group assignment subject principles of accounting analyse the 2021 and 2022 financial statements of kido group

• In 2021, BIBICA had an Inventory Turnover ratio of -7.27, also indicating that its cost of goods sold exceeded its average inventory balance, leading to a negative ratio.• In 2022, BIB

GROUP ASSIGNMENTSubject: Principles of Accounting Code: ACC101

Class: SAP1701 Lecturer: Tran Ngoc Chau Case Study: Analyse the 2021 and 2022

Financial Statements of KIDO group

Table of Contents

I.Overview:……… ….3

1.Finance and investment activities:……… 3

2.Vision – mission:……… 3

2.1.Vision – flavor your life:……… 3

2.2.Mission:……… 4

II.Quantitative:……… 4

1.Strengths:……… 4

1.1.Resources and finance:……… 4

1.2.Trading strategy:……… 5

1.3.Achieved many achievements:……… 6

1.4.Active social activity:……… 7

2.Weaknesses:……… 7

3.Recommendations to overcome weaknesses:……… 8

III.Financial ratio of KIDO in 2021-2022:……….9

1.Calculation of financial ratio:……….9

2.Analysis of performance through 2 years (2021-2022):……… 10

2.1.Liquidity and efficiency ratio:……… 10

2.Solvency ratio:……… 2 16 2.3.Profitability ratio:………19

IV.Recommendations:………23

V.References: ……….23

I Overview:

KIDO Corporation was established in 1993 and has become one of the leading Food

& Flavor companies in Vietnam In its 22-year history, KIDO Group has remained the market leader in confectionary across a wide array of products such as

confectionery, cookies and ice - cream under the KIDO brand name

In 2015, aiming to expand and develop into essential food, KIDO Group was officially established By promoting existing platforms, KIDO continues to maintain and develop its leading position in the frozen industry with Ice-Cream, Milk & Dairy products and expands its product portfolio to the food and beverage industry mainly with cooking oil, instant noodles, seasoning seeds, sauces, coffee, convenient packaged foods to take care of Vietnamese family kitchens and meet customers’ needs throughout the day

Currently, KIDO is leading the ice cream market with 43.5% market share (According

to Euromonitor) and over 30% market share in cooking oil (According to internal data)

1 Finance and investment activities:

Cash flows, investment strategies, capital mobilization, etc will be directly managed and controlled by the Group, ensuring effective cash flow, thereby generating profits for the Group in addition to main business production activities Accordingly, based

on the source of money and development needs at each time, the Group will continue to study the development of the market, look for opportunities for

cooperation, M&A, select and be willing to acquire potential companies and product categories to expand the Group's essential food portfolio, continuing to build a strong new category like the way the Group have successfully done for KIDO Foods (Ice cream business unit); Tuong An, KIDO Nha Be, Vocarimex (edible oil business unit) simultaneously have M&A strategies for other sectors in the essential food sector in each period At the same time, the Group continues to focus on monitoring and supervising to allocate appropriate investment capital for potential industries with good room for development, especially when combined with the existing system of the company The Group will bring outstanding financial performance

2 Vision – mission:

2.1 Vision – flavor your life:

Become the no.1 food corporation in vietnam and expand to southeast asia by

“flavoring your life” and “filling in vietnamese kitchen” with delicious products, safe and unique essential food

2.2 Mission:

Consumers

To identify and produce affordable food, snacks, beverages and to meet daily needs

of consumers Our products are pioneering market-leading, healthy, satisfying and conveniently available to our consumers

People

To nurture and develop the skills and capabilities of our people to meet the

professional demands of their work and satisfy their personal needs In this way we create a KIDO family that is home to dynamic, creative, and innovative people KIDO

is the company that can elevate an individual’s ambitions and professional skills, through a corporate culture based on teamwork and mutual enrichment

Communities

To contribute to the communities in which we operate through sponsorship programs and targeted community development activities We aim at becoming a leader of progress for Vietnamese society Our impact is not only commercial, we also embrace social responsibility

• Mondelez International, Inc., often stylized as Mondelēz, is an American

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Vietnamese consumers’s favorite brands M

after Mondelēz International completed the acquisition of 100% shares of Kinh

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Financial ratio of KIDO in 2021-2022:

Day’s Sales Outstanding

(Source: Consolidated Financial Report of KIDO in 2021 and 2022)

2 Analysis of the performance through 2 years (2021-2022):2.1 Liquidity and effeciency ratio:

Current Ratio = Current Assets / Current Liabilities:

• The Quick Ratio for BIBICA surged by 237.80% from 2021 to 2022, indicating

a significant enhancement in their ability to meet short-term obligations

Quick Ratio (Acid- Test ratio) = (Current Assets - Inventory) / Current Liabilities:

• The Quick Ratio for BIBICA surged by 237.80% from 2021 to 2022, indicating

a significant enhancement in their ability to meet short-term obligations

Inventory Turnover = Cost of Good Sold / Inventory:

in managing inventory efficiently

• In 2022, KIDO's Inventory Turnover ratio improved slightly to -4.36, but it remained negative

• The Inventory Turnover for KIDO increased by -4.30% from 2021 to 2022, which indicates a slight improvement in the company's inventory

management However, it's important to note that the ratio remains negative, suggesting that KIDO might still be struggling with inefficient inventory

turnover

• In 2021, BIBICA had an Inventory Turnover ratio of -7.27, also indicating that its cost of goods sold exceeded its average inventory balance, leading to a negative ratio

• In 2022, BIBICA's Inventory Turnover ratio improved significantly to -11.47, which is a more negative value, indicating slower inventory turnover

• The Inventory Turnover for BIBICA decreased by 57.70% from 2021 to 2022, which is a significant decline and suggests that BIBICA faced challenges in managing its inventory efficiently in 2022

Account Receivable Turnover = Net Sales / Account Receivable:

Account Receivable Turnover

• In 2022, KIDO's Account Receivable Turnover ratio improved to 4.56,

indicating a more efficient collection process

• The Account Receivable Turnover for KIDO increased by 5.90% from 2021 to

2022 This improvement is a positive sign, suggesting that KIDO was more effective in collecting payments from customers in 2022

• In 2021, BIBICA had an Account Receivable Turnover ratio of 3.92, indicating that it collected payments from customers about 3.92 times during the year

• In 2022, BIBICA's Account Receivable Turnover ratio significantly improved

to 8.24, which is a substantial increase in efficiency in collecting payments

• The Account Receivable Turnover for BIBICA increased by a remarkable 110.20% from 2021 to 2022 This is a highly positive change, indicating that BIBICA greatly enhanced its ability to collect payments from customers in 2022

Day’s Sales Outstanding = 365 Days / Account Receivable Turnover:

Day's Sales Outstanding

KIDO

Account receivable turnover 4,30 4,56

BIBICA

Account receivable turnover 3,92 8,24

KIDO:

• In 2021, KIDO had an Account Receivable Turnover ratio of 4.30, which means the company collected payments from customers approximately 4.30 times during the year This corresponds to an average DSO of 84.85 days in 2021

• In 2022, KIDO's Account Receivable Turnover ratio improved to 4.56, indicating more efficient collections, and the DSO decreased to an average of 80.09 days in 2022

• The decrease in DSO from 2021 to 2022 is a positive trend, suggesting that KIDO was able to collect payments from customers more quickly in 2022

• In 2021, BIBICA had an Account Receivable Turnover ratio of 3.92, with an average DSO of 93.12 days This indicates that it took BIBICA an average of 93.12 days to collect payments from customers in 2021

• In 2022, BIBICA's Account Receivable Turnover ratio significantly improved to 8.24, indicating a much more efficient collection process, and the DSO decreased to an average of 44.31 days in 2022

• The substantial decrease in DSO from 2021 to 2022 for BIBICA is a highly positive sign, showing that the company was able to collect payments from customers much more quickly in 2022

Total Assets Turnover = Net Sales / Total Assets:

Total Asset Turnover

• In 2022, KIDO's Total Asset Turnover ratio improved to 0.89, indicating increased efficiency in utilizing its assets for revenue generation The Total Asset Turnover for KIDO increased by 12.40% from 2021 to 2022, indicating that the company became more effective in generating sales from its assets

• In 2021, BIBICA had a Total Asset Turnover ratio of 0.69, which suggests the company generated $0.69 in net sales for every $1 of total average assets This indicates relatively lower efficiency in asset utilization for revenue generation in 2021

• In 2022, BIBICA's Total Asset Turnover ratio significantly improved to 0.92, showing a substantial increase in the efficiency of utilizing its assets for revenue generation

• The Total Asset Turnover for BIBICA increased by an impressive 34.80% from

2021 to 2022, indicating a significant enhancement in the company's ability to generate sales from its assets

2.2 Solvency Ratio:

Total Debt Ratio= Total Debt / Total Assets:

Total Debt Ratio

KIDO

Total debt/liabilities 7,178,062,904,992 6,952,065,052,069

Total average assets 13,210,930,357,090 14,038,749,118,398

BIBICA

Total debt/liabilities 658,073,870,149 487,056,290,781

Total average assets 1,591,320,156,270 1,744,957,954,550

KIDO:

• In 2021, KIDO had a Total Debt Ratio of 0.54, indicating that 54% of its total average assets were financed by debt or liabilities.This suggests that KIDO had a moderate level of debt relative to its assets

• In 2022, KIDO's Total Debt Ratio decreased to 0.50, showing that 50% of its total average assets were financed by debt

