses have to proactively maintain their financial situation, leveraging the potential and resources available to drive business operations To implement effective management of business operations, the organization of assessment and analysis of the financial situation of enterprises must often be held regularly This is important not only for the business but also by investors, creditors, employees interested in making important ideas and decisions The evaluation of the financial situation is the introduction of the current state of the business, determining the factors affecting the business situation to bring the legal timely, an overview to stabilize and improve the efficiency of business production and business From the implications of the evaluation of corporate finance, after the internship period at Thanh Do Joint stock company, with the guidance of her teacher DR Tran Thanh Thu and the help of officers in the Financial-accounting department of the company, i chose to study and perform the final thesis with the subject: "Evaluate the financial situation at Thanh Do Joint stock Company" Research objective Properly assess the situation of the company, analyze the financial situation and operational efficiency of the company for the last years; Find the strengths that need to be promoted, as well as the limitations and causes thereby  offering solutions to improve the efficiency of business operations of the company Research subject and scope Research object: The topic aimed to find out the true situation of the financial situation of enterprises through the Financial Statements of Thanh Do Joint Stock Company Scope of research:  - Space: content to assess the financial situation of Thanh Do Joint Stock Company - About time: in years from 2016-2019.  - About source of data: the data is collected from the accounting department and financial statements of Thanh Do Joint Stock Company Luận văn thạc sĩ Kinh tế Research Methodology The project uses the following methods:  - Methods of collecting data from the company's accounting department, data from financial statements and related books.  - Methods of listing, comparing and analyzing to see trends of indicators.  - The evaluation method introduces strengths and limitations to offer solutions to improve the financial situation of the company Structure of graduate thesis The thesis is divided into three main chapters: Chapter 1: The fundamental reasoning for the evaluation of the financial situation of the enterprise Chapter 2: The financial situation and efficiency of production and business activities of Thanh Do Joint stock company in years of 2016-2019 Chapter 3: Some solutions to improve business performance at Thanh Do Joint Stock company CHAPTER : THE FUNDAMENTAL REASONING FOR THE EVALUATION OF FINANCIAL SITUATION OF THE ENTERPRISES 1.1 CORPORATE FINANCE AND CORPORATE FINANCE MANAGEMENT 1.1.1 Overview of Corporate Finance 1.1.1.1 Definition - Enterprises: (according to the Enterprise Law) “Enterprise is an economic organization with its own name, assets, stable transaction office, and is allowed to register its business in accordance with the provisions of law for real purposes current business activities ” - Corporate finance is an important tool, describing the process of mobilizing, distributing and using capital sources to finance the investment in the assets of the enterprise to create profit for the company owner 1.1.1.2 Corporate Finance decisions Luận văn thạc sĩ Kinh tế Depending on the conditions, specific circumstances of business activities that the business owner make different decisions, usually enterprises interested in research decisions mainly decision on investment, decision on capital and decision to divide profit - Investment decisions: are decisions relating to the total value of assets and the value of each asset department (fixed assets and mobile assets) The major investment decisions of the business, including:  Decision on investment in working assets: Decision on inventory, decision on sales policy, decision on short-term financial investment  Decision on investment in fixed assets: Decision on purchasing fixed assets, deciding on project investment, deciding on long-term financial investment  Deciding on the structural relations between investment in current assets and investment in fixed assets: Decision on using business leverage, deciding breakeven point Investment decisions are considered the most important of corporate finance decisions because they create value for the business A right investment decision will contribute to increase the value of the business, thereby increasing the value of the property for the owner conversely a wrong investment decision will damage the value of the business resulting in property damage to the business owner - Capital mobilization decisions: These decisions are associated with decisions on what kind of capital sources to choose to provide for investment decisions Major capital mobilization decisions of enterprises include:  Decision on short-term capital mobilization: decision on short-term loan or use