tiểu luận report analyze the financial statements of a company company vietnam milk joint stock company vinamilk

2.3 Cash flow statement...42.4 Retained earnings statement...6III.ANALYZE INCOME STATEMENT, BALANCE SHEETS AND CASH FLOW STATEMENT OF VINAMILK:...63.1 Analysis of balance sheet:...63.2 A

DANANG UNIVERSITY OF ECONOMICS

Group members: Tran Dang Hué Binh

Lé Hoan Thao Mién

Tran Lé Na

Nguyễn Phương Linh

Lê Thị Ánh Minh

Danang, May 2023

Report: Analyze the financial Statement of a company Group 2, 48KO1.1

II ANALYZE INCOME STATEMENT, BALANCE SHEETS AND CASH FLOW

V ANALYZE FINANCIAL RATIOS: 18

3.1 Gross Profi{ MaTgEIn: c1 21112 12112 v TS 1511 1H TH ng tà He ệt 18 5.2 Debt-To-Equity Ratio (D/E): - S12 21112111 12 vs n1 HH HH key 19 3.3 Recturn on assefs (RĐỒA): Q02 20022112 111211 H111 21T x Hà nrky 19 3.4 Return on Equtty (RO): L2 0 1211122112111 112511511101 k1 HH HH ớt 20

VI APPENDIX 22

Report: Analyze the financial Statement of a company Group 2, 48KO1.1

Vietnam Dairy Joint Stock Company (Vinamilk) is a Vietnam- based food manufacturer The company's primary business activities include the production, marketing, and distribution of dairy products, particularly milk in all its forms and other products produced from it, as well as healthy food and non-alcoholic drinks Additionally,

it offers farmers other technical assistance for breeding and growing operations, runs a polyclinic for medical treatment, and offers packaging and transportation services The business started out as the government-owned Southern Coffee - Dairy Company in 1976, changing its name to the Vietnam Dairy Company in 1993 Following its [PO on the Ho Chi Minh Stock Exchange in 2003, the business officially changed its name to Vietnam Dairy Products Joint Stock Company

Vinamilk is a prominent company in Vietnam at the moment, reaching over 31 countries and bringing in over 1.5 billion USD annually It also makes important contributions to the nation and its citizens Vinamulk 1s the first business from Vietnam to appear on Forbes Asia's list of the 200 Best Under A Billion, which recognizes 200 of the region's best small and midsize businesses Vinamilk has grown into an economic success story in the wake of Vietnam's decision to join the WTO after nearly 40 years of development with policies that encourage the use of new technology and innovation Vinamilk desires to be one of the most favorite brands in every region and territory Their business philosophy is "We keep in our mind and our heart that the quality and innovation are always our most important companions We act with a customer -centered approach and commit to responding to all their needs” To preserve its consistently leading position in the local market and increase shareholder value, Vinamilk also keeps expanding its current geographic reach and product line

IL UNDERSTAND FOUR TYPES OF FINANCIAL STATEMENTS:

IH Balance sheet:

The balance sheet is an important document that details a company's assets, liabilities and shareholder equity Each component of the balance sheet breaks down like this:

- Assets: Assets will include items like property, inventory, cash and all transactions through a company's accounts receivable The assets will typically show up on the left side of the balance sheet, while liabilities are listed on the nght side of the document

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- Liabilities: Liabilities will include ey COMPUTET

tracks, including payments made on lon

- Shareholder equity: Shareholder equity

assets after the company pays its liabilities The difference between a company's assets and its liabilities will be the shareholders’ equity

o Businesses will use the balance sheet to give investors an idea of their profitability and business performance to secure investments and funding

IV Income statement

- The income statement records a company's net income or its net loss and is the document companies use to track all revenue coming in and all expenses going out If a company's income statement shows that the expenses it paid for a given time period were more than the revenue gained, the company will report a loss on the income statement for that period

- Typically, businesses and organizations report their net income or loss every quarter, but many companies track their income statements every month Often, an income statement will include various categories, depending on the nature of a company's operations This financial information can include:

o Sales amounts: Sales revenue includes all net profits made from selling products or services

o Operating expenses: Operating expenses will include things like rent for office space, marketing and advertising or the costs of running equipment

to produce goods or provide services

o Non-operating expenses: Non-operating expenses include things like one- time purchases (such as purchasing new office equipment) and interest companies accrue on borrowed funds

