ACADEMY OF FINANCE

FACULTY OF CORPORATE FINANCE

DEPARTMENT OF CORPORATE FINANCE

Full name: Trần Thị Huyền Student number:20CL73403010113

Credit class: CQ58/22CL1_LT2 Class: CQ58/22.02CL

Ordinal number: 07 Exam Room ID:581-058-3214

Examination date: 22/03/2022 Time: 9h 05

SUBJECT: CORPORATE FINANCE

Exam form: Case study report

Exam time: 3 days

 Table of contents
INTRODUCTION ..............................................................................................................................................1
PART 1: Theories of the profitability ............................................................................................................2
1.1.Definition, content of the profitability..................................................................................................2
1.1.1.Definition .............................................................................................................. 2
1.1.2. Content of the profitability .................................................................................. 2
1.2. Financial indicators of the profitability ..............................................................................................2
1.3. Factors affecting the profitability ........................................................................................................4
Part 2: The situation of the profitability of I.D.I International Development &Investment Corporation .....5
2.1. Overview of I.D.I International Development &Investment Corporation .........................................5
2.1.1. Introdution of I.D.I International Development &Investment Corporation ....... 5
2.1.2. The history of I.D.I International Development &Investment Corporation ........ 5
2.1.3. Recent developments and recent performance .................................................... 6
2.2.Situation of the profitability of I.D.I International Development & Investment Corporation..............7
2.2.1. Situation of profitability ...................................................................................... 7
2.2.2. The profitability ratios ......................................................................................... 8
2.2.3. The du-pont analysis .......................................................................................... 10
2.3.Assessment of the profitability of I.D.I International Development &Investment Corporation ........12
2.3.1. Results and advantages ...................................................................................... 12
2.3.2: Limitation. ......................................................................................................... 12
2.3.3.:Cause ................................................................................................................. 12
Part 3: Suggested solutions...........................................................................................................................13
CONCLUSION ................................................................................................................................................14
 INTRODUCTION
The importance of the profitability

Nowadays, in modernized industry, every business needs to constantly innovate

and create so as not to be eliminated from the market to catch up with the economic
trend of the new age. And the most important goal of investors and business
administrators is to maximize business value. To maximize business value, the most
basic thing is to maintain and increase the profitability of the business every year. So,
businesses need to take effective measures to improve operational efficiency and
profitability. Factors such as inflation, gdp, unemployment rate, .. or factors of each
business such as debt usage, asset investment level, business strategy used to increase
profitability in Every business is different. Therefore, business managers, investors
always want to determine which factors affect profitability and the direction of impact
of those factors. To clarify the influence of the factors affecting to the profitability,
we go to analyze and assess the situation of the profitability of I.D.I International
Development &Investment Corporation in the course of three years, from the 2018
to 202.

Objective of research

The objective of research is point out the factors,which affect to the profitability
of the corporation and analyze the impact of those factors to know the causes and
influence of the factors. Corporation, then base on the limitation, offer some effective
solutions to increase the profitability of the bussiness.

Scope of the study

In term of space: research on profitability of I.D.I International Development

&Investment Corporation. The subject is specialized in doing business on processing
and preserving of fisheries and fishery products.

Structure of the study

Beside the introduction, conclusion, references and appendicates, the report

consists of 3 parts:

Part 1: Theories of the profitability.

Part 2: The situation of the profitability of of I.D.I International Development

&Investment Corporation.

Part 3: Suggest solutions.

1
PART 1: Theories of the profitability
1.1.Definition, content of the profitability
1.1.1.Definition
Profitability is the ability of a corporation or business to generate revenue
over and above its expenses and is usually measured using ratios like gross profit
margin, net profit margin EBIT,…

1.1.2. Content of the profitability

Profitability is measured with the net profit ratio and the earnings per share
ratio. A higher ratio or value is commonly sought-after by most companies, as this
usually means the business is performing well by generating revenues, net income,
và Percentage

RevenueThe revenue your business generates is a part of the profit margin

calculation you use to gauge your company’s profitability. Revenue includes all the
money your company makes as a result of selling products or services to your
customers.

Net Income

Your company’s net income includes all revenue earned, less the costs you
incur to create a product or provide a service. Some of these costs may include
supplies, depreciation on equipment, materials to create the products you sell, rent,
marketing expenses and salaries. It is also commonly referred to as the after-tax
income.

