Poor account receivable management at saigontourist cable television company ltd (SCTV)

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business TRAN VUN DAU POOR ACCOUNT RECEIVABLE MANAGEMENT AT SAIGONTOURIST CABLE TELEVISION COMPANY LTD (SCTV) MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2020 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business TRAN VUN DAU POOR ACCOUNT RECEIVABLE MANAGEMENT AT SAIGONTOURIST CABLE TELEVISION COMPANY LTD (SCTV) MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: Dr TRAN PHUONG THAO Ho Chi Minh City – Year 2020   2    TABLE OF CONTENTS EXECUTIVE SUMMARY Problem Context 1.1 Company Overview 1.2 Company’ symptoms: Low profitability compared to competitors 12 Problem Identification 14 2.1 Possible problem 15 2.1.1 High account receivable 15 2.1.2 Bad financial leverage 17 2.2 Main problem validation 21 2.2.1 Bad financial leverage 21 2.2.2 High account receivable 22 2.3 Problem definition and Consequences 24 2.3.1 Problem definition 24 2.3.2 Consequences 24 Cause validation 26 3.1 Possible causes 26 3.1.1 Conflict between sales and accounting department 26 3.1.2 Unfavorable economic situation 26 3.1.3 Lack of account receivable monitoring system 26 3.2 Main cause validation 27 3.2.1 Eliminating conflict and economic condition as the main problem 28 3.2.2 Lack of account receivable monitoring system as the main cause 30 Suggested Solution 34 4.1 Alternative solutions 34 4.2 Solution selection 38 4.3 Action plan in organization 39 Supporting information 39 Appendix 51 Reference 59   3    LIST OF FIGURES Figure 1: Organizational Structure Chart Figure 2: SCTV’ profit in the period from 2015 to 2018 Figure 3: Competitors and SCTV’s Return of assets Figure 4: Competitors and SCTV’s return of equity Figure 5: Day debtors of competitors and SCTV Figure 6: Leverage ratio of SCTV’s competitors Figure 7: Interest expenses over revenue of competitors and SCTV Figure 8: Initial map Figure 9: Cause and effect map Figure 10: Main Cause-Effect Tree Figure 11: Alternative Solutions 4    LIST OF TABLES Table 1: Net revenue, gross profit, profit before tax and net profit Table : SCTV’s Profitability ratio of SCTV in the period 2015 to 2018 Table 3: Receivables Turnover Ratio of SCTV, FOX and VNPT Table 4: Receivables on total assets of SCTV, FOX and VNPT Table 5: SCTV’s Provision for bad debt the period from 2015 to 2018 Table 6: Leverage ratios of SCTV from 2015 to 2018 Table 7: Leverage ratios of SCTV from 2015 to 2018 Table 8: SCTV’s leverage ratio in the period from Q1/2019 to Q3/2019 Table 9: SCTV’s Account receivable on total assets Table 10: Results of customer debt collection in February 2020 (target for 03/2020) Table 11: Results of customer debt collection in march 2020 (target for 04/2020) Table 12: Results of customer debt collection in april 2020 (target for 05/2020) Table 13: Estimated cost for software Table 14: Estimated cost for hiring Table 15: Action Plan 5    EXECUTIVE SUMMARY SCTV is a cable TV service enterprise in Vietnam The company provides services to customers and charges TV service fees Therefore, commercial credit affects the level of investment in assets and has a significant impact on a company's profitability and liquidity Trade credit improves sales for the company and can therefore be more profitable but overinvesting in receivables may be costly due to the increase in investment in existing assets It could signal the acceptance of deferred payment customers In the telecommunication services in general and SCTV in particular, account receivable management is a key factor This report showed that the account receivable management in SCTV will be impacted by many causes The causes we have found due to a part of lack of monitoring system, those are the support in solving receivable’s problem as well as reporting, tracking customer receivable, supporting staff, eliminate unnecessary information If the account receivable management in SCTV is better than in the past will improve costs and keep customers leading to higher profit margins, ROA and ROE ratios of the company will also be improved High account receivable at SCTV probably led to customer loss in the future and is considered as an urgent problem and the “Lack of account