ACADEMY OF FINANCE FACULTY OF CORPORATE FINANCE BACHELOR THESIS "IMPROVING THE ANALYSIS OF CAPITAL USE OF VISICONS INVESTMENT AND CONSTRUCTION JOINT STOCK COMPANY " Major Financial Analysis Code 09 Su[.]
THEORETICAL BASIS FOR THE CAPITAL USE
General theory on the capital use analysis of a company
1.1.1 Concept and objectives of the capital use analysis of a company
Analysis involves categorizing phenomena based on specific criteria to understand their formation and development It aims to uncover the underlying laws governing these processes through dialectical relationships with other phenomena This approach helps researchers explore how different elements interact under certain conditions, advancing comprehensive knowledge in various fields.
Analysis is a vital tool for perception, enabling the recognition of the content, form, and developmental trends of complex phenomena It helps uncover the inner constitutive relationships of various objects and phenomena, revealing their dialectical connections with other events and objects By providing in-depth understanding, analysis empowers users to make informed decisions based on comprehensive and insightful information.
Capital is a fundamental factor critical for sustaining all business operations and production activities It serves as a prerequisite for any business, as a certain amount of capital is essential to initiate and maintain operations Business capital can be categorized into various types, including working capital and fixed capital, each serving different strategic goals to support growth and stability.
Effective management and monitoring of enterprise capital utilization rely on thorough analysis to evaluate current performance, make necessary adjustments, and forecast future needs Capital is closely linked to all company activities, requiring careful oversight to ensure optimal efficiency Managers prioritize effective capital management to support overall business success and sustainable growth.
Analysis of capital use involves applying scientific analytical methods to evaluate both current and future capital management within an enterprise This process provides essential insights for management, enabling informed decision-making aligned with organizational objectives Effective capital analysis supports strategic planning by forecasting future capital needs and optimizing resource allocation for sustainable growth.
In a market economy with macro management by the State, various entities—including investors, credit providers, company managers, tax authorities, government agencies, and employees—are interested in the financial health of enterprises Analyzing how capital is utilized enables each stakeholder to gather relevant information tailored to their specific objectives, facilitating informed decision-making to protect and enhance their interests linked to business operations The primary analysis objectives are centered around three key groups: business administrators, investors, and lenders, each with distinct perspectives and concerns regarding the company's financial performance.
As an internal analysis to serve the management and use of capital of the company, it is usually carried out by the company itself to meet the following objectives:
Evaluating the efficiency of capital utilization and assessing past capital management practices are essential for ensuring optimal profitability and financial stability By analyzing past performance, companies can implement effective capital management principles, monitor solvency, and forecast potential risks These insights enable timely adjustments and provide a solid foundation for developing strategic policies on capital deployment, ensuring sustainable growth and resilience for future enterprise success.
Directing the decisions of the Board of Directors in the direction appropriate to the actual situation of the company, such as decisions on investment, financing, profit distribution
Analysis of the capital use situation of the enterprise is the basis for predictions about the adjustment and use of capital in the future.
Analyzing the use of capital of the enterprise is a tool to check and control the use of capital in the enterprise.
Investors allocate their capital to a company expecting high returns while accepting associated risks They are primarily interested in the company's profitability and seek accurate insights into actual investment returns Recognizing that official financial statements may not always reflect true earnings, companies must develop comprehensive profit distribution policies and conduct risk assessments to project realistic returns effectively.
Analyzing the use of capital for investors is to evaluate the business and estimate the value of shares, based on the study of reports, profitability, risk analysis in business
Analyzing a lender's capital usage is essential to assessing a customer's ability to repay a loan The process differs significantly between long-term and short-term loans, as each requires unique evaluation methods Understanding these distinctions helps lenders make informed lending decisions and manage risk effectively Proper capital analysis ensures the borrower’s repayment capacity is thoroughly assessed, enhancing loan security and financial stability.
With short-term loans: Lenders are especially interested in the company's ability to pay immediately In other words, the company's ability to respond when debt is due.
When providing long-term loans, lenders must assess the borrower's ability to repay both principal and interest, ensuring the profitability of the loan and the company's investment capital Understanding the financial risks associated with joint stock companies is essential for making informed lending decisions, as these risks directly impact the repayment capacity and overall loan security.
1.1.2 Database for the capital use analysis of a company
The balance sheet is a comprehensive financial statement that shows the total value of an enterprise's assets and their sources at a specific point in time It provides a clear snapshot of a company's financial position by detailing its assets and capital resources Divided into two main sections, the “Assets” section outlines the company's possessions, while the “Capital Resources” section highlights the sources of funding and liabilities, offering valuable insights for stakeholders and investors.
The "Assets" section organizes indicators based on the economic content of asset classes, arranged in descending order of liquidity This section reflects the total value of an enterprise's existing assets at the reporting date and is divided into two distinct categories, providing a clear overview of asset composition and liquidity profile.
- Class A - Current assets: Includes items such as cash, cash equivalents, short-term financial investments, receivables, inventories, and other short-term assets.
- Class B – Long-term assets: Including items such as long-term receivables, fixed assets, investment properties, long-term unfinished assets, long-term financial investments, long-term assets other term.
Part of Capital: Includes items reflecting the sources forming the assets of the enterprise at the time of reporting and is divided into two categories:
- Type C - Liabilities: Indicators in this category reflect short-term and long-term debts that the enterprise is responsible for paying.
Type D - Equity represents the owner's capital, including the enterprise's funds and funding sources, highlighting the company's level of independence and autonomy in managing its capital This measure reflects the financial stability and self-sufficiency of the enterprise, essential for assessing its ability to sustain operations and growth Understanding equity is crucial for evaluating the company's financial health and its capacity to attract investment, making it a key component in financial analysis and decision-making.
Report on business results (Form B02):
A statement of business results is a comprehensive financial report that provides a detailed overview of an enterprise's overall performance and operational outcomes It outlines the financial implications of each production and business activity, offering insights into the company’s profitability and operational efficiency This essential document helps stakeholders assess the financial health and effectiveness of the enterprise's activities.
The income statement of the enterprise presents the basic contents of expenses, revenue and results of each type of transaction and event:
A statement of cash flows is a key financial document that summarizes a business’s cash generation, utilization, and reserves during a specific reporting period It provides insights into how a company manages its cash inflows and outflows, ensuring liquidity and financial stability The cash flow statement is divided into three main sections: operating activities, investing activities, and financing activities, offering a comprehensive view of the company's cash management strategies.
- Cash flow from operating activities.
- Cash flow from investing activities.
- Cash flow from financial activities.
Content of capital use analysis in a company
1.2.1 Analysis of a company's assets situation
Asset analysis involves evaluating the structure and fluctuations of assets to determine the size and investment level of an enterprise's business activities This process helps identify changes in production and business scale, assess business capacity, and understand asset distribution Additionally, asset analysis provides insights into an enterprise's investment policies and overall financial health, making it essential for strategic decision-making.
