Financial analysis at viet lam construction and concrete joint stock company

Trang 1 MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT VIETNAM NATIONAL UNIVERSITY OF AGRICULTURE LE TRAN LINH TRANGFINANCIAL ANALYSIS AT VIET LAM CONSTRUCTION AND CONCRETE JOINT STOCK C

lOMoARcPSD|27827034 MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT VIETNAM NATIONAL UNIVERSITY OF AGRICULTURE LE TRAN LINH TRANG FINANCIAL ANALYSIS AT VIET LAM CONSTRUCTION AND CONCRETE JOINT STOCK COMPANY UNDERGRADUATE THESIS Hanoi– 2022 Downloaded by Do Thuy Trang (tailieuvcu123@gmail.com) lOMoARcPSD|27827034 MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT VIETNAM NATIONAL UNIVERSITY OF AGRICULTURE UNDERGRADUATE THESIS FINANCIAL ANALYSIS AT VIET LAM CONSTRUCTION AND CONCRETE JOINT STOCK COMPANY Name : Le Tran Linh Trang Major : Advance financial economic Class : K63KTTCE School year : 2018-2022 The Supervisors : MSc Vu Thi Thu Huong MSc Dang Nam Phuong Hanoi– 2022 Downloaded by Do Thuy Trang (tailieuvcu123@gmail.com) lOMoARcPSD|27827034 DECLARATION OF AUTHORSHIP I hereby declare that the research topic in the thesis titled "FINANCIAL ANALYSIS AT VIET LAM CONSTRUCTION AND CONCRETE JOINT STOCK COMPANY" is my own research work based entirely on documents, information, and data that I have researched and learned from many sources different sources and also in practice Therefore, the research results are guaranteed to be the most honest and objective In addition, I also certify that these results have not been found in any previous study i Downloaded by Do Thuy Trang (tailieuvcu123@gmail.com) lOMoARcPSD|27827034 ACKNOWLEDGEMENT First of all, I would like to thank the leadership of the Vietnam National University of Agriculture for your dedication to teaching and supporting students, especially those in the Faculty of Economics and Rural Development During the past few years, this has helped me gain valuable and useful knowledge, as well as provided career opportunities and good development for myself During the internship, I was reinforced with the knowledge that I had and had not learned at the university, as well as valuable experience from the company's Board of Directors and colleagues I would like to thank Viet Lam Construction and Concrete Joint Stock Company for allowing me to learn and practice myself through practical experience Although I still have many shortcomings in knowledge and practical experience, the company and the center still support me wholeheartedly, helping me to complete my work well During the internship, the company created the best conditions for me, and I completed my undergraduate thesis I would like to express my sincere thanks to the supervisor Vu Thi Thu Huong and supervisor Dang Nam Phuong, for supporting, helping, commenting, and editing during the completion of the undergraduate thesis Sincerely, thanks! ii Downloaded by Do Thuy Trang (tailieuvcu123@gmail.com) lOMoARcPSD|27827034 ABSTRACT The objective of the study is to assess the financial situation of Viet Lam Construction and Concrete Joint Stock Company, along with studying the theoretical and practical basis of corporate finance and corporate financial analysis; research and survey the current situation of financial analysis at Viet Lam Construction and Concrete Joint Stock Company; recognizing, evaluating and offering some reasonable solutions to improve financial analysis at Viet Lam Construction and Concrete Joint Stock Company The mission of study are Presenting the methods applied to systematize the theoretical basis of financial analysis at Viet Lam Construction and Concrete Joint Stock Company; presenting methods and contents on corporate finance and corporate financial analysis; stating the groups of financial evaluation criteria and factors affecting financial analysis at enterprises; Presenting financial analysis at Viet Lam Construction and Concrete Joint Stock Company; outlining the limitations and causes that make financial analysis at Viet Lam Construction and Concrete Joint Stock Company incomplete to serve as a basis for providing solutions and recommendations; Completing the method and content of financial analysis at Viet Lam Construction and Concrete Joint Stock Company, completing the Regulation on financial analysis; completing the financial analysis process, New contributions to the thesis: Systematize the theoretical and practical basis of financial analysis in enterprises; Assess the financial situation of Viet Lam Construction and Concrete Joint Stock Company; analysis of factors affecting the financial situation of Viet Lam Construction and Concrete Joint Stock Company; Proposing some solutions to improve the financial management of Viet Lam Construction and Concrete Joint Stock Company, helping the results have an effective effect on management activities in i Downloaded by Do Thuy Trang (tailieuvcu123@gmail.com) lOMoARcPSD|27827034 particular and business activities in general, creating conditions for the company's production and business activities to be more and more