REPORT
“Analysis of financial statements of Ha Long
Canning Joint Stock Company in 2020”
25/6/2021
ĐẬU THỊ THU HẰNG
20192639
FINANCE
COPORATE
1
TABLE CONTENTS
Introducing Ha Long Canned Food Joint Stock Company ................................ 3
I.
I. II VERDICTIVE ANALYSIS of the financial statements of Ha Long Canned
Food Joint Stock Company ........................................................................................ 4
1 Horizontal analysis .............................................................................................. 4
2. Vertical analysis ................................................................................................ 10
III Trend analysis for FINANCIAL STATEMENTS .............................................. 12
1.
Trend analysis part of the property .............................................................. 12
2.
Analyze sales trends ...................................................................................... 12
IV ANALYSIS OF REPORTING INDICATORS ................................................... 13
1.
Ratio of solvency ........................................................................................... 13
2.
Group of ratios of operational capacity ........................................................ 15
2.1 Operational efficiency ratio ........................................................................ 15
2.2 Profitability ratio ........................................................................................ 16
3. Analysis of growth rate ..................................................................................... 16
3.1 Asset ratio.................................................................................................... 16
3.2 Finance Growth rate ................................................................................... 17
4
Investment return “ DUPONT” .................................................................... 18
V Compare with other companies in the same industry in 2020.............................. 20
VI FINANCIAL SOLUTIONS................................................................................. 20
2
I. Introducing Ha Long Canned Food Joint Stock Company
Founded in 1957 in Hai Phong, Halong Canned Food Joint Stock Corporation (Halong Canfoco)
was the pioneer of the food processing industry of Vietnam. Today we are a public listing
company that employs more than 1000 people and operate eight modern canning and food
processing plants and four branches across Viet Nam.
Ha Long Canned Food Da Nang Ltd. has been established in 2011, a newly-build factory
equipped with modern technology production line specialized in manufacturing tuna, sardine and
mackerel for both domestic and export market.
Canned tuna, one of our core products, have found its way to Europe (under EU Code DH203),
Middle East and Asia for many years.
Vision To become the leading food brand in Asia.
Mission
Halong Canfoco promise to provide the best nutritional foods to build healthy and happy families
Core Values
Comsumer are center of all our activities
Always listen and understand the insight of the consumer to best satisfy their needs everywhere
and everytime.
Contributing to the effort of building and promoting our brand
Our brand is the company’s most valuable asset where each and every member has the duty to
contribute to the building, promoting and protecting efforts.
Continuously improving the products
Through research and development, always looking for opportunities to bring to the consumer
the best products in taste and quality.
Ditributors are our important partners
3
Our distributors ard our supplier are our partners and need to be treated in the basis of respect,
win-win, thinking in order to grow into the future.
Nurture and develop talents
Create opportunities to attract and condition to nurture talents to contribute to the company’s
success.
Contributing to the community.
Always develop on the basis of contribution to the community where the company is nurtured
and protected.
Create value for the shareholders and other stakeholders
Operate based on clear planning and benchmark to create the highest value for the shareholders
and other stakeholders like our employees, partners or suppliers.
I.
