MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT VIETNAM NATIONAL UNIVERSITY OF AGRICULTURE LE TRAN LINH TRANG FINANCIAL ANALYSIS AT VIET LAM CONSTRUCTION AND CONCRETE JOINT STOCK COMPANY UNDERGRADUATE THESIS Hanoi– 2022 MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT VIETNAM NATIONAL UNIVERSITY OF AGRICULTURE UNDERGRADUATE THESIS FINANCIAL ANALYSIS AT VIET LAM CONSTRUCTION AND CONCRETE JOINT STOCK COMPANY Name : Le Tran Linh Trang Major : Advance financial economic Class : K63KTTCE School year : 2018-2022 The Supervisors : MSc. Vu Thi Thu Huong MSc. Dang Nam Phuong Hanoi– 2022 DECLARATION OF AUTHORSHIP I hereby declare that the research topic in the thesis titled "FINANCIAL ANALYSIS AT VIET LAM CONSTRUCTION AND CONCRETE JOINT STOCK COMPANY" is my own research work based entirely on documents, information, and data that I have researched and learned from many sources. different sources and also in practice.
Therefore, the research results are guaranteed to be the most honest and objective. In addition, I also certify that these results have not been found in any previous study i ACKNOWLEDGEMENT First of all, I would like to thank the leadership of the Vietnam National University of Agriculture for your dedication to teaching and supporting students, especially those in the Faculty of Economics and Rural Development. During the past few years, this has helped me gain valuable and useful knowledge, as well as provided career opportunities and good development for myself. During the internship, I was reinforced with the knowledge that I had and had not learned at the university, as well as valuable experience from the company's Board of Directors and colleagues.
I would like to thank Viet Lam Construction and Concrete Joint Stock Company for allowing me to learn and practice myself through practical experience. Although I still have many shortcomings in knowledge and practical experience, the company and the center still support me wholeheartedly, helping me to complete my work well. During the internship, the company created the best conditions for me, and I completed my undergraduate thesis. I would like to express my sincere thanks to the supervisor Vu Thi Thu Huong and supervisor Dang Nam Phuong, for supporting, helping, commenting, and editing during the completion of the undergraduate thesis.
Sincerely, thanks! ii ABSTRACT The objective of the study is to assess the financial situation of Viet Lam Construction and Concrete Joint Stock Company, along with studying the theoretical and practical basis of corporate finance and corporate financial analysis; research and survey the current situation of financial analysis at Viet Lam Construction and Concrete Joint Stock Company; recognizing, evaluating and offering some reasonable solutions to improve financial analysis at Viet Lam Construction and Concrete Joint Stock Company. The mission of study are Presenting the methods applied to systematize the theoretical basis of financial analysis at Viet Lam Construction and Concrete Joint Stock Company; presenting methods and contents on corporate finance and corporate financial analysis; stating the groups of financial evaluation criteria and factors affecting financial analysis at enterprises; Presenting financial analysis at Viet Lam Construction and Concrete Joint Stock Company; outlining the limitations and causes that make financial analysis at Viet Lam Construction and Concrete Joint Stock Company incomplete to serve as a basis for providing solutions and recommendations; Completing the method and content of financial analysis at Viet Lam Construction and Concrete Joint Stock Company, completing the Regulation on financial analysis; completing the financial analysis process,. New contributions to the thesis: Systematize the theoretical and practical basis of financial analysis in enterprises; Assess the financial situation of Viet Lam Construction and Concrete Joint Stock Company; analysis of factors affecting the financial situation of Viet Lam Construction and Concrete Joint Stock Company; Proposing some solutions to improve the financial management of Viet Lam Construction and Concrete Joint Stock Company, helping the results have an effective effect on management activities in i particular and business activities in general, creating conditions for the company's production and business activities to be more and more effective. ii CONTENTS DECLARATION OF AUTHORSHIP.
ii CONTENTS iii LIST OF TABLE vi LIST OF DIAGRAM vii LIST OF CHART viii PART I: INTRODUCTION 1 1. Research objects and scopes 4 1.2 Research scope 4 PART II: THEORETICAL AND PRACTICAL BASIS OF CORPORATE FINANCE AND CORPORATE FINANCE ANALYSIS 5 2.1 Theoretical basis of corporate finance and financial analysis 5 2.1 Some concept related to the topic 5 2. The purpose of financial analysis 6 2. The role of financial analysis 6 2.
Some general issues of corporate finance analysis 8 2. Content of corporate finance analysis 12 2. Factors affecting corporate finance analysis 15 2.2 Practical basis of corporate finance analysis 17 2.1 Experience from enterprises in Vietnam 17 iii 2.2 Lessons learned for Viet Lam Construction and Concrete Joint Stock Company 20 2.3 Relevant studies 20 PART III: GEOGRAPHICAL CHARACTERISTICS OF THE STUDY SITE AND RESEARCH METHODS 21 3.1 Overview about Viet Lam Construction and Concrete Joint Stock Company 21 3.2 Features of the company's organizational structure 23 3. Labor situation of Viet Lam Construction and Concrete Joint Stock Company 25 3.1 Methods of choosing a research site.2 Data collection method 28 3.3 Data processing methods 29 3.4 Data analysis methods 30 3.5 Systematic analysis of financial indicators 31 PART IV: RESULTS AND DISCUSSION 33 4.1 Current situation of the corporate finance of Viet Lam Construction and Concrete Joint Stock Company 33 4.
Analysis businessresult of Viet Lam Construction and Concrete Joint Stock Company in the period of 2019-2021 33 4. Financial structure analysis 39 4. Cash flow statement analysis 60 4. Indicators for assessing cash flow analysis 63 4.
Assessment of the company's financial situation 66 4. Factors affecting corporate financial analysis at Viet Lam Construction and Concrete Joint Stock Company 67 iv 4. Complete solution for financial analysis at Viet Lam Construction and Concrete Joint Stock Company 69 PART V: CONCLUSIONS AND RECOMMENDATIONS 73 5. Recommendation 74 REFERENCES 75 v LIST OF TABLE Table 2.1: Business performance of Alphanma JSC.2: Business performance of Thang Long Concrete Ready Found Joint Stock Company.2: Primary data collection .1: Analysis businessresult of Viet Lam Construction and Concrete Joint Stock Company in the period of 2019-2021.2: Analysis asset structure and volatility of Viet Lam Construction and Concrete Joint Stock Company (2019-2021) .3: Structure and volatility of resources analysis of Viet Lam Construction and Concrete Joint Stock Company (2019-2020) .4: Analysis of current liabilities solvency of Viet Lam Construction and Concrete Joint Stock Company .5: Total asset turnover .6: Current assets turnover .7: Non-current assets turnover .8: Analyze debt management capabilities of Viet Lam Construction and Concrete Joint Stock Company (2019-2021) .9: Profitability analysis of Viet Lam Construction and Concrete Joint Stock Company (2019-2021).10: Analysis of the cash flow statement of Viet Lam Construction and Concrete Joint Stock Company of period 2019-2021 .11: Cash flow analysis of Viet Lam Construction and Concrete Joint Stock Company (2019-2021).
65 vi LIST OF DIAGRAM Diagram 2.1: Corporate finance analysis process .2: The content of corporate finance analysis. Factors affecting corporate finance analysis .1: Diagram of the company's management apparatus. 23 vii LIST OF CHART Chart 2.1: Revenue of Viet Nam Dairy Products Joint Stock Company .1: Asset structure of Viet Lam Construction and Concrete Joint Stock Company .2: Resources structure of Viet Lam Construction and Concrete Joint Stock Company (2019-2021). 45 viii PART I: INTRODUCTION 1.
Vietnam is a successful development story. In a short time, economic reforms since 1986, combined with favorable global trends, have rapidly transformed Vietnam from one of the poorest countries in the world to a low- middle-income country in a short period. According to the General Statistics Office, the Gross Domestic Product (GDP) in the first quarter of 2022 is estimated to increase by 5.03% over the same period last year, higher than the growth rate of 4.72% in the first quarter of 2021 and March 3.66% in the first quarter of 2020, but still lower than the growth rate of 6.85% in the first quarter of 2019. Thanks to a solid foundation, Vietnam's economy has shown outstanding resilience in times of crisis, most recently the COVID-19 pandemic.
However, our economy in the first three months of 2022 has achieved many positive results. Most industries and fields tend to recover and grow again (General Statistics Office, 2022). Besides the positives of the domestic economy, integration into the global economy is becoming increasingly important, providing chances for our businesses to have more opportunities to develop and expand their business scale. However, any business operating in any business field will face challenges, particularly in an industry that is important to the economy, such as construction.
Specifically, according to the socio-economic situation report of the General Statistics Office, the production and business activities of construction enterprises in the first quarter of 2022 are considered more difficult than in the fourth quarter of 2021.4% of enterprises thought that the production and business situation in the first quarter of 2022 was more difficult than in the fourth quarter of 2021.7% of enterprises said that the production and business situation remained stable.9% of enterprises considered the production and business situation more favorable. The reason for this is that the cost of construction materials, particularly steel, 1 has continued to rise, making it difficult for construction companies to complete signed works and projects. Although the COVID-19 epidemic has been gradually controlled, it still causes a short-term labor shortage. Besides, businesses still lack the capital to be able to fully restore production and business activities (General Statistics Office, 2022).
The financial position of an enterprise reflects the business health of that enterprise, determines the attraction of investment capital, or creates confidence in customers as well as suppliers. Financial analysis helps managers make better decisions about investments and the distribution of profits. In addition, this job is also the basis for controlling business activities and management in the enterprise, providing the basis for future financial estimates and helping businesses achieve the goal of maximizing profits. and ensure the ability to pay debts.
Financial analysis indicators are the most visible and effective means of expressing the current state of an economic entity. Therefore, financial analysis situation through the financial reporting system has an important meaning, helping the information users to objectively evaluate the financial strength, profitability, and profitability. This is a long-term strategic project to assist businesses in developing sustainably and steadily. Established in 2016, Viet Lam Construction and Concrete Joint Stock Company has faced many difficulties since its inception, but according to its perseverance, the company has gradually innovated, expanded the scale and area of operation, and applied modern technology in the production process.
Viet Lam Construction and Concrete Joint Stock Company have had a position in the market, creating trust in customers as well as suppliers with high product quality and a professional working style, significantly contributing to the development of Phu Tho province more and more. However, in the period of integration and development, the company also encountered many difficulties and challenges from competitors. As an enterprise in the field of construction, Vietnam Lam Construction and Concrete Joint Stock Company is trying to 2 improve more and more to meet the development needs of society. The market requires companies to understand their financial situation and to come up with improvement measures as the right competitive strategies.
Unfortunately, the company has not yet conducted a financial analysis or made decisions to improve immature issues or promote positive aspects for the company's sustainable development. Realizing the importance of financial analysis in the company's business, combined with the knowledge gained and the provided data, I have chosen the research topic: "FINANCIAL ANALYSIS AT VIET LAM CONSTRUCTION AND CONCRETE JOINT STOCK COMPANY.1 General objective Based on assessing the financial situation of Viet Lam Construction and Concrete Joint Stock Company in the past, we propose solutions to improve the financial management of Viet Lam Construction and Concrete Joint Stock Company in the coming period.