Analysis of vinamilks financial ratios compared to rival companies habeco and vinacafe

NATIONAL ECONOMICS UNIVERSITY SCHOOL OF ADVANCED EDUCATIONAL PROGRAMS REPORT FINANCIAL BUSINESS Group Advanced Accounting 60 Nguyen An Binh Nguyen Ngoc Huyen Nguyen Thi Khanh Linh Nguyen Thu Phuong Hoang Le Trang Hoang Khanh Van Ha Noi - 2021 Table of Contents INTRODUCTION I Overview Vinamilk Product Line Market Share 4 Development Orientation Financial Reports Rival companies II i Hanoi Beer - Alcohol - Beverage Joint Stock Corporation (HABECO) ii Vinacafe Bien Hoa Joint Stock Company (VCF) 12 Analysis of Vinamilk operations 16 Analysis of Balance Sheet 16 Analysis of Cash Flow Statement .18 Analysis of Income Statement 19 III Analysis of Vinamilk's financial ratios compared to rival companies Habeco and Vinacafe 21 Liquidity Ratios 21 i Current Ratio (= Current Assets / Current Liabilities) 22 ii Quick Ratio (= (Current Assets - Inventory) / Current Liabilities) 23 iii Cash Ratio (= Cash / Current Liabilities) 24 Leverage Ratio 25 i Total Debt to Total Assets Ratio (= Total Liabilities / Total Assets) .25 ii Total Debt to Total Equity Ratio (= Total Debt / Total Equity) 26 Efficiency Ratio 27 i Profit ratio from business activities 28 ii ROA coefficient 28 iii ROE coefficient 28 iv Ratio of the ability to pay interest on EBIT / interest 29 IV Market price indexes 30 i Price to Earning Ratio (P/E) 30 ii Price to Book Ratio (P/B) 31 Conclusion 32 Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe INTRODUCTION Financial analysis is used to review economic conditions, to develop financial policies, to develop long-term corporate activities strategies and to recognize investment ventures or businesses The processing of financial figures and statistics is used for this A financial analyst will analyze the financial statements of a company thoroughly, including the statement of income, balance sheet and cash flow In both business finance and investment finance, financial reporting will be carried out One of the most popular methods of analyzing financial data is to measure data ratios and equate those of other firms and the past performance of a firm By applying these methods on this report, Group aims to discuss about financial position and financial performances of Vietnam Diary Joint Stock Company – Vinamilk in the threeyear period, staring from 2017 and make comparisons with Hanoi Beer - Alcohol - Beverage Joint Stock Corporation – HABECO and Vinacafe Bien Hoa Joint Stock Company – VCF in term of ratios (discussed below) for the same timeframe Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe I Overview Vinamilk Vinamilk Dairy Company, established in 1976, was one of the first listed companies on the stock exchange of Vietnam After more than 40 years of consumer launch, up to now, the company has had branches of sales offices, logistics factories, 14 factories stretching from North to South, and 220,000 points of sale covering all 63 provinces nationwide In 2018, Vinamilk is one of the top 200 companies with the best over a billion-dollar revenue in Asia Pacific Nowadays, Vinamilk is still the most favored milk brand used by consumers in Vietnam with revenue in 2019 reaching 56,300 billion VND (equivalent to more than billion USD) In early 2020, thanks to the strict conditions of complying with the Covid 19 epidemic prevention regulations, the solidity of resources and appropriate strategic adjustments, Vinamilk has been able to stand firmly in the domestic market during a turbulent period because of Covid 19 Product Line Vinamilk provides the market with a wide range of products for consumers The company currently has over 250 dairy products with key product groups such as liquid milk, yogurt, and powdered milk; products with added value like condensed milk, cream and cheese, soy milk, fruit juices, and so on Market Share After years of operation, Vinamilk not only maintains its leading role in the domestic market but also competes effectively against foreign dairy brands In general, Vinamik accounts for over 50% of the domestic market share depending on the type of product Over 90% of Vinamilk's export turnover is from the Middle East, especially Iraq To reduce risk, Vinamilk is expanding its market to other markets like Australia, the USA, Canada, and Thailand In addition, VNM is trying to penetrate the coffee and beer market Development Orientation The Company's main goal is to maximize share value and pursue a