effective ii Downloaded by Do Thuy Trang (tailieuvcu123@gmail.com) lOMoARcPSD|27827034 CONTENTS DECLARATION OF AUTHORSHIP i ACKNOWLEDGEMENT ii CONTENTS iii LIST OF TABLE vi LIST OF DIAGRAM vii LIST OF CHART viii PART I: INTRODUCTION 1.1 Research problem 1.2 Research objectives 1.2.1 General objective 1.2.2 Specific objective 1.3 Research questions3 1.4 Research objects and scopes 1.4.1 Research objetcs 1.4.2 Research scope PART II: THEORETICAL AND PRACTICAL BASIS OF CORPORATE FINANCE AND CORPORATE FINANCE ANALYSIS 2.1 Theoretical basis of corporate finance and financial analysis 2.1.1 Some concept related to the topic 2.1.2 The purpose of financial analysis 2.1.3 The role of financial analysis 2.1.4 Some general issues of corporate finance analysis 2.1.5 Content of corporate finance analysis 12 2.1.6 Factors affecting corporate finance analysis 15 2.2 Practical basis of corporate finance analysis 17 2.2.1 Experience from enterprises in Vietnam 17 iii Downloaded by Do Thuy Trang (tailieuvcu123@gmail.com) lOMoARcPSD|27827034 2.2.2 Lessons learned for Viet Lam Construction and Concrete Joint Stock Company 20 2.2.3 Relevant studies 20 PART III: GEOGRAPHICAL CHARACTERISTICS OF THE STUDY SITE AND RESEARCH METHODS 21 3.1 Geographical characteristic 21 3.1.1 Overview about Viet Lam Construction and Concrete Joint Stock Company 21 3.1.2 Features of the company's organizational structure 23 3.1.3 Labor situation of Viet Lam Construction and Concrete Joint Stock Company 25 3.2 Research methods 28 3.2.1 Methods of choosing a research site 28 3.2.2 Data collection method 28 3.2.3 Data processing methods 29 3.2.4 Data analysis methods 30 3.2.5 Systematic analysis of financial indicators 31 PART IV: RESULTS AND DISCUSSION 33 4.1 Current situation of the corporate finance of Viet Lam Construction and Concrete Joint Stock Company 33 4.1.1 Analysis businessresult of Viet Lam Construction and Concrete Joint Stock Company in the period of 2019-2021 33 4.1.2 Financial structure analysis 39 4.1.3 Financial analysis 48 4.1.4 Cash flow statement analysis 60 4.1.5 Indicators for assessing cash flow analysis 4.2 63 Assessment of the company's financial situation 66 4.3 Factors affecting corporate financial analysis at Viet Lam Construction and Concrete Joint Stock Company 67 iv Downloaded by Do Thuy Trang (tailieuvcu123@gmail.com) lOMoARcPSD|27827034 4.4 Complete solution for financial analysis at Viet Lam Construction and Concrete Joint Stock Company 69 PART V: CONCLUSIONS AND RECOMMENDATIONS 73 5.1 Conclusion 73 5.2 Recommendation 74 REFERENCES 75 v Downloaded by Do Thuy Trang (tailieuvcu123@gmail.com) lOMoARcPSD|27827034 LIST OF TABLE Table 2.1: Business performance of Alphanma JSC 17 Table 2.2: Business performance of Thang Long Concrete Ready Found Joint Stock Company 18 Table 3.1: Labor situation 28 Table 3.2: Primary data collection 29 Table 4.1: Analysis businessresult of Viet Lam Construction and Concrete Joint Stock Company in the period of 2019-2021 38 Table 4.2: Analysis asset structure and volatility of Viet Lam Construction and Concrete Joint Stock Company (2019-2021) 41 Table 4.3: Structure and volatility of resources analysis of Viet Lam Construction and Concrete Joint Stock Company (2019-2020) 46 Table 4.4: Analysis of current liabilities solvency of Viet Lam Construction and Concrete Joint Stock Company 49 Table 4.5: Total asset turnover 52 Table 4.6: Current assets turnover 53 Table 4.7: Non-current assets turnover 54 Table 4.8: Analyze debt management capabilities of Viet Lam Construction and Concrete Joint Stock Company (2019-2021) 56 Table 4.9: Profitability analysis of Viet Lam Construction and Concrete Joint Stock Company (2019-2021) 58 Table 4.10: Analysis of the cash flow statement of Viet Lam Construction and Concrete Joint Stock Company of period 2019-2021 62 Table 4.11: Cash flow analysis of Viet Lam Construction and Concrete Joint Stock Company (2019-2021) 65 vi Downloaded by Do Thuy Trang (tailieuvcu123@gmail.com) lOMoARcPSD|27827034 Table 4.10: Analysis of the cash flow statement of Viet Lam Construction and Concrete Joint Stock Company of period 2019-2021 (Unit: Million dong) Code I Cash flow geenerated from operating activity Income from sales of merchandises, services rendered Payments to suppliers of merchandises and services Payments to employees Interest payment Corporate income tax payment Other income from operating activity Other payments for operating activity Cash flow geenerated from operating activity II Cash flow generated from investing activity III Cash flow generated from financing activity 1.Cash received from owner’s paid in capital 3.Payment for the principal 4.Dividend, profit paid to owner Net cash flow generated from financing activity Net cash flow for the year Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year 2020/2019 +/ % 2020/2019 +/ % 98.370 28.464 17.023 64.239 (105.179) 131.740 (195,17) (169.419) (263,73) (1.658) (4.347) (1.579) (1.808) (14) 3.876 4.959 (1.592) (12.726) (15.586) 131.664 (3.303) (1.908) (40) 6.416 (3.515) (9.159) (2.688) (229) 14 1.083 (11.133) 147.251 162,11 1.043 (24,01) 14,51 (100) 5,55 (100,00) (40) 27,94 1.456 29,37 698,92 9.211 (72,38) (944,75) (140.824) (106,96) 11.500 46.407 39.580 (41 952) (41.221) 15.955 (1.641) 369 130.023 975 1.344 1.344 131.368 66.911 (59.104) 7.807 (1.352) 2.889 1.536 2019 2020 52.882 81.347 (67.500) 2021 53,82 20,93 (11.500) (100,00) 0,00 (6.827) 14,71 27.331 69,05 731 1,74 (17.883) 43,38 (17.596) (110,28) 9.448 (575,79) 129.654 35133,84 (131.376) (101,04) 369 37,82 1.544 114,84 130.023 9668,97 (129.831) (98,83) Source: Summary from financial statements of Viet Lam Construction and Concrete Joint Stock Company (2022) 62 Downloaded by Do Thuy Trang (tailieuvcu123@gmail.com) lOMoARcPSD|27827034 4.1.5 Indicators for assessing cash flow analysis The cash-flow coverage ratio is used to see whether a company's net operating income during the year can actually cover its debts The lower this ratio, the better the ability to secure the debt with cash flows from operating activities This ratio is complementary to the solvency criteria analyzed in the previous sections While the previously analyzed criteria are of a time nature, this criterion is of the whole accounting period Based on the analyzed data in table 4.11, the company's debt coverage ratio varies from year to year, showing that the level of debt payment from net cash flow in the period of the company also changes Specifically, from 2019 to 2020, this coefficient is negative This proves that the company's solvency by the amount of cash collected from business activities has not really improved However, by 2020, this coefficient will increase again Specifically, this coefficient is 0,57 times, indicating that on average, a net cash flow from operating activities will ensure payment for 0.57 VND liabilities must be paid This proves that the company's solvency by the amount of cash collected from business activities has improved significantly compared to 2019 and 2021 However, the company needs to have sales and withdrawal policies good debt to increase net cash flow from operating activities in the following years The cash flow to revenue ratio reflects the company's ability to generate cash from business activities From the table, we can see that the company's cash flow to revenue ratio has been continuously negative in 2019 and 2021 Only in 2020, will this coefficient have a positive number, and the cash flow to revenue ratio in 2020 is 1,80, proving that for every VND of net revenue, there will be 1.80 VND of net cash flow from operating activities Although there are signs of improvement, this coefficient is still too small The actual amount earned is too little compared to the sales revenue The company is being misappropriated too much capital The company has the policy to promote 63 Downloaded by Do Thuy Trang (tailieuvcu123@gmail.com) lOMoARcPSD|27827034 customer payment, so the company can use several measures to ensure faster debt collection as follows: Before performing obligations to customers, the company should ask customers to guarantee a part of the value of the contract in advance in order to have a guarantee of capital for that transaction Offer a payment discount policy for customers; besides, it is also advisable to apply a penalty policy for overtime payment Arrange the debts according to the debt term to have timely debt collection policies and avoid letting those receivables fall into bad debt The cash flow to assets ratio reflects a company's ability to generate money at a general level from the use of its assets This coefficient fluctuates, and the ability to create money at a general level also fluctuates This indicator of the company is quite volatile in the period of 2019-2021 Specifically, like the two targets in 2019 and 2020, the company's coefficient is still negative because in those two years the net cash flow from the company's business is negative However, by 2020, this coefficient will be 1,36 times, indicating that for every VND invested in an asset, the company will receive 1.36 VND net cash flow from business activities Although this ratio increases significantly, it shows that the company's ability to generate cash from investing in assets is improving, but the company's debt collection should be more focused to increase the net cash flow from business activities, thus contributing to improving the financial capacity of the company 64 Downloaded by Do Thuy Trang (tailieuvcu123@gmail.com) lOMoARcPSD|27827034 Table 4.11: Cash flow analysis of Viet Lam Construction and Concrete Joint Stock Company (2019-2021) Code Unit 2019 2020 2021 2020/2019 +/- 2021/2020 % +/- % Average liabilities Million dong 74.915 75.183 78,831 267 0,36 3,647 4,85 Net cash flow generated from operating activity Million dong (15.586) 131.664 (9.159) 147.251 (944,75) (140.824) (106,96) Million dong 62.080 73.257 98.898 11.177 18,00 25.640 35,00 Million dong 90.646 96.547 99.918 5.901 6,51 3.370 3,49 Debt to cash flow ratio Time (4,81) 0,57 (8,61) 5,38 - (9,18) Cash flow to revenue ratio