of commercial credit; decide whether to take a short term bank loan or use a company bill  Decision to mobilize long-term loans: decide to use long-term debt through long-term bank loans or corporate bond issues; decision to issue share capital (ordinary shares or preferred shares); decide the structural relationship between debt and equity (using financial leverage); decide to borrow to buy or rent property Capital raising decisions are a significant challenge for corporate financial managers In order to make the right capital mobilization decisions, financial managers must have a firm grasp of the advantages and disadvantages of using capital raising Luận văn thạc sĩ Kinh tế tools, accurately assessing the current situation and forecasting correct market movements - future prices before making a decision to raise capital - Decisions on profit distribution: These decisions are associated with the distribution of dividends or dividend policy of the business  Financial manager will have to choose between using after-tax profits to pay dividends to shareholders or keep to reinvest These decisions relate to how an enterprise should pursue a dividend policy and whether the dividend policy will affect the value of the business or the company's share price in the market  Besides, in addition to three major decisions above, there are many other decisions relating to the business activities of the company such as the decision on purchasing, merging, the decision to prevent financial risk in production and business activities… Based on implementation time, it can be divided into groups: short-term financial decisions and long-term financial decisions - Long-term financial decisions: These are strategic decisions that have longlasting effects on the survival and development of businesses Each of these decisions requires administrators to carefully consider, methodically and scientifically analyze to ensure to minimize the risks that may occur Under long-term financial decisions include decisions on long-term investment, decisions on long-term capital mobilization and decisions on profit distribution policies of enterprises - Short-term financial decisions: These are operational decisions, which not significantly affect the survival and development of the business, so it is also called tactical financial decisions Main short-term policies include: decisions on capital reserve in cash, decisions on receivable debts, decisions on implementation of payment discounts, decisions on reserve capital reserves, decisions on depreciation of fixed assets The reasonableness and correctness of these decisions affect certain risks and benefits for the enterprise as well as its owners In short, financial managers must make financial decisions to maximize business value With every financial decision, the manager must always face the conflict between risk and profit A wise financial decision is a decision that can maximize the value of the business, so that the financial decision must minimize risks Luận văn thạc sĩ Kinh tế and maximize profits for the owner This is very difficult for managers in the process of analyzing and making decisions to choose the appropriate financial decisions 1.1.2 Enterprise Financial Management 1.1.2.1 Definition Corporate financial governance is the choice, decision making, and organization of financial decision making to achieve the operational objectives of the enterprise Because the financial decisions of the business are associated with the creation, distribution and use of monetary funds in the course of the operation of the business, therefore, corporate finance management is also seen as the process of creating, distributing and using the Monetary Fund to meet the operational needs of the business 1.1.2.2 Contents of enterprise financial management - Tham gia đánh giá, lựa chọn định dự án đầu tư The construction and selection of investment projects are carried out by many departments in the enterprise From a financial perspective, the key consideration is the economic efficiency of the project, which is to consider and weigh the costs, the 85 Although they want to show their desire for long-term cooperation, this is only a short-term policy and cannot be sustained for a long time because it can make the debt situation in enterprises turn negative Administrators need to make other policies to overcome more suitable to the actual situation - Fourthly, the ratio of cost of goods sold to net sales is high In 2016, revenue reached VND 264,753.67 million while the cost of goods sold was VND 248,985.73 million (accounting for 94%), high cost of goods sold reduced the net profit of Thanh Do This is because the supplier's policy regulates the selling price of goods sold in the supermarket so the company cannot affect the cost of goods sold The company can address this by negotiating prices with suppliers, thereby increasing its equity return - Fifth, the profitability indicators are not high The majority of indicators tend to decrease This is mainly due to high interest expenses, which affects the after-tax profit Maybe this