business development strategy based on the following key factors: Consolidate, build, and develop a system of powerful brands to best meet the needs and consumer sentiment of Vietnamese people Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe Make Vinamilk brand the most trusted nutrition brand nationwide through the strategy of applying scientific research on consumers' specific nutritional needs to develop the most optimal product lines Strengthen the distribution system and quality to gain more share in markets where Vinamilk's one is not high, especially in rural and small urban areas Comprehensively develop the portfolio of dairy and dairy products to target a large number of consumers, and at the same time, expand the manufacture of high value products with high selling prices to improve overall profit margin of the whole Company Continue to improve supply system management capacity Develop organic milk materials in Moc Chau and expand market share in the North by raising its ownership in GTN to 75%, Vinamilk and increasing the total herd of cows to 155,000 Until 2021, continue to M & A with dairy companies in other countries to expand market share and sales Financial Reports Balance Sheet (VNM) Unit: 1,000,000 VND 2017 2018 2019 Short-term assets 20,307,435 20,559,757 24,721,565 Cash and cash equivalents Short-term investments Short-term receivables 963,336 10,561,714 4,591,703 1,522,610 8,673,927 4,639,448 2,665,195 12,435,744 4,503,155 4,021,059 169,623 5,525,846 197,926 4,983,044 134,427 Long-term assets 14,359,884 16,806,352 19,978,308 Fixed assets 10,609,309 13,365,354 14,893,540 95,273 90,248 62,018 Long-term investments 555,498 1,068,661 986,676 Other long-term assets 3,046,029 2,193,646 4,014,904 Total assets 34,667,319 37,366,109 44,699,873 Liabilities 10,794,261 11,094,739 14,968,618 Short-term liabilities 10,195,563 10,639,592 14,442,852 Long-term liabilities 598,698 455,147 525,766 Owner’s equity 23,873,058 26,271,369 29,731,255 Owner's invested capital 14,514,534 17,416,878 17,416,878 Inventory Other current assets Investment properties Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe Undistributed profit after tax Liabilities & Owner’s equity 5,736,921 7,155,434 7,875,462 34,667,319 37,366,109 44,699,873 Income statement (VNM) Unit: 1,000,000 VND 2008 Net Sales 2009 2010 8,208,982 100% 10,613,771 100% 15,752,866 100,0% (5,610,969) -68.4% (6,735,062) -63,5% (10,579,208) -67,2% 2,598,013 31,6% 3,878,709 36,5% 5,173,658 32,8% 264,810 3,2% 439,936 4,1% 448,530 2,8% (197,621) -2,4% (184,828) -1,7% (153,199) -1,0% Interest expenses (26,971) -0,3% (6,655) -0,1% (6,172) 0,0% Selling expenses (1,052,308) -12,8% (1,245,476) -11,7% (1,438,186) -9,1% Administration expenses (297,804) -3,6% (292,942) -2,8% (388,147) -2,5% Operating Profits 1,315,090 16,0% 2,595,399 24,5% 3,642,656 23,1% 136,903 1,7% 143,031 1,3% 982,987 6,2% (6,730) -0,1% (7,072) -0,1% (374,202) -2,4% Net others income 130,173 1,6% 135,959 1,3% 608,786 3,9% Losses (73,950) -0,9% 0,0% (235) 0,0% Total profit before tax 1,371,313 16,7% 2,731,358 25,7% 4,251,207 27,0% Current income tax (161,874) -2,0% (361,536) -3,4% (645,059) -4,1% 39,259 0,5% 6,246 0,1% 9,344 0,1% 1,248,698 15,2% 2,375,693 22,4% 3,616,185 23,0% Cost of goods sold Gross Profits Financial Income Operating expenses Other income Other expenses Deferred income tax Profit after tax Indirect Cash Flow Statement (VNM) Unit: 1,000,000 VND 2017 2018 2019 12,228,945 12,051,696 12,795,710 1,299,870 1,626,632 1,948,073 I Cash flows from operating activities Profit before tax Adjustments for Depreciation and amortization Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe (Profits)/losses from allowance and provisions 9,212 (91,866) 7,333 Unrealized foreign exchange (gains)/losses 3,716 (1,358) 6,458 (67,134) (576,618) (1,513) Interest expense 29,439 51,367 108,825 Gain/Losses on disposals of fixed assets 11,626 43,964 (770,1280 (726,648) 24,621 67,952 (Profits)/losses from investing activities Dividends and interest income Goodwill Others 5,717 Operating profit before changes in working capital 12,770,169 13,059,853 14,255,870 (Increase)/decrease in receivables (1,599,146) (108,536) 373,595 (Increase)/decrease in inventories 318,470 (1,685,437) 401,995 (Increase)/(decrease) in payables (excluding Interest expense 958,730 (14,513) (399,803) (10,000) 68,659 16,409 payable, Income tax payable) (Increase)/decrease in prepayments (Increase)/decrease in trading securities