Financial Analysis Of Company Vinamilk.pdf

lOMoARcPSD|38133502 UNIVERSITY OF ECONOMICS AND FINANCE Subject: Corporate Finance Topic: FINANCIAL ANALYSIS OF COMPANY VINAMILK Members: No Full Name Student’s ID Contribution Le Hue Ngan 205015399 100% Đau Thi Bich Ngoc 215024814 100% Lecturer: Tang My Sang HCM City, 05/04/2023 Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 Table of Contents I INTRODUCTION Overview of business Business organization chart II ANALYSIS Financial Analysic Method 1.1 Balance Sheet 1.1.1 Analyze the structure and volatility of assets 1.1.2 Analyze the structure and volatility of equity 1.2 Income statement: 11 Financial ratios analysis 14 2.1 Liquidity ratios 15 2.2 Leverage ratios 15 2.3 Coverage ratios 16 2.4 Activities ratios 16 2.5 Profiability ratios 17 Dupont analysis 18 III CONCLUSION 19 Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 I INTRODUCTION Overview of business Vietnam Dairy Products Joint Stock Company, another name: Vinamilk, stock code HOSE: VNM, is the leading nutrition corporation in Vietnam today, owning a system of 17 factories, 15 domestic and foreign farms Vinamilk has a rich product portfolio, with more than 250 types of products in diverse categories such as liquid milk, yogurt, powdered milk and nutritional powder, condensed milk, ice cream, cheese, nut milk, beverage, line Organic products… meet all the nutritional needs of Vietnamese consumers In addition to affirming its brand position in the domestic market, Vinamilk also has many strategic steps to build a foothold for the Vietnamese dairy brand in the world market through trade promotion and integration activities actively promoting exports in many countries such as China, Korea, Japan, the United States Vinamilk is also the first dairy company in Vietnam licensed to export milk to the countries of the Asian Economic Union Europe (EAEU) Currently, Vinamilk is the only representative of Vietnam and Southeast Asia in the Top 40 largest dairy companies globally in terms of revenue (according to Plimsoll, UK), with products exported to 57 countries and territories , with a total cumulative export turnover of more than $2.6 billion Vinamilk's brand value reached US$2.814 billion, making it the most valuable food brand in Vietnam and the sixth largest dairy brand in the world, as announced by Brand Finance - a brand valuation company world leading reputation Not only worth billions of dollars, with its prestige and quality confirmed, Vinamilk is the milk brand chosen by Vietnamese consumers the most for the past 10 years in a row according to Worldpanel's "Brand Footprint" report belonging to Kantar In 2022, Vinamilk will continue to promote investment and development projects such as a farm complex in Laos, Milk Paradise in Moc Chau, building a dairy factory in Hung Yen In parallel with developing existing international markets, Vinamilk also cooperates with major partners such as Sojitz Corporation of Japan, Del Monte Philippines in joint ventures in the food industry to continue promoting the company's growth general and brands in particular Business organization chart Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 II ANALYSIS Financial Analysic Method 1.1 Balance Sheet 1.1.1 Analyze the structure and volatility of assets Current Assets Long-term Assets 60.000.000 16.922.282 17.222.493 18.766.755 19.978.308 50.000.000 31.560.382 36.109.911 29.665.726 24.721.565 40.000.000 30.000.000 2022 2021 2020 2019 20.000.000 10.000.000 Looking at the chart, it can be seen that the company's total assets tend to increase gradually over the years, but in 2022 the company's total assets decreased markedly, decreasing Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 by about 9.09% compared to 2021 Short-term assets increased from 24,721,565 billion to 36,109,911 billion from 2019 to 2021, but by 2022, it will decrease by about 12.6% compared to 2021 to only 31,560,382 billion In addition, long-term assets are contrasted to current assets and total assets; Specifically, long-term assets decreased steadily over the years, decreasing from 19,978,308 billion to 16,922,282 billion from 2019 to 2022 Accounts 2022 2021 2020 2019 Average of years Current Assets 31.560.382 36.109.911 29.665.726 24.721.565 62,6% Long-term Assets 16.922.282 17.222.493 18.766.755 19.978.308 37,4% TOTAL 48.482.664 53.332.404 48.432.481 44.699.873 100% Regarding current assets: In