When analyzing the assets of an enterprise, we use the following two groups of criteria:
- Assets on the balance sheet.
- Proportion of each asset in total assets.
Proportion of each asset in total assets = The valueof each asset
The value of total assets x 100
This analysis of asset fluctuations compares total assets and individual asset classes between the current and previous periods, assessing both absolute and relative changes It provides insights into how production scale, business capacity, and capital utilization have evolved during the period.
Analyzing the asset structure involves assessing the proportion of each asset type and comparing these proportions between the current analysis period and the previous period This comparison reveals insights into the company's asset composition, capital allocation strategies, and investment policies over time Understanding these dynamics helps evaluate how the enterprise manages its resources and adjusts its investment approach for sustained growth.
The asset structure of a business depends on:
+ Characteristics of business lines, scientific and technical progress, characteristics of technological processes, production and business cycles, input markets, output markets
+ Management level of the enterprise, investment policy and business strategy of the enterprise.
1.2.2 Analysis of the effectiveness of capital use of a company
Analyzing the effectiveness of a company's capital utilization involves assessing overall capital allocation to determine if the company's capital management is efficient and reasonable To thoroughly evaluate capital use, it is essential to examine both the general effectiveness and the specific performance of each type of capital Understanding the factors that influence capital efficiency allows for the development of targeted solutions to enhance overall capital utilization Ultimately, optimizing capital use depends on aligning strategies with the interests of various stakeholders to improve financial performance and business growth.
1.2.2.1 Analysis of total assets turnovers
Analyzing a company's business capital effectiveness through total assets turnover reveals whether the utilization is high or low, and whether it is improving or declining over time This metric helps determine if the company's capital use aligns appropriately with its business line characteristics, ensuring optimal operational efficiency and financial performance.
This indicator shows how much revenue and income an enterprise can earn for 1 dong of capital involved in the business process during the period.
(1) Total asset turnover (TAT) = Total net revenue (TNR)
TNR Net revenue on sales of goods and rendering of services
(TAT) Short-term investment ratio (CATA) x
Current asset turnover ratio(CAT)
Short-term investment ratio (CATA) = Average current assets
Current asset turnover ratio (CAT) = Total net revenue
The order and method of analysis:
Step 2: Determine specific object of analysis: ΔTAT = TAT1 + TAT0
Step 3: Determine the influence of the factors Use the difference number method:
+ The impact of CATA: ΔTAT(CATA) = (CATA1 - CATA0) x CAT0
+ The impact of CAT: ΔTAT(CAT) = CATA1 x (CAT1 – CAT0) + Summary of influence: ΔTAT= ΔTAT(CATA) + ΔTAT(CAT)
Step 4: Analyze the impact of each factor Using factor analysis method.
1.2.2.2 Analysis of current asset/ working capital turnover
Working capital represents the cash value of a company's current assets, essential for daily operations Throughout the production process, working capital continuously circulates through various stages of the production and business cycle Effective management of working capital ensures smooth operations and financial stability for the enterprise.
(1) Current asset turnover ratio (CAT)
The average number of working capital turns during a period indicates the company's capital efficiency; a higher number of rotations signifies a shorter turnaround time, demonstrating more effective utilization of working capital, whereas fewer turns suggest longer cycles and lower efficiency.
Current asset turnover ratio = Totalnet revenue(TNR )
This indicator measures the average number of days a company's working capital circulates within a business period A shorter working capital turnover period indicates a faster rate of working capital utilization, enhancing liquidity and operational efficiency Conversely, a longer turnover period suggests slower capital movement, which may impact overall financial performance Optimizing this metric is essential for improving cash flow and ensuring effective management of working capital.
Current asset days (CAD) = Days∈the period (360,90, …)
Current asset turnover ratio(CAT )
The order and method of analysis:
Step 1: Calculate CAT1, CAT0, CAD1, CAD0.
Step 2: Determine specific object of analysis: ΔCAT = CAT1 – CAT0 ΔCAD = CAD1 – CAD0
Step 3: Determine the influence of the factors Use the method of continuous substitution.
The impact of CA: To CAT: ΔCAT (CA) = TNR CA 0
To CAD : ΔCAD (CA) = ( 360,90, TNR …
The impact of TNR: To CAT: ΔCAT (TNR) = CAT1 - TNR CA 0
To CAD : ΔCAD (TNR) = CAD1 - ( 360,90, TNR …
Summary of influence: ΔCAT = ΔCAT (CA) + ΔCAT (TNR) ΔCAD = ΔCAD (CA) + ΔCAD (TNR)
Step 4: Analyze the impact of each factor Using factor analysis method.
Inventory turnover is a crucial indicator of a company's overall business performance, reflecting how efficiently it sells its products A low inventory turnover suggests sluggish sales, signaling potential operational or market challenges, while a higher turnover indicates strong sales performance and efficient inventory management Monitoring this metric helps businesses assess their sales effectiveness and optimize inventory levels to improve profitability.
This indicator shows how many turns of inventory in the business period on average.
Inventory turnover (ITO) = Cost of goods sold (COGS)
This indicator shows how many days on average in a business period, inventory turns around.
A decrease in inventory turnover leads to an increase in average inventory holding period, which results in higher storage and financial costs This slowdown in inventory turnover can reduce overall profitability and cause financial losses for the business Conversely, maintaining a high inventory turnover rate helps optimize storage expenses, improve cash flow, and enhance profitability.
Inventory turnover days (ITD) = Days∈the period (360, 90, …)
The order and method of analysis:
Step 1: Calculate ITO1, ITO0, ITD1, ITD0
Step 2: Determine specific object of analysis. ΔITO= ITO1 – ITO0 ΔITD= ITD1 – ITD0
Step 3: Determine the influence of the factors Use the difference number method.
+ The impact of AI: To ITO: ΔITO (AI) = COGS AI 0
To ITD: ΔITD (AI) = ( 360,90, COGS …
+ The impact of COGS: To ITO: ΔITO (COGS) = ITO1 - COGS AI 0
To ITD: ΔITD (COGS) = ITD1 - ( 360,90, COGS …
0 x AI1 ) + Summary of influence: ΔITO = ΔITO (AI) + ΔITO (COGS) ΔITD = ΔITD (AI) + ΔITD (COGS)
Step 4: Analyze the impact of each factor Using factor analysis method.
Receivables represent the portion of a company's capital that is temporarily occupied by related parties during the payment process Analyzing receivables turnover offers valuable insights into how quickly paid capital is cycled through the business, enabling managers to develop effective credit policies and debt recovery strategies This metric helps optimize cash flow management and improve overall financial performance.
This indicator shows how many turns in the average business period.
Accounts receivable turnover (ARTO) = Net revenue( NR )
(2) Days of sale outstanding (DSOD):
This indicator shows how many turns in the average business period.
