CONTENT

A. OVERVIEW ................................................................................................................... 2
I. Summary: ...................................................................................................................... 2
II. Overview of Binh Minh Plastic Joint Stock Enterprises ............................................. 3
1. Introduce Binh Minh plastic joint stock enterprises ................................................. 3
2. Industry characteristics ............................................................................................. 3
B. ANALYZE THE FANANCIAL STATEMENTS .......................................................... 3
I. The financial structure analysis: ................................................................................... 3
1. Asset structure analysis: ........................................................................................... 3
2. Resource structure analysis ...................................................................................... 4
3. Financial balance analysis ........................................................................................ 5
II. Operating efficiency and profitability analysis ........................................................... 6
1. Operating efficiency analysis ................................................................................. 6
2. Profitability analysis: ................................................................................................ 7
III. Risk analysis: ............................................................................................................. 8
1. Short-term liquidity: ................................................................................................. 8
2. Long-term solvency: .............................................................................................. 9
3. Bankruptcy risk and Systematic risk.................................................................... 10
Compare your financial indicators with other industry indices ........................... 11
IV. Business valuation ................................................................................................... 11
C.CONCLUTION: ............................................................................................................ 12
D. TABLES ....................................................................................................................... 15
Table 1: Financial structure ............................................................................................ 15
Table 2: Operating efficiency......................................................................................... 18
Table 3: Profitability analysis ........................................................................................ 20
Table 4:Short-term Liquidity ......................................................................................... 21
Table 5:Long-term solvency .......................................................................................... 22
Table 6: Bankrupcy risk and Systematic risk................................................................. 23
E. Summary enterprise’s financial statements in the last 3 year ....................................... 25

1
 A. OVERVIEW
I. Summary:
 Objectives:
- Building business strategy
- Administration
+ Decision on investment, financing and distribution of profits
+ Financial SWOT
+ Financial planning
+ Business valuation
- Buy, sell and rent companies
- Merging, business cooperation
- Securities investment
 Data source:
- Financial statements: digitize (quantify) activities business activities of each unit
including Balance sheet, Income statement, Statement of cash flows
- Other sources:
+ Industry and business environment: industry growth, industry cycle, ….
+ Development strategy of the unit
 Analytical method:
- Horizontal analysis: Year-To-Year Approach
- Index-number analysis:
+ Index-number trend analysis
+ Ratio analysis
- Benchmarks: The firm’s historical ratios; Data extracted from financial markets
 Basic results from analysis:
- Indicating the current position and trend of the business
- Evaluation of the enterprises’s prospects
- Estimating risks
 Recommendations: Whether to invest in this enterprises in the long-term or not?

2
 II. Overview of Binh Minh Plastic Joint Stock Enterprises
1. Introduce Binh Minh plastic joint stock enterprises
- Enterprises Name: Binh Minh Plastic Joint Stock Enterprises. Stock code: BMP
- Head office address: No. 240 Hau Giang, Ward 9, District 6, Ho Chi Minh city.
- Stock code: BMP.
- Industry: construction and construction materials, ICB 2350
- Main fields of operation and production: Production and trading of industrial and civil
plastic products, including pipes and fittings for PVC plastic used in the water industry.
- Business strategy and plan
+ Strengthening the southern market and gradually developing the northern market.
+ Expanding production and business activities in the field of construction and office
leasing to maximize the potential of real estate that the enterprises is managing.
Business plan for 2019: Revenue reached VND 4075 billion (up 4%), Profit before tax
was VND 540 billion (up 2%).

2. Industry characteristics
- As a capital intensive economy, its assets are high capital assets and fixed costs of the
industry are quite high.
- Being sensitive to the business cycle of the macro economy.
- There is a clear correlation with the real estate industry.

B. ANALYZE THE FANANCIAL STATEMENTS

I. The financial structure analysis:
1. Asset structure analysis:
Overview, total assets of the enterprises decreased by 1.81% in this period.
 Size:
- Short-term financial investments decreased. Typically, this item dropped significantly
by 250,000,000,000 VND from 2017 to 2018 because In 2018 the enterprises less invested
held to maturity than does in other years.
- Short-term receivables declined by 300,777,307,893 VND from 2016 to 2017. The
reason is that Short-term Trade receivables, Advances to suppliers and other receivables
decreased. But there are a slight increased in this item between 2017 and 2018. This
proves that the enterprises's debt management is quite good.
3
- Inventory: the inventory fell by 86,860,150,718 VND from 2016 to 2017 because the
number of raw materials, goods and finished products went down. This is evidence that the
enterprises's inventory management is good. In contrast, this item went up in 2018. The
increase in these inventories is an unfavorable factor for the enterprises because a large
inventory of inventories can make enterprises to incur management, preservation and
warehousing expenses.
- Fixed assets: In 2016, fixed asset of enterprises was 593,845,512,224 VND, but this
number jumped to 934,706,927,841 VND in 2017. The main reason is tangible fixed assets
nearly doubled. This figure show that the enterprises expanded its production and business
by investing in fixed assets.
- Long-term financial investment increased slightly by 1,265,620,121 VND from 2016 to
2018. There was 2 reasons lead to this fluctuation. Firstly, the enterprises increased its
investment in the Enterprises in 2017. Secondly, the enterprises didn’t investment in equity
of Long Hau Joint Stock. On the other hand, this change is smaller than the change that the
enterprises invest in Binh Minh Viet JSC.