Percentage

The final element of profitability is the way it is expressed. The equation for
profit margin is net income divided by revenue. You should express the result of the
equation as a percentage, which indicates which percentage of profit you generate on
the revenue your company makes.

1.2. Financial indicators of the profitability

Profirt Margin (or ROS – return on sale): Profit margin is one of the
commonly used profitability ratios to gauge the degree to which a corporation or a
business activity makes money. It represents what percentage of sales has turned into
profits.
𝐧𝐞𝐭 𝐩𝐫𝐨𝐟𝐢𝐭
ROS = =a
𝐧𝐞𝐭 𝐬𝐚𝐥𝐞𝐬

Meaning: One VND of net sales creates a VND of net profit.

2
 Basic Earning Power (BEP): margin is one of the commonly used profitability
ratios. Basic return on assets indicates: An average unit of assets put into business
generates several units of profit before interest and taxes.
𝐄𝐁𝐈𝐓
BEP = =b
𝐀𝐯𝐞𝐫𝐚𝐠𝐞 𝐭𝐨𝐭𝐚𝐥 𝐚𝐬𝐬𝐞𝐭

Meaning: One VND of assets creates b VND of EBIT.

Return on Assets (ROA): refers to a financial ratio that indicates how

profitable a corporation is in relation to its total assets. The ratio is typically used
when comparing a corporation’s performance between periods, or when comparing
two different companies of similar size in the same industry.
𝐍𝐞𝐭 𝐏𝐫𝐨𝐟𝐢𝐭
ROA = =C
𝐀𝐯𝐞𝐫𝐚𝐠𝐞 𝐓𝐨𝐭𝐚𝐥 𝐚𝐬𝐬𝐞𝐭𝐬

Meaning: One VND of assets creates c VND of net profit.

Return on Equity (ROE): Return on equity (ROE) is a measure of financial

performance calculated by dividing net income by shareholders' equity. Because
shareholders' equity is equal to a corporation’s assets minus its debt, ROE is
considered the return on net assets.
𝐍𝐞𝐭 𝐏𝐫𝐨𝐟𝐢𝐭
ROE =
𝐀𝐯𝐞𝐫𝐚𝐠𝐞 𝐓𝐨𝐭𝐚𝐥 𝐞𝐪𝐮𝐢𝐭𝐲
= d

Meaning: One VND of equity creates d VND of net profit.

The Du-Pont analysis

The DuPont equation shows how the profit margin, the total assets turnover
ratio, and the use of debt interact to determine the return on equity. This method is
applied to analyze two indicators: ROA and ROE. The profit margin times the total
assets turnover is called the Basic Dupont Equation, anh it gives the rate of return
on assets (ROA) :

ROA = Profit margin (ROS) x Total assets turnover

𝐧𝐞𝐭 𝐩𝐫𝐨𝐟𝐢𝐭 𝐧𝐞𝐭 𝐬𝐚𝐥𝐞𝐬
= x
𝐧𝐞𝐭 𝐬𝐚𝐥𝐞𝐬 𝐚𝐯𝐞𝐫𝐚𝐠𝐞 𝐭𝐨𝐭𝐚𝐥 𝐚𝐬𝐬𝐞𝐭

ROA, in the DuPont equitation, is affected by two factors. They are profit
margin, total asset turnover.

ROE = Profit margin(ROS) x Total assets turnover x Equity multiplier

3
 𝐧𝐞𝐭 𝐩𝐫𝐨𝐟𝐢𝐭 𝐧𝐞𝐭 𝐬𝐚𝐥𝐞𝐬 𝒂𝒗𝒆𝒓𝒂𝒈𝒆 𝒕𝒐𝒕𝒂𝒍 𝒂𝒔𝒆𝒕
= x x
𝐧𝐞𝐭 𝐬𝐚𝐥𝐞𝐬 𝐚𝐯𝐞𝐫𝐚𝐠𝐞 𝐭𝐨𝐭𝐚𝐥 𝐚𝐬𝐬𝐞𝐭 𝒂𝒗𝒆𝒓𝒂𝒈𝒆 𝒕𝒐𝒕𝒂𝒍 𝒆𝒒𝒖𝒊𝒕𝒚

ROE, in the DuPont equitation, is affected by three factors. They are profit margin,
total asset turnover and equity multiplier. Dupont measures:

Operating efficiency: How efficiency inputs are being used to generate profits
(earnings).

Assets use efficiency: How well total assets are being used to generate revenue/net
sales (turnings).

Financial leverage: How well the business is leveraging its debt capital (leverage).