II VERDICTIVE ANALYSIS of the financial statements of Ha Long Canned
Food Joint Stock Company
1 Horizontal analysis
BALANCE SHEET
2019
237.803
13.681
12.481
1.200
36.834
36.100
2.456
7.017
-8.744
4
182.294
184.508
A - CURRENT ASSETS
I. Cash and cash equivalents
1. Cash
2. Cash equivalents
III. Short-term receivables
1. Short-term trade receivables
2. Short-term prepayments to suppliers
5. Other short-term receivables
4. Provision for doubleful debts- short-term
Shortage of assets awaiting resolution
IV. Inventories
inventories
Provision for declien in value of
inventories
V. Other current assets
1. Short-term prepaid expenses
2. Deductible VAT
-2.214
4.994
733
2.217
4
2020 amount percentage
331.314 93.511
39,32
13.573
-108
-0,79
13.573
1.092
8,75
-1.200
61.953 25.119
68,20
57.616 21.516
59,60
5.911
3.455
140,68
7.080
63
0,90
-8.655
89
-1,02
-4
248.937 66.643
36,56
251.955 67.447
36,56
-3.018
6.850
727
4.981
-804
1.856
-6
2.764
36,31
37,16
-0,82
124,67
3. Taxes and other receivable from the
State
B LONG-TERM ASSETS
I. Long-term receivables
4. Other long-term receivables
II. Fixed assets
1. Tangible fixed assets
Historical cost
Accumulated depreciation
3. Intangible fixed assets
Historical cost
Accumulated depreciation
IV. Long-term assets in process
Construction in progress
VI. Other long-term assets
1. Long-term prepaid expenses
TOTAL ASSETS
C - LIABILITIES
Short-term liabilities
Short-term trade accounts payable
Short- term advances from customers
Tax and other payables to the State
Payables to employees
Other short-term payables
Short-term payable
short-term borrowings
Bonus and welfare funds
Long-term liabilities
Other long-term payables
Long-term borrowings
Provision for long-term liabilities
D - OWNER'S EQUITY
Capital and reservers
Owners' capital
Ordinary shares with votinf rights
Share premium
Investment and development funds
Undistributed earnings
Undistributed post-tax profits of previous
years
Post-tax profit of current years
TOTAL RESOUCES
2.043
55.593
597
597
51.169
37.770
130.265
-92.496
13.399
13.754
-354
45
45
3.781
3.781
293.395
175.393
171.438
49.943
2.404
7.823
4.935
8.545
2.953
91.953
2.885
3.955
282
3.672
118.002
118.002
50.000
50.000
15.753
29.020
23.228
1.141
-902
66.094 10.501
650
53
650
53
55.330
4.161
41.388
3.618
140.231
9.966
-98.843 -6.347
13.942
543
14.679
925
-736
-382
6.617
6.572
6.617
6.572
3.496
-285
3.496
-285
397.408 104.013
267.790 92.397
262.510 91.072
111.856 61.913
2.320
-84
8.823
1.000
3.716 -1.219
9.796
1.251
2.553
-400
119.853 27.900
3.592
707
5.280
1.325
282
0
1.139
1.139
3.858
186
129.618 11.616
129.618 11.616
50.000
0
50.000
0
15.753
0
2.020 -27.000
34.844 11.616
-44,15
18,89
8,88
8,88
8,13
9,58
7,65
6,86
4,05
6,73
107,91
14604,44
14604,44
-7,54
-7,54
35,45
52,68
53,12
123,97
-3,49
12,78
-24,70
14,64
-13,55
30,34
24,51
33,50
0,00
#DIV/0!
5,07
9,84
9,84
0,00
0,00
0,00
-93,04
50,01
10.641
12.587
293.395
16.728
6.087
18.116
5.529
397.409 104.014
57,20
43,93
35,45
General comment: In general, the total assets of Ha Long Canned Food Joint Stock Company
have positive signs, increasing at a moderate rate, specifically, in 2019 it increased by 93,511
5
million compared to 2020 or 39.32%. The main reason is that cash and cash equivalents
increased strongly along with a slight increase in some assets. As follows :
+ Cash and cash equivalents: compared to 2019, it will decrease by -108 million VND in 2020,
equivalent to a decrease of 0.79%, of which cash will increase by 1,092 million in 2020
accounting for 8.75% compared to 2019. and in 2020 cash equivalents are at zero. Therefore,
compared to 2019, an amount equal to 2019 will be reduced by 1,200 million. The reason for
the decrease in money may be short-term loans from businesses. Short-term receivables in 2020
increased sharply and significantly. Specifically, an increase of 25,119 million compared to
2019 accounting for 68.2% of the total in 2019. Provision for doubleful debts- short-term, Other
short-term receivables in 2020 increased but not significantly, only increased from 1-2%
Compared to 2019. Having a lot of cash reserves helps businesses to ensure regular and quick
payment, but it does not guarantee the effectiveness of management (easily causing corruption
to benefit the business). themselves, reducing the ability to pass the capital round when leaving
money idle…). Businesses should consider boldly investing in short-term investments.
+ Short-term accounts: Compared to 2019, the year 2020 increased sharply like parsing on,
increasing by VND 25,119 million, equivalent to 68.2%. Prove that the business is heavily
capitalized. When issuing too much money for the short term of the account. It is possible that
the business will fall into insolvency when the cash flow decreases compared to 2019.
However, we also see the efforts of the enterprise in the proportion of businesses planning to
debt recovery. Specifically, the rate of Provision for doubleful debts- short-term has increased,
although it is not much, only 89 million compared to 2019 and only accounted for 1.02%
compared to 2019. But it also shows that the management needs to pay more attention. to
recover public debt, avoid the formation of difficult debt. Measures such as: discount for
customers when paying immediately...
+ Inventories: The inventory target in 2020 compared to 2019 increased by 66,643 million
VND, equivalent to 36.56. It shows that the business has increased production to meet the needs
of more customers. However, enterprises have also been conscious in reducing the proportion of
stagnant capital in inventories, they have reduced Provision for declien in value of inventories
36.31% compared to 2019. That shows that the market demand in 2020 is much stronger than in
2019. Enterprises should have market supply-demand reports to have an appropriate level of
reserves, to avoid mass production, which cannot be pushed to the market, which will be very
wasteful.
+ Other short-term assets: in 2020 increased sharply by 1,856 million VND, equivalent to
37.16%. In which Deductible VAT increased very strongly and increased by 2,764 compared to
2019 this figure accounted for 124% compared to 2019. At the same time, state taxes decreased
sharply, accounting for 44% compared to 2019. Thereby partly showing us debt. of businesses
in 2020 increased a lot compared to 2019 through the RATIO ratio and its meaning. This is also
not necessarily an advantage for businesses, because when debts increase, the business will give
investors a bad view of the business.
+ Fixed assets: in 2020 slightly increased by 4,161 million VND, equivalent to 8.13%. Tangible
fixed assets and Intangible fixed assets both increased slightly. Enterprises need a reasonable
6
policy for this because fixed assets are an important and indispensable resource of the
production process.
Evaluate changes in capital resources
Total capital of enterprises in 2020 compared to 2019 increased slightly by 11.616 million
VND, equivalent to 9.84%. The business has had a moderate growth, the additional capital will
help the business expand its production scale. The factors affecting the total capital are as
follows:
+ Short-term debt: in 2020 increased by more than half by more than 91,072 million VND,
equivalent to 53.12%. Given the company's ability to appropriate capital is not good, it is
necessary to monitor these items to pay on time.
+ Long-term debt: in 2020 compared to 2019 increased quite a lot by 1,325 million, accounting
for 33.5%. The main reason is due to the sudden increase in Long-term borrowings. It stays at 0
in 2019 until 2020 the number increases to 1.139 million. This is a number worth paying
attention to.
+ Equity: the equity target in 2020 compared to 2019 increased by 11.616 million VND,
equivalent to 9.84. In which Owners' capital, Ordinary shares with votinf rights ,Share premium
did not increase compared to 2019. It can be seen that the business is bringing profits to the
business, contributing to increasing equity. The proportion of equity capital accounts for the
majority of total investment capital, although compared to 2019, this proportion has decreased,
showing the initiative of the enterprise. However, businesses should have better policies to
appropriate capital.
Income statement
2019
Revenue from sales of goods and rendering of
services
Less deductions
Net revenue from sales of goods and rendering
of services
Cost of goods sold and services rendering
Gross profit on sales and rendering of services
Financial income
Financial expenses
Interest expenses
Selling expenses
General and adminitration expenses
Net profit operating
Other income
Other expenses
Net other income
Net accounting profit before tax
Business income tax - current BIT- deferred
579.536
-4.686
738.565 159.029
-4.222
464
574.850
734.343 159.493 27,75
591.909 146.645 32,93
142.433 12.847
9,91
2.229
921 70,41
-6.855
-2.709 65,34
-5.147
-1.718 50,10
-87.424
-5.946
7,30
-28.211
4.599 -14,02
22.173
9.715 77,98
1.176
-1.903 -61,81
-447
325 -42,10
729
-1.578 -68,40
22.903
8.138 55,12
-4.786
-2.608 119,74
-445.264
129.586
1.308
-4.146
-3.429
-81.478
-32.810
12.458
3.079
-772
2.307
14.765
-2.178
7
2020
27,44
-9,90
Net profit after tax
Basic earnings per share
Diluted earnings per share
12.587
0,003
0,003
18.116
0,004
0,004
5.529
0,001
0,001
43,93
44,00
44,00
From the analysis results, it shows that net profit in 2020 compared to 2019 increased sharply
by 9,715, accounting for 77.98%. This is a good number for businesses. Thereby, it shows that
business activities of enterprises in 2020 are quite favorable and bring about many profits,
specifically:
+ In terms of revenue: In 2020 increased by 159,029 VND compared to 2019 million VND,
equivalent to 27.44%. The economy is difficult but revenue still increases. This is a great effort
of the company in promoting consumption and expanding customer network.
+ Regarding cost: Along with the promotion of consumption of cost of goods in 2020 compared
to 2019, an increase of VND 146.645 million, equivalent to 32.93%, at the same time the
proportion of cost of cost also increased by 1.372%, showing that the enterprise controls inputs
not good (possibly due to high raw material prices, increased wages due to the government's
minimum wage increase policy, high purchasing costs...). This is a weakness of the business
because most of the costs in the cost of capital are variable costs, so with the increase in
revenue, this proportion should have decreased. Therefore, enterprises need to check and
control appropriately.
+ In terms of selling expenses: In 2020, an increase of VND 5,946 million, equivalent to VND
7.3% billion in revenue also increased. This is one thing that shows that the selling expenses of
the business are mostly fixed costs. Businesses need to consider increasing the bonus for sales
staff reasonably based on total sales. This can be considered a good solution while the economy
is still facing many difficulties, making total revenue increase.
+ Regarding business administration expenses: in 2020 compared to 2019 it decreased by 4,599
million VND, equivalent to 14.02%, showing that the enterprise has a good business
management plan and strategy. Thereby reducing administrative costs while increasing revenue
and proportion. A good management system helps businesses save a lot of costs, and at the
same time improve efficiency, work efficiency, and make the most of human resources.
Improve sales, profits and easily achieve business goals. Enterprises should maintain and
promote this management system.
FREE CASH FLOW
I. CASH FLOW FROM OPERATING
OPERATIONS
Net accounting profit before tax
Adjustments for:
Depreciation and amortisation
Provisions
Unrealised foregn exchange gains/losses
8
2019
2020
14.765
22.903
8.138
55,12
6.779
-3.643
54
6.726
902
-107
-53
4.545
-0,78
-124,76
Profits from investig activities
-104
-61
interest expenses
3.429
5.147
1.718
50,10
Operating profit before changes in working capital
21.280 35.513 14.233
66,88
(Increase) in receivable
-24.529 -26.214
-1.685
6,87
(Increase) in inventory
-24.884 -67.447 -42.563
171,05
Increase payable
6.209 57.683 51.474
829,02
decrease in prepaid expenses
3.776
291
-3.485
-92,29
Interest paid
-3.429
-5.112
-1.683
49,08
BIT paid
-1.349
-1.735
-386
28,61
Other payments on operating activities
-29
29
Net cash flow from operating activities
-22.956
-7.022 15.934
-69,41
II. CASH FLOW FROM INVESTMENT
ACTIVITIES
Purchases of fixed assets and other long-term assets
-3.014 -17.282 -14.268
473,39
Dividends and interest received
104
61
-43
-41,35
Net cash outflows from investing activities
-2.909 -17.220 -14.311
491,96
III. CASH FLOW FROM FINANCIAL
ACTIVITIES
Proceeds from borrowings
303.616 467.453 163.837
53,96
Repayments of borrowings
269.686 438.479 168.793
62,59
Dividends paid, profits distributed to owners
-2.494
-4.999
-2.505
100,44
Net cash flows from/(used into) financial activities
31.436 23.974
-7.462
-23,74
Net in cash and cash equivalents
5.571
-269
-5.840
-104,83
Cash and cash equivalents at the beginning of the
year
8.109 13.681
5.572
68,71
Effect of foreign exchange differences
1
162
161 16100,00
Cash and cash equivalents at the end of the year
13.681 13.574
-107
-0,78
From the data analysis table, we can see that compared to 2019 in 2020, there is a sharp
decrease in the net cash flow of the enterprise, down 15.934 or 69.41%. This can be explained
because 2020 is a difficult year for the Vietnamese economy in particular and the world in
general. Specifically:
+ The sharp decrease in net cash flow from production and business activities is the main reason
for the total net cash flow of the enterprise from 22,956 million VND down to 7,022 million
dong, a decrease of 15,934 million dong, equivalent to 69.41%, reducing the proportion of total
net cash flow. This is worrisome because this is the main activity of the company, but there is a
serious decrease in net cash flow, showing that although the business is profitable, it has a lot of
debt from customers (receivables increased from VND 24,529 million to VND 24,529 million).
