* Treasurer
- Manage cash funds and valuable documents such as money at the company.
- Every day, based on receipts and payment vouchers, the cashier conducts actual collection and payment and updates the cash book with the amount of money received and paid during the day.
- At the end of the day, transfer the cash book to the payment accountant for reconciliation and preparation of cash balance report.
2.2. Analysis of financial situation of Hung Cuong Steel Joint Stock Company 2016-2018
To meet the increasing demand and diversification of the market economy, the company's board of directors always pays attention to market research, grasping accurate information to propose the most effective business plans. In the past three years, the company has always completed its business plan, fully fulfilled its obligations to the state, and the lives of employees have been significantly improved through annual salaries.
2.2.1. Overview of the financial situation of Hung Cuong Joint Stock Company
Table 2.1: Business performance of Hung Cuong Joint Stock Company
Unit: VND
Target
2016 | 2017 | 2018 | Difference 2016/2017 | Difference 2017/2018 | |||
Amount 2016/2017 | Percentage | Amount 2017/2018 | Percentage | ||||
Total assets | 19,393,473,211 | 20,650,379,019 | 22,786,046,702 | 1,256,905,808 | 6.48% | 2,135,667,683 | 10.34% |
Sales revenue | 26,829,107,373 | 44,473,576,179 | 37,702,819,735 | 17,644,468,806 | 65.77% | - 6,770,756,444 | -15.22% |
Profit from business operations | 1,139,280,134 | 1,636,415,675 | 1,520,214,535 | 497,135,541 | 43.64% | - 116,201,140 | -7.10% |
Profit after tax | 999,031,699 | 1,309,132,540 | 1,295,210,532 | 310,100,841 | 31.04% | - 13,922,008 | -1.06% |
Number of employees available | 29 | 32 | 35 | 3 | 10.34% | 3 | 9.38% |
Income per capita | 7,500,000 | 7,800,000 | 8,000,000 | 300,000 | 4.00% | 200,000 | 2.56% |
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Source: Data compiled from Hung Cuong's financial statements. The table above shows that in the period 2016-2018, the company's revenue tended to be unstable but profits increased. Owner's equity increased, so the average income of workers tended to increase, the life of the staff and workers of the institute was improved with an average income increase of 2% - 4%. The strength of the Company's business activities in recent years is the steel business sector, this is considered a suitable development direction, so the Company needs to focus and invest in this field .
2.2.2 General analysis of financial situation through financial statements
2.2.2.1 Balance sheet analysis
Hai Phong Private University Graduation Thesis
Table 2.2: BALANCE SHEET ASSETS SECTION
Unit: Vietnamese Dong
2016 | 2017 | 2018 | Comparison (2016/2017) | Comparison (2017/2018) | ||||||||
INDICATORS | Amount | Proportion | Amount | Proportion | Amount | Proportion | Amount | Proportion | Proportion | Amount | Proportion | Proportion |
A - CURRENT ASSETS | 12,272,709,357 | 63.28% | 13,406,613,716 | 64.92% | 15,682,451,273 | 68.82% | 1,133,904,359 | 9.24% | 1.64% | 2,275,837,557 | 16.98% | 3.90% |
I. Cash and cash equivalents cash equivalent | 550,887,886 | 4.49% | 694,206,194 | 5.18% | 608,492,768 | 3.88% | 143,318,308 | 26.02% | 0.69% | - 85,713,426 | -12.35% | -1.30% |
II. Short-term receivables limit | 4,568,934,943 | 37.23% | 5,691,502,233 | 42.45% | 6,542,858,302 | 41.72% | 1,122,567,290 | 24.57% | 5.22% | 851,356,069 | 14.96% | -0.73% |
1. Accounts receivable from customers | 3,747,707,160 | 82.03% | 4,823,772,975 | 84.75% | 5,405,821,492 | 82.62% | 1,076,065,815 | 28.71% | 2.73% | 582,048,517 | 12.07% | -2.13% |
2. Prepayment to the seller | 287,001,000 | 6.28% | 311,176,445 | 5.47% | 410,831,940 | 6.28% | 24,175,445 | 8.42% | -0.81% | 99,655,495 | 32.03% | 0.81% |
3. Other receivables | 534,226,783 | 11.69% | 556,552,813 | 9.78% | 606,204,870 | 9.27% | 22,326,030 | 4.18% | -1.91% | 49,652,057 | 8.92% | -0.51% |
III. Inventory warehouse | 7,134,756,589 | 58.14% | 6,995,290,987 | 52.18% | 8,504,788,201 | 54.23% | - 139,465,602 | -1.95% | -5.96% | 1,509,497,214 | 21.58% | 2.05% |
IV. Other current assets | 18,129,939 | 0.15% | 25,614,302 | 0.19% | 26,312,002 | 0.17% | 7,484,363 | 41.28% | 0.04% | 697,700 | 2.72% | -0.02% |
1 Short-term prepaid expenses | 18,129,939 | 100.00% | 25,614,302 | 100.00% | 27,312,002 | 103.80% | 7,484,363 | 41.28% | 1,697,700 | 6.63% | 3.80% | |
B - ASSETS LONG TERM | 7,120,763,854 | 36.72% | 7,243,765,303 | 35.08% | 7,103,595,429 | 31.18% | 123,001,449 | 1.73% | -1.64% | - 140,169,874 | -1.94% | -3.90% |
I. Fixed assets determine | 6,801,896,110 | 95.52% | 6,913,311,653 | 95.44% | 6,709,814,475 | 94.46% | 111,415,543 | 1.64% | -0.08% | -203,497,178 | -2.94% | -0.98% |
1. Fixed assets tangible | 5,762,760,735 | 84.72% | 5,877,515,183 | 85.02% | 5,674,018,005 | 84.56% | 114,754,448 | 1.99% | 0.29% | -203,497,178 | -3.46% | -0.45% |
2. Fixed assets invisible | 1,039,135,375 | 15.28% | 1,035,796,470 | 14.98% | 1,035,796,470 | 15.44% | - 3,338,905 | -0.32% | -0.29% | - | 0.00% | 0.45% |
II. Long-term unfinished assets limit | 318,867,744 | 4.48% | 330,453,650 | 4.56% | 393,780,954 | 5.54% | 11,585,906 | 3.63% | 0.08% | 63,327,304 | 19.16% | 0.98% |
1. Poor basic construction costs spread | 318,867,744 | 100.00% | 330,453,650 | 100.00% | 393,780,954 | 100.00% | 11,585,906 | 3.63% | 0.00% | 63,327,304 | 19.16% | 0.00% |
TOTAL ASSETS | 19,393,473,211 | 100.00% | 20,650,379,019 | 100.00% | 22,786,046,702 | 100.00% | 1,256,905,808 | 6.48% | 0.00% | 2,135,667,683 | 10.34% | 0.00% |
(Source: Financial report 2016 - 2018)
Student: Vu Le Thuy Duong 38 Class: QT1901T
Asset structure and volatility analysis
- Total assets: From 2016 to 2018, the total assets of the enterprise increased, the asset structure also changed. The total assets of the enterprise increased from 19,393,473,211 VND in 2016 to 20,650,379,019 VND in 2017 (an increase of 1,256,905,808 VND equivalent to 6.48%). In 2018, it increased to 22,786,046,702 VND compared to 2017 (an increase of 2,135,667,683 VND equivalent to 10.34%). In which:
- Short-term assets increased from 12,272,709,357 VND in 2016 (accounting for 63.28% of total assets) to 13,406,613,716 VND in 2017 (an increase of 1,133,904,359 VND equivalent to 9.24%), the proportion in total assets increased to 1.64%. In 2018, the trend continued to increase to 15,682,451,273 VND (an increase of 2,275,837,557 VND equivalent to 16.98%), making the proportion in total assets increase by 3.90%, specifically:
- Cash and cash equivalents have changed over the years. In 2016, this indicator was 550,887,886 VND, equivalent to 4.49% of current assets. In 2017, this indicator increased slightly to 694,206,194 VND (an increase of 143,318,308 VND, equivalent to 26.02%) but the proportion in total current assets increased by 0.69%. In 2018, this indicator decreased to 608,492,768 VND (a decrease of 85,713,426 VND, equivalent to 12.35%), so the proportion in total current assets decreased by 1.30%. The company's cash reserves tend to be unstable. This is the amount of money used by the company to purchase goods or pay some due debts. The company's cash ratio accounts for 3% - 5%.
- Receivables account for a large proportion of total short-term assets and tend to increase. In 2016, it was 4,568,934,943 VND (equivalent to 37.23% of total assets), in 2017 it was 5,691,502,233 VND, a sharp increase compared to 2016 (an increase of 1,122,567,290 VND, equivalent to 24.57%), causing the proportion to increase by 5.22%. By 2018, it had increased slightly by 851,356,069 VND (an increase of 2.22%), the proportion decreased by 0.73%. The company has not improved and may be in a state of bankruptcy.
The state of capital appropriation simultaneously reduces cash and cash equivalents, affecting the Company's solvency.
- Inventory accounts for a large proportion of total assets, thus affecting the business's operations. According to the table, in 2016 it was 7,134,756,589 VND, accounting for 58.14% of total assets. In 2017 it decreased to 6,995,290,987 VND (a decrease of 139,465,602 VND, equivalent to 1.95%), causing the proportion to decrease by 5.96%. In 2018, it increased to 8,504,788,201 VND (an increase of 1,509,497,214 VND, equivalent to 21.58%), the proportion increased by 2.05% compared to 2017.
- The Company's other short-term assets tended to increase in 2016, at 18,129,939 VND, accounting for 0.15%. In 2017, it was 25,614,302 VND (an increase of 7,484,363 VND, equivalent to 41.28%), an increase of 0.04%; in 2018, it was 26,312,002 VND (an increase of 697,700 VND, equivalent to 2.72%) but an increase of 0.02%.
Long-term assets include fixed assets, long-term unfinished assets and mainly fixed assets.
- The Company's fixed assets in 2016 were 6,801,896,110 VND, accounting for 95.52% of total long-term assets. In 2017, this index was 6,913,311,653, an increase of 111,415,543 VND (equivalent to 1.64%), causing the proportion in total long-term assets to decrease by 0.08%. In 2018, this index was 6,709,814,475 VND, down to 203,497,178 VND (down 2.94%), causing the proportion in total long-term assets to decrease by 0.98%. Thus, the proportion of fixed assets accounted for a fairly high proportion, but decreased in both value and proportion. The reason is that the company did not invest in additional assets, but the value decreased due to depreciation.
- Long-term unfinished assets account for a low proportion of total long-term assets. From 2016 to 2017, there was an uneven increase and decrease. In 2017, it increased by 11,585,906 VND, equivalent to 3.63% compared to 2016 (increased proportion of 0.08%), and in 2018, it increased by 393,780,954 VND (equivalent to 19.16%), increased proportion of 0.98%.
Through analyzing the fluctuations and allocation structure, we see that the capital usage of the enterprise is relatively reasonable because the increase in the enterprise's assets represents
Currently, the scale of the business is expanding, at the same time the company increases business capacity and reduces unnecessary assets to use capital effectively.
However, receivables still account for a fairly high proportion of 37% - 42%, leading to a situation where the company's capital is being appropriated.
In addition, the amount of inventory also accounts for a fairly high proportion of the total assets (about 52% - 58%) which has significantly affected the profitability of capital. In the coming time, the company needs to have measures to manage receivables and inventory to contribute to improving the efficiency of capital use.
Hai Phong Private University Graduation Thesis
Table 2.3: BALANCE SHEET OF CAPITAL RESOURCES
Unit: Vietnamese Dong
-
2016 | 2017 | 2018 | Comparison (2016/2017) | Comparison (2017/2018) | ||||||||
INDICATORS | Amount | Proportion | Amount | Proportion | Amount | Proportion | Amount | Proportion | Proportion | Amount | Proportion | Proportion |
A - LIABILITIES PAYABLE | 12,394,744,928 | 63.91% | 13,132,855,777 | 63.60% | 14,774,621,428 | 64.84% | 738,110,849 | 5.96% | -0.32% | 1,641,765,651 | 12.50% | 1.24% |
I. Short-term debt | 4,850,156,194 | 39.13% | 3,011,902,314 | 22.93% | 3,238,667,965 | 21.92% | - 1,838,253,880 | -37.90% | -16.20% | 226,765,651 | 7.53% | -1.01% |
1. Short term loan | 4,224,538,865 | 87.10% | 2,242,782,423 | 74.46% | 2,553,441,805 | 78.84% | - 1,981,756,442 | -46.91% | -12.64% | 310,659,382 | 13.85% | 4.38% |
2. Must pay to people sell | 94,923,418 | 1.96% | 133,352,323 | 4.43% | 225,000,000 | 6.95% | 38,428,905 | 40.48% | 2.47% | 91,647,677 | 68.73% | 2.52% |
3. Buyer pays in advance | 316,582,474 | 6.53% | 360,184,134 | 11.96% | 54,699,999 | 1.69% | 43,601,660 | 13.77% | 5.43% | - 305,484,135 | -84.81% | -10.27% |
4. Taxes and other payments to the state | 155,577,131 | 3.21% | 207,869,128 | 6.90% | 173,389,011 | 5.35% | 52,291,997 | 33.61% | 3.69% | - 34,480,117 | -16.59% | -1.55% |
5. Other short-term payables | 58,534,306 | 1.21% | 67,714,306 | 2.25% | 232,137,150 | 7.17% | 9,180,000 | 15.68% | 1.04% | 164,422,844 | 242.82% | 4.92% |
II. Long-term debt | 7,544,588,734 | 60.87% | 10,120,953,463 | 77.07% | 11,535,953,463 | 78.08% | 2,576,364,729 | 34.15% | 16.20% | 1,415,000,000 | 13.98% | 1.01% |
1. Long-term loans and debt | 7,544,588,734 | 100.00% | 10,120,953,463 | 100.00% | 11,535,953,463 | 100.00% | 2,576,364,729 | 34.15% | 0.00% | 1,415,000,000 | 13.98% | 0.00% |
B - OWNER'S EQUITY Right | 6,998,728,283 | 36.09% | 7,517,523,242 | 36.40% | 8,011,425,274 | 35.16% | 518,794,959 | 7.41% | 0.32% | 493,902,032 | 6.57% | -1.24% |
I. Equity | 6,998,728,283 | 100.00% | 7,517,523,242 | 100.00% | 8,011,425,274 | 100.00% | 518,794,959 | 7.41% | 0.00% | 493,902,032 | 6.57% | 0.00% |
1. Owner's investment capital own | 6,000,000,000 | 85.73% | 6,000,000,000 | 79.81% | 6,000,000,000 | 74.89% | - | 0.00% | -5.92% | - | 0.00% | -4.92% |
2. Undistributed profit after tax | 998,728,283 | 16.65% | 1,517,523,242 | 20.19% | 2,011,425,274 | 25.11% | 518,794,959 | 51.95% | 3.54% | 493,902,032 | 32.55% | 4.92% |
TOTAL CAPITAL | 19,393,473,211 | 100.00% | 20,650,379,019 | 100.00% | 22,786,046,702 | 100.00% | 1,256,905,808 | 6.48% | 0.00% | 2,135,667,683 | 10.34% | 0.00% |
(Source: Financial report 2016 - 2018)
Student: Vu Le Thuy Duong 42 Class: QT1901T
Comment:
Analysis of capital structure and fluctuations
Total capital in 2017 compared to 2016 increased by 1,256,905,808 VND (equivalent to an increase of 6.48%), in 2018 compared to 2017 increased by 2,135,667,683 VND (equivalent to an increase of 10.34%). The above increase in capital shows the increase in the scale of production and business of the enterprise in the year.
The increase in total capital is due to the increase in equity in 2017 compared to 2016 of 518,794,959 VND (equivalent to 7.41%), in 2018 compared to 2017 of 493,902,032 VND (equivalent to 6.57%). And liabilities in 2017 compared to 2016 increased by 738,110,849 VND (equivalent to 5.96%) in 2018 compared to 2017 increased by 1,641,765,651 VND (equivalent to 12.50%).
-Increase in equity in 2017 compared to 2016 increased by 518,794,959 VND (equivalent to 7.41%), in 2018 compared to 2017 increased by 493,902,032 VND (equivalent to 6.57%), this shows that the company is profitable, has effective business performance, and has many advantages in mobilizing capital from equity.
- Liabilities payable in 2017 compared to 2016 increased by 738,110,849 VND (equivalent to an increase of 5.96%) in 2018 compared to 2017 increased by 1,641,765,651 VND (equivalent to an increase of 1,641,765,651 VND).
equivalent to an increase of 12.50%)
. Due to long-term debt, in 2017 compared to 2016 increased by 2,576,364,729 VND (equivalent to an increase of 34.15%) in 2018 compared to 2017 increased by 1,415,000,000 VND (equivalent to 13.98%). In addition, short-term debt in 2017 compared to 2016 decreased by 1,838,253,880 VND (equivalent to 37.90%), in 2018 compared to 2017 increased by 226,765,651 VND (equivalent to an increase of 7.53%). The main reasons are due to items such as: payables to sellers increased, taxes and amounts payable to the State, payables to employees, prepayments from buyers, these are the sources of capital that the company occupies.
In total capital, the proportion of liabilities in 2016 accounted for 63.91%, in 2017 accounted for 63.60%, in 2018 accounted for 64.84% (in 2017 compared to 2016, the proportion decreased by 0.32%, in 2018 compared to 2017, the proportion increased by 1.24%). Meanwhile, equity accounted for a low proportion in 2016, accounting for