receivale monitoring system” is the main cause that needs to be solved immediately Some solutions have been made in order to gain more receivable of customers After considering some related things of two solutions like benefits, costs as well as the advantage or disadvantage, the best solution for SCTV in this case establish a receivable monitoring software system based on the advantage of low cost If the course is well-designed and get the expected result, it not only solves the whole problem of SCTV for all time of year but also can be applied to the other brand with the same problem 6    The project will begin in June, 2020 until the end of september, we expect the project will achieve the best results as desired Although, the time of researching, conducting and analysis is limited, the result of this report is that the lack of monitoring software system, this is a small contribution to improve receivable of SCTV 7    ACKNOWLEDGEMENT This thesis becomes a reality with the support and assistance of many individuals I want to send my sincere thanks to all of them First of all, I would like to express my gratitude and sincerely thanks my adviser, Dr Tran Phuong Thao for her guidance, imparting knowledge and expertise to my studies Special thanks to the members of SCTV company for cooperation, support and provide necessary information realated to this thesis My thanks and appreciation also came to my teammates who have collaborated with me to complete the thesis and my classmates who are ready to help me with their abilities Last but not least, thanks for my family who always support and encourage me to complete this thesis   8    Problem Context 1.1 Company Overview Saigontourist Cable Television Company (SCTV) with 51% equity of Vietnam Televison and 49% equity of Saigontourist SCTV provide services pay television, telecommunications, Research development and application of advanced technologies in the field of pay television, media and information technology Internet on television transmission system pay, advertisement, TV Online, Game SCTV is one of the leaders in cable television industry in Vietnam during 20 years build-up, development and broadcast nationwide At the end of year 2014, SCTV has become a market leader in Vietnam with more than 2,500,000 cable television subscribers, 500,000 digital cable television subscrib-ers, 300,000 Internet subscribers, 100,000 VoIP subscribers and 50,000 VoD/OTT subscribers The company has over 3200 employees including operating managers experts, engineers and many experienced staffs who have been contributing their enthusiasm, dynamic and creativeness to SCTV’s vision - 60% of editors, engineers, reporters who have postgraduate degrees of all staff employees - 10% of all staffs will be qualified for Master degrees The achievements that SCTV has achieved - Producing television program based on technology of data storage center - Applying and deploying the DOCSIS 3.0 technology to develop services of IP VOD, increasing speed of internet access twice - Launching VoD service, timeshift TV for types of display such as TV, LCD and Portable devices - Developing technologies G-PON, EPON for providing internet service to business firms - Developing information technology in managing and operating businesses - Upgrading SCTV cable network at Ho Chi Minh City to GHz in order to develop converged service and also building rigorous standard of cable network installation The company aims to following the below objectives - Focusing digitization and subterranean of television cable network 9    - Covering 100% television cable network in whole the provinces and cities of the central government with over million subscribers - Leading application of digital television technology - To keep leading in the paid television industry - Becoming the SCTV Group to diversify service in which telecommunication service and information technology is core value There are many premium services that provides such as Digital TV, 3D TV, DTH, Mobile TV, WebTV, OTT, objected-orient advertising, Home Shopping Internet, Leased Line, VoD, VoIP, Smart Home Networking, Game Online, GameTV, developing Software, training television human resource… SCTV is a strong driving force, continuing effort