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    TCDN

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    Diep Nguyen
    This document analyzes the financial statements of Vinamilk, the largest dairy company in Vietnam, from 2018-2021. Some key points: - Vinamilk has a dominant market share in Vietnam for milk and dairy products. Its assets are made up largely of short-term assets like cash and inventory, as well as long-term fixed assets like factories and equipment. - From 2018-2021, Vinamilk's net sales, earnings before tax, and earnings before interest and tax all increased gradually each year, though the increases were small. Revenue growth was impacted by COVID-19 in 2020-2021. - Vinamilk's financial ratios like the current, quick, cash, debt, and

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    TCDN

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    Diep Nguyen
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    This document analyzes the financial statements of Vinamilk, the largest dairy company in Vietnam, from 2018-2021. Some key points: - Vinamilk has a dominant market share in Vietnam for milk and dairy products. Its assets are made up largely of short-term assets like cash and inventory, as well as long-term fixed assets like factories and equipment. - From 2018-2021, Vinamilk's net sales, earnings before tax, and earnings before interest and tax all increased gradually each year, though the increases were small. Revenue growth was impacted by COVID-19 in 2020-2021. - Vinamilk's financial ratios like the current, quick, cash, debt, and

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    This document analyzes the financial statements of Vinamilk, the largest dairy company in Vietnam, from 2018-2021. Some key points: - Vinamilk has a dominant market share in Vietnam for milk and dairy products. Its assets are made up largely of short-term assets like cash and inventory, as well as long-term fixed assets like factories and equipment. - From 2018-2021, Vinamilk's net sales, earnings before tax, and earnings before interest and tax all increased gradually each year, though the increases were small. Revenue growth was impacted by COVID-19 in 2020-2021. - Vinamilk's financial ratios like the current, quick, cash, debt, and

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    46 views6 pages

    TCDN

    Uploaded by

    Diep Nguyen
    This document analyzes the financial statements of Vinamilk, the largest dairy company in Vietnam, from 2018-2021. Some key points: - Vinamilk has a dominant market share in Vietnam for milk and dairy products. Its assets are made up largely of short-term assets like cash and inventory, as well as long-term fixed assets like factories and equipment. - From 2018-2021, Vinamilk's net sales, earnings before tax, and earnings before interest and tax all increased gradually each year, though the increases were small. Revenue growth was impacted by COVID-19 in 2020-2021. - Vinamilk's financial ratios like the current, quick, cash, debt, and

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    of 6

    Name: Nguyen Thi Ngoc Diep

    Class: CQ57/51.06
    Number: 06

    CORPORATE FINANCE
    Financial Statement Analysis

    Overall analysis of balance sheet


    - Vinamilk is the largest dairy company in Vietnam with a market share of
    37%, it accounts for 45% of the market for liquid milk, 85% of the market
    for condensed milk and yogurt, so Vinamilk has the ability to set the selling
    price in the market.
    - Asset classes:
    + Short-term assets: Cash and cash equivalents, Short-term financial
    investment, Short-term reveivables, Inventory, Other current assets
    + Long-term asset: Long-term receivables, Fixed assets, Investment properties,
    Long-term assets in progress, Other long-term assét
    - It is easy to see that short-term assets account for the largest proportion of
    total assets of the enterprise
    Fixed assets declare the status of long-term assets that make up the main
    production capacity of the enterprise such as factories, machinery, equipment,
    production lines. Therefore, for a manufacturing enterprise, this is a very
    important factor and creates the production strength of the business. Therefore,
    the composition of fixed assets accounts for a high proportion of long-term
    assets, but also accounts for:
    + more than 35% of the total assets of the whole enterprise in 2018; 45% in
    2019; 39% in 2020; 32% in 2021
    - Evaluation of the growth rate of short-term receivables: the following year's
    growth is steady compared to previous years. In which, there are short-term
    trade receivables  the credit level of the business is high
     Reasonable, flexible trade policy and high reputation of the business in
    commercial activities with partners
    - Evaluation of the growth rate of long-term receivables: sudden decrease
    from 2018-2021 (from VND 88 billion to VND 16.7 billion)
     Volatile situation in capital structure
    - In 2020:
    + Debt ratio (30.5%) decreased, reducing debt leverage ratio compared to
    2019 (33.5%)

    + Besides, the company's profitability decreased from 59.45% to 57.13%.


