DHG DHG In the case of DHG company, overall, the Debt to equity ratio 1 Debt ratio Fixed to worth ratio 40,00% debt-to-equity ratio of DHG showed a decreasing trend during the period fr
DGC 10 2 COSt Rati0S ce cee ốốố ố ố ốố ốẻ.ốốố
DGC In analyzing DGC companies, overall, the
The debt-to-equity ratio of DGC showed an uneven decreasing trend from 2018 to 2020, indicating a reduced reliance on debt for financing business operations In 2018, the ratio peaked at 49.43%, reflecting a high level of debt usage, which is generally viewed as a positive sign of financial health However, by 2019, this ratio dropped significantly to 36.80%, demonstrating a shift towards less debt reliance in financing operations.
10 increase to 44.47%, indicating that the company raised a substantial amount of capital for planned business expansion and future growth
Over the past three years, the company's debt-to-equity ratio has consistently stayed below 1, reflecting effective financial management and a strong capacity to repay debts while navigating higher risks This stability also suggests potential for increased profitability It is essential for the company to sustain this favorable ratio to ensure ongoing financial health.
The debt ratio of DGC has exhibited an uneven decreasing trend over the years, reflecting a modest improvement in the company's debt repayment capacity In 2018, the debt ratio was 33.08%, indicating a need for enhancement in debt management However, by 2019, this ratio decreased to 26.09%, signaling improved repayment ability In 2020, DGC experienced a slight increase of approximately 3.88% in its debt ratio, potentially due to plans for future growth or minor impacts from the early stages of the COVID-19 pandemic.
From 2018 to 2020, the leverage ratio of DGC Company's fixed-rate portfolio exhibited a notable decline, decreasing from 76.23% to 53.95% This downward trend suggests negative fluctuations in the company's overall value In contrast, the loan interest payment ratio showed a different trajectory, starting at 36.44 times in 2018, dropping to 22.20 times in 2019, and then significantly rising to 51.52 times in 2020 This increase can be linked to the pandemic, during which banks lowered loan interest rates, allowing businesses to benefit from preferential rates Consequently, this shift indicates an improved capacity for DGC Company to meet its financial obligations.
Compare solvency ratios’ growth rate of 3 businesses:
COMPARE LEVERAGE RATIOS' GROWTH RATE 2018 - 2019
Debt to equity Debt ratio Fixed to worth Interest ratio ratio coverage
COMPARE LEVERAGE RATIOS' GROWTH RATE 2019 - 2020 Debt to equity Debt ratio Fixed to worth Interest ratio ratio coverage
During the 2018-2019 period, all three companies experienced negative growth in their debt-to-equity ratios, with DHG facing the most significant decline, indicating that their equity surpassed total debt and highlighting accumulated losses However, in the 2019-2020 period, there was a notable recovery, as the debt-to-equity ratios for the companies improved by 8.22%, 0.59%, and 20.83%, respectively.
During the 2018-2019 period, the debt ratio of three companies experienced negative fluctuations due to economic changes However, from 2019 to 2020, all companies showed significant recovery: DHG's debt ratio improved from -26.51% to 6.60%, TRA increased from -4.95% to 0.42%, and DGC rose from -18.67% to 14.42%, indicating positive financial trends for each company.
The leverage ratio revealed significant disparities among the three companies, with DHG showcasing remarkable growth from 13.68% to 18.14% over three years In contrast, TRA and DGC faced substantial declines, with percentages ranging from -9.59% to -21.73%, indicating critical financial leverage challenges for DGC that must be addressed for a successful recovery.
Between 2018 and 2020, the loan interest payment ratios of three companies revealed significant changes, particularly during the pandemic DHG maintained a stable ratio of 21.54%, while TRA and DGC faced declines of -30.04% and -39.09%, respectively, due to regional economic fluctuations and pandemic impacts However, from 2019 to 2020, all three companies experienced a remarkable recovery in their loan interest payment ratios, with DGC showing an impressive turnaround from negative growth in 2018-2019 to a 132.07% increase in 2019-2020, reflecting enhanced loan repayment capabilities Overall, all indicators fluctuated from 2018 to 2019 but demonstrated a recovery trend in the subsequent year.
DHG 13 2.2 TRA _ 2.3 DGC 14
= From 2018 to 2019, cost of goods sold to
Oh nica monbkses: ẽŸ kg seo: TỔ Mannokrcgeerbsia sales increased from 55.78% to 56.06%, an sẽ increase of 0.82% But by 2020, there was a
60% SN $6 064% decreasing trend, down 4.29% compared to
2019, to only 51.77% This shows that the ˆ 410% company has made improvements in the production process, reducing raw material ms me 1m
In 2020, DHG focused on reducing production costs by implementing various strategies, such as optimizing production processes, minimizing raw material waste, and enhancing the use of modern technology These efforts not only improved productivity but also significantly lowered labor costs.