is a negative sign Luận văn thạc sĩ Kinh tế 86 2.3.2.2 Reasons Objective reasons: - Lending policies of the bank are not really favorable for small and medium enterprises while this is the main type of business in Vietnam in recent years - The fluctuating economic situation and the Covid 19 epidemic caused the population shopping behavior to decline, the people tended to not want to concentrate in crowded places, but the supermarket was one of such places This partly affects the revenue of many businesses - Due to the characteristics of the retail business, the inventory turnover is increasing, requiring large amounts of short-term assets for business purposes, so the company has to mobilize short-term loans to finance for this item - Currently, there are many competitors in the area that make it difficult for businesses to reach customers so businesses are trying to make policies that are beneficial to partners Subjective reasons: Luận văn thạc sĩ Kinh tế - Ability to manage financial strength is not really effective, specifically, high interest expenses and receivables have not been thoroughly managed - The qualification of a part of the labor force at the enterprise is not high, some new departments have replaced personnel, making some assessments and decisions not really reasonable - The company has not focused on information technology, has not really expanded its sales channels, and has not had quick and reasonable ways to reach consumers 87 CHAPTER : SOLUTIONS TO IMPROVE THE FINANCIAL SITUATION OF THANH DO JOINT STOCK COMPANY 3.1 SOCIAL ECONOMIC BACKGROUND AND DEVELOPMENT ORIENTATION OF THANH DONG JOINT STOCK COMPANY IN THE COMING TIME 3.1.1 Socio-economic context In 2019, the international situation is complicated and has many unfavorable factors World economy, global trade slowed down; increased strategic competition and trade tensions among major economies; gold prices soar, crude oil prices fluctuate sharply; risks in the international market increase; Many countries loosen their financial and monetary policies The situation of the region and the East Sea is very complicated Meanwhile, internal difficulties and limitations of the economy and natural disasters, climate change, epidemics have greatly affected production and life In 2019, despite facing many difficulties and challenges, especially the regional Luận văn thạc sĩ Kinh tế and international situation, which evolved complicatedly and had many unfavorable factors, Vietnam's economy showed positive changes above many areas; is the second consecutive year that the National Assembly assigned and surpassed all 12/12 targets (of which exceeded the plan) Macroeconomic stability, stability, GDP growth rate of 7.02%, exceeding the target set by the National Assembly (from 6.6 to 6.8%) and belongs to the group of leading high-growth countries in the region and the world At the same time, inflation was controlled at a low of 2.79%, which is the lowest increase in the period 2016-2019 The financial, monetary and exchange markets are operated proactively, flexibly and stably Foreign exchange reserves reached about 79 billion USD, total state budget revenue was 1,400 trillion dongs, public debt decreased Monetary policy was effectively operated, stabilizing the foreign exchange market, exchange rate; Foreign exchange reserves continued to rise sharply National credit rating is improved In particular, Vietnam is internationally regarded as the best country to improve global competitiveness In 2019, it has also mobilized many resources for development investment, the total social development investment capital in 2019 is estimated at about 33.8% of 88 GDP, promoting the dynamic role of the private sector with the the proportion of investment increased to 45.3% of GDP Investment and construction of transport infrastructure continue to be improved National defense and security were strengthened, social order and safety were maintained; Foreign affairs and international economic integration have gained many important achievements, foreign relations have developed strongly and deeply The fields of science and technology, labor, employment, social security, social welfare and other fields have achieved certain results The prevention and fight against corruption and waste have been drastically implemented and achieved many important results Prestige and position of the country continue to be raised - Retail industry prospect  In Vietnam, the average income is increasing, specifically the second highest growth rate in the region creates an effect that makes Vietnamese consumers spend more, showing the result of output growth Table 3.1.1a: Growth rate of per capita income in ASEAN region Luận văn thạc sĩ Kinh tế In particular, the retail industry is one of the most important economic sectors in Vietnam, with the growth rate of the retail industry is always high from half to double the national GDP growth and a large proportion of the total GDP Investing in retailing is investing in the future of the economy in Vietnam 89 Table 3.1.1b: Retail growth vs GDP Currently, the total