in order to be a leader of cable television industry in Vietnam As the premium service provider, all members of SCTV have to understand that satisfaction of every customer is our great pleasant and enthusiasm of SCTV’s development 10    A: As for the hotel business, what is the company based on? B: Hotel is classified according to the criteria of the state regulations because it relates to copyright of TV channels For example, 5-star SCTV hotel invested in Pullman Hotel, Sheraton Hotel, Ben Thanh Rex Hotel A: Does the sales department currently have a classification policy when installing new retail customers? B: Yes, at cable TV when customers need it will usually be installed quite easily because SCTV is running targets for the sales department However, according to company policy, there will also be classification of customers who have used SCTV's services For example, if they have had previous debt history, if the customer has just stopped using the service months ago, SCTV will not allow for new installation but only have the subscriber resumed for continued use A: Thank you for spending time with me B: You’re welcome Interview Financial Manager – Ms Tran Thi Minh Hieu A: Currently, I come from a research student group I know that you are currently managing SCTV's finance Can I ask you some questions about financial issues? B: Yes, certainly A: What you think about leverage? B: Debt leverage is a measure of whether a capital appears in the form of debt or assesses a company's ability to meet its financial obligations Too high a company's debt can make it difficult for a company However, if a company's operation can generate a higher return than the interest rate for its loans, then the debt can help spur growth A: How you assess the current level of debt of SCTV? B: Over the years, the debt-to-equity ratio of SCTV was high, show that SCTV actively financed its growth with debt However, this income is not stable due to high interest expenses 46    A: According to financial management experience, how much should SCTV keep Notes payable-to-equity ratio? B: Over the years, this ratio should be below 80% is reasonable A: In your opinion, are some reasons for the Notes payable-to-equity ratio higher than 100% at the current company? B: The underground power grid and communications cables led to the company having to borrow to fund underground projects SCTV is a limited liability company with only shareholders so funding is mainly from bank loans to invest, in addition there are many projects that need to be implemented to expand investment for customers but completely from bank loans However, we recently recognize negative effects of the financial leverage on our company Therefore, we are trying to manage the debt ratios by Reduce debts at commercial banks, Restructuring high-interest debts A: Currently, according to the chief accountant and vice president of business, the debt of SCTV is currently very high, leading to risks for SCTV What is your opinion? B: Currently, account receivable a big problem for SCTV, increase account receivable will lead to lack of cash to pay for business expenses However, in SCTV, it will lead to a lot of effects on revenue and costs, but further away is the loss of customers, customers will switch to other service firms because of the big competition currently A: With urgent issues like now, you think that priority should be solve to accounts receivable or to reduce leverage? B: The issue of reducing the leverage ratio of SCTV depends very much on the business situation of SCTV because when cash flow from customers means that account receivable to be lowered, SCTV will have enough money to pay for banks In addition, there is a way to issue an increase share capital of equity to reduce leverage ratio, but this is very difficult, because SCTV is currently owned by the state, so the submission of the plan to change the business model as well as issuance to increase capital will take a long time A: How you assess the current economic situation impact on SCTV? B: The situation of the economic situation is complicated, at present, the forecasting and analysis departments are making efforts to forecast making recommendations to prevent risks But this is difficult, the