the financial ratios of four firms are examined in this report vinhomes phat dat khang dien and novaland

From there, compare companies, point out strengths and weaknesses, and need to be repaired.ProcedureSteps of evaluationFirstly, choosing 4 real estate companies to do the report, then we

Abstract

The financial ratios of four firms are examined in this report: Vinhomes, Phat Dat, Khang Dien, andNovaland We study and compare four firms by calculating and evaluating data from the company's auditedfinancial statements for the last three years 2019, 2020, and 2021 to discover the best company among thefour

Introduction

Real estate is a legal term, in which, in each country the concept of real estate is different and has itsown characteristics However, countries around the world still agree on the concept of real estate as thewhole land and the parts of property attached to the land The real estate sector is a major pillar in theeconomy of each country, closely related to investment and financial activities This is a project to researchand calculate financial statements of 4 real estate companies Vinhomes, Phat Dat, Khang Dien and NovaLand From there, compare companies, point out strengths and weaknesses, and need to be repaired

Procedure Steps of evaluation

Firstly, choosing 4 real estate companies to do the report, then we choose the index of the last 3 years tomake a report

Secondly, research the index in financial statements of each company, calculate indexes include : Grossmargin ratio, profit margin, return on assets, total asset turnover, current ratio, Acid-test ratio, time interestearned, debt-to asset, inventory turnover, day sales in inventory, account receivable turnover, day salesuncollected All these indexes were researched in CafeF and companies’ websites

Finally, we extract and create charts for each indexs of 4 companies and compare them to each other

Evaluation indexes

● The gross margin ratio is the proportion of each sales dollar remaining after a seller has accounted for the cost of the goods or services provided to a buyer

Gross profit / Net sales

● Profit margin gauges the degree to which a company or a business activity makes money, essentially by dividing income by revenues

Net income / Net sales

● The term return on assets (ROA) refers to a financial ratio that indicates how profitable a company is

in relation to its total assets

Net income / Total assets

● The asset turnover ratio measures the efficiency of a company's assets in generating revenue or sales

Net sales / Average total assets

● The current ratio is a liquidity ratio that measures a company’s ability to pay short-term obligations orthose due within one year

Current assets / Current liabilities

● The acid-test ratio (ATR), also commonly known as the quick ratio, measures the liquidity of a company by calculating how well current assets can cover current liabilities

Quick assets / current liabilities

● The times interest earned (TIE) ratio is a measure of a company's ability to meet its debt obligations based on its current income

Income before interest and taxes / Interest expense

● Debt-to-assets is a leverage ratio that defines the total amount of debt relative to assets owned by a company

Total debts / Total assets

● Inventory turnover is a financial ratio showing how many times a company has sold and replaced inventory during a given period

Cost of goods sold / Average inventory

● Accounts receivable turnover is the number of times per year that a business collects its average accounts receivable Accountants and analysts use accounts receivable turnover to measure how efficiently companies collect on the credit that they provide their customers

Ending inventory / Cost of goods sold

● Accounts receivable turnover provides a measure of how quickly creditable sales are converted to cash

Net sales / Average account receivable

● Days sales uncollected shows how long before the company receive cash receipts from credit sales

Accounts receivable / Net sales

Companies

● Vinhomes Corporation

● Phat Dat Real Estate Development Joint Stock Company

● Khang Dien Housing Investment and Trading Joint Stock Company

● No Va Real Estate Investment Group Joint Stock Company

Findings General information

Vinhomes

The largest developer of commercial real estate in Vietnam is Vinhomes Originally a Vingroupsubsidiary, the business was spun off in 2018 and a 10% interest was sold in an IPO Vinhomes, afterparent firm Vingroup, is now Vietnam's second-largest public business after the first trading day Vinhomeshas 16,000 hectares (62 sq mi) of land in Vietnam and develops houses throughout 40 cities Thecorporation is also one of the owners of Landmark 81, Vietnam's tallest structure

Phát Đạt

Phat Dat was founded in 2004 and has been listed on HOSE since 2010, making it one of the topreputed large real estate investors in Vietnam (Stock code: PDR) The company's land fund is currentlydispersed among numerous areas, including Ho Chi Minh City Quang Ngai, Binh Dinh, Phu Quoc, BinhDuong, Ho Chi Minh City, Ba Ria-Vung Tau One example of them is the chain of upscale apartmentbuildings with the names The EverRich, The EverRich Infinity, and Millenium in important markets City.Astral City, Nhon Hoi eco-tourism urban region, Phat Dat Bau Ca (Quang Ngai), and Ho Chi Minh City aresignificant urban projects (Binh Duong)