to VND 26,214 million) (this is consistent with the analysis of short-term receivables in the
balance sheet above). From there, it shows that this is a disadvantage of the business, if it
continues to give debt to customers and does not have a debt collection policy, it is easy for the
business to fall into a situation where there is no capital to operate. Besides, the amount of
money the business has spent in inventory, prepaid expenses has reduced net cash flow.
9
+ Net cash flow from investing activities has contributed to increase the net cash flow for the
business from -2,909 million dong to -17,220 million dong, causing the proportion to increase
sharply 491.96. However, this result is the revenue from the liquidation and sale of fixed assets
in the period and the recovery of contributed capital investments. Profits received by enterprises
from investment increased from VND 14,433 million to VND 30,326 million, showing that the
business has invested in the right place, so businesses need to be more bold in investing in other
companies.
+ Net cash flow from financial activities in 2020 decreased compared to 2019 from 31,436 to
23,974. The reason is that although the enterprise has known to take advantage of capital from
outside (the loans increased sharply), but in the period, the enterprise also had to pay a part of
the loan principal and pay dividends to shareholders a good amount big.
2. Vertical analysis
BALANCE SHEET
2019
237.803
13.681
12.481
1.200
36.834
36.100
2.456
7.017
-8.744
4
182.294
184.508
-2.214
4.994
733
2.217
2.043
55.593
597
597
51.169
37.770
130.265
-92.496
13.399
13.754
-354
A - CURRENT ASSETS
I. Cash and cash equivalents
1. Cash
2. Cash equivalents
III. Short-term receivables
1. Short-term trade receivables
2. Short-term prepayments to suppliers
5. Other short-term receivables
4. Provision for doubleful debts- short-term
Shortage of assets awaiting resolution
IV. Inventories
inventories
Provision for declien in value of inventories
V. Other current assets
1. Short-term prepaid expenses
2. Deductible VAT
3. Taxes and other receivable from the State
B LONG-TERM ASSETS
I. Long-term receivables
4. Other long-term receivables
II. Fixed assets
1. Tangible fixed assets
Historical cost
Accumulated depreciation
3. Intangible fixed assets
Historical cost
Accumulated depreciation
10
2020
331.314
13.573
13.573
61.953
57.616
5.911
7.080
-8.655
248.937
251.955
-3.018
6.850
727
4.981
1.141
66.094
650
650
55.330
41.388
140.231
-98.843
13.942
14.679
-736
2019
2020
total asset
4,66
3,42
4,25
3,42
0,41
0,00
12,55
15,59
12,30
14,50
0,84
1,49
2,39
1,78
-2,98
-2,18
0,00
0,00
62,13
62,64
62,89
63,40
-0,75
-0,76
1,70
1,72
0,25
0,18
0,76
1,25
0,70
0,29
18,95
16,63
0,20
0,16
0,20
0,16
17,44
13,92
12,87
10,41
44,40
35,29
-31,53 -24,87
4,57
3,51
4,69
3,69
-0,12
-0,19
IV. Long-term assets in process
Construction in progress
VI. Other long-term assets
1. Long-term prepaid expenses
TOTAL ASSETS
C - LIABILITIES
Short-term liabilities
Short-term trade accounts payable
Short- term advances from customers
Tax and other payables to the State
Payables to employees
Other short-term payables
Short-term payable
short-term borrowings
Bonus and welfare funds
Long-term liabilities
Other long-term payables
Long-term borrowings
Provision for long-term liabilities
D - OWNER'S EQUITY
Capital and reservers
Owners' capital
Ordinary shares with votinf rights
Share premium
Investment and development funds
Undistributed earnings
Undistributed post-tax profits of previous years
Post-tax profit of current years
TOTAL RESOUCES
45
45
3.781
3.781
293.395
175.393
171.438
49.943
2.404
7.823
4.935
8.545
2.953
91.953
2.885
3.955
282
3.672
118.002
118.002
50.000
50.000
15.753
29.020
23.228
10.641
12.587
293.395
6.617
0,02
1,67
6.617
0,02
1,67
3.496
1,29
0,88
3.496
1,29
0,88
397.408 100,00 100,00
267.790 total liabilities
262.510 97,75
98,03
111.856 28,47
41,77
2.320
1,37
0,87
8.823
4,46
3,29
3.716
2,81
1,39
9.796
4,87
3,66
2.553
1,68
0,95
119.853 52,43
44,76
3.592
1,64
1,34
5.280
2,25
1,97
282
0,16
0,11
1.139
0,00
0,43
3.858
2,09
1,44
129.618
total equity
129.618 100,00 100,00
50.000 42,37
38,57
50.000 42,37
38,57
15.753 13,35
12,15
2.020 24,59
1,56
34.844 19,68
26,88
16.728
9,02
12,91
18.116 10,67
13,98
397.409 248,64 306,60
Through the analysis of the balance sheet, it shows the fluctuation of assets, liabilities, and
owners' equity over the years 2019 and 2020, specifically:
+ Short-term assets increased from 81% in 2019 to 83% in 2020. While short-term assets
increased, assets decreased due to certain reasons such as decrease in long-term receivables,
specifically Long-term asset capital decreased from 18.95% to 16.63% in 2020.