Over the past three years, DHG has experienced a slight decline in selling expenses, decreasing from 18.67% in 2018 to 18.62% in 2020 This reduction may be attributed to the company's diversification of distribution channels and optimization of its distribution network, which have effectively lowered marketing and transportation costs, ultimately enhancing DHG's profitability.
In 2018, DHG reported its lowest management expense to sales ratio in three years at 7.36%, likely due to its developmental stage requiring a smaller management structure By 2019, this ratio rose to 8.57%, indicating DHG's expansion through new branches and increased management investment However, in 2020, the ratio decreased to 8.06%, reflecting a 0.51% decline from the previous year.
Management costs in 2020 are still relatively high compared to 2018 DHG needs to continue to find ways to control costs to maintain profitability and competitiveness
TRA Cost gods sold to sales) Selling expense to sales Management expense to sales 48.03%
According to TRA's chart from 2018 to
In 2020, the cost of goods sold (COGS) as a percentage of sales saw a slight decrease from 48.03% to 45.02%, before rising again to 45.97%, marking the highest COGS/revenue ratio in three years This indicates that production costs constitute a significant portion of revenue, potentially due to early-stage production inefficiencies, high raw material prices, or instability in new products Conversely, selling expenses as a percentage of sales exhibited an opposing trend, starting at 27%.
From 2018 to 2019, TRA experienced a rise in efficiency, with production processes improving and costs decreasing, as reflected in the increase from 28.63% to 26.61% in 2020 However, the management expense to sales ratio grew slowly from 12.37% to 13.32% during the same period Despite these efforts, TRA's cost of goods sold (COGS) as a percentage of revenue remains high compared to industry peers, indicating the need for continued improvements to enhance profitability.
Hh Cost of goods sold to sales J Selling expense to sales (QJ Management expense to sales
Between 2018 and 2019, DGC experienced an increase in the cost of goods sold as a percentage of sales, rising from 77.63% to 80.23%, marking a 2.6% increase However, in the following period of 2019 to 2020, this rate declined to 76.28% Overall, the trend indicates a decrease in the cost of goods sold relative to sales.
15 slightly The lower this indicator, the more beneficial it is for bustnesses, so DGC is selling products at prices higher than production and distribution costs
In 2018, DGC had the lowest selling expense in 3 years, at 5.61%, possibly because during, this period DHG focused on production, not paying much attention to sales By
In 2019 and 2020, DGC experienced a rise in selling expenses by 6.16% and 6.22%, respectively, reflecting the company's commitment to market expansion and enhanced marketing strategies As sales costs continue to rise annually, it is essential to monitor and manage these expenses closely to protect profit margins.
In 2018, businesses experienced their lowest management expense to sales ratio in three years; however, this figure surged to 1.98% in 2019, likely due to DHG's expansion, which necessitated increased costs for management infrastructure and personnel, as well as investments in new management systems By 2020, this expense decreased significantly to 1.68%, attributed to efforts in streamlining operations, optimizing processes, leveraging technology, and potentially engaging more cost-effective management service providers The notable year-to-year fluctuations underscore the importance of closely monitoring management costs to maintain stability and sustainability Despite the reduction in 2020, management expenses remain higher than in 2018, indicating that DHG must continue to explore strategies for cost control.
Compare cost ratios’ growth rate of 3 business:
COMPARE COST RATIOS' GROWTH RATE 2018 - 2019 Cost of goods sold to | Selling expense to | Management expense to sales sales sales
COMPARE COST RATIOS' GROWTH RATE 2019 - 2020 Cost of goods sold to | Selling expense to | Management expense to
DHG TRA DGC sales -7,65% -4,92% 2,11% sales -7,04% 5,61% 0,94% sales -15,24% -5,87% 2,23%
Over the past three years, DHG has maintained the highest cost of goods sold, though it has decreased from 56.06% in 2019 to 51.77% in 2020, indicating improved control over raw material and production costs Despite this progress, DHG's costs remain higher than those of TRA and DGC, highlighting ongoing challenges in price competition and product quality Similarly, DGC has experienced consistently high costs, exceeding 75% of revenue, suggesting significant issues in production cost management, potentially due to expensive raw materials or complex processes While rising costs are generally undesirable, they may reflect efforts to expand production capacity in response to the pharmaceutical industry's demands during Vietnam's epidemic peak.