the asset structure of the company, current assets account for the main proportion and the average 4-year account for about 62.6% of total assets The share of investments in inventory, short-term financial investments and short-term receivables is quite high Bảng: Current Assets Account 2022 2021 2020 2019 Current Assets 31.560.382 36.109.911 29.665.726 24.721.565 +Cash and Cash Equivalents 2.299.944 2.348.552 2.111.243 2.665.195 +Short term financial investment 17.414.055 21.025.736 17.313.680 12.435.744 +Short term Account Receivables 6.100.403 5.822.029 5.187.253 4.503.155 +Inventories 5.537.563 6.773.072 4.905.069 4.983.044 +Other Current Assets 208.417 140.523 148.481 134.427 TOTAL ASSETS 48.482.664 53.332.403 48.432.481 44.699.873 Bảng: The proportion of current assets in total assets Account Comparision analysis Common-sized analysis 2022/2021 2021/2020 2020/2019 2022 2021 2020 2019 Current Assets -12,60% 21,72% 20,00% 65,10% 67,71% 61,25% 55,31% +Cash and Cash Equivalents -2,07% 11,24% -20,78% 4,74% 4,40% 4,36% 5,96% +Short term financial investment -17,18% 21,44% 39,23% 35,92% 39,42% 35,75% 27,82% +Short term Account Receivables 4,78% 12,24% 15,19% 12,58% 10,92% 10,71% 10,07% +Inventories -18,24% 38,08% -1,56% 11,42% 12,70% 10,13% 11,15% Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 +Other Current Assets 48,32% -5,36% 10,45% 0,43% 0,26% 0,31% 0,30% TOTAL ASSETS -9,09% 10,12% 8,35% 100% 100% 100% 100% Cash and cash equivalents: In 2019 to 2022, there is a downward trend, specifically in 2019 accounting for 5.96% of total assets equivalent to 2,665,195 billion, but in 2020, cash and cash equivalents will decrease by about 20.78% compared to 2019; by 2022, the proportion of cash and cash equivalents will only account for 4.74% of 65.1% of short-term assets, equivalent to 2,299,944 billion, down 2.07% compared to 2021 Such a reduction in cash shows that the company is facing inflation as well as other factors such as the Covid-19 epidemic, avoiding holding too much cash to lose opportunity costs, so the company has used cash to invest in short- term financial investments thus making financial investments from 2019 by 2021, it will increase, specifically increasing from 12,435,744 billion to 21,025,736 billion and accounting for 39.42% of total assets However, in 2022, the financial investment item decreased to 17,414,055 billion, down equivalent to 17.18% compared to 2021, but in general, the company's short-term financial investment is still on the rise and accounts for the highest proportion of short-term assets On the other hand, reducing such an amount of cash will reduce the company's liquidity, so the company needs to consider how much money to keep appropriately Short-term Account Receivables: Short-term account receivables have steadily increased over the years and increasingly account for a larger proportion of total short-term assets; Specifically, it increased from 4,503,155 billion in 2019 to 6,100,403 billion in 2022 and accounted for about 12.58% of total assets In addition, the year-over-year increase in receivables indicates that the company has loosened credit, adopted a sell-to-bear policy, thereby increasing its long-standing business relationship with buyers However, if customers owe too much, the company may be exposed to certain risks Unrecovered capital will reduce opportunity costs, the company will not be able to use that capital to reinvest in the most effective way and will be forced to mobilize other capital sources to compensate for production and business activities Inventories: In 2019 to 202, the number of inventories increased steadily over the years, specifically increasing from 4,983,044 billion to 6,773,072 billion, equivalent to increasing the proportion from 11.15% to 12.7% compared to total assets Because of the increasing demand for milk of the people and the reputation of the company, many customers put their trust in the choice of Vinamilk-branded milk Therefore, the company increasingly has to stock an inventory of milk, food to be able to timely meet the consumer demand of the market However, in 2022, Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 the number of inventories has decreased to 5,537,563 billion, equivalent to a decrease of 18.24% compared to 2021, accounting for 11.42% of total assets The reason is that the cost of raw materials increases due to the influence of monetary policies, domestic