Topic analysis of the financial situation of thanh thanh cong bien hoa joint stock company

UEH UNIVERSITY UEH COLLEGE OF BUSINESS SCHOOL OF MANAGEMENT UEH UEH UNIVERSITY TOPIC ANALYSIS OF THE FINANCIAL SITUATION OF THANH THANH CONG - BIEN HOA JOINT STOCK COMPANY Lecturer :

UEH UNIVERSITY UEH COLLEGE OF BUSINESS SCHOOL OF MANAGEMENT UEH UEH

UNIVERSITY

TOPIC ANALYSIS OF THE FINANCIAL SITUATION OF THANH THANH CONG - BIEN HOA JOINT STOCK COMPANY

Lecturer : Ph.D Trần Dương Sơn

Subject : Finance For Managers

Code : 23D1MANS502 13202

Ho Chi Minh City — June 14th, 2023

TABLE OF CONTENT CHAPTER 01 SUMMARY OF THE TOPIC — SIGNIFICANCE

CHAPTER 02 GENERAL INTRODUCTION TO THE COMPANY

2.1 Background of the sugar industry

2.3 History of formation and development

2.4 Share and shareholder information

CHAPTER 03 BASIS - METHODS

3.1 Theoretical basis

3.1.1 The concept of financial analysis

3.1.2 Purpose of Financial Statement Analysis

3.1.3 Scope of Financial Analysis

3.2 Methods of Financial Analysis

CHAPTER 04, FINANCIAL RATIOS

4.2.2 Receivables turnover and Days' sales in receivables

4.2.3 Fixed asset turnover

4.2.4 Total asset turnover (TAT)

4.3 Debt Management Ratios

4.3.1 Debt-to-Total Asset Ratio (D/A)

4.3.2 Debt-to-equity ratio (D/E)

4.3.3 Long-term debt to equity (LTD/E)

Interest coverage ratio

4.4.4 Return on equity (ROE)

4.5 The evaluation ratios from the market perspective

5.2 The balanced scorecard

CHAPTER 06 RISK ANALYSIS

6.1 Analysis of relevant ratios

6.1.1 Debt-to-equity ratio analysis

6.1.2 Debt-to-asset ratio analysis

6.1.3 Interest coverage analysis

6.1.4 Net profit margin analysis

6.2 Financial leverage analysis

6.2.1 Degree of Operating Leverage (DOL)

6.2.2 Degree of Financial Leverage (DFL)

6.2.3 Degree of Total Leverage (DTL)

CHAPTER 07 GROWTH ANALYSIS

CHAPTER 08, FORECASTING & FIRM EVALUATION

CHAPTER 01 SUMMARY OF THE TOPIC — SIGNIFICANCE

Businesses and organizations must scramble to stake out their positions and maximize their own inherent value in the face of an economy that is expanding quickly As a result,

it is important for firms to comprehend their current state as well as the outcomes of their commercial and production actions

Regular financial analysis will assist businesses in fully and accurately identifying the causes and effects of the information, as well as in seeing the present status of financial operations, production, and business results over the course of the firm Managers can have the most objective perspective, identify the relevant issues, possess the necessary skills, and be aware of any remaining constraints in the production and business processes thanks to financial analysis of their organizations At the same time, the analysis’ evaluation will make it easier to determine goals and business strategies that will be used

to provide the most obvious results From there, it is possible to evaluate the enterprise's potential, business and production efficiency, dangers, and future prospects in order to develop efficient solutions and decisions that will increase the enterprise's efficiency Being well aware of the importance of analyzing the financial situation for the development of the business, the team decided to analyze the financial situation of Thanh Thanh Cong - Bien Hoa jomt stock company Use the methods and information you learned to analyze business financial statements, including financial ratio analysis and assessing the enterprise's past, present, and future financial health In order to assist the company in realizing its potential for future growth and development, the team simultaneously examined the data from the financial statements and assessed the financial policies in light of the business decisions made by the company

CHAPTER 02, GENERAL INTRODUCTION TO THE COMPANY

2.1 Background of the sugar industry

Analysts predict that enterprises in the sugar industry would recover and reclaim their position by 2023 According to the International Sugar Organization's ([SO) research, the price of raw sugar is currently at its highest level in five years, since 2017 Furthermore, the impact of trade remedy measures such as measures against evasion of trade remedies, anti-dumping measures, and governmental countervailing has limited a substantial amount of imported cane sugar products Following taxation, the uncompetitive price of imported sugar will increase demand for locally produced sugar, and domestic sugar prices are projected to remain high

