Home / Financial Analysis

Financial Analysis Through Balance Sheet

2.2.1.1. Analyze financial situation through balance sheet

2.2.1.1.1. Analysis of changes over time in assets and capitalAsset

Table 2.1: Asset fluctuations over time in the period 2011 - 2013

Unit: Million VND



Target

Year

Difference

2011

2012

2013

2012/2011

2013/2012

Amount

%

Amount

%

Amount

%

±

%

±

%

1

2

3

4

5

6

7

8=4-2

9=8:2

10=6-4

11=10:4

Asset

short term

263,511

49.5

254,572

46.1

391,809

59.1

-8.939

-3.39

137,237

53.91

Asset

long term

268,548

50.5

297,878

53.9

271,552

40.9

29,330

10.92

-26.325

-8.84

Assets

532,059

100

552,449

100

663,361

100

20,390

3.83

110,912

20.08

Maybe you are interested!

Financial Analysis Through Balance Sheet

(Source: Balance Sheet - Accounting Department)

450,000

400,000

350,000

300,000

250,000

200,000

150,000

100,000

50,000

0

2011

2012

Current assets

2013

Long-term assets

Unit: Million VND










Chart 2.1: Asset fluctuations over time

(Source: Balance Sheet - Accounting Department)

Based on the chart and data table, we can see that total assets have increased steadily over the past 3 years. In 2012, total assets increased by 3.83% with assets of 552,449 million VND. In 2013, total assets increased sharply compared to 2012 with a growth rate of 20.08% with total assets of

663,361 million VND. In general, the main reason for the increase in total assets is due to an increase in short-term assets and a decrease in long-term assets, although in 2012 short-term assets decreased and long-term assets increased compared to 2011. However, in 2013, there was a sharp increase in short-term assets and conversely, long-term assets decreased.

We can see that in 2011, short-term assets were 263,511 million VND, in 2012, short-term assets decreased to 254,572 with a decrease rate of 3.39%, but short-term assets increased sharply to 391,809 million VND with an increase rate of 53.91% in 2013. On the contrary, long-term assets were 268,548 million VND in 2011, slightly increased to 297,878 million VND in 2012 with an increase rate of 10.92%, but long-term assets decreased to 271,552 million VND with a decrease rate of 8.84% in 2013. The main reason is that the company is tending to invest heavily in short-term assets to meet the needs of business development and market expansion to provinces and cities according to the company's development orientation. However, this is only a general assessment that does not clearly identify the cause of capital increase.

Capital


Table 2.2: Fluctuation of capital sources over time in the period 2011 - 2013


Unit: Million VND



Target

Year

Difference

2011

2012

2013

2012/2011

2013/2012

Amount

%

Amount

%

Amount

%

±

%

±

%

1

2

3

4

5

6

7

8=4-2

9=8:2

10=6-4

11=10:

4

Liabilities

179,388

33.7

174,297

31.5

224,482

33.8

-5.092

-2.8

50,185

28.8

Equity

352,671

66.3

378,152

68.5

438,880

66.2

25,482

7.2

60,727

16.1

ΣCapital

532,059

100

552,449

100

663,361

100

20,390

3.8

110,912

20.1

(Source: Balance Sheet - Accounting Department)


Unit: Million VND


500,000

450,000

400,000

350,000

300,000

250,000

200,000

150,000

100,000

50,000

0

2011

Liabilities

2012

Equity

2013

Chart 2.2: Fluctuations in capital sources over time

(Source: Balance Sheet - Accounting Department)

Based on the chart and data table calculated from the balance sheet, we can see:

The company's total capital increased over the past 3 years. The reason for the increase was due to increased liabilities and equity, although liabilities in 2012 decreased slightly compared to 2011. Specifically:

Liabilities in 2011 were 179,388 million VND, in 2012 liabilities decreased to

174,297 million VND. In 2013, the amount increased to 224,482 million VND. Compared to 2012 and 2011, it decreased slightly with a decrease rate of 2.8%, equivalent to an amount of

5,092 million VND. In 2013, liabilities increased by 50,185 million VND with an increase rate of 28.8% compared to 2012.

In addition, the increase in total capital is also due to the increase in equity capital. Specifically, in 2011, equity capital was 352,671 million VND, in 2012 the amount was 378,152 million VND with an increase rate of 7.2%. In 2013, equity capital continued to increase to 438,880 million VND with an increase rate of 16.1%.

Thus, the company's liabilities are increasing at a fairly high rate from -2.8% to 28.8% in 3 years, so the company is misappropriating capital. At the same time, the company's equity is also increasing steadily from 7.2% to 16.1% and accounts for nearly double the proportion of liabilities.

2.2.1.1.2. Analysis of changes in asset structure and capital sourcesAsset

26

Table 2.3: Asset structure table for the period 2011 - 2013


Unit: Million VND


INDICATORS

YEAR

DIFFERENCE

2011

2012

2013

2012/2011

2013/2012

Amount

%

Amount

%

Amount

%

Level

%

Level

%

A. Current assets

263,511

49.53

254,572

46.08

391,809

59.06

-8.939

-3.39

137,237

53.91

I. Money

91,764

17.25

78,122

14.14

59,677

9.00

-13.642

-14.87

-18.445

-23.61

II. Short-term financial investments

limit



14,000

2.53

108,200

16.31

14,000

100.00

94,200

672.86

III. Accounts receivable

58,982

11.09

36,602

6.63

80,924

12.20

-22.379

-37.94

44,322

121.09

IV. Inventory

87,187

16.39

118,256

21.41

137,960

20.80

31,069

35.63

19,704

16.66

V. Other current assets

25,578

4.80

7,592

1.37

5,048

0.75

-17.986

-70.32

-2.544

-33.51

B. Long-term assets

268,548

50.47

297,877

53.92

271,552

40.94

29,329

10.92

-26.325

-8.84

I. Long-term receivables











II. Fixed assets

71,404

13.42

95,326

17.26

91,923

13.86

23,922

33.50

-3.404

-3.57

III. Investment real estate











IV. Long-term financial investment

limit

184,853

34.74

189,834

34.36

167,206

25.21

4,981

2.69

-22,627

-11.92

V. Other long-term assets

12,291

2.31

12,717

2.30

12,423

1.87

426

3.47

-294

-2.31

TOTAL ASSETS

532,059

100.00

552,449

100.00

663,361

100.00

20,390

3.83

110,912

20.08

(Source: Financial Statement Table – Accounting Department)


maths)

Through the results of calculating the asset structure, we can see the structure of each type of asset, especially the total assets of the company: in general, total assets increased steadily over 3 years. At the end of 2012, total assets were 532,059 million VND, an increase of 3.38% compared to 2011. By 2013, total assets continued to increase by 110,912 million VND to 663,361 million VND, with a growth rate of 20.08%. Specifically, we will evaluate each indicator:

- Current assets


The company's short-term assets increased and decreased unevenly over the past 3 years. Specifically, in 2011, short-term assets were 263,511 million VND, accounting for 49.53% of total assets. In 2012, short-term assets were 254,572 million VND, down 3.39%. In 2013, short-term assets increased sharply to 381,809 million VND, an increase of 137,237 million VND at a rate of 53.91%, accounting for 59.06% of total assets. The company is tending to increase short-term assets to expand its production and business scale. The reasons for the above changes are due to the following factors:

+ Short-term financial investments increased


At the end of 2013, short-term financial investments increased sharply from 14,000 million VND at the end of 2012 to 108,200 million VND with an increase rate of 672.86%.

+ Accounts receivable


Current assets also increased due to increased receivables. Although in 2012, receivables decreased compared to 2011, from 58,892 million VND to 36,602 million VND. But in 2013, receivables increased sharply again with 80,924 million VND, the growth rate was 121.09%, accounting for 12.2% of total assets. Therefore, the company's capital is gradually being occupied.

+ Inventory


The next factor that increases short-term assets is inventory. In 2011, inventory was nearly 87,187 million VND, accounting for 16.39% of total assets. In 2012, inventory increased by 31,069 million VND to 118,256 million VND, accounting for 21.41% of total assets. Comparing 2012 with 2011, the growth rate of inventory was 35.65%. In 2013, inventory only increased at a rate of 16.67% compared to 2012, equivalent to 137,960 million VND, accounting for 20.08% of total assets. Although the growth rate has slowed down, we can see that inventory is still quite large. The reason for large inventory is due to fluctuations in domestic and foreign gasoline prices, so the problem of storing goods is obvious. However, this reserve must be appropriate to the situation.

reality at the company to avoid capital stagnation but still ensure to meet market demand. In addition, because it is a petroleum product, loss is very likely to occur.

+ Other short-term assets


The company's other current assets tend to decrease. In 2011, other current assets were more than 25,578 million VND, by 2012 it had decreased to only 7,592 million VND and in 2013 this item continued to decrease to 5,048 million VND. We can see that other current assets account for a low proportion of total assets. The reason for the decrease is that all items in current assets have decreased.

- Long-term assets


The company's long-term assets increased and decreased unevenly. In 2011, the company's long-term assets were VND268,548 million, accounting for 50.47% of total assets. In 2012, this item increased to VND297,877 million, but in 2013, the company's long-term assets decreased to VND26,325 million, only VND271,552 million, accounting for 40.94%.

The increase in long-term assets is mainly due to fixed assets. In which, the cost of unfinished construction is the main reason, increasing from more than 15 billion VND to more than 50 billion VND over the 3 years 2011 - 2013. The company is investing in building branches, gas stations, warehouse systems, the best storage of goods, etc., causing the cost of unfinished construction to increase correspondingly by 233.3%. In addition, long-term financial investments account for the highest proportion of total assets.

Comment


Agree Privacy Policy *