price adjustment policies and other direct and indirect impacts on the economy, so production costs will increase accordingly Along with that price increase, customer demand will tend to decrease so the company has reduced the amount of inventory to match the demand of the market Regarding long-term assets: In the asset structure of the company, long-term assets account for less proportion than current assets and the average 4-year account for about 37.4% of total assets The proportion of investment in fixed assets, long-term incomplete assets and other long-term assets are quite high, but most tend to decrease year by year Bảng: Long-term assets Account 2022 2021 2020 2019 Long-term Assets 16.922.282 17.222.493 18.766.755 19.978.308 +Long term Account Receivable 38.423 16.695 19.974 21.170 +Fixed assets 11.903.208 12.706.599 13.853.808 14.893.540 +Real Estate investment 57.594 60.050 59.997 62.018 +Long-term incomplete assets 1.805.130 1.130.024 1.062.634 943.846 +Long term Finacial Investments 742.670 743.862 973.441 986.676 +Other long term assets 2.375.258 2.565.264 2.796.901 3.071.058 TOTAL ASSETS 48.482.664 53.332.403 48.432.481 44.699.873 Bảng: The proportion of Long-term assets in total assets Account Comparision analysis Common-sized analysis 2022/2021 2021/2020 2020/2019 2022 2021 2020 2019 Long-term Assets -1,74% -8,23% -6,06% 34,90% 32,29% 38,75% 44,69% +Long term Account Receivable 130,15% -16,42% -5,65% 0,08% 0,03% 0,04% 0,05% +Fixed assets +Real Estate investment -6,32% -8,28% -6,98% 24,55% 23,83% 28,60% 33,32% +Long-term incomplete assets -4,09% 0,09% -3,26% 0,12% 0,11% 0,12% 0,14% +Long term Finacial 59,74% 6,34% 12,59% 3,72% 2,12% 2,19% 2,11% Investments +Other long term assets -0,16% -23,58% -1,34% 1,53% 1,39% 2,01% 2,21% TOTAL ASSETS -7,41% -8,28% -8,93% 4,90% 4,81% 5,77% 6,87% -9,09% 10,12% 8,35% 100% 100% 100% 100% Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 Fixed assets: in the long-term asset category, it can be seen that the fixed assets of the company account for the largest proportion, but tend to decrease over the years from 14,893,540 billion in 2019 to 11,903,208 billion in 2022; accounting for 24.55% of total assets in 2022, equivalent to a decrease of 6.32% compared to 2021 The decrease in fixed assets can be attributed to annual depreciation from machinery and equipment, vehicles, office equipment, livestock, houses and architectural objects; It is possible that in recent years, the Company has focused on investing in deploying tangible fixed assets and intangible fixed assets that have not been completed or installed, so currently the fixed assets of the Company cannot recover as in previous years Real Estate Investment: The decrease in Real Estate Investment may be due to depreciation from land use rights with a definite term, infrastructure, houses annually; In 2022, it is 57,594 billion, equivalent to a decrease of 4.09% compared to 60,050 billion in 2021 Long-term incomplete assets: In 2019, it increased from 943,846 billion to 1,805,130 billion in 2022 and increased by about 59.74% compared to 2021 This shows that the company has invested in more production and business facilities; the costs of building or deploying tangible fixed assets and intangible fixed assets that have not been completed or installed 1.1.2 Analyze the structure and volatility of equity Liabilities Owners equity 60.000.000 35.850.114 50.000.000 40.000.000 32.816.518 33.647.122 29.731.255 30.000.000 20.000.000 15.666.146 17.482.289 14.785.358 14.968.618 10.000.000 2022 2021 2020 2019 Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 Looking at the chart, it can be seen that the total capital of the company tends to increase gradually over the years, but in 2022 the total capital of the company decreased markedly, decreasing by about 9.09% compared to 2021 Equity capital increased from 29,731,255 billion to 35,850,114 billion from 2019 to 2021, but by 2022, it will decrease by about 8.46% compared to 2021 to only 32,816,518 billion In addition, liabilities are similar to equity; Specifically, liabilities increased steadily over the years, from 14,968,618 billion to 53,332,403 billion from 2019 to 2021; and by 2022, it will decrease by about 10.39% compared to 2022, equivalent to 15,666,146 billion Accounts 2022 2021 2020 2019 Average of years Liabilities 15.666.146 17.482.289 14.785.358 14.968.618 Owners equity 32.816.518 35.850.114 33.647.122 