Interest paid Income tax paid (4,480) (65,131) (110,740) (227,917) (1,933,510) (1,879,580) (2,033,592) Other receipts from operating activities 149 Other payments for operating activities (837,987) (1,189,616) (972,149) Net cash flows from operating activities 9,601,595 8,140,239 11,409,929 (2,672,989) (3,185,795) (2,158,249) 120,711 94,476 114,090 1,199,162 (3,215,380) 301,872 193,016 2,598 (86,830) (147,107) (2,158,238) 23,329 18,468 1,513 754,960 782,637 665,791 II Cash flows from investing activities Payments for additions to fixed assets and other long-term assets Proceeds from disposals of fixed assets Payments for lending loans, purchase of debt instruments of other entities Proceeds from collecting loans, sales of debt instruments of other entities Payments for investments in other entities Collections on investments in other entities Receipts of interests and dividends Increase/decrease in term bank deposits (218,249) Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe Buy-back of capital contributions from minority shareholders in the subsidiary Other receipts from investing activities 6,206 Other payments for investing activities Net cash flows from investing activities (1,770,989) (1,045,145) (6,747,875) III Cash flows from financing activities Proceeds from shares issued, receipt of capital contribution Payments for shares returns and repurchases 127,769 (5,983) (3,326) (1,159) 2,777,050 4,827,980 10,426,775 (4,224,187) (4,103,589) (6,233,113) (5,805,808) (7,256,172) (7,836,251) (7,535,345) (6,535,107) (3,515,979) Net cash flows during the period 295,260 559,987 1,146,075 Cash and cash equivalents at the beginning of the period 655,423 963,336 1,522,610 12,653 (713) (3,491) 963,336 1,522,610 2,665,195 Proceeds from short-term and long-term borrowings Payments to settle loan principals Payments to settle finance lease liabilities Payments of dividends Other receipts from financing activities Other payments for financing activities Net cash flows from financing activities Effect of exchange rate fluctuations Cash and cash equivalents at the end of the period (276,417) Rival companies i Hanoi Beer - Alcohol - Beverage Joint Stock Corporation (HABECO) Hanoi Beer-Alcohol-Beverage Joint Stock Corporation (HABECO) is the third largest beer company in Vietnam and is the owner of the Hanoi Beer and Truc Bach Beer brands It is owned and authorized by the Ministry of Industry and Trade, Vietnam and has a strategic partnership with the Carlsberg Group, which owns more than 10% of the company's shares as of November 2012 The main operating lines of the Corporation include: Manufacturing and trading Beer - Wine - Beverage and Packaging; Import and export of raw materials, materials, equipment, spare parts, raw materials, chemicals; Science and technology services, investment consulting, creating investment capital, organizing raw material areas, trading real estate, other services, and professions according to the law Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe Beer and bottled water products include: Hanoi only beer cans Truc Bach canned beer Hanoi beer bottles Hanoi green beer Hanoi canned beer Hanoi green beer cans Hanoi Premium Beer Hanoi Bold & Light bottled beer Hanoi Premium canned beer UniAqua bottled water Truc Bach Beer Balance Sheet (BHN) Unit: 1,000,000 VND 2017 2018 2019 Short-term assets 5,330,869 5,385,393 4,196,519 Cash and cash equivalents 2,154,885 1,733,702 1,297,005 Short-term investments 1,560,567 2,043,123 1,570,539 Short-term receivables 334,766 431,414 374,516 Inventory 950,173 805,568 638,557 Other current assets 330,478 371,586 315,902 Long-term assets 4,281,136 3,817,453 3,575,657 Fixed assets 3,591,082 3,219,183 2,887,037 7,404 6,834 6,712 306,856 273,431 292,104 Total assets 9,612,005 9,202,846 7,772,176 Liabilities 5,091,035 4,272,091 2,590,613 Short-term liabilities 4,519,238 3,869,913 2,328,507 Long-term liabilities 571,797 402,178 262,106 Owner’s equity 4,520,970 4,930,755 5,181,563 Owner's invested capital 2,318,000 2,318,000 2,318,000 253,602 711,306 987,117 Investment properties Long-term investments Capital surplus Undistributed profit after tax Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe Net cash increase for period 295,260 559,987 1,146,075 Cash at end of period 963,336 1,522,610 2,665,195 Cash flow from operating activities of the company had always been positive over the years This partly shows the efficiency in the company's main business Cash flow from