retail sales of goods and revenue of consumer services have reached a high growth rate compared to the previous year, showing that the demand of consumers is increasing At the same time, the supply of goods on the market is plentiful, fully capable of meeting production and consumption needs The expanding consumer market contributes to the excitement of the retail market Table 3.1.1c: Retail growth rate Luận văn thạc sĩ Kinh tế Thus, the retail industry is one of the industries that play an important role in the entire Vietnamese economy It is important to invest in and develop industries since then to strongly develop the country's economy 3.1.2 Objectives and development orientation of Thanh Do Joint Stock Company In order to come up with accurate strategies,Thanh Do always has to assess the status of the company itself, namely, Thanh Do has a variety of business items, a large number of loyal customers with a distribution network, widely coordinated, capable of developing and expanding the business scale In the short term the company has an advantage to grow However, in the long term, before the expansion of the scope of activities of major distributors, not to mention many other distributors have consulted and found locations to open supermarket chains such as Big C; with the appearance of 90 VINMART and a number of mini supermarkets the market share of the company will face fierce competition from these competitors About activities and prospects: STRENGTH Market WEAKNESS  Having participated in the distribu-  There are many businesses doing tion for a long time, therefore, it has business in the same field, in ad- a large market share dition, there are shops and small  Prestige, known by many con- supermarkets sold at convenient locations for consumers sumers  Large number of loyal customers Products and services  Diversified and diversified products  No high-end products yet suitable to common needs and income of the majority of the population in the province  Reasonable price  Promotion policies from time to Luận văn thạc sĩ Kinh tế time Distribution  There are many distribution chanchannel nels both inside and outside the province OPPORTUNITY Market CHALLENGE  Expanding market share to neigh-  In the province, especially in the boring provinces city with the participation of some famous distributors such as Media Mart, Dien May Xanh, that is inevitable to share the market Products and services  Diverse goods, guaranteed quality,  Diversifying competitive prices products and services further, towards a large supermarket to meet the needs of the people is a challenge, from which businesses compete in the same field Distribution  Expansion of distribution channels  Ability to compete with other 91 channel through optional store network competitors in the area  New distributors are also developing markets to potential districts In the context of fierce competition in the market, with the fact that many new distributors are seeking to increase market share, Thanh Do Joint Stock Company maintains its position and stability is an encouraging success The company's activities directly create jobs and income for direct, indirect employees, etc annually contribute significantly to the local budget, the total annual budget contribution is over 1,000 million VND, The tax is fully and punctually paid by the company, there is no penalty for late payment Scale and performance are well maintained The retail market in Lang Son is divided into areas: the city area and the rural area (including many districts and communes), in the enterprise city area, there is a store at 96 Phai Ve,.Dong Kinh ward and a buffet shop: Huong Ha (P.Vinh Trai) Currently, Thanh Do has to share the market with many other competitors such as Vinmart, Dien may Xanh so the company is studying and orienting to expand the Luận văn thạc sĩ Kinh tế business market to the districts and communes in the locality Lang Son province in 2020 through research, businesses found that: Consumers in rural areas often favor price factors over quality and service, many parts believe that prices in modern stores, supermarkets are more expensive than local markets and traditional stores and grocery stores Meanwhile, the current price in Thanh Do supermarket is not more expensive than in markets and traditional stores In this area, competitors are mainly traditional small shops The company is quite confident about the current sales policies, the reasonable price of the items and about its current position Therefore, the company decided to use collaterals to raise about billion more loans along with billion of equity capital to invest in stores in Dinh Lap district (due to the large area of the district, the population is quite crowded ) and Bình Gia district (since there is currently no retail supermarket) To achieve these goals, Thanh Do has set up strategies such as: - Strategy on labor resources 92 Labours is an important factor affecting the long-term development of an enterprise, so Thanh Do always tries to select employees suitable for the position, improve qualifications, update