tiểu luận report analyze the financial statements of a company company vietnam milk joint stock company vinamilk

2.3 Cash flow statement...42.4 Retained earnings statement...6III.ANALYZE INCOME STATEMENT, BALANCE SHEETS AND CASH FLOW STATEMENT OF VINAMILK:...63.1 Analysis of balance sheet:...63.2 A

FOUNDATION OF BUSINESS

REPORT: ANALYZE THE FINANCIAL STATEMENTS OF A COMPANY

COMPANY: VIETNAM MILK JOINT STOCK COMPANY (VINAMILK)GROUP: 2, CLASS: 48K01.1

Group members: Trần Đặng Huệ BìnhLê Hoàn Thảo MiênTrần Lê NaNguyễn Phương LinhLê Thị Ánh Minh

Danang, May 2023

2.3 Cash flow statement 4

2.4 Retained earnings statement 6

III.ANALYZE INCOME STATEMENT, BALANCE SHEETS AND CASH FLOW STATEMENT OF VINAMILK: 6

3.1 Analysis of balance sheet: 6

3.2 Analysis of income statement: 11

3.3 Analysis of cash flow statement: 13

IV.IDENTIFY THE RELEVANT BETWEEN THE INCOME STATEMENT AND THE BALANCE SHEETS: 16

4.1 The similarities: 16

4.2 The differences: 17

V.ANALYZE FINANCIAL RATIOS: 18

5.1 Gross Profit Margin: 18

5.2 Debt-To-Equity Ratio (D/E): 19

5.3 Return on assets (ROA): 19

5.4 Return on Equity (ROE): 20

VI.APPENDIX 22

Vietnam Dairy Joint Stock Company (Vinamilk) is a Vietnam- based foodmanufacturer The company's primary business activities include the production,marketing, and distribution of dairy products, particularly milk in all its forms and otherproducts produced from it, as well as healthy food and non-alcoholic drinks Additionally,it offers farmers other technical assistance for breeding and growing operations, runs apolyclinic for medical treatment, and offers packaging and transportation services Thebusiness started out as the government-owned Southern Coffee - Dairy Company in 1976,changing its name to the Vietnam Dairy Company in 1993 Following its IPO on the HoChi Minh Stock Exchange in 2003, the business officially changed its name to VietnamDairy Products Joint Stock Company.

Vinamilk is a prominent company in Vietnam at the moment, reaching over 31countries and bringing in over 1.5 billion USD annually It also makes importantcontributions to the nation and its citizens Vinamilk is the first business from Vietnam toappear on Forbes Asia's list of the 200 Best Under A Billion, which recognizes 200 of theregion's best small and midsize businesses Vinamilk has grown into an economic successstory in the wake of Vietnam's decision to join the WTO after nearly 40 years ofdevelopment with policies that encourage the use of new technology and innovation.

Vinamilk desires to be one of the most favorite brands in every region andterritory Their business philosophy is "We keep in our mind and our heart that the qualityand innovation are always our most important companions We act with a customer-centered approach and commit to responding to all their needs" To preserve itsconsistently leading position in the local market and increase shareholder value, Vinamilkalso keeps expanding its current geographic reach and product line.

II UNDERSTAND FOUR TYPES OF FINANCIAL STATEMENTS: III.Balance sheet:

The balance sheet is an important document that details a company's assets,liabilities and shareholder equity Each component of the balance sheet breaks down likethis:

-Assets: Assets will include items like property, inventory, cash and all transactions

through a company's accounts receivable The assets will typically show up on theleft side of the balance sheet, while liabilities are listed on the right side of thedocument.

Report: Analyze the financial Statement of a company Group 2, 48K01.1

-Liabilities: Liabilities will include everything a company's accounts payable

tracks, including payments made on long-term loans, short-term loans, income taxand payroll and sales taxes.

-Shareholder equity: Shareholder equity is the company's owner's claim on the

assets after the company pays its liabilities The difference between a company'sassets and its liabilities will be the shareholders' equity.

o Businesses will use the balance sheet to give investors an idea of theirprofitability and business performance to secure investments and funding.

IV.Income statement

- The income statement records a company's net income or its net loss and is thedocument companies use to track all revenue coming in and all expenses goingout If a company's income statement shows that the expenses it paid for a giventime period were more than the revenue gained, the company will report a loss onthe income statement for that period.

- Typically, businesses and organizations report their net income or loss everyquarter, but many companies track their income statements every month Often, anincome statement will include various categories, depending on the nature of acompany's operations This financial information can include:

o Sales amounts: Sales revenue includes all net profits made from selling

products or services.

o Operating expenses: Operating expenses will include things like rent for

office space, marketing and advertising or the costs of running equipmentto produce goods or provide services.

o Non-operating expenses: Non-operating expenses include things like

one-time purchases (such as purchasing new office equipment) and interestcompanies accrue on borrowed funds.

- Businesses use this document for determining their overall operationalperformance over a given period of time Additionally, companies typically use theincome statement to determine which areas of their businesses are over or underbudget and plan future budgets according to the information on this document.

V.Cash flow statement

- The cash flow statement is the financial document that companies use to record allincoming cash flow from business operations and all outgoing cash flow for

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expenses and operational costs Essentially, the cash flow statement takes the netincome from the balance sheet and reconciles this into cash figures The cash flowstatement includes all aggregate financial data about the transactions that occurwithin a business The main elements that companies track within a cash flowstatement include:

o Net income:

The net income from the balance sheet represents the total amount in profitsa company makes after it deducts its expenses This will include revenue acompany makes but hasn't collected yet, expenses the company accrued buthasn't paid yet and other financial adjustments like depreciation.

o Operational cash flow

Operating cash flow is the difference between cash a company receives andcash a company pays out for expenses Operational cash flow can includethings like depreciation, accrued expenses and regular expense paymentsbusiness processes.

o Investment cash flow

If companies make regular payments to investment activity, the cash flowstatement will show it Investments include things like mergers, purchasesor sales of assets or dividends the company earns.

o Financing activities

Financing activities a company records on its cash flow statement includereceipts from venture capital, funding from outside investors or bank loans.

o Final cash amount

This section of the cash flow statement represents a company's actual cashvalue that it accrues by the end of the reporting period If this amount is apositive result, it represents profit If it's a negative amount, it represents aloss.

- A business or organization uses the cash flow statement when it wants to showcasehow well it manages its cash value or cash position This refers to how well thebusiness can generate revenue to pay off debt and fund operational expenses.Additionally, tracking incoming and outgoing cash flow gives companies insightinto their performance, liquidity and long-term ability to keep generating revenue.

VI.Retained earnings statement

- The statement of retained earnings details the changes in a company's earnings itholds onto after a specific time period This financial document reconciles thestarting and ending earnings, or profits, for the company's reporting period anduses net income and other financial information from the company's otherfinancial documents Additionally, this statement often details how the companyuses retained earnings and includes financial data such as:

o Beginning retained earnings: The beginning retained earnings are the

company's previous period's earnings and will show up on the balance sheetas shareholder equity.

o Adjustments: Adjustments reflect any changes the company makes to its

financial statements to correct overestimations or underestimations andchanges when a company receives tax benefits.

o Net income: The net income is the resulting value after companies pay

taxes, expenses and dividends.

o Dividends: Dividends represent a company's profits that owners, or

shareholders, collect from the company's assets.

o Ending retained earnings: Once these figures are calculated, the resulting

value is the ending retained earnings This value represents a company'sactual cash value at the end of the reporting period, and it will become thebeginning retained earnings value for the next reporting period.

- Companies use the statement of retained earnings in two ways: to calculate howmuch shareholders receive from profits and to gain insight into how shareholdersshould distribute these amounts For instance, a company's retained earningsstatement will show how much of their assets go to the company's owners(shareholders) The owners can then decide to invest in future projects or retain theearnings to distribute to shareholders.

Analyze Income Statement, Balance Sheets and Cash Flow Statement.

VII.ANALYZE INCOME STATEMENT, BALANCE SHEETS AND CASHFLOW STATEMENT OF VINAMILK:

VIII Analysis of balance sheet:VIII.1.1 Horizontal analysis:

Difference 2022 vs 2021

Criteria20212022Value (VND)ProportionI - SHORT-TERM

ASSETS 36,109,910,659,78531,560,382,174,201 4,549,528,485,584- -12.60%

1 Cash and cash

equivalents 2,348,551,874,3482,299,943,527,642-48,608,346,706-2.07%

2.Short-termfinancialinvestments

RESOURCES 53,332,403,438,21948,482,664,236,220 4,849,739,201,999- -9.09%

- In 2022, Net Revenue will increase thanks to the timely supply of goods in stockto the market, specifically in 2022, inventories are decreased by1,235,508,237,900 VND, equivalent to a decrease of 18.24% compared to 2021.Consumption of dairy products in the market in recent times will increase Inaddition, this also shows that the Company has built the right business plan andmarket research.