• The Total Debt Ratio for KIDO decreased by 9.70% from 2021 to 2022, indicating a reduction in the company's reliance

on debt to finance its assets This could be a positive sign as it may indicate improved financial stability and reduced financial risk

BIBICA:

• In 2021, BIBICA had a Total Debt Ratio of 0.41, which means that 41% of its total average assets were financed by debt or liabilities, indicating a relatively lower debt level compared to its assets

• In 2022, BIBICA's Total Debt Ratio significantly decreased to 0.28, suggesting that only 28% of its total average assets were financed by debt

• The Total Debt Ratio for BIBICA decreased by a substantial 48.20% from

2021 to 2022, indicating a significant reduction in the company's reliance on debt to finance its assets This is generally considered a positive trend, as it may lead to improved financial stability and reduced financial risk

Debt-to-Equity Ratio = Total Debt / Total Equity:

• In 2022, KIDO's Debt- -Equity Ratio improved to 0.99, meaning that the tocompany had less debt (0.99 times) than equity

• The Debt- -Equity Ratio for KIDO decreased by 5.60% from 2021 to 2022, toindicating a reduction in the company's financial leverage and a move towards

a more balanced capital structure

BIBICA:

• In 2021, BIBICA had a Debt- -Equity Ratio of 0.67, suggesting that the tocompany had more equity (0.67 times) than debt This indicates a relatively lower level of financial leverage

• In 2022, BIBICA's Debt- -Equity Ratio significantly decreased to 0.36, toshowing that the company had even less debt (0.36 times) compared to its equity

• The Debt- -Equity Ratio for BIBICA decreased by a substantial 87.70% from to

2021 to 2022, indicating a significant reduction in financial leverage and a shift towards a more equity-funded capital structure

Equity Ratio = Total Assets / Total Equity:

• In 2022, KIDO's Equity Ratio improved to 1.99, meaning that the company's equity accounted for an even higher proportion (1.99 times) of its total average assets.

• The Equity Ratio for KIDO increased by 3.90% from 2021 to 2022, indicating

a stronger equity position and a greater proportion of assets being funded by equity

BIBICA:

• In 2021, BIBICA had an Equity Ratio of 1.62, indicating that the company's total equity represented 1.62 times its total average assets.This suggests that

a considerable portion of BIBICA's assets was financed by equity

• In 2022, BIBICA's Equity Ratio decreased to 1.28, indicating that equity accounted for a lower proportion (1.28 times) of its total average assets.The Equity Ratio for BIBICA decreased by -21.10% from 2021 to 2022, suggesting a reduction in the proportion of assets funded by equity

2.3 Profitability Ratio:

Gross Profit Margin = (Net Sales - Cost of Good Sold) / Net Sales:

Gross Profit Margin

KIDO

Net sales 10,496,864,470,758 12,535,183,485,036 19.40%

Cost of good sold -8,445,849,542,191 -10,261,577,092,648 21.50%

BIBICA

Net sales 1,091,174,440,134 1,612,663,159,316 47.80%Cost of good sold -770,006,470,567 -1,135,991,686,092 47.50%

KIDO:

• In 2021, KIDO had a Gross Profit Margin of 1.80, which means the company retained $1.80 in profit for every $100 in net sales after accounting for the cost

of goods sold

• In 2022, KIDO's Gross Profit Margin slightly improved to 1.82, indicating that the company retained $1.82 in profit for every $100 in net sales.The Gross Profit Margin for KIDO increased by 0.80% from 2021 to 2022, showing a slight improvement in profitability.

BIBICA:

• In 2021, BIBICA had a Gross Profit Margin of 1.71, suggesting that the company retained $1.71 in profit for every $100 in net sales after accounting for the cost of goods sold

• In 2022, BIBICA's Gross Profit Margin decreased to 1.70, meaning that the company retained $1.70 in profit for every $100 in net sales.The Gross Profit Margin for BIBICA decreased by -0.10% from 2021 to 2022, indicating a slight decline in profitability

Net Profit Margin = Net Income / Net Sales:

Net Profit Margin

• In 2022, KIDO's Net Profit Margin decreased to 0.03, meaning that the company retained $0.03 in profit for every $100 in net sales The Net Profit Margin for KIDO increased by 108.20% from 2021 to 2022

• This change is unusual and suggests that the company's expenses or taxes may have decreased significantly in 2022, leading to a higher net profit margin

BIBICA:

• In 2021, BIBICA had a Net Profit Margin of 0.02, indicating that the company retained $0.02 in profit for every $100 in net sales after accounting for all expenses

• In 2022, BIBICA's Net Profit Margin increased to 0.12, meaning that the company retained $0.12 in profit for every $100 in net sales The Net Profit Margin for BIBICA increased by 82.80% from 2021 to 2022, suggesting a significant improvement in profitability in 2022, possibly due to lower

expenses or improved operational efficiency

Return on Assets (ROA) = Net Income / Total Assets: