Inventory turnover and days of inventory on hand :

Keep increased from 2011-2014, but Vingroup's inventory turnover has

sharply decreased since 2014. a probable explanation of the sharp decline
experienced by the Vingroup can be associated with the state of the economy at the
time. the economy was experiencing recession. The market of real estate was
frozen, a lot of compay were in bottom line. They were unable to convert inventory
into sale, resulting in a longer inventory turnover period and the large decline. Also
the costs associated with holding inventory will have increased the cost of goods
sold.The economy has begun to pick up this year.
Days of inventory on hand= number of days / inventory turnover
2015, CTD has the inventory turnover bigger than VIC.But in the real estate
market, can not say anything about the inventory, just show CTD sell quickly and
inventory backlog is not too much.
Receivables turnover and days of sale outstanding :
Accounts receivable turnover has been fairly consistent with respect to how
the industry has been performing. From 2011 2014, apple increased in improving
their A/R turover. And in 2014 2015, they had the largest decreased.Lots of
company were in the same circumstances in that year.
Days of sale outstanding = number of days/ receivables turnover
CTD has receivables turnover ratio smaller, maybe cause of principle of each
company for receivables account. Debt recovery speed of CTD is slower.
Payables turover and days of payables :
Decreased a little bit in 2012 and start growing up next 2 years. the state of
the economy at the time made most company faced with problem. So there is no
need for concern about this ratio.
Days of payables = number of days/ Payables turover
Payables turnover of VIC and CTD is maybe the same, not too much
different.
Leverage :
Example Vingroup has $5 billion in assets and $1 billion in equity. This
would mean that it is financing its assets with $ 4 billion liabilities. And the the
company's financial leverage ratio would be 5.
Leverage ratio is a measure of how much assets a company holds relative to
its equity.More higher, more risker.
Vingroup has total assets more large than equity. This ratio is bigger than
CTD. The level of leverage depends on a lot of factors such as availability of

collateral, strength of operating cash flow and tax treatments.But can not say VIC
face more risk cause VIC is the bigger company and the top of this major.