In particular, Vietcombank Securities Company, Ltd (VCBS) stated in the Sugar Industry Report for the first quarter of 2023 that the overall volume of imported sugar for the entire year 2022 has reduced by 12.6% year on year, with substitute import sources primarily coming from Australia and Indonesia

According to the Vietnam Sugarcane and Sugar Association (VSSA), Vietnam's domestic need for sugar is between 2.1 and 2.3 million tons per year, with local sugar production meeting only 33% of consumer demand Because domestic demand cannot be met due to poor production, Vietnam's sugar sector is significantly reliant on imported sugar This is both a challenge and an opportunity for domestic sugar producers to increase output

TTC AgriS (SBT) accomplished exceptional and remarkable accomplishments in the year 2021-2022, despite the turbulent environment in the globe and Vietnam SBT supplies approximately one million tons of finished sugar to local and foreign markets, maintaining its leadership position in the sugar sector with 46% of the domestic market share

TTC AgnS intends to extend the material area in Australia to 20,000 ha and to implement digital farming technology through the FRM (Farmer Relationship Management) platform through the sustainable agricultural development strategy for 2021-2025 The overarching goal is to increase the global material area to about 90,000

hectares and ensure an adequate supply of products to meet domestic and international market demands

2.2 General Introduction

2.2.1 About the company

Thanh Thanh Cong - Bien Hoa Joint Stock Company is a multinational corporation that was once a partnership between Group Bourbon, Union of Sugarcane II, and Tay Ninh Union of Sugarcane TTC AgriS aspires to maximize the entire value chain, which

is diversified and rich in potential to avoid negative consequences on the environment Besides, TTC AgriS has consistently accepted the "green" business approach as its core value throughout its more than five decades of operation, viewing it as its own identity towards a holistic value chain and establishing a sustainable competitive edge

TTC AgriS is a prominent agricultural firm in the local market, accounting for roughly half of the sugar sector in Vietnam In particular, TTC AgriS operates in the industrial business (B2B) and consumer business (B2C) sectors, with over 75 sugar product lines serving a variety of local client channels as well as more than 29 export countries

The Company's shares are listed on the Ho Chi Minh City Stock Exchange under License No 27/QD-SGDCKHCM was issued by the Ho Chi Minh City Stock Exchange

2.3 History of formation and development

TTC AgnS was founded on July 15, 1995 TTC AgriS aspires to be a sugar factory with cutting-edge technology and sophisticated equipment, with the main product being

RE Refined Sugar which meets European standards

In 2007, the enterprise was converted to a joint stock company

In 2008, TTC AgniS listed 44,824,172 SBT shares on the Ho Chi Minh City Stock Exchange (HOSE), representing 31.58% of total issued shares

In 2012 TTC AgnS completed the Affinage Project - Raw Sugar Dissolving Workshop

In 2013, the enterprise changed its name to Thanh Thanh Cong Tay Ninh Sugar Joint Stock Company and issued 6,574,200 ESOP shares

In 2015, the enterprise combined with Gia Lai Thermal Power Jomt Stock Company to become the largest Sugarcane enterprise listed on Vietnam's stock exchange

In 2016, TTC AgniS initially appeared in the VN30 Index basket and issued more than 9.1 million ESOP shares

In 2017, the Company completed the merger with Bien Hoa Sugar Jomt Stock Company and changed its name to Thanh Thanh Cong - Bien Hoa Joint Stock Company TTC AgiS completed the Corporation concept by centrally managing all TTC Sugar Business Units

In 2018, TTC AgriS began improving corporate governance by international standards TTC AgriS was also the first Vietnamese company to export sugar to the United States and has been named to HOSE's Top 20 Sustainable Development Index - VNSI

In 2019, TTC AgniS collaborated with ED&F Man Company, DEG, and BIDV to increase raw material sources and markets to Europe and Cambodia

In 2020, the first time TTC AgnS’s Sugar Consumption Output achieved | million tons

In 2021, TTC AgriS successfully deployed the Oracle Cloud ERP system for all 22 SBT units in four countries: Vietnam, Singapore, Laos, and Cambodia

In 2022, the TTC AgnS export market has grown to include more than 29 countries, and sugar consumption remained above one million tons Furthermore, TTC AgriS