TRA has achieved the lowest cost of goods sold in three years, maintaining a range of just 45% to 46%, which provides a significant cost advantage over competitors This allows TRA to set higher selling prices while still enjoying substantial gross profit and profit margins However, the company must also consider other critical factors, including product quality, market share, and brand reputation, to sustain its competitive edge.
During the pandemic, businesses have shown relative stability, particularly DHG, which maintained a consistent selling expense ratio over three years, fluctuating between 17.63% and 18.67% Although DHG's selling expenses decreased by 5.58% in 2019 compared to 2018, they rebounded with a 5.61% increase in 2020 Despite this stability, DHG's ratio remains higher than that of DGC, indicating potential for improved sales efficiency through reduced advertising and personnel costs Conversely, TRA experienced the highest selling expense ratio at nearly 30%, peaking at 28.63% in 2019, suggesting a need for increased investment in sales due to competitive market pressures Both DHG and TRA must reassess their sales strategies to enhance efficiency and profitability, as neither has fully optimized their resources, risking declining profits In contrast, DGC appears to be managing its resources more effectively.
In the past three years, the company achieved a remarkable sales expense ratio of only 6%, indicating a streamlined and effective sales structure that positions it well for increased market share and revenue In 2019, business management costs surged significantly across three companies, with DHG, TRA, and DGC increasing by 16.43%, 5.37%, and 48.07% respectively compared to 2018 While these high increases could potentially impact profits, they also reflect an expansion of production scale that is likely to enhance efficiency and profitability in the long run By 2020, both DHG and DGC experienced declines in management costs of -5.87% and -15.24%, respectively, while their profits grew from 1,712 billion VND to 1,811 billion VND for DHG, and from 1,006 billion VND to 1,479 billion VND for DGC This indicates effective cost management and operational improvements TRA, on the other hand, saw a modest increase in management costs of 2.23% and profits rose from 940 billion VND to 1,031 billion VND, suggesting ongoing expansion in its production capabilities.
DHG 1/ 3.2 TRA " 3.3 DGC 20 4 Efficiency ẹafi0s - con HH HH HH Tu ng TT TT 000060 11 23
DHG In 2019, DHG working capital continued to
NI NN e0 nan roel eat increase to VND 2,429,024,855,408, up
13.1% from 2018 By 2020, DHG working ee capital reached its highest level in this period, at VND 2,664,366,578,018, up 9,6% from 2019 In the 2018-2020 period, DHG's entage (%)
In recent years, DHG has demonstrated a strong reliance on short-term assets for its working capital, with these assets constituting 94.9% of total assets in 2018, 96.2% in 2019, and increasing to 96.7% in 2020.
During this period, DHG experienced a rise in short-term receivables, driven by aggressive business activities that boosted sales revenue Simultaneously, there was a decrease in short-term payables as DHG actively paid off its short-term debts.
18 accounts payable to suppliers This shows that DHG has good financial capacity and can meet its short-term financial obligations
The Working capital/Total assets of the company increased from 0.51 to 0.59 in 2018 and
In 2019 and 2020, the company's current ratio rose slightly from 0.59 to 0.60, indicating a modest improvement in short-term liquidity due to a significant increase in short-term assets However, the ratio remains below 1, raising concerns about the company's ability to meet its short-term debt obligations This situation suggests that the company may encounter potential liquidity challenges in the future.
DHG Regarding the current ratio of DHG, in 2018
Sẽ _ - — it was 3.14 After one year, this ratio
400 increased sharply to 4.45 The main reason
3,00 was that the company limited the use of
Times 2,00 short-term liabilities compared to the previous year However, the current ratio of
2020 recorded a slight decrease to 4.26 In all
Over the past three years, the company's current ratio remained above 1, demonstrating its ability to cover short-term liabilities with current assets However, the notably high current ratio suggests that the company may be holding an excess of unprofitable short-term assets.
In 2018, DHG's quick ratio stood at 0.89, revealing the company's inability to cover short-term liabilities with current assets, excluding inventory This changed dramatically in 2019, as short-term investments surged by 12 times, boosting the quick ratio to an impressive 3.4 Although the ratio slightly decreased to 3.24 in 2020, it remained above 1, indicating that DHG could meet its short-term obligations However, this elevated quick ratio also suggested potential shortcomings in the company's asset management practices.