company can not control it all 47    A: Mr Thong want to build a new software system to support receivables monitoring, how would you assess this proposal? B: Building a software add-on is suitable for now, because the cost is not high and the company can now hire another unit to build a new system management software will help you keep track of transactions and how business resources are being used A: Thank you for spending time with me B: You’re welcome Interview Mr Huy is head of sale department A: Currently, I come from a research student group I know that you are currently Head of Sale Department Can I ask you some questions about managing account receivables issues? B: Yes, certainly A: For customers who owe subscription fees, how you handle? B: In the period of collecting television subscription fee, the staff will go to the customer's house to collect and remind customers A: If fee is not collected, how will it affect SCTV? B: In the current situation, the issue of managing account receivables is currently very difficult for Ho Chi Minh City When receivable from customers more than months, it is compulsory to stop providing services to customers Using cable television network and internet is an essential demand, customers will switch to use other competitors such as VNPT, FPT, Viettel A major problem in the Sales department is that receivables from customer will greatly affect the salaries of the employees who collect subscription A: Any solution to solve the above problem? B: Now needs to have more people to supervise the additional receivables, currently the District sales department has only 24 employees, the counters are people, the collection team money of people, installation team of people, customer maintenance team of employees, office 48    staff of people and head of office is person, many jobs lead to the fact that there is no supervisor to collect customers A: Thank you for spending time with me B: You’re welcome Interview Ms Van head of Human resources department A: Currently, I come from a research student group I know that you are currently Head of HR Department Can I ask you some questions about managing account receivable related to HR in SCTV? B: Yes, certainly A: How SCTV employees earn income? B: Office workers will usually pay fixed wages, collection staff, Maintenance and Installation staff will pay wages in the form of contractual wages A: When customers stop using service, will it affect employee salaries? B: If customers switch to competitors or stop using SCTV services, it will greatly affect employees, as the company sets planned targets such as: New customers installments, customer receivables, revenue, profit In the current period, the criteria to receivable customers is the most important criterion in evaluating employee bonuses A: According to Mr Huy, Sale department is lack of supervisor receivable, does Huy report to the human resources department? B: Yes, I have received Huy's suggestion on this issue However, according to the company's regulations, the number of customers per employee in each area A: Can the company change its policy? B: This is very difficult, because it must be submitted to the board of directors and takes a long time A: Thank you for spending time with me B: You’re welcome 49    Interview Mr Nam is a Staff of Software Department A: Currently, I come from a research student group I know that you are currently staff of Software Department Can I ask you some questions about managing software in SCTV? B: Yes, certainly A: When was SCTV's current software built? B: In 2003, So far, there have been many versions A: Does the software frequently fail? B: The software at SCTV has been designed, so far there is no improvement in customer management software Much of the missing software work must be done in an excel file A: Mr Thong want to build a new software system to support receivables monitoring, how would you assess this proposal? B: The benefits of the new software will suitable for reporting, tracking customer receivable, supporting staff, eliminate unnecessary information and allow to achieve their time goals effectively All details of business activities are automatically recorded in the system Easily accessible and used for analysis and decision-making purposes The development of a new system for SCTV is not too complicated and the cost will not be high, the software system costs is estimated at 40 million VND This is because SCTV's existing customer management system can develop this new system A: Thank you for spending time with me B: You’re welcome   50    Appendix Competitor data is collected via the company's officially published financial statements, included: FPT Telecom Joint Stock Company (FOX), Vietnam Posts and Telecommunications Group (VNPT) SAIGONTOURIST CABLE TELEVISION COMPANY 2018 2017 2016 2015 2014 SHORT-TERM ASSETS 845,981 987,971 960,529 912,047 845,981 Cash and cash equivalents 78,925 81,360 97,210 173,491 89,913 Cash 71,025 76,095 75,255 95,115 89,913 7,900 5,265 21,955 78,376 - 52,200 72,485 45,035 44,500 85,888 - - 85,888 ASSETS Cash equivalents Short-term financial investments Available for sale securities Held to maturity investments 52,200 72,485 45,035 44,500 - Short-term receivables 345,232 326,907 268,849 273,675 134,819 Short-term trade accounts receivable 293,023 256,197 180,324 203,056 139,702 Short-term prepayments to suppliers 2,045 10,191 42,864 39,880 10,467 87,662 81,085 65,585 53,083 24,564 Provision for short-term doubtful debts (*) (37,597) (20,567) (19,994) (22,765) (39,913) Inventories 255,364 365,158 413,160 363,598 241,942 Inventories 256,776 365,205 413,855 364,019 242,098 Other short-term assets 114,259 142,059 136,276 56,782 63,145 1,571,521 1,607,301 1,642,060 1,291,337 1,076,992 39,631 39,734 29,808 32,780 28,598 Fixed assets 925,671 789,627 741,218 599,554 399,961 Tangible fixed assets 880,387 756,907 708,984 573,120 384,861 2,703,805 2,305,225 1,977,977 1,556,569 959,964 (1,823,418) (1,548,317) (1,268,994) (983,449) -575,103 Long-term assets in progress 63,649 162,013 187,999 202,525 146,600 Construction in progress 63,649 162,013 187,999 202,525 146,600 Long-term financial investments 81,784 100,624 114,380 29,694 169,212 - - - - 161,004 81,784 100,624 114,380 10,886 8,208 408,899 515,303 494,127 340,934 332,621 Other short-term receivables Long-term assets Long-term receivables Cost Accumulated depreciation Investments in subsidiaries nvestments in associates, joint-ventures Other long-term assets 51    TOTAL ASSETS 2,417,501 2,595,273 2,602,590 2,203,383 1,692,700 1,796,069 1,960,444 1,985,070 1,599,690 1,243,785 1,366,218 1,534,738 1,378,049 1,169,242 1,044,612 Short-term trade accounts payable 379,829 554,297 521,662 505,316 385,004 Short-term advances from customers 226,822 204,322 191,920 225,033 1,760 Taxes and other payables to state authorities 25,512 14,844 7,847 19,974 12,881 Payable to employees 60,408 66,487 68,126 65,956 47,559 Short-term acrrued expenses 30,446 38,261 22,855 39,809 84,100 Other short-term payables 225,244 227,961 127,859 66,252 119,761 Short-term borrowings and financial leases 413,501 399,517 400,952 182,825 150,684 4,456 29,956 36,828 64,077 54,500 429,851 425,706 607,021 430,449 199,174 - 2,061 179,029 217,643 54,902 Long-term advances from customers 30,364 24,988 116,917 13,919 - Other long-term liabilities 19,158 19,137 18,509 17,614 14,211 356,228 356,479 290,147 179,585 128,449 OWNER'S EQUITY 621,433 634,828 617,520 603,693 448,915 Owner's equity 621,433 634,828 617,520 603,693 448,915 Owner's capital 457,459 458,000 458,000 440,000 440,000 Common stock with voting right 457,459 458,000 458,000 440,000 440,000 24,099 64,940 44,943 41,673 8,915 (17,436) (49,462) (39,153) 14,694 - RESOURCES LIABILITIES Short -term liabilities Bonus and welfare fund Long-term liabilities Long-term trade payables Long-term borrowings and financial leases Investment and development fund Undistributed earnings after tax Accumulated retained earning at the end of the previous period - (39,153) 14,694 - Undistributed earnings in this period - - - - Minority's interest 125,181 129,219 121,600 107,325 - TOTAL OWNER'S EQUITY AND LIABILITIES 2,417,501 2,595,273 2,602,590 2,203,383 1,692,700 Revenue 2,324,548 2,396,461 2,155,226 2,016,828 1,755,981 1,213 35 11,165 1,320 6,195 Net revenue 2,323,333 2,396,426 2,144,061 2,015,507 1,749,786 Cost of goods sold 1,655,441 1,751,810 1,488,564 1,383,870 1,181,603 667,893 644,615 655,497 631,637 568,184 Deduction from revenue Gross profit 52    Financial income 3,473 4,890 5,673 8,909 10,004 Financial expenses 75,539 65,855 38,960 86,151 23,424 Of which: Interest expenses 74,998 65,579 39,127 21,367 22,352 Selling expenses 213,781 193,371 194,772 169,325 264,692 General and administrative expenses 279,227 295,629 300,155 236,990 214,837 84,938 79,447 104,246 150,762 75,235 1,909 627 1,348 18,690 13,946 746 795 868 785 4,514 1,864 168 480 17,905 9,432 Profit before tax 86,101 79,279 104,726 168,667 84,667 Current corporate income tax expenses 18,641 13,062 16,874 46,138 24,948 4,823 8,346 11,378 (5,367) (1,298) Net profit after tax 62,637 57,869 76,474 127,896 61,017 Minority's interest 19,459 30,241 45,777 - Profit after tax for shareholders of parent company 43,178 46,233 82,119 61,017 Operating profit Other income Other expenses Other profit Deferred income tax expenses (*) 32,710 FPT TELECOM JOINT STOCK COMPANY (FOX) 2018 2017 2016 2015 7,034,989 4,260,887 4,534,820 4,069,828 Cash and cash equivalents 544,516 637,367 976,979 735,084 Cash 237,736 172,973 195,543 89,165 Cash equivalents 306,780 464,394 781,436 645,919 3,792,299 1,472,830 1,680,039 1,065,619 - - - - 3,792,299 1,472,830 1,680,039 1,065,619 984,461 836,928 808,599 994,444 Short-term trade accounts receivable 1,030,757 879,819 776,734 1,105,559 Short-term prepayments to suppliers 34,199 31,422 42,406 38,174 Other short-term receivables 83,145 41,759 60,400 52,653 (163,639) (116,072) (70,941) (201,943) Inventories 840,231 519,570 406,625 505,587 Inventories 871,432 519,570 406,625 505,587 ASSETS SHORT-TERM ASSETS Short-term financial investments Available for sale securities Held to maturity investments Short-term receivables Provision for short-term doubtful debts (*) 53    Other short-term assets 873,482 794,191 662,578 769,094 4,688,852 3,956,838 3,993,338 3,893,984 22,061 21,095 16,652 4,517 Fixed assets 4,089,813 3,456,646 3,255,469 3,093,537 Tangible fixed assets 3,507,730 3,102,594 3,099,833 2,932,248 Cost 6,862,153 5,996,603 6,219,992 5,331,306 (3,354,423) (2,894,009) (3,120,159) 2,399,058 Long-term assets in progress 48,950 17,227 214,180 217,795 Construction in progress 48,950 17,227 214,180 217,795 6,000 6,000 6,000 7,352 Investments in subsidiaries - - - - nvestments in associates, joint-ventures - - - - 522,027 428,448 468,062 532,256 11,723,841 8,217,725 8,528,158 7,963,812 7,602,614 4,916,041 5,326,381 5,207,847 Short -term liabilities 7,388,207 4,763,337 4,827,411 4,703,431 Short-term trade accounts payable 1,525,738 1,112,335 766,687 1,104,563 Short-term advances from customers 57,433 120,328 102,124 4,340 Taxes and other payables to state authorities 75,654 65,204 79,648 107,380 Payable to employees 116,030 4,587 4,488 5,081 Short-term acrrued expenses 573,886 753,371 441,048 325,987 Other short-term payables 237,921 441,650 318,028 132,733 3,362,088 1,103,127 2,094,181 1,660,677 Bonus and welfare fund 251,297 173,988 151,959 134,144 Long-term liabilities 214,406 152,703 498,970 504,415 Long-term trade payables - - - - Long-term advances from customers - - - - Other long-term liabilities - - - 404 167,715 104,999 449,120 444,646 OWNER'S EQUITY 4,121,227 3,301,684 3,201,777 2,755,965 Owner's equity 4,121,227 3,301,684 3,201,777 2,755,965 Long-term assets Long-term receivables Accumulated depreciation Long-term financial investments Other long-term assets TOTAL ASSETS LIABILITIES Short-term borrowings and financial leases Long-term borrowings and financial leases 54    Owner's capital 2,261,597 1,507,833 1,370,786 1,246,198 Common stock with voting right 2,261,597 1,507,833 1,370,786 1,246,198 389,799 246,879 131,972 - 1,038,993 1,239,853 1,489,961 1,315,078 Accumulated retained earning at the end of the previous period 468,187 1,026,073 941,138 577,808 Undistributed earnings in this period 570,806 213,780 548,822 737,271 Minority's interest 376,175 265,194 201,705 187,336 11,723,841 8,217,725 8,528,158 11,723,841 8,854,833 7,677,901 6,693,694 5,580,401 33,310 26,541 27,226 12,660 Net revenue 8,821,523 7,651,360 6,666,468 5,567,741 Cost of goods sold 4,603,932 3,937,312 3,555,107 2,919,474 Gross profit 4,217,591 3,714,048 3,111,361 2,648,266 Financial income 211,038 149,686 162,661 65,549 Financial expenses 145,705 121,508 154,892 84,874 Of