PREFACE Vietnam's economy has been recovering strongly in recent years, however as emerging economy, it can be challenging for entrepreneurs to build a profit and sustainable business. Without the preparation and the building capacity with a long- term vision, many businesses will be left struggling to keep up and eventually sold to others institutions to avoid bankruptcy. It poses an urgent need for managers, corporate executives, especially corporate finance managers to understand and have basic knowledge of corporate finance analysis so that they can analyze, have proper evaluation of the economic efficiency of enterprises according to the system of economic and financial indicators. As a result, the business owner knows the financial status of his business, knows the strengths and weaknesses to make timely and accurate decisions.
For other stakeholders interested in the business such as current shareholders, employees, the state, financial analysts through financial information will make decisions for different purposes. Recognizing this, I decided to choose the subject: “The financial statement analysis of Saigon Alcohol Beer and Beverage Corporation” with the aim of providing the most objective, unbiased information about the company SABECO. The content of this report is mainly focus on analyzing performance using various but traditional methods to have a broader look about Saigon Alcohol Beer and Beverages Corporation over years, combine with the fluctuation of macroeconomic and industry to come up with conclusions about the health of the company. I have tried to be extremely meticulous in preparing this report despite the various limitations faced as very limited information about surgical industry.
LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 1, Objectives and Aims of The Study Objectives of the study The study focus on financial analysis and find solutions to improve financial performance in Saigon Alcohol Beer and Beverages Corporation. Aims of the study The study aims at investigating the data analysis in financial statement for SABECO. Three main purposes of the study are summarized below: - To systematize basic theories of analysis of corporate financial statements. From there, you can see the methods and contents of financial analysis in the enterprise.
- To analyze and evaluating the financial situation and business performance through financial reports of Saigon Alcohol Beer and Beverages Corporation in comparison with some companies in the same industry. - To identifying the strengths and weaknesses of the financial situation of the company and propose some solutions to improve the financial capacity of Saigon Alcohol Beer and Beverages Corporation. 2, Methods of The Study To finish this study, the reseacher carried out some following methods: - Rationale: Research topics are based on the government's circulars, enterprise financial reports and reliable textbooks, books and websites related to the analysis of financial reports of enterprises. - Approach: The topic uses qualitative research methods by collecting information from financial reports, analyzing and evaluating financial 1 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com indicators to improve financial capacity of Saigon Alcohol Beer and Beverages Corporation.
- Data source sand methods of data collection: + Data on the theoretical basis of analyzing corporate financial reports from the curriculum, lecture, prestige books. + Information from the website of Saigon Alcohol Beer and Beverages Corporation include: Financial statement, annual report of 2016, 2017, 2018, history of formation and development of the company, development orientation. The financial system of 2016, 2017, 2018 is taken from websites of three companies in the same industry: Vietnam Dairy Products Joint Stock Company, Masan Group Corporation, Hanoi Beer Alcohol and Beverage Joint Stock Corporation. These three companies are one of the most reputable brands of Vietnam operating in the field of foods and drinks products, with the source structure equivalent.
In order to facilitate the comparison, the writer have taken the symbol of each company's code as the sign to make the tables and forms and use it to analyze: VNM: Vietnam Dairy Products Joint Stock Company MSN: Masan Group Corporation BHN: Hanoi Beer Alcohol and Beverage Joint Stock Corporation 2 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Sabeco's Industry Peers 250,000 45 40 200,000 35 30 Millions VND 150,000 25 20 100,000 15 50,000 10 5 0 0 SAB VNM MSN BHN Market Capital 173,146 222,898 98,868 22,948 P/E 41.2 – Sabeco’s Industry Peers; Source: Vietstock 3, Design of The Study The study consists of three chapters: - Chapter 1: Literature review: The basic theoretical issues in analyzing financial statements of corporations. - Chapter 2: The study: including three parts: Give an overview about Saigon Alcohol Beer and Beverage Corporation Data analysis Main findings through the analysis done - Chapter 3: Challenge opportunities and solutions: Offer recommendations and a limitation of the study and suggestions for further study. This chapter discuss about the study results and solutions to improve the financial capacity of Saigon Alcohol Beer and Beverage Corporation. 3 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER 1: LITTERATURE REVIEW 1.1, An Overview of Financial Statements 1.1 The definition of Financial Statements Accounting and financial statements are general statements made on the basis of accounting methods that aggregate data from accounting records based on financial indicators that arise at certain times or periods.
Financial and accounting reports systematically reflect the situation of assets, liabilities, and capital use and business results of enterprises in certain periods, and they are explained. It helps the users to use financial information to identify the financial status and business situation of the unit to make appropriate decisions. Financial statements (or financial report) is a formal record of the financial activities and position of a business, person, or other entity. Relevant financial information is presented in a structured manner and in a form easy to understand.
