ANALYSIS OF GIA NGUYEN DECORATIVE MATERIAL JSC’S

FOREIGN TRADE UNIVERSITY FACULTY OF FINANCE & BANKING ֍֍֍֍֍ INTERNSHIP REPORT ANALYSIS OF GIA NGUYEN DECORATIVE MATERIAL JSC’S FINANCIAL RATIOS Hanoi, July 2014 CONTENTS LISTS OF CHARTS AND TABLES NAME OF CHART/ TABLE Table 1.1: List of Board of Directors Table 1.2: List of Founder Members Table 2.1: Main financial data of Gia Nguyen JSC from 2010 - 2013 Chart 2.1: Changes (%) in short-term debt, current assets and current ratio Table 2.2: Solvency ratios of Gia Nguyen JSC from 2010 - 2014 Table 2.3: Activity ratios of Gia Nguyen JSC from 2010 to 2013 Chart 2.2: GPM and OPM of the firm in four years Chart 2.3: ROE, ROA and Profit Margin ratios Dong Thi Khanh Hien dkhien.ftu@gmail.com ACKNOWLEDGEMENT First of all, I want to thank Nguyen Thi Thu Huyen, MSc for her guidance, help and support so that I can complete this report I also want to thank Gia Nguyen JSC’s board of director as well as employees, especially at financial – accounting division for facilitating and helping me in my internship period Dong Thi Khanh Hien dkhien.ftu@gmail.com INTRODUCTION Finance picture of a firm is a concern of not only owners itself but also investors, creditors, Government and employees Through financial statement, income statement, cash flow statement, it can be seen real condition of the company after a business cycle They can thereafter make decision to enhance its finance Financial analysis is an important task and by financial ratios we can take a financial figure and looking at it relative to another financial figure Financial ratios are tools to help with the interpretation of results and to allow for comparison to previous years, other companies and the industry sector Fundamental analysis and financial ratio analysis must form the basis of all investment decisions, because without knowing the true financial position of a company you are purely speculating Empirical and tested evidence suggests that fundamental and ratio analysis is a powerful ally in the hands of an active and savvy investor There are so many ratios that measure a company’s liquidity, solvency, profitability and activity Understanding these ratios will go a long way to providing you with an idea of how a company is performing in relation to key measures of business success Therefore, after an internship at Gia Nguyen Decorative Material JSC, I decided to choose the topic: “Analysis of Gia Nguyen Decorative Material JSC’s financial ratios” My goal is based on financial statement and real situation analysis through ratios to evaluate business effectiveness and to set forth recommendations for the company In my report: Chapter I: Overview of Gia Nguyen JSC Chapter II: Analysis of Gia Nguyen Decorative Material JSC’s financial ratios Chapter III: Recommendations and Solutions Dong Thi Khanh Hien dkhien.ftu@gmail.com CHAPTER I: OVERVIEW OF GIA NGUYEN JSC - Overview of the company Name of the company Name of company in Vietnamese: Công ty Cổ phần Vật liệu Hoàn thiện Gia - Nguyen Name of company in English: Gia Nguyen Decorative Material Joint Stock - Company Gia nguyen jsc, in accordance with corporate law, is a legal entity, 1.1 independently economic accounting, has its own account at bank and right 1.2 - to use company seal under provision of government’s regulations Main office: 408, Van Nam Building, No.26 Lang Street, Dong Da, Ha Noi Phone: (+84) 783 44 96 Fax: (+84) 783 44 95 Website: http://gianguyenjsc.com.vn/ Charter Capital and Equity Structure of Shareholders Charter Capital: 2,000,000,000 VND (2 billion VND) Par value: 10,000 VND Number of shares: 200,000 shares Table 1.1: List of Board of Directors No 1.3 Name Nguyen Ngoc Minh Position Director Experiences - Lawyer Nguyen Ngoc Chien CEO Ha Thi Cam Van Member Bachelor of Business Administration - 10 years in decorative material MBA Establishment and main business line Gia Nguyen Decorative Material Joint Stock Company was established in 2009, aiming to provide high-grade, intelligent and environmentally friendly decorative materials to Vietnam market along with satisfy modern demand Today, it has two head office in Ha Noi and Ho Chi Minh City Its main business line is supplying decorative services like raised floor, antistatic vinyl tile, vinyl tile, vinyl sheet, TOLI and suminoe Table 1.2: List of Founder Members No Name of Shareholders Type of shares Number of shares Value of shares Dong Thi Khanh Hien 1.4 - Nguyen Ngoc Chien Nguyen Ngoc Minh Ha Thi Cam