- Businesses use this document for determining their overall operational performance over a given period of time Additionally, companies typically use the income statement to determine which areas of their businesses are over or under budget and plan future budgets according to the information on this document

V Cash flow statement

- The cash flow statement is the financial document that companies use to record all incoming cash flow from business operations and all outgoing cash flow for

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Report: Analyze the financial Statement of a company Group 2, 48KO1.1

expenses and operational costs Essentially, the cash flow statement takes the net income from the balance sheet and reconciles this into cash figures The cash flow statement includes all aggregate financial data about the transactions that occur within a business The main elements that companies track within a cash flow statement include:

0 Net income:

The net income from the balance sheet represents the total amount in profits

a company makes after it deducts its expenses This will include revenue a company makes but hasn't collected yet, expenses the company accrued but hasn't paid yet and other financial adjustments like depreciation

Operational cash flow

Operating cash flow is the difference between cash a company receives and cash a company pays out for expenses Operational cash flow can include things like depreciation, accrued expenses and regular expense payments business processes

Investment cash flow

If companies make regular payments to investment activity, the cash flow statement will show it Investments include things like mergers, purchases

or sales of assets or dividends the company earns

Financing activities

Financing activities a company records on its cash flow statement include receipts from venture capital, funding from outside investors or bank loans Final cash amount

This section of the cash flow statement represents a company's actual cash value that it accrues by the end of the reporting period If this amount is a positive result, it represents profit If it's a negative amount, it represents a loss

A business or organization uses the cash flow statement when it wants to showcase how well it manages its cash value or cash position This refers to how well the business can generate revenue to pay off debt and fund operational expenses Additionally, tracking incoming and outgoing cash flow gives companies insight into their performance, liquidity and long-term ability to keep generating revenue

Report: Analyze the financial Statement of a company Group 2, 48KO1.1

VI Retained earnings statement

- The statement of retained earnings details the changes in a company's earnings it holds onto after a specific time period This financial document reconciles the starting and ending earnings, or profits, for the company's reporting period and uses net income and other financial information from the company's other financial documents Additionally, this statement often details how the company uses retained earnings and includes financial data such as:

o Beginning retained earnings: The beginning retained earnings are the company's previous period's earnings and will show up on the balance sheet

as shareholder equity

o Adjustments: Adjustments reflect any changes the company makes to its financial statements to correct overestimations or underestimations and changes when a company receives tax benefits

o Net income: The net income is the resulting value after companies pay taxes, expenses and dividends

o Dividends: Dividends represent a company's profits that owners, or shareholders, collect from the company's assets

o Ending retained earnings: Once these figures are calculated, the resulting value is the ending retained earnings This value represents a company's actual cash value at the end of the reporting period, and it will become the beginning retained earnings value for the next reporting period

- Companies use the statement of retained earnings in two ways: to calculate how much shareholders receive from profits and to gain insight into how shareholders should distribute these amounts For instance, a company's retained earings statement will show how much of their assets go to the company's owners (shareholders) The owners can then decide to invest in future projects or retain the eamings to distribute to shareholders

Analyze Income Statement, Balance Sheets and Cash Flow Statement

FLOW STATEMENT OF VINAMILK:

VIII Analysis of balance sheet:

VIILI.I Horizontal analysis:

Report: Analyze the financial Statement of a company Group 2, 48KO1.1

Report: Analyze the financial Statement of a company Group 2, 48KO1.1

ASSETS 36,109,910,659,785 | 31,560,382,174,201 | ¿ „1o soe ags sgq | -12⁄60%

1 Cash and cash |, 349 551 874.348 | 2,299,943,527,642 | -48,608,346,706 -2.07%

Report: Analyze the financial Statement of a company Group 2, 48KO1.1

RESOURCES 53,332,403,438,219 | 48,482,664,236,220 4,849,739,201,999 -9.09%

In 2022, Net Revenue will increase thanks to the timely supply of goods in stock

to the market, specifically im 2022, inventories are decreased by 1,235,508,237,900 VND, equivalent to a decrease of 18.24% compared to 2021 Consumption of dairy products in the market in recent times will increase In addition, this also shows that the Company has built the right business plan and market research