Working capital in 2020 (VND TRA
@ Working capital @ Working captal/Tota assets 576,349,200,679) increased by 5.84% from
600.000 347.209.771.720 544.532.364.117 0,40 that the company has positive working
400.000 capital At this time, current assets are
200.000 ow” greater than short-term debt Therefore, the company can easily convert assets into cash to pay off due debts, helping production activities to run normally
In 2019, the company's working capital decreased by 0.49%, falling to VND 544,532,364,117 from VND 547,209,771,720 in 2018 This decline may indicate challenges in capital rotation or a strategic move towards reducing short-term debt, reflecting the company's focus on improving liquidity amidst ongoing financial difficulties.
Between 2018 and 2019, the company's working capital to total assets ratio rose from 0.34 to 0.35, while the current ratio remained stable at 0.35 from 2019 to 2020, indicating a significant increase in short-term assets Despite this improvement, the ratio is still below 1, raising concerns about the company's ability to meet its short-term debt obligations This situation suggests potential liquidity challenges for the company in the future.
TRA In terms of the current ratio of TRA, the ratio © Currentratio Quick ratio
3,00 had a slight downward trend throughout the three years In 2018, the current ratio reached
7 its highest value of 2.75 and decreased slightly to 2.59 a year later In 2020, the ratio decreased to only 2.33, the lowest in the three years Although there is a downward
Year trend, the company's current ratio was still
21 above 1, indicating that the company had enough ability to pay short-term liabilities from short-term assets
The quick ratio remained stable at 1.12 for the first two years, slightly decreasing to 1.05 in 2020, indicating the company's ability to cover short-term liabilities with short-term assets, excluding inventory Throughout this period, the quick ratio consistently stayed above 1, reflecting effective capital utilization within the company.
Thứ Working capital im 2020 (VND
Wi Working capital @ Working capital/Total assets nã 1,624,879,774,864) increased by 63.67% from 2019 (VND — 992,781,233,413)
‘> Working capital in 2019 increased by 73.81% from 2018 (VND 571,169,260,519) age (%
500.000 The trend of increasing working capital of oo DGC Company in the period 2018-2020 is a
The year has shown positive signs for the company's business activities, with working capital serving as a crucial indicator of liquidity and profitability The increase in working capital reflects DGC Company's efficient operations and its capability to fulfill financial obligations effectively.
Between 2018 and 2019, the company's working capital to total assets ratio rose from 0.12 to 0.21, indicating improved financial health Additionally, from 2019 to 2020, the current ratio increased from 0.21 to 0.28, reflecting a significant rise in short-term liquidity Despite these positive trends, the current ratio remains below 1, raising concerns about the company's ability to cover its short-term liabilities with its short-term assets.
22 having difficulty in repaying its short-term debt This is considered a sign that the company may face potential liquidity problems in the future
DGC's current ratio demonstrated a positive upward trend over three years, starting at a low of 1.37 in 2018 This figure rose significantly to 1.78 in 2019, primarily due to the company's efforts in reducing short-term liabilities In 2020, the current ratio experienced a modest increase of approximately 0.12 compared to the previous year.
In the past year, the company's current ratio peaked at 1.9, reflecting a consistent upward trend while remaining above 1 This indicates the company's strong capability to meet short-term liabilities using highly liquid assets, showcasing effective asset management.
Similarly, the quick ratio also had a fairly steady upward trend from 2018 to 2020 In
In 2018, the company's quick ratio was a concerning 0.81, reflecting low levels of liquid assets and challenges in meeting short-term liabilities However, by 2019, the ratio improved to 1.11 and further increased to 1.49 in 2020, primarily due to a significant rise in short-term investments This growth indicates that DGC's capacity to promptly settle short-term obligations has notably strengthened Additionally, maintaining a quick ratio above 1 demonstrates the company's effective asset management practices.
Compare solvency ratios’ growth rate of 3 businesses:
In general, the level of solvency ratios of 3 different businesses in the period 2018-2020 tends to increase, but the increase is not uniform among businesses
COMPARE SOLVENCY RATIOS' GROWTH RATE 2018 - 2019
Working Working capital/Total Current Quick capital assets ratio ratio
DGC achieved the highest growth rate of 74.12%, followed by DHG at 14.79%, primarily due to significant increases in revenue and profits, which allowed for greater investments in inventory and long-term assets while maintaining high working capital In contrast, TRA experienced a decline of 0.67%, attributed to increased investments in long-term assets such as factories and equipment, coupled with financial difficulties resulting in higher short-term debt.
In 2019, DHG and DGC experienced significant increases in their current ratios, rising by 41.46% and 30.51%, respectively, primarily due to a reduction in short-term debt obligations Conversely, TRA saw a modest decline of 6.09% in its current ratio Despite these varying growth rates, all three companies effectively managed their short-term debt payments through the use of highly liquid assets.
