financial ration and financial analysis

It is clear that between 2020 and 2021, there is a significant increase in the ratio of profit after tax to total assets.. Although gross profit increased somewhat in 2019, it declined d

FPT UNIVERSITY GROUP FINAL PROJECT

Summer 2022

Course Details

Subject Code : ACC101

Lecturer’s Name : MR Vu Tung Linh

Assignment Details

Student’s Details :

Financial ration and financial analysis

Table of content

1 Abstract 2

2.Introduction 2

3 Analysis and assessment of three organization's financial statements 2

3.1VietNam arlines: 2

Introduction: 2

Analysis: 2

Conclusion: 2

3.2Vietravel: 2

Introduction: 2

Analysis: 3

Conclusion: 3

3.3VietJet air: 3

Introduction: 3

Analysis: 3

Conclusion: 3

Reference 3

1 Abstract

Analysis based on statistics, accounting data for the last 3 years 2019-2020-2021 with the transport industry, aviation of 3 companies: Vietnam Airline Vietjet, Vietravel Analyze

parameters to better understand the status of companies that have faced With collected data, the same comparative method

to clarify the values.

company's situation specifically

Companies with data are calculated based on the formula to objectively evaluate the figures, ROA, ROE, Debt, Tie, Acid Ratio, Day's Sales Uncollected.

3 Analysis and assessment of three organization's financial statements.

3.1VietNam arlines:

Introduction:

Vietnam Airlines has established its name as a symbol of Vietnamese national pride, with a global network and well-deserved position in the region, after 20 years of development at an average annual growth rate in the double digits Vietnam Airlines has emerged as the leader of the aviation industry in Vietnam The airline achieved a remarkable milestone in 2015 when it became

a joint-stock company The intimate ties that exist between Vietnam Airlines and our stockholders have been extremely important to the advancement of sustainable development

Vietnam Airlines is dedicated to working with shareholders, ensuring information is transparent and disclosed publicly, maintaining and improving communication with shareholders, and achieving an effective business operation based on balancing the interests of shareholders and the economic growth of Vietnam.

It is clear that between 2020 and 2021, there is a significant increase in the ratio of profit after tax to total assets Neglecting the effects of the epidemic, the rate rose from 3 percent in 2019 to 18 percent in 2020, then grew by 3 percent over the same period in the following year The expansion of Roa demonstrates how well assets from Vietnam Airlines are used

Even during the pandemic, VietNam Airlines was able to demonstrate exceptional financial strength thanks to the growth of this index ROA in

2020 is over 7.5 percent, specifically 18 percent, and will keep growing

in 2021 Giving investors a clear picture of the group's investment, as can be seen

• Gross profit margin

Cost of good sold 87260 47975 37930

When a company's gross profit margin has steadily dropped within three years, it is not good Due in part to the effects of the epidemic, it was difficult to produce much income, which resulted in a sharp decline in gross profit Although gross profit increased somewhat in 2019, it declined drastically between 2020 and 2021, falling by 29 percent in justone year and further falling to -36 percent

There is no doubting the income loss brought on by the ongoing epidemic, but this is also the general state of the transportation sector as

a whole

• Debt to asset ration

Total debt-to-assets ratios measure how much debt a company has overall in relation to its assets It is clear that Vietnam Airlines has a veryhigh debt-to-asset ratio; in 2019, it was 76%, and it progressively rose to90% in 2021 before continuing to rise to 99 percent

Since assets are equal to debt instead of equity in this ratio, it is feasible that the financial risk ratio for Vietnam Airlines is very high It will also

be challenging for investors to think about expanding or adding Vietnam Airlines because of the ratio, but it is clear that the majority of the company's assets are financed by equity and have a good rate of return

•Current ratio

demonstrating the company's strong ability to pay down short-term debts, demonstrating the efficient use of assets The company's short-term assets were enough to cover its short-term liabilities in 2019 The current ratio, which shows that Vietnam Airlines was no longer able to pay off all short-term loans, declined significantly in 2020 to only 0.25 and increased somewhat in 2021 to 0.27 as a result of the epidemic scenario.

Although this does not necessarily indicate insolvency, it does indicate that the financial standing of Vietnam Airlines has dramatically declined over the past three years

• Acid- test radio

The company's liquidity ratio has decreased over the last three years, which demonstrates how little it can pay its debts without liquidating its inventory It only got as high as 0.5 in 2019 before steadily dropping until 2021–2022, when it got as low as 0.2.