A decreasing debt recovery ratio extends the time capital is tied up, resulting in higher financial costs and increased debt management expenses This reduced capital efficiency can negatively impact overall profitability When businesses extend the credit sales period for customers, they must carefully assess its effect on sales volume, considering whether the potential increase in sales will offset the associated financial risks If extending credit leads to higher profits, it can compensate for the increased financial and operational risks, ultimately supporting sustainable business growth.
Days of sale outstanding (DSOD) = Days∈the period (360, 90, …)
The order and method of analysis:
Step 1: Calculate ARTO1, ARTO0, DSOD1, DSOD0
Step 2: Determine specific object of analysis. ΔARTO = ARTO1 – ARTO0 ΔDSOD = DSOD1 – DSOD0
Step 3: Determine the influence of the factors Using the difference number method
+ The impact of ACR: To ARTO: ΔARTO (ACR) = ACR NR 0
To DSOD: ΔDSOD (ACR) = ( 360,90, NR …
+ The impact of NR: To ARTO: ΔARTO (NR) = ARTO1 - ACR NR 0
To DSOD: ΔDSOD (NR) = DSOD1 - ( 360,90, NR …
+ Summary of influence: ΔARTO = ΔARTO (ACR) + ΔARTO (NR) ΔDSOD = ΔDSOD (ACR) + ΔDSOD (NR)
Step 4: Analyze the impact of each factor Using factor analysis method.
1.2.3 Analysis of the profitability of a company
Profitability of business capital reflects the economic efficiency of investment capital flows into the enterprise, the efficiency of management, exploitation and use of assets formed after investment.
This indicator shows on average 1 dong of capital involved in the production and business process in the period, how much profit after tax the enterprise earns.
Average totalassets ( ATA ) x Profit after tax
(2) Basic Return on Working Capital (BEP):
This indicator measures the average profit before tax and interest generated from each unit of capital invested in production and business activities over a specific period A higher ratio indicates stronger business performance and more efficient use of capital.
BEP = Earning before interest ∧tax (EBIT )
The order and method of analysis:
Step 2: Determine specific object of analysis: ΔROA = ROA1 – ROA0
Step 3: Determine the influence of the factors Use the difference number method.
Step 4: Analyze the impact of each factor Using factor analysis method.
Financial profitability analysis focuses on assessing the return on equity, serving as a key indicator of overall financial health The profitability of equity reflects how effectively a company plans and executes its financial policies and business strategies over time This metric is crucial for owners and investors, as it represents their primary expectation from capital investment Monitoring return on equity helps stakeholders evaluate the company's performance and make informed investment decisions.
Return on equity (ROE) is a key metric used to assess a company's profitability and efficiency in generating profits from shareholders' equity For joint-stock companies, ROE helps evaluate the profitability ratios of equity capital, including metrics like Return on Common Equity (ROE) and Earnings Per Share (EPS) These criteria are essential for investors to gauge the company's financial performance and overall value.
Factors affecting the capital use analysis of a company
Analyzing capital use is essential for diverse stakeholders as it influences investment and financing choices For this analysis to be truly effective, it must accurately reflect the company's current capital utilization and its position within the industry Proper assessment involves considering key factors that impact the enterprise's capital management, ensuring a comprehensive understanding of its financial health and competitiveness.
Accurate and highly reliable information, coupled with professionals possessing strong qualifications, is essential for conducting effective analysis Additionally, the presence of an industry average indicator system plays a crucial role in influencing the quality and reliability of the analysis results.
Views of the company's managers:
The company manager plays a crucial role in establishing guidelines, regulations, and policies for financial analysis, while also utilizing the analysis results to make informed decisions Ignoring financial analysis can render its insights ineffective, emphasizing the need for a structured mechanism and appropriate policies Implementing a reasonable framework ensures that financial analysis effectively achieves the company's strategic goals and supports sound financial decision-making.
Effective financial analysis relies on gathering accurate and relevant information, but transforming this data into insightful results is a complex process that depends heavily on the analyst's qualifications Skilled analysts analyze collected data, calculate key criteria, and organize it into comprehensive tables, establishing relationships between indicators They also interpret these indicators in the context of the company's specific conditions to identify strengths, weaknesses, and underlying causes Essentially, a financial analyst is the person who makes the numbers "speak," highlighting the importance and complexity of the role in delivering high-quality financial insights.
Accurate and appropriate information is crucial for high-quality financial analysis, as incorrect data can lead to misleading results By integrating internal company data with external factors related to the operating environment, analysts gain a comprehensive view of the company's past, present, and future capital utilization This holistic approach enables effective prediction of future development trends and informed decision-making.
Timeliness and predictive value are crucial qualities that determine the relevance of information Accurate and relevant data ensure reliability, while outdated or inaccurate information diminishes trustworthiness When information lacks relevance or precision, it undermines the quality of analysis, leading to less informed decision-making and decreased overall effectiveness.
Implementing a comprehensive and scientifically sound analysis process is crucial for achieving highly effective results From the initial stage of information collection to selecting suitable analytical methods and defining analysis content, each step significantly influences the accuracy and reliability of the outcomes Accurate analytical activities provide sharp assessments, insightful comments, and strategic recommendations, serving as an essential decision-making tool for company leadership to make informed executive and management decisions Properly executed, this approach enhances decision quality and drives organizational success.
Implementing advanced scientific and technical solutions like specialized accounting hardware and software systems greatly enhances a company's analysis effectiveness Although initially incurring costs, these technologies simplify data analysis, improve accuracy, and save time and human resources in the long run Embracing these innovations is essential for businesses aiming to optimize their accounting processes and achieve more reliable insights.
Firm size also affects the results of the analysis For large-scale joint stock companies operating in multiple industries, the analysis on industry averages will not be accurate.
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The intervention of functional branches:
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System of industry average indicators:
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Inflation can distort financial statements by affecting the accuracy of recorded financial data, leading to potentially misleading calculations and analyses It impacts the present value of cash flows, causing cash flows in different years to reflect different currency values As a result, comparing financial data across multiple years becomes challenging and may lead to incorrect conclusions.
Seasonal factors significantly influence a company's performance, often leading to abnormal fluctuations in financial ratios Therefore, financial analysts must remain highly sensitive, adaptable, and understanding of these seasonal variations to accurately interpret financial data within established analytical standards.
In chapter 1, the thesis has outlined the theoretical basis for analyzing the situation of capital use in enterprises As follows:
General theory of financial analysis at enterprises, including: Concepts; Database for analysis and methods used in financial analysis in enterprises.
The contents of analyzing the situation of capital use at enterprises, including: Analysis of asset situation, analysis of capital use efficiency, analysis of profitability.
Factors affecting and affecting the analysis of capital use in enterprises
CURRENT SITUATION OF THE CAPITAL USE
Overview of Visicons Investment and Construction Joint Stock Company
Vietnamese name: CONG TY CO PHAN XAY DUNG VA DAU TU VISICONS
English name: VISICONS CONSTRUCTION AND INVESTMENT JOINT STOCK COMPANY.