Time (0,25) 1,80 (0,09) 2,05 - (1,89) Cash flow to assets Time (0,17) 1,36 (0,09) 1,54 - (1,46) Net revenue from sales of merchandises and services rendered Average total assets Source: Summary from financial statements of Viet Lam Construction and Concrete Joint Stock Company (2022) 65 Downloaded by Do Thuy Trang (tailieuvcu123@gmail.com) lOMoARcPSD|27827034 4.2 Assessment of the company's financial situation In general, the scale of operations of the company has been quite volatile over the past years but has regained its form in recent years The expansion of operations has brought positive signs to the company's financial position Specifically, we see: a Advantages The company always reasonably calculates the amount of inventory, promptly responds when the customer's construction needs increase, and not store too much, causing storage costs The amount of fixed assets has increased over the years, showing the company's interest in improving the quality of work and renewing equipment, thus contributing to the expansion of operations and raising the provider's reputation Take advantage of the tax shield thanks to high-interest costs The proportion of equity increased over the years in the total capital structure, and the financial independence improved Net sales increased sharply compared to previous years While revenue increased strongly, the company still managed expenses well, so the growth rate of revenue was still much higher than the growth rate of expenses The company has policies to reduce debt payment time as well as debt collection time over the years The use of debt as well as the policy of selling on credit to customers has brought good signals over the years, making business efficiency gradually improve and reducing the time to pay debts Net cash flow from operating activities varies from year to year, proving that the company is operating efficiently and can ensure cash flow from its sales activities b Disadvantage The company's cash balance is relatively low, which will pose a risk to the company paying its due debts Therefore, the company should increase the 66 Downloaded by Do Thuy Trang (tailieuvcu123@gmail.com) lOMoARcPSD|27827034 number of reserves by increasing the rate of retained earnings to limit payment risks, besides having more cash reserves to service production activities for the next few years accordingly, contributing to a reduction in payables to sellers Receivables account for too large a proportion of total assets and have not shown any signs of decreasing The risk of bad debts appears easily if the company does not have good debt collection measures The company's liabilities accounted for nearly 60% over the years, showing that the company's level of financial independence is not high and its working capital is still heavily dependent on outsiders Owner's equity is still quite low in the total capital structure, so it is still heavily dependent on debt The company's after-tax profit is still low, showing that the company's business activities have not improved The company's solvency is not very satisfactory because it is relying too much on external capital, mainly short-term debt Therefore, the company will face many difficulties in repaying the debt when it is due Investment activities and financial activities of the company are not efficient; cash flow from these two activities is always negative The amount of money earned from business activities is the main source of income for the company However, this amount could not be enough to repay the company due to a large amount of customer debt 4.3 Factors affecting corporate financial analysis at Viet Lam Construction and Concrete Joint Stock Company The production and business activities of enterprises are affected by many factors in the macro-environment, so when doing financial analysis, it is necessary to put them in the general context of the domestic economy and the economy in the region to help fully assess the situation financial situation, forecasting risks and opportunities for the production activities of enterprises 67 Downloaded by Do Thuy Trang (tailieuvcu123@gmail.com) lOMoARcPSD|27827034 Some factors affecting financial analysis at Viet Lam Construction and Concrete Joint Stock Company: - Qualifications of analysts: The company's workforce is divided into four levels Specifically, the company's university-educated workforce in 2019 accounted for 17.44% of the total number of employees, 17.78% in 2020, and 15.84% in 2021 In 2019, 5.81%, in 2020 it is 5.56%, and in 2021 it is 6.93% The company's mid-level workforce is reduced year by year, specifically 5.81% in 2019, 5.56% in 2020, and 3.96% in 2021 In the labor force, technical workers account for the largest proportion In 2019, it is 70.93%, in 2020 it is 71.11%, and in 2021 it is 73.27% The information is shown on the table 3.1: Labor situation above Therefore, the labor force with university degrees and technical workers accounts for a large proportion of the company's labor structure However, the company has only built