knowledge to facilitate development for staff In addition, businesses always perform fully obligations and responsibilities to employees, ensure benefits for employees, publish salary policies, welfare funds With the current workforce of 80 people, businesses conduct the evaluation of the performance of departments and individuals, estimating to minimize the positions that are not really necessary to minimize costs The salaries of current employees at the same time considering recruiting or transferring existing personnel to the upcoming store are expanded in Dinh Lap and Binh Gia districts - Financial strategy Thanh Do's strategy is to operate a system of supermarkets, stable retail stores, growing, striving for sustainable production and business growth in 2020 Regarding specific costs and cost planning, reduce the maximum interest expense, make the most of available resources, use the most qualified capital, use leverage effectively, thereby Luận văn thạc sĩ Kinh tế increasing profits for the owner In addition, the company has made great efforts in stabilizing and strictly managing cash flows by developing reasonable capital mobilization and utilization plans in the current market conditions Along with that, as an enterprise in the retail business, Thanh Do is also interested in inventory management, increasing inventory turnover, reducing receivables from customers to ensure cash flow continuous, regular operation - Market strategy Clearly identify the target groups, conduct an analysis of the target market and customer needs, plan an effective Marketing organization, select a branding channel suitable to the level of technology and the intellectual level in the area Develop customer policies appropriate to each business period such as sales promotion, discount items to attract consumers 3.2 SOLUTIONS TO IMPROVE THE FINANCIAL SITUATION OF THANH DO JOINT STOCK COMPANY From the above analysis results, I would like to have some suggestions to improve the financial situation of the company as follows: 93 3.2.1 Improve solvency and debt collection In 2019, the solvency ratios have improved but still not really good, namely the quick solvency ratio and very low instant solvency ratio (less than 0.04), showing that shows that the ability to pay short-term debts of the company is not really sure in case the company faces liquidity risks or unforeseen risks such as warehouse explosion This may affect the company's reputation with partners or creditors So the company needs to implement improvement solutions - First, Thnh Do needs to increase debt collection, increase receivables turnover by introducing policies to encourage customers to pay early and on time The company may use the policy as an early payment discount, or a prepaid customer discount, but need to calculate the discount rate accurately and compare with the interest rate at the bank -  Secondly, the company should clearly and specifically plan borrowing costs in order to minimize interest expenses On the other hand, loans are the main source of funding for inventories, so Thanh Do can negotiate with suppliers about reducing Luận văn thạc sĩ Kinh tế deposits, increasing payday cycles, increasing appropriated capital is intended to ease repayment pressure 3.2.2 Improve business cost management solutions The crisis of the world economy in recent years has had negative effects on the stability of our country's economy The price of consumer goods is increasing, in the short term affecting consumer purchasing power Besides, other costs such as fuel costs, electricity and water also increased Increasing management costs of the business General and administration expenses account for a large proportion of the cost norms, including selling expenses (introduction costs, product advertising, shipping costs, etc.) and management costs enterprises (salaries and insurance costs for employees; depreciation costs; service costs such as electricity and water; land rental, ) Reducing business costs is also a measure to increase the competitiveness of enterprises, increase profits of owners - Firstly, in order to save production costs, it is necessary to minimize selling costs, in which transport costs are mainly because this activity must take place regularly and continuously, it is necessary to determine the distance between 94 warehouses of the supplier whose warehouse, provides an optimum method, for example, transporting the maximum possible quantity but not exceeding the specified tonnage, choose the nearest route, together with it, with the present condition that increase in people's income leads to the increasing demand for transportation and the traffic means in the area, so the selection of transport time is also necessary to minimize the cost of petrol and oil Moreover, the main products of the company are consumer goods, the shelf life of the above items is short, in the process of transporting goods, there may be some preservation risks affecting the quality product, this can result in increased costs On the other hand, the item for advertising and product introduction