Charter capital: 80,000,000,000 VND (Eighty billion VND)
Actual contributed capital: 80,000,000 VND (Eighty billion VND)
Address: 5th floor - Building 29T2 - Hoang Dao Thuy Street, Trung Hoa Ward, Cau Giay District, Hanoi City.
Website: www.visicons.com.vn
Number of shares outstanding: 8,000,000 shares
Construction Company No 6, also known as Vinasico, was established on June 8, 1991, as a state-owned enterprise It was formed through the transfer and renaming of Construction Enterprise No 2, which was originally part of Vinaconex, a foreign construction and service company This restructuring was carried out under the Decision of the Minister of Construction, marking Vinasico's official entry into Vietnam's construction industry.
05/05/1993: Re-establishing State-owned enterprises: Construction
Company No 6, under Vietnam Construction Import-Export Corporation - Ministry of Construction.
The Vietnam Construction Import-Export Corporation was founded on May 31, 1996, through the reorganization and restructuring of units within the Vietnam Construction Import-Export Corporation and several divisions under the Ministry of Construction This strategic reorganization aimed to strengthen the company's operational efficiency and expand its role in the construction industry in Vietnam.
01/07/2000: Construction company No 6 members of Vietnam
Construction Import-Export Corporation changed into a Joint Stock Company Charter capital: 6,500,000,000 VND (Six billion five hundred million VND).
04/10/2001: Vietnam Construction Import-Export and Construction
Joint Stock Company (Vicimex) changed its name to Vinaconex6 Joint Stock Company (Vinaconex6., JSC).
18/01/2008: Vinaconex 6 was officially listed at the Hanoi Stock
Exchange Center (now the Hanoi Stock Exchange) with the stock code VC6 On January 28, 2008, VC6 shares officially performed the first trading session.
28/04/2016: Implementing the restructuring policy, Vietnam
Construction and Import-Export Corporation (Vinaconex) is no longer a shareholder of Vinaconex6.
27/04/2018: Vinaconex 6 Joint Stock Company (Vinaconex6., JSC) was certified to change its business name to Visicons Construction andInvestment Joint Stock Company (Visicons Construction andInvestment Joint Stock Company – VISICONS)).
Visicons Construction and Investment Joint Stock Company is a Grade
Visicons has been granted the Construction Performance Certificate by the Ministry of Construction, certifying excellence in Grade I and Civil Infrastructure projects The company continuously invests in innovative construction technologies and advanced equipment to enhance capacity, guarantee quality, and meet project schedules and customer requirements Committed to sustainable development, Visicons aims to strengthen its reputation and build a trusted brand within the Vietnamese construction market.
The company consistently provides stable employment and income for its employees while fulfilling its obligations to contribute to the state budget Its production and business targets have steadily grown and consistently exceeded set plans, demonstrating robust performance Additionally, the company's asset value continues to increase, reflecting strong financial health By increasing its charter capital beyond the initial amount, the company has enhanced its financial capacity, enabling it to invest in and execute large-scale projects effectively.
2.1.2 The organizational structure of the company
The company's organizational structure is a unified hierarchy from top to bottom, starting with the Senior Executive Division, which includes the General Meeting of Shareholders, Board of Directors, Board of Supervisors, and the Chief Accountant Beneath this, the Management Division at the office oversees various departments, ensuring efficient coordination across functions At the operational level, the on-site production block comprises the project management team responsible for executing construction and production activities This integrated organizational setup fosters seamless information flow between the Executive Division and departments, promoting unity and cohesive performance within the company.
Diagram 2.1 The organizational structure of Visicons Construction and Investment Joint Stock Company.
CHIEF ACCOUNTANT BOARD OF DIRECTOR
Organize the daily activities of the company apparatus
Carry out administrative communication with the outside
Monitor and perform other tasks related to organization, salary, labor protection
Monitor, update and disseminate legal documents and guidelines on organization and personnel; Monitor and manage HR issues
Advise the company's directors on measures to improve the lives of officials and employees; perform other extraordinary tasks assigned by the Board of Directors.
Managing and operating all financial and accounting activities.
Advise the Board of Directors and the Board of Directors on the financial situation and financial strategies.
Prepare financial statements according to accounting standards and corporate accounting regime; making capital estimates, allocating and controlling capital for all production and business activities of the company.
Forecasting financial data, analyzing information, accounting financial data.
Capital management is to ensure the effective production and business activities and investment of the company.
Debt recovery; securities affairs (shares, shares, shareholders ); Other tasks as assigned by company leaders
Construction organization & management of affiliated construction teams Construction management of construction projects, contracted teams & subcontractors.
Develop a management plan for the warehouse of construction tools, equipment, materials - construction materials at the construction site.
Implement project diary, construction management, warehouse management - materials and equipment, arrangement & management of construction human resources.
Planning the construction progress, making the construction organization plan & labor safety measures.
Preparation of acceptance documents, completion of construction documents, payment documents - final settlement of works.
Develop site rules, labor safety rules & fire prevention.
Organize the protection of the works, implement the site rules, labor safety regulations.
Report on execution of construction progress, report on work incidents, report on execution of construction work, arising work (periodically or irregularly).
Proposing construction materials - construction materials - tools and equipment for construction works.
Internal acceptance, confirmation of contract performance of Contracting Teams & Subcontractors Acceptance of volume and quality of contracted teams & subcontractors.
Department Of Bidding & Contract Management:
Our team provides expert guidance on engineering management and bidding processes, serving as the primary contact for contractor selection, dossier appraisal, and project oversight We oversee quality management, technical issues, and accurate cost estimation for projects financed by the Board Additionally, we conduct research on scientific and technical models, innovative technologies, and new materials to ensure cutting-edge project development Our responsibilities also include presiding over the inspection and supervision of labor safety and environmental sanitation at construction sites, ensuring compliance with safety standards and environmental regulations.
2.1.3 Features of the company's business lines
After 28 years of construction and development, Visicons has been present in all provinces and cities across the country with business products in the main fields of activity such as:
Receive construction contractors for construction works.
Construction of roads, bridges, roads
Construction of all types of foundations
Construction of transmission lines and substations up to 35KV.
Production and trading of construction materials.
Construction and development of houses, real estate business.
Trading in import and export of goods, export of labor, export of construction.
Doing business in other lines of business within the scope of registration in accordance with the provisions of law.
Construction and civil engineering activities are traditional core segments that generate significant revenue and profit for the company The company's financial performance in these areas is clearly reflected in the revenue structure table for operating segments, highlighting their importance to overall business success.
Table 2.1 Revenue structure of the company's operating segments in
Construction and civil construction activities of the company include:
We specialize in contracting for the construction and installation of civil and industrial buildings, technical infrastructure, urban development projects, and industrial zones Our expertise includes constructing foundations of all types, large-scale infrastructure works, road construction, bridge building, and comprehensive transportation networks Additionally, we execute medium-scale irrigation projects such as canals, ditches, dikes, embankments, culverts, and pumping stations, ensuring the development of robust and sustainable infrastructure.