a specialized team according to the specifics and characteristics of the company's industry and has not built a professional financial analysis team, so it can still analyze the shortcomings and difficulties faced by the company Besides that, the market has not been deeply evaluated, and the best solution has not been proposed for the company - Business owners' awareness of financial analysis: Before the owner want to build a team of professional financial analysts, business owners need to understand the necessity and importance of business financial analysis Therefore, due to the lack of understanding of the urgency and importance of financial analysis, and besides that, there is no professional financial analysis team, the company is only performing financial analysis It is only a formality and cannot be used to point out inadequacies so that financial decisions can be made or effective policies and strategies can be developed - System of industry-average indicators: The construction industry is on the trend of growth again, gradually recovering and accelerating to overcome the difficulties of the COVID pandemic In the context of the prolonged COVID-19 epidemic, most projects were delayed or stopped due to a lack of 68 Downloaded by Do Thuy Trang (tailieuvcu123@gmail.com) lOMoARcPSD|27827034 manpower and a broken supply of materials But with the accumulated experience, businesses in the construction industry in general, and Vietnam Lam Concrete and Construction Joint Stock Company in particular, have better adaptability to help increase revenue and reduce development costs incurred, - Besides the negative effects of the COVID-19 pandemic, the company has to face fluctuations in the price of input materials The price index of raw materials, fuel and construction materials increased by 6.4% over the same period last year due to high demand for construction materials while the supply chain has not been interrupted since 2020 Two types of materials The most important construction materials, steel and cement, increased by 40% and 8.4%, respectively The increase in the price of construction materials accounts for about 65–70% of the estimated cost of construction The increase in the price of construction materials directly affects the cost of construction investment, the efficiency of many projects, and the erosion of the margins enterprise profits 4.4 Complete solution for financial analysis at Viet Lam Construction and Concrete Joint Stock Company About the financial structure For property: Although the amount of fixed assets of the company tends to increase, the short-term and long-term assets of the company are still affected and cannot guarantee the company's capital and debt payment ability Therefore, the company should implement some solutions as follow: The company needs to reasonably allocate capital to ensure short-term liabilities, which can be enough to meet short-term assets as well as long-term assets, such as increasing the cash reserve to ensure the debt repayment ability of the company In addition, it is necessary to take measures to increase the profitability of assets and reduce the loss of assets, such as finding ways to increase net revenue and profit after tax through the development of good policies and incentives to attract customers and investors At the same time, 69 Downloaded by Do Thuy Trang (tailieuvcu123@gmail.com) lOMoARcPSD|27827034 there should be strict control policies from production to consumption to avoid wasting company resources For capital sources, promote solvency in the short term, and at the same time, look for qualified long-term debt and long-term time to meet long-term asset investment Along with that, the company needs to be flexible in finding other suitable funding sources to add more capital to help the company reduce the proportion of bank loans to be more proactive in financial terms and reduce interest expenses However, the company should also closely monitor receivables, develop measures and apply payment discount policies to customers to reduce debt collection time, reduce receivables and limit bad receivables Avoid the case of too much advance, leading to the appropriation of capital for too long, affecting the business results of the company About the company's solvency The company's liabilities accounted for nearly 60% over the years, showing that the company's level of financial independence is not high, and its working capital is still heavily dependent on outsiders Therefore, the company should apply some measures to strengthen the collection of receivables to compensate for payables such as payment discounts and penalties for overdue payments Increase cash in the company by building more reasonable reserves to ensure better solvency without wasting capital About the result of business The company's revenue has increased over the years, but the company's profit is still low due to the influence of factors both inside and outside the business, such as the epidemic situation, the price of raw materials, or the