Van dkhien.ftu@gmail.com Common Common Common 190,000 5,000 5,000 1,900,000,000 50,000,000 50,000,000 Administrative machinery Director: is the top manager of all operations, directly supervises divisions CEO: help director to supervise business and technical operations, save and improve capital efficiency, enhance work quality, ensure labour safety, seek new - partners and plan projects in business contracts Vice director: acting as an advisor for director about organizing managerial system, business activities, recruiting new employees, awarding, using and controlling company seal 1.5 Current situation of operating activities of Gia Nguyen JSC With professional, dynamic managers and engineer, Gia Nguyen has recently gained some first achievements Gia Nguyen has made continuous effort to become one of the most important partners in providing and executing for main-contractors such as Obayashi, Toda, Shimizu, Nakano, Nimatsu, Taisei, Vinata, TSI… The company was also granted distribution certificate by JECC, XIANGLI – Chinese leading manufacturer on raised floor; LONSEAL Corporation – Japanese company providing vinyl sheet and carpet; TOLI Corporation – Vinyl flooring and carpet maker from Japan; SUMINOE Corporation – high-class carpet manufacturer; NICHIAS – Japanese Raised Floor maker; LG, Hankuk – Vinyl manufacturer in Korea We are also the first to provide Calcium Silicate raised floor into Vietnam market Gia Nguyen has executed not only in number of big industrial project such as Honda, Yamaha, Canon, Yazaky, Tokyo, Tokyo stye, Kyocera, Hitachi Cable, Nitan… but also in some national vital project such as National Assembly House, Noi Bai Air Traffic Control Tower, Tan Son Nhat Air Traffic Control Tower, Ministry of Public Security headquarter, Keangnam Landmark Tower, in which the company are all highly appreciated by general contractors The core value of Gia Nguyen Decorative Material Joint Stock Company 2.1 Mission - Undertaking the main business line the firm registered Dong Thi Khanh Hien dkhien.ftu@gmail.com - Providing high-grade, intelligent and environmentally friendly decorative materials - to Vietnam market along with satisfy modern demand Serveing customers in the best way, bringing benefits for partners, and contributeing benefits to the community, enhancing the spiritual and material life - for staffs Building long-term relationships with partners, creating employees’ sustainable - loyalty and commitment with works In market mechanism, effectiveness is one of the most important goals of the company It has to undertake its political missions It has to create jobs for workers, - usually enhance professional skill, and improve efficiency and workers’ income Vision Building stronger and stronger brand of company Continuously looking for and bringing new decorative materials into Vietnamese - market Becoming one of the most important partners in providing and executing for main- - contractors Gia Nguyen is not only “a company” but also is a “solid partner” of main - contractors in projects Goals and objectives Creating and protecting the reputation and trading in accordance with the provisions - of current laws in Vietnam Always trying to ensure to provide goods and services with high quality for 2.2 2.3 partners - Always be responsible for Vietnamese environment and society Business performance in recent years Financial Statements (Attachment) include: - Balance Sheet Income Statement Cash-flow Statement (Source: Accounting Department of Gia Nguyen Decorative Material Joint Stock Company) Dong Thi Khanh Hien dkhien.ftu@gmail.com Dong Thi Khanh Hien dkhien.ftu@gmail.com CHAPTER II: ANALYSIS OF GIA NGUYEN DECORATIVE MATERIAL JSC’S FINANCIAL RATIOS General evaluation Gia Nguyen Decorative Material JSC is a private firm, so its equity mainly comes from shareholders Since main business is decorative material, working capital takes a large proportion in its capital structure Table 2.1: Main financial data of Gia Nguyen JSC from 2010 – 2013 (Unit of currency: VND) Year 2010 2011 2012 2013 21.002.916.64 Assets Current 7.656.670.963 10.729.772.192 15.760.080.858 20.296.609.47 assets Fixed 7.107.201.031 9.608.411.453 14.890.492.495 assets 433.577.159 1.051.063.051 813.787.684 683.160.668 18.886.874.34 Liabilities 5.727.345.554 8.670.126.219 13.723.010.442 Equity Working 1.929.325.409 2.059.645.973 2.037.070.416 2.116.042.297 capital 1.379.855.477 938.285.234 1.167.482.053 1.409.735.129 38.192.284.76 Sales Net 7.822.201.830 