DHG 23 4.2 TRA sex
From 2018 to 2019, receivables turnover a To bị showed an upward trend, from 5.72 rounds to 6.91 rounds, an increase of 20.81% From
600 Ễ Ễ 400 an upward trend, from 6.91 to 8.13 rounds,
100 an increase of 17.66% The increase in
0,00 receivables turnover in 2018 and 2020 means
The frequency of converting receivables into cash indicates a shorter average debt recovery time, demonstrating an enterprise's effective receivables collection ability and a sound sales strategy.
The number of inventory turnovers in 3 years 2018, 2019, and 2020 of enterprises tends to decrease Specifically, this number decreased at a rate of 11.62% from 2.84 rounds
From 2018 to 2020, inventory turnover declined from 2.70 rounds to 2.51 rounds, indicating potential struggles in sales or inefficient inventory management This decrease may suggest that the business is overstocked, leading to frozen capital and rising storage expenses.
In the period from 2018 to 2019, the ratio of
DHG - Inventory to assets ratio
25,00% Inventory/Total Assets showed a decreasing
.—t =— — trend To be more specific, the ratio
21,22% uy decreased by 14.29%, from 0.21 to 0.18 In i 100% the period from 2019 to 2020, the ratio of
500% Inventory/Total Assets showed a rising om slightly again by 11.11%, from 0.18 to 0.20
Over the three years from 2018 to 2020, the Inventory to Total Assets ratio for enterprises has shown a declining trend This ratio reflects the percentage of total assets allocated to inventory, and a decrease suggests that the enterprise is effectively managing its inventory levels Such a reduction is viewed positively, indicating that the enterprise is not overstocking and is optimizing its asset utilization.
From 2018 to 2019, the number of ee ee eee receivables turnovers showed a downward trend, from 14.33 rounds to 13.26 rounds, a
1M decrease of 7.47% From 2019 to 2020, the number of receivables turnovers showed a downward trend, from 13.26 rounds to 12.61
0,00 rounds, a decrease of 4.90% The number of
2018 2019 2020 tas receivables turnover in 3 years 2018, 2019,
In 2020, the conversion of receivables into cash decreased by 12.04%, indicating a slow recovery of customer debts and suboptimal cash flow utilization Enterprises should closely examine their bad debt situations, revise sales policies, and enhance their cash flow management strategies.
Between 2018 and 2019, inventory turnover experienced a notable decline of 14.83%, dropping from 2.56 to 2.18 This downward trend continued into the following year, highlighting ongoing challenges in inventory management.
TRA - Inventory to assets ratio
900% inventory turnovers showed a rise slightly vn| tm again by 11.75%, from 2.18 to 244, In
3 1300 general, the number of inventory turnovers in nd 3 years 2018, 2019 and 2020 tends to decrease When inventory — tumover
5.00% decreases, this can mean that the business is
Tar struggling to sell or manage inventory inefficiently The business may be holding too much inventory, resulting in frozen capital and increased storage costs
Between 2018 and 2019, the Inventory to Total Assets ratio rose by 9.18%, increasing from 0.21 to 0.23, indicating a growing portion of assets held in inventory This upward trend signals potential issues in inventory management, suggesting that the enterprise is accumulating excessive stock However, from 2019 to 2020, the ratio decreased back to 0.21, returning to the same level as in 2018.
DGC 25 kyằ 0 n.c hố
Vest 1 showed a decreasing trend, from 12.31
The receivables turnover ratio decreased from 27 rounds to 7.36 rounds, reflecting a decline of 40.21% However, there was a notable increase in receivables turnover from 7.36 rounds in 2019 to 9.47 rounds in 2020, marking a growth of 28.67% Overall, the trend in receivables turnover from 2018 to 2020 shows a decrease of 23.07%, indicating that the time taken to convert receivables into cash is increasing This suggests that enterprises are struggling with effective receivables recovery and that their sales policies may need reevaluation.
Between 2018 and 2019, the inventory turnover rate for enterprises experienced a significant decline of 55.27%, dropping from 11.38 to 5.09 Although there was a slight recovery in 2020, with a 24.17% increase from 0.18 to 0.20, the overall trend over the three years shows a decrease of 44.46% This decline in inventory turnover suggests that businesses are selling products more slowly and may be managing their inventory less efficiently Additionally, it indicates a potential failure to optimize capital, resulting in increased funds being tied up in inventory.
In the period from 2018 to 2020, the
DGC - Inventory to assets ratio
Inventory/Total Assets ratio showed a