Khang Điền

After 20 years of development, Khang Dien Housing Trading & Investment Joint Stock Company (KhangDien) has evolved into a professional real estate developer with total assets of VND 13,934 billion, chartercapital of 5,786 billion, and a market consumption rate of nearly 100 percent The company is constantlyexpanding its land bank, diversifying its products, and expanding its collaboration with strategic partners.Khang Dien is now a prestigious brand that many shareholders, partners, and customers love and trust

Novaland

The Nova Group was founded on September 18, 1992 (formerly known as Thanh Nhon Trading Co.,Ltd.), and it specialises in the production and trade of veterinary and aquatic medicines as well as theconstruction of rental villas Companies were reorganised and combined into two organisations in 2007:ANOVA CORP and NOVALAND GROUP The Novaland Group, which has a total charter capital of VND5,962 billion, is one of the reputable businesses in the real estate investment and development sector at themoment

Khang Điền Gross profit 1,793,743,398,000 2,137,104,254,000 1,500,429,106,000

Net sales 3,738,367,541,000 4,532,068,519,000 2,813,353,428,000

● Phát Đạt

From the above table we can see that, within 3 years, the profit rate has increased from 38.76% to76.33% Because gross profit margin increases over the years, this business is profitable and efficient.From there, it can be seen that Phat Dat company is doing very well at work and has stable revenue

in all 4 years, which means it is not as effective as others in making profit from products

Among four companies, Phat Dat and Novaland are two companies to maintain the development during

3 year, and also to raise gross profit margin in 2020 despite the pandemic The growth rate of Novaland isslower than Phat Dat At the end of the period, Phat Dat had the highest index at 76.33%, much higher thanothers

● Phát Đạt

From 2019 to 2021, this index increased sharply from 26% to 51% Thereby, we can see that the margin

is increasing year by year, which means the higher the profit this product brings With each product over theyears, its profit tends to increase well, which means that the company is working effectively in general.Beside selling products, it also operates well in other activities

2019 and the lowest in four companies It failed to keep a balance of activities to make profit in general

For profit margin, Phat Dat is still the most optimistic one with a stable increase from the lowest to thehighest rate at the end of the period, surpassing Vinhomes, the highest one at the beginning On the otherhand, the profit situation of Novaland is unstable Vinhomes remain at a high and stable rate but show noincrease while Khàn Dien is not as profitable but also stable

● Phát Đạt

The return on asset formula was born to calculate the return on asset index - a good indicator in theapplication of assets from the business High and increasing ROA indicates more efficient use of assets.However, this index can be distorted due to depreciation or any other costs incurred The ROA of Phat Datcompany has increased from 6.26% to 9.05% and since then, this company is using their assets veryproperly

in 2021

In general, the indexes of all 3 companies Vinhomes, Phát Đạt, Khang Điền increased in 3 years, except Novaland As for Vinhomes, we can see that by the end of 2021, this index was set at 16.9%, up 3.8% over the same period last year, showing that the efficiency of asset exploitation to create assets of this business

is increasing

Total asset turnover

Vinhomes Net sales 84,985,606,000,000 71,546,737,000,000 51,626,931,000,000

Average Total Asset 222,921,424,000,000 206,283,702,500,000 158,464,892,233,849

Phát Đạt Net sales 3,620,224,205,834 3,911,211,875,460 3,400,186,013,955

Average Total Asset 18,084,684,262,336 14,789,434,517,440 12,509,402,845,343

Khang Điền Net sales 3,738,367,541,000 4,532,068,519,000 2,813,353,428,000

Average Total Asset 14,372,699,213,000 13,585,898,657,000 11,732,609,877,000

Novaland Net sales 14,902,759,885,713 5,026,358,409,438 10,930,983,111,920

Average Total Asset 173,184,946,310,036 117,257,794,116,271 79,550,684,771,850

● Vinhomes

The figures of total asset turnover index increased evenly from 2019 to 2021 Both net sales andaverage total assets also rise each period This indicates that the company is efficient at managing itsassets and turning them into profit and was at a stable stage with a steady enlargement

● Phát Đạt

This financial metric measures a company's ability to use its assets to generate revenue Through theabove we can see that the assets are being used by the company to maintain a moderate level of sales.However, these indexes tend to decrease from 0.27 to 0.20 year by year, it can be inferred that thecompany maintains a lot of assets or has not used assets well

● Khang Điền

In terms of total asset turnover, from 2019 to 2020, the figure increased slightly from 0.24 to 0.33, whichrose by 0.06 But in 2021, the figure declined by 0.07 at 0.26 Overall, both net sales and average totalassets increased each period

● Novaland

From 2019 to 2020, there was a decrease in total asset turnover index The figures fell from 0.14 to 0.04,which decreased by 0.10 In 2021, the figure increased to 0.09 In term of net sales, in 2020, decreased by5,904,624,702,482 VND at 5,026,358,409,438 VND and increased by 9,876,401,476,275 VND in 2021 at14,902,759,885,713 VND

Out of all four companies, only Vinhomes remained stable with a steady increase in the index for 3years Proving the efficient use of assets of Vinhomes, the business invests in reasonable assetprocurement plans compared to the other 3 companies

● Vinhomes

From 2019-2021, Vinhomes’s current assets decreased dramatically and so did the current liabilities.Therefore, the current ratio did not change too much The company has enough short-term assets to coverits short-term liabilities

● Phát Đạt

From 2019-2021, The current assets and current liabilities both increase dramatically, but currentliabilities grew faster than current assets As a result, the current ratio decreased Although the current ratiodecreased, the company is getting better because the current ratio in 2019 is 3,37 This means that thecompany might not be utilising its assets correctly This misuse of assets can present its own problems to acompany's financial well-being

● Khang Điền

From 2019-2021, current assets increased slightly, but the current liabilities decreased sharply, leading

to the increase of current ratio

● Novaland

From 2019-2021, Novaland’s current assets and current liabilities rose sharply, but current liabilities grewfaster than current assets Although its current ratio fell, that number was still higher than 3 This means thatthe company might not be utilising its assets correctly This misuse of assets can present its own problems

to a company's financial well-being

It should be noted, however, that there is no way to guarantee that a high current ratio also means thebusiness's finances are in good shape since the figure displayed on the financial accounts is merely anoverall figure Stock, long-term debt, prepayments to sellers, and inventory are likely to be included in thecompany's current assets As a result, enterprises must also pay back the capital they borrowed, which isalso considered one of their current assets The Current ratio should then be combined with other relevantindicators to best represent the company's financial position

It will be impossible to draw firm conclusions about the enterprise's short-term asset position basedsolely on the short-term solvency ratio As a result, the quick ratio indicator appeared to supplement thecurrent ratio

● Vinhome

The quick assets decrease slightly, while current liabilities decrease dramatically, leading to an increase

in Acid-test ratio, but it is still lower than 1 It indicates that there aren't enough liquid assets for thebusiness to satisfy its existing obligations This indicates to prospective investors that the business inquestion is not making enough money to cover its current obligations

● Phát Đạt

The quick assets increase slightly, while current liabilities increase dramatically, leading to an decrease

in Acid-test ratio This index was below 1, but it is now significantly lower This demonstrates how bad thingsare getting for the company, which is unable to pay its bills as they are due since it doesn't have enoughliquid assets

● Khang Điền

From 2019-2021, quick assets increased and current liabilities decreased sharply, leading to an increase

in Acid-test ratio, which is higher than 1 Therefore, the company has enough liquid assets to convert tocash to meet its current obligations

● Nova Land

The quick assets and current liabilities rose dramatically, but quick assets were faster than currentliabilities Therefore, the Acid-test ratio increased to 0,93, which is nearest to 1 It means that the companywas better off

Times interest earned

Vinhomes Income before interest

and taxes

29,745,694,000,000 36,516,837,000,000 48,182,977,000,000Interest expense 2,377,698,000,000 3,001,572,000,000 2,348,161,000,000

Phát Đạt Income before interest

and taxes

1,105,310,842,962 1,540,220,143,183 2,344,351,806,052

Novaland Income before interest

and taxes

4,272,235,676,472 4,649,022,346,311 5,086,223,164,450Interest expense 1,145,609,766,192 566,129,859,176 514,315,367,150

● Vinhomes

Income before interest increased steadily through years, but Times interest earned have a mitigationfrom 2019 to 2020 and then increase 63.4% due to high income before interest All three years 2019, 2020and 2021 have Time interest earned ratio more than 1 so that means companies had a good financialsituation