Characteristics of the Wood Processing Export Industry Affecting Business Performance and Business Performance Analysis

H

 ROA

TS

 H

TS H TS 

x ROS 0

(3.4.1)

- The impact of ROS index on the fluctuation of ROA:

1

 ROA ROS H TS

x (ROS 1 – ROS 0 ) (3.4.2)

The Dupont analysis method is often used by internal managers of enterprises to have a specific view and make accurate decisions on which business activities should be improved in order to achieve high business efficiency.

We believe that the advantage of the Dupont analysis method is that it allows analysts to evaluate the fluctuations of a financial indicator in relation to the impact of other financial indicators, thereby determining

accurately determine the causes of fluctuations in indicators. In addition, this is also an analysis method with very high information value, which can help managers thoroughly understand how their business strategies have affected a series of business performance indicators and how to best combine input resources to achieve high business efficiency in the overall adjustment of many influencing factors. Although it has many advantages, the Dupont analysis method is not an easy method to use for businesses because building an equation to represent the relationship between financial indicators is not simple. In addition, the use of this method also needs to be combined with the elimination method, so determining which indicator will be affected first is very difficult.

1.2.3.6. Regression method

Regression is a method to help analysts forecast business performance indicators, costs... and the growth potential of the enterprise. This method is implemented by using past data, data that has occurred over time or occurred at the same time to establish a relationship between related phenomena and events in the form of an equation - called a regression equation. Based on the regression equation that has been built, the analyst determines the parameters of the equation, on that basis explains the results obtained, estimates and forecasts events that will occur in the future. In mathematical terms, regression analysis is a method of studying the level of influence of one or more variables (independent variables) on a variable (dependent variable), in order to predict the dependent variable based on the known values ​​of the independent variables. However, to perform the regression method, the analyst needs a multi-period data set (at least 5 periods) and the data must be absolutely accurate, only then can the regression results be guaranteed to be accurate and

can be applied in forecasting indicators for the next period.

Regression methods can be used as simple regression (univariate regression) or multiple regression (multivariate regression).

* Simple regression method is a method used to examine the relationship between an indicator reflecting the result of the movement of an economic phenomenon (dependent variable) and an indicator reflecting the cause (independent variable).

The simple regression equation has the form [4, page 23]: Y = a + bX (4.1) In which: Y is the dependent variable

X is the independent variable

a is the y-intercept or intercept b is the slope or intercept

With n number of experimental observations, the parameters a, b in the equation can be determined by many methods such as: least squares method, maximum - minimum method, point graph method, using Excel software.

i

The most reliable method applied is the least squares method. According to this method, it is necessary to first consider the correlation between the dependent variable and the independent variable using the formula [4, page 24]:

n



i  1

 

n

X i X



2



n

Y i Y

 2

i  1

i  1

R =

 X i

X ( Y

Y 

(4.2)

The results of determining R have the following meanings:

If R = +1: perfect correlation and positive If R = - 1: perfect correlation and negative If |R| is closer to 1: the correlation is stronger

If | R | is from 0.4 to 0.8: medium correlation

If | R | is less than 0.4: weak correlation

Then determine the parameters a, b according to the following formulas [4, page 24]:

n

X i Y i nXY

i  1

b 

X nX

n

2 2

i

(4.3)

In there:

i  1

a Y bX

(4.4)

n

X ii  1

n

 Y i

i  1

X = n Y =n

Nowadays, with the help of computer technology, Excel spreadsheets can be used to calculate results faster.

* Multiple regression method is a method used to analyze the relationship between many independent variables affecting a dependent variable. In fact, there are some economic indicators that are affected by many factors in the same direction or in opposite directions. For example, revenue depends on selling price, advertising, consumption output, product structure consumed... Besides, there is an internal linear correlation between the factors. Therefore, multiple regression analysis will help analysts both re-examine the hypothesis about the influencing factors and the level of influence, and quantify the economic relationships between them, thereby providing the basis for forecasting analysis and making reasonable and effective business decisions, promoting growth.

The multiple regression equation has the following form [31, page 28]:

Y = b 0 + b 1 X 1 + b 2 X 2 + b 3 X 3 + ... + b n-1 X n-1 + b n X n + e

In there:

Y is the dependent variable X i are the independent variables

b 0 is the y-coordinate

b i are the slopes of the equations with respect to the variables X i

e are the errors of the equation, representing the impact of other factors that are unknown or not included in the equation.

To determine the parameters of the multiple regression model, it is necessary to use statistical software integrated directly into Excel spreadsheets or SPSS software...

We see that the advantage of the regression method is that it helps businesses make fairly accurate forecasts for the future, which can be used as a basis for deciding on business strategies and tactics to achieve the set goals. However, regression is a difficult method to use because it requires a set of data for many years and businesses must build a reasonable regression equation.