- Other Long-term assets: Other Long-term assets rose markedly by 56,436,559,329 VND
mainly due to Long-term tools, supplies and spare parts increased from 2016 to 2018.
 Structure:

Short-term account receivable, Fixed assets, Short–term financial investment,

inventories which were types of assets accounted for large proportion. In the detail:
 The proportion of short-term account receivable in 2016 was highest (28.03%) than
other items in total asset and this item was also highest in this period. This proves that the
enterprises was appropriated capital and the enterprises had not managed more closely in
credit sale policy. In contrast, in 2017, the enterprises improved this policy significantly.
 The proportion of fixed asset was also higher than other types of assets (20.54%). This
proportion reach to 32.54% in 2017 and reach to 30.48 % in 2018 because the enterprises
promoted investment in machines and equipment more and more in order to improve the
productivity and quality of the enterprises' s production.

2. Resource structure analysis

• Financial Autonomy

4
 - Debt ratio gradually decreases over the years, from 20.54% in 2016 to 12.75% in
2018. Meanwhile, Equity ratio increase, reach 87.25% in 2018→ Enterprises mainly
mobilize capital from equity.
- Dept / Equity ratio is low and gradually decreases, as debt decreases and equity
increases.
=> Enterprises have high autonomy in terms of capital use, mainly mobilizing capital from
owners. However, this large difference is not entirely beneficial, since the enterprises
cannot determine the optimal capital structure of the enterprise. Makes businesses use
inefficient capital and pressures on owners.

• Funding stability
- Short-term resources ratio decreases, from 2016 it is 20.53% to 12.75% in 2018.
The less enterprises use capital from short-term debt.
- Long-term resources ratio increases, from 79.47% in 2016 to 87.25% in 2018.
Enterprises use more and more long-term funds.
- However Equity / Long-term resources ratio is very high, in 2017 and 2018 reaches
100%. Show that enterprises mainly or completely use equity and do not use long-
term debt.
 Enterprises have strong financial stability

3. Financial balance analysis

 2017/2016:
Compared to 2016:

Net working capital decreased 12.58% because the growth rate of Long-term assets
(49.9%) was larger than Long-term resources (6.6%). This represented a bad sign of the
enterprises's financial performance. If this continued for a long time, it was likely that in
the future long-term capital would not be enough to finance long-term assets.
Net working capital requirement decreased 33.04% because of the decreasing in all Net
value of inventories, Net value of short-term accounts receivables and Short-term
liabilities.
Net funds increased 7.79% because the reduced rate of Net working capital requirement
(33.04%) was larger than Net working capital (12.58%).

5
  2018/2017:

Compared to 2017:
Net working capital increased 4.03% because of the increasing in Long-term resources
(0.19%) and the decreasing in Long-term assets (4.87%). This represented an improvement
in the enterprises's financial policy compared to the previous year.
Net working capital requirement increased 62.98% because of the increasing in Net
value of inventories, Net value of short-term accounts receivables and the decreasing of
Short-term liabilities.
Net funds reasonably decreased 32.43% because the growth rate of Net working capital
requirement (62.98%) was a lot larger than Net working capital (4.03%). This represented
a bad sign of the enterprises's net working capital management.

II. Operating efficiency and profitability analysis

1. Operating efficiency analysis
 2017/2016:

Compared to 2016
- Total assets turnover in 2017 increased 6.01% because the growth rate of Total
revenue (14.64%) was larger than Total average assets (8.14%).
 The efficiency of using assets of enterprises increased.
- Fixed assets turnover in 2017 decreased 34.37%. Both Total revenue and Total
average fixed assets increased in 2017 but the growth rate of Total average fixed
assets (74.69%) was larger than Total revenue (14.64%).
 The way enterprises used and managed fixed assets was not really effective.
- Current assets turnover in 2017 increased 16.68% because of the increase in Total
revenue (14.64%) and the decrease in Total average current assets (1.75%). Besides,
Average days of current assets turnover decreased 14.29%.
 The enterprises used current assets more efficiently in 2017.
- Inventory turnover in 2017 increased 21.22% and Average days of inventory
turnover decreased 17.5%. This shows that inventory is quickly rotated in 2017.
 Inventory management policies had been improved.