29.731.255 32,3% TOTAL 48.482.664 53.332.403 48.432.480 44.699.873 67,7% 100% Regarding liabilities: In the capital structure of the company, liabilities account for not as much as equity and the average 4-year ratio accounts for about 32.3% of the total capital Bảng: Liabilities Account 2022 2021 2020 2019 Liabilities 15.666.146 17.482.289 14.785.358 14.968.618 -Short term Liabilities 15.308.423 17.068.417 14.212.646 14.442.852 -Short term Loan and Liabilities 4.867.130 9.382.354 7.316.497 5.351.461 -Payment for suppliers 4.284.158 4.213.888 3.199.186 3.648.446 -Prepaid from Customers 161,709 66,036 111,16 245,248 -Tax and other payable to State Budget 598,135 648,147 659,55 619,394 -Employees Payable 287,914 304,672 279,673 239,521 -Expenses Payable 1.620.875 1.817.263 1.910.214 1.738.322 -Other Account Payables 3.055.542 114,417 145,835 1.956.364 -Long term Liabilities 357.723 413.872 572.712 525.766 -Other long-term payables 3,712 21,901 59,731 27,419 -Loans and Long term Liabilities 66,029 75,636 167,422 122,993 TOTAL EQUITY 48.482.664 53.332.403 48.432.481 44.699.873 Bảng: The proportion of liabilities in total equity Account Comparision analysis Common-sized analysis Liabilities 2022/2021 2021/2020 2020/2019 2022 2021 2020 2019 -Short term Liabilities -10,39% 18,24% -1,22% 32,31% 32,78% 30,53% 33,49% -10,31% 20,09% -1,59% 31,58% 32,00% 29,35% 32,31% Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 -Short term Loan and -48,12% 28,24% 36,72% 10,04% 17,59% 15,11% 11,97% Liabilities -Payment for suppliers 1,67% 31,72% -12,31% 8,84% 7,90% 6,61% 8,16% -10,81% -4,87% 9,89% 3,34% 3,41% 3,94% 3,89% -Expenses Payable -Other Account 2670431,48% -21,54% -99,99% 6,30% 0,00% 0,00% 4,38% Payables -Long term Liabilities -13,57% -27,73% 8,93% 0,74% 0,78% 1,18% 1,18% -9,09% 10,12% 8,35% 100% 100% 100% 100% TOTAL EQUITY In the structure of liabilities of the company, short-term debt accounts for the main proportion and tends to fluctuate continuously from 2019 to 2022; Specifically, accounting for 32% in 2021, equivalent to 17,068,417 billion, up 20.09% compared to 2020 The proportion of short-term debt in 2022 is 15,308,423 billion, although it has decreased and decreased by 10.31% compared to 2021, but still accounts for a high proportion; In particular, the company mainly uses trade credit capital from unpaid sellers to finance assets Trade credit capital increasingly accounts for an increasing proportion from 2019 to 2022, equivalent to 3,648,446 billion to 4,284,158 billion and accounting for 8.84% of 32.31% of liabilities in 2022 In addition, other short-term loans and liabilities also increased from 5,351,461 billion in 2019 to 9,382,354 billion in 2021 and accounted for 17.59% of liabilities It is also possible that the economic situation of the company as well as the economy of the world is affected by the Covid-19 epidemic along with other factors that make the company's borrowing trend increase; But in 2022, the economy has gradually recovered, and the short term loan and liabilities have decreased from 9,382,354 billion to 4,867,130 billion in 2022, equivalent to a decrease of about 48.12% compared to 2021 Long-term debt also tends to decrease over the years, from 525,766 billion in 2019 to 357,723 billion in 2022, equivalent to accounting for about 0.74% of total liabilities in 2022 Regarding equity: In the capital structure of the company, equity accounts for the main proportion and on average years accounts for about 67.7% of the total capital Bảng: Owners equity Account 2022 2021 2020 2019 Owners equity 32.816.518 35.850.114 33.647.122 29.731.255 -Capital and researves 32.816.518 35.850.114 33.647.122 29.731.255 -Paid-in capital 20.899.554 20.899.554 20.899.554 17.416.878 TOTAL EQUITY 48.482.664 53.332.403 48.432.481 44.699.873 Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 Bảng: The proportion of Owners equity in total equity Account Comparision analysis Common-sized analysis Owners equity 2022/2021 2021/2020 2020/2019 2022 2021 2020 2019 -Capital and researves 67,69% -Paid-in capital -8,46% 6,55% 13,17% 67,69% 67,22% 69,47% 66,51% TOTAL EQUITY 43,11% -8,46% 6,55% 13,17% 100% 67,22% 69,47% 66,51% 0,00% 0,00% 20,00% 39,19% 43,15% 38,96% -9,09% 10,12% 8,35% 100% 100,00% 100% In terms of equity, paid-in capital accounted for the largest proportion and accounted for 43.11% in 2022 Specifically, Paid-in capital in 2019 accounted for 38.96% of 