Short-term receivables tend to increase over the years with the growth of Net Sales and account for a stable proportion in total short-term assets (specifically, in 2022,

it increases by 4.78% compared to 2021) This shows the possibility that the Company is selling many goods and products, has good growth in revenue and has more customers, however, the Company may be misappropriating capital from customers, It is possible that in order to promote product consumption, the Company must come up with policies to prolong the debt collection time with its partners This can lead to the Company being slow to collect money and quickly incurring debts that are difficult to recover

VIIL1.2 Vertical analysis:

Report: Analyze the financial Statement of a company Group 2, 48KO1.1

Report: Analyze the financial Statement of a company Group 2, 48KO1.1

the fluctuations of asset items at Vinamilk Dairy Joint Stock Company, we will analyze the influence of asset parts classified into two main categories as short- term assets and long-term assets:

- Short-term assets in 2022 will decrease by 4,549,528,485,584 VND compared to

2021, corresponding to a decrease rate of 12.60%

- The reason is that cash and cash equivalents in 2022 decreased by 48,608,346,706 VND compared to 2021, corresponding to a decrease of 2.07% and other short- term assets in 2022 increased by 67,894,431,769 VND in 2021 compared to 2021

by 48.32% increase

- Long-term assets in 2022 decreased compared to 2021 by 300,210,726,415 VND, equivalent to a decrease rate of 1.74% The reason is that fixed assets in 2022 decreased compared to 2021 at 803,390,914,909 VND, corresponding to a decrease rate of 6.32 %

- The item Fixed assets decreased compared to 2021, showing that the company is gradually buying, investing, and renewing machinery and equipment in 2022, indicating that the company is improving its competitiveness, focusing on investment on the quality of the product

- Total assets in 2022 decreased by 4,849,739,201,999 VND, corresponding to a decrease of 9.09% compared to 2021 This shows that the scale of the business still tends to grow, production activities are still stable, but the output is still stable The presence of domestic and foreign brands is threatening Vinamilk's revenue General comment: The dairy industry in Vietnam is very developed, which means more competition

- In the period of 2021-2022, total capital tends to decrease Specifically, in 2021: the company's total assets is 53,332,403,438,219 VND and in 2022 is decreased to 48,482,664,236,220 VND

- Looking at the table, we can see that, from 2021-2022, the structure of liabilities and equity structure both decreased

- Although owners' equity tends to decrease over the years, it still accounts for over 60% of total capital, which is always larger than liabilities The company operates mainly on an internal financial foundation, in addition, it has recently

Report: Analyze the financial Statement of a company Group 2, 48KO1.1

been dependent on external funding sources Therefore, based on the analysis

of the proportion of Liabilities and Equity, it shows that the enterprise is operating based on simultaneously the capacity obtained by using the owner's investment capital and the internal resources of the enterprise strong business

- Liabilities in 2022 decreased compared to 2021 by 1,816,143,307,700 VND, corresponding to a reduction rate of 10.39% The reason is that short-term debt

in 2022 decreased by 1,759,993,913,995 VND, corresponding to a decrease of 10.31% compared to 2021 This shows that in this period the company is trying

to make the most of and exploit the benefits from sources of investment thanks

to large financial leverage, appropriating capital of other enterprises to create business advantages Short-term debt is a low-cost resource, if the company knows how to use them to create a high-profit rate, this can be a premise and motivation for the Company to break through, create outperform the competition

- Equity in 2022 decreased compared to 2021 is 3,033,595,894,299 VND, corresponding to an increase of 8.46% The reason is that after-tax profit has not been distributed, m 2022, it decreased by 2,426,700,810,174 VND, equivalent to a decrease of 18.78% compared to the previous year

- 2021 shows that the company has not performed well in business, and the company is not profitable

- ‘Total capital in 2022 decreased by 4,849,739,201,999 VND, corresponding to a decrease of 9.09% compared to 2021

IX Analysis of income statement:

IX.1.1 Horizontal analysis: