Financial statement analysis company KIDO corporation

Financial statement analysis Company: KIDO Corporation Student’s name: Phạm Khánh Vy Student’s ID: 11208521 Class: LSIC 62 Lecturer: Dr Trần Tất Thành Table of Contents Preface I INTRODUCTION: II ANALYSIS OF FINANCIAL STATEMENT: a b Sources and uses of cash analysis In 2019 – 2020 period In 2020 – 2021 period Standardized balance sheets: Standardized income statements: a b c d e Financial ratios analysis: 12 Liquidity ratios: .12 Financial leverage ratios: 13 Turnover ratios: .14 Profitability ratios: 15 Market value ratios: 16 Dupont analysis 17 III CONCLUSION 18 Financial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporation Financial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporation Table of Figures Figure 1: Sources and uses of cash in 2019 - 2020 Figure 2: Sources and uses of cash in 2020 - 2021 Figure 3: Common-size balance sheet in 2019 - 2021 (Assets) Figure 4: Common-size balance sheet 2019 - 2021 (Liabilities & Equity) Figure 5: Kido Group's 2019 common-size income statement 10 Figure 6: Kido Group's 2020 common-size income statement 11 Figure 7: Kido Group's 2021 common-size income statement 12 Figure 8: Liquidity ratios in years and Ind .13 Figure 9: Financial leverage ratio 14 Figure 10: Turnover ratio from 2019 to 2021 and Ind 15 Figure 11: Profitability ratio from 2019 - 2021 and Ind 16 Figure 12: Market value ratio in 2019 - 2021 and Ind 17 Figure 13: Dupont equation in 2019 - 2021 and Ind 18 Financial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporation Financial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporation Preface One of the factors that helps the business reach its objectives is financial activity Poor financial performance will hold back the rest of the department, preventing the organization from accomplishing its goals The expansion of an enterprise's commercial activity is therefore dependent on solid financial management To assess whether a company's financial performance is robust or bad, financial analysis is crucial Through financial analysis, the company's financial state will be revealed, and from there, corrective action will be implemented My understanding of Kido Group's financial situation has improved as a result of my research, which also allowed me to identify the sources and extent of the issues affecting Kido Group's finances Using such data, comment, assess, and suggest some improvements to the company's operations Financial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporation Financial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporation I INTRODUCTION: Company’s background: KIDO Corporation was established in 1993 and has become one of the leading Food & Flavor companies in Vietnam In its 22-year history, KIDO Group has remained the market leader in confectionary across a wide array of products such as confectionery, cookies and ice - cream under the KIDO brand name In 2015, aiming to expand and develop into essential food, KIDO Group was officially established By promoting existing platforms, KIDO continues to maintain and develop its leading position in the frozen industry with Ice-Cream, Milk & Dairy products and expands its product portfolio to the food and beverage industry mainly with cooking oil, instant noodles, seasoning seeds, sauces, coffee, convenient packaged foods to take care of Vietnamese family kitchens and meet customers’ needs throughout the day Currently, KIDO is leading the ice cream market with 43.5% market share (According to Euromonitor) and over 30% market share in cooking oil (According to internal data) All the staff at KIDO share a common mission and goal – to “Flavor your life” – and to become the leading foodstuff group in Vietnam and the Southeast Asia region Aiming to gain an immediate foothold in the foodstuff and spice markets, as well as to meet consumer requirements, KIDO has invested continuously in factories and on research into new products The group has also signed Mergers & Acquisitions and strategic partnerships in a bid to expand its operations Whenever a new product is launched onto the market or a partnership is signed, it marks a step forward in KIDO's development, brings the KIDO brand and essential food products closer to Vietnamese consumers The food product industry: The vast majority of the food consumed by the world's population is produced through an extensive network of farmers and businesses that make up the food industry The entire spectrum of food production and distribution is included in the food industry Agriculture and animal husbandry, the manufacture of farm Financial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporation Financial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporation machinery and agrochemicals, food processing, labeling and packaging, storage, and distribution, regulatory frameworks, finance, marketing, retailing, catering, and research and development are all included According to the company's total market share of the entire industry, which ranges from 29% to 30%, KIDO will continue to occupy the No spot in Vietnam's entire industry in 2020 and 2021 KIDO Group Joint Stock Company (KIDO) still reached KIDO's net sales of VND 10,497 billion in 2021 despite the Covid-19 pandemic's effects, an increase of 26.1% over the same period in the previous year In comparison to 2020, KIDO's after-tax profit increased by 97.3% to VND 653 billion The company's overall industry market share ranges from 30% to 32%, demonstrating that KIDO's market share is still growing year after year II ANALYSIS OF FINANCIAL STATEMENT: Sources and uses of cash analysis a In 2019 – 2020 period Financial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporation ngành, năm 2019, tỷ lệ toán nhanh nằm ngưỡng đẹp, cao mức trung bình ngành (1,43 times) 0,06 times Tuy nhiên, năm tiếp theo, tỉ lệ tốn nhanh doanh nghiệp giảm nhanh cịn 1,12 times năm 2020 0,84 times năm 2021, thấp trung bình ngành 1,43 times (by 0,31 times (2020) and 0,56 times (2021)) Điều cho thấy khả Cơng ty với tài sản ngắn hạn khơng tính đến hàng tồn kho, khơng đủ để tốn cho khoản nợ ngắn hạn The company need either increase current assets or reduce current liabilities b Financial leverage ratios: Figure 9: Financial leverage ratio  Total Debt ratio: Total debt (TD) TA−TE Total Debt ratio = Total asset (TA) = TA – Total Debt to total assets is a ratio which visualize how financially stable a company is Throughout the period from 2019 to 2021, the Kido’s debt tends to increase, from 0,316 to 0,510 However, the ratio still remained at a safe level, still around 0,5 and below industry average It demonstrates that the corporation had a large degree of financial independence, and the majority of its assets were funded by stock  Equity Multiplier: TA TD Equity Multiplers (EM) = TE =1+ TE – The equity multiplier is a risk indicator that measures the portion of a company’s assets that is financed by stockholder’s equity rather than by debt The equity multiplier ratio of Kinh Do in 2019, 2020 was lower than the industry average, which is 1,77 In 2021, however, the ratio grew to 2,04, 0,27 times higher than the industry average The ratio indicates that the company is using a high amount of debt to finance assets and more reliance on debt As a result, Kido carried more financial leverage, which could be financially riskier 15 Financial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporation Financial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporation c Turnover ratios: Figure 10: Turnover ratio from 2019 to 2021 and Ind  Receivables Turnover: Receivables Turnover = Salⅇs – The receivables turnover ratio measures the AR number of times a company collects its average accounts receivable balance It is a quantification of a company’s effectiveness in collecting outstanding balances from clients and managing its line of credit process From the table above, it is witnessed that there was a steady increase from 2,7 times in 2019 to 4,12 times in 2021 The ratio of Kido Group was much under the industry average which is 14,09 Consequently, a low receivables turnover ratio implies that the company’s collection of accounts receivable was not efficient and the number of high-quality customers who pay their obligations promptly was low, Kido should reassess its credit policies to ensure the timely collection of its receivables  Total Asset Turnover: Sales Total Assets Turnover (TATO) = TA – the asset turnover ratio measures the value of a company’s sales or revenues relative to the value of its assets The asset turnover ratio can be used as an indicator of the efficiency with which a company 16 Financial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporation Financial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporation is using its assets to generate revenue From 2019 to 2021, the ratio of total asset turnover was not change a lot There was just a slight increase from 0,639 to 0,696 times in 2020 and to 0,765 times in 2021 The industry average was 1,32, higher than total asset turnover ratio in 2021 by 0,555 times, which illustrates that the company work’s efficiency was weak  Inventory turnover: COGS Inventory Turnover = Average Inventory – the inventory ratio is the number of times a company has sod and replenished its inventory over a specific amount of time The Kinh Do’s inventory turnover ratio fell quickly from 6,14 to 3,39 times in 2021 while the industry average was 48,91 The fast turn of this ratio may indicate that a company’s purchasing is not keeping pace with market demand, that it’s experiencing delays somewhere in the supply chain or that a particular item is seeing a surge in demand Moreover, the low ratio of Kinh Do may point to weak sales and/or decreasing market demand for the goods d Profitability ratios: Figure 11: Profitability ratio from 2019 - 2021 and Ind  Profit Margin: Profit margin (PM) = Net income – Profit margin is the ratio of profit remaining Sales from scales after all expenses have been paid In the case of Kido Group, the compaby’s profit margin went up steadily over the period, from 2,72% to 6,06% While net revenue and profit after taxes both rose, profit after tax climbed more quickly than net sales, which was the reason for the elevation The profit margin ratios for the last three years were staggeringly greater when compared to the industry average by -4,579.33% While the industry on average was constantly 17 Financial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporation Financial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporation losing money for every products they make, Kido was profiting at a slight margin.  As a result, Kido's profit margin demonstrated that they efficiently managed their resources The larger coefficient net profit margins demonstrate Kido's potentiality as a business within an inflationary environment  Return on Assets: Return on Assets (ROA) = Net income – Return on assets (ROA) is a ratio that TA measures a company’s profitability relative to its total assets It shows how well (or poorly) a company is using everything it owns – from machinery to vehicles and intellectual property — to earn money Despite the gradually grow over the threeyear period, the ROA of Kido was still under the industry average which was 7,30% It may indicates that the company may mott able to make maximum uses of its assets for getting more profit  Return on Equity: Return on equity (ROE) = Net income – Return on Equity indicates that the more TE effectively a company utilizes its owner’s equity, the more appealing the stock is to investors It also presents the relationship between assets management, debt management, and profitability ratios From the Figure , we can see that there was an increase in return on equity in 2019 – 2021 The company's return on equity in 2019 was 2.54%, which means that for every 100 dongs of equity used in production and business activities, it generated 2.54 dongs of after-tax profit Kido's return on equity in 2020 was 1.75 percent higher than in 2019 (4.29-2.54), and in 2021, the figure continued to rise with a ROE of 9.48%, almost twice as high as in 2020 This rise may be attributed to Kido's net income growing more quickly relative to equity This is a sign that the company's profitability is increasing, as will be particularly evident in 2021 However, compared to the industry average (12,90%), the ratio of Kido Group still lower, which means that the company earns relatively little compared to its shareholder’s equity e Market value ratios: 18 Financial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporation Financial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporation Figure 12: Market value ratio in 2019 - 2021 and Ind  Price earnings ratio: The Price Earnings Ratio (P/E Ratio) = Market price per share – The price earnings EPS ratio conveys how much investors will pay per share for $1 of earnings and tells investors how much a company is worh Overall, there was a remarkable declined during the period, from 68,49 to 21,09 times in 2021 In addition, the ratio of price earnings was much higher than of the industry, by 7,76 times It means that investors had to pay more to purchase a share of the company’s earnings  Price to book value ratio: Market price per share The Price to book Ratio (P/B) = Book Value per share – The price to book value ratio is the market price per share divided by the book value per share During the three-year period, the ratio of perice to book value went up steadily to 1,97 times in 2021, 1,48 times higher than in 2019 and 0,87 times higher than 2020 Moreover, the company’s ratio was under the industry average, and it could be a signal to investors that a stock may be undervalued In other words, the stock price is trading at a lower price raltive to the value of the company’s assets A low P/B could also mean that the company is earning a low return on assets Dupont analysis 19 Financial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporation Financial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporation Figure 13: Dupont equation in 2019 - 2021 and Ind The Dupont analysis is an expanded return on equity formula, calculated by multiplying the net profit margin by the asset turnover by the equity multiplier It also shows the connections between asset management, debt management, and profitability ratios ROE = Profit margin × Total asset turnover × Equity multiplier Net income Sales Assets × × Sales Assets Total equity Since ROA = Profit margin × Total asset turnover, we also have ROE = ROA × Equity multiplier ROE = According to the Figure, both ROA and ROE of Kido Group grew steadily from 2019 to 2021 In more detail, the reason for the increase in these ratios in 2020 and 2021 is due to the increase in profit margin (from 2,72% to 6,06%), total assets turnover (0,64 to 0,77) and equity multiplier (from 1,46 to 2,04) The ratios of PM and equtiy multiplier are higher than the industry average The higher Kido's profit margin demonstrated that they efficiently managed their resources The larger coefficient net profit margins demonstrate Kido's potentiality as a business within an inflationary environment However, the equity multiplier ratio grew to 2,04, 0,27 times higher than the industry average The ratio indicates that the company is using a high amount of debt to finance assets and more reliance on debt As a result, Kido carried more financial leverage, which could be financially riskier In addition, the industry average of total assets turnover was 1,32, higher than total asset turnover ratio in 2021 by 0,555 times, which illustrates that the company work’s efficiency was weak Furthermore, although the ROA and the ROE went up during the period, ROA grew from 1,47% to 4,64% and ROE grew from 2,54% to 9,48% However, the ratio was still under the industry average which was 7,30% and 12,90%, 20 Financial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporation Financial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporation respectively Although by comparison, the company is still controlling and performing weaker than other companies in the industry But the positive side is that there are prospects in the future because the factors of that dupont are gaining momentum (positive trend) III CONCLUSION In a word, Kido Group has been running ineffectively and poorly for the past three years Even though the company was nonetheless successful in a losing sector of the economy, their profits were insufficient to cover their assets and equity The liquidity ratio (Figure 7) and turnover ratio both showed that the business did a dismal job of liquefying and collecting sales (Figure 9) As a result, the company frequently experiences financial difficulties since they occasionally lack the funds to pay off their short-term debt Although the price-to-earnings ratio (Figure 11) indicates that the company is valuable and worthwhile of investment, the price-tobook value ratio demonstrates that shareholders were not receiving as much value as they ought to (Figure 11) All of this makes sense given the company's inefficient asset management, slow turnaround times for sales reimbursements, and poor cash Numerous indications point to the fact that they are putting the company's finances in danger In order to be viable in the market, the corporation should establish new policies and fix its issues as soon as possible 21 Financial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporationFinancial.statement.analysis.company.KIDO.corporation 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