17.528.057.099 23.880.135.705 20.501.083 65.394.254 67.424.443 75.487.756 income In financial statement, it can be seen that in year, share capital is unchanged at bilions VND; changes in owner’s equity come from retained earnings In assets structure, current assets take large proportion, in 2013; they make up to 96.64% of total assets 10 Dong Thi Khanh Hien 3.2 dkhien.ftu@gmail.com Solvency ratios Table 2.2: Solvency ratios of Gia Nguyen JSC from 2010 - 2014 Year 2010 2011 2012 2013 D/E 2,97 4,21 6,74 8,93 D/A 0,75 0,81 0,87 0,90 IC 0,51 0,72 1,1 FL 3,97 5,21 7,74 9,93 D/E is quite high means that the firm depends on debt As explained before, because firm mostly invests in current assets, short – term debt increases As a constructive business, the portion of this kind of assets is high in total assets But this shows that the firm is lack of ability to finance itself, it cannot proactively meet its capital demands for production activities In the near future, this situation can be a financial instability Company should have resolutions to raise owner’s equity, and then it can ensure capital for all manufacturing and business operations on its own initiative and lower financial risk, stabilize company’s finance It also helps the firm operate more effectively in strong competitive market Small proportion of owner’s equity leads to dependence on customers and partner as well D/A also tend to increase and it is high D/A = 90% means that there are 90 VND in 100VND assets are financed by creditors This ratio indicates the liability of the firm to creditors Generally, creditors prefer moderate rate because the lower this ratio is, the higher debts are ensured under the circumstance of financial issue By contrast, this ratio is too high proves that the owners want profit to quickly rise but it bring about insolvency In 2010, this figure is 75% but in 2013, it increase to 90% This can be a disadvantage in gaining trust from creditors Therefore, board of directors should attach special importance to credit policies and investing in assets Financial leverage (FL) ratio shows the relationship between debt and owner’s equity; is an indicator of the company’s leverage used to finance the firm This ratio also helps to evaluate effect of borrowing to ROE FL ratio is large and tends to increase means that the firm has taken more and more on substantial debt merely to remain its business In 2010, FL ratio is 3.97 but in 2013, it increase by 2.5 times 15 Dong Thi Khanh Hien dkhien.ftu@gmail.com which is too high because the return on borrowed capital exceeds the cost of that capital This can puts the firm in jeopardy because the additional debt ratchets up interest costs and the deteriorating financial position Interest coverage ratio is used to determine how easily a company can pay interest on outstanding debt The lower the ratio, the more the company is burdened by debt expense Interest expense is going down while EBIT quickly rises In 2010 and 2011, interest coverage ratio below indicates the company is not generating sufficient revenues to satisfy interest expenses In 2013, it is over but its ability to meet interest expenses may be questionable However, this increase is considered as a good sign 3.3 Activity ratios Table 2.3: Activity ratios of Gia Nguyen JSC from 2010 to 2013 Year Receivables turnover Inventories Turnover Fixed Assets Turnover Assets Turnover 2011 2012 2013 5,72 3,49 7,54 2,81 14,74 2,79 23,61 1,91 25,61 1,8 51,03 2,08 Receivables turnover depends on buying-on-credit policy of the firm This ratio is higher and higher proves that capital is more and more effective and less tied up Sales increase dramatically while receivables are not stable Because most of its customers are trustworthy, company has no provision for doutful debts It also usually does business with old partners who make immediate payment However, company should care about this because if receivables turnover is too high, it will weaken its competitive advantage leads to lower revenue The higher inventories turnover is, the better business is evaluated because shorter time the goods are in warehouse makes quicker material rotation, lower capital demand for inventories compare to other firms in this industry with the same revenue, so lower financial risk However, if inventories turnover is too low, it 16 Dong Thi Khanh Hien dkhien.ftu@gmail.com cannot meet the demand and the next period contractions As can be seen in Table 2.3, inventory turnover declines annually, in 2011 it is 3.49 but in 2013 this number is 2.79 These figures indicate the irrationality between production and selling plans makes inventory increase Nevertheless, this result is quite normal for constructive companies but board of director still should reconsider their business operations Asset turnover ratio is an efficiency ratio tells how successfully the firm is using its assets to generate revenue In years, total asset turnover ratio is instable Asset turnovers are small figures, which proves that the company is not using its assets optimally It cannot generate more sales with fewer assets Meanwhile, fixed assets turnover ratio tends to rise because fixed assets declines 3.4 Profitability ratios There is no deduction so NPM = 100% GPM of the firm declines gradually by more than times in four years In 2010, it is 12.54% and in 2013, it is 6.13% proves that goods quality improvement and selling policies of the firm not have high effectiveness, and then reduce profitability On the other hand, compare to NPM, GPM is much lower due to high cost of goods sold In 2013, in every 100 VND of revenue, there are 6.13 VND of profit Revenue from sale rises rapidly while net profit decreases, company should have suitable manufacturing and selling strategies to improve its income OPM is too low in comparison with NPM resulting from high financial expense The firm is capital tied up makes its financial income much smaller than its financial expenses Another reason is high cost of management It increases by more than times in the past years 17 Dong Thi Khanh Hien dkhien.ftu@gmail.com Chart 2.2: GPM and OPM of the firm in four years Besides comparing profit to revenue to realize firm’s profitability, we compare profit to equity to consider that when invest 100 VND in equity, how much we gain ROE is used to compare stocks in the same industry The higher ROE is, the more efficiency the company uses it equity and the more attractive its stocks to investors For that reason, it is the most important goal of the firm’s financial management activities In years, company’s ROE continuously increase proves that owners’ profitability is higher and higher, which also shows that company’s shareholders are rewarded for their investment 18 Dong Thi Khanh Hien dkhien.ftu@gmail.com Chart 2.3: ROE, ROA and Profit Margin ratios The firm buys assets as equipment, warehouse, etc in order to conduct its business ROA gives how good the company is at using its assets to make money ROA represents net profit after tax on VND assets base It is the most important target of investors ROA ratio of the firm is not stable; it rises in 2011 but decreases in the next two years This is because undepreciated assets raise asset value, which reduces ROA In 2011, return on assets is 0.61% but in 2012 and 2013, it is 0.43% and 0.36% respectively due to higher speed of rising revenue than efficiency’s Managers always have to make policies, strategies to increase ROA, which also means increase profitability to the firm Profit Margin calculates how much of a company’s total sales flow through to the bottom line It has the same trend with ROA and very low It indicates that firm still finds it difficult to lower cost and raise profit 19 Dong Thi Khanh Hien dkhien.ftu@gmail.com General Evaluation Achievements 4.1 Despite being a newfounded company, Gia Nguyen JSC has step-by-step claimed its position in Vietnamese constructive market and created its own reputation There is a balance in types of assets Current assets make up more than 90% For a constructive company, it is suitable and it helps manufacturing activities effective Interest coverage ratio tends to rise as a result of lower interest expense and higher Earning before Interest and Taxes In these years, capital structure is improved, sales and profit increase because board of directors has many right resolution More and more good workers are hired Financial tasks are focused Return on equity increases Because this is the most important goal of shareholders, although it is still low, it is a good sign Besides trying to raise profit, BOD cares about their employees, which is shown in higher wages/ salaries and bonuses at Tet holiday or other special occasions Capital is more effective and less tied up Limitations 4.2 There are also many limitations: − Inventory takes a large proportion in current assets which is over than 50% and it is higher and higher (In 2013, it even reaches 82%) makes company’s quick ratio