operating in 2019 of the company was 11,409 billion, up 40% compared to 2017 The main reason was the sharp decline in inventories and the decrease in receivables in revenue of businesses Much of the revenue brought real cash flow to the company and was a part of the reduced receivables and reduced inventory This was a very good sign that the company has a moderate sales promotion The revenue has increased slowly but the cash flow has increased significantly accordingly Cash flow from investing activities in the period 2017-2019 had been negative, especially in 2019, this number was the largest, increasing more than times compared to the previous year This shows that the company always carried out many of its investment activities during this period Cash flow from investment activities of the company was mainly used for the expansion of fixed assets, expansion of production and business activities The company's investment in finance companies for the 2017-2019 period was very small The decision to focus on investing in its operations instead of making profits from Vinamilk's financial activities during the current difficult financial market was the right decision when it always brought very good growth in profit over the years Cash flow from financing activities of the company in the period 2017-2019 had been always negative, and the largest share of spending belonged to the cash flow to pay dividends to shareholders Due to the policy of Vinamilk in investing mainly using the cash flow from its own capital, the negative cash flow from financial activities was understandable and showed the safety of the companies, investment activities of the company, reducing interest rate risks and new shareholder pressure Comment: The growth in the company's revenue and profit has resulted in real cash flow growth from the business, showing that the company is making a profit for itself However, a part of the added revenue did not generate real cash flow for the company but was still in the receivables except for 2018 (there was a sudden decrease in provisions) With the bad debt provisioning rate increasing again in 2019, the company was at risk of losing its real revenue due to inability to recover debts Increasing the company's mobilization of cash and liquid assets in 16 Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe 2019 was understood as a move to prepare to conduct major investment projects in 2020, creating prospects for strong and sustainable growth firm in the following years for the company Analysis of Income Statement Table of Revenue - Expenses 2017 Total revenues 2019 51,857,393 53,321,867 57,125,440 98.4% 98.6% 98.6% 1.6% 1.4% 1.4% 52.5% 53.2% 52.8% Revenue from operating activities / Total revenues Financial income / Total revenues COGS / Net sales Total expenses 2018 (39,628,448) (41,270,171) (44,329,730) COGS / Total expenses Selling and general administration expenses / Total expenses Financial expenses / Total expenses 67% 67% 67% 32% 32% 32% 0.2% 0.3% 0.4% Table of Revenue Growth, Cost of Goods Sold 2017 2018 2019 Net sales COGS Total net profits before tax Profit after enterprise Growth Annual average 2017-2019 growth 9% 3% 7% 19% 6% 10% 4% 6% 20% 6.6% 9% -1% 6% 14% 4.6% 10% -1% 3% 12% 4% 17 Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe income tax Net sales in 2019 was 56,318 billion VND, up 4% compared to 2018 However, net sales fluctuated when it increased to 9% in 2017, decreased sharply to only 3% in 2018 and then went up to 7% in 2019 Compared to rival companies, Vinamilk's net sales were much higher when all indexes were greater than 3% This was a Vinamilk's positive sign as Vinamilk's revenue growth was still quite good Vinamilk's net sales accounted for the majority of total revenues (98.4-98.6%) This means that Vinamilk mainly focused on its core business and generated real profits from core business, not investing much outside the industry to make profits In addition, in 2019, Vinamilk's total revenue was more than 57,000 billion VND (about 5-20 times higher than rival companies), proving that Vinamilk had a high level of revenue in the industry Along with the growth of revenue is the growth in company profits In 2017, Vinamilk's pretax profit increased to 9%, reaching more than 12 billion VND In 2018, the company is showing signs of loss when the profit margin is -1% But then, Vinamilk's pre-tax profit in 2019 jumped to 6% (equivalent to more than 700 million VND) The growth