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ACADEMY OF FINANCE FACULTY OF CORPORATE FINANCE TA DUY VINH CQ57.09CL.1-LT2 GRADUATION THESIS TOPIC: ANALYZING THE FINANCIAL SITUATION OF ENTERPRISES A CASE OF DNA INVESTMENT JOINT STOCK COMPANY Major: Financial Analysis (Advanced Education Program) Code: 09 Instructor: PhD Ho Thi Thu Huong PhD Nguyen Huu Tan Hanoi - 2023 DECLARATION OF AUTHORSHIP At this moment, I declare that the thesis was carried out by myself and that the work and results are accurate and derived from the actual situation of the internship organization Author Ta Duy Vinh TABLE OF CONTENTS DECLARATION OF AUTHORSHIP ii TABLE OF CONTENTS .iii ABBREVIATIONS .v LIST OF TABLES .vi LIST OF DIAGRAMS .vii PREFACE CHAPTER 1: THEORETICAL BASIS FOR ANALYSIS FINANCIAL SITUATION OF ENTERPRISES 1.1 General theory of corporate finance 1.1.1 The concept of corporate finance 1.1.2 The role of corporate finance 1.2 General theory on analyzing the financial situation of enterprises 1.2.1 The concept of analyzing the financial situation of enterprises .5 1.2.2 Objectives of analyzing the financial situation of enterprises .5 1.2.3 Meaning of analyzing the financial situation of enterprises 1.2.4 Source of information used for analyzing the financial situation of enterprises 1.3 Method of analyzing the financial situation of enterprises 11 1.3.1 Assessment method .11 1.3.2 Factor analysis method 13 1.4 Content of analyzing the financial situation of enterprises 15 1.4.1 Analysis of assets and capital situation of enterprises 15 1.3.2 Analysis of the situation and business results of enterprises 23 1.3.3 Analysis of receivables, payables, and the ability payment of enterprises .25 1.3.4 Analysis of the ability of cash generation and cash flow situation of the enterprise 32 1.3.5 Analysis of the effectiveness of the enterprise's use of capital 37 1.3.6 Analysis of the profitability of enterprises 46 CONCLUSION OF CHAPTER 56 CHAPTER 2: ANALYSIS OF THE FINANCIAL SITUATION OF DNA INVESTMENT JOINT STOCK COMPANY 57 2.1 Introduction to DNA Investment Joint Stock Company .57 2.1.1 The process of formation and development of the company 57 2.1.2 Key business lines 59 2.1.3 Company structure .60 2.2 Analysis of the financial situation of DNA Investment Joint Stock Company 65 2.2.1 Analysis of assets and capital sources 65 2.2.2 Analysis of business situation and results 80 2.2.3 Analysis of the situation of account receivables and payables and the ability payment of the company 85 2.2.4 Analysis of cash flow situation 93 2.2.5 Analysis of capital performance 97 2.2.6 Analysis of capital profitability 104 2.3 General assessment of the financial situation of DNA Investment Joint Stock Company .113 2.3.1 Results achieved 113 2.3.2 Limitations and causes .115 CONCLUSION OF CHAPTER 116 CHAPTER 3: SOME SOLUTIONS TO IMPROVE THE FINANCIAL SITUATION OF DNA INVESTMENT JOINT STOCK COMPANY 117 3.1 Company’s growth strategy .117 3.1.1 Socio-Economic Context .117 3.1.2 Development objectives and orientations of DNA Investment Joint Stock Company 121 3.2 Solutions to improve the financial situation of DNA Investment Joint Stock Company .122 3.2.1 Financial solutions 123 3.2.2 Corporate Governance solutions 129 CONCLUSION OF CHAPTER 133 CONCLUDE 134 REFERENCES 135 ABBREVIATIONS AOE Average Owner’s Equity assets ATA Average Total Assets AWC Average Working Capital BOD Board Of Director BOS Board Of Supervisors BVPS Book Value Per Share COGS Cost Of Goods Sold CPI Consumer Price Index DWCT Days of Working Capital Turnover EBIT Earning Before Tax and Interest EPS Earnings Per Share FTA Free Trade Area GDP Gross Domestic Product GMS General Meeting of Shareholders Hcp Cost ratio Ht The ratio of owner’s equity to total IF Cash inflow N Number of Days in the period NWC Net Working Capital OF Cash outflow PAT Profit after tax ROA Return on Assets ROE Return on Equity ROS Return on Sales SI Short-term Investment ratio TAT Total Assets Turnover TR Total Revenue WACC Weighted Average Cost of Capital WCT Working