VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL *************** LE THAI HUNG FINANCIAL ANALYSIS OF VIETNAM LPG TRADING JOINT STOCK COMPANY MASTER THESIS HA NOI - 2022 VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL *************** LE THAI HUNG FINANCIAL ANALYSIS OF VIETNAM LPG TRADING JOINT STOCK COMPANY PHÂN TÍCH TÀI CHÍNH CÔNG TY CỔ PHẦN KINH DOANH LPG VIỆT NAM Major: Financial Management Code: 8340202.01QTD MASTER THESIS Supervisor: Assoc. Nguyen Thi Minh Hue HA NOI - 2022 COMMITMENT I hereby declare that this is my own research work, with the support of my instructor. The research contents and results in this topic are true and have never been published in any other works. I take responsibility for my research topic.
Author Le Thai Hung i ABSTRACT Thesis Title: Financial analysis of Vietnam LPG Trading joint stock company Pages: 75 University: Vietnam National University Graduate School: International School Date: Jan., 2022 Degree: Master Graduate Student: Le Thai Hung Supervisor: Assoc. Nguyen Thi Minh Hue This study focuses on analyzing the overview of the financial situation of Vietnam LPG trading joint stock company in the period 2018-2020 based on the data announced by the company and checked annually. The study also offers solutions to improve the company's financial position in the period 2021-2025. By applying financial analysis methods such as: comparative method, division method, factor analysis method, comparative relationship method, forecasting method, Dupont method,.
and the collection of primary and secondary data, analysis results have shown the current status of assets and capital of the Company, considered the financial indicators of the company and compared with the group of competitors same sector. Through these tables and data, the thesis also shows some achieved results, limitations and causes The thesis also proposes solutions to improve the financial situation of Vietnam LPG trading joint stock company such as: Company development orientation in the coming time; Manage reasonable expenses and expenses incurred in the company; Reasonable and effective debt recovery; Improve efficiency of capital use and strengthen capital management; Completing the financial analysis of the Company; Completing the organizational process and content analysis of the Company's financial position. ii ACKNOWLEDGMENT During researching and writing this thesis, I have received enthusiastic help from agencies, organizations and individuals. On this occasion, I would like to express my deep gratitude and sincere gratitude to the groups and individuals who have facilitated and helped me during this thesis.
First of all, I would like to thank the Executive Board of the International School and all the teachers who have equipped me with knowledge during my study and research at the university. With the most sincere and profound gratitude, I would like to thank Assoc. Nguyen Thi Minh Hue, who directly guided me throughout the process of researching and completing the thesis. I would like to thank the Leaders and employees at Vietnam LPG Trading joint stock company for spending their time to help me obtain information and synthesize data for analysis during my researching and completing this thesis.
Due to the limited research time and knowledge, it is inevitable that mistakes and omissions can be avoided in the completion of the thesis. I look forward to receiving your comments and feedback. Thank you sincerely! Hanoi,., 2022 Thesis author Le Thai Hung iii TABLE OF CONTENTS CHAPTER 1: GENERAL INTRODUCTION. Research object and research scope.
Research paper overview: .5 THEORETICAL BASIS OF CORPORATE FINANCIAL ANALYSIS. An overview of corporate financial analysis. Concepts and objectives of corporate financial analysis. Meaning of corporate financial analysis.
Objectives of corporate financial analysis. Data in corporate financial analysis. Corporate financial analysis method. Factor analysis method.
Relation and comparison method. Financial analysis content. Overall assessment of the company’s financial situation. Analysis of financial indicators .1 Liquidity ratio - the company’s ability to pay.2 Activity Ratios - measures the level of activity relative to a company’s assets .3 Financial leverage ratios - show how a company’s use of debt affects its operating performance.4 Profitability ratios - represent the ability of assets and equity to generate profits.5 The market value ratio shows how the company is valued by investors.
Factors affecting corporate financial analysis. Factors from inside the business. Factors from outside the business. 22 iv RESEARCH APPROACH AND METHODOLOGY.
Data in the research. Preliminary research and formal research. Data analysis method. 24 CHAPTER 4: RESEARCH RESULTS.
Overview of Vietnam LPG Trading Joint Stock Company. History of formation and development. Main business lines. Organizational structure and financial management apparatus.
In term of the financial management mechanism of the Company. Organization of the accounting apparatus and accounting work. Financial analysis results of Vietnam LPG Trading Joint Stock Company. Analyze the current state of assets and capital of the company.
Analysis of business results of Vietnam LPG Trading Joint Stock Company in the period of 2018 - 2020. General financial situation of the company (as of December 31, 20220):. Analysis of the company’s business performance:. Analysis of debt situation and solvency.
Comparative analysis with companies in the same industry. Compare business results:. Evaluation of the financial situation of Vietnam LPG Trading Joint Stock Company. Some results achieved.
Limited and causes. The cause of the restriction. 49 CHAPTER 5: SOLUTIONS TO IMPROVE THE FINANCIAL SITUATION OF VIETNAM LPG TRADING JOINT STOCK COMPANY. The development direction of the company in the coming time.
Financial plan targets for the period of 2021 – 2025:. Solutions to improve the financial situation of Vietnam LPG Trading Joint Stock Company 56 5. Manage reasonable cost, amount arising in the company. Recover debts in a reasonable and effective manner.
Improve capital efficiency and strengthen capital management. Complete the financial analysis of the company. Improve the organizational process and complete content analysis of the company’s financial position. 62 vi LIST OF FIGURE Figure 4.2 Main business lines PVGAS LPG .3 DIAGRAM OF ORGANISATIONAL STRUCTURE .5 Organization of the accounting apparatus and accounting work .: Accounting form at Vietnam LPG Trading Joint Stock Company.2 : Business results of Vietnam LPG Trading Joint Stock Company in 2018 - 2020 35 Figure 4.1 Compare business results .2 Compare business results .3 Compare business results .4 Compare business results .5 Compare business results .6 Compare business results .4 Dupont financial analysis chart.
58 vii LIST OF TABLE Table 3.1 – Progress of research steps .1: Analysis of company assets and capital for the period of 2018 - 2020 .2: Capital structure of Vietnam LPG Trading Joint Stock Company in 2020.2: Revenue and operating expenses of the company .3: Analysis of the company’s performance in the period of 2018 - 2020 .1 Financial plan targets for the period of 2021 – 2025 (North) .2 Financial plan targets for the period of 2021 – 2025 (Sounth) .3 Financial plan targets for the period of 2021 – 2025 (PVGAS LPG). 55 viii CHAPTER 1: GENERAL INTRODUCTION 1. Research topic: Aside from the quality of the product or service, a company cannot be viable in the long run if it is not financially successful. Effective financial management helps businesses answer the following questions: How is the business doing? Is the business currently making a loss or a profit? How much cash do they have on hand? Is there enough money to meet short-term financial obligations? How to use assets effectively? Compare growth rate and net profit with competitors in the same business? Where does the capital come from?….
Most businesses, whether they’ve been in business for many years or just starting up, have four financial goals: profitability, liquidity, efficiency and stability. Therefore, corporate financial management plays an important role in businesses. VIETNAM LPG TRADING Joint Stock Company (PV GAS LPG) is a member unit of PetroVietnam Gas Joint Stock Corporation (PV GAS). During the construction and development phase, PV GAS LPG has successfully completed the key objectives in implementing the development strategy to 2015 and development orientation to 2025.
Continuously from 2003 to now, the company’s market share has always been maintained and reached 20 - 25%, leading the market share among LPG trading companies nationwide. With the goal of maintaining the position of VIETNAM LPG as the leading gas brand in the country in terms of scale, market, capital, management, human resources and ability to cooperate, integrate and compete in the country, VIETNAM LPG always constantly innovating to provide customers with the best products and services. However, for many years, the LPG market has still experienced fierce competition from key enterprises in order to compete for market share by many different tricks, which are difficult to control and manage, leading to many times unstable gas market. The reality is that large businesses want to increase their scale to ensure efficiency, while small businesses want to lower the conditions for independent existence.
Faced with that situation, the requirement for Vietnam LPG Trading Joint Stock Company is to quickly optimize the company’s production and business activities; perfecting all aspects of the business model, in which the focus is on financial management. From the analysis of financial indicators in production and business activities of the company, the company will find solutions to help improve financial management capacity, support production activities, thereby improving business efficiency of the Company. Recognizing the importance of the problem, the author chooses the topic “Financial analysis of Vietnam LPG Trading Joint Stock Company” as the master’s thesis with the desire 1 to be able to contribute to solving a part of the financial management work at the Company in the near future. Research purposes On the basis of theory and assessment of the company’s financial status in production and business activities, the goal of the research is to help managers and business executives have more information to serve the improvement of financial position of the company.
From the results of financial analysis for Vietnam LPG Trading Joint Stock Company, the research will have specific objectives: - Evaluate the company’s production and business activities in the past period, through the financial analysis of the company. - Provide basic information for financial projections, serving the decisions of the Board of Directors in accordance with the actual situation of the business such as decisions on investment, financing, profit distribution, etc. - Evaluate the achievements and limitations in production and business activities of the company. - Proposing solutions to improve the financial situation of Vietnam LPG Trading company in the coming time.
Research object and research scope Research object: Financial analysis in production and business activities of Vietnam LPG Trading Joint Stock Company. Research scope: Financial analysis of Vietnam LPG Trading Joint Stock Company in the period from 2018 - 2020. Research methodology The method of research in this thesis is divided into two parts: data collection and data processing. Therefore, the methods used in this thesis include: Data collection method: consult, study domestic and foreign textbooks, articles, magazines, papers, data on financial statements and business results over the years of Vietnam LPG Trading Joint Stock Company.
Data processing method: descriptive, statistical, and evaluative analysis methods. The thesis uses statistical and evaluation methods based on secondary data and statistical methods over time to evaluate the financial situation and business performance through the financial statements of Vietnam LPG Trading Joint Stock Company. 2 Comparative analysis method for comparison between LPG Company and a number of gas cylinder production and trading enterprises in the same industry. Research paper overview: Financial analysis provides useful information for those interested in the business performance of an enterprise.
The financial analysis not only reflects the financial position of an enterprise at a point in time, but it also provides information about the business results of the enterprise at a certain time in the period, besides The information from the analysis is also an important basis for information users to make decisions.