rate of profit over the years 2017-2019 is 14%, the average annual profit growth is 4.6% Profits mainly from operating activities is a good sign that the correct operation of the main operating line and main operating profit results are always good Vinamilk's cost of goods sold accounts for the largest proportion in the total expenses of the enterprise Therefore, an increase in the cost of goods sold reduced the company's profit in the period As can be seen, the ratio of Cost of goods sold / net sales increased to 53.2% in 2018 and then decreased to 52.8% in 2019 This means that in 2019, company had a higher profit compared to last year 2018 had been a difficult year for VNM, but it was improved in 2019 as the company's profits increased Comment: Vinamilk's revenue and operating profits grew at a not too high rate over the years 2017-2019 but still very high and stable compared to other companies in the same industry as well as listed companies on the Vietnamese stock exchange Revenue and profit mainly come from the company's core business and not from out-of-industry investment or unusual activities during the year Since then, it shows that Vinamilk is in a period of relatively stable growth and tends to last when there is a lot of investment and development continuously With the current business results, investment profit in the company is not too high, but positive, stable, 18 Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe and low risk That is evidenced by the continuous increase in Vinamilk's stock price over the years and among the highest in the market III Analysis of Vinamilk's financial ratios compared to rival companies Habeco and Vinacafe Liquidity Ratios Firm Current Ratio Quick Ratio Cash Ratio i 2017 2018 2019 VNM 1.99 1.93 1.71 BHN VCF 1.18 01.01 1.39 1.94 1.80 2.12 VNM 1.60 1.41 1.37 BHN 0.97 1.18 1.53 VCF VNM 0.91 0.09 1.61 0.14 1.85 0.18 HBN VCF 0.48 0.89 0.45 0.24 0.56 0.28 Current Ratio (= Current Assets / Current Liabilities) 19 Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe The current ratio represents the firm's ability to secure short-term liabilities from short-term assets In general, during the analysis period from 2017 to 2019, the current ratios of companies all exceeded 1.0 VNM's coefficient tended to decrease gradually year by year, from 1.99 times (2017) to 1.71 times (2019) However, these coefficients were still kept at a fairly high number, nearly 2.0 times In contrast to VNM, two competitors, BHN and VCF, had their ratio increased The ratio of BHN significantly increased from 1.18 times in 2017 to 1.80 times in 2019 However, it was VCF that outperformed when its ratio in 2019 (2.12) doubled that in 2017 (1.01) In 2019, VNM’s both rivalries had higher coefficients than VNM had which was 1.71 times Although VNM had a noticeable decline in the years 2017 2019, but overall, the current ratio of the company is always kept at a quite high level and shows a stable ability in paying short-term liabilities With this data, the bank can completely feel secure when lending the company short-term loans to supplement working capital for the company's operations ii Quick Ratio (= (Current Assets - Inventory) / Current Liabilities) 20 Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe Quick ratio represents the company's ability to pay short-term debts from short-term assets that can be converted to fast money Like the current ratio comparison table, the quick ratio of Vinamilk decreased gradually while this ratio of the two rival companies increased strongly Looking at the table, at the end of 2017, Vinamilk's quick ratio was the highest among the companies (1.6 times), but, just years later, Vinamilk's ratio was significantly lower than the other However, that was not a problem because other liquid assets were still enough to ensure Vinamilk's debt obligations Another note is that the quick ratio of Vinamilk was much smaller compared to the current ratio, which means that inventories contribute a significant proportion to the company's short-term assets iii Cash Ratio (= Cash / Current Liabilities) 21 Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe Cash ratio represents a company's ability to instantly pay off any outstanding debts or unexpected expenses In 2017, the cash ratio of Vinamilk reached the bottom with the coefficient of only 0.09 times That means the company's cash and cash equivalents are just enough to be able to immediately pay off 1/10 of all