• Day’s sales uncollected

Account

receivable

As can be shown, Vietnam Airlines does not take very long to collect money with a low DSO within 2 years of 2019–2020, but this number steadily rises within 3 years It takes longer and longer for the

organization to clear the backlog as it increases to 52 by 2021

• Account receivable turnover

Average account receivable 8537 5667 2714.5

Account receivable turnover 11.61 7.19 10.35

In 2019- 2021, this coefficient has quite clear changes Reduce

approximately 4% And increased in 2021 to 10.35

• Total Asset Turnover

Conclusion:

Vietnam Airlines is essential to the nation's economic growth as passenger transport is the company's primary business It owns 70% of the low-cost airline Pacific Airlines and 100% of the regional airline Vietnam Air Service Company in southern Vietnam Additionally, the company generates income through a number of its subsidiaries, including Vietnam Airlines Engineering Company and Vietnam Airlines Caterers, from airline catering as well as from the repair and

refurbishment of aircraft The company is also trying to manufacture airplane components and has diversified its interests by adding the airport ground services and aircraft leasing sectors

3.2Vietravel:

Introduction:

+ Name: Transportation and Marketing Company under the Ministry of Transport

+ Industry: Tourism and marketing of transportation

+ Headquarters: 190 Pasteur, Ward 6, District 3, TP Ho Chi Minh

+ Operating area: Hanoi, Da Nang, Nha Trang, TP HCM, Can Tho, and Southeast Asia, USA, Europe

+ Service: domestic and foreign travel tours, tourism transportation, study abroad consultancy, labour export, ticket sales, foreign currency exchange.

Analysis:

growth asset 2.182.059.065.323 1.858.195.061.792 2.056.930.640.724 revenue 7.438.383.023.154 1.522.670.933.256 917.649.220.157 Net profit 39.031.414.312 111.271.116.938 349.860.929.258

compared to 2020, so it can be seen that the opportunity to develop and expand the fixed and temporary assets of Vietravel Airline

Compared to 2019-2020 because of the effect of the disease, the growth

in the company has almost no positive changes have been reduced -1.5

% in 2019 and continues to decrease in 77.5 % by 2020 Positive because the disease lasts Until 2021 was almost improved, the growth increased by 40% compared to the same period last year

Because the situation is not very positive, Vietravel Air has a huge net profit with a total net profit in 2020 to 1.8%, showing that the profit of Vietnam Air is extremely growing from 2020 to the next 2020 2021 continued to increase 0.3%

ProfitabilityGross profit margin 7.2% 14.2% -29.94%

Based on the financial statements, it is easy to recognize the Times Interest-Earning, Viet Travel is completely capable of paying the interestfrom the loan from the collected source But there is still a downturn between years In 2019, the figure was 238.7 but then decreased by 2020and continued to detain in 2021, showing the revenue of going down to lead to the ability to pay interest to other hybrids.

LiquidityCash and

It can be seen that Viet Travek's liquidity ratio is relatively high from 2019-2020, which increases by 1.7 from 1 to 2.7 within 1 year, although there is a disease But by 2022, the score was reduced sharply from 2.7

to only 0.3

The ratio shows the high liquidity mobilization of working assets to pay short -term loans of the business without selling inventory items However, in 2021, only 0.3 showed that liquidity was no longer high to pay short -term debts to investors.

It can be seen that Viet Travel's time mobilizes to pay short -term debts, cash equivalents and securities sold easily converted into cash in the short term Companies with a larger number of working assets will easily pay short -term debts when they are due not to sell long -term assets to generate revenue It can be seen that this value is extremely important to be more objective about the business

It can be seen that Viet Travel's Current Rated within 3 years

2019-2020-2021 is extremely high above 1 Since then, the short-term assets that thecompany currently has enough to pay off the short-term debt

Efficiency ratiosNet sale 7.431.875.831.23

7

1.517.566.857.339

912.725.792.985Account 750.312.580.000 85.751.157.748 1.190.323.822.17

receivable 9

COGS 6.944.690.819.70

1

1.365.174.828.849

1.187.898.148.423

Average

Value of

Inventory

40.477.193.572 40.902.503.100 385.092.971

DSO time recovery time is calculated by the average number of days that a company needs to recover the payment of goods after selling the goods It can be seen that Day’s Sales Uncollected of Viet Travel high shows that a company is selling most of its products to customers and takes more time to collect money This can lead to cash flow problems because the time from sales to the time the company receives quite long payments

Inventory rotation shows that the enterprise handled well or poorly in terms of inventory management This index brings many meanings and

benefits for managers in analyzing and defending the development trend

of the business This is also an visual evaluation channel for investors to check the current financial situation and future development ability of the business However, it can be seen that Viet Travel's index is not satisfactory when increasing in 2021 dramatically

Conclusion:

Covid-19 had a significant impact, causing Vietravel to lose close to 90 billion dong last year—more than double its profit for 2019 Disconnect the third-quarter loss due to the pandemic from the joint-stock

company's business operations The marketing and tourist sectors of Vietnam (Vietravel) continue to decline in the final three months of