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officially addressed the plan of bilateral agricultural development cooperation 4.0 with the Government of Queensland, Australia TTC AgnS has been the sole Sugarcane Enterprise

in the VNSI20 index basket for the past five years

2.4 Share and shareholder information

BASIC INFORMATION LISTED INFORMATION

Founded year 15/07/1995 Offer price (VND) | 30.000

Charter capital (VND) | 6.508 billion Last release date | 05/12/2022 Number of employees | 2.635 Listing volume 673.188.563

Table 2 Shares information of TTC AgriS TTC AgriS, a company under the industry code group ICB-3577, has been listed on the HSX since December 25, 2008, with the SIC code of SBT As of the last issuance date on December 5, 2022, the total number of TTC shares listed on the stock exchange is 673,188,563 shares TTC AgriS currently holds 33.73% of the shares of the group, of which the company's leadership owns 30.53% of the shares, and the rest is owned by domestic and foreign individuals, organizations, and shareholders outside holding 15.61%

Organizational structure and management:

TTC Bien Hoa has an organizational structure according to the principles of modern corporate governance as follows:

TOWARDS INTERNATIONAL STANDARDS Cae

THE ORGANIZATIONAL STRUCTURE ACCORDING TO KG 2

THE PRINCIPLES OF MODERN CORPORATE GOVERNANCE

ADOPTED BY TTC BIEN HOA

Figure 2.1 Organizational structure of TTC Bien Hoa JSC Administrative Council:

- Mrs, Huynh Bich Ngoc (Chairwoman)

- Mrs Dang Huynh Uc My (Vice Chairwoman of the Board of Directors)

- Mr Vo Tong Xuan (BOD Member)

CHAPTER 03 BASIS - METHODS

3.1 Theoretical basis

3.1.1 The concept of financial analysis

Financial analysis is the systematic application of scientific methodologies to evaluate a company's financial health The primary purpose of financial analysis is to examine an organization's viability and stability comprehensively by evaluating data and identifying relevant trends, ratios, and indicators It gives vital insights into the strengths and weaknesses of a company's financial status, allowing stakeholders to analyze risks, discover opportunities, and make strategic financial decisions Financial analysts can measure an entity's overall financial health by analyzing financial data to make mformed decisions and beneficial recommendations for improvement and growth

3.1.2 Purpose of Financial Statement Analysis

The goal of financial statement analysis might vary greatly depending on the intended audience Different stakeholders have different goals and employ financial statement analysis for different purposes:

- Investors: Investors examine financial statements to assess a company's financial health, growth potential, and overall performance The goal is to uncover appealing investment opportunities, evaluate prospective risks and returns, and make informed judgments

- Lenders: Lenders use financial statement analysis to determine borrowers’ creditworthiness and repayment capabilities

- Management: Management relies on financial statement analysis to evaluate financial performance and operations to make strategic decisions The goal is to increase profitability while also optimizing resource allocation and ensuring financial stability

- Internal stakeholders: Financial analysis assists those participating in the business in establishing solid employment positions and having confidence in devoting themselves to production and business activities that are in line with their given tasks

3.1.3 Scope of Financial Analysis

TTC AgriS has selected our team to conduct research and analysis of financial statements for the period of 2019-2022 Our analysis will use the data from the company's financial statements from 2019 to 2022 to ensure accuracy

3.2 Methods of Financial Analysis

Our team used a variety of analytical methodologies to obtain exact and specific conclusions when analyzing TTC AgriS's financial statements Each method produces various results and is used in different areas of analysis

Our team's principal strategy entails comparing and synthesizing actual data gathered from credible websites with the amounts indicated in financial statements This method helps us to derive useful insights and conclusions from the existing financial data

CHAPTER 04 FINANCIAL RATIOS

4.1 Liquidity

4.1.1 Overall ratio

The index reflects an enterprise's overall solvency during the reporting period This indicator reveals the number of times the company can cover its liabilities with the same amount of cash as its total assets

The firm can guarantee general liquidity if the indicator value "Overall ratio +†

consistently > 1 Conversely, if this value is < 1, the enterprise cannot guarantee its ability

to pay its debts The business becomes more insolvent the closer it goes near 1 If this number > 2, the company's solvency is extremely accurately reflected, although capital efficiency may not be high and financial leverage may be low Businesses will struggle to make a significant growth stride