short-term debts It can be said that at that time, Vinamilk had great difficulties in meeting all these debts However, after years, Vinamilk's cash ratio has gradually increased again, from 0.09 in 2017 to 0.18 in 2019 Although the VNM is still much lower than the same year coefficients for BHN (0.56) and VCF (0.28), it is showing signs of a recovery to the stability level Comment: In general, the company's liquidity ratios are at a lower level than the market However, with the company's current liabilities (current ratio is always above 1.5, quick ratio is always above 1), the company's ability to pay debts is guaranteed Although the company's debt is large, short-term assets are always residual to fulfill the debt service obligations when due, thus reducing the risk of liquidity of current and future liabilities In conclusion, the company's financial situation is quite stable Leverage Ratio Firm Debt to Assets Debt to Equity i 2017 2018 2019 VNM BHN 0.31 0.53 0.3 0.46 0.33 0.33 VCF 0.79 0.37 0.35 VNM 0.45 0.42 0.50 BHN 1.13 0.87 0.50 VCF 3.86 0.58 0.54 Total Debt to Total Assets Ratio (= Total Liabilities / Total Assets) 22 Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe Total-debt-to-total-assets is a measure of the company's assets that are financed by debt rather than equity According to the data table, in the period from 2017 to 2019, the debt to total assets ratio of Vinamilk fluctuated from only 0.30 to 0.33 This means the company had a policy of using debt at a reasonable and stable level over time and the financial autonomy of VNM was very good when having guaranteed equity capital of more than 65% of total assets value and being less affected when there are interest rate fluctuations in the market In addition, in 2019, Vinamilk's debt usage level is not much different from the two companies in the same industry ii Total Debt to Total Equity Ratio (= Total Debt / Total Equity) 23 Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe The ratio is calculated by taking the company's total debt and dividing it by the book value of common equity In general, during the comparison period, the ratio of Vinamilk was not more than 0.50 In 2019, compared to the other companies, VNM’s ratio was not much different They all had the number around 0.50, which is at a safe level This means Vinamilk and their two rival companies had stable financial ability Comment: Vinamilk has a strategy to use its equity capital in investment activities rather than borrowing from banks Vinamilk's financial capacity is very good, and the company has very little risk of debt balance But using too much equity will affect the ability to improve company profits and dividends distributed to shareholders It is very safe to provide credit to Vinamilk Efficiency Ratio Operating Profits/Net sales FIRM 2017 2018 2019 VNM 20.14% 19.42% 18.74% BHN VCF 6.71% 11.37% 5.32% 18.54% 5.60% 21.88% 24 Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe VNM 44,40% 40.79% 37.79% BHN 11.88% 10.56% 10.68% VCF VNM 25.55 32.15% 59.05 28.40% 47.87% 25.79% Profits after tax/ Total assets (ROA) BHN VCF 6.78% 11.08% 5.30% 22.07% 6.39% 30.65% EBIT/ Interest expenses VNM 416.41 235.62 118.56 BHN 14.18 14.70 22.54 VCF 40.70 43.94 42.09 Profits after tax/ Equity (ROE) 25 Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe i Profit ratio from business activities The company's core business for the ratio of profit to net sales tends to decrease slightly, from 20.14% to 19.74% in the period 2017-2019 Profit from operating activities is always approximately 20% of Vinamilk, although slightly decreased, but compared to the same industry in 2019, BHN, this ratio is still at a stable high level, nearly 3.5 times higher Meanwhile, in 2019, VCF has witnessed a strong growth, surpassing VNM in this index to take the lead among enterprises ii ROA coefficient The ratio of profit after tax to total assets of Vinamilk in the period 2017-2019 decreased from 32.15% in 2017 to 25.79% in 2019, compared to companies in the same industry, BHN and VCF, billion This number of VNM was nearly times and times higher in 2017, but by 2019, VCF was leading with 30.65%, times higher than that of BHN and 1.2 times of VNM However, the ROA of this company VNM remained above 20% Although VNM witnessed a slight decrease in its ROA, it is still a very impressive indicator even for Vietnamese and international businesses, not to mention the company's ability to maintain long-term Compared with