1.2.3.7. Other analytical methods

In addition to the analysis methods presented above, business performance analysis can still use some other methods such as algebraic methods, graphical methods, economic mathematics methods, expert methods, etc. to analyze the research object. Which method to use in the analysis process depends on the purpose and source of the analysis data.

It can be seen that if only using each method presented above individually, it is not possible to evaluate all aspects of business performance. Therefore, when analyzing business performance, analysts often use a combination of many analysis methods at the same time. For example, combining the comparison method with the graphical method, combining the exclusion method with the comparison method, combining the detailed analysis index method with the mathematical model, etc. Using a combination of methods is necessary because the analysis object is very diverse and rich, so the relationship between the factors affecting the business performance is very important.

The influence on the indicators reflecting the subject of analysis is not always in the same direction or of the same type. Moreover, if many analytical methods are not used in combination, it will be difficult to highlight the characteristics of the subject of analysis. However, when combining many analytical methods, it is necessary to pay attention to ensuring the conditions that each specific method requires, such as comparison conditions, order of arrangement of factors, relationship between factors and indicators reflecting the subject of analysis, etc.

1.2.4. Content of business performance analysis

Every unit, every business when analyzing business performance wants to achieve higher business results through the analysis results, which are specified through profit indicators. However, profit is only the final result that a business can receive, but to get that result, there needs to be a process with the combined strength of many factors. Therefore, the content of business performance analysis is not the analysis of each individual indicator but the combination of a system of analysis indicators.

Thus, to be able to evaluate business performance comprehensively, linking indicators as well as influencing factors, it is necessary to analyze business performance from many different perspectives, which can summarize the following analysis contents:

- Firstly, general analysis of business performance through the Business Performance Report. General analysis will allow for a preliminary assessment of the business performance of the enterprise and "attract" the analyst's attention to some sudden fluctuations in the indicators on the Business Performance Report that affect the determination and assessment of other business performance analysis indicators.

- Second, analyze business efficiency through the group of indicators of efficiency of use and profitability of costs or input factors. This group of indicators

is constructed by evaluating the correlation between a unit of output obtained and a unit of cost or input factor.

- Third, analyze business efficiency through the group of indicators of turnover speed of costs or input factors. This group of indicators is determined by comparing the correlation between revenue and costs or input factors.

- Fourth, analyzing business performance of enterprises needs to link the assessment of economic performance with social performance.

1.3. CHARACTERISTICS OF BUSINESS PERFORMANCE ANALYSIS IN EXPORT WOOD PROCESSING ENTERPRISES

1.3.1. Characteristics of the wood processing export industry affecting business efficiency and business efficiency analysis

Each industry has completely different characteristics of production and business activities. Therefore, activities related to business performance analysis also have different characteristics, depending on the characteristics of each industry. Through the research process, we found that some basic characteristics of the export wood processing industry have a certain level of influence on the business performance and business performance analysis of enterprises in the industry, including:

First of all, it is necessary to mention the seasonal nature of production and business in the export wood processing industry . The seasonality of production and business not only affects the continuity of production but also affects the inventory reserve policies of enterprises. Normally, many export wood processing enterprises have to let machinery and equipment "summer vacation" from May to July because they have not entered the customer ordering season, leading to seasonal labor use, making production costs arising in each stage also different. In addition, to ensure production and business, the stage of reserving raw materials, products

The production period of enterprises usually starts from November of the previous year to March of the following year, which makes the "Inventory" indicator on the Balance Sheet often account for a large proportion. Therefore, if the content of the business performance analysis is not specific, detailed and does not pay attention to the indicators that account for a large proportion, the analysis conclusion may not be complete and accurate.

Second, it is necessary to pay attention to the cost structure of manufacturing processed wood products . In the cost structure of manufacturing wood products, the cost of raw wood materials accounts for 70% of the value, the cost of auxiliary materials accounts for 10-15% of the value, which means that the cost of direct materials accounts for 80-85% of the total cost of the product. Therefore, it is necessary to develop indicators to evaluate the efficiency of using direct material costs in the system of indicators to analyze business efficiency for wood processing and exporting enterprises.

Third, each export wood processing enterprise must carry out many different production stages including sawing, boiling, drying (drying), processing details and finishing products . This feature is completely different from domestic wood processing enterprises because these stages are mandatory according to standard procedures to ensure product quality according to the requirements of the importing country. Meanwhile, for domestic products, the boiling and drying stage is not performed to save time and costs. Currently, with the strong division of social labor, to ensure high business efficiency and create jobs for many workers, most enterprises specialize in a certain stage of the production process. However, most export wood processing enterprises carry out all production stages themselves and each stage uses different equipment, with completely different results and efficiency. Therefore, it is necessary to analyze business efficiency in each production stage of wood processing export enterprises.