+ Same goes for debt. The increase in receivables led to an increase in short-term debt in
particular, slightly increasing from 97.75 to 98.03. At the same time, long-term debt decreased
from 2.25 to 1.97%.
+ In terms of equity : Owners' capital decreased 42.77 to 38.57 in 2020. Shows that CAN is
poor in debt payment, mainly borrowed from shanj and has not been active in capital sources.
11
III Trend analysis for FINANCIAL STATEMENTS
1. Trend analysis part of the property
Capital ratio table
2019
2020
Short-term liabilities
100%
53,12%
Long-term liabilities
100%
33,50%
Owners's equity
100%
9,84%
Capital ratio chart
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Short-term liabilities
Long-term liabilities
2019
Owners's equity
2020
From the analysis table and chart, it shows that the short-term debt increased sharply and the
mobilization of capital was very little, almost none. Thereby, it shows that CAN is increasingly
poor in debt payment, mainly short-term borrowing and not active in capital sources.
2. Analyze sales trends
12
2012
2013
Revenue
100,00%
27,75%
expense
100,00%
7,30%
net income
100,00%
43,93%
% of 100 base
120,00%
100,00%
80,00%
60,00%
40,00%
20,00%
0,00%
Revenue
expense
2012
net income
2013
From the analysis and chart shows, CAN's revenue is increasing significantly. The slight
increase in expenses compared to the billion in revenue is very small. Therefore, Profit is equal
to revenue minus costs. When revenue is high, costs are low, leading to very high profits.
From there, it can be said that the company is operating the company under a very good
management system. As a result, the business generates a significant profit.
It follows that CAN is following the trend of cost optimization.
IV ANALYSIS OF REPORTING INDICATORS
1. Ratio of solvency
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2017
2018
2019
2020
Current solvency
1,58
1,40
1,40
1,27
Quick solvency
0,73
0,21
0,33
0,33
Current ratio
0,49
0,06
0,08
0,05
Ratio of solvency
1,80
1,60
1,40
1,20
1,00
0,80
0,60
0,40
0,20
0,00
2017
2018
Current solvency
2019
Quick solvency
2020
Current ratio
Comment:
In 3 years, the solvency of CAN is greater than 1, meaning Current assets are still able to pay
short-term liabilities.
+ However, the current solvency decreased on a specific year-by-year basis, from 1.58 in 2007
to 1.27 in 2020. Reflecting the increasing level of short-term debt service by short-term assets
of the enterprise. reduction. In addition, it shows that a dollar of short-term debt is secured by
several dollars of short-term assets.
+ The ability to pay quickly fluctuates unevenly, but compared to 2019, in 2020 it will increase
slightly, specifically, reaching the rate of 0.33 . Reflects the extent to which short-term
liabilities are met by current assets after deducting inventory values. It shows a dollar of shortterm debt secured by a few dollars of current assets after deducting the value of inventory.
+ Short-term debt payments fell sharply. Reflects the firm's ability to meet its short-term debt in
cash and cash equivalents, indicating how many currencies a dollar of short-term debt is secured
by currencies and cash equivalents.