many businesses in the dairy and food business in Vietnam, this is a very impressive rate of return on assets This shows that the company has used its assets very well in making profits for the company iii ROE coefficient The ratio of profit after tax on equity of Vinamilk also decreased significantly Return on capital tends to decrease gradually over years, from 44.49% in 2017 to 37.79% in 2019 Comparing with the overall coefficient of the whole industry, BHN and VCF companies, in 2019, Vinamilk's profitability is high while VCF is tending to grow stronger (within just year, VCF has witnessed a significant increase in ROE ratio more than times from compared to 2017) and have a trend of sustainable growth On the other hand, this ratio in BHN enterprises is at a very low level below 20%, compared to other companies in the same industry, this is a worrying number for investors iv Ratio of the ability to pay interest on EBIT / interest The ratio of profit before tax and interest to loans of Vinamilk in the period 2017-2019 decreased sharply by 50% per year However, because Vinamilk's loans are not much and profitability fluctuates reliably compared to the whole industry, the company's ability to repay debts is still at a reliable level Meanwhile, the ratios of the two companies in the same industry, BHN and VCF, in 2019 were only 1/5 and 1/3 of that of VNM From there, we can 26 Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe see that, although the profit earned from Vinamilk's business activities is not the highest among the enterprises, VNM's ability to pay interest is the largest, meanwhile, the profit VCF's operating profit has the strongest growth in 2019, but its ability to pay interest is only 1/3 of Vinamilk's, showing that this company's loan is quite high compared to VNM BHN enterprise has the lowest index among companies in the same industry at 22.54, showing that its ability to pay interest on EBIT is relatively low because revenue from operating activities is quite small compared to businesses business remaining Comment: The profitability that Vinamilk has shown in the 2017-2019 period tends to decrease slightly but is still reliable for investors 27 Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe Market price indexes Firm Price to Earning Ratio Price to Book Ratio i 2017 2018 2019 VNM 29.41 18.04 19.17 BHN 45.02 37.63 32.44 VCF VNM 18.91 12.68 06.06 7.95 6.95 6.82 BHN VCF 6.55 9.20 3.81 2.77 3.38 3.28 Price to Earning Ratio (P/E) Overall, Vinamilk's P/E ratio at the end of 2019 is 19.17, an increase of 1.13 units compared to 2018 but still a significant decrease compared to the P/E ratio in 2017 When compared to the company the competitor is BHN, the P/E ratio of Vinamilk over the years from 2017 to 2019 is significantly lower, but still higher than the other competitor VCF In 2019, The difference was apparent when Vinamilk was 13.27 units behind BHN and 12.22 units higher than VCF Investors are still expecting Vinamilk's future growth when there are many projects to be implemented, but when compared to its rival company, Vinamilk's profitability and growth are only at medium level average, not the highest compared to the whole industry 28 Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe ii Price to Book Ratio (P/B) Vinamilk's P/B ratio has decreased significantly from 12.98 to 7.95 in 2017 to 2018 and slightly decreased to 6.82 in 2019 but it is still a positive sign which double of the two rival companies This shows that the company is doing well and the income per asset is high Comment: The market is currently valuing Vinamilk's shares at a high level compared to the current value as well as other companies in the market The reason is due to the market's expectations about the company's ability to develop well and stably The safety of Vinamilk's stock investment has changed from year to year Vinamik's profitability is highest and most stable in 2018, with an increase in 2019 but not too stable Besides, the profit from dividends to investors is not high However, Vinamilk is still evaluated quite well compared to other companies in the same industry and its share price has also increased over the years, so Vinamilk's share price difference profit can still reach a good level 29 Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe Analysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafeAnalysis.of.vinamilks.financial.ratios.compared.to.rival.companies.habeco.and.vinacafe