Table 4.1 Overview of overall ratio analysis for the period 2019 — 2022

SBT OVERALL'S RATIO

2019 2020 2021 2022

Figure 4.1 The chart shows the overall ratio for the period 2019-2022

In general, the SBT company's overall ratio for the past four years 1s higher than 1, indicating that the business has sufficient financial resources to fulfill its debts This index climbed from 1.53 to 1.74 between 2019 and 2020, but it then steadily fell in the years that followed, reaching only 1.54 in 2022 This declining trend reflects a company's financial situation, which may be in trouble If this pattern continues, the business can be hit with more late fines or expensive interest costs as a result of late payments

We contrast SBT with rivals in order to obtain a more realistic picture The overall ratio is positive for all three companies In this case, SLS's index has nsen steadily over the years, and most of them are larger than 2, demonstrating the company's excellent ability to pay Additionally, the LSS's index was also very high and even reached 3.19 in

2020 Like the other two businesses, LSS consistently guarantees its capacity to pay off debt However, a ratio that is too high, indicates that the company's financial resources are not being utilized effectively or that the inventory is too huge, which prevents the inventory from being sold to generate revenue during market swings about sum up, SBT's financial condition is efficient despite having the lowest overall ratio of the two corporations The business must, however, take action to reverse the index's current downward trend

Company 2019 2020 2021 2022

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Overall SBT 1.53 1.74 1.67 1.54 ratio SLS 1.63 2.03 2.23 2.23

LSS 2.86 3.19 2.61 2.77

Table 4.1 Analysis of the overall ratios of the 3 companies period 2019-2022

Comparison the overall ratios of the 3 companies

This index gives the most accurate indication of how well assets that are anticipated

to be converted into cash will cover the claims of short-term creditors It is the most frequently employed indicator of short-term solvency The likelihood of insolvency rises

as the ratio gets closer to 0, indicating that the company will be less able to fulfill its obligations This ratio must be regularly monitored in order to spot potential financial hazards and take immediate action

A high current ratio can indicate that the business has a significant amount of capital locked up in non-productive assets like extra cash or marketable securities or maybe a lot

of inventory that could go out of date before it can be sold So, a high current ratio might not be desirable to shareholders

Formula: Current ratio = Current assets/Current liabilities

Table 4.2 Analysis of the Current ratio of TTC - Bien Hoa JSC from 2019 to 2022

Current ratio of SBT period 2019-2022

Comparison the current ratios of the 3

4.1.3 Quick Ratio (QR)

The quick ratio measures a company's ability to meet its short-term obligations using the assets that are most liquid and acts as an indicator of its short-term liquidity position Inventories are frequently the least liquid of a company's current assets As a result, it is critical to evaluate the company's ability to settle short-term loans irrespective

of inventory sales

A ratio greater than | indicates that a company has enough liquid assets to cover its liabilities straight away A quick ratio of less than 1, on the other hand, shows that the company is unlikely to repay its short-term loans without having to liquidate some of its larger assets

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Formula: Quick ratio = (Current assets — Inventories)/ Current liabilities

Current sect, | 9:794-108.835.254 | 10.030.796.116.425| 12.577.330.513.959/ 18.026.635.002.596 Inventories | 2.781.398.584.531 | 2.529.346.657.059 | 3.158.779.109.857 | 4.625.727.670.410 Short-term | 9 966 033,051.41 | 8.807.443.159.566 | 8.571.563.364.667 |15.294.959.798.595 liabilities

Quick ratio 0,78 0,85 1,10 0,88

Table 4.4 Analysis table of Quick ratio of TTC - Bien Hoa JSC from 2019 to 2022

Quick ratio of SBT period 2019-2022

Quick ratio

Company name 2019 2020 2021 SBT 0,78 0,85 1,10 0,88 SLS 0,34 0,69 0,73 0,55

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LSS 0,53 0,64 0,43 0,41 Table 4.5 Analysis of the Quick ratio of the 3 companies period 2019 to 2022

Comparison the quick ratios of the 3 companies period 2019 — 2022 1.20

4.1.4 Instant Ratio

It specifically establishes the ratio of a company's total cash and cash equivalents to its current liabilities The statistic evaluates the company's ability to pay down its short- term debt using cash or resources that can be swiftly converted to cash, such as easily traded securities This information can be used by creditors to decide the amount of money, if any, they are ready to loan a business