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2. Group of ratios of operational capacity
2.1 Operational efficiency ratio
2017
2018
2019
2020
total asset turnover
188,9
196,7
195,9
184,8
Short-term asset turnover
266,8
265,3
241,7
221,6
Equity turnover
360,5
441,7
478,9
565,6
Inventory turnover
390,3
242,2
244,2
242,2
Inventory turnover
Equity turnover
Short-term asset turnover
total asset turnover
0
100
200
2020
2019
300
2018
400
500
600
2017
Comment :
In 2020, CAN has the lowest total asset turnover of 184.8. That is, CAN manages cash and cash
equivalents well but not better than the rest of 2019,2018,2017. Similarly, short-term asset
turnover in 2020 is also the lowest compared to other years. However, equity turnover is the
highest at 565.6. Therefore, the use of equity is the most effective in 2020. From that, it can be
seen that the company's management of short-term loans from customers is not good.
Inventory turnover remained unchanged for 3 years up to 2018,201,2020. Specifically, at 244.2,
this shows that the reserve management policy of the enterprise in these 3 years is stable, the
proposed plan is maintained effectively. And this index is higher than average, so the current
policy of CAN is acceptable, and CAN needs to come up with effective measures and plans to
improve the inventory turnover ratio.
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2.2 Profitability ratio
Profit after tax/Net revenue
2017
2018
2019
2020
1,20%
-0,50%
2,50%
2,50%
Profit after tax/Net revenue
3,00%
2,50%
2,00%
1,50%
1,00%
0,50%
0,00%
2017
2018
2019
2020
-0,50%
-1,00%
Comment:
Through the analysis and chart, it can be seen that the net profit margin is unchanged in 2019
and 2020. Although it increased sharply compared to 2018, there is a successful step of the
business in maximizing profits from -0.5% in 2018 to 2.5% in 2019. Thereby, it shows that at
this stage CAN has a very good sales strategy and cost management plan.
In the last 2 years, the net profit margin has remained unchanged at 2.5%. However, this shows
that businesses have been trying to maintain a profit breakthrough in 2019. CAN should
promote a strategic plan to optimize costs, maximize profits in the best way. To increase profits
in the following years.
3. Analysis of growth rate
3.1 Asset ratio
16
Current assets/Total assets
Long-term assets/Total assets
Liabilities/Total Equity
Liabilities/Equity
Equity/Total Equity
2017
70,80%
29,20%
47,60%
90,90%
52,40%
2018
74,10%
25,90%
55,50%
124,50%
44,50%
2019
81,10%
19,00%
59,10%
144,40%
40,90%
2020
83,40%
16,60%
67,30%
206,10%
32,70%
250,00%
200,00%
150,00%
100,00%
50,00%
0,00%
2017
2018
2019
Current assets/Total assets
Long-term assets/Total assets
Liabilities/Total Equity
Liabilities/Equity
2020
Equity/Total Equity
Comment:
The chart shows that the debt-to-capital ratio has increased sharply over the years, it is at
90% in 2017, and reaches 206.1 percent in 2020. This shows that businesses tend to
move towards debt, paying little attention to capital or other factors. Therefore, other
ratios increased slightly or decreased slightly over the years, not significantly.
3.2 Finance Growth rate
2017
2018
2019
2020
Increase the revenue
-3,60%
14,80%
20,90%
27,50%
Profit Growth
12,60%
-147,40%
-703,60%
25,90%
Growth in Liabilities
-4,50%
28,30%
29%
54,50%
Equity Growth
1,70%
-6,40%
11,20%
8,30%
17
Tiêu đề Biểu đồ
100,00%
0,00%
-100,00%
2017
2018
2019
2020
Profit Growth
Growth in Liabilities
Equity Growth
-200,00%
-300,00%
-400,00%
-500,00%
-600,00%
-700,00%
-800,00%
Increase the revenue
Comment :
From the table of analytical data and charts, showing the sudden growth of profits. from
703.6% in 2019 suddenly increased to 25.9% in 2020. This shows that in 2020 the efforts
of enterprises have achieved very good results. Other growth indicators remained at the
level of increasing and decreasing slightly over the years.