2020, when the loss exceeds VND 16.3 billion Vietravel reported sales revenue and service provision of roughly VND 480 billion in the fourth quarter, down 67 percent from the same time in 2019 This is according

to the most recent financial filings, which have just been made public Billions, a 73.2 % decrease from 2019 In the last year, the travel agencyclosed its sales, business management, and other forms of expenses, but the financial cost, which was primarily In comparison to 2019, the loan interest climbed by more than 2.5 times, totaling more than 83 billion Due to this, Vietravel lost close to VND 90 billion in 2020, which is more than twice its profit for the entire year of 2019 Vietravel's total assets by the end of 2020 were over VND 1,940 billion, a decrease of over 268 billion from the year's commencement Liabilities of VND 1,730 billion and equity amounting to just under VND 184 billion make

up the capital source's reciprocal.If the market condition is stable, Vietravel's airline should start to turn a profit in the second year The financial statements of Vietravel for this aircraft project currently total roughly 61 billion dong About 200 pilots and flight attendants work for Vietravel Airlines The airline plans to expand its foreign operations and have 30 planes in the future, starting with ASEAN nations like Thailand and moving on to regions where it has an advantage, such the Middle East and Northeast Asia

3.3VietJet air:

Introduction:

Vietjet Air is the first airline in Vietnam operating under the new generation airline model, low cost, and provides a variety of services for customers to choose from The airline not only transports air but also provides the consumer needs of goods and services to customers throughadvanced e-commerce technology applications

Currently, Vietjet is operating a network of routes covering destinations

in Vietnam and more than 30 destinations in the region to Thailand, Singapore, Malaysia, Myanmar, Taiwan, Korea, China, Japan, and HongKong, operating a fleet of modern aircraft A320 and A321 with an average age of 3.3 years

Vietjet is an official member of the International Air Transport

Association (IATA) with the IOSA Operational Safety Certificate SafetyCulture is an important part of Vietjet's corporate culture, which is thoroughly understood from the leadership to each employee throughout the system

Because of the shot in 2019, the disease in 2020 has a sharp decline in profit in the total asset, from 2019-2021 to the caustic soda by 0% It can be seen that the level of property used in 2021 is extremely superior But it is a heavy field to achieve that number that can see the change in the fixed asset structure has changed a lot.

Gross Profit Margin

Cost of goods sold 44980 19632 14914

Overview, Vietnam Travel's decrease is extremely large, with the total percentage of the annual decrease per year from 2019 to 2021 It can be seen that the business has lost profitability

Debt To Asset Ratio

Based on the index, Viet Travel can see that the debt control of the company is extremely good With DEBT in 2019 is 69% and also maintains this figure in 2020 and in 2021 this figure will continue to keep into to 67%.It can be said that in 2019 and 2020, the total assets of the business are mainly funded by equity

Current Radio

It can be seen that Viet Travel's Current Rated within 3 years

2019-2020-2021 is extremely high above 1 Since then, the short-term assets that thecompany currently has enough to pay off the short-term debt

Gross Margin Radio

Net sales 50603 18220 12875

Cost of goods sold 44980 19632 14914

Gross Margin Radio 11% -8% -16%

Overview, Vietnam Travel's loss is extremely large, with the total percentage of the annual loss per year from 2019 to 2021 It can be seen that the business has bad profitability Has loss -16% in 2021

Day's Sales Uncollected

Account Receivable Turnover

Average Account Receivable 7933 7639 6737

Account Receivable Turnover 6.38 2.39 1.91

The above ratio shows that in 2019, receivables must rotate 6.38 times This means an average of: 360 (days) / 6.38 = 56.43 days for the company to collect the debt Compared to 2020 (2.39 times) and 2021 (1.91 times), 2019 is a high number, which shows that the company's collection of receivables is regular and effective A high accounts receivable turnover also indicates that the company has a high-quality customer base that is able to pay off their debts quickly In 2020, 2021-

2021 has a low number of times because Covid-19 delays everyone's jobs and jobs, causing delays in payments

Total Asset Turnover

Net Sales 50603 18220 12875

Total Average Assets 43972.5 47028 48425.5

Total Asset Turnover 1.15 0.58 0.27

With 1 USD invested in total assets, in 2019 Vietjet Air generated 1.15 USD in revenue, this is not a high number compared to Vietnam Airlinesand Vietravel Airline but it is a high number compared to the last 2 years : 2020 is 0.58 USD, 2021 is 0.27 USD This shows that the company is doing well, generating a lot of revenue and having a lot of money flowing in But due to the complicated activities of the Covid-19 epidemic, which made the transportation market difficult, international flights were completely banned in some countries, and domestic flights were also very limited during the day revenue is severely affected

Conclusion:

• Exploiting and developing a wide network of domestic, regional, and international routes