can not be ignored, specifically this is the marketing cost, need to clearly identify the target customers, capture the psychology of customers to promote the product, can just hit the customer psychology (number of customers access to the largest promotional information possible), and can minimize the number of promotions to reduce costs -  Secondly, conducting the evaluation and evaluation of the performance of Luận văn thạc sĩ Kinh tế departments and individuals, estimating to minimize the positions that are not really necessary to maintain the salary in line with the labor productivity of the employees, moreover, for stores that are about to expand need to recruit suitable personnel for the position, put forward many policies for the labor force to commit to long-term commitment, the purpose is to reduce recruitment costs in the long run - Thirdly, minimize risks from factors of fire, power short-circuit fire At shops, supermarkets and warehouses, there are many types of flammable goods To reduce this risk, buying insurance for goods and facilities can be a good choice In fact, the company has also conducted insurance for the goods in the warehouse, but still needs to be alert, especially in the summer when the use of electrical equipment increases sharply, the risk of fire always on 3.2.3 Find potential markets, diversify products and approach customers - Actively seeking customers and expanding business to other districts in Lang Son province Most of the districts in the province not have many modern stores but only household stores, traditional shops, etc., so the expansion of these locations is 95 feasible, customers often have The trend of shopping at the store has many choices, moreover the price at the Thanh Do system is reasonable - With supermarkets in the areas of Lang Son City and Hanoi, the company currently mainly trades essential goods, affordable prices, has not developed high-class products targeting high-income customers Therefore, diversifying products and services, targeting a large supermarket to meet the needs of many income classes can be a solution Specifically, administrators need to consider customer needs with multiple income levels, information gathering, and product development targeting more customers - Moreover, according to MBS's Retail Sector Report, the number of Internet users in Vietnam is growing very fast, affecting consumption behavior of the population Businesses may consider developing Internet advertising to reach users faster Businesses can promote products on social networking sites targeting the needs of retail customers in the area, with this group of customers, adjust some delivery policies within close radius, or free delivery for invoices with a value of million or Luận văn thạc sĩ Kinh tế more, This also brings more opportunities for cooperation with Chengdu other partners outside the area 3.2.4 Perform regularly, proactively and effectively the business financial analysis The analysis of business operations of enterprises often plays a very important role in the process of operating businesses, especially in the context of the economy is constantly changing as today Business performance analysis reflects the current situation of the business, from which the administrator can make the right business decisions - Regarding the analytical process: it is necessary to clearly define the analytical objectives and scope, and select the data to be collected logically, completely and logically From the clear orientation of the objectives, the determination of analytical focus becomes more clear, serving the development of an effective long-term analytical system - The human factor is the deciding factor when operating an enterprise similar to the analysis of corporate finance, so training and human resource development cannot be ignored 96 3.3 CONDITIONS FOR IMPLEMENTING SOLUTIONS 3.3.1 Environmental conditions - The State needs to perfect the strict legal system, create a legal corridor for production and business activities of enterprises Towards the completion of the operational apparatus in agencies such as Tax and Customs, reducing cumbersome legal procedures, continuing to implement online declaration to reduce time and costs in order to facilitate for business - The city needs to pay more attention to businesses, put forward reasonable policies, create favorable conditions for businesses to develop, on the other hand, this contributes significantly to creating jobs for workers, reduce the burden on society, contribute into the City budget - The Bank should issue policies on loan conditions, loan interest rates, creating conditions for small and medium-sized enterprises to develop 3.3.2 Specific conditions for each solution  Improve business cost management solutions Luận văn thạc sĩ Kinh tế - For solutions to increase debt collection, increase receivables turnover, when using discount payment policies for customers (particularly discount interest rates), it should be considered in relation to interest rates Borrowing loans from banks because businesses will always have to