    Return on sales increased to 18.84% indicating that the company has a lower
    expense growth rate than revenue growth rate.
    + Self-financing ratio in 2020 (69.5%) is higher than in 2019 (66.5%)
    + Return on total assets decreased from 23.61% to 23.2%.
    + Return on equity decreased from 35.5% to 33.4%  management and
    equity use efficiency are reduced
    + Vinamilk sells slowly, a lot of inventory are in stock
    - In 2019 Vinamilk was evaluated as a reputable export enterprise of Vietnam
    with international business orientation, sustainability and long-term. It can
    be said that in addition to the huge numbers that Vinamilk has been
    accumulating, they have acquired extremely valuable assets for their
    business.
    - Evaluation of Vinamilk's debt growth in 2021: increase  liabilities
    increase  the level of leverage of the business will be higher
    Table: Net sales and profit period 2018-2021
    Unit: billion VND

    Net sales and profit period 2018-


    2021
    70
    60
    50
    40
    30
    20
    10
    0
    2018 2019 2020 2021

    Net sales EBT EBIT

    From this table, we can see that net sales, EBT, EBIT increased gradually over the
    years, but the amount of change is not much. In 2021, due to the impact of the
    Covid pandemic and natural disasters, purchasing power decreased, besides, the
    competition of businesses also greatly affected the Vietnam market.
    Overall analysis of the Statement of income
    - In 2019, Vinamilk’s net sales reached VND 56318 billion, up 1.07%
    compared to 2018; up 1.06% in 2020 compared to 2019; up 1.02% in 2021
    compared to 2020
     Comment: This growth rate stems from Vinamilk's consolidation of business
    results of GTNFoods and Moc Chau Milk joint stock companies from the first
    quarter of 2020. At the same time, the order to lift social isolation also has a
    positive impact on business situation. On the export side, although still affected by
    the Covid-19 epidemic, Vinamilk is always actively looking for opportunities to
    approach potential markets. The results recorded during this period, Vinamilk
    exported milk to the Middle East with a contract worth about 20 million USD, in
    addition, it also exported condensed milk to China, nut milk and milk tea to the
    Korean market contributed quite a lot to Vinamilk's net sales.
    Consolidated gross profit margin in the second quarter of 2020 reached about
    46.1%, down 61 basis points compared to the first quarter of 2020. This is because
    the cost of imported materials used in the second quarter of 2020 is higher than the
    first quarter of 2020.

      2018-2019 2019-2020 2020-2021


    5,34170553 4,70021845
    the inventory turnover 4,672570195 2 1
    11,1787307 11,8373616
    receivables turnover 10,43315822 3 3

    Overview of the statement of cash flow


    - The financial balance of the business is quite stable and safe
    - Vinamilk's dairy business is the main source of income
    - Compared to the company's profit data, it shows that the ratio of profit to
    invested capital is quite high, so the company's financial health is good.
    Analyze the relationship between financial statements
    - In 2020, net sales decreased by nearly 5% and inventory increased by 14%.
    Due to the epidemic situation, it is difficult to export and sell goods at first
    - Revenue decreased, so receivables also decreased
    - Both business activities and profits increased, showing that the business is
    quite efficient
    - Total assets increase over the years, showing that the business is expanding
    its operation scale. But the decrease in revenue is the result of investing in
    redundant assets or not exploiting the full capacity of machinery and
    equipment, the area of warehouses and factories.
    - The level of stock price stability and shareholder stability is great over the
    years
    - Rate of share ownership of foreign investors in investment funds
    + Currently, the enterprise does not limit the ownership rate for foreign
    investors or raise the ownership level of foreign investors to 100%, just need
    the Board of Directors to issue a resolution without the need for a General
    Meeting of Shareholders.
    + In the second phase of 2019, Vinamilk plans to pay dividends to existing
    shareholders at the rate of 10%, from each share will receive 1,000 VND
    with the number of outstanding shares is 1.74 billion shares, equivalent to
    1.74 billion VND.
      2018 2019 2020 2021
    current ratio 1.9324 1.7117 2.0873 2.1156
    quick ratio 1.4130 1.3667 1.7422 1.7188
    0.9583579 1.366735 1.36944
    cash ratio 1 1.0455649 1 7
    debt ratio 0.2969 0.3349 0.3053 0.3278
    equity ratio 0.7031 0.6651 0.6947 0.6722
    0.2969198 0.3348693 0.305277 0.32779
    debt to equity ratio 5 6 7 9
    3.9327017 3.7813791 4.304685 4.79429
    fixed assests turnover 9 7 5 4

    - Current ratio ≈ 2
    - Quick ratio ≈ 1
    - Cash ratio > 1
    - Debt ratio < 1  Vinamilk has more assets than liabilities
    - Equity ratio < 1
    - Debt equity ratio < 1  Assets of the business are financed mainly by equity 
    business has less difficulty in finance
    - Fixed assets turn over ≈ 4
     Vinamilk's ratios are always at a safe point  The enterprise has the ability to
    fulfill its debt repayment obligations when due, its business activities are quite
    stable and it is competitive in the market.

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