Analysis of the financial potential of lam son technology development joint stock company

Factors affecting the financial potential of the enterprise...27CONCLUSION CHAPTER I...30 Trang 4 2.1.2 Features of business lines...312.1.3 Management structure:...372.2 Overview of th

ACADEMY OF FINANCE FACULTY OF CORPORATE FINANCE NGUYEN TIEN DAT CQ57.09.02CLC GRADUATE THESIS TOPIC: ANALYSIS OF THE FINANCIAL POTENTIAL OF LAM SON TECHNOLOGY DEVELOPMENT JOINT STOCK COMPANY Major : Financial Analysis Code (Advanced Education Program) Instructors : 09 : Ph.D Nguyen Huu Tan : Ph.D Hoang Thu Huong Ha Noi- 2023 DECLARATION OF AUTHORSHIP I hereby declare that this is my own research work, the data, and results stated in the graduation thesis are truthful, and derived from the actual situation of the internship unit Author Nguyen Tien Đat i TABLE OF CONTENTS DECLARATION OF AUTHORSHIP .i TABLE OF CONTENTS ii LIST OF TABLE v LIST OF DIAGRAM .vi PREFACE .1 Urgency of the topic CHAPTER I: THE GENERAL THEORY OF THE FINANCIAL POTENTIAL OF ENTERPRISES 1.1 Basic issues of corporate financial potential .6 1.1.1 Concept of financial potential 1.1.2 Contents of enterprise's financial potential 1.2 General theory of the analysis of the financial potential of the enterprise.8 1.2.1 Concepts and goals 1.2.2 Database for analysis of corporate financial potential 1.2.2 Analysis of debt situation .16 1.2.3 Analysis of the Enterprise’s payment ability .20 1.2.4 Analysis of cash generation ability and cash flow situation 23 1.3 Factors affecting the financial potential of the enterprise 27 CONCLUSION CHAPTER I 30 CHAPTER II: ANALYSIS CURRENT STATUS OF THE FINANCIAL POTENTIAL OF LAM SON TECHNOLOGY DEVELOPMENT JOINT STOCK COMPANY .31 2.1 General overview of Lam Son technology development joint stock company 31 2.1.1 The process of formation and development of the unit .31 ii 2.1.2 Features of business lines .31 2.1.3 Management structure: 37 2.2 Overview of the financial situation in the year of Lam Son technology development joint stock company 39 2.2.1 General analysis of the financial scale of Lam Son technology development joint stock company 39 2.2.2 General analysis of the profitability of Lam Son technology development joint stock company 44 2.2.3 General analysis of the financial structure of the entity .50 2.2.4 General conclusion .55 2.3 Analyzing the situation of the financial potential of Lam Son technology development joint stock company 56 2.3.1 Analysis of business situation and results of Lam Son technology development joint stock company: 56 2.3.2 Analysis of debt situation .62 2.3.3 Analysis of the enterprise’s payment ability: 68 2.3.4 Analysis of cash generation and cash flow situation 73 2.4 General assessment of the financial potential of Lam Son technology development joint stock company: 78 CONCLUSION CHAPTER II 82 CHAPTER 3: SOLUTIONS TO IMPROVE THE FINANCIAL POTENTIAL OF LAM SON TECHNOLOGY DEVELOPMENT JOINT STOCK COMPANY 83 3.1 Economic context and development orientation of Lam Son technology development joint stock company in the coming time: 83 3.1.1 Domestic economic context: 83 3.1.2 Objectives and operation orientation of Lam Son technology development joint stock company 88 iii 3.2 Some solutions to increase the financial potential of Lam Son technology development joint stock company: 89 CONCLUSION CHAPTER III .98 GENERAL CONCLUSION 99 REFERENCES 101 iv LIST OF TABLE Table 2.1: General analysis of the financial scale of Lam Son technology development joint stock company 40 Table 2.2: General analysis of the profitability of Lam Son technology development joint stock company 44 Table 3: General analysis of the financial structure of the entity 50 Table 4: Analysis of business situation and results of Lam Son technology development joint stock company 56 Table 5: Analysis of debt scale of Lam Son technology development joint stock company .62 Table 6: Debt structure analysis and debt management level 63 Table 7: Analysis of the enterprise’s payment ability .68 Table 8: Analysis of cash generation and cash flow situation 73 v LIST OF DIAGRAM Diagram 1: Organization chart of the management apparatus of Lam Son technology development joint stock company 37 vi PREFACE Urgency of the topic Today, along with the opening of the market economy, Vietnam has been deeply integrated into the world economy, creating great opportunities and not-so-small threats for domestic enterprises In addition to focusing on expanding production scale, product quality, goods, and services, minimizing costs, and minimizing profits, in order to improve competitiveness in the market, managers need to always know the financial status of the business In particular, the analysis and assessment of financial potential is a very useful tool Therefore, business managers often use this tool to assess the financial position of the company and draw up appropriate strategies to improve the financial situation better and better The financial potential of the enterprise is a composite factor that reflects its strength of the enterprise The financial strength of the enterprise reflects the available potential to bring advantages in financial activities and also reflects the ability to organize and run the business activities of the enterprise to achieve financial goals in each given period To assess the financial potential of the enterprise, the administrator will analyze and evaluate through such contents as analyzing the business situation and results; Analyzing the level of money generation and cash flow situation; Analysis of the debt situation, and payment ability The analysis of the financial potential of the business will help the manager to make decisions that are suitable for each of his or her interests Lam Son Technology Development Joint Stock Company is a special enterprise, operating in the main field of railway and road construction According to the actual survey, the analysis of the company's financial potential has not been appreciated, many shortcomings need to be improved Stemming from that fact, with the valuable knowledge about corporate financial analysis accumulated during the time of studying and researching at the Financial Analysis major - Academy of Finance, after a period of learning about Lam Son Technology Development Joint Stock Company, I chose the topic " Analysis of the financial potential of Lam Son Technology Development Joint Stock Company" as the topic of my graduation thesis Research purposes - To study the theory of financial potential and analyze the financial potential of enterprises - Studying the current situation of analyzing the financial potential of Lam Son technology development joint stock company - Propose some solutions for analyzing the financial potential of Lam Son technology development joint stock company Research object and scope - Research object of the topic: Analysis of corporate financial potential - Research scope of the topic:  Regarding content: Theoretical research on corporate financial potential serving managers and studying the current situation, proposing solutions to improve the content of financial analysis for managers  About space: Research at Lam Son Technology Development Joint Stock Company  About time: Period 2020-2021 Research Methods The method of data collection and documents: Information and data used in calculations of this study were collected through journals report on income statement; statements of cash flows; the balance sheet of Lam Son technology development joint stock company Qualitative research method: This method is applied to help detect and learn about the factors affecting and affecting the financial potential enterprise itself Sources of data to apply this research method include: Primary data source: - I interviewed officials in charge of finance and accounting on factors affecting the financial capacity, situation awareness, and use of financial instruments to prevent and limit the impact of interest rates, exchange rates, and commodity prices contribute to improving financial capacity - Sources of books, newspapers, specialized magazines, summary reports and conferences drafts of economic organizations and research institutions, research works relevant, and secondary information is also collected from the company financial statements for the period 2020- 2021 total report performance of tasks, plans and goals… These documents are compiled collected, classified, and arranged for each group by the research content Quantitative Analytical Methods: Comparative method: Comparison is a commonly used method in report analysis finance to study the results, volatility, and volatility of the analysis targets Comparison is made between this period's execution number and the real number of the previous period to clearly see the trend of changes in the