If this ratio is equal to one or above, it means that the company has enough cash on hand to pay down all short-term obligations simultaneously However, to fully and promptly satisfy short-term liabilities, very few organizations actually have enough cash and cash equivalents on hand Because having a significant cash balance indicates either

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poor cash flow efficiency or that the company is building up a sizable reserve of money to support future objectives

Formula: Cash ratio = (Cash + Cash equivalents)/ Current liabilities

2020 999.620.661.512

2021 1.823.297.113.682

2022 2.563.428.628.818

Table 4.6 Analysis table of Instant ratio of TTC - Bien Hoa JSC from 2019 to 2022

Instant ratio of SBT period 2019-2022

0.25

2019 2020 2021 2022

Figure 4.7 Chart showing the Instant ratio of TTC Bien Hoa JSC from 2019 to 2022 SBT's instant ratio from 2018 to 2021 showed a fluctuating trend with both gains and decreases, and it was consistently under 0.5 As a result, the corporation is unable to guarantee the quick repayment of all short-term loans However This is not a major issue High levels of cash and cash equivalents held by a company also indicate the company's ineffective use of this liquid asset Therefore, it is difficult to draw any conclusions about how the company will develop in the future or whether SBT would be vulnerable to failure and bankruptcy

Company name 2019

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2020 2021 2022

SLS 0,006 0,012 0,010 0,012 LSS 0,035 0,054 0,038 0,056 Table 4.7 Analysis of the Instant ratio of the 3 companies period 2019 to 2022

Instant

ratio

4,2, Assets Management Ratios

4.2.1 Inventory Turnover

This ratio is a financial ratio that demonstrates how frequently a company turns over its stock in relation to its cost of goods sold (COGS) over the course of a specific time period The number of days in the period - typically a fiscal year - can then be divided by the inventory turnover ratio to determine the average number of days it takes for a company to sell its inventory

A low ratio may suggest slow sales or overstocking, which 1s sometimes referred to

as surplus inventory It could be a result of poor marketing or a flaw in a retail chain's

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merchandising strategy A high ratio, on the other hand, suggests strong sales Alternatively, there may not be enough stock When it comes to problems, ensuring that a company has enough stock to support strong sales is better than having decreased inventory when business is slow

Formula: Inventory tumover ratio = Sales/Inventories

Ratio/Year

Inventory turnover 2,96 4,31 4,47 4,11

Table 4.8 Analysis table of Inventory turnover of TTC - Bien Hoa JSC from 2019 to 2022

Inventory turnover of SBT period 2019-2022

2019 2020 2021 2022

Figure 4.9 Chart showing the Inventory turnover of TTC Bien Hoa JSC from 2019 to 2022 With the exception of 2022, which saw a little decline, the data shows that Inventory turnover climbed steadily over the years starting in 2019 and reached 4.47 in 2021 This demonstrates how well the business is managing its inventory However, as each distinct industry will demand this index differently, it is vital to compare it to businesses in the same industry in order to judge how well this index performs As a result, we make comparisons with SLS and LSS

Company name

Table 4.9 Analysis of the Inventory turnover of the 3 companies period 2019 to 2022

Comparison the inventory turnover of the 3

it abruptly declined in 2022 from 4.5 to 3.21 The ineffective inventory management of SLS is demonstrated by this organization's Inventory Tumover, which is not excessively high and has been declining over time Thus, based on the trend of competitors in the same industry, we can say that SBT's inventory tumover is relatively high and the company needs to make plans to ensure this stability

4.2.2 Receivables turnover and Days' sales in receivables

The receivables turnover ratio measures the efficiency with which a company may collect on its receivables or the credit it extends to customers

A high ratio may indicate that a company's debt collection efforts are effective and that its customers are dependable and timely with their payments A low ratio may be caused by inadequate credit policies, ineffective collection tactics, or untrustworthy or creditworthy customers

Formula: Receivables tumover = Sales/ Accounts receivable

Day’s sale in receivables is a measurement that shows how long it usually takes a company to get paid for a transaction This index is typically computed on an annual, quarterly, or monthly schedule

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A high Day’s sale in receivables suggests that a company is probably experiencing payment delays, which could result in a cash flow problem A low ratio indicates quick payment to the company That money can be prudently invested back into the business Typically, a DSO of under 45 days is thought to be low

