General Theoretical Basis of Corporate Finance and Corporate Financial Analysis.

INTRODUCTION

Vietnam's economy is in the process of integration and globalization with the world economy. In particular, recently, the world is suffering from the world economic crisis and the public debt crisis in many European countries. That has pushed domestic enterprises not only to continuously develop and expand production and business, but also to have measures to strictly manage their financial and production situation in increasingly competitive market conditions. the stronger.

Therefore, to survive and develop, business administrators must fully and comprehensively grasp the developments in production and business activities. To effectively serve the management of production and business activities, administrators need to regularly analyze the financial situation of the enterprise.

Realizing the importance of financial analysis in practice and the knowledge learned with the enthusiastic guidance of Master Cao Thi Hong Hanh, I chose to write a thesis with the topic " Financial Analysis and some measures to improve the financial situation at Hai Phong Tourism Services Joint Stock Company .

The content of my thesis includes 3 chapters:

Maybe you are interested!

- Chapter 1: General theoretical basis of corporate finance and corporate financial analysis.

- Chapter 2: Analysis of the financial situation at Hai Phong Tourism Services Joint Stock Company.

- Chapter 3: Some measures to improve the financial situation at Hai Phong Tourism Services Joint Stock Company.

Because the time to research and write my thesis is limited, along with my limited knowledge, my thesis cannot avoid shortcomings. Therefore, I respectfully hope to receive help and comments from teachers to make my graduation thesis more complete.

I sincerely thank you!

CHAPTER I: GENERAL THEORY OF CORPORATE FINANCE AND CORPORATE FINANCIAL ANALYSIS

1.1 Theoretical basis of corporate finance and corporate financial analysis

1.1.1 Concept of Corporate Finance

Corporate finance is a stage of the financial system in the economy, and is an objective economic category associated with the birth of the commodity and monetary economy.

To conduct business activities, any enterprise needs a certain amount of monetary capital, which is a necessary premise. The operating process of an enterprise is the process of forming, distributing and using the enterprise's monetary funds. In that process, cash flows associated with investment activities and regular business activities of the enterprise arise, forming the movement of the enterprise's financial flows.

Associated with the process of creating, distributing and using monetary funds of businesses are economic relationships expressed in the form of value, that is, financial relationships within the business:

- The relationship between businesses and the state is expressed through the State providing capital for businesses to operate and businesses performing financial obligations to the state such as paying taxes and fees... State Budget.

- Relationships between businesses and other economic entities such as payment relationships in borrowing or lending capital, investing capital, buying or selling assets, materials, goods and other services.

- Relationships within the enterprise, expressed in the enterprise's payment of salaries and wages and implementation of bonuses and fines to the enterprise's employees, payment relationships between departments within the enterprise. enterprises, in the distribution of after-tax profits of enterprises; distributing profits to shareholders; The formation of corporate funds...

From the above issue, the following basic conclusions can be drawn:

- Corporate finance is essentially distribution relationships in the form of value associated with the creation or use of corporate monetary funds in the business process. In terms of corporate finance, it reflects the movement and transformation of financial resources in the distribution process to create or use corporate monetary funds.

- Economic relationships associated with the distribution to create or use of an enterprise's monetary funds constitute the enterprise's financial relationships. Therefore, activities associated with the distribution to create and use monetary funds belong to the financial activities of the enterprise.

1.1.2 Corporate financial analysis

1.1.2.1 Concepts and goals of corporate financial analysis

a, Concept:

Financial analysis is the totality of methods used to evaluate the past and present financial situation, helping managers make accurate management decisions and evaluate the business, thereby helping Interested parties come to accurate financial predictions of the business, thereby being able to make decisions that suit their own interests.

b, Objective:

Corporate financial analysis for each different subject will meet different professional issues:

+ Financial analysis for managers: as the person directly managing the business, the manager understands the business finances best, so they have a lot of information for analysis. Corporate financial analysis for managers aims to meet the following goals: Create regular cycles to evaluate management activities in the past period, the implementation of financial balance, profitability profitability, solvency and financial risks in the enterprise

Direct the decisions of the Board of Directors in a direction consistent with the actual situation of the enterprise, such as investment decisions, financing, profit distribution... Corporate financial analysis is the basis for evaluating projects. Financial prediction. Corporate financial analysis is a tool to check and control operations and management in an enterprise.

Financial analysis highlights the importance of financial forecasting, which is the foundation of management, clarifying not only financial policy but also general policies within the enterprise.

+ Financial analysis for investors: investors are people who entrust their capital to businesses to manage and thus may have risks. These are shareholders, individuals or other units and businesses. These subjects are directly interested in calculations about the value of the business. Investors' income is divided profits and surplus value of capital. These two factors are largely influenced by the profits earned by the business. In reality, investors evaluate the profitability of the business. The main question that requires clarification is: what will the average profit per share of the business be? It is also important to see that: investors are not satisfied with the profit calculated by accounting, thinking that this profit is very far related to the real profit. Calculating profits in advance will be fully researched in the enterprise's profit distribution policy and in risk research, directing options to the most appropriate signals.

Investors must rely on intermediary experts (financial analysts) to research financial and economic information, have direct contact with business management, and clarify development prospects. business development and evaluation of stocks on the financial market.

Financial analysis for investors is to evaluate businesses and estimate stock values, based on studying financial statements, profitability, analyzing business risks...

+ Financial analysis for lenders: These are business lenders

Enterprises borrow capital to ensure production and business needs. When lending, they must be sure of their ability to repay the loan. Their income is loan interest. Therefore, financial analysis for lenders is to determine the customer's ability to repay debt. However, the analysis of long-term loans and short-term loans has different features.

+ For short-term loans: lenders are especially interested in the business's ability to pay immediately. In other words, it is the business's ability to respond when debt comes due.

+ For long-term loans: the lender must be confident in the repayment ability and profitability of the business, and the repayment of capital and interest depends on this profitability.

+ Financial analysis for salaried employees in the business: These are people whose only source of income is their salary. However, there are also businesses where salary earners have a certain number of shares in the business. For these businesses, salary earners have income from paid salaries and distributed profits. Both of these incomes depend on the results of production and business activities of the enterprise. Therefore, financial analysis helps them orient their stable jobs, on that basis, feel secure to devote their efforts to the production and business activities of the enterprise depending on the work assigned and undertaken.

From the issues mentioned above, it shows that corporate financial analysis is a useful tool used to determine economic value, to evaluate the strengths and weaknesses of a business, and to find out objective and subjective reasons, helping each subject choose and make decisions consistent with the purposes they care about.

1.1.2.2 Methods and documents for corporate financial analysis

a. Methods of corporate financial analysis

To analyze corporate finances, one can use one or a combination of different methods in the system of financial analysis methods.

business. Commonly used financial analysis methods are: comparison method, comparison method, factor analysis method, graph method, chart method, financial math method... including method of analyzing hypothetical situations. Usually people use some of the following basic methods:

* Comparison method:

This is a widely used method in economic analysis in general and financial analysis in particular. When using the comparison method, pay attention to the following issues:

- Firstly, comparison conditions:

+ Must exist at least 2 criteria

+ Indicators must ensure comparability. That is unity in economic content, unity in calculation methods, unity in time and units of measurement.

- Second, determine the origin for comparison:

+ When determining the trend and development speed of an analytical indicator, the comparison base is determined to be the value of the analytical indicator at a previous time, a previous period or a series of previous periods. At this time, the targets at this time will be compared with the previous period, this period with the previous period, this year with the previous year or a series of previous periods.

+ When evaluating the implementation of set goals and tasks, the basis of comparison is the planned value of the analytical indicator. Then, compare the actual with the planned target.

+ When determining the position of a business, the basis of comparison is determined to be the average value of the industry or the analytical criteria of competitors.

- Third, comparison techniques:

+ Compare using absolute numbers to see the fluctuations in absolute numbers of analytical criteria.

+ Compare with relative numbers to see whether the actual target has increased or not compared to the base period

How much % reduction?

* Financial ratio analysis method:

Sources of economic and financial information have been improved and provided more fully, which is the basis for forming reliable reference criteria for evaluating the financial situation in enterprises. The application of information technology allows data accumulation and accelerates the calculation process. This analysis method helps exploit and use data more effectively through systematic analysis of a series of ratios in continuous or interrupted time series.

This method is based on the standard meaning of financial ratios and outlines in financial relationships. In principle, this method requires the determination of thresholds and norms from which to comment and evaluate the enterprise's financial situation on the basis of comparing the enterprise's financial indicators and ratios with those of the enterprise. reference rates.

In corporate financial analysis, financial ratios are divided into groups of specific indicators that reflect the basic content according to the business's analysis goals. But in general, there are four basic groups of indicators:

+ Solvency indicator group

+ Group of indicators on financial structure and investment situation

+ Operational target group

+ Profitability target group

*Dupont financial analysis method:

Dupont financial analysis method is a method of analyzing the relationship between financial indicators. Thanks to the analysis of the links between indicators, business administrators can discover the factors that affect the analyzed indicators in a strict logical sequence. The specific content of this method will be introduced in the following section.

b, Documents used in the process of corporate financial analysis

Use correct and complete documents during financial analysis

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