Construction of transmission lines and substations up to 35KV, installation of steel structures, electromechanical equipment, water, air conditioning, signal information, interior and exterior decoration.
Real estate investment and development is a rapidly growing industry with significant profit potential Notable projects include the Vinaconex 6 - Dai Lai Garden Villa, completed in 2019 and transferred to a new investor for further development, as well as the mixed-use office and high-rise residential building H10 - Thanh Xuan Nam, showcasing the company’s strong presence in the market.
Our company operates in diverse fields, including construction project management consulting, goods import and export, labor export, and construction export We ensure all activities are conducted within our registered scope and in full compliance with legal regulations, providing reliable and professional services across these industries.
The company primarily operates in the construction industry, utilizing essential raw materials such as cement, iron, steel, sand, stone, and gravel In recent years, approximately 97% of the construction materials used in their projects are sourced domestically or produced through domestic joint ventures, with only about 3% imported materials This emphasis on local sourcing underscores the company's commitment to supporting domestic industries and ensuring quality control in their construction operations.
Recent fluctuations in raw material prices, particularly construction materials, have steadily increased production costs, challenging the company's operations and impacting its environmental and business performance To mitigate these effects, the company actively negotiates with investors to adjust raw material and labor prices in line with current government policies Additionally, the company utilizes contracted advance payments and its own capital to purchase reserve materials for ongoing projects, ensuring supply stability amidst market volatility.
Over the years, our company has continuously improved by researching, developing, and applying innovative technologies for managing and constructing large-scale, complex, and diverse projects A key focus is on advanced high-rise building construction techniques, aimed at establishing a closed-loop system in construction and installation processes to enhance efficiency and quality.
The company invests in a comprehensive synchronous construction machinery and equipment system, including excavators, bulldozers, transport trucks, tower cranes, generators, cargo cage hoists, and people carriers It also encompasses formworks, bearing and finishing spears, specialized tools, testing and finishing equipment—ensuring all construction needs are met This extensive setup supports various phases such as construction, installation, industrial production, and the execution of high-technical-demanding investment projects.
Through ongoing construction projects and direct subcontracting with leading Japanese contractors such as Sumitomo, Obayashi, Taisei, and Zenitaka at factory projects in industrial parks, the company has gained extensive experience in construction technology This collaboration has also enhanced the company's management capabilities, aligning with the high standards of major global contractors.
Current situation of the capital use analysis of Visicons Construction
and Investment Joint Stock Company
2.2.1 Current situation of databases for the capital use analysis of
According to the survey at the company, the database for the capital use analysis of Visicons JSC., includes information from inside and outside.
The internal data provides comprehensive financial information, including detailed reports such as the balance sheet, income statement, cash flow statement, and notes to the financial statements These reports are updated and available on both quarterly and annual bases, ensuring timely and thorough financial analysis for stakeholders.
External data—including investment trends, socio-economic conditions, exchange rate fluctuations, and business sector information—are analyzed to assess their impact on the company’s capital utilization This comprehensive information helps identify how external factors influence financial strategies and investment decisions.
2.2.2 Current situation of methods for the capital use analysis of
Visicons Construction and Investment Joint Stock Company has conducted a comprehensive analysis of its capital utilization by examining asset status, capital efficiency, and profitability indicators The company primarily relied on comparative methods to illustrate year-over-year changes in these financial criteria, with limited diversification in analytical approaches However, the company has yet to incorporate specific performance metrics tailored to joint stock companies, indicating an area for potential improvement in its financial analysis process.
2.2.3 Current situation of content of the capital use analysis of Visicons
2.2.3.1 The current situation of assets situation analysis of Visicons JSC.,
Based on the annual reports of 2019 and 2020, a survey and asset analysis conducted by Visicons Construction and Investment Joint Stock Company reveal key insights into the company's financial health The analysis focuses on evaluating the company's assets using ratios of short-term and long-term assets, providing a comprehensive view of asset management and liquidity This assessment helps identify trends and areas for improvement in the company's financial stability and investment efficiency.
Long-term assets/Total assets 8.34% 9.07% -0.73%
Short-term assets/Total assets 91.66% 90.93% 0.73%
Table 2.2 The current situation of assets situation analysis of Visicons
Source: Annual report of Visicons Construction and Investment Joint Stock Company
The company's asset structure shifted towards a greater emphasis on short-term assets, which increased to 91.66% in 2020, representing a 0.73% rise from 2019 Conversely, the proportion of long-term assets decreased to 8.34%, a reduction of 0.73% compared to the previous year This strategic shift indicates the company's focus on enhancing liquidity by increasing the proportion of highly liquid short-term assets that can be quickly converted into cash.
2.2.3.2 The current situation of capital effectiveness analysis of Visicons
According to the survey, it was found that Visicons JSC., has not analyzed the company's capital effectiveness, but only analyzed the capital structure.
2.2.3.3 The current situation of profitability analysis of Visicons JSC.,
According to the Annual Report of Visicons Construction and Investment Joint Stock Company, a comprehensive profitability analysis has been conducted The analysis evaluates key financial metrics, including profit before tax on total assets and pre-tax profit on equity, to assess the company's financial performance These indicators provide insights into the company's ability to generate profits relative to its assets and shareholders’ equity, highlighting its overall profitability and financial health.
Profit before tax on total assets = Profit before tax
Pre-tax return on equity = Profit before tax
Profit before tax/Total assets (ROA) 0.0087 0.0132 -0.0044
Profit before tax/Equity (ROE) 0.0566 0.0883 -0.0318
Table 2.3 The current situation of profitability analysis of Visicons JSC.,
Source: Annual report of Visicons Construction and Investment Joint Stock Company
The company's return on assets (ROA) in 2019 is 0.0132 times, by
In 2020, the company's Return on Assets (ROA) declined to 0.0087, a decrease of 0.0044 compared to the previous year, indicating less effective capital utilization In 2019, the company generated 0.0132 dong of after-tax profit per dong of assets, whereas in 2020, this dropped to only 0.0087 dong This decline suggests the company’s investments in 2020 were not as efficient, highlighting the importance of ROA as a key performance metric that combines profit with capital investment The company's ROA remains significantly lower than the industry average of 3.33%, emphasizing the need to improve profitability relative to its assets Since financing through equity typically incurs no fees while debt financing involves interest payments and shareholder financing requires dividends, the company must focus on maximizing profits per dong of capital invested to enhance overall financial performance.
The company's return on equity (ROE) in 2019 is 0.0883 times, by
In 2020, the return on equity decreased to 0.0566, down from 0.0883 in 2019, indicating a significant decline in profitability Specifically, for every 1 dong of equity, the company generated only 0.0566 dong of after-tax profit in 2020 compared to 0.0883 dong in the previous year This ratio is a key indicator used to evaluate the financial performance of investors and senior management, reflecting the company's diminished ability to generate profits from its equity during 2020.
