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Financial analysis and planning of Nam Viet Joint Stock Company (NAVIFICO) - 13

a pretty good trend and vision of the company. But to know clearly about the company's operating situation, we look at the cash flow statement.

Through the cash flow statement, we can see the cash flow in and out of the company over the years. In 2012, the cash flow from the company's business activities decreased sharply due to the rapid increase in costs. The negative net cash flow from investment activities shows that the company is on the path to expanding production and scale. At the same time, the cash flow from financial activities increases gradually over the years, showing that in the conditions of high inflation and economic crisis, the company is forced to use more external funding.

Financial planning 2014:

The 2014 planning results show that the operating situation in 2014 was somewhat better than the previous year, the additional capital structure was planned to build a more stable structure. However, the forecast results also show that the costs are still high, leading to a decrease in pre-tax and post-tax profits. After setting aside funds and paying dividends as announced to shareholders, the retained earnings are negative, and resources from previous years must be used. The most urgent problem for the company now is to minimize costs, only then can the company's profits increase.

Through the above analysis, we can see that although Navifico's business situation in recent years has not been very positive, it is still a long-standing construction materials company, contributing significantly to the development of the industry. At the same time, when compared with other companies, it shows that in the current difficult period, Navifico is still standing firm. This shows Navifico's efforts to rise up.

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6.2. RECOMMENDATIONS:

Profit is an important quality indicator to evaluate the business performance of an enterprise. In addition, profit is an important economic source to supplement the enterprise's own capital, especially the source to form a welfare fund, increase the income of employees. Because of that importance, enterprises always seek ways to increase profits.

Financial analysis and planning of Nam Viet Joint Stock Company (NAVIFICO) - 13

The basic principle to increase profits is to increase revenue and reduce costs. Therefore, to increase profits, it is necessary to research and find solutions to increase revenue as well as measures to reduce costs. In the current situation of Navifico, increasing revenue is very difficult to do in the context of the current unstable economy. Therefore, to optimize profits, the most important thing at this stage is to minimize costs to the lowest level, but still stabilize production, without causing a major impact on the operating process.

To reduce costs, Navifico can use the following measures:

Save production costs, management costs:


Save on raw material costs: this cost accounts for a large proportion of product cost, so the company needs to :

- Develop a plan for supplying raw materials suitable for the company's production and processing activities, avoiding material backlog;

- Purchase raw materials with the right requirements and quality. It is possible to find sources of supply near the production site to minimize costs of purchasing and transporting raw materials;

- Build a warehouse system to ensure raw materials are safe from floods and fires, manage inventory reasonably and effectively to minimize storage costs.

- Strengthen management in production, reduce waste rate, lower raw material usage rate. The company needs to improve technology, strictly implement the maintenance and repair regime of machinery. At the same time, it is necessary to have measures to recover waste, waste products, regularly check the process of purchasing, transporting, and unpacking raw materials.

Saving labor costs: Reasonable use of labor includes: using labor quantity, labor time, labor quality, labor productivity and labor intensity.

Saving management costs: most of these costs are fixed costs, so to save these costs, it is necessary to rearrange the management apparatus, creating a compact but effective operating apparatus. In addition, it is also necessary to have a mechanism of sanctions as well as reasonable rewards to motivate individuals and departments to effectively implement the cost control plan in their unit.

Tight control of receivables


It is necessary to evaluate and classify customers based on the history of the purchase and sale relationship between the company and the customer or evaluate the business activities and financial situation of the customer to make appropriate decisions. If the customer is good, sell in large quantities, if the customer is average, sell in limited quantities, if the customer is weak, do not sell on credit to limit risks. Apply policies to encourage customers to pay quickly such as payment discounts. Strictly control the monitoring of public debt and debt collection. Legally handle cases of overdue debt and intentional appropriation of company capital.

Strengthening joint ventures:


Participating in joint ventures is necessary for every enterprise in the current process of international economic integration. Participating in joint ventures not only increases business capital but also creates many opportunities for cooperation, market expansion, and utilization of machinery and equipment production technology, thereby increasing company profits. Enterprises need to clearly understand their financial potential, consumer markets, and the requirements and benefits of their partners to make the right decisions.

CONCLUDE

The world has been undergoing many great and profound changes. These changes, on the one hand, create favorable opportunities for developing countries, if they know how to grasp and apply them promptly, they can quickly achieve their socio-economic development goals. On the other hand, they also pose challenges and complex problems that require all countries to deal with and solve. And to solve these difficult problems, there must be joint efforts and collaboration between countries through cooperative relations within the regional framework, as well as global conventions. At the same time, the rapid development of science and technology in all fields has accelerated the internationalization of world economic life. This requires Vietnam to identify a development trend in all aspects of the economy in the current process of national development and construction.

As one of the effective businesses, Nam Viet Joint Stock Company has been contributing significantly to the state budget. To achieve the results as today is due to the wise management of the leadership team and the efforts of the staff who have been constantly improving their expertise and further improving the efficiency of management and capital use.

However, there are still many limitations, there are still some factors affecting the company's operations, as well as not being able to fully exploit the company's potential. Therefore, with the desire for the company to develop and improve, managers must point out the advantages and disadvantages of the financial situation in order to further promote the existing advantages, while limiting and overcoming the disadvantages to make the company's situation better and better.

In addition, for production and business activities to run smoothly, the company also needs the attention and support of the state and competent authorities during its operations. For example, to support the company during its operations, the state and competent authorities need to have specific policies and quick, timely and appropriate decisions to encourage and promote domestic production and business activities and expand export activities.

I believe that Nam Viet Joint Stock Company with its experienced and talented leadership team in the market will increasingly improve the effectiveness of financial management and develop the company's production and business activities.

LIST OF REFERENCES


1. Dr. Nguyen Minh Kieu (2011), Basic corporate finance , 2nd edition, Labor and Social Publishing House, Ho Chi Minh City

2. Dr. Nguyen Van Thuan (2011), Financial Management , Statistical Publishing House, Ho Chi Minh City

3. Dr. Nguyen Quang Thu (2005), Basic financial management , Statistical Publishing House, Ho Chi Minh City

4. Dinh Son (December 26, 2012), “The more “stimulated” purchasing power becomes, the weaker it becomes – Part 2: Construction materials are sluggish”, Thanh Nien online , see the article at:

http://www.thanhnien.com.vn/pages/20121226/suc-mua-cang-kich-cang-yeu-ky-2-vat-lieu-xay- dung-e-am.aspx

5. Dr. Vo Quang Diem (May 30, 2013), "Challenges of the Vietnamese Fibro-cement Roofing Sheet Industry", Electronic Construction Newspaper - an agency of the Ministry of Construction , see the article at:

http://www.baoxaydung.com.vn/news/vn/material/nhung-thach-thuc-cua-nganh-tam-lop-fibro-xi- mang-viet-nam.html

6. Kieu Thuat (February 17, 2014), "Real estate is rushing to offer products to welcome good market signals", Cafef , see the article at:

http://cafef.vn/thi-truong-dau-tu/bat-dong-san-o-at-chao-hang-don-tin-hieu-tot-cua- thi-truong-201402171203317201ca43.chn

7. Financial reports of Nam Viet Corporation

8. Website: http://www.vietstock.vn

LIST OF ABBREVIATIONS


- BQ: Average

- Business Registration Certificate: Business Registration Certificate

- JSC: Joint Stock Company

- DT: Revenue

- GVHB: Cost of goods sold

- HĐĐT: Investment activities

- Business activities: Business activities

- HĐTC: Financial activities

- HTK: Inventory

- KPT: Accounts receivable

- LNST: Profit after tax

- CEO: General Director

- TNCN: Personal income

- TNDN: Corporate income

- LLC: Limited Liability

- TS: Assets

- TSDH: Long-term assets

- TSNH: Short-term assets

- TSTT: Payment ratio

- People's Committee: People's Committee

- VCSH: Owner's equity

- Construction materials: Construction materials

- VQ: Spin

- VQTTS: Total asset turnover

- Factory: factory

LIST OF FIGURES, TABLES AND CHARTS

Figure 3.1: Roofing panel production process 28

Figure 3.2: Process of creating blanks for wooden furniture production 28

Figure 3.3: Wood finishing process 29

Figure 3.4: Organizational structure and company personnel 30

Figure 3.5: Organizational structure of accounting department 31

Table 4.1: Asset fluctuations of Nam Viet Corporation 2010 – 2013 36

Table 4.2: Changes in asset structure of Nam Viet Corporation 2010 - 2013 36

Chart 4.1: Asset structure of Nam Viet Joint Stock Company 2010 - 2013 37

Chart 4.2: Capital structure of Nam Viet Joint Stock Company 2010 - 2013 39

Table 4.3: Capital fluctuations of Nam Viet Joint Stock Company 2010 - 2013 40

Table 4.4: Fluctuations in capital structure of Nam Viet Joint Stock Company 2010 - 2013 40

Table 4.5: Revenue fluctuations of Nam Viet Corporation 2010 - 2013 42

Table 4.6: Revenue structure fluctuations of Nam Viet Corporation 2010 - 2013 42

Table 4.7: Summary table of Navifico's cash flow statement for the period

2010 – 2013 ................................................................................................ 46

Table 4.8: Cash flow from operating activities 2011-2013 47

Table 4.9: Cash flow from investing activities 2011-2013 48

Table 4.10: Cash flow from financial activities 2011-2013 49

Table 4.11: Payment ratio of Nam Viet Corporation 2010 - 2013 50

Chart 4.3: Short-term liquidity ratio of NAV and DCT 51

Chart 4.4: Quick ratio of NAV and DCT 52

Chart 4.5: Cash payment ratio of NAV and DCT 53

Table 4.12: Payment ratio of Nam Viet Corporation and VLXD Roofing Sheet Corporation

Dong Nai 2010 – 2013 54

Chart 4.6: Inventory Turnover of NAV and DCT 54

Chart 4.7: NAV and DCT receivable turnover 55

Chart 4.8: Fixed asset utilization efficiency NAV and DCT 56

Chart 4.9: NAV and DCT Total Asset Turnover 56

Table 4.13: Debt to total assets ratio of Nam Viet Corporation 2010 - 2013 57

Table 4.14: Debt to total equity ratio of Nam Viet Corporation 2010 – 2013 58

Table 4.15: Interest coverage ratio of Nam Viet Corporation 2010 – 2013 58

Table 4.16: Gross profit on revenue of Nam Viet Corporation 2010 – 2013 59

Table 4.17: Profit to revenue ratio of Nam Viet Corporation 2010 – 2013 59

Chart 4.10: ROA of NAV and DCT 60

Chart 4.11: ROE of NAV and DCT 61

Table 4.18: Earnings per share of Nam Viet Corporation 2010 – 2013 62

Table 4.19: P/E ratio of Nam Viet Corporation 2010 – 2013 62

Table 4.20: Dividend per common share of Nam Viet Corporation 2010 – 2013 63

Table 4.21: Dividend ratio of Nam Viet Corporation 2010 – 2013 63

Table 4.22: Market price and book value ratio of Nam Viet Corporation shares

2010 – 2013................................................................................................... 63

Figure 4.1: Dupont diagram in 2013 of Nam Viet 66 Joint Stock Company

Table 4.23: Summary table of financial ratios of Nam Viet Corporation 2010 - 2013 67

Table 5.1: Revenue of Nam Viet Corporation 2005 – 2013 70

Chart 5.1: Revenue fluctuations of Nam Viet Corporation 2003 - 2013 70

Figure 5.1: Using Solver to find the optimal alpha value 71

Figure 5.2: Revenue forecast of Nam Viet Corporation in 2014 using Brown method 71

Figure 5.3: Using Solver to find optimal alpha and gamma values ​​72

Figure 5.4: Revenue forecast of Nam Viet Corporation in 2014 using Holt 72 method

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