66.51% of equity and tended to increase gradually over the years, from 17,416,878 billion to 20,899,554 billion, equivalent to 43.11% of the proportion of 67.69% of equity in 2022 This shows that profitable companies tend to be more financially autonomous In addition, the chart of capital sources shows that the company is inclined to use equity to finance assets, which helps the company grow more sustainably, but will affect the profitability of equity when less financial leverage is used 1.2 Income statement: 70.000.000 59.956.247 60.919.165 59.636.286 60.000.000 50.000.000 56.318.123 40.000.000 30.000.000 36.059.016 34.640.863 31.967.663 29.745.906 20.000.000 23.897.232 26.278.301 27.668.623 26.572.217 10.000.000 2022 -Net Sales 2021 2020 2019 -Cost of goods sold -Gross profit Bảng: Net Sales, COGS and Gross profit Account 2022 2021 2020 2019 59.956.247 Net Sales 60.919.165 59.636.286 56.318.123 Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 Cost of goods sold 36.059.016 34.640.863 31.967.663 29.745.906 Gross profit 23.897.232 26.278.301 27.668.623 26.572.217 Bảng: The proportion of Net Sales, COGS and Gross profit Account Comparision analysis Common-sized analysis Net Sales 2022/2021 2021/2020 2020/2019 Cost of goods sold 2022 2021 2020 2019 Gross profit -1,58% 2,15% 5,89% 100% 100% 100% 100% 4,09% 8,36% 7,47% 60,14% 56,86% 53,60% 52,82% -9,06% -5,02% 4,13% 39,86% 43,14% 46,40% 47,18% Looking at the above tables, it can be seen that in the last years from 2019 to 2022, the proportion of the cost of goods sold has been increasing; Specifically, from 52.82% in 2019, equivalent to 29,745,906 billion, to 60.14%, equivalent to 36,059,016 billion in 2022 and an increase of about 4.09% compared to 2021 To generate a co-revenue of net sales, the company costs more cost of goods sold; In addition, the cost of raw materials directly consumes beyond normal; The reason is that the world economy from the end of 2019 to 2022 is still affected by the pandemic and has not yet recovered, along with the increase in the cost of raw materials for dairy farming and costs such as packaging while the exchange rate is constantly, causing high production costs and high cost of company costs Therefore, enterprises need to find measures to reduce the cost of goods sold to save costs and increase profits for businesses In contrast, gross profit tends to decrease from 26,572,217 billion in 2019, equivalent to 47.18% to 23,897,232 billion in 2022, equivalent to 39.86% in the proportion of net revenue; down about 9.06% compared to 2021 Bảng: Expenses Account 2022 2021 2020 2019 Net Sales 59.956.247 Financial Expenses 617.537 60.919.165 59.636.286 56.318.123 Of which: Interest Expenses 166,039 202.338 308.569 186.970 Selling Expenses 12.548.212 88,799 143,818 108,825 12.950.670 13.447.493 12.993.455 Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 General and admin expenses 1.595.846 1.567.312 1.958.155 1.396.302 Bảng: Proportion of expenses Account Comparision analysis Common-sized analysis Net Sales 2022/2021 2021/2020 2020/2019 2022 2021 2020 2019 -1,58% 2,15% 5,89% 100% 100% 100% 100% Financial Expenses 205,20% -34,43% 65,04% 1,03% 0,33% 0,52% 0,33% Of which: Interest 86,98% -38,26% 32,16% 0,00% 0,00% 0,00% 0,00% Expenses Selling Expenses -3,11% -3,69% 3,49% 20,93% 21,26% 22,55% 23,07% General and admin 1,82% -19,96% 40,24% 2,66% 2,57% 3,28% 2,48% expenses Financial expenses including interest expenses tend to increase from 108,825 billion in 2019 to 166,039 billion in 2022 Showing that the interest expense the company incurred when using external loans in 2022 to expand production and business activities is increasing Therefore, the company needs to have appropriate financial policies to reduce the cost of external loans and more effectively use loans in production and business activities A slower decrease in selling expenses greater than a decrease in revenue indicates an inappropriate use of selling expenses; Therefore, the company should adjust the sales policy to be more reasonable In general, the operating costs of the company are increasing, to generate a co-revenue the company costs more sales costs, financial costs Thus, the company needs to review its agency policies and sales commission policies so that the growth rate of selling costs is in line with the growth rate of net revenue Bảng: Profit before and after tax Account 2022 2021 2020 2019 -Net Sales 59.956.247 