LIST OF ABBREVIATIONS
ABBREVIATIONS
FULL CONTENT | |
Financial Statements | Financial report |
Board of Directors | Board of Directors |
DN | Business |
Board of Directors | Board of Directors |
NVTT | Temporary capital |
NVTX | Regular capital |
Production and business | Production and business |
Ltd. | Limited liability |
Fixed assets | Fixed assets |
TSDH | Long-term assets |
TSNH | Current assets |
VCSH | Equity |
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LIST OF TABLES
Table 2.1. Asset structure analysis table 61
Table 2.2. Asset fluctuation analysis table 62
Table 2.3 Capital structure analysis table 66
Table 2.4 Analysis of capital fluctuations 67
Table 2.5 Analysis of the relationship between assets and capital sources 69
Table 2.6 Analysis of Company 72's funding indicators
Table 2.7. Table of analysis of business situation and results 75
Table 2.8. Profitability analysis table 78
Table 2.9. Comparison of ROS coefficient of Tan Truong Son Company with some companies in the same industry in 2020 79
Table 2.10. Debt analysis table 83
Table 2.11. Payment capacity analysis table 86
Table 2.12. Comparison of Tan Truong Son Company's solvency with some companies in the same industry in 2020 87
Table 2.13. Cash generation and cash flow analysis table 90
Table 2.14. Cash flow analysis table in company 93
Table 2.15. Capital efficiency analysis table 95
Table 2.16. Comparison of capital utilization efficiency of Tan Truong Son Company with some companies in the same industry in 2020 97
Table 2.17. Profitability analysis table from capital 99
Table 2.18. Comparison of the profitability of Tan Truong Son Company's capital with some companies in the same industry in 2020 101
Table 2.19. Financial risk indicator analysis table 105
LIST OF DIAGRAMS
Diagram 2.1. Management organization of Tan Truong Son Import-Export and Construction Joint Stock Company 55
Chart 2.1. Comparison of long-term assets with short-term assets 2018-2020 62
Chart 2.2. Comparison of equity and liabilities 2018-2020 67
Chart 2.3: Comparison of net revenue with profit after tax over the years 2018-2020 76
Chart 2.4. ROS of Tan Truong Son Company and other companies in the same industry in 2020 80
Chart 2.5. Comparison between current ratio and quick ratio of Tan Truong Son Company and other companies in the same industry in 2020 88
Chart 2.6: ROI, ROA, ROE coefficients between Tan Truong Son Company and some other companies in the same industry 102
1. Reason for choosing the topic
INTRODUCTION
In the context of an economy that is opening up and integrating with the world economy, any business when conducting production and business activities aims at the first and final goal of maximizing profits and maximizing business value. To achieve that goal, businesses need to create a solid position in the market with prestige, financial strength, product quality, etc., exploiting and thoroughly using internal and external resources of the business. "Finance" is an important factor that directly affects the existence and development, and is the basis for assessing whether business operations are effective or not.
Financial analysis helps managers see clearly the current situation of their business: the increase and decrease; the good and bad aspects of the financial situation, business operations, capital situation, debt situation..., thereby outlining timely and effective measures and strategies to stabilize the financial situation reasonably and strongly, increasing the value of assets for owners. Financial statement analysis not only provides the clearest financial information for managers, but also brings usefulness to investors, suppliers, lenders, employees in the business as well as state management agencies. In particular, for joint stock companies, this work is especially prominent because it greatly affects the decision-making of investors - a factor that plays an important role in the operation of the business.
After researching and realizing the importance of financial analysis at Tan Truong Son Import-Export and Construction Joint Stock Company, besides the Company's strengths that need to be promoted, there are also shortcomings.
need to be resolved, with the desire to provide more information about the Company's financial situation to help investors, individuals and related organizations have an objective, honest view and the goal is to make the right decision.
Through the process of researching theses, dissertations and articles, there have been many research works on financial analysis. Each work shows specific solutions to improve financial analysis, provides theories on financial analysis as well as analyzes the current situation of advantages and disadvantages of the company. However, there has not been any research on financial analysis at Tan Truong Son Import-Export and Construction Joint Stock Company. Therefore, I chose the topic "Financial analysis at Tan Truong Son Import-Export and Construction Joint Stock Company".
2. Research status of the topic
In today's era, financial analysis plays a very important role for every manager in the market economy. It is a useful tool used to determine economic value, evaluate the financial strengths and weaknesses of the enterprise. On that basis, it discovers objective and subjective causes to help each manager choose and make decisions in accordance with the goals they are interested in. Therefore, financial statement analysis is a powerful tool for business managers to achieve the highest results and efficiency. There have been many research works, articles, and topics on this content:
- The article "Financial analysis of VVMI construction and investment company" by Nguyen Tra My, Thang Long University (2014). During the research process, the main research methods used were: Comparison method, analysis method used to evaluate the current financial situation of the company. The research results pointed out the shortcomings, limitations and proposed solutions to improve the analysis of the financial situation of the Company.
- Master's thesis with the topic "Analysis of financial statements of Vinaconex 25 Joint Stock Company" (2015) by author Bui Van Hoang generalized theoretical issues on financial statement analysis, conducted analysis and proposed specific solutions to improve financial statement analysis at Vinaconex 25 Joint Stock Company. However, the thesis is limited by the limitations presented above to serve corporate governance, aiming to perfect the system of indicators to evaluate and analyze enterprises better, not aiming to serve other related subjects.
- Master's thesis "Analysis of financial statements of V Construction and Construction Materials Company Limited - Nam Dinh" by Tran Thanh Hai, University of Labor - Social Affairs (2017). During the analysis process, the thesis delves into the causes of fluctuations, analyzes the impact of factors and points out strengths and weaknesses in order to propose solutions to overcome and improve the company's operational efficiency. However, the thesis has not linked the company's financial situation with the fluctuations in the socio-economic situation during the research period.
- "Analysis of financial statements of Mai Linh Construction and Consulting Joint Stock Company" by author Nguyen Thi Huyen Nga at the University of Labor - Social Affairs (2019) the analysis clarifies and fully identifies the causes and levels of influence of factors on the financial situation, to propose effective solutions, build reasonable policies to optimize working capital.
3. Research purpose and tasks
The purpose of the research is to systematize and contribute to clarifying theoretical issues on financial analysis of enterprises. From the above basic objectives, the main objectives are identified as:
- System of theoretical basis for corporate financial analysis;
- Analyze and evaluate the financial situation of Tan Truong Son Import-Export and Construction Joint Stock Company;
- From the analysis results, systematize the strengths and weaknesses of the company's financial situation and propose some solutions to improve financial capacity at Tan Truong Son Import-Export and Construction Joint Stock Company.
4. Research questions of the topic
- What are the theoretical basis for financial analysis in enterprises?
- What is the current financial situation of Tan Truong Son Import-Export and Construction Joint Stock Company?
- What solutions and recommendations help improve the financial capacity of Tan Truong Son Import-Export and Construction Joint Stock Company?
5. Research subjects and scope
- Research subjects:
Financial analysis in business
- Research scope:
Content: Financial analysis at Tan Truong Son Import-Export and Construction Joint Stock Company.
In terms of space: Tan Truong Son Import-Export and Construction Joint Stock Company.
In terms of time: 3-year financial report, from 2018 to 2020.
6. Research methods
Theoretical basis: The research topic is based on circulars and decrees of the Government on corporate financial reporting and textbooks, books, newspapers, and reliable websites related to corporate financial analysis.
Data sources and data collection methods:
Data on the theoretical basis of corporate financial analysis is taken from textbooks, lectures, and reputable books and newspapers.
Document introducing the history of formation and development at Tan Truong Son Import-Export and Construction Joint Stock Company.
The financial reporting system and annual reports for the years 2018, 2019, 2020 are taken from the books at Tan Truong Son Import-Export and Construction Joint Stock Company.
Development policy plan is collected at Tan Truong Son Construction and Import Drying Joint Stock Company.
Documents and textbooks on financial analysis theory.
Research results of other authors (in journals, scientific reports, scientific research topics... related to the issue of corporate financial analysis)
Policies related to the research content (mainly legal documents of the State regulating contents related to corporate finance)
Data processing techniques: during the research process, the author used Excel spreadsheets to calculate, process data and describe certain indicators.