saigon hotel corporation

Dong A Construction Investment and Trading Joint Stock CompanyII.. Saigon Hotel Corporation is a company based in Vietnam that operates in the hotel industry.. As of December 31, 2012, t

TRƯỜNG ĐẠI HỌC FPT - THÀNH PHỐ HỒ CHÍ MINH

REPORT GROUP ASSIGNMENT

ACC101- ACCOUNTING PRINCIPLES

FINANCIAL INDEX ANALYSIS

Class: ACC101_3W Group: No Idea

No Name of group member Student ID Contribution ( 100% )

TABLE OF CONTENT

I INTRODUCTION 3

1 Saigon Hotel Corporation

2 Dam Sen Water Park Corporation (DASECO)

3 Dong A Construction Investment and Trading Joint Stock Company

II DATA ANALYSIS _4

i Saigon Hotel Corporation

III GENERAL ASSESSMENTS _21

I CRITERIA FOR ABILITY TO PAY

II PERFORMANCE INDICATORS

III PROFITABILITY CRITERIA

IV THE INDEX REFLECTS THE FINANCIAL STRUCTURE AND ASSET STRUCTURE

IV APPENDIX _27

V REFERENCES _28

I INTRODUCTION

1 S aigon Hotel Corporation

- With a history of over 50 years, Saigon Hotel is a long-standing hotel in Ho Chi MinhCity Saigon Hotel Corporation is a company based in Vietnam that operates in the hotel industry

- The company manages a hotel in Ho Chi Minh City, Vietnam, to provide

accommodation and resort services for tourists

- The company also offers office space for rent, operates restaurants, and provides domestic and international travel services

- The company provides passenger transportation services by road, laundry services, karaoke services, massage services, and other entertainment services

- Additionally, the company is involved in the wine and tobacco business

2 Dam Sen Water Park Corporation (DASECO)

- Dam Sen Water Park Corporation is a Vietnam-based company that operates in the resort and entertainment industry The company engages in the business of Dam Sen Water Park, which includes a water park and a dinosaur park

- The company also operates two full-service restaurants and three fast-food restaurantswithin Dam Sen Water Park

- Other services provided include swimwear rental, photography services, and advertising services Additionally, the company sells souvenir items

- In the fiscal year ending on December 31, 2012, 72.29% of the company's revenue came from operating the water park and dinosaur park As of December 31, 2012, the company was an affiliate of Phu Tho Tourism Services Limited Liability Company

3 Dong A Construction Investment and Trading Joint Stock Company

- Dong A Construction Investment and Trading Joint Stock Company known as Dong

A Hotel Group Joint Stock Company is a company based in Vietnam primarily engaged in the hotel industry

- The main business activities of the company include operating accommodation establishments such as resorts and hotels, leasing offices, exhibition halls, conference venues, and tennis courts

- The company also manages restaurants, bars, and drinking establishments, as well as provides tour services

- Additionally, the company distributes goods through supermarkets and grocery stores,engages in wholesale and retail trade of construction materials, constructs commercialbuildings, and offers architectural services

II DATA ANALYSIS

i S aigon Hotel Corporation

Result: The fluctuation in the debt to assets ratio suggests a dynamic financial strategy by Saigon

Hotel A decreasing ratio may indicate a conservative financial approach, while an increasing ratio

could imply a more aggressive strategy with higher financial leverage It's important to consider

industry benchmarks and specific business circumstances when interpreting these changes

Additionally, monitoring trends in subsequent years can provide a more comprehensive understanding

of the company's financial management

financial performance over the years The drop in 2020 might ave been a challenging period, but the h

subsequent increase in 2022 is a positive sign Further analysis, such as understanding the factors

influencing these changes and comparing them with industry benchmarks, can provide a more

comprehensive assessment of Saigon Hotel's financial health

2.3 Gross margin ratio

Result:The significant drop in 2020 and subsequent recovery in 2022 warrant further investigation

into the factors influencing the cost structure, production efficiency, and overall financial health of

Saigon Hotel during these periods Understanding the reasons behind these changes can provide

valuable insights into the company's operational dynamics and strategic decisions