Capital Turnover LIST OF TABLES Table Shareholder structure of DNA Investment Joint Stock Company in 2021 60 Table 2 Capital sources situation of DNA Investment Joint Stock Company in the period of 2020-2021 65 Table Asset situation of DNA Investment Joint Stock Company in the period of 2020-2021 70 Table Balanced relationship between assets and capital sources of DNA Investment Joint Stock Company in the period of 2020-2021 77 Table Business situation and results of DNA Investment Joint Stock Company in the period of 2020-2021 80 Table Account receivables and payables situation of DNA Investment Joint Stock Company in the period of 2020-202186 Table Liquidity and solvency situation of DNA Investment Joint Stock Company in the period of 2020-2021 90 Table Cash flow situation of DNA Investment Joint Stock Company in the period of 2020-2021 93 Table Business capital utilization performance of DNA Investment Joint Stock Company in the period of 2020-202198 Table 10 Working capital turnover of DNA Investment Joint Stock Company in the period of 2020-2021 101 Table 11 Return on assets of DNA Investment Joint Stock Company in the period of 2020-2021 104 Table 12 Return on equity of DNA Investment Joint Stock Company in the period of 2020-2021 108 LIST OF DIAGRAMS Diagram Organizational apparatus of DNA Investment Joint Stock Company 61 PREFACE The urgency of the topic After Vietnam underwent economic reforms that led to the industrial revolution, modernization, and global integration, it transitioned from a backward, subsidized economy to a market economy that was socialist in nature When new enterprises across all economic sectors are created, the capital market develops with various products, trading floors, securities companies, or financial institutions work vibrantly, and Vietnam's economy becomes more vibrant than ever Maximizing business value and making the most profit are the two things that matter most to enterprises Enterprises must have a solid financial capacity to perform production, trade, and compete successfully to accomplish this goal As a result, the managers of the enterprise must comprehend the viability of the enterprise through the study and evaluation of the internal financial situation of enterprises as well as the results obtained year after year Along with the development and increasing competitive pressure of all industries and sectors in the market economy, the manufacturing and export industries today, not only ensure the supply of goods and services and domestic demand but also export goods to foreign countries, contributing significantly to the development of the economy DNA Investment Joint Stock Company is one of the pioneering enterprises in changing mechanisms, expanding, and diversifying business fields, and improving competitiveness to survive and develop DNA Investment Joint Stock Company was founded in the context of Vietnam's international integration with the primary field of manufacture and export of clothes hangers The Company has been in business for over ten years and currently holds a competitive advantage However, along with the general trend of enterprises in Vietnam, the analysis of the company's financial situation needs to be paid more attention to; many problems exist that need to be analyzed and assessed For those reasons, the author decided to write his graduation thesis on "Analysis of the Financial Situation of DNA Investment Joint Stock Company" to improve the quality of information for corporate governance Research objectives The goal is to analyze and assess DNA Investment Joint Stock Company's financial situation in 2020 and 2021 to suggest improvements Specific targets: The system of theoretical bases for analyzing the financial status of enterprises Analysis of the financial situation of DNA Investment Joint Stock Company in 2020-2021 Thereby measuring the results gained and limits on the company's financial situation Following that, suggest ways to strengthen DNA Investment Joint Stock Company's financial situation in the future