which: Interest expenses 133,047 118,844 150,790 66,726 Selling expenses 959,987 683,625 593,915 530,325 General and administrative expenses 1,868,791 1,819,953 1,335,791 1,063,831 Operating profit 1,454,146 1,238,648 1,189,425 1,034,785 Other income 8,523 17,561 7,610 8,685 Other expenses 5,137 39,287 4,279 3,123 Other profit 3,385 (21,726) 3,331 5,561 1,457,531 1,216,922 1,192,756 1,040,347 276,203 218,099 165,469 235,037 21,732 24,198 16,709 (76,763) 1,159,596 974,624 1,010,578 882,073 110,249 102,279 92,487 54,371 1,049,347 872,345 918,092 827,702 Investment and development fund Undistributed earnings after tax TOTAL OWNER'S EQUITY AND LIABILITIES Revenue Deduction from revenue Profit before tax Current corporate income tax expenses Deferred income tax expenses (*) Net profit after tax Minority's interest Profit after tax for shareholders of parent company 55    VIETNAM POSTS AND TELECOMMUNICATIONS GROUP (VNPT) 2018 2017 2016 2015 SHORT-TERM ASSETS 35,874,549 51,570,452 6,555,629 45,388,843 Cash and cash equivalents 1,836,865 4,853,171 2,417,506 6,720,252 Cash 1,836,865 4,853,171 2,417,506 6,720,252 - - - - 30,309,020 35,044,063 300,000 27,848,841 30,309,020 35,044,063 300,000 27,848,841 - - - - Short-term receivables 1,968,969 7,608,636 3,428,702 7,336,642 Short-term trade accounts receivable 1,968,969 7,608,636 3,428,702 7,336,642 Short-term prepayments to suppliers - - - - Other short-term receivables - - - - - - - - Inventories 1,183,206 2,960,352 134,538 2,396,394 Inventories 1,183,206 2,960,352 134,538 2,396,394 576,489 1,104,230 274,884 1,086,714 47,294,887 44,062,575 769,846 43,862,582 8,391 51,808 1,452 34,668 Fixed assets 39,067,327 37,761,416 530,278 37,716,382 Tangible fixed assets 39,067,327 37,761,416 530,278 37,716,382 Cost 39,067,327 37,761,416 530,278 37,716,382 - - - - Long-term assets in progress 1,522,580 3,826,547 148,889 3,871,087 Construction in progress 1,522,580 3,826,547 148,889 3,871,087 Long-term financial investments 6,079,498 1,650,019 - 1,702,911 Investments in subsidiaries 6,079,498 1,650,019 - - - - - - 617,091 755,483 89,226 520,141 83,169,436 95,633,027 7,325,475 89,251,425 ASSETS Cash equivalents Short-term financial investments Available for sale securities Held to maturity investments Provision for short-term doubtful debts (*) Other short-term assets Long-term assets Long-term receivables Accumulated depreciation nvestments in associates, joint-ventures Other long-term assets TOTAL ASSETS 56    LIABILITIES 20,199,914 30,932,489 4,400,986 24,897,831 Short -term liabilities 19,144,010 29,537,855 4,264,985 22,880,362 Short-term trade accounts payable 19,144,010 29,537,855 4,264,985 22,880,362 Short-term advances from customers - - - - Taxes and other payables to state authorities - - - - Payable to employees - - - - Short-term acrrued expenses - - - - Other short-term payables - - - - Short-term borrowings and financial leases - - - - Bonus and welfare fund - - - - Long-term liabilities 1,055,904 1,394,634 136,001 2,017,469 Long-term trade payables 1,055,904 1,394,634 136,001 2,017,469 Long-term advances from customers - - - - Other long-term liabilities - - - - Long-term borrowings and financial leases - - - - OWNER'S EQUITY 62,969,522 64,700,538 2,924,489 64,353,594 Owner's equity 62,969,183 64,694,937 2,924,489 64,351,843 Owner's capital 62,969,183 64,694,937 2,924,489 64,351,843 Common stock with voting right 62,969,183 64,694,937 2,924,489 64,351,843 Investment and development fund - - - - Undistributed earnings after tax - - - - Accumulated retained earning at the end of the previous period - - - - Undistributed earnings in this period - - - - Minority's interest - - - - TOTAL OWNER'S EQUITY AND LIABILITIES 83,169,436 95,633,027 7,325,475 83,169,436 Revenue 42,439,099 52,861,168 37,312,424 48,329,649 - - - - 42,439,099 52,861,168 37,312,424 48,329,649 Deduction from revenue Net revenue 57    Cost of goods sold 37,921,567 40,491,724 32,694,378 38,061,071 Gross profit 4,517,532 12,369,444 4,618,046 10,268,578 Financial income 2,688,225 2,548,940 55,041 2,097,037 96,471 231,976 157,674 505,867 - - - - 22,739 4,339,675 2,350,357 1,457,927 General and administrative expenses 3,228,634 5,626,042 1,077,140 7,011,098 Operating profit 3,857,913 4,873,848 1,087,916 