1.3. Factors affecting the profitability

The essence of profitability is a firms Revenue – Costs with revenue
depending upon price and quantity of the good sold.

These factors will all determine the profitability of firms:

Degree of market competition:

Highly contestable markets- lower prices and a tendency towards normal profits
because businesses must respond to actual and threat of competition. Monopoly with
entry barriers- supernormal profits made in the long run.

Rate of growth of market demand:

Profitability gets squeezed in a recession, falling demand and less pricing powe
Price elasticities of demand for goods & services: Business with market power can
use price discrimination to make more money.

Changes in cost factors:

Changing costs of variable factors e.g. wages and raw materials. Changing fixed
costs e.g. insurance, interest rates, capital equipment. Impact of government
regulations, subsidies and losses. Changes in the level of productively of factor inputs
used by a business.

4
Part 2: The situation of the profitability of I.D.I International Development
&Investment Corporation
2.1. Overview of I.D.I International Development &Investment Corporation
2.1.1. Introdution of I.D.I International Development &Investment
Corporation
Unit name: I.D.I International Development &Investment Corporation

Address: at Highway 80, Vam Cong Industry Cluster, An Thanh Hamlet,

Binh Thanh Commune, Lap Vo District, Dong Thap Province, Vietnam.

Phone: +84 673680383

Email: idiseafood@vnn.vn

Establish: 15/07/2003

Website: http://www.idiseafood.com

Charter capital at the beginning: 29 billion VND

Business: processing and preserving of fisheries and fishery products.and

Buying and selling building materials, interior decoration Production, transmission
and distribution of electricity. Exploitation of stone, sand, gravel and clay. Fish oil
production and trading. Real estate business.

2.1.2. The history of I.D.I International Development &Investment

Corporation
I.D.I International Development & Investment Corporation was establish in
2003, under the bussiness registration certificate No. 4103001715 issued by the
Department of Planning and Investment of Ho Chi Minh City on 15/07/2003.

In 2005, IDI started the Vam Cong industrial cluster project with a scale of
nearly 23 hectares in Lap Vo district, Dong Thap province.

In 2007, IDI officially started construction of the No. 1 seafood processing

factory and ancillary items. This is also the first factory in Vam Cong industrial
cluster to be built. Besides, IDI continues to pay compensation for the rest of Vam
Cong industrial cluster and kick off the Company's project of raising raw fish.

In 2008, the Company completed the construction and installation of

equipment, bringing the first phase of the No. 1 seafood processing factory with the
designed capacity of the first phase of 300 tons of raw materials/day and cold storage
with a capacity of 4,600. tons come into operation. Officially put IDI's name on the

5
list of Vietnamese pangasius exporters. At the same time, the Company also
supported the Tourism Investment and Fisheries Development Joint Stock Company
(Trisedco) to start the construction of the phase 1 pangasius processing factory.

In 2011, started the project of Fish Oil Refining Factory with designed
capacity of 100 tons of crude fish oil/day and total investment capital of 300 billion
VND, usable area 10,600m2. Completing the pangasius farming area according to
Global G.A.P, A.S.C, B.A.P standards is nearly 6 hectares in An Thanh Trung
commune, Cho Moi district, An Giang province and 10 hectares in Tan Hoa
commune, Lai Vung district, Dong Thap province.

On October 10, 2015, IDI Company started the project of an aqua feed
processing factory with a designed capacity of 360,000 tons/year. The corporation
has boldly invested in the most modern technology to create the best products at low
prices.

2.1.3. Recent developments and recent performance

8000 100%

7000

6000 75%

5000

4000 50%

3000

2000 25%

1000

0 0%
2018 2019 2020

Total revenue net profit net profit margin

According to the figures in the financial statements, we can see total revenue of the
corporation increase in2019 but in the 2020, due to the impact of the covid pandemic and
market factors influence to import and export activities. The corporation's products are
difficult to export to foreign countries. This has great impact on revenue and net profit of
the corporation, which lead to net profit margin of the corporation decrease. The
corporation's revenue is high, net profit of the corporation is low, which means that the
corporation's operating costs is large. The corporation needs to find solutions to save
operating costs.
6
2.2.Situation of the profitability of I.D.I International Development &
Investment Corporation
2.2.1. Situation of profitability
Items Year Year Year Changes Changes
2020 2019 2018 2020- 2019-
2019 2018