low − Receivables are reduced in 2013 proves that the company is not capital tied up by others However, trade receivables decline means sale volume also declines Because firm’s customers mostly are trustworthy, receivables are reliable, so decrease in receivables is not a good sign On the other hands, to examine how receivables affect firm’s financial situation, we must compare them to total current assets or total payables 20 Dong Thi Khanh Hien − dkhien.ftu@gmail.com Quick liquidity is too low As it can be seen, quick ratio is 0.16 This figure is considered very small In addition, quick ratio that declines dramatically creates difficulties in making payment − Short-term debts increase In 2010, it is 2,308,218,196 but in 2013, it is more than 11 million VND This causes negatively effects to the company because it has to pay interest expense appropriated from its earnings, as a result, its profit decreases In other hands, company’s owners’ equity is raised very little mostly by retained earnings This proves that its finance is not highly independent Therefore, company has to mobilize outside capital to finance current assets − Company has high insolvency because of large debts High interest expense is caused by short term debts Short term interest is higher than long term − Production and selling plans is irrational makes inventory increase − Company is not using its assets optimally shown by small asset turnovers − Low GPM is a result of high cost of goods sold OPM is too low due to high financial expense and high cost of management − ROE, ROA and profit margin of the firm are also low − Selling policies not bring high effectiveness, which lowers profitability CHAPTER III: SOLUTIONS AND RECOMMENDATIONS 21 Dong Thi Khanh Hien dkhien.ftu@gmail.com Based on Gia Nguyen Decorative Material JSC’s financial ratios analysis, it can be seen that despite continuous efforts, there still are some limitations in financial management affecting the efficiency of the firm’s business operations Here are my solutions to improve company’s financial capacity: Inventories management Company’s current ratio demonstrates a normal financial performance but quick ratio is so low The main reason is high inventories Because Gia Nguyen JSC mostly makes business with Japanese company, it has stable market with no big fluctuation, and does not trade seasonally Although company often monitors, analyses and evaluate reserve efficiency but it has not achieved expected result yet To raise capital turnover, firm needs to resolve this issue Based on type and value used per year, it can divide inventories into groups and make plans suitable with each of them Sometimes, lack of consistency results in buy more input than needs raise inventory The firm has to make obvious plans for specific project Firm has to balance the levels with sales velocity: have a strategy to release inventory based on its market conditions and set a strategy to liquidate old inventory When this policy is applied, current assets of the firm also decrease by the same quantity Improving quick ratio Quick ratio measures a company’s ability to meet its short-term obligations with its most liquid assets To improve this ratio, company needs to increase cash and cash equivalents 2.1 Cash management Firm should ensure a given amount of cash to make payment for short term debts almost at due Moreover, it should reserve for the ones which are not at due but can be demanded by creditors at unexpected time for some reasons It also should care about exchange rate because sometimes, it borrows from not only domestic but also foreign firms 2.2 Receivables management 22 Dong Thi Khanh Hien dkhien.ftu@gmail.com Another important type of current assets is Receivables Receivables of a firm are trade receivables and advances to suppliers The company should have a credit policy which is not much loosened to avoid tied-up capital but not much tightened to not affect selling conditions Therefore, for each business operations, firm should have specific credit policy, conformable current assets management mechanism to increase liquidity without affecting business results 2.3 Overhead costs management Overhead expenses including rent, advertising, indirect labor, indirect materials and professional fees, are indirect expenses that firm incur to operate the business outside of direct material and direct labor Lowering overhead costs has a direct impact on profitability Firm should assess its overhead costs and