3,445,239 514,119 282,294 14,341 8,216 - - - - 514,119 282,294 14,341 8,216 4,372,032 5,156,142 1,102,257 3,453,455 639,227 862,908 220,570 831,467 - (3,707) - 4,641 3,732,805 4,296,941 881,687 2,617,347 - - - - 3,732,805 4,296,941 881,687 2,617,347 Financial expenses Of which: Interest expenses Selling expenses Other income Other expenses Other profit Profit before tax Current corporate income tax expenses Deferred income tax expenses (*) Net profit after tax Minority's interest Profit after tax for shareholders of parent company 58    Reference (1) Adusei, C (2017) Accounts receivables management: Insight and challenges International Journal of Finance & Banking Studies, 6(1), 101-112 (2) Baveld, M B (2012),Impact of Working Capital Management on the Profitability of Public Listed Firms in The Netherlands During the Financia Crisis.http://purl.utwente.nl/essays/61524 (3) Burez J, Vandenpoel D Separating financial from commercial customer churn: A modeling step towards resolving the conflict between the sales and credit department Expert systems with Applications 2008;35(1-2):497-514 (4) Brealey, R.A., Myers, S.C and Allen, K (2011) Principles of Corporate Finance 10th Edition New York McGraw Hill (5) Cuong, N.T and N.T Canh, 2012 “The effect of capital structure on firm value for Vietnam’s seafood processing enterprises”, International Research Journal of Finance and Economics, 89, pp 221-233 (6) Danis, J., Dolinayova, A., Cerna, L., & Zitricky, V (2019) Impact of the economic situation in the slovak republic on performances of railway transport Periodica Polytechnica.Transportation Engineering, 47(2), 118-123 (7) Fabozzi, F J and Peterson, P.P (2003) Financial Management and Analysis 2nd Edition Hoboken John Wiley & Sons Inc (8) Gitman, L J and , Zutter, C J (2010) MANAGEMENT OF ACCOUNTS RECEIVABLE IN A COMPANY (9) Garc´ıa-Teruel P and Mart´ınez-Solano P A Dynamic Approach to Accounts Receivable: a Study of Spanish SMEs European Financial Management, Vol 16, No 3, 2010, 400–421 (10) Kontus, E.,M.S (2013) MANAGEMENT OF ACCOUNTS RECEIVABLE IN A COMPANY Ekonomska Misao i Praksa, 22(1), 21-38 (11) Newton, R L (1993) Measuring accounts receivable performance: A comprehensive method Healthcare Financial Management, 47(5), 33-4, 36 59    (12) Obradovich, John and Gill, Amarjit, " e Impact of Corporate Governance and Financial Leverage on the Value of American Firms" (2013) Faculty Publications and Presentations 25 (13) Perinpanathan R Impact of Financial Leverage on Financial Performance: Special Reference to John Keells Holdings plc in Sri Lanka: University of Jaffna; 2014;33 (14) Psillaki, M., & Eleftheriou, K (2014) Trade credit, bank credit, and flight to quality: Evidence from French SMEs Journal of Small Business Management, 53(4), 1219–1240 (15) Sharma, A.K and Kumar, S (2011),Effect of Working Capital Management on Firm Profitability: Empirical Evidence from India, Global Business Review, 12(1), 159 – 173 (16) Subramanyam K Financial statement analysis Boston: McGraw-Hill Irwin; 2009 (17) Scherr, F C (1996) Credit department structure and policy-making: Rethinking the basics for a competitive world: The national magazine of business fundamentals C&FM Business Credit, 98(2), 20 (18) Smith, J K., ‘Trade credit and informational asymmetry’, Journal of Finance, Vol 42, 1987, pp 863–72 (19) Stach, D (2014) DEBT COLLECTION PREVENTION MANAGEMENT OF RECEIVABLES/DEBTS IN A COMPANY E-Finanse, 10(2), 71-82 (20) William H Fruth (2017) Flow of Money and Its Impact on Local Economies (21) Kilminster, S M., & Jolly, B C (2000) Effective supervision in clinical practice settings: A literature review Medical Education, 34(10), 827 60    ... CITY International School of Business TRAN VUN DAU POOR ACCOUNT RECEIVABLE MANAGEMENT AT SAIGONTOURIST CABLE TELEVISION COMPANY LTD (SCTV) MASTER OF BUSINESS ADMINISTRATION SUPERVISOR:... asset account on the balance sheet, accounts receivable are created on credit Accounts receivable management is a key component of the working capital management of any company Once a company. .. find a positive relation between ROA and accounts receivables Baveld (2) studies that a statistically significant negative relation between accounts receivables and gross operating profit during