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Profitability Analysis Table of Input Factors of Dai Thanh Wood Technology Joint Stock Company


It would be more beneficial in the business strategy planning process if the Company could use more effective analytical tools to clearly identify the fluctuating nature of business performance indicators in order to have specific solutions.

Table 2.12: Profitability analysis table of input factors of Dai Thanh Wood Technology Joint Stock Company

STT

INDICATORS

2009

2010

DIFFERENCE

1

Profit after

tax (VND)

294,389,965

6,283,830,314

+ 5,989,440,349

2

Revenue

pure (copper)

213,689,626,354

330,412,939,550

+116.723.313.196

3

Total assets

(copper)

336.456.774.037

462.143.628.834

+125.686.854.797

4

Equity

(copper)

48,076,827,442

86,642,481,937

+ 38,565,654,495

5

Revenue profitability =

(1)*100/(2) (%)


0.14


1.90


+ 1.76

6

Return on assets =

(1)*100/(3) (%)


0.09


1.36


+ 1.27

7

Profitability of

equity = (1)*100/(4) (%)


0.61


7.25


+ 6.64

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Profitability Analysis Table of Input Factors of Dai Thanh Wood Technology Joint Stock Company

(Source: Business performance analysis tables of Dai Thanh Wood Technology Joint Stock Company [23])

Regarding Tan Thanh Dung Quat Wood Export Joint Stock Company, the Company's conclusion after analyzing the Profitability indicators in Table 2.13 (page

116) is still the business activity of the enterprise in 2010 is not effective.


The results were better than in 2009. According to the Company, because the profit after tax in 2010 was still a negative number, the Profitability indicators, although improved, still had negative values, showing ineffective business operations.

Table 2.13: Profitability analysis table of input factors of Tan Thanh Dung Quat Wood Export Joint Stock Company

STT

INDICATORS

2009

2010

DIFFERENCE

1

Profit

tax (VND)

after

(1,029,091,912)

(73,619,805)

+

955.472.107

2

Net revenue

(copper)

9,538,947,005

14,580,087,241

+ 5,041,140,236

3

CEO

(copper)

product

19,397,293,108

23,345,481,573

+ 3,948,188,465

4

Equity

(copper)

12,046,937,932

17.150.725.122

+ 5,103,787,190

5

Revenue profitability =

(1)*100/(2) (%)


- 10.79


- 0.50


+ 10.29

6

Return on assets =

(1)*100/(3) (%)


- 5.31


- 0.32


+ 4.99

7

Profitability of

equity = (1)*100/(4) (%)


- 8.54


- 0.43


+ 8.11

(Source: Business performance analysis tables of Tan Thanh Dung Quat Wood Export Joint Stock Company [29])

However, we believe that the comments of Tan Thanh Dung Quat Wood Export Joint Stock Company may be one-sided if there is no proper attention to factors affecting after-tax profit - the main indicator.


affecting the fluctuations of profitability indicators. According to our calculations, the actual data of the Company shows that the reason for the negative profit after tax is mainly because financial income is not enough to cover financial costs, although the enterprise has changed its capital use policy to reduce interest expenses - the main component of financial costs. Moreover, the enterprise has not yet analyzed the nature of the movement of the indicators, so it cannot confirm that the conclusions made are completely accurate.

For Gia Dai Toan Joint Stock Company, the analysis process was not as smooth as the previous two contents when the Profitability indicators shown in Table 2.14 (page 117) in 2010 and 2009 fluctuated in different directions, which made it difficult for the Company to draw conclusions.

Table 2.14: Profitability analysis table of input factors of Gia Dai Toan Joint Stock Company

STT

INDICATORS

2009

2010

DIFFERENCE

DEVIATED

1

Profit after tax

(copper)

351,102,774

410,834,389

+ 59,731,615

2

Net revenue (VND)

11,896,563,431

16,378,047,940

+ 4,481,484,509

3

Total assets (VND)

3,539,263,039

3,826,762,631

+ 287,499,592

4

Equity (VND)

2,401,102,774

2,811,937,163

+ 410,834,389

5

Business profitability

revenue = (1)*100/(2) (%)

2.95

2.51

- 0.44

6

Asset yield

= (1)*100/(3) (%)

9.92

10.74

+ 0.82

7

Return on capital

CSH = (1)*100/(4) (%)

14.62

14.61

- 0.01

(Source: Business performance analysis tables of Gia Dai Toan Joint Stock Company [26])


The reason why Gia Dai Toan Joint Stock Company is confused in drawing analytical conclusions is because it has not been able to use the method of analyzing the relationship between business performance indicators. This difficulty has affected the Company's interest in business performance analysis activities.

For An Nhon Forest Products Processing Enterprise, through table 2.15 (page

118) The enterprise concluded that although compared to 2009, the Profitability of revenue in 2010 decreased, both the Profitability of assets and the Profitability of equity increased significantly and the profit after tax always had a positive value, so it can be affirmed that business activities have become more effective.