6
 - Accounts receivable turnover in 2017 increased 15.19% proving that selling time
was shorter for customers in 2017. Besides, Average days of accounts receivable
turnover decreased 13.19%.
 The enterprises has implemented credit policies more effectively  the enterprises
achieved higher capital efficiency and better liquidity.
 2018/2017:

Compared to 2017:
- Total assets turnover in 2018 increased 4.83%. The total revenue increased but
only slightly (2.5%) and Total average assets decreased 2.22%.
 The way enterprises used and managed assets was not really effective.
- Fixed assets turnover in 2018 decreased 12.56%. Both Total revenue and Total
average fixed assets increased in 2018 but the growth rate of Total average fixed
assets (17.23%) was larger than Total revenue (2.5%).
 The way enterprises used and managed fixed assets was not really effective.
- Current assets turnover in 2018 increased 14.79% because of the increase in Total
revenue (2.5%) and the decrease in Total average current assets (10.71%). Besides,
Average days of current assets turnover decreased 12.88%.
 The enterprises used current assets more efficiently in 2018.
- Inventory turnover in 2018 decreased 5.54% and Average days of inventory
turnover increased 5.87%. This shows that inventories were rotated more slowly in
2018.
 The enterprises's inventory management policy is not effective.
- Accounts receivable turnover in 2018 increased 27.62%. This is partly due to the
decrease in Total average accounts receivable (19.7%). Besides, Average days of
accounts receivable turnover also decreased more sharply in 2018 (21.64%).
 This suggests that the enterprises may have implemented a tight credit policy.

2. Profitability analysis:
- Net profit margin decreased over the years, decreased sharply in 2017. Because the
profit before tax dropped sharply in 2017 while Net sales and Other income
increased→Enterprises should review costs from investment and other operations.

7
 - Operating profit margin is gradually increased over the years and decreased
sharply in 2017. Because net profit from business activities decreased while sales
revenue increased. → Enterprises should review cost management and cost of goods
sold.
- Gross profit margin gradually decreased over the years and drastically decreases
in 2017. In 2016, VND 100 revenue generated 32 profits but by 2018 100 VND
generated only 22 profit. The reason is that sales revenue has increased year by year
but gross profit has been decreasing since 2016-2018. It shows that the cost of goods
sold is increasing, and the increase is higher than the increase in sales revenue, that
mean the enterprises cannot control the cost well.
- ROA of the enterprise is quite high but gradually decreases so enterprises had not
effectively used assets to finance business activities.
- ROE of enterprises decreased gradually from 29.1%→18%, enterprises used
ineffectively contributed capital for investment activities. In 2016, 100 equity
capital generated 29 dong of profit while in 2018, 100 dong of equity only created
18 dong of profit. Enterprises use equity to increase but after-tax profits decreased.
 Enterprises should review management costs, effectively use capital sources
to reinvest, effectively use financial leverage.

III. Risk analysis:

1. Short-term liquidity:
- Current ratio of the enterprise is high and increases gradually over 3 years from 3.68->
5.04. Demonstrating that the short-term solvency of the enterprise is high, however, it is
too high to show that the assets of the enterprise are tied to "floating assets" too much and
thus the efficiency of using the assets of the enterprise Industry is not high.
- Average 3-year quick ratio is greater than 3 and gradually increases. Show that fast
payment ability is high, but if compared with current ratio, the difference between the two
coefficients over the years increased, indicating that the solvency of the business begins to
focus on inventory.
- High ratio of cash, high solvency of enterprises, but decreased in 2018, due to falling cash
and securities.

8
 - Operating cash flow to current liabilities ratio in 2016 and 2017 is greater than 0.4 but by
2018 this index is only 0.315, meaning that the business has short-term payment problems.
Because cash flow from business activities decreased sharply in 2018 .-> Enterprises
manage costs not well.
- Inventory turnover is quite high, increasing in 2 years 2016-2017, 2018 decreased
slightly, due to the increase the average inventories larger than the increase in cost of goods
sold.
- Accounts receivable turnover increased, rising sharply in 2018. Because sales revenue
increased when account receivables decreased. This may indicate that the enterprises has a
pretty good policy.
- High account payable turnovers, dropped in 2017 and bounced back in 2018. In 2018 the
increase of payables is smaller than the increase in purchases making the number of
liabilities revisited again.
 Enterprises had relatively good short-term solvency, less payment risk.

2. Long-term solvency:
- Debt ratio of enterprises was low. In 2016, this rate reached 21%, which is the highest
rate in 3 years. This means that 21% of business assets was sponsor from borrowing. In
contrast, in 2018, this rate was the lowest (13%). This proves that enterprises borrow less
gradually in the last 3 years. →The financial autonomy of business was high.
- Liabilities to owner's equity ratio decreased gradually in this period. In 2016, this ratio
was the highest (0.26), in contrast to this ratio in 2018 (0.15). Besides, this ratio in the last
3 years was less than 1, meaning debt Payables account for a smaller percentage of total
assets or total capital. →The enterprises have less financial difficulties.
 Debt ratio was small so the long-term solvency risk of enterprises was low.
- The interest coverage ratios of enterprises high and this ratio increased rapidly in this
period. Especially, from 2017 to 2018, the difference of this ratio between in 2017 and in
2018 was 1,350.37. Besides, this ratio was higher than 2 → this enterprises's ability to pay
interest for creditors was very high and the level of risk that businesses pay interest on
creditors is very low.
- Operating cash flow to total liabilities ratio: While this ratio in 2017 was highest (1.46),
its this ratio in 2018 was 0.31→The firm’s abilities to generate cash flow from operations

9
to service debt in 2017 was the best. Besides, this ratio is greater than 0.2 in 3 years so the
enterprises had a financial healthy.

3. Bankruptcy risk and Systematic risk

 On bankruptcy risk:

The enterprises’ s Z-score of all 3 years were greater than 3. This showed that the
enterprises had healthy finance and no risk of bankruptcy.
 On Systematic risk:

DOL:
- The DOL of 2017 and 2018 were both negative, indicating that the enterprises was
operating in the loss zone. From a specified sales level, the change in sales would
lead to the change in profit in the opposite direction as the change in sales
- The DOL in 2017 was -2.51 which meant that from the sales level of
4,056,607,554,239, 1% of the increasing in sales would lead to 2.51% of the
decreasing in profit.
- The DOL in 2018 was -5.11 which meant that from the sales level of
4,129,972,734,326, 1% of the increasing in sales would lead to 5.11% of the
decreasing in profit.
 The DOL of 2018 compared to 2017 showed that when sales changed, profits in
2018 were more sensitive and risky than in 2017.

DFL:
- The DFL in 2017 was 1.825 which meant at the EBIT of 584,219,124,565, if the
enterprises increased or decreased 1% of this profit, the ROE would increase or
decrease by 1.825%. This leaded to the change of EPS in the same direction.
- The DFL in 2018 was 3.075 which meant at the EBIT of 530,213,085,985, if the
enterprises increased or decreased 1% of this profit, the ROE would increase or
decrease by 3.075%. This leaded to the change of EPS in the same direction.
 The DFL of 2018 compared to 2017 showed that when profits changed, the ROE in
2018 were more sensitive and risky than in 2017.

10
 Compare your financial indicators with other industry indices
Items NTP BMP
ROE % 15.28 17.62
ROA % 8.31 18.81
ROS % 8.57 13.43
Total Assets turnover Times 0.994 1.400
Inventory turnover Times 3.45 6.402
Account Receivable
turnover Times 3.18 8.137

Debt ratio % 53.80 12.75

Current ratio Times 1.12 5.039

IV. Business valuation

Analyst project 5% (g1) grew in earnings over the next five years. Assuming concurrent 5% growth
in dividends, the following table provides the amount that analyst projects for Binh Minh's total
dividends for each of the next five years. In Year +6, total dividends are projected for Binh Minh
assuming that its income statement and balance sheet will at a long-term growth rate of 2 % (g2). In
2018, the dividends which were paid to common shareholders was 327,443,752,000 VND.

Common stock issues and Common stock repurchases were 0 VND.

Items Year +1 Year +2 Year +3 Year +4
1.Total dividends to common 343,815,939,600 361,006,736,580 379,057,073,409 398,009,927,079
equity (D0+ D0x5%)
2. Present value factor 0.930 0.865 0.805 0.749
(RE = 7.5%)
Present value of dividends 319,828,781,023 312,390,902,395 305,125,997,688 298,030,044,253
(1x2)
Items Year +5
1.Total dividends to common 417,910,423,433
equity

11
2. Present value factor 0.697
(RE = 7.5%)
Present value of dividends 291,099,112,992
Sum of present value 1,526,474,838,351
dividends, Years+1 through
year+5

Project Year +6 Dividends: D+6 = D+5+ D+5x2% = 426,268,631,902 VND

7,750,338,761,856 VND

5,398,565,368,209 VND

Present value of common equity = Sum of present value dividends ( Year+1 through year
+5) + Present value of continuing value = 6,925,040,206,560 VND.
Total value of Binh Minh's Dividends VND
Present value of dividends through year +5 1,526,474,838,351
Present value of continuting value 5,398,565,368,209
 This value
Present value of common equity 6,925,040,206,560
estimate is
Adjust for midyear discounting 1.0375
roughly 80.22%
( multiply by 1+[RE/2])
higher than the
Total present value of common equity 7,184,729,214,306
market current
Divide by number of shares outstanding 81,860,938
price.
Value per share of Binh Minh common equity 87,767
Current share price 48,700
Precent difference 80.22%

C.CONCLUTION:
 Assets structure:
- Short-term account receivable, fixed assets, short-term financial investment,
inventories which were types of assets accounted for large proportion.

12
 Resource structure:
- Financial Autonomy:
+ Enterprises mainly mobilize capital from equity.
+ Enterprise had high autonomy in terms of capital use, mainly mobilizing capital
from owners. However, this is not entirely beneficial. The company couldn’t
determine the optimal capital structure of the enterprise, which could make the
company use inefficient capital and put pressures on owners.
- Funding stability: The enterprise had strong financial stability.
 Financial balance:
- The financial policy of the business has improved in 2018 compared to the previous
two years. However, the net working capital management policy of the company is
not really effective.
 Operating efficiency:
- Although the way company used and managed fixed assets was not really well in
2018, the company used current assets more efficiently.
- The company's inventory management policy is not effective.
- The company's credit policy has been tightened in 2018.
 Profitability:
- The increasing in the cost of goods sold was higher than in sales revenue, which
showed that the enterprise cannot control the cost well.
- The enterprise has not effectively used assets to finance business activities.
 Short-term liquidity:

- Enterprises have relatively good short-term solvency, less payment risk.

 Long-term solvency:

- The enterprises borrowed less gradually in the last 3 years. In other words, the
financial autonomy of business was high.

- Liabilities accounted for a smaller proportion of total assets or total capital.

Therefore, the company had less financial difficulties.

- Debt ratio was small so the long-term solvency risk of the company was low
13
 - Interest Coverage Ratios was higher than 2. Therefore, this company's ability to pay
interest for creditors was very high and the level of risk that businesses pay interest
on creditors is very low.
- Operating cash flow to total liabilities ratio was highest in 2017. This meant that the
firm’s ability to generate cash flow from operations to service debt in 2017 was the
best. Besides, this ratio is greater than 0.2 in 3 years so the company had a financial
healthy.
 Bankruptcy risk:
- The company’s Z-score of all 3 recent years were greater than 3. This showed that
the company had healthy finance and no risk of bankruptcy.
 Systematic risk:
- The DOL of 2018 compared to 2017 showed that when sales changed, profits in
2018 were more sensitive and risky than in 2017.
- The DFL of 2018 compared to 2017 showed that when profits changed, the ROE in
2018 were more sensitive and risky than in 2017.
- The company has used more financial leverage.
 Business valuation:
- The value per share of the company’s common equity was 87,767 VND, the current
share price was 48,700. Therefore, shares of Binh Minh JSC appeared underpriced
by about 80.22%.

Give recommendations:
- The enterprise should review management costs, effectively use capital sources to
reinvest, effectively use financial leverage.
- Investors should buy shares of Binh Minh JSC.

14
D. TABLES
Table 1: Financial structure
Items
1.Cash and cash equivalents
2.Short-term financial
investments
3.Short-term receivables
4.Inventory
5.Other current asset
6.Long-term receivables
7.Fixed asset
8.Long-term asset in
progress
9.Long-term financial
investments
10.Other long-term assets
11.Long-term assets
12.TOTAL ASSETS
13. Liabilities
13a.Current liabilities
13b.Long-term liabilities
2016 2017 2018 2017/2016 2018/2017
404,984,303,020 445,325,555,042 412,303,012,109 40,341,252,022 (33,022,542,933)
490,000,000,000 450,000,000,000 200,000,000,000 (40,000,000,000) (250,000,000,000)
810,289,964,598 509,512,656,705 599,424,414,290 (300,777,307,893) 89,911,757,585
471,566,033,404 384,705,882,686 567,338,833,213 (86,860,150,718) 182,632,950,527
9,089,862,577 25,726,768,620 27,622,093,075 16,636,906,043 1,895,324,455
0 0 0 - -
593,845,512,224 934,706,927,841 857,157,562,988 340,861,415,617 (77,549,364,853)
34,015,745,834 10,285,864,322 13,366,617,816 (23,729,881,512) 3,080,753,494
66,565,759,231 67,018,922,495 67,831,379,352 453,163,264 812,456,857
10,718,117,089 44,965,603,408 67,154,676,418 34,247,486,319 22,189,073,010
705,145,134,378 1,056,977,318,066 1,005,510,236,574 351,832,183,688 (51,467,081,492)
2,891,075,297,977 2,872,248,181,119 2,812,198,589,261 (18,827,116,858) (60,049,591,858)
593,701,687,314 423,168,399,861 358,546,067,527 (170,533,287,453) (64,622,332,334)
593,533,958,214 423,168,399,861 358,546,067,527 (170,365,558,353) (64,622,332,334)
167,729,100 - - (167,729,100) -
15
14.Equity 2,297,373,610,663 2,449,079,781,258 2,453,652,521,734 151,706,170,595 4,572,740,476
15.Long-term 2,297,541,339,763 2,449,079,781,258 2,453,652,521,734 151,538,441,495 4,572,740,476
resources=12b+13
16.Owner’s equity 2,297,373,610,663 2,449,079,781,258 2,453,652,521,734 151,706,170,595 4,572,740,476
17.TOTALRESOURCES 2,891,075,297,977 2,872,248,181,119 2,812,198,589,261 (18,827,116,858) (60,049,591,858)
18.Proportion of cash and 14.01 15.5 14.66 1.49 (0.84)
cash equivalents
19.Proportion of short-term 16.95 15.67 7.11 (1.28) (8.56)
financial investment
20.Proportion of short-term 28.03 17.74 21.32 (10.29) 3.58
account receivable
21.Proportion of inventories 16.31 13.39 20.17 (2.92) 6.78
22.Proportion of other 0.31 0.9 0.98 0.59 0.08
current assets
23.Proportion of long-term 0 0 0 - -
account receivable
24.Proportion of fixed assets 20.54 32.54 30.48 12.00 (2.06)
25.Proportion of long-term 1.18 0.36 0.48 (0.82) 0.12
assets in progress
26.Proportion of long-term 2.3 2.33 2.41 0.03 0.08
financial investment

16
27.Proportion of other non- 0.37 1.57 2.39 1.20 0.82
current assets
28.Debt ratio = (13/12)*100 20.54 14.73 12.75 (5.80) (1.98)
29.Equity ratio = (16/12)*100 79.46 85.27 87.25 5.80 1.98
30.Debt/Equity ratio = 25.84 17.28 14.61 (8.56) (2.67)
(13/16)*100
31.Short-term resources 20.53 14.73 12.75 (5.80) (1.98)
ratio=(13a/17)*100
32.Long-term resources ratio 79.47 85.27 87.25 5.80 1.98
= (15/17)*100
33.Equity/Long-term 99.99 100.00 100.00 0.01 -
resources ratio = (14/15)*100
34.Net working capital = 1,592,396,205,385 1,392,102,463,192 1,448,142,285,160 (12.58) 4.03

15-11

35.Net value of inventories 471,566,033,404 384,705,882,686 567,338,833,213 (18.42) 47.47

36. Net value of short-term 810,289,964,598 509,512,656,705 599,424,414,290 (37.12) 17.65

accounts receivables

37. Short-term liabilities 487,541,771,214 362,351,212,861 299,920,880,527 (25.68) (17.23)

(excluding short -term
borrowing)

17
 38. Net working capital 794,314,226,788 531,867,326,530 866,842,366,976 (33.04) 62.98
requirement=35+36-37

39. Net funds=34-38 798,081,978,597 860,235,136,662 581,299,918,184 7.79 (32.43)

Table 2: Operating efficiency

Items 2016 2017 2018 2017-2016 2018-2017
(%) (%)
Net revenue 3,308,743,610,428 3,824,658,667,478 3,919,637,438,056 15.59 2.48
Total revenue 3,358,106,467,424 3,849,706,200,750 3,945,876,580,383 14.64 2.5
Total average assets 2,664,705,014,5267 2,881,661,739,548 2,817,661,286,647 8.14 (2.22)
Total assets turnover 1.260 1.336 1.400 6.01 4.83
Total average fixed assets 437,509,313,199 764,276,220,033 895,932,245,415 74.69 17.23
Fixed assets turnover 7.676 5.037 4.404 (34.37) (12.56)
Total average current assets 2,036,134,931,279 2,000,600,513,326 1,786,417,509,327 (1.75) (10.71)
Current assets turnover 1.649 1.924 2.209 16.68 14.79
Average days of current assets turnover 221.312 189.682 165.247 (14.29) (12.88)
Cost of goods sold 2,248,176,459,769 2,901,883,582,006 3,047,590,783,016 29.08 05.02
Total average inventory 402,058,021,199 428,135,958,045 476,022,357,950 6.49 11.18
Inventory turnover 5.592 6.778 6.402 21.22 (5.54)
Average days of inventory turnover 65.276 53.851 57.012 (17.5) 5.87
Total average accounts receivable 657,618,182,404 659,901,310,651.5 529,906,436,954.0 0.35 (19.7)
Accounts receivable turnover 5.535 6.375 8.137 15.19 27.62

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Average days of accounts receivable turnover 65.949 57.251 44.859 (13.19) (21.64)

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Table 3: Profitability analysis
Items 2016 2017 2018
1 Net sales 3,308,743,610,428 3,824,658,667,478 3,919,637,438,056
2 Cost of goods sold 2,248,176,459,769 2,901,883,582,006 3,047,590,783,016
3 Gross profit =(1)-(2) 1,060,567,150,659 922,775,085,472 872,046,655,040
4 Interest expense 3,396,589,902 1,262,423,915 292,427,536
5 Financial Income 48,978,172,732 24,481,735,279 25,106,601,101
6 Net operating profit 786,327,828,820 589,813,865,164 529,053,299,040
7 Other Income 384,684,264 565,797,993 1,132,541,226
8 Profit before tax 783,984,930,563 582,956,700,650 529,920,658,449
9 Income tax 156,580,447,448 118,261,715,055 102,310,470,887
10 Profit after tax 627,404,483,115 464,694,985,595 427,610,187,562
11 EBIT=(8)+(4) 787,381,520,465 584,219,124,565 530,213,085,985
12 Short term liabilities 593,533,958,214 423,168,399,861 358,546,067,527
13 Total Assets 2,891,075,297,977 2,872,248,181,119 2,812,198,589,261
14 Average total assets 2,664,705,014,527 2,881,661,739,548 2,817,661,286,647
15 Average owner's equity 2,156,326,347,334 2,373,226,695,961 2,426,804,052,953
16 Net profit margin =8/(1+5+7) 23.35 15.14 13.43
17 Operating profit margin = 23.42 15.32 13.41
(6)/((1)+(5))
18 Gross profit margin (=(3)/(1)) 32.05 24.13 22.25
19 ROA(=(8)/(14)) 29.42 20.23 18.81
20 ROE (=(10)/(15)) 29.1 19.58 17.62
21 RE =(11)/(14) 29.55 20.27 18.82
22 ROCE =(11)/((13)-(12) 34.27 23.85 21.61

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Table 4:Short-term Liquidity
2016 2017 2018
1 Cash 404,984,303,020 445,325,555,042 412,303,012,109
2 Marketable securities 490,000,000,000 450,000,000,000 200,000,000,000
3 Inventory 471,566,033,404 384,705,882,686 567,338,833,213
4 Receivables 810,289,964,598 509,512,656,705 599,424,414,290
5 Other current assets 9,089,862,577 25,726,768,620 27,622,093,075
6 Current assets 2,185,930,163,599 1,815,270,863,053 1,806,688,352,687
7 Cost of goods sold 2,248,176,459,769 2,901,883,582,006 3,047,590,783,016
8 Average inventories 402,058,021,199 428,135,958,045 476,022,357,950
9 Sales 3,308,743,610,428 3,824,658,667,478 3,919,637,438,056
10 Average account receivables 657,618,182,404 659,901,310,652 554,468,535,498
11 Cash Flow from Operations 406,774,776,215 741,594,519,419 122,927,890,792
12 Current liabilities 593,533,958,214 423,168,399,861 358,546,067,527
13 Average current liabilities 508,126,621,428 508,351,179,038 390,857,233,694
14 Purchases 2,387,192,484,180 2,815,023,431,288 3,230,223,733,543
15 Average account payables 111,963,361,016 150,181,491,118 151,449,773,652
16 Current ratio =6/12 3.683 4.290 5.039
17 Quick ratio =(1+2+4)/12 2.873 3.320 3.380
18 Cash ratio =(1+2)/12 1.508 2.116 1.708
19 Operating cash flow to 0.801 1.459 0.315
current liabilities ratio
=11/13
20 Inventory turnover = 7/8 5.592 6.778 6.402
21 Accounts receivable 5.535 6.375 8.137
turnover = 9*1.1/10
22 Accounts payable turnover 21.321 18.744 21.329
=14/15

