B. Financial Structure Analysis: I. Asset Structure Analysis

GROUP 2. 42K18.3.
CLC 1
B. FINANCIAL STRUCTURE ANALYSIS:

I. Asset structure analysis:
2015 2016 2017
Year
VNĐ % VNĐ % VNĐ %
I. Current
225,311,490,724 78.8 242,516,249,560 82 192,288,057,739 80
assets
1.Cash &
cash 20,744,102,063 7.25 58,778,051,271 19.95 62,944,437,528 26.22
equivalents
2. Short-term
financial 130,000,000,000 45.44 92,000,000,000 31.23 45,000,000,000 18.75
investment
3. Short-term
59,735,704,402 20.88 76,642,832,767 26.01 58,892,937,520 24.54
receivables
4. Inventories 13,893,741,033 4.86 14,749,245,481 5.01 24,290,216,889 10.12
5. Other
937,943,226 0.33 346,120,041 0.12 1,160,465,802 0.48
current assets
II. Long term
60,769,552,904 21.2 52,098,852,626 18 47,734,270,417 20
assets
1. Long term
- - - - - -
receivables
2.fixed assets 38,667,667,260 13.52 14,414,150,304 4.89 11,169,481,044 4.65
3.Investment
- - 23,808,760,680 8.08 23,808,760,680 9.92
property
4.Long term
work in 3,090,433,809 1.08 378,847,205 0.13 597,880,913 0.25
progress
5.Long term
financial 6,500,000,000 2.27 6,500,000,000 2.21 6,500,000,000 2.71
investment
other non-
12,511,451,835 4.37 6,997,094,437 2.37 5,658,147,780 2.36
current assets
Total assets 286,081,043,628 100.00 294,615,102,186 100.00 240,022,328,156 100.00
 From the asset structure analysis, we have commented:

1. Proportion of cash & cash equivalents:
In 2015, Proportion of cash & cash equivalents are 7,25 percent which is bad
liquidity to not enough amount of cash to payment for necessary business activities.
GROUP 2. 42K18.3.CLC 2
But, the data of 2016 by 19,95 percent and the data of 2017 by 26,22 percent. An
increase can be seen in proportion of cash & cash equivalents is good liquidity to
ensure the business activities. This cash reserve is quite high to not use exceed cash
to investment which lose opportunities to earn profit in the future.
2. Proportion of financial investment:
In the period of 3 year, the proportion of financial investments are not change and
rise slightly in 2017 (nearly 3%). The proportion of short-term financial investments
are high level to show association between SCD company with other banks. SCD
company have many opportunities to earn profit from bank deposit.
Proportion of short-term financial investments in 2015 is triple compared to
proportion of short-term financial investments in 2017. An decrease can be seen in
bank deposit because in 2016 and 2017 proportion of recelvables is rise so
proportion of short-term financial investments is decrease to help for business
operation.
3. Proportion of account receivable - short-term :
In the period of 3 year, the proportion of short-term receivables is high over 20
percent. This data show that capital sources of SCD company is occupied in the
short-term by others.If these receivables are recovered early, they will add a large
amount of capital for the business operation. The company need not to borrow from
banks.
Reason:
- Distribution methods are almost wholesale which account for a large proportion of
receivables (over 50% of total receivables). For example, in 2017, Hieu Huy
services trading company limited (36%), Khue Minh trading company
limited(14%),Quoc Thang company limited (10%)
-Customer’s liquidity is bad. For examples, Hieu Huy Company’ receivables rise
from 2015(only 6%) to 2017 (at 36%)
Morover, SCD company does not long term receivables.
4. Proportion of inventories:
Proportion of inventories is medium nearly 5 percent between 2015 and 2016. SCD
company is the drinks industry that material is not seasonality in business. Therefor,
material and finish goods need not reserve overmuch. Purpose is reduce warehouse
cost and maintenance cost so rising to use effective captital sources. In addtion, the
amount of allowance for decline in inventories is decrease.
In 2017, proportion of inventories in 2017 is double compared to the previous two
year. Because finish good of SCD company reduce consumption when the amount
of revenue decrease by 92,519 (million VNĐ).
5. Proportion of fixed assets:
Proportion of fixed assets are medium because of the drink industry focus on
produce beverages. Therefor, Buying machinery and equipment is medium level.
This proportion help company can easily withdraw from the drinks industry.
Proportion of fixed assets in 2015 is triple compared to the next 2 year. Because in
2015 SCD company buy machinery nearly 2 billion so proportion of fixed assets is
rise. Morover, in 2016, SCD company is assets liquidation and also depreciation of
fixed assets for new machinery so proportion of fixed assets is decrease.
6. Porportion of investments property:
In 2015, SCD company is not investments property. But, from 2016 to 2017, The
company have porportion of investments property nearly 8-10% to bring profit in
the future
7. Proportion of other current assets & non-current assets, Porportion of long
term work in progress:
Proportion of other non-current assets, proportion of other current assets and
porportion of long term work in progress are low so less affect for business
operation.
II. Source of fund analysis:
Index 2015 2016 2017

Total liabilities (1) 85,460,061,296 81,900,153,681 54,351,114,876
Total owner’equity (2) 200,620,982,332 212,714,948,505 185,671,213,280
Short-term resources (3) 84,840,061,296 81,280,153,681 81,280,153,681
Long-term resources (4) 201,240,982,332 213,334,948,505 186,391,213,280
Total resources (5) 286,081,043,628 294,615,102,186 240,022,328,156
Debt ratio
29.87% 27.80% 22.64%
(6) = (1)/(5)*100%
Self-fund ratio
70.13% 72.20% 77.36%
(7) = (2)/(5)*100%
Debt/owner's equity ratio
42.60% 38.50% 29.27%
(8) = (1)/(2)*100%
Short-term resources ratio
29.66% 27.59% 22.34%
(9) = (3)/(5)*100%
Long-term resources ratio
70.34% 72.41% 77.66%
(10) = (4)/(5)*100%
Owner’ equity/ Long-term
resources ratio 99.69% 99.71% 99.61%
(11) = (2)/(4)*100%
 From the sourece of fund analysis, we have commented:

-We can see that total liabilities and total resources fell sharply from 2015-2017
(Liabilities: Decrease 31,108,946,420 vnd; Resources: Decrease 46,058,715,472
vnd ) . While total owner’s equity has changed significantly over the year(2015-
2016: Increase from 200,620,982,332 to 212,714,948,505; 2016-2017: Decline to
185,671,213,280 . That leads to debt ratio and debt /owner’s equity ratio of the
company at a low and declining level(Debt ratio from 29.87% to 22.64% and debt
/owner’s equity ratio from 42.6% to 29.27%) . It means that the company's financial
autonomy is high and growing. This is a great advantage to attract investors of the
company.
-The temporary resource ratio decrease dramatically from 2015 to 2017 (Up to
7.32%).It show that their business is dependent on short term borrowing.Beside,
this table show that the long-term resources ratio was high and decrease from 2015
to 2017( From 70.34% to 77.66%). So the company was less dependent on funding.
The owner’s equity/long-term resources ratio was very high (99.69% in 2015,
99.71% in 2016,99.61 % in 2017). It means long term liabilities accounted for very
little part in total long term resources . The company is fully capable of attracting
investment capital, investors will believe in the development of the company in the
future.
III. Long-term financial investment:

- Long- Term financial balance is presented by the indicator: Net working capital
(NWC/WC)
- Net working capital = Long- Term resources – Long- Term assets
= Long- Term Liabilities + Owner’s Equity – Long- Term Asset
Year
2015 2016 2017
Index
Long- Term Liabilities (1) 620,000,000 620,000,000 720,000,000
Owner’s Equity (2) 200,620,982,332 212,714,948,505 185,671,213,280
Long- Term Asset (3) 60,769,552,904 52,098,852,626 47,734,270,417
Long- Term resources
201.240.982.332 213.334.948.505 186.391.213.280
(4)=(1)+(2)
Net working capital
140,471,429,428 161,236,095,879 138,656,942,863
(5)=(4)-(3)
NWC/WC (6)=(4)/(3) 1,31 4,09 1,9
 From the Long-term financial balance analysis, we have commented:

+Index Net working capital of SCD company oscillation from 138 bilion to
161 bilion in years 2015-2017.
+Index Net working capital of SCD company always is positive numbers and
increased sharply from 2015 to 2016.
+The reason is because decrease of Long- Term Asset and increase of Long-
Term Liabilities.
+ Long- Term resources enough funding for Long- Term Asset and Partial
balance to sponsor Short-Term Asset.
+ Net working capital has positive value and increased over the year but it
not good because Long- Term Liabilities increased and Long- Term Asset
decreased => - Banks are afraid of lending.
- Pressure from debts.
IV. Short-term financial balance:
Index 2015 2016 2017
Inventories (1) 13,893,741,033 15,526,529,556 25,079,900,316
Short-term account
59,735,704,402 76,642,832,767 58,892,937,520
receivable (2)
Other current assets (3) 937,943,226 346,120,041 1,160,465,802
Short-term liabilities (4) 84,840,061,296 81,280,153,681 53,631,114,876
Net working capital
requirement (10,272,672,635) 11,235,328,683 31,502,188,762
(5) = (1) + (2) + (3) – (4)
Net working capital (6) 140,471,429,428 161,236,095,879 138,656,942,863
Net fund
150,744,102,063 150,000,767,196 107,154,754,101
(7) = (6) – (5)
 From the short-term financial balance analysis, we have commented:

The value of Net fund > 0 : the net working capital meets the capital needs in the
short-term. Company are able to pay debts in the short-term.
But 2017
+ Net fund decreased 43 times compare to 2016.
+ Short-term account receivable decreased and inventories increased 10 times
compare to 2016.
 company has to in danger of borrow money in the short-term to meet the
needs of funding.
Conclusion: Company gradually lose financial balance in the short-term.

B. Financial Structure Analysis: I. Asset Structure Analysis

Uploaded by

Copyright:

Available Formats

B. Financial Structure Analysis: I. Asset Structure Analysis

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

B. Financial Structure Analysis: I. Asset Structure Analysis

Uploaded by

Copyright:

Available Formats

GROUP 2. 42K18.3.

B. FINANCIAL STRUCTURE ANALYSIS:

 From the asset structure analysis, we have commented:

Index 2015 2016 2017

 From the sourece of fund analysis, we have commented:

III. Long-term financial investment:

 From the Long-term financial balance analysis, we have commented:

 From the short-term financial balance analysis, we have commented:

You might also like