Through the analysis table, we see that the company's total capital has increased steadily over the past 3 years, showing that the company's scale of operations has expanded. In 2017, the total capital was over 5 billion VND, an increase of more than 950 million VND compared to 2016, with an increase rate of 474.74%. In 2018, the company's total capital was over 13 billion VND, an increase of 7.6 billion VND compared to 2017, corresponding to an increase rate of 139.55%. The reason for the increase in total capital is due to increased liabilities and equity. We consider each item separately.
2.2.3. Liabilities :
Payables increased sharply from 124 million VND in 2016 to 4,727 billion VND in 2017 and increased to more than 8.1 billion VND in 2018. Comparing 2017 with 2016, payables increased by nearly 4,603 billion VND, corresponding to an increase rate of 3,712.11%. In 2018, the increase rate increased by only 73.41% compared to 2017 with an increase of 3.69 billion VND. The proportion of payables in 2016 accounted for 13% of total capital, by 2017 this proportion changed to 86.5% of total capital. This shows that the enterprise is occupying capital from other units. By 2018, the proportion of payables decreased to 62.6% because the company was gradually paying off many debts. The steady increase in payables over the years was due to the influence of the following factors:
- Short-term debt: Is the fastest source of funding for businesses when capital cannot be rotated in time, however, using a lot of short-term debt will lead to unsafe operations for the unit when these debts are due and the unit cannot pay. In the past three years, short-term debt accounted for the highest proportion of payables and total capital. In 2016, short-term debt was 124 million VND, accounting for 100% of payables. In 2017, it was over 2,492 billion VND, accounting for 52.73% of payables. In 2017, short-term debt increased by 2,368 billion VND compared to 2016, or an increase of 1910.06%. In 2018, short-term debt was nearly 4,762 billion VND, accounting for 58.11% of payables, an increase of over 2,27 billion VND compared to 2017, or an increase of 91.09%. Increasing short-term debt shows that the company is having financial difficulties.
capital in business. To see more clearly, we will analyze each item in short-term debt.
+ Short-term loans: short-term loans in 2016 were 50 million VND, accounting for 40.32% of short-term debt. By 2017, they were over 2,070,000,000 VND, accounting for 83.05% of short-term debt, an increase of more than 40 times compared to 2016. By 2018, short-term loans decreased to 1,270,000,000 VND, accounting for 26.66% of total short-term debt, a decrease of 38.65% compared to 2017 but still higher than in 2016. Short-term loans increased in 2017 compared to 2016 because the company was expanding its operations, requiring a lot of capital, but the current equity could not meet the company's needs. In 2018, due to the complicated economic situation and market interest rates, and the company's equity increased to some extent to meet capital needs, the company limited short-term loans.
+ Payables to sellers fluctuated unsteadily from 74 million VND in 2016, accounting for 59.68% of short-term debt, to over 423 million VND, accounting for 16.99% of total short-term debt. In 2017, the growth rate was 472.27% compared to 2016, showing that in 2017, the company had not yet resolved part of its debt. By 2018, the item payable to sellers continued to increase by more than 3.07 billion VND compared to 2017, corresponding to an increase rate of nearly 725.14%.
- Long-term debt: The company's long-term debt also increased gradually over the years. In 2016, the company did not have any long-term debt, in 2017, the long-term debt was 2,234 billion VND, accounting for 47.27% of total liabilities. By 2018, the long-term debt increased to 3,434 billion VND, accounting for 41.89% of total liabilities. In 2018, it increased by more than 1.19 billion VND compared to 2017, the growth rate was 53.68%. The reason for the increase in long-term debt in 2018 was because the company expanded its business activities, so it needed more capital, the company expanded its bank loans, causing long-term debt to increase. The company needs to have many measures to reduce outstanding bank debts.
2.2.4 Owner's equity:
Owner's equity is the most important and safest source of funding that determines the autonomy of the unit in business activities. Specifically, owner's equity in 2016 was over 826,560,353 VND, accounting for 86.96% of total capital, in 2017 it was 736,239,245 VND, accounting for 13.48% of total capital. In 2018 it was 4,890,444,851 VND, accounting for 37.37% of total capital. The proportion of owner's equity compared to total assets increased, helping the company to be more proactive in business activities. The reason why owner's equity accounted for a large proportion in 2016 was because the company had just been established, so the main source of capital was contributed by shareholders. In 2017, equity only accounted for a small proportion of total capital, showing that the company still lacked operating capital or that the company was still occupying capital from other units. In 2018, the proportion of equity increased, showing that the company was operating better. Equity is the composition of the following items:
Business capital: remained the same in 2016 and 2017. By 2018, business capital increased from 1 billion VND to 5 billion VND, 5 times. The reason is that the company mobilized additional capital contributions from shareholders.
Undistributed profits have been negative for the past years but have decreased steadily over the years, showing that the company is gradually doing business successfully.
The above are resources owned by the company, so the increase in capital and funds shows the company's financial independence.
General comments:
The company's liabilities have increased over the past three years, especially short-term debt, showing that the company is facing financial difficulties and is facing an additional burden of debt payments. The company needs to consider reducing its loans and other people's capital. However, the proportion of liabilities to total capital is on a downward trend while the company is expanding its business operations, showing that the company is becoming more proactive in its business capital.
Owner's equity has fluctuated over the past three years, but in general, the company has become more proactive in its business operations, but in terms of the proportion of owner's equity, it still accounts for a low proportion of total capital. This shows that the company is lacking in business capital, so the company needs to find capital from outside.
2.2.3. Indicators for evaluating the efficiency of capital use at Khanh Ha Trading and Transport Import-Export Company Limited
2.2.3.1.Indicators for evaluating the efficiency of working capital use at Khanh Ha Trading and Transport Import-Export Company Limited
GRADUATION THESIS OF HAI PHONG PRIVATE UNIVERSITY
Table 2.4. Working capital efficiency index table at Khanh Ha Trading and Transport Import-Export Company Limited
STT
Target | Unit of measure | 2016 | 2017 | 2018 | Difference | ||||
Year 2017/2016 | Year 2018/2017 | ||||||||
+/- | % | +/- | % | ||||||
1 | Net revenue | copper | 235,400,000 | 3,025,330,795 | 12,415,203,630 | 2,789,930,795 | 1,185 | 9,389,872,835 | 310 |
2 | Current assets | copper | 439,560,353 | 833,953,240 | 6,340,038,214 | 394,392,887 | 90 | 5,506,084,974 | 660 |
3 | Short-term debt | copper | 0 | 0 | 0 | 0 | 0 | ||
4 | Working capital | copper | 439,560,353 | 833,953,240 | 6,340,038,214 | 394,392,887 | 90 | 5,506,084,974 | 660 |
5 | Average working capital | copper | 636,756,797 | 3,586,995,727 | 416,976,620 | 190 | 2,950,238,931 | 463 | |
6 | Profit after tax | copper | -173,439,647 | -89,921,108 | 123,364,485 | 83,518,539 | -48 | 244,126,714 | -271 |
7 | Number of revolutions of the working capital (7) = (1) : (5) | time | 4.75 | 3.46 | 4.75 | - 1.29 | -27 | ||
8 | Working capital rotation period (8) = 360 : (7) | time | 75.77 | 104.01 | 75.77 | 28.24 | 37 | ||
9 | Working capital return ratio (9) = (6) : (5) | time | - 0.14 | 0.03 | - 0.14 | 0.18 | - 124 | ||
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Source : Balance sheet of Khanh Ha Transport Trading Import Export Company Limited in 2016, 2017, 2018
Doan Thi Thanh Hai _QT1801T 36
GRADUATION THESIS OF HAI PHONG PRIVATE UNIVERSITY
Through the above table, we can see that the average working capital has increased gradually over the years, showing that the efficiency of working capital use in the company is very good.
In 2017, the number of turnovers increased to 4.75. By 2018, the number of working capital turnovers decreased to 3.46, down 27% compared to 2017. In the period from 2016 to 2018, the working capital turnover of the enterprise in 2017 was the best. Enterprises need to strive to maintain and further improve the efficiency of using their working capital.