They typically include basic financial statements, accompanied by a management discussion and analysis: A balance sheet or statement of financial position, reports on a company's assets, liabilities, and owner’s equity at a given point in time. An income statement or statement of comprehensive income, statement of revenue & expense, P&L or profit and loss report, reports on a company's income, expenses, and profits over a period of time. A profit and loss statement provides information on the operation of the enterprise. These include sales and the various expenses incurred during the stated period.
A cash flow statement reports on a company's cash flow activities, particularly its operating, investing and financing activities. 4 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com A Statement of changes in equity or equity statement or statement of retained earnings, reports on the changes in equity of the company during the stated period. For large corporations, these statements may be complex and may include an extensive set of footnotes to the financial statements and management discussion and analysis. The notes typically describe each item on the balance sheet, income statement and cash flow statement in further detail.
Notes to financial statements are considered an integral part of the financial statements.2 Types of Financial Statements The principal financial statements of a corporation are the balance sheet, income statement, and statement of cash flows. Notes accompany these financial statements. To evaluate the financial condition, the profitability, and cash flows of an entity, the user needs to understand the statements and related notes. The most basic statement is the balance sheet; the other statements explain the changes between two balance sheet dates.
In addition, in order to meet the requirements of economic and financial management, the steering requirements that sectors, companies, production groups, joint ventures and joint ventures can stipulate other financial accounting reports. However, within the scope of the research, it will be mentioned the basic reports as described above. Balance sheet The balance sheet provides an overview of assets, liabilities and stockholders' equity as a snapshot in time. The date at the top of the balance sheet tells you when the snapshot was taken, which is generally the end of the 5 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com fiscal year.
The balance sheet equation is assets equal liabilities plus stockholders' equity, because assets are paid for with either liabilities, such as debt, or stockholders' equity, such as retained earnings and additional paid-in capital. Assets are listed on the balance sheet in order of liquidity. Liabilities are listed in the order in which they will be paid. Short-term or current liabilities are expected to be paid within the year, while long- term or noncurrent liabilities are debts expected to be paid after one year.
The statement of financial position shall include line items that present the following amounts: 1. Property, plant and equipment; 2. Investments accounted for using the equity method; 6. Biological assets within the scope of IAS 41 Agriculture; 7.
Trade and other receivables; 9. Cash and cash equivalents; 10.The total of assets classified as held for sale and assets included in disposal groups classified as held for sale in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations; 11. Trade and other payables; 12. Financial liabilities 6 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.
Liabilities and assets for current tax, as defined in IAS 12 Income Taxes; 15. Deferred tax liabilities and deferred tax assets, as defined in IAS 12; 16. Liabilities included in disposal groups classified as held for sale in accordance with IFRS 5; 17. Non-controlling interests, presented within equity; and 18.
Issued capital and reserves attributable to owners of the parent. An entity shall present additional line items, headings and subtotals in the statement of financial position when such presentation is relevant to an understanding of the entity’s financial position. Income Statement Income statements show the profitability of a business. The income statement is for a period of one year and shows the total sales revenue for the year.
Subtracted from sales revenue is the cost of goods sold or the expenses a company incurs in producing finished goods to sell. Also deducted from the revenue are expenses for operating costs and depreciation. If a company is publicly owned, its income statement must also report earnings per share. Earnings per share is a measure of company profitability.
It is calculated by dividing net income by the total shares of stock. When looking at the income statement of a company, the profitability isn't just the gross profit, it is also important to look at the ratio of expenses as a percentage of profit. If a company has high profits but also has high expenses, the company could be mismanaged. In addition to items required by other IFRSs, the profit or loss section or the statement of profit or loss shall include line items that present the following amounts for the period: 7 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.
Revenue, presenting separately interest revenue calculated using the effective interest method; 2. Gains and losses arising from the derecognition of financial assets measured at amortised cost; 3. Determined in accordance with Section 5. Share of the profit or loss of associates and joint ventures accounted for using the equity method; 7.
If a financial asset is reclassified out of the amortised cost measurement category so that it is measured at fair value through profit or loss, any gain or loss arising from a difference between IAS 1 IFRS Foundation A785 the previous amortised cost of the financial asset and its fair value at the reclassification date (as defined in IFRS 9); 8. If a financial asset is reclassified out of the fair value through other comprehensive income measurement category so that it is measured at fair value through profit or loss, any cumulative gain or loss previously recognised in other comprehensive income that is reclassified to profit or loss; 9. A single amount for the total of discontinued operations (see IFRS 5). Statement of cash flows The cash flow statement merges the balance sheet and the income statement.
Due to accounting convention, net income can fall out of alignment with cash flow.