management The company's expenses are not really effective From there, we need some solutions, such as: Increase revenue: Implement a trade discount policy to stimulate revenue growth Check input materials, control the production process as well as strictly manage the storage and transportation of goods to avoid the situation of goods 70 Downloaded by Do Thuy Trang (tailieuvcu123@gmail.com) lOMoARcPSD|27827034 being returned due to damage or being unsatisfactory Promote advertising, marketing, and introducing the company image as well as the quality of work that the company brings to customers Maintain good relationships with business partners as well as with suppliers Cost control: minimize the source of bank loans to reduce financial costs in business activities; minimize the cases of violations of traffic laws to take advantage of reducing the amount of corporate income tax payable Solutions to factors affecting employee qualifications Need to improve professional skills and knowledge as well as the necessary skills of corporate financial analysts Training staff for financial analysis is a difficult and long-term job, and it is necessary to have young and dynamic staff to follow those who have gone before Therefore, the company needs to make an appropriate investment in terms of time and money in human resources to carry out this work The company can organize short-term professional training courses for financial managers Recruiting more young, highly skilled staff specializing in finance to enrich human resources Although this work is a long-term investment, it will certainly improve the efficiency and quality of the company's financial analysis in the future Solutions for the awareness of business owners In addition, business owners also need to have a clear awareness and improve their knowledge about the need and importance of business financial analysis to be able to offer strategies and policies to help improve business performance and solve the problems that are still being faced Solutions to the system of industry indicators Industry indicators will provide important information for companies; it is a reference basis for analysts to make comments, evaluations, and conclusions about their company's financial performance in a timely manner However, at present, we have the industry average, but it is incomplete and 71 Downloaded by Do Thuy Trang (tailieuvcu123@gmail.com) lOMoARcPSD|27827034 untimely, and it has not shown the reference role, so it causes many difficulties and confusion for the company when comparing and evaluating the activities of the company Therefore, after the government provided guidance documents for the development and provision of the industry average indicator system The company should have the responsibility to coordinate the construction to have consistency in the whole economy and to ensure the standards and objectivity for these indicators Solutions to overcome the impact of the COVID-19 pandemic With the severe effects of the COVID epidemic, the company has to face difficulties in terms of a shortage of demand for housing construction Many projects are frozen, but along with it is a fault in supply of raw materials and input materials for real estate projects, especially imported products Therefore, the company needs to develop policies to be able to access bank loans to solve the shortage of capital and have a reasonable inventory plan so as not to be short of raw materials during the price period of input materials, which is increasing today 72 Downloaded by Do Thuy Trang (tailieuvcu123@gmail.com) lOMoARcPSD|27827034 PART V: CONCLUSIONS AND RECOMMENDATIONS 5.1 Conclusion Corporate finance is an important part that governs all service activities in the production and business processes of an enterprise Understanding the financial position and trends of the business needs to be achieved to make the right business decisions Therefore, financial analysis is becoming a regular and continuous business and plays an increasingly important role in the production and business activities of enterprises To complete this thesis on financial analysis at Viet Lam Construction and Concrete Joint Stock Company, I initially outlined the basic concepts related to financial analysis in the enterprise, followed by describing how to collect and process data through financial statements: balance sheet, income statement, and cash flow statement from 2019 to 2021, together with methods and indicators The number used during the analysis Through analyzing the financial situation at Viet Lam Construction and Concrete Joint Stock Company, it shows that the company's financial situation is growing even though the economy is still facing many difficulties The company's revenue increased strongly, but the company's profit after tax was still low because the price of input materials increased, so the profit could not keep up with the revenue The company's solvency also increased, showing that the company is relatively secure in paying its debts In the structure of total