Amount Amount Amount Amount Propotion Amount Propotion

(billion (billion (billion (billion % (billion
VND) VND) VND) VND) VND) %
6.373,7 7.744,4 6.342,7 (1370.7) 82,3% 1401,7 122,1%
Sale

6.366.8 7.731,9 6.341,2 (1365.1) 82,3% 1390,7 121,9%

Net sale

Accounting 121,1 352,9 717,9 (231.8) 34.3% (365) 49,2%

Profit
Before tax
Net profit 107,1 325,9 643,8 218.8 32.9% (317.9) 50,6%
After tax

(Source: extracted and calculated from Financial statement of I.D.I International

Development & Investment Corporation 2018-2020)
Table 2.1: Situation of profitability of I.D.I International Development & Investment
Corporation from 2018 to 2020

From table 2.1, we can see that corporation’s sales in 2019 increase sharply
increasing, by 22.1%, corresponding to 1401.7 billion VND, but in 2020 due to the impact
of the covid pandemic, import and export activities faced many difficulties. So in 2020 the
sales of the corporation decreased sharply, (decreased by 1370 billion VND), reaching only
82.3% of the revenue compared to 2019.
Due to the sharp drop in sales, the profit of the corporation was seriously affected. If
in 2018 the coporation's net profit after tax was VND 643.8 billion, but in 2019 the profit
was reduced by half. And by 2020, profit after tax is only 107.1 billion VND. We have seen
the profits of corporation continuously decrease sharply in the period 2018-2020.
We continue to analyze profitability ratio of the business to be more aware of the
coporation's profitability and find out the causes and propose solutions to improve the
corporation's operations.

7
2.2.2. The profitability ratios
Table 2.2: The profitability ratios of the I.D.I International Development &
Investment Corporation from 2018 to 2020
Items Unit Year Year Year Difference Difference
2020 2019 2018 2020-2019 2019-2018

amount % amount %
1.ROS % 1,68 4,21 10,15 (2,53) 39,9 (5,94) 41,48

Net Billion 107,1 325,9 643,9 (218,8) 32,86 (318) 50,61

profit VND
Net Billion 6.366.8 7.731,9 6.341,2 (1365) 82,3 1597,7 126,1
sales VND
2.BEP % 1,95 7,06 14,44 (5,11) 27,62 (7,38) 48,89

Average Billion 7.603,6 7.055,6 6.177,3 548 107,76 878,3 114,2

total VND
asset
148,2 498,3 891,9 (350,1) 29,74 (393,6) 55,87
EBIT Billion
VND
3.ROA % 1,41 4,61 10,42 (3,2) 30,59 (5,81) 44,24

Net Billion 107,1 325,9 643,9 (218,8) 32,86 (318) 50,61

Profit VND
Average Billion 7.603,6 7.055,6 6.177,3 548 107,76 878,3 114,2
total VND
asset
4.ROE % 3,64 11,73 26,36 (8,09) 31,03 (14,63) 44,5

Net Billion 107,1 325,9 643,9 (218,8) 32,86 (318) 50,61

profit VND
Average Billion 2945,03 2777,9 2.442,7 167,13 106,01 335,2 113,7
total VND
equity
(Source : calculated from Financial Statement of I.D.I International Development &
Investment Corporation from 2018 to 2020)
From table 2.2, we can see clearly see thethe fluctuations of each items in the
profitability ratios of the corporation:

8
 ROS (Profit margin) :The ROS value indicates the effectiveness of coporation's cost
control management, especially the cost management assessment (sales, business
management) create the largest revenue with the minimum cost. We see that in 2018, profit
margin reached 10.15%, indicating that the corporation is operating and has a high ability
to generate profits. But by 2019, ROS dropped sharply to only 4.21%, Meanwhile, the
revenue of the business increased but the profit of the business decreased compared to the
previous year. This shows that the operating costs of the business have increased, affecting
the profit margin on net sales of the coporation. By 2020, the ROS index decrease
significantly. That shows we need to improve the cost management and control of
coporation to increase the net profit of the business.
BEP (Basic earning power): The basic return of assets shows an average unit of
assets put into business brings several units of profit before taxes and interest. And
coporation that are given incentives or not for corporate income tax incentives, coporation
that use loans or don't use loans. We can see that in 2018, the basic profitability of assets
reached 14,44%, of which pre-tax profit reached VND 891.9 billion out of a total of VND
6.177,3 billion of assets. That shows that BEP is very large but the bep index dropped
continuously in the next 2 years. By 2020, the bep index will only reach 1.95%, and EBIT
is only 148.2 billion , only 29.74% in 2019.
ROA (return on asset): the ratios show application of assets in the business. In
2018, the corporation's ROA ratio reached 10,42%, of which net profit was 643.9 billion
VND and total asset was 6177,3 billionVND, which shows that the corporation is
effectively using its assets in the production process. But in 2019 and 2020 ROA
continuously decreased to 4,61% and 1.41%. The above ratio shows that the use of assets
of the coporation has not achieved good efficiency. We need to come up with a solution
to fix it quickly.
ROE (return on equity): the ratios shows the percentage of profit earned by
shareholders. In 2018, the shareholders of the coporation can earn a large profit, reaching
26,36%. But in 2020, this figure only reached half, and ROE continued to decline sharply
to only 3.64%. In which, total equity increased but net profit of the coporation decreased
sharply. That led to a rapid decrease in the value of ROE. Investors need to consider
carefully before making investment decisions to achieve the desired effect.
In summary, from the above analysis, it shows that the corporation's profitability
ratio still not really effective, the asset utilization efficiency is not reasonable,
there are still many shortcomings, businesses need to quickly find a solution. ways to
increase the corporation's profitability.

9
2.2.3. The du-pont analysis
Table 2.3. the du pont analysis of I.D.I International Development & Investment
Corporation from 2018 to 2020
Items Unit Year Year Year Difference Difference
2020 2019 2018 2020-2019 2019-2018

amount % amount %
Average Billion 7.603,6 7.055,6 6.177,3 548 107,76 878,3 114,2
total VND
asset

Average Billion 2945,03 2777,9 2.442,7 167,13 106,01 335,2 113,7

total VND
equity

Net profit Billion 107,1 325,9 643,9 (218,8) 32,86 (318) 50,61
VND

Net sales Billion 6.366,8 7.731,9 6.341,2 (1365) 82,3 1597,7 126,1
VND

ROS % 1,68 4,21 10,15 (2,53) 39,9 (5,94) 41,48

(Profit
margin)
148,2 498,3 891,9 (350,1) 29,74 (393,6) 55,87
EBIT Billion
VND
Total 0,83 1,09 1,02 (0,26) 76,15 0,07 106,9
asset
turnover
Equity 2,58 2,54 2,53 0,04 101,57 0,01 100,3
multiplier

ROA % 1,41 4,61 10,42 (3,2) 30,59 (5,81) 44,24

ROE % 3,64 11,73 26,36 (8,09) 31,03 (14,63) 44,5

(Source : calculated from Financial Statement of I.D.I International Development &

Investment Corporation from 2018 to 2020)