4 Investment return “ DUPONT”
ROA
ROE
ROIC
2017
2,30%
4,40%
2%
2018
-1%
-2,20%
-1%
2019
5%
12,20%
3%
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2020
4,60%
14,20%
3%
16,00%
14,00%
12,00%
10,00%
8,00%
6,00%
4,00%
2,00%
0,00%
-2,00%
2017
2018
2019
2020
-4,00%
ROA
ROE
ROIC
ROA has steadily increased over specific years in 2020 reaching 4.6%. The higher the ROA, the
more efficient the asset's ability to use. Similar to ROE, stocks with high ROA will be preferred
securities. And natural securities with high ROA also have higher prices.
ROA in 2020 shows how efficiently a business is using its assets. Investors will see that the
business earns 4,6% interest on 1 dollar of assets.
ROE is a measure of a stock owner's rate of return. The division of ROE into different factors
that affect a company's performance is often referred to as the DuPont system.
Similar to ROA, ROE has increased over the years and increased sharply, specifically in 2020
reaching 14.2%.
With 1 dong of equity spent, the business will earn 14,2% profit.
Enterprises have a stable ROE at a high level, which can be seen as a sign that capital is used
effectively.
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V Compare with other companies in the same industry in 2020
CK
Code
Revenue
CAN
BTW
BVB
ART
ASP
AST
BAB
BBM
AAA
AAM
739,156
454,523
4,323,598
151,391
1,910,484
359,496
9,824,590
56,386
7,438,250
122,651
Net
profit
Profit
from
before
operating
tax
activities
22,497
23,176
43,499
44,117
548,39 201,488
2,075
1,569
19,094
19,185
-54,972 -49,152
989,139 734,813
3,134
3,298
310,923 318,749
-13,125 -11,995
Profit
after tax
18,389
35,914
160,856
1,569
18,171
-51,547
587,794
2,809
283,173
-11,967
Total asset
Short-term
assets
Total
liabilities
Shortterm
liabilities
Owner's
equity
397,801
331,707
267,859
261,819 129,942
285,083
102,267
74,867
52,896
210,217
61,101,561 61,073,393 57,211,208
0
3,890,353
1,136,085
1,062,648
11,888
0
1,124,197
1,546,654
730,017
1,069,889
901,304 476,765
624,971
363,291
84,709
83,625
540,262
117,189,393 111,223,629 108,825,811
0
8,363,582
38,818
17,485
12,459
12,459
26,359
8,569,414
4,496,051
4,545,452 3,772,835 4,023,962
210,819
171,282
16,718
15,504
194,101
From the above table, it can be seen that CAN is a medium-sized enterprise that needs to focus
a lot on capital to expand its scale and build an effective strategic business plan to maximize
profits.
VI FINANCIAL SOLUTIONS
To contribute to promoting business activities in 2020 based on horizontal and vertical analysis
of financial statements on the group, I would like to propose some solutions for Ha Long
Canned Food Joint Stock Company as follows:
Strengthening business and marketing activities, paying special attention to after-sales policies
to maintain good relationships with customers;
Strengthening brand promotion and marketing communication activities through customer care
activities, a series of customer conferences, fairs and seminars to introduce the company at
home and abroad;
Closely monitor the market situation, promptly come up with flexible business policies to
increase competitiveness. Take advantage of opportunities right in the midst of difficulties;
Strictly control costs, adjust investment plans to suit reality in order to make the most effective
use of the company's capital;
Strengthening activities to improve the efficiency of the Internal Management System to
prepare for future development. Consolidate human resources and improve risk management
capacity through building a professional risk management strategy and system in internal
management;
Improve capacity and strengthen financial management activities to be more proactive in
managing capital, costs and profits in a more balanced orientation. Strengthening debt
management ensures that bad debt is limited, attracts customers' money, and creates favorable
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conditions for customers in trading Ha Long canned products. Appropriate regulations and
regularly check the debt of customers to avoid loss and appropriation of capital;
Participate in seminars on business and marketing strategies in 2020 and the following years.
Actively participate in specialized seminars;
Supervising the investment in a number of new machinery and equipment; Make an annual
financial plan to take initiative in the source of money. Having policies to attract resources from
partners to take advantage of low interest rates;
Constantly improving, improving existing quality, developing new products in accordance with
market demand.
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