Table 2.15: Profitability analysis table of input factors of An Nhon Forest Products Processing Enterprise

STT

INDICATORS

2009

2010

DIFFERENCE

1

Profit after tax

(copper)

1,158,395,942

1,537,631,142

+ 379,235,200

2

Net revenue

(copper)

36,899,802,811

50,756,648,083

+13.856.845.272

3

Total assets (VND)

22,867,284,433

18,614,209,370

- 4,253,075,063

4

Equity

(copper)

4,542,696,152

5,096,343,085

+ 553,646,933

5

Revenue profitability =

(1)*100/(2) (%)


3.14


3.03


- 0.11

6

Profitability of assets

product = (1)*100/(3) (%)

5.07

8.26

+ 3.19

7

Return on capital

CSH = (1)*100/(4) (%)


25.50


30.17


+ 4.67

(Source: Business performance analysis tables of An Nhon Forest Products Processing Enterprise [97])


Although the conclusions that An Nhon Forestry Processing Enterprise has given are also relatively tight and logical through all the contents. However, in our opinion, if the Enterprise cares to explain why the Revenue Profitability indicator has decreased and find solutions to overcome it, the conclusions will be of better quality. The reason is that if the enterprise is satisfied with the results obtained, it is likely to affect the finding of measures to improve business efficiency in the coming years.

Thus, in the group of indicators for analyzing the profitability of costs or input factors, wood processing enterprises exporting in the South Central region are only interested in the indicators of the Profitability of input factors but have not paid any attention to the indicators of the Profitability of costs. This is not consistent with the business characteristics of enterprises in the industry when costs account for a large proportion and significantly affect the business efficiency of enterprises, especially direct material costs. Moreover, enterprises have not been interested or have been interested but do not know how to use analytical methods based on the relationship between business efficiency indicators. In addition, many enterprises are still confused when drawing analytical conclusions when the changes of indicators are in opposite directions or completely deny all efforts to improve business activities compared to the previous period if the profit is already negative. In addition, some businesses are too satisfied with current good results, so they do not care to find out the causes that have little impact on business efficiency and ignore improving those weaknesses.

In short, although many indicators have been developed to analyze business performance and to evaluate business performance, wood processing enterprises exporting in the South Central region still evaluate based on subjective judgments without a solid basis.


This situation is quite common because it comes from a fundamental cause which is that the method of analyzing business performance is not really suitable. The common method that businesses use is the comparison method, with this method it is impossible to determine the nature of the fluctuations in business performance indicators but can only observe the superficial changes.

2.3. ASSESSMENT OF THE CURRENT STATE OF BUSINESS PERFORMANCE ANALYSIS IN WOOD PROCESSING ENTERPRISES FOR EXPORT IN THE SOUTH CENTRAL REGION

2.3.1. About the analysis organization

If fully equipped with knowledge of business performance analysis, businesses will see that business performance analysis plays a very important role in business operations. Business performance analysis not only helps businesses evaluate the current state of operations as well as business results, but can also propose solutions to improve business operations as well as make reasonable decisions based on the conclusions of the analysis process. However, the current reality shows that business performance analysis has not really received attention in wood processing export enterprises in the South Central region. Specifically:

In terms of achievements: it is undeniable that there are some enterprises interested in business performance analysis in one form or another, although the number of enterprises in this category is not large. This shows that there are enterprises that are aware of the importance of business performance analysis, although not fully.

Regarding the aspects that have not been achieved, they can specifically include:

First of all, we must mention the attitude of businesses towards business performance analysis: Most businesses have not really realized the importance and usefulness of business performance analysis.


Business planning and future development orientation for the business have not yet required mandatory business performance analysis.

Next, it can be seen immediately that the business performance analysis process has not been organized scientifically and specifically. Currently, most businesses that have conducted business performance analysis only conduct it in a sketchy manner or do not follow a standard analysis process. Therefore, the documents, human resources, and material resources used in the analysis are not fully prepared, the analysis content is not consistent between periods, and the analysis conclusions are still general.

In addition, business performance analysis has not been organized regularly and periodically because the analysis process must be rebuilt each time an analysis is performed, which hinders the business performance analysis of the enterprise.

In addition, the work of analyzing business performance is assigned to a part-time accountant, so the reliability and completeness of the information provided by the analysis process cannot be guaranteed. In addition, the person providing accounting information for business performance analysis is also the person performing the analysis, which cannot ensure the objectivity of the information.

Finally, another weakness that businesses need to overcome is the quality of accounting work. Quality here refers not only to the capacity of the accountant but also to whether the work performed by the Accounting Department has truly provided accurate, objective and useful information to serve the analysis of business performance.

In summary, regarding the work of organizing and analyzing business efficiency in wood processing enterprises for export in the South Central region, the aspects that have been and have not been implemented can be summarized as follows:


In terms of implementation: many businesses have conducted business performance analysis.

In terms of implementation: most businesses do not realize the importance of business performance analysis, so the analysis process is not scientifically and specifically organized, analysis activities are not regular and analysis staff lack expertise.

Thus, although some wood processing enterprises exporting in the South Central region have conducted business efficiency analysis, the analysis is still quite arbitrary, not organized into a reasonable process, the system of analysis indicators has not yet fully reflected the characteristics of the industry and the analysis methods are still simple and have not clarified the nature of the problem.

2.3.2. About the analysis method

Business performance analysis methods contribute significantly to providing useful information for management. Therefore, if appropriate business performance analysis methods are selected and used, the analysis results will indicate not only the trend of the analysis indicators but also the nature and causes affecting the fluctuations of the indicators.

The reality at the wood processing enterprises exporting in the South Central region today shows that the main method used is the comparison method. It is undeniable that the advantages of this method are simplicity, easy calculation and time saving, but these advantages limit the provision of specific and detailed information about the analysis content. When using the comparison method in analysis, enterprises only obtain conclusions about the trend of the business performance of the enterprise but cannot obtain accurate conclusions about the nature of the analysis content. The nature of the analysis content will help the analysis conclusion of the enterprise.

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