Trang 1 NGUYEN THU HOAI CQ57.09CL.1_LT2GRADUATION THESISTOPIC: ANALYZING THE FINANCIAL OF ENTERPRISES: A CASE OF AGC LIMITED COMPANYMajor: Financial Analysis Advanced Education ProgramCo
ACADEMY OF FINANCE FACULTY OF CORPORATE FINANCE NGUYEN THU HOAI CQ57.09CL.1_LT2 GRADUATION THESIS TOPIC: ANALYZING THE FINANCIAL OF ENTERPRISES: A CASE OF AGC LIMITED COMPANY Major : Financial Analysis (Advanced Education Program) Code 09 Instructor : Ph.D Hoang Thi Thu Huong Ph.D Nguyen Huu Tan Hanoi – 2023 Graduation thesis Academy of Finance DECLARATION OF AUTHORSHIP I hereby declare that the thesis was carried out by myself and that the work contained and the results in it are true and derived from the actual situation of the internship organization Author Nguyễn Thu Hoài ST: Nguyen Thu Hoai i Class: CQ57.09CL.1_LT2 Graduation thesis Academy of Finance LIST OF CONTENT DECLARATION OF AUTHORSHIP i ABBREVIATIONS iv LIST OF DIAGRAM .v LIST OF TABLE vi PREFACE CHAPTER 1: THEORETICAL BASIS FOR ANALYSIS OF ENTERPRISES FINANCIAL SITUATION 1.1 Overview of analysis of Enterprises Financial situation .5 1.1.1 Enterprises Financial Analysis Concepts and Objectives .5 1.1.2 Source of information using analysis of enterprises financial situation 1.1.3 Method of analyzing the state of enterprises finance 12 1.1.4 The method of analysing the influence of the factor 14 1.2 Content of Analyzing of enterprises finance 15 1.2.1 Analysis of assets and capital sources of enterprises 15 1.2.2 Anaysis of cash flow and liquidity and solvency of enterprises 19 1.2.3 Efficiency analysis 24 1.2.4 Analysis of business result 31 1.2.5 Debt situation analysis 34 1.2.6 Profitability analysis 37 CONCLUSION OF CHAPTER 42 CHAPTER 2: ANALYSIS OF FINANCIAL SITUATION OF AGC LIMITED COMPANY 43 2.1 Introduction to AGC Limited Company .43 2.1.1 The process of formation an development of the enterprises 43 - Qualification: 10% university, 50% technical labor 44 ST: Nguyen Thu Hoai ii Class: CQ57.09CL.1_LT2 Graduation thesis Academy of Finance 2.1.2 Characteristics of the company’s business 44 2.1.3 Organizational structure of the enterprises 46 2.2.1 Analysis of assets and capital sources 48 2.2.2 Analysis of cashflow and solvency of enterprises 58 2.2.3.Efficiency analysis 61 2.2.4 Analysis of business result 66 2.2.5 Debt situation analysis 70 2.2.6 Profitability analysis .74 2.3 General assessment of the financial situation of AGC Limited Company 79 2.3.1 Results achieved 79 2.3.2 Limitation .80 2.3.3 Causes of exítence 81 CONCLUSION OF CHAPTER 82 CHAPTER 3: SOME SOLUTIONS TO IMPROVE THE FINANCIAL SITUATION OF AGC LIMITED COMPANY .83 3.1 Enterprise’s growth strategy 83 3.1.1 Socio- Economic Context 83 3.1.2 Enterprises development direction 85 3.2 Solutions to improve the financial situation of the enterprise 86 3.3 Conditions for implementation of solution 91 CONCLUSION OF CHAPTER 93 CONCLUDE 94 REFERENCES 96 ST: Nguyen Thu Hoai iii Class: CQ57.09CL.1_LT2 Graduation thesis Academy of Finance ST: Nguyen Thu Hoai iv Class: CQ57.09CL.1_LT2 Graduation thesis Academy of Finance ABBREVIATIONS Ht The ratio of owner's equity to total assets BEP Basic earning power Hcp Cost ratio LCT Net revenue ROA Return on assets ROE Return on equity ROS Profitability Ratio SI Short term investmenmt rati WCT Working capital turnover DWCT Days of WCT NI Net Income AE Average of equity AWC Average working capital ATA Average of total assets LIST OF DIAGRAM Diagram 2.1 Organization of the production apparatus 44 Diagram 2.2 : Technology process characteristics 46 ST: Nguyen Thu Hoai v Class: CQ57.09CL.1_LT2 Graduation thesis Academy of Finance Diagram 2.3 Organizational apparatus of Ha Mai Construction Services and Investment Joint Stock Company 46 ST: Nguyen Thu Hoai vi Class: CQ57.09CL.1_LT2 Graduation thesis Academy of Finance LIST OF TABLE Table 2.1 Assset situation of AGC Limited Company in the period of 2020- 2021 .50 Table 2.2 Capital sources of AGC Limited Company (2020-2021) 53 Table 2.3 The relationship of assets and capital .56 Table 2.4 Cash flow of AGC Limited Company (2020-2021) 58 Table 2.5 The Liquidity and solvency of AGC Limited Company (2020-2021) 60 Table 2.6 Total assets turnover of AGC Limited Company (2020-2021) 62 Table 2.7 Working capital turnover of AGC Limited Company (2020-2021).64 Table 2.8 Business result of AGC Comapany (2020-2021) 67 Table 2.9 Debt of AGC Limited Company (2020-2021) 70 Table 2.10 level of structure, level of debt management of AGC Limited Company (2020-2021) 72 Table 2.11 ROA of AGC Limited Company (2020-2021) 74 Table 2.12 ROE of AGC Limited Company (2020-2021) 77 ST: Nguyen Thu Hoai vii Class: CQ57.09CL.1_LT2 Graduation thesis Academy of Finance The urgency of the topic PREFACE After 35 years of transforming from a backward, subsidized economy to a socialist-oriented market economy – a period of industrial revolution, modernization and international integration, Vietnam's economy has become more vibrant than ever, as businesses of all economic sectors are born more and more, the development of capital markets with a variety of products, exchanges, securities companies or financial institutions It works in a vibrant way The ultimate goal that businesses are interested in is to maximize the value of the business as well as achieve the highest level of profitability To achieve this goal, managers of businesses need to understand the financial situation of the business by analyzing and evaluating the results achieved year by year Analyzing the financial situation is now an extremely necessary job for all sectors in the economy and business Conducting an analysis of the financial situation will help the managers of the enterprise understand the results of production and business activities of the enterprise, as well as clearly identify the causes and extent of the influence of each factor affecting different factors From there, it is possible to assess the potential, risks as well as prospects of the business and help the management of the business make better decisions for the future directions of the business such as, economical use, capital efficiency and resources to improve the quality of economic management, improve the production and business efficiency of the enterprise Like many other enterprises in the Vietnamese economy, AGC Limited Company was born in the field of providing services and investment in ST: Nguyen Thu Hoai Class: CQ57.09CL.1_LT2 Graduation thesis Academy of Finance construction with many goals The company has also been operating in an industry for quite some time and has a fairly large level of competition in the industry Therefore, the analysis of the financial situation of the enterprise is necessary for the company to have future orientations as well as managers make the right decisions, helping to maximize profitability and value of the business Stemming from the above reasons, the author selected the topic "Analyzing the financial situation of enterprisese: A case of AGC Limited Company"to the graduation thesis, with the desire to contribute his opinion to improve the quality of information, serving the company's management Research objectives General objectives: Analyzing and evaluating the financial situation of AGC Limited Company, thereby proposing solutions to improve the financial situation Specific goals: - The system of theoretical issues of analyzing the financial situation at the enterprise - Analyzing the financial situation at the company Thereby, assess the results achieved and the limitations of the company's financial situation Since then, we have proposed a number of solutions to improve the financial situation of the company in the next stages Subjects and scope of study Subject of study: The financial situation of the business Scope ofstudy: About content: Analyzing the financial situation of enterprisese: A case of AGC Limited Company ST: Nguyen Thu Hoai Class: CQ57.09CL.1_LT2