capital, liabilities account for a relatively high proportion, showing that the company is expanding its production and business scale, which makes the company dependent on outsiders, affecting its initiative in business activities and the company will face pressure to repay debt in the long run Limitations of the topic Due to the limited time, this study only analyzed segments of the financial situation of Viet Lam Construction and Concrete Joint Stock 73 Downloaded by Do Thuy Trang (tailieuvcu123@gmail.com) lOMoARcPSD|27827034 Company It is not possible to clarify the effectiveness of asset management and use as well as assess the company's bankruptcy risk The analysis topic has only been reviewed for years, so it is still not possible to accurately assess the significant fluctuations of financial indicators The solutions proposed to contribute to the improvement of the financial position of the company in the topic are quite general and subjective It is difficult to assess whether the company can apply them or not 5.2 Recommendation To further develop the topic, I would like to suggest the following comments: Continue to provide indicators for analyzing asset management and utilization efficiencies, such as short-term asset turnover, short-term asset turnover period, inventory turnover, inventory days inventory, fixed asset productive capacity, and long-term asset productive capacity Besides, assess what the company's risk of bankruptcy is like Find out more about the debt collection methods at the company, such as debt limit, debt duration, and debt collection work that the company is applying Conduct a survey, poll the accountants at the company, and see if the solutions are implemented and what the company can contribute to the development of a solution The contribution of your teacher to improve the work In general, the analysis of a company's financial position is often very complex and influenced by many different factors Therefore, it takes a lot of time to learn deeply, accumulate knowledge and experience, and focus on analysis and evaluation If the above is done, the evaluation results of the project will be more complete and accurate, partly supporting the management requirements and decision-making of the company's leadership 74 Downloaded by Do Thuy Trang (tailieuvcu123@gmail.com) lOMoARcPSD|27827034 REFERENCES Alphanam Joint Stock Company (2019) Financial report Alphanam Joint Stock Company (2020) Financial report Alphanam Joint Stock Company (2021) FInancial report General Statistics Office (2022) Construction industry statistics report General Statistics Office (2022) Vietnam economic and financial report Le Thi Huong (2012) Financial analysis at Thach Duong Commercial Ltd Ngo The Chi, Nguyen Trong Co (2015) Giao trinh phan tich tai chinh doanh nghiep National Economics University Nguyen Minh Kieu (2010) Tai chinh doanh nghiep can ban Nguyen Nang Phuc (2010) Phan tich bao cao tai chinh National Economics University Nguyen Thi Phuong Hoa (2019) Financial analysis at Thai Hoa Ltd Luu Thi Huong, Vu Duy Hao (2006) Giao trinh tai chinh doanh nghiep National Economics University Thang Long Concrete Ready Found Joint Stock Company (2019) Financial report Thang Long Concrete Ready Found Joint Stock Company (2020) Financial report Thang Long Concrete Ready Found Joint Stock Company (2021) Financial report Viet Lam Construction and Concrete Joint Stock Company (2019) Financial report Viet Lam Construction and Concrete Joint Stock Company (2020) Financial report Viet Lam Construction and Concrete Joint Stock Company (2021) Financial report Viet Nam Dairy Products Joint Stock Company (2019) Financial report Viet Nam Dairy Products Joint Stock Company (2020) Financial report Viet Nam Dairy Products Joint Stock Company (2021) Financial report 75 Downloaded by Do Thuy Trang (tailieuvcu123@gmail.com) lOMoARcPSD|27827034 MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT SOCIALIST REPUBLIC OF VIETNAM VIETNAM NATIONAL UNIVERSITY OF AGRICULTURE Independence- Freedom-Happiness COMMITMENT FOR EDITING UNDERGRADUATE THESIS Name: Le Tran Linh Trang DOB: 12/02/2000 Address: Viet Tri city, Phu Tho province The author of topic: Financial analysis at Viet Lam Construction and Concrete Joint Stoct Company The supervisors: MSc Vu Thi Thu Huong- MSc Dang Nam Phuong Major: Advance financial economic Complete the undergraduate thesis defense: 14th June, 2022 Contents proposed to be edited by the Graduation Thesis grading committee: - More content on factors affecting corporate finance and proposed solution for improving the financial management of the company - Technical error correction Edited contents: - Content on factors affecting corporate finance and proposed solution for improving the financial management of the company - Technical error I certify that I have edited the thesis with the above contents, following the comments of the Graduation Thesis grading committee Hanoi, 20th June, 2022 Student Le Tran Linh Trang 76 Downloaded by Do Thuy Trang (tailieuvcu123@gmail.com)