Result: Overall, the analysis of inventory turnover indicates fluctuations over the years, with the

highest turnover occurring in 2022 Understanding the reasons behind these changes, such as shifts in

consumer behavior, market dynamics, or supply chain improvements, can provide valuable insights

into Saigon Hotel's operational efficiency and adaptability to market conditions

2.5 Day's sale in inventory

Currency unit: VND

Result: Overall, the days' sales in inventory analysis highlights the efficiency of Saigon Hotel in

managing its inventory The decreasing trend from 2018 to 2019 indicates improved efficiency, and the subsequent fluctuations in the following years may be influenced by various external and internal factors It's essential to consider industry benchmarks and specific business circumstances when

interpreting these changes

2.6 Day's sale in uncollected

Result:In 2018, Saigon Hotel had an average collection period of 41.64 days, indicating the average

time it took to collect payments after a sale.The Days Sales Outstanding decreased slightly in 2019 to 39.055 days A lower DSO suggests a more efficient collection process, with the company collecting payments more quickly.In 2020, the DSO increased to 47.104 days, suggesting a longer average time

to collect payments This may be influenced by various factors such as changes in customer payment behavior or economic conditions.In 2022, the DSO decreased to 86.097 days, but it remains relatively high compared to previous years This suggests ongoing challenges in the collection process, and

further examination is needed

2.7 Accounts receivable turnover

Currency unit: VND

Result: Overall, the analysis of accounts receivable turnover suggests fluctuations over the years

The significant drop in 2020 and subsequent recovery in 2022 highlight the impact of external factors

on the company's ability to collect payments promptly Further investigation into the reasons behind these changes and potential adjustments in credit policies or collection strategies may provide

additional insights into Saigon Hotel's financial health

2.8 Total assets turnover

Result: The trend in current assets indicates overall growth, reflecting the company's ability to

maintain liquidity and potentially invest in short-term opportunities

2.10 Return on assets (ROA)

Result: The Return on Assets for Saigon Hotel experienced fluctuations over the years The

significant drop in 2020 followed by a recovery in 2022 indicates the impact of external factors on the

company's ability to generate profits from its assets Further analysis into the specific drivers behind

these changes can provide insights into the company's financial performance and strategic decisions

Result: There was a decline in 2020 and 2021, there was a subsequent recovery in 2022 Monitoring

quick assets is crucial for understanding a company's short-term liquidity and its ability to meet

immediate financial obligations

−2.27B

-Result: Times Interest Earned ratio is undefined in years where the interest expense is zero, as

division by zero is mathematically undefined Additionally, in 2022, the interest expense is negative, which is unusual

ii Dam Sen Water Park Corporation (DASECO)

Result: From 2018 to 2022, the company's total debt and total assets have both increased

The debt to assets ratio started at 0.04 in 2018, peaked at 0.10 in 2019, and after a slight

decrease in 2020 to 0.08, it increased again in the following years, reaching 0.11 in 2022

This indicates that the proportion of assets financed by debt has been generally increasing,

suggesting that the company may be taking on more debt relative to its assets over time

Result: The company's profit margin has fluctuated over the five-year period After a slight

decrease from 2018 to 2019, there was an increase in 2020, followed by a drop in 2021, and

then a significant increase in 2022 The highest profit margin in the given period is in 2022,

indicating that the company was able to convert a higher percentage of sales into profit in that

year compared to the previous years

2.3 Gross margin ratio

Currency unit: VND

Net sales 231.038.447.125 235.603.761.445 97.564.516.328 66.111.208.222 246.888.302.262

Cost of goods sold 75.807.775.655 84.322.261.407 33.210.465.520 26.823.434.857 80.412.109.756

Result: The company has maintained a relatively stable gross margin ratio over the period,

with minor fluctuations, suggesting consistent profitability in terms of the relationship

between sales and the cost of goods sold The year 2021 appears to have been more

challenging, with the lowest margin ratio of the period, but there was a recovery in 2022,

returning to the levels seen in 2018

Beginning inventory 843.178.824 834.992.568 745.000.740 590.583.121 650.950.339

Ending inventory 834.992.568 745.000.740 590.583.121 650.950.339 1.018.423.195

Average inventory 839.085.696 789.996.654 667.791.931 620.766.730 834.686.767

Inventory turnover 90,35 106,74 49,73 43,21 96,34

Result: The fluctuation in inventory turnover across these years could reflect changes in the

company's sales effectiveness, inventory management practices, or broader market

conditions The decrease in 2020 and 2021 might correspond to the global impact of the

COVID-19 pandemic on supply chains and consumer demand The rebound in 2022 suggests

a return to more normal operations and improved inventory management after navigating the

challenges of the previous years

2.5 Day's sale in inventory

Currency unit: VND

Ending inventory 834.992.568 745.000.740 590.583.121 650.950.339 1.018.423.195

Cost of goods sold 75.807.775.655 84.322.261.407 33.210.465.520 26.823.434.857 80.412.109.756

Day's sale in inventory 4,02 3,22 6,49 8,86 4,62

Result: The increase in the day's sales in inventory in 2020 and 2021 could correspond with

the effects of the COVID-19 pandemic on sales and supply chains, reflecting that the

inventory was turning over more slowly The improvement in 2022 might suggest that the

company has started to overcome these challenges and is moving inventory more quickly

Result: The data from 2020 and 2021 may reflect the extended payment terms or difficulties

faced by customers during the pandemic, while the 2022 figure suggests a return to or an

improvement upon the pre-pandemic collection efficiency

Result: The trend suggests that after a period of slower collections, the company has

potentially made effective changes in its credit and collections policies or is experiencing a

more favorable market condition that allows for quicker collection of receivables in 2022

2.8 Total assets turnover

Currency unit: VND

Net sales 231.038.447.125 235.603.761.445 97.564.516.328 66.111.208.222 246.888.302.262

Average total assets 253.536.112.892 269.996.977.193 250.127.368.378 212.465.461.829 242.022.484.048

Total assets turnover 0,91 0,87 0,39 0,31 1,02

Result: The trend suggests that after a couple of years of lower efficiency in using assets to

generate sales (which might have been influenced by the economic impact of the COVID-19 pandemic), the company has significantly improved in 2022, either through better asset

management, increased sales, or a combination of both

Result: The trend shows significant fluctuations in the company's liquidity position The

decrease in the current ratio in the last two reported years could be a point of attention for the company's financial management, as it suggests a tighter liquidity situation, which could

impact the company's ability to quickly mobilize resources in response to immediate financialneeds.

2.10 Return on assets (ROA)

Result: the data indicates fluctuations in the company's ROA over the years, with a

significant decline in 2020 followed by a recovery in 2022 It is essential to analyze the

underlying factors contributing to these changes and compare the company's ROA with

industry benchmarks to gain a comprehensive understanding of its financial performance

Additionally, considering other financial metrics and industry-specific factors can provide further insights into the company's overall financial health and efficiency

Result: the company has maintained a strong acid-test ratio throughout these years,

consistently staying well above the benchmark of 1, which is generally considered

satisfactory to cover current liabilities However, there is a noticeable downward trend,

particularly from 2020 to 2022 While the company remains in a good liquidity position, the decreasing trend could be a point of analysis for the company's financial management to

ensure that it maintains sufficient liquid assets relative to its short-term obligations

2.12 Times interest earned

Currency unit: VND

Operating income 120.132.909.119 119.669.364.939 47.850.333.677 28.645.559.340 135.746.328.075

Interest expense 2.000.000.000 0 126.003.017 (12.978.125) 1.727.261.811

Time interest earned 60,07 379,76 (2.207,22) 78,59

Result: The ratio in 2021 stands out as unusual and would typically prompt further

investigation to understand the negative interest expense reported Generally, a higher times interest earned ratio is favorable as it indicates that a company is more than capable of

meeting its interest obligations from its earnings

iii Dong A Construction Investment and Trading Joint Stock Company

1 OVERVIEW

Address: Room C301 3rd floor - Dong A Trade Center Building - No 668 - Phan Dinh

Phung Street - Group 7 - Ward Dong Quang - City Thai Nguyen - T Thai Nguyen

- Market Presence: The company has established a presence in the construction

industry, participating in various infrastructure and real estate projects within

Vietnam

- Financial Performance: Specific financial details, such as revenue, net income, and other financial metrics, would require up-to-date financial statements However, in general terms, the financial performance of Dong A Construction Investment and

Trading JSC might have been influenced by factors such as market demand, project success, economic conditions, and government policies affecting the construction and real estate sectors

- Strategic Initiatives: Companies in the construction and investment sector often focus

on strategic initiatives such as expanding project portfolios, enhancing operational efficiency, diversifying revenue streams, and maintaining healthy financial ratios to support growth

- Market Position: Within Vietnam's construction and investment landscape, Dong A Construction Investment and Trading JSC likely competes with other companies in similar sectors, striving to maintain or improve its market position through quality

projects, competitive pricing, and effective management