maintain the repayment of loan interests, implementing this policy can reduce an income, affecting the ability to pay interest The maximum discount rate that businesses can offer to customers must be equal to the bank rate - For solutions to reduce interest expenses, negotiate with suppliers about reducing the deposit of goods, increasing the amount of capital appropriated to reduce the pressure of debt repayment, need a long-term business commitment with suppliers to create reputation, however, carefully studying the supplier's information and the price offered by that supplier is also very important information Improve business cost management solutions - For solutions to reduce selling costs, particularly shipping costs, because the company actively transports, it is necessary to consider the issues of transport management, in particular, transportation and loading time The importance of transportation means, in coordination with suppliers, to ensure that the volume of 97 inventories at each time of transportation does not affect the quality of goods as well as business activities - For the solution to effectively use salary costs for employees, it is necessary to implement a public and transparent policy at the company, set up a clear promotion roadmap, ensuring the rights of employees in terms of materially as well as mentally - For measures to improve the quality of fire prevention and fighting to minimize the likelihood of fire and explosion, leading to an increase in the cost of enterprises, there should be a section in charge of ensuring the adequacy of fire prevention and fighting equipment (average fire, faucet, plumbing, ), facilities, equipment need to ensure quality, periodic maintenance monitoring to always in the best operating condition, every year need to plan drills fire protection (all staff members must be involved) Find potential markets, diversify products and approach customers - For the solution of finding customers and expanding business to other districts in Lang Son province, it is necessary to research and find the market with potential for Luận văn thạc sĩ Kinh tế development, least of the most competitive competitors, along with human resources with appropriate qualifications to develop the market - For solutions aimed at customers at different income levels, attention should be paid to market development research, accurate, timely and objective collected information - For Internet promotion solutions, businesses need to research consumer behavior of customers, focus on investing in information technology platforms, expanding Internet marketing channels Perform regularly, proactively and effectively the business financial analysis - For solutions to improve the knowledge of labor resources, it is necessary to constantly update new knowledge, improve the level of human resource training, particularly employees of the business planning department 98 CONCLUDE The internship and practical experience at Thanh Do Joint Stock Company helped me understand the importance of financial decisions in a business During the internship, with the knowledge accumulated at the university, especially the enthusiastic help of the teacher Dr Tran Thanh Thu - Department of Corporate Finance, as well as the Accounting department at Thanh Do Joint Stock Company, I have finished my thesis with the subject: “Assessing the financial situation at Thanh Do Joint Stock Company ” From the knowledge accumulated at the Academy and the practical process combined with in-depth knowledge of the company, to a certain extent, in accordance with my abilities, I have been in charge of assessing and analyzing the financial status of Thanh Do Joint Stock Company for the period of 2016-2019 and offer some solutions to improve the financial situation of the company I hope these comments can help the company management Luận văn thạc sĩ Kinh tế However, with limited capacity and not long practice time, the implementation of this topic cannot avoid shortcomings because this is a general and complex problem that requires a lot of practical experience I look forward to receiving the advice and additional comments from the teachers and brothers and sisters at Thanh Do Joint Stock Company to help me to improve this thesis Finally, once again I would like to thank my teacher Dr Tran Thanh Thu, teaching in Department of Business Finance, and all the members in Thanh Do Joint Stock Company for helping and guiding me to complete this graduation thesis   99 REFERENCES https://thebank.vn/blog/17144-quan-tri-tai-chinh-la-gi-va-tam-quan-trong-voi-suphat-trien-cua-doanh-nghiep.html https://ketoansaovang.com.vn/vn/tin-tuc/119/khai-niem-va-y-nghia-cua-phantich-tai-chinh-doanh-nghiep.html https://vietnambiz.vn/von-bang-tien-cash-and-cash-equivalents-la-gi-ke-toanvon-bang-tien-20190825122603211.htm http://ngheketoan.edu.vn/Detail/20171/Phan-tich-kha-nang-tao-tien.aspx https://voer.edu.vn/m/hieu-qua-su-dung-von-trong-doanh-nghiep/ef05e3c6 http://vpcp.chinhphu.vn/Home/Toan-van-Bao-cao-do-Thu-tuong-trinh-bay-truocQuoc-hoi/201910/26696.vgp Luận văn thạc sĩ Kinh tế