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The vietnamese financial sector especially the securities market 0028

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Figure 2 5 VNDIRECT Debt – to – Equity ratio from 2017 to 2021 (Source VNDIRECT Annual Report 2021) When comparing VNDIRECT’s debt – to – equity (DE) ratio with other securities companies in the mark.

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Figure 2.1: VNDIRECT Debt – to – Equity ratio from 2017 to 2021

(Source: VNDIRECT Annual Report 2021)

When comparing VNDIRECT’s debt – to – equity (D/E) ratio with other securities companies in the market, we can see that VNDIRECT’s figure was among the high group (higher than 2.00 times) It was heavily financed by loans, as it had the highest liabilities among the seven companies However, considering VNDIRECT’s business scale (the company with the highest charter capital in the market in 2021 with VND 9,822 billion), this D/E ratio was reasonable as it matched with other high ratios among this group Moreover, the fact that VNDIRECT maintained its D/E ratio at a stable and safe zone proved that the company has been using financial leverage efficiently

DEBT – TO – EQUITY RATIO OF SEVEN SECURITIES COMPANIES IN 2021

Liabilitie

s

(Billion

VND)

27,27

3 10,148 501 473 17,044 15,302 7,636

Charter

capital

(Billion

VND)

9,822 8,616 1,698 245 4,581 1,124 2,676

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