Assessing the current situation of capital use analysis of Visicons JSC.,
Visicons Construction and Investment Joint Stock Company has used a number of financial analysis contents to make management decisions as follows:
The company conducted a fundamental analysis of its asset structure by evaluating the ratio of short-term assets to long-term assets This comparison-focused approach allowed for an assessment of changes over time, highlighting differences between the current analysis period and the base period.
According to the survey, it was found that Visicons JSC., has not analyzed the company's capital efficiency, but only analyzed the capital structure
The company assesses its profitability through key financial ratios, including profit before tax on total assets and return on equity These indicators reflect the company's organizational efficiency, management effectiveness, and overall business performance across different periods By analyzing these metrics, the company gains insights into its operational success and financial health, enabling informed strategic decisions.
Company used the comparative method to compare the items between the analysis period and the base period.
The company has not conducted a detailed analysis of its asset structure or assessed the volatility of its assets This lack of analysis prevents management from identifying areas where assets are increasing or decreasing, ultimately impeding effective asset management and strategic decision-making.
Regarding the analysis of capital effectiveness: The company has not analyzed the effectiveness of capital use.
The company's analysis of profitability is limited to examining ratios such as pre-tax profit to total assets and pre-tax return on equity Relying solely on these indicators of total assets and total equity may not accurately reflect the true efficiency of the enterprise's capital utilization For a comprehensive understanding of profitability, a broader assessment of financial performance is essential.
The company has relied solely on the comparative method to evaluate capital profitability, neglecting factor analysis techniques that identify underlying causes and influencing factors Additionally, it has failed to examine the relationships between financial policies, investment strategies, capital utilization, and cost management in relation to overall profitability Furthermore, the analysis does not consider specific criteria relevant to joint stock companies, limiting a comprehensive understanding of the company's financial performance.
The company primarily relies on internal financial data, including balance sheets, income statements, and notes to financial statements, with limited use of cash flow statements and management reports to assess capital utilization Its analytical database mainly focuses on financial statements within the financial system, lacking broader socio-economic information about production and business environments Additionally, the company has limited access to industry-specific data, such as market conditions, industry averages, and comparable enterprise performance, which are essential for evaluating and benchmarking the financial capacity of its units.
The legal document system often changes, there is no mandatory regulation on financial analysis at enterprises.
Our country has no statistics on the industry average financial indicator system.
The lack of a unified regulation on analytical content and criteria creates significant challenges for the company in establishing consistent standards Without clear guidelines on how to determine analytical criteria from various perspectives, the company struggles to select appropriate evaluation methods and define precise targets This ambiguity hampers effective analysis and decision-making processes within the organization.
The company has not diversified its capital mobilization channels.
The company is a joint stock company but has not been listed on the stock exchange, so the information and analysis reports are mainly used to serve major shareholders.
The company does not have a financial analyst, but the assessment of capital use at the company is done by the Chief Accountant.
The company does not have a process to analyze and evaluate the status of capital use quarterly, annually, and has not assessed limitations in capital management activities at the company.
There has not been a flexible combination between accounting, auditing and evaluation analysis.
Chapter 2 of the thesis has shown the actual situation of analyzing the financial situation at Visicons Investment and Construction Joint Stock Company As follows:
Firstly, give an overview of Visicons Investment and Construction Joint Stock Company.
Currently, Visicons Construction and Investment Joint Stock Company is undergoing a comprehensive analysis of its asset utilization, revealing areas for improved efficiency The company's capital analysis indicates efficient allocation of resources, supporting sustainable growth Additionally, the assessment of financial profitability demonstrates a positive trend, reflecting effective management and strong market positioning, which together underscore the company's solid financial health and investment potential.
Third, state the results achieved, the shortcomings, the causes of the shortcomings in the assessment of the current situation of the company.
SOLUTION TO IMPROVE THE CAPITAL USE
Development orientation of Visicons Investment and Construction
3.1.1 Medium and long-term development strategy
Implement sustainable development goals, preserve capital and strive for profit (level according to each specific period).
Business activities are conducted transparently, clearly defining responsibilities, rights, obligations, and interests They adhere to company policies, regulations, and national laws to ensure compliance Additionally, these activities promote harmony among shareholders, employees, and the state, fostering a responsible and sustainable corporate environment.
Renovating, perfecting and improving the capacity of the management system, operating the production organization, improving the company's capacity, meeting the requirements of the market and being dynamic and integrated.
Prioritize human resource development, training, remuneration, management, attraction and recruitment; step by step improve the quality of human resources.
Invest in equipment, machinery and advanced technology to meet the requirements of construction, installation and management.
Effective financial management is essential for company success, requiring a focused approach to ensure transparency, soundness, and efficiency in allocating and utilizing capital and resources Strong financial oversight supports meeting production and business needs, ultimately fostering sustainable growth and development for the organization.
The company continues and maintains the main business of construction and installation contractors combined with real estate business.
The main production and business targets (output, revenue, profit) strive to grow from 5% to 10% per year on average.
3.1.2 The company's environmental, social and community goals
Improve the quality of products, services and absolute safety, namely: Safer, Cleaner, Neat and tidy, Faster and better quality, Actively responding to the campaign for a clean green environment.
Requires construction sites to seriously implement occupational safety and industrial hygiene measures The company's occupational health and safety management system conforms to the requirements of ISO 45001-2018.
Our company is dedicated to continuously expanding its production and business activities, creating more job opportunities for employees, and delivering high-quality products to society We are committed to fulfilling our tax obligations and contributing to the national economy Additionally, we actively participate in charity and social gratitude activities, aiming to give back to the community and promote social well-being.
Requirements and principles for improving the capital use analysis
3.2.1 Requirements for improving the capital use analysis of Visicons
Firstly, ensuring the accuracy and timely provision of full economic and financial information to interested subjects.
Effective decision-making in a market economy relies on timely and adequate economic and financial information provided to managers Investors require complete and timely financial data to assess business viability before engaging in investment and lending activities Given the diverse and complex nature of business information, scientific processing methods like financial analysis are essential to help users make informed decisions aligned with their objectives In Vietnam, challenges such as inadequate regulations and limited awareness among businesses about the benefits of external information sharing hinder effective financial analysis Therefore, improving financial analysis practices involves ensuring the provision of timely, complete, and accurate information to all interested parties.
To effectively analyze the financial situation of Visicons Investment and Construction Joint Stock Company, the assessment must align with its unique production and business activities As a joint stock company with specific management and financial structures, tailoring the financial analysis to these characteristics ensures more accurate insights This approach enhances practical management efficiency by providing relevant financial information that reflects the company's operational realities.
To ensure effective financial management, it is essential to align financial analysis with Vietnam's laws and policies on financial regulation This approach must reflect current economic and social development trends while also supporting national growth Additionally, financial management should adapt to the demands of global economic integration to promote sustainable development and compliance with international standards.