10
 1_ROA: The roa ratio indicates the efficiency of a corporation's investment on profits.
Through implementing the ROA formula, we see that this ratio is affected by 2 factors: Profit
margin (ROS) and Total Asset Turnover. Looking at the data sheet on the corporation's
performance, the corporation's profit margin (ROS) continuously decreased, in 2018, ROS
was 10.15% and this index continuously decreased in 2019 and 2020 are 4.21 and 1.68%,
respectively. This shows that the profit of the corporation has been seriously reduced.
Besides ROS, total asset turnover also directly affects Return on Assets Ratio, Asset
turnover ratio measures the value of a corporation 's sales or sales relative to its assets.
products of that corporation. The asset turnover ratio can be used as an indicator of how
efficiently a corporation is using its assets to generate revenue. In the analysis of the
corporation's operating value, the corporation's total asset turnover in the three years 2018 -
2020 is: 1.02: 1.09 and 0.83, respectively. The value of total asset turnover has fluctuated over
the years and will decrease significantly in 2020. Due to the small turnover ratio, the ability
to invest in assets of the corporation has not yet achieved high efficiency, so the corporation
necessary to improve and innovate management and investment methods so that the asset
turnover ratio reaches a greater value, thereby improving the rate of return on total assets.
In two factors that directly affect return on asset, profit margin has the biggest influence.
Therefore, in order to increase return on assets, businesses find effective ways to improve
their net profit and profit margin.
ROE: Through the formula for calculating ROE in dupont, we know that this indicator
includes three main factors. The first is the after-tax profit-to-sales ratio. This is a factor that
reflects the corporation 's level of revenue and expense management. Through the data table,
we can see that the profit after tax of the corporation decreased sharply. In 2018 net Profit
margin was 10.15, but this profit marginwas halved to 4.21% in 2019 and 1.68% in 2020.
asset turnover is a factor that reflects the level of exploitation and use corporate assets. In the
table above, Total Asset Turnover has a slight fluctuation, and in 2020 there is a sharp
decrease of 23.85% in value compared to 2019. this is a factor that directly affects ROE. The
ratio of assets to equity is a factor that reflects the level of capital management organization
for the operation of the corporation.
In addition to the effect of the ROS factor on the profitability of the corporation,
financial leverage also affects the rate of return on equity. In the course of corporation
operations, the corporation often uses debt to cover the shortfall in business capital, on the
one hand, in the hope of increasing the rate of return on equity. In the three years 2018-2020,
the equity ratio is stable in the range of 2.55. Due to the insignificant volatility, the effect of
economic leverage has little effect on return on equity. We can clearly see the effects of
financial leverage, profitability, and equity ratio on return on asset.
From the above analysis, we can see that in the two factors affecting ROA and the three
ROE factors is financial leverage, in which the profit margin has the biggest influence on the
value of ROA. Due to the large change of ROS over the years, the values of ROA and ROE
change directly. From there, it is possible to find out the cause of the decrease in net profit
while the corporation's revenue remains stable. Thus, it can be concluded that the
11
corporation's operating cost management is not really effective, business performance is not
good. Need to find solutions to improve the efficiency of the corporation's use of equity.
2.3.Assessment of the profitability of I.D.I International Development
&Investment Corporation
2.3.1. Results and advantages
As a result, in the period 2018-2020, although the corporation's profitability decreased,
its revenue from selling goods and providing services remained stable, despite being affected
by many market factors and import-export situation. Although the profit decreased compared
to the previous year, the business still achieved 107.1 billion in profit after tax.
Advantage: the average import tax rate for seafood from Vietnam is in the range of 0%-
5.2%. Meanwhile, major competitors, such as India and China, are subject to an average tax
rate of about 0%-10.7% and 0%-10.8%, respectively. Thus, compared to competitors,
Vietnam's seafood has tax advantages on import tariffs in major markets around the world.
2.3.2: Limitation.
The operating capacity of seafood processing corporations decreased sharply, the
products reached the harvest stage but encountered difficulties in the process of transportation
and consumption. Not only that, seafood export activities will face the risk of losing markets
or reducing market shares, including traditional markets. Because partner countries will be
afraid to import from other countries. outbreaks due to concerns about disease control in
processing plants and on food.
Cash flow from main business activities of seafood corporations is showing signs of a
strong decline. If the difficulties continue for a long time, it may affect many businesses with
weak cash flow and high debt. Besides, businesses use equity and assets not effective
2.3.3.:Cause
The objective cause of the decrease in corporate profitability is due to the impact of the
covid 19 pandemic. The epidemic situation is dangerous and complicated in many localities,
seriously affecting the socio-economic situation of the whole country. , which creates the risk
of breaking the chain of seafood production ,processing - export due to the impact of the
Covid-19 epidemic.
The subjective reasons: corporations have to face many pressures on increasing costs
and inventories. Corporations face pressure to ensure wages for employees to retain workers,
pressure to import raw materials through the use of waste products of the processing
industry....

12
Part 3: Suggested solutions
From the above limitation, some suggestions are made to contribute to the profitability
to IDI International Development & Investment Corporation
The company needs to effectively use equity and asset capital, and at the same time
apply financial measures to promote product consumption, limit capital appropriation such as
payment discounts, fines for violations of the Company. need to effectively use equity and
asset capital, the company needs to apply financial measures to promote product consumption
and limit misappropriated capital such as payment discount and penalty for overdue debt.
payment.
The company also needs to manage inventory well, minimize inventory costs, limit other
operating costs and other incurred costs through cost grouping to reduce costs and increase
profits. profits of the business, leading to an increase in the profitability of the business.
The company can sell or lease idle assets, and it can use the proceeds to reinvest in its
business to increase profits. Due to the large frozen warehouse, the company has the ability
to preserve inventory well, limiting risks during storage and preservation, thereby limiting
possible risks with inventory.
Regularly monitor the movements of the commodity market. From there, predict and
decide to timely adjust the input and quantity of goods in stock before market fluctuations.
This is a very important measure to preserve the capital of the company
It is necessary to increase the diversification of processed seafood products, in addition
to the traditional products of shrimp and fish, more attention should be paid to the
diversification of products to meet new consumption trends after the epidemic. Thereby
creating orientation for the company's activities in the future.
The company ensures the