56.318.123 -Pretax Profit 10.495.535 60.919.165 59.636.286 12.795.710 -Corporate Income Tax Expenses 1.917.959 12.922.235 13.518.536 2.241.378 -Net Profit After Tax 8.577.575 2.289.700 2.282.804 10.554.332 10.632.536 11.235.732 Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 Bảng: The proportion of profit before and after tax Account Comparision analysis Common-sized analysis Net Sales 2022/2021 2021/2020 2020/2019 2022 2021 2020 2019 -1,58% 2,15% 5,89% 100% 100% 100% 100% Pretax Profit -18,78% -4,41% 5,65% 17,51% 21,21% 22,67% 22,72% -16,24% 0,30% 1,85% 3,20% 3,76% 3,83% 3,98% Corporate Income -19,33% -5,37% 6,46% 14,31% 17,45% 18,84% 18,74% Tax Expenses Net Profit After Tax Profit before tax tends to increase from 12,795,710 billion in 2019 to 13,518,536 billion in 2020 equivalent to 5.65% However, from 2021 to 2022, pre-tax profit tends to decrease to 12,922,235 billion in 2021 and only 10,495,535 billion, equivalent to a proportion of 17.51% compared to the proportion of net revenue in 2022 It may be because the company is not entitled to the payment discount because it did not pay the supplier early because the company needs to use the capital to serve its business The increase or decrease of profit after tax is directly proportional to pre-tax profit in 2022, profit after tax accounts for 14.31% of net revenue and tends to decrease year by year, showing that with 100 in revenue, the company earns 14.31dongs In addition, when low after-tax profit indicates little profit in the last years, investors not receive high dividends Therefore, business managers must learn and come up with plans to improve business results Financial ratios analysis Year Ratio 2022 2021 2020 2019 IDP Liquidity 2,06 2,12 2.09 1.71 1,35 Current ratio 1.37 1,15 Quick ratio 1,7 1.72 1,74 Leverage ratios 50% 1,12 Debt to equity 48% 49% 44% 33% 0,53 Debt to total asset Coverage ratios 32% 33% 31% 117.580 34,90 Interest coverage Activity ratios 63.210 145.521 93.997 Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 Receivable turnover N/A 14,3 15,6 16,4 N/A Average collection period Payable turnover (PT) N/A 25,5 days 23,4 days 22,3 days N/A PT in days Inventory turnover N/A 9,35 9,34 7,6 N/A Total asset turnover Profitability ratios N/A 39,04 days 39,08 days 48,03 days N/A Gross profit margin Net profit margin 6,51 5,11 6,52 5,97 9,54 Return on investment Return on equity 1,24 1,14 1,23 1,26 1,58 2.1 Liquidity ratios 0,40 0,43 0,46 0,47 0,39 14% 17% 19% 19% 13% 18% 20% 23% 24% 21% 26% 30% 33% 35% 45% Year IDP Ratio 2022 2021 2020 2019 2022 Current ratio 2,06 2,12 2.09 1.71 1,35 Quick ratio 1,7 1.72 1,74 1.37 1,15 From 2019-2022, it is clear that the current ratio is always greater than and increasing, showing that businesses are operating effectively and are gradually recovering from Covid However, in 2021-2022, this coefficient has decreased slightly but not too significantly In general, the ability of enterprises to pay short-term debts meets the ability to pay short-term debts In addition, compared to International Dairy Joint Stock Company (IDP), Vinamilk's ability to pay short-term debts is better than IDP In general, the company's quick payment index is always greater than and increasing, specifically in 2019 it was 1.37 and has increased to 1.7 in 2022, indicating the higher the solvency of the business Compared to International Dairy Joint Stock Company (IDP), Vinamilk's quick payment ability is better than IDP 2.2 Leverage ratios Ratio Year IDP Debt to equity 2022 2021 2020 2019 2022 Debt to total asset 48% 49% 44% 50% 112% 32% 33% 31% 33% 53% The company's debt-to-equity ratio is in balance This index shows that the company knows how to borrow debt to business and save on tax payable costs, which was evident in Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 2019-2022 when the index level was close to 50% Compared to the International Dairy Joint Stock Company (IDP), the company's debt-to-equity ratio of 112% shows that the reputation of the business is higher when dong of equity of the company will borrow 1.12 dong However, this shows that IDP's default is much higher than Vinamilk's The company's debt-to-assets ratio is under control In 2019, 33% of corporate assets were from borrowing, in 2020, it decreased to 31% In 2022, although 32% is debt, in general, the company's equity is still high, it can be seen that the business has both financial autonomy and knows