- Short-term receivables tend to increase over the years with the growth of Net Salesand account for a stable proportion in total short-term assets (specifically, in 2022,it increases by 4.78% compared to 2021) This shows the possibility that theCompany is selling many goods and products, has good growth in revenue and hasmore customers, however, the Company may be misappropriating capital fromcustomers, It is possible that in order to promote product consumption, theCompany must come up with policies to prolong the debt collection time with itspartners This can lead to the Company being slow to collect money and quicklyincurring debts that are difficult to recover.

VIII.1.2 Vertical analysis:

- Based on the table, we can see that the structure of short-term assets tends todecrease gradually (In 2021 it is 67.71%, in 2022 it is 65.10 %) while the structureof long-term assets increases (in 2021) is 32.29%, and in 2022 is 34.90%).- The proportion of short-term assets remained at a stable level, accounting for

>50% of the Company's total assets over the years In general, over the past twoyears, short-term assets accounted for the majority of the Company's assetstructure However, the proportion of long-term assets tends to increase, showingthat the company is oriented to invest in fixed assets and production lines Changes in the company's assets are caused by changes in asset items So to findout the reasons for the above increase and decrease, we will go into understanding

the fluctuations of asset items at Vinamilk Dairy Joint Stock Company, we willanalyze the influence of asset parts classified into two main categories as short-term assets and long-term assets:

- Short-term assets in 2022 will decrease by 4,549,528,485,584 VND compared to2021, corresponding to a decrease rate of 12.60%.

- The reason is that cash and cash equivalents in 2022 decreased by 48,608,346,706VND compared to 2021, corresponding to a decrease of 2.07% and other short-term assets in 2022 increased by 67,894,431,769 VND in 2021 compared to 2021by 48.32% increase

- Long-term assets in 2022 decreased compared to 2021 by 300,210,726,415 VND,equivalent to a decrease rate of 1.74% The reason is that fixed assets in 2022decreased compared to 2021 at 803,390,914,909 VND, corresponding to adecrease rate of 6.32 %.

- The item Fixed assets decreased compared to 2021, showing that the company isgradually buying, investing, and renewing machinery and equipment in 2022,indicating that the company is improving its competitiveness, focusing oninvestment on the quality of the product.

- Total assets in 2022 decreased by 4,849,739,201,999 VND, corresponding to adecrease of 9.09% compared to 2021 This shows that the scale of the businessstill tends to grow, production activities are still stable, but the output is still stable.The presence of domestic and foreign brands is threatening Vinamilk's revenue.

General comment: The dairy industry in Vietnam is very developed, which meansmore competition.

- In the period of 2021-2022, total capital tends to decrease Specifically, in2021: the company's total assets is 53,332,403,438,219 VND and in 2022 isdecreased to 48,482,664,236,220 VND.

- Looking at the table, we can see that, from 2021-2022, the structure ofliabilities and equity structure both decreased.

- Although owners' equity tends to decrease over the years, it still accounts forover 60% of total capital, which is always larger than liabilities The companyoperates mainly on an internal financial foundation, in addition, it has recently

been dependent on external funding sources Therefore, based on the analysisof the proportion of Liabilities and Equity, it shows that the enterprise isoperating based on simultaneously the capacity obtained by using the owner'sinvestment capital and the internal resources of the enterprise strong business.- Liabilities in 2022 decreased compared to 2021 by 1,816,143,307,700 VND,

corresponding to a reduction rate of 10.39% The reason is that short-term debtin 2022 decreased by 1,759,993,913,995 VND, corresponding to a decrease of10.31% compared to 2021 This shows that in this period the company is tryingto make the most of and exploit the benefits from sources of investment thanksto large financial leverage, appropriating capital of other enterprises to createbusiness advantages Short-term debt is a low-cost resource, if the companyknows how to use them to create a high-profit rate, this can be a premise andmotivation for the Company to break through, create outperform thecompetition.

- Equity in 2022 decreased compared to 2021 is 3,033,595,894,299 VND,corresponding to an increase of 8.46% The reason is that after-tax profit hasnot been distributed, in 2022, it decreased by 2,426,700,810,174 VND,equivalent to a decrease of 18.78% compared to the previous year.

- 2021 shows that the company has not performed well in business, and thecompany is not profitable.

- Total capital in 2022 decreased by 4,849,739,201,999 VND, corresponding to adecrease of 9.09% compared to 2021.

IX.Analysis of income statement:IX.1.1 Horizontal analysis:

Difference 2022 vs 2021

n1 Revenue 60,919,164,846,14

-2,381,069,985,600 -9.06%

4 Financial income 1,214,683,319,3941,379,904,407,740165,221,088,34613.60%

5 Financial expenses 202,338,232,232617,537,182,995415,198,950,763205.20%