The change in the number of working capital turnover cycles also changes the number of working capital turnover periods of the enterprise. In 2017, it was only 75.77, proving that the working capital in 2017 was used very well by the enterprise. By 2018, the working capital turnover period increased to 28.24 days compared to 2017, showing that the efficiency of working capital use in 2018 was lower than in 2017.
The working capital profitability ratio in 2016 and 2017 shows that the company made a loss in these two years. In comparison, the company made a smaller loss in 2017 than in 2016, showing that the company gradually improved its business operations to compensate for the losses in 2016. In 2018, the profitability ratio was 0.04, meaning that for every 100 VND of working capital, the company generated 4 VND of revenue. This ratio is still too low, so the company needs to take more measures to increase this ratio.
2.2.3.2.Indicators for evaluating the efficiency of fixed capital use at Khanh Ha Trading and Transport Import-Export Company Limited
Doan Thi Thanh Hai _QT1801T 37
GRADUATION THESIS OF HAI PHONG PRIVATE UNIVERSITY
Table 2.5. Indicators for evaluating the efficiency of capital use at Khanh Ha Trading and Transport Import-Export Company Limited
STT
Target | Unit | 2016 | 2017 | 2018 | Difference | ||||
Year 2017/2016 | Year 2018/2017 | ||||||||
+/- | % | +/- | % | ||||||
1 | Net revenue | copper | 235,400,000 | 3,025,330,795 | 12,415,203,630 | 2,789,930,795 | 1,185 | 9,389,872,835 | 310 |
2 | Profit after tax | copper | -173,439,647 | - 89,921,108 | 123,364,485 | 83,518,539 | - 48 | 244,126,714 | -271 |
3 | Fixed capital | copper | 511,000,000 | 4,629,301,605 | 6,747,295,741 | 4.118.301.605 | 806 | 2,117,994,136 | 46 |
4 | Average fixed capital | copper | 2,570,150,803 | 5,688,298,673 | 2,570,150,803 | 3,118,147,871 | 121 | ||
5 | Original cost of assets fixed | copper | 511,000,000 | 988.191.818 | 4,458,882,728 | 477,191,818 | 48.28 | 3,470,690,910 | 70 |
6 | Total assets | copper | 950.560.353 | 833,953,240 | 6,340,038,214 | - 116,607,113 | - 12 | 5,506,084,974 | 660 |
7 | Performance fixed capital | time | 1.18 | 2.18 | 1.18 | 1.01 | 85 | ||
8 | Fixed capital utilization efficiency | time | - 0.03 | 0.03 | - 0.03 | 0.06 | - 177 | ||
9 | Profitability of fixed assets | time | - 0.34 | - 0.02 | 0.02 | 0.32 | - 95 | 0.04 | - 201 |
10 | Fixed asset utilization efficiency | time | 0.46 | 0.61 | 1.47 | 0.15 | 32 | 0.86 | 142 |
Source : Balance sheet of Khanh Ha Transport Trading Import Export Company Limited in 2016, 2017, 2018
Doan Thi Thanh Hai _QT1801T 38
GRADUATION THESIS OF HAI PHONG PRIVATE UNIVERSITY
Through the table above, we can see that the efficiency of fixed capital usage has increased steadily over the years. In 2017, it increased by 28% compared to 2016, and in 2018, it increased by 85% compared to 2017. The reason is that revenue has increased steadily over the years, and at the same time, the enterprise has increased investment in fixed assets, creating good efficiency in using fixed capital.
In 2016 and 2017, the business suffered losses, so the profitability of fixed assets was non-existent. By 2018, the profitability had increased from -0.02 to 0.02, showing that the efficiency of using fixed assets of the business is gradually improving.
The nature of the business is that it is a transportation business, so the fixed capital accounts for a large proportion. Therefore, the efficiency of using fixed capital of the business also requires high caution.
From the above table, we can see that the efficiency of using fixed capital of the enterprise has also increased gradually over the years. This shows that the enterprise has made good use of fixed capital. The enterprise needs to promote it further. However, this ratio is still very low, so the enterprise needs to come up with many solutions to promote the efficiency of using its fixed capital.
2.2.3.3.Indicators for evaluating the efficiency of capital use at Khanh Ha Trading and Transport Import-Export Company Limited
Doan Thi Thanh Hai _QT1801T 39