see if there are opportunities to decrease them For examples, for a constructive company like that, it does not need to hire an office in such an expensive place It can cut down transportation cost by finding the cheapest carrier and negotiate the price Besides, some costs and expenses could be saved such as administrative cost, guests cost, etc Improving financial independence Short-term debts increase, owner’s equity is raised very little mostly by retained earnings are two main reasons make company highly depend on outside capital To help it more independent, there are some capital sources should be considered: − Flexibly use and save temporarily dormant capital of fund which are drawn but not yet used − Payables which are not at due as taxes, wages, etc can finance the firm Their advantage is no interest but their disadvantage is time limit − Supplier’s capital tie-up: buying on credit is a popular method in today business Gia Nguyen is a small company, it is difficult to borrow from bank but it can buy on credit It should maximize this by making payment at the last day of discount duration If it is unable to so, pay at the maturity date on invoice It also should 23 Dong Thi Khanh Hien dkhien.ftu@gmail.com avoid delaying the deferred payments overdue because it can negatively affect company’s trustworthiness, position, relationship and even bearing very high credit fees which can be higher than short-term debt interest − Focus on specific source(s) policy should be concerned about Firm only focuses on one or few sources Advantage of this policy is lower mobilizing expense but makes it depend more on a creditor Optimizing assets As said before, there are some assets firm does not use because they not produce income for it There are also some assets used occasionally Firm should examine whether this occasional use justifies the expense of holding the asset and sell any fixed assets that not improve its bottom line on a regular basis On the other hand, firm could lease equipment to make up for the sold assets because leased equipment does not count as a fixed asset Changing selling policies In recent years, selling policies applied not bring high effectiveness, which lowers profitability Firm should apply rational selling-on-credit policy As said above, Gia Nguyen JSC mostly makes business with old partners, which helps it reduce the risk of doubtful debt but it also limit the ability to develop its business If firm accepts to sell-on-credit, it will have more new customers The disadvantage of this policy is that high tied-up capital forces it to borrow short-term debts to make up; financial expenses will be higher than financial income partly because of higher interest, partly due to higher cost of collecting debts Another disadvantage is slowing down capital turnover and run down working capital turnover However, this policy also increases firm’s revenue In this competitive market, selling-on-credit is an undeniable promotion technique of the seller to attract more customers and boost sales but firm should be careful when applies to continue all activities normally without great losses It should consider these aspects: 24 Dong Thi Khanh Hien dkhien.ftu@gmail.com − Terms and conditions: it depends on price, interest rate and maturity To reduce risk, maturity should be not too long The lower interest rate is, the more attractive to customers The price should higher than at sight payment − Profit margin: firm should calculate and compare profitability between with and without applying selling-on-credit policy based on profit target − Debt-collecting plan: firm has to prepare a debt-collecting plan to quickly retrieve tied-up capital It can assign this task to a specialized division and have specific method for every receipt Improve profitability As above analysis, GPM and OPM are low The main reason makes net profit margin very low is high cost of good sold To lowers this cost, firm should find other suppliers that can supply with cheaper price Offshore companies are the ones should be ordered It also can use assets over extended periods Other solutions To achieve its goals as well as improve finacial operation effectiveness, firm also needs other specific plans for business operations, human resources and administration 7.1 Improve financial analysis task Carrying out financial analysis well helps the company manage more and more effectively It should be done fully and should be detailed in capital mobilizing and