To effectively analyze the financial situation, content must be feasible and actionable, ensuring the plan can be successfully implemented to achieve high benefits It is essential to tailor financial analysis to each country's unique policies, management requirements, and socio-economic conditions Considering the diverse economic, political, social, and cultural factors of each nation enhances the accuracy and relevance of financial assessments, leading to more successful strategic decision-making.
3.2.2 Principles for improving the capital use analysis of Visicons JSC.,
Completing the analysis of capital use at Visicons Construction and Investment Joint Stock Company should adhere to the following principles:
Visicons Construction and Investment Joint Stock Company operates in Vietnam and must fully comply with national policies and regulations, under the oversight of competent regulatory authorities Therefore, its capital utilization analysis must align with Vietnamese laws and the country's financial management policies Additionally, as Vietnam continues to refine its economic and financial management mechanisms amidst international economic integration, this necessitates that the company's capital use analysis reflects development trends and management requirements to ensure compliance and strategic adaptability.
Principles of honesty and responsibility
Accurate and objective presentation of a company's capital usage analysis is essential for effective decision-making Clear communication of this information ensures that users understand its core content, facilitating better insights Analysts must demonstrate responsibility and discipline to conduct efficient and reliable capital usage assessments Upholding honesty and accountability in financial analysis supports managers in making informed decisions, managing risks effectively, and identifying operational errors to improve overall company performance.
Principles of providing appropriate information
Completing the analysis of the use of capital at the company helps to provide appropriate information for managers to make correct and timely decisions.
The principle of feasibility and effectiveness
Each business type and management mechanism requires a tailored information system to effectively analyze capital utilization Implementing a specialized information system is essential for collecting accurate data, ensuring comprehensive analysis of capital use across the company This approach facilitates better decision-making and enhances the feasibility of financial assessments, ultimately supporting optimized resource management.
When analyzing capital utilization, it is essential to assess both the costs and efforts involved relative to the results achieved The effectiveness of capital analysis is based on the principle of minimizing expenses, meaning that processes should be completed with the lowest possible costs while achieving the desired outcomes This approach ensures optimal resource allocation and cost-efficiency in financial management.
Ensuring the principles of feasibility and efficiency in analyzing the company's capital use is essential to maximize the effectiveness of management tools and meet organizational requirements Adhering to these fundamental principles guarantees a comprehensive and effective capital utilization analysis at Visicons Construction and Investment Joint Stock Company, both from a theoretical perspective and in practical implementation.
Solutions to improve the capital use analysis of Visicons JSC.,
3.3.1 Improving the database for the capital use analysis of Visicons
The financial statement system and management reports serve as the primary and most crucial databases for capital use analysis at Visicons JSC However, to ensure comprehensive insights, analysts must regularly supplement this core data with additional information from external sources outside the company.
For a comprehensive analysis, it is essential for analysts to gather extensive information on the company's capital usage, including insights into the economy, currency, taxes, and the legal environment Additionally, understanding the construction industry, macroeconomic policies, industry average metrics, market conditions, and competitors is crucial Factors such as inflation and exchange rates significantly influence business operations, and integrating this data enables a thorough assessment of the enterprise's capital utilization, ultimately enhancing the accuracy and significance of the analysis results.
The company should continually promote and utilize its existing reporting systems to ensure accurate financial communication Additionally, it is essential to enhance the company’s Notes by including detailed information about various types of capital, receivables, and inventories This approach improves transparency and provides stakeholders with comprehensive insights into the company’s financial position Incorporating these details aligns with best practices in financial reporting and supports compliance with applicable accounting standards.
In today’s competitive global market, building a comprehensive big data set is essential for businesses to leverage modern technology effectively Utilizing big data reduces analysis time and significantly cuts costs, enabling deeper and more detailed insights This technological advantage allows enterprises to make quick, accurate decisions—particularly in high-risk situations—and strengthens their competitive edge both in the short term and long term.
3.3.2 Improving the methods for the capital use analysis of Visicons
Completing the comparison method within the company:
The company has employed the comparative method; however, its analysis is limited to comparing only two periods or consecutive intervals, which does not adequately capture the overall trend of indicator changes Additionally, the evaluation lacks benchmarking against other enterprises in the same construction industry, reducing the comprehensiveness and accuracy of the insights derived.
To maximize the effectiveness of this method, it is essential to broaden the comparison base by analyzing data over multiple years and benchmarking against industry averages This approach reveals clear trends and performance changes within the company and the industry Additionally, careful attention should be paid to the significance of each analytical criterion to accurately evaluate each enterprise's performance within the industry.
Adding some other analytical methods:
This article discusses various analytical methods used to evaluate the capital utilization of Construction Joint Stock Company, including Dupont analysis, graph and trend analysis, sequential replacement (exclusion), difference analysis, and detailed division methods For instance, the sequential replacement method effectively identifies the impact of individual factors on key financial criteria, while the factor analysis method assesses the influence of each factor separately Additionally, the application of the Dupont method enhances the understanding of how aggregate financial indicators decompose into interconnected financial metrics, providing insights into their mutual relationships These diverse analytical approaches offer comprehensive tools for in-depth financial analysis and strategic decision-making.
Additional methods of growth analysis and forecasting:
Implementing this tool enables companies to effectively identify, measure, and forecast development trends, providing valuable insights into future opportunities and potential threats affecting business operations By analyzing data from production and financial activities, this method allows businesses to accurately estimate the value of different operational units Selecting the appropriate forecasting approach—whether qualitative or quantitative—depends on the specific context and conditions of each enterprise, ensuring tailored and reliable predictions for strategic decision-making.
Additional methods of factor analysis:
Analyzing the factors influencing a joint stock company's performance involves examining both subjective and objective elements that impact profitability This method focuses on identifying key internal and external factors that drive the company's financial success, providing a comprehensive understanding of what influences its profitability By evaluating these determinants, businesses can develop strategic approaches to enhance overall performance and ensure sustainable growth.
Subjective factors influencing a company's profitability encompass all controllable resources that enable the company to identify and leverage business opportunities Assessing the potential of an enterprise showcases its market strength, allowing for the development of effective strategies and business plans Key elements of a business's potential include its ability to maximize resource utilization, seize high-efficiency opportunities, and strengthen market position for sustained profitability.
The financial performance and management capacity of an enterprise are evaluated based on its financial scale, structure, and ability to operate efficiently Financial scale is represented by total assets and capital that form the company's assets, including equity and mobilized capital, as well as market size indicated by total turnover The financial structure encompasses financial leverage, fixed asset investment ratio, funding sources, and cost structure, which collectively influence the company's operational efficiency and asset management capabilities A robust financial management capacity is demonstrated by the enterprise’s ability to repay both short-term and long-term debts, sustain growth, and effectively manage financial risks to ensure long-term stability and success.
Our company's staff are highly qualified and experienced professionals who meet all enterprise requirements and consistently deliver successful task completion They demonstrate loyalty to the company, possess specialized skills, and are capable of uniting effectively Dynamic and proactive, our team members know how to leverage and capitalize on business opportunities to drive growth and success.
