CORPORATE FINANCE

Group assignment 1 _ Financial Analysis

Duedate: 23:59 September 13, 2021

Requirements: Your group selects a manufacturing company which is currently listed on

the Vietnamese Stock Exchanges and analyze its financial statements. Your group is required to
assess five (05) aspects of the chosen companies: Liquidity, Asset efficiency, Leverage, Profitability
and Market value.
You may use the below guideline or you can create your own analysis. After completing the
assignment, your group has to make both written report and oral presentation.
▪ The written report consists both word and excel calculation (if any). The report should be
uploaded in LMS by the above due date. The written report should be in word form,
maximum 20 pages (excluding reference and appendix)

• The oral presentation: Each team will have to make presentation on your own. Each team
member should make it assisted by PowerPoint or any other appropriate tools where
appropriate. The oral presentation will be recorded and made as a video clip which will be
uploaded in the Youtube. The link of the video must be specified in the written report.
Please be noted that:
▪ Every member has to make presentation and his/her face must be shown in the video.
▪ Each member should NOT present for more than 5 minutes.

Good luck!

Group Assignment 1_ Financial Analysis Lecturers: Vo Hong Duc

Tu Thi Kim Thoa
 GUIDELINE FOR COMPANY FINANCIAL ANALYSIS

Please note that this is just a guideline for the assignment. Students can use their own ideas for
designing the report. We will appreciate extra contribution and deeper analysis for the
company.
Hint:
1. For simplicity, you should NOT choose a diversified company for analysis.
2. Before choosing the company, please make sure you can find the industry average or
appropriate competitor to make comparison).
You should go to the corporation website and other relevant sources (see the recommendation at the
end of this guideline) to get financial statements of the at least 3 latest consecutive years and other
information needed for analysis.
The analysis should contain following information:
1. An introduction: (about a page maximum)
o The company's name, postal address and (if available) internet address;
o the year in which your company was founded and the state in which it is incorporated;
o the company's independent (external) audit firm;
o the company's primary line(s) of business;
o size of the company, accompanied by an explanation of the company characteristics
that provide a measure of its size;
o the ticker symbol for your company and the stock exchange on which its shares are
listed;
o membership of the company's Board of Directors, using whatever characteristics you
think are most relevant to depict the composition of the Board [briefly explain each];
and
o the majority-owned subsidiaries [maximum of four, ranked by size] of your company.
2. Analysis of profit/loss and balance sheet
a. Review the most recent year-end balance sheet (at least 3 consecutive years) of the company
and indicate the following:
o the amount of total current assets;
o the amount of total non-current assets;
o the amount of total current liabilities;
o the amount of total non-current liabilities; and
o the amount of total stockholders' equity.

Group Assignment 1_ Financial Analysis Lecturers: Vo Hong Duc

Tu Thi Kim Thoa
 For each of the above, note whether this was an increase, a decrease, or no change from the
previous year's income statement. Besides, you should better compare it with industry average or its
direct competitor.
Hint: You should use common-size analysis for this part beside using absolute value when
comparing with industry average and DO NOT forget to compare with industry average or its
competitor(s).
b. Review the most recent year's (at least 3 consecutive years) income statement and indicate
the following:
o total (operating) revenues;
o cost of goods sold (if listed);
o total expenses (before income taxes)
o any non-operating (or extraordinary) gains and losses; and
o earnings per common share.
For each of the above, note whether this was an increase, a decrease, or no change from the
previous year's income statement. Besides, you should better compare it with industry average or its
direct competitor.
Hint: You should use common-size analysis for this part beside using absolute value when
comparing with industry average or its competitor(s).
3. Ratio Analysis
o Liquidity ratios
o Efficiency ratios
o Long-term solvency ratios
o Profitability ratios
o Market value ratios (if applicable)
For each of the above, note whether this was an increase, a decrease, or no change from the
previous year's income statement. Besides, you should better compare it with industry average or its
competitor(s).
4. Conclusion
Brief conclusion about your company in general and in each of aspects: liquidity, efficiency,
solvency, profitability, and market value.

Notes: Followings are my recommendation on useful sources of information you may need for your
analysis:
• Company’s annual reports are useful material for your analysis

Group Assignment 1_ Financial Analysis Lecturers: Vo Hong Duc

Tu Thi Kim Thoa
 • You could find some (not all) industry average ratios in financial websites such as:
www.cafef.vn; www.cophieu68.com; www.vndirect.com.vn; www.stockbiz.vn;
www.vietstock.vn;...
• You may need to use different types of charts, tables… to illustrate your idea.
• It would be better if the ratios are compared with industry average or those of its competitor

The end!

Group Assignment 1_ Financial Analysis Lecturers: Vo Hong Duc

Tu Thi Kim Thoa