efficiency; lowering cost plans situation; financial expenses; etc Financial statement should be drawn up periodically instead of annually Establish financial division specializes in this field because nowadays market is highly competitive To survive and develop, firms have to enhance quality of management Therefore, financial analysis is more and more important which forces firms to have well-trained employees with wide knowledge of characteristics of business, macroeconomics environment, government fiscal policy, taxation policy and fluctuation trend of domestic and foreign economy 25 Dong Thi Khanh Hien 7.2 dkhien.ftu@gmail.com Training employees Employee is one of the most important factors affect manufacturing and business efficiency of a firm Firm needs to prove their ability and boost their effort to reach the highest efficiency Therefore, it should have plans to train them Qualifications of workers are not the same, in general Gia Nguyen JSC has some resolutions to develop human resource such as assign some of them to take part in short-term specialized courses or in-service university There are many engineers but a few office staff are bachelors To enhance quality of employees, the company should: - Set up a budget for trainning and retraining for staffs - Encourage and support them to have opportunity to train themselves - Make a policy to high quality workers as promotion, higher salary, secondment to more suitable position, etc 7.3 Set short-term and long-term goals Firm should set goals and strategies both in the short and long term Its goals should be detailed on the hard issues securing sales volume, cost reduction, waste control, customer service, and pricing Short-range planning and budgeting for four quarters into the future and some project planning for perhaps as much as two years is enough; it should not bring out longer plans than that because they are really not worth the effort Development orientation In the next years, firm’s goals are gaining more profit and improving employees’ material lives In particular, these are some projects: - Fuji Xerox Vietnam Factory: aucoustic ceiling, free access floor, TOLI carpet tile Nipro Pharma Vietnam Factory: clean room panel, carpet tile, free access floor Hitachi Cable Factory Vietnam: aucoustic ceiling, vinyl sheet floor Canon 04A Factory: mineral fiber ceiling, antitastic vinyl floor Noi Bai Air Traffic control Tower: vinyl loose lay tile floor, Japanese TOLI THK Manufacturing Factory: mineral fiber ceiling , raised floor, rug 26 Dong Thi Khanh Hien dkhien.ftu@gmail.com CONCLUSION Financial analysis is part of financial management Vietnamese companies, at present, have to face many complicated problems such as market changes, strict competition between domestic and foreign firms Therefore, financial analysis is to evaluate financial position and then make right decisions Moreover, informations gain from this task is very useful for many entities in economy as investors, banks and credit institutions, etc Gia Nguyen Decorative Material JSC is newly established, so there are many mistakes in its financial operations In my opinion, it should focus more on financial analysis task to enhance financial and business efficiency and apply some recommendations which I think completely possible However, because of short time intermship and lack of real experiences, maybe I give subjective and theoretical ideas and my recommedations maybe not optimal choices I look forward to your opinions to better my report 27 Dong Thi Khanh Hien dkhien.ftu@gmail.com REFERENCES Charles H Gibson, 2013, Financial Reporting and Analysis, 11th edition, South- Western Cengage Learning, Mason Charles C Shinn, Jr., 25 Sure ways to improve profitability Pam Newman, 2007, ways to improve liquidity ratio, entrepreneur.com Website http://www.investopedia.com/ 28 Dong Thi Khanh Hien dkhien.ftu@gmail.com ATTACHMENT 29 ... success Therefore, after an internship at Gia Nguyen Decorative Material JSC, I decided to choose the topic: Analysis of Gia Nguyen Decorative Material JSC’s financial ratios” My goal is based... Name of the company Name of company in Vietnamese: Công ty Cổ phần Vật liệu Hoàn thiện Gia - Nguyen Name of company in English: Gia Nguyen Decorative Material Joint Stock - Company Gia nguyen. .. Department of Gia Nguyen Decorative Material Joint Stock Company) Dong Thi Khanh Hien dkhien.ftu@gmail.com Dong Thi Khanh Hien dkhien.ftu@gmail.com CHAPTER II: ANALYSIS OF GIA NGUYEN DECORATIVE MATERIAL