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 Table 5:Long-term solvency
Items 2016 2017 2018 2017/2016 2018/2017
± ±
1.TOTAL ASSETS 2,891,075,297,977 2,872,248,181,119 2,812,198,589,261 (18,827,116,858) (60,049,591,858)
2. LIABILITIES 593,701,687,314 423,168,399,861 358,546,067,527 (170,533,287,453) (64,622,332,334)
2b. Long-term liabilities 167,729,100 - - (167,729,100) -
3. Owner’s equity 2,297,373,610,663 2,449,079,781,258 2,453,652,521,734 151,706,170,595 4,572,740,476
4.Profit before tax 783,984,930,563 582,956,700,650 529,920,658,449 (201,028,229,913) (53,036,042,201)
5.Interest expense 3,396,589,902 1,262,423,915 292,427,536 (2,134,165,987) (969,996,379)
6. Income taxes 156,580,447,448 118,261,715,055 102,310,470,887 (38,318,732,393) (15,951,244,168)
7. Cash payments for interest 3,625,874,758 4,716,298,317 574,652,945 1,090,423,559 (4,141,645,372)
8. EBIT 787,381,520,465 584,219,124,565 530,213,085,985 (203,162,395,900) (54,006,038,580)
9. Cash flow from Operations 406,774,776,215 741,594,519,419 122,927,890,792 334,819,743,204 (618,666,628,627)
10. Average total liabilities 508,378,667,178 508,435,043,588 390,857,233,694 56,376,410 (117,577,809,894)
11.Debt ratio
11a.Liabilities to assets ratio = 0.21 0.15 0.13 (0.06) (0.02)
(2/1)
11b.Liabilities to owner's equity 0.26 0.17 0.15 (0.09) (0.03)
ratio = (2/3)
11c.Long-term liabilities to Long- 0.0001 - - (0.0001) -
term capital ratio = 2b/(2b+3)

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 11d. Long-term liabilities to 0.0001 - - (0.0001) -
Owner’s equity ratio = (2b/3)
12. Interest coverage ratios
12a. Interest coverage ratios=8/5 231.82 462.78 1,813.14 230.96 1,350.37
12b. Interest coverage ratios ( Cash 156.31 182.58 392.46 26.28 209.88
flow basis)=(9+5+6)/7
13. Operating cash flow to total 0.80 1.46 0.31 0.66 (1.14)
liabilities ratio=7/8

Table 6: Bankruptcy risk and Systematic risk

Items 2016 2017 2018 2017-2016 (%) 2018-2017 (%)
1. Total assets 2,891,075,297,977 2,872,248,181,119 2,812,198,589,261 (0.7) (2.1)
2. Profit before tax 783,984,930,563 582,956,700,650 529,920,658,449 (25.6) (9.1)
3. Interest expense 3,396,589,902 1,262,423,915 292,427,536 (62.8) (76.8)
4. EBIT=(2)+(3) 787,381,520,465 584,219,124,565 530,213,085,985 (25.8) (9.2)
5. Cash flow from Operations 406,774,776,215 741,594,519,419 122,927,890,792 82.3 (83.4)
6. Net working capital 1,592,396,205,385 1,392,102,463,192 1,448,142,285,160 (12.6) 4.03
7. Retained earning 540,429,205,015 345,885,260,495 308,800,462,463 (36) (10.7)
8. Market value of Equity 2,297,373,610,663 2,449,079,781,258 2,453,652,521,734 6.6 0.2
9. Book value of Liabilities 593,701,687,314 423,168,399,861 358,546,067,527 (28.7) (15.3)
10. Sales 3,678,351,052,989 4,056,607,554,239 4,129,972,734,326 10.3 1.8
11. Analyzing bankruptcy risk

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Z-score 5.42 6.31 6.97 16.4 10.5
=1.2(6/1)+1.4(7/1)+3.3(4/1)+0.6(8/9)+1.
0(10/1)
12. % change in EBIT - (25.8) (9.2) - (99.6)
13. % change in sales - 10.3 1.8 - (82.5)
14. Profit after tax 627,404,483,115 464,694,985,595 427,610,187,562 (25.9) (8)
15. Average owners' equity 454,784,800,000 636,697,090,000 818,609,380,000 40 28.6
16. ROE=(14)/(15) 1.38 0.73 0.522 (47.1) (28.5)
17. % change in ROE - (47.1) (28.5) - (39.7)
18. Systematic risk
DOL=(12)/(13) - (2.51) (5.11) - 103.6
DFL=(17)/(12) - 1.825 3.075 - 68.5

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E. Summary enterprise’s financial statements in the last 3 year
Enterprise’s financial statements in 2016

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Enterprise’s financial statements in 2017

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Enterprise’s financial statements in 2018

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