Formula: Day’s sale in receivables = 365 days / Receivables turnover

Ratio/Year 2019 2020 2021 2022 Accounts receivable turnover 5,90 9,46 12,10 9,89 Days' sales in receivables 61,91 38,56 30,16 36,90

Table 4.10 Analysis table of Accounts receivable turnover and Days' sales in receivables of TTC

- Bien Hoa JSC from 2019 to 2022 Accounts receivable turnover of SBT

period 2019-2022

2019 2020 2021 2022

Figure 4.11 Chart showing the Accounts receivable turnover of TTC Bien Hoa JSC from 2019

to 2022 SBT's Receivables turnover climbed steadily from 2019 to 2021, almost doubling from 5.9 to 12.1 in that time But in 2021-2022, this index fell to a minimal 9.89, which is insignificant shown encouraging indicators in recent years when it comes to business debt collection efforts

Days' sales in receivables of SBT period 2019-2022

70

50

2019 2020 2021 2022 Figure 4.12 Chart showing the Days' sales in receivables of TTC Bien Hoa JSC from 2019 to

2022 This demonstrates the importance of the fact that SBT's Days' Sales in Receivables also fell sharply, almost doubling in the years 2019 through 2021 from 62 to 30 days, only increasing by 6 days in 2022 It is clear that the company's credit policy, deferred payment policy, and debt recovery from clients are all reasonably effective The better the collection policy 1s, generally speaking, the greater the receivables turnover ratio and the shorter the average collection duration To draw meaningful conclusions, we must contrast these indicators with those of other companies in the same industry

Table 4.11 Analysis of the Accounts receivable turnover of the 3 companies period 2019 to 2022

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Comparison the Accounts receivable turnover

of the 3 companies period 2019 — 2022

2019 2020 2021 2022

Figure 4.13 Chart showing the Accounts receivable turnover of the 3 companies from 2019 to

2022 Competing businesses' receivables turnover ratios fluctuated during the course of the years from 2017 to 2021 The SLS index rose between 2019 and 2020 before dropping precipitously to 5.96 in 2022 In contrast, even if it varied regularly, LSS's index nevertheless appeared to be in good condition, higher than the rival two businesses

Company

name

SBT 61,91 38,56 30,16 36,90 Days’ sales in receivables SLS 47,31 38,85 78,16 61,29

LSS 29,24 25,46 26,41 29,19

Table 4.12 Analysis of the Days’ sales in receivables of the 3 companies period 2019 to 2022

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Comparison days' sales in receivables of the 3

4.2.3 Fixed asset turnover

The fixed asset turnover ratio (FAT) is frequently used by analysts to assess the efficiency of operations By comparing net sales (found on the income statement) to fixed assets (found on the balance sheet), this efficiency ratio evaluates a company's ability to produce net sales from its fixed-asset expenditures, notably property, plant, and equipment (PP&E)

A higher ratio indicates that the company's leadership is using its fixed assets more effectively A high FAT ratio does not reveal anything about a company's ability to generate steady earnings or cash flows

Formula: Fixed asset turnover = Sales/ non-current asset

Fixed asset turnover of SBT period 2019-2022 4.5

Company name SBT 2,40 3,02 3,68 4,34 Fixed asset SLS 1,54 1,71 1,27 1,49 turnover

Comparison fixed asset turnover of the 3 companies period 2019 — 2022

We contrast SBT with competing businesses to conduct a more detailed analysis The fixed asset turnover indicator for SLS was continually changing and typically had a very low value Although LSS also had an upward trend from 2019 to 2022, the values were still less than 2 In summary, SBT has consistently outperformed its rivals in terms

of fixed asset tumover In comparison to its rivals in the market, this is a positive indication of the company's efficient management of fixed assets

4.2.4, Total asset turnover (TAT)

The asset turnover ratio compares a company's sales or revenues to the value of its assets The asset turnover ratio may be employed to determine how well a company uses its assets to generate revenue

The more effectively a corporation uses its assets to generate revenue, the greater its asset tumover ratio On the other side, a company that has a low asset turnover ratio is not successfully using its assets to generate sales

Formula: Total asset turnover = Sales/ Total average assets

Total asset turnover of SBT period 2019-2022

Comparison total asset turnover of the 3 companies period 2019 — 2022 0.9

4,3 Debt Management Ratios

4.3.1 Debt-to-Total Asset Ratio (D/A)

D/A is a financial indicator that measures the extent to which a company has used debt to finance its assets