Effective business administrators play a crucial role in driving rapid and sustainable company growth Their strategic management skills and leadership significantly impact the company's success, profitability, and employee trust Successful enterprises depend on talented managers with strong management styles who develop effective business strategies To excel as an administrator, one must possess expertise in human resource management, finance, and problem-solving abilities to navigate company challenges effectively.
The invisible potential that drives business power in the market is reflected in the ability to influence customer choices, acceptance, and purchasing decisions Intangible factors such as company reputation, brand popularity, effective communication, and the prestige of leadership play a crucial role in creating favorable conditions for sales These elements also enhance competitive advantage by attracting customers and expanding market reach, positioning the business as a trusted and reputable entity in the industry.
Geographical location, physical facilities of the enterprise:
Effective utilization of physical and technical assets—such as offices, factories, and specialized equipment—enables businesses to attract customer attention and streamline supply, purchasing, and inventory operations These fixed assets are essential for operational efficiency and provide competitive advantages in the market By optimizing these resources, enterprises can enhance overall business performance and meet customer demands more effectively.
Conditions for implementing the solution
On the side of the State and authorities:
The successful analysis of capital utilization at Visicons Construction and Investment Joint Stock Company relies not only on the company's internal efforts but also on the coordinated support from the State and relevant authorities, ensuring comprehensive and effective financial management.
The State needs to create a healthy business environment and a stable macro-economy.
A reliable and standardized forecasting system is essential for accurately monitoring market conditions, including material and fuel prices This enables companies to develop timely and informed business plans, ensuring they can reserve raw materials efficiently and assess the reasonableness of price changes Implementing such a system enhances market transparency and supports more strategic decision-making across industries.
The State should develop targeted policies and guiding documents for each industry to support enterprises in analyzing their capital utilization effectively For publicly listed companies, specific regulations must be established to standardize analysis content, criteria, and evaluation methods, ensuring transparency in financial information Implementing these measures will enable accurate comparison of financial positions between companies, fostering clarity and trust in financial reporting.
The government must prioritize the accuracy and reliability of statistical data, ensuring transparency by publicly sharing key indicators across various sectors and industries Providing accessible and comprehensive statistical information creates a solid foundation for informed analysis and effective decision-making, ultimately supporting economic growth and development.
On the side of Visicons Construction and Investment Joint Stock Company:
To ensure effective financial planning, capital demand forecasting, and the development of capital mobilization policies, accurate and practical demand projections are essential Achieving these relies on comprehensive research and thorough analysis of capital utilization, which leads to more precise market ability assessments Therefore, for a company to optimize its financial strategies, it must focus on conducting detailed research and analyzing capital use to produce reliable demand forecasts and enhance market capability evaluations.
Raise the level of interest of the Company's leadership
The company should establish a dedicated financial analysis department responsible for assessing the efficiency of capital utilization and providing objective, regular evaluations Separating this function from the accounting department ensures unbiased insights, enhances the company's transparency, and supports more accurate decision-making Implementing a specialized financial analysis team improves overall financial accuracy, boosts company reputation, and aligns with best practices for transparent corporate governance.
The company must implement strategic personnel adjustments and enhancements to optimize operational efficiency It is essential to advise the director throughout the contract negotiation and signing process to maximize revenue and increase profits These efforts are crucial for ensuring sustainable growth and long-term stability All employees are encouraged to contribute their utmost effort and dedication to support the company's goal of improving overall business performance and achieving continued success.
The company should implement advanced accounting software solutions to enhance the efficiency of its financial and accounting operations Integrating new information technology into management processes will streamline workflows and improve accuracy Additionally, upgrading computer equipment, particularly for the accounting department, is essential to support effective financial management and ensure the organization's technological modernization.
Improve the qualifications of the staff performing the analysis:
Company analysts must possess strong professional skills, comprehensive knowledge of regulations, financial management policies, and current tax policies, while also understanding both domestic and international economic conditions They should have the ability to forecast future trends and assess the company's current situation to identify causes of financial challenges and develop effective solutions Regular training and knowledge enhancement at domestic and foreign facilities are essential to keep analysts updated and effective in their roles.
Hiring independent financial analysts enhances the objectivity and accuracy of company analysis results, providing high-quality advice aligned with the overall financial health and specific capital needs Their expert reports serve as valuable learning tools for military personnel within the company, helping them gain experience and improve financial decision-making.
Establish clear objectives and define the scope of analysis to ensure comprehensive and systematic data and document collection, resulting in accurate and timely information Implementing structured analytical planning and criteria helps focus the analysis, improving overall effectiveness and reliability.
Completing methods of assessing and analyzing capital use.
In Chapter 3, the thesis has completed the analysis of capital use at Visicons Construction and Investment Joint Stock Company, specifically as follows:
Firstly, state the development orientation of Visicons Construction and Investment Joint Stock Company.
Second, state the requirements and principles for completing the analysis of capital use at Visicons Investment and Construction Joint Stock Company.
Third, complete the analytical method and content of analyzing the capital use situation at Visicons Investment and Construction Joint Stock Company.
Fourth, the conditions for implementing solutions to complete the analysis of capital use at Visicons Construction and Investment Joint Stock Company are outlined.
In the competitive market economy and the increasingly integrated global marketplace, businesses must engage in effective activities and maintain strong financial capacity to survive and thrive Financial statement analysis is a crucial management tool that enables business leaders to evaluate their financial health and make informed decisions In developed countries, the financial market relies on thorough financial analysis to determine enterprise value, issue stocks and bonds, and support capital allocation Regular and transparent financial analysis, conducted internally and by professional appraisal firms, ensures reliable information for managers, investors, and stakeholders, enhancing decision-making and investment effectiveness.
This graduation thesis, titled "Complete Analysis of Capital Use Situation at Visicons Construction and Investment Joint Stock Company," results from extensive theoretical research and an in-depth understanding of the company's actual financial practices The author, with the dedicated guidance of Dr Dao Hong Nhung, thoroughly examined the capital utilization situation at Visicons, integrating both theoretical insights and real-world data The research comprehensively addresses the company's capital management, highlighting key findings and offering valuable recommendations Overall, the thesis effectively combines theoretical analysis with practical evaluation to provide a clear understanding of Visicons' capital use efficiency.
Overview of general theories on analyzing the situation of capital use in joint-stock companies.
Analysis of the situation of capital use at Visicons Construction and Investment Joint Stock Company has been reviewed and validated.
Based on comprehensive theoretical research and practical insights, the author offers strategic directions and effective solutions to enhance capital utilization analysis at Visicons Investment and Construction Joint Stock Company.
This article emphasizes the importance of completing a comprehensive capital use analysis for Visicons Construction and Investment Joint Stock Company to enhance production efficiency and strengthen financial management It highlights that a thorough understanding of capital utilization enables better decision-making, improves operational performance, and supports sustainable company growth While initial results are promising, the analysis currently serves as a foundational step, and further improvements are necessary Feedback from experts is welcomed to refine the study and ensure continuous development.