how to exploit financial leverage Compared to the International Dairy Joint Stock Company (IDP), the debt level of enterprises is quite high, accounting for 53%, which shows that businesses are facing an increasing level of risk 2.3 Coverage ratios Ratio Year IDP Interest coverage 2022 2022 2021 2020 2019 34,90 2.4 Activities ratios 63.210 117.580 145.521 93.997 Ratio Year IDP Receivable turnover 2022 2021 2020 2019 2022 Average collection period Payable turnover N/A 14,3 15,6 16,4 N/A Payable turnover in days Inventory turnover N/A 25,5 days 23,4 days 22,3 days N/A Total asset turnover N/A 9,35 9,34 7,6 N/A N/A 39,04 days 39,08 days 48,03 days N/A 6,51 5,11 6,52 5,97 9,54 1,24 1,14 1,23 1,26 1,58 In 2019, receivables turnover turned 16.4 rounds to generate revenue for the business In 2020 it turned 15.6 rounds, while in 2021 it turned 14.3 rounds We see that the receivables turnover tends to decrease year by year, indicating that the company is applying sell-to-bear policies, and the number of debt collection days increased from 22.3 days in 2019 to 25.5 days in 2021 Over the years, the company is more and more misappropriated capital than last year In 2019, payables turnover turned 7.6 rounds and tended to increase year by year In 2021, the payables turnover was 9.35 rounds, corresponding to 39.04 days, the company had to repay its Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 debts to suppliers, while in 2019, it was after 48.03 days that it was necessary to pay This shows that the company is under more pressure to repay its debts than in previous years In 2020, inventory turnover turned 6.52 rounds to generate revenue for the business In 2021 is 5.11 rounds decrease compared to 2020; but in 2022, we see an inventory turnover of 6.51 over the years, Vinamilk's efficient use of inventory Compared to International Dairy Corporation (IDP), in 2022 the inventory turnover was 9.54 rounds indicating that the company has also used the inventory very efficiently The company's total asset turnover is at a good level and is fixed, indicating that the company is investing in scaling up production for future growth Compared to International Dairy Corporation (IDP), in 2022, the company's Total asset turnover is quite high at 1.58 rounds, indicating that the company is on the rise and affirming its position in the market 2.5 Profiability ratios Year IDP Ratio 2022 2021 2020 2019 2022 Gross profit margin 0,40 0,43 0,46 0,47 0.39 Net profit margin Return on investment 14% 17% 19% 19% 13% Return on equity 18% 20% 23% 24% 21% 26% 30% 33% 35% 45% Vinamilk's gross profit margin is decreasing, specifically 0.47 in 2019, but by 2022 it has decreased to 0.4 This shows that the company's production and business activities are worse than previous years The net profit margin of the business is decreasing from 19% in 2019 to 14% in 2022 This shows that the consumption strategy of the enterprise as well as the ability to manage costs such as production costs, business management costs and selling costs are not effective The profit on total assets of the enterprise is decreasing, every 100 dongs of assets spent in 2019 generates 24 dongs of profit after tax, 2020 generates 23 dongs of profit after tax and 2022 generates 18 dongs of profit after tax The lower the efficiency of management and use of assets, the lower the profitability of the company Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 Like the above indicators, Vinamilk's ROE tends to decrease over the years from 2019 to 35% to 26% in 2022; equivalent to 100 dongs of equity only generates 26 dongs of profit after tax In general, the profit margins of Vinamilk and IDP Company are low, indicating that the company's production and business activities are worse than previous years Dupont analysis Vinamilk's ROE in 2022 was 26.1%, down 3.6% from the previous year of 29.7% However, only ROE cannot conclude that the company is not performing well, from the data, both ROA and Financial Leverage Multiplier parameters decreased as the reason for the decrease in ROE The 2022 ROA was 17.7%, which is 2.2% lower than 2021's 19.9% A decrease in the ROA index indicates a decrease in asset management and utilization efficiency, a decrease in the company's profitability; but in general, the ROE still shows that the business has a stable financial source Net Profit Margin decreased from 17.5% to 14.3%, down 3.2%; This shows that the consumption strategy of the business as well as the ability to manage costs such as production costs, business management costs and sales costs are not effective Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 Earnings Available for Common Stockholders decreased by 804,246 million, this is a bad sign because when dividends for Stockholders decrease, the value of corporate shares will go down more or less, affecting the position of enterprises in the market The parameters of cost of goods sold, operating expenses, Taxes, and Interest expenses increased, causing net sales to decrease by 962,918 million compared to the previous year Enterprises need to have policies to reduce costs and increase profits The Financial Leverage Multiplier did not fall much, from 1.49 to 1.48, a decrease of 0.01 This high parameter indicates an opportunity to increase the profitability of the company and expand its scale In addition, there are risks that can occur if businesses use leverage irrationally such as high-interest rates, increasing financial burden and may leading to losses In general, Vinamilk's operation situation is quite stable, high Return of Common Stockholders parameters increase competitiveness, and stable financial resources, the company is also using reasonable financial leverage; however, related costs need to be reduced to increase profitability for the business III CONCLUSION In general, through the analysis of Vinamilk's financial statements as well as related indicators, there are quite a lot of fluctuations and there are many comments that Vinamilk is really lacking growth momentum But on the other hand, Vinamilk's decline is completely normal because any business has its own development cycle and this is only a short-term slowdown In general, the company may face low liquidity risks because the reduced cash items and cash equivalents that the company currently applies a sell-to-bear policy expose the company to certain risks Along with that is the increase in the cost of raw materials as well as other influences that directly and indirectly affect the economy In addition, the operating expenses of the company are increasing, to generate a co-revenue the company costs more sales costs, financial costs Thus, the company needs to review agency policies and sales commission policies so that the growth rate of selling costs is in line with the growth rate of net revenue as well as adjust the control policy to be more reasonable Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com) lOMoARcPSD|38133502 Although the company's debt has decreased, it still accounts for a fairly high proportion; In particular, the company mainly uses trade credit capital from unpaid sellers to finance assets As for the capital part of the company, it shows that the company that operates profitably tends to be more financially autonomous In 2022, Vinamilk's profit before and after tax tends to decrease compared to the proportion of net revenue, which may be due to the fact that the company is not entitled to payment discounts because it did not pay suppliers early In addition, when low after-tax profit indicates little profit in the last years, investors not receive high dividends Therefore, business managers must learn and come up with plans to improve business results On the other hand, in recent years, Vinamilk has been doing very well in meaningful humanitarian actions with the community such as acting as the sole donor to the Reach Higher Vietnam Milk Fund program; School milk; The scholarship fund "Vinamilk - Nurturing Vietnamese young talents" and the million trees fund for Vietnam, every year, Vinamilk also donates VND 500 million to the Fund for poor patients to perform congenital heart surgeries for children In addition, Vinamilk also won titles such as being a company in the Top 50 Best Listed Companies of Forbes Vietnam for 10 consecutive years; 14 years of "National Dairy Brand" recognition; honored "World's 6th largest dairy brand" announced by Brand Finance, once awarded the Order of Independence 3rd class by the Chairman of the National Assembly of Vietnam to the company, Although in 2022, the company's business results are somewhat down, but with its titles and achievements, Vinamilk has always been the number one choice of Vietnamese people and increasingly positioned its brand in the international market Downloaded by minhnhat08 nguyen (nminhnhat.731@gmail.com)