2021 12.232.594.239.837

2022 18.061.488.986.946

Debt-to-Total Asset Ratio of SBT period 2019-2022 0.66

2022 The debt-to-total assets ratio of Thanh Thanh Cong - Bien Hoa JSC is presented in the table from 2019 to 2022 The ratio showed volatility over this time frame In 2019, Thanh Thanh Cong - Bien Hoa JSC's debt-to-total assets ratio was 0.6524, implying that 65% of its total assets were financed by debt Then, the ratio fell to 0.5744 in 2020, indicating that 57% of its total assets were financed by debt In 2021, the ratio increased further to 0.5976 In 2022, the ratio continuously rose to 0.6513 indicating that 65% of Thanh Thanh Cong - Bien Hoa JSC's total assets were funded by debt Compare to 2019 the 2022's ratio fell to 0.0011 However, this is a cause for concern, suggesting that the company could face challenges in repaying its debt if it does not generate sufficient

revenue

Company 2021 2022 SBT 0,6524 0,5744 0,5976 0,6513 Debt to

Comparison Debt-to-Total Asset Ratio of the 3 companies period 2019 — 2022

of the other two companies This could be an unfavorable indicator as it suggests that TTC Bien Hoa may encounter challenges and face the risk of insolvency or bankruptcy However, from 2021 to 2022, the Debt-to-Asset Ratios of Son La Sugar JSC and Lam Son Sugar JSC gradually declined, indicating that both companies exhibit strong financial autonomy and have been successful in capitalizing on opportunities to generate profits for their shareholders by leveraging their partners’ capital

4.3.2 Debt-to-equity ratio (D/E)

D/E ratio is a financial metric that displays the proportion of equity and debt that is utilized to fund a company's assets

Formula: D/E = Debt/ Equity

kg 2019 2020 2021 2022 Debt | 10.924.103.440.168 | 10.313.417.423.502 | 12.232.594.239.83 | 18.061.488.986.946

7 Equit | 5.819.192.895.545 | 7.642.301360.410 | 8.238.305.009.422 | 9.668.879.045.641

Debt-to-Equity ratio of SBT period 2019-2022

2019 2020 2021 2022 Figure 4.21 Chart showing SBT's Debt-to-Equity ratio from 2019 to 2022

Thanh Thanh Cong - Bien Hoa JSC's debt-to-equity (D/E) ratio showed volatility in the period of 2019 - 2022, which indicates that the majority of the company's assets are financed through debt In 2020, there was a sharp decrease in the D/E ratio from 1.8773 to 1.3495, indicating that the company exhibits strong financial autonomy But after 2020, there was a sharp increase from 1.3495 to 1.8680 Overall, there was a light decrease of about 0.0093 Nevertheless, maintaining such a high level of debt can cause concern for the company

Comparison Debt-to-Equity ratio of the 3 companies period 2019 — 2022

4.3.3 Long-term debt to equity (LTD/E)

LTD/E ratio is a financial metric that indicates the amount of long-term debt in relation to the equity that is being utilized in a company's production and business activities

Formula: LTD/E = Long-term debt/ Equity

Year AI 2020 2021 2022 Long-term | 1.958.070.388.75 | 1.505.974.263.936 | 3.661.030.875.170| 2.766.529.188.351 liabilities 7

| LTD/E | 0.3365 0.1971 0.4444 | 0.2861

Table 4.22 Analysis of long-term debt-to-equity ratio of SBT from 2019 to 2022

Long-term debt to equity of SBT period 2019-2022 0.5

“healthy” parameter of a company, usually a LTD/E value below 0.5 is considered good

In conclusion, there is not a big problem with the ratios within this period

Company 2019 2020 2021 SBT 0.3365 0.1971 0.4444 0.2861 Long-term

Comparison Long-term debt to equity of the 3

4.3.4 Interest Coverage Ratio (ICR)

ICR is a financial metric that shows a company's ability to make interest payments and generate enough profits to pay off its debts during its operations It is an essential indicator of a company's financial stability and ability to manage its debt obligations The ICR measures the number of times a company's earnings can cover its interest expenses Formula: [CR = EBIT/Interest expenses

Net profit

before tax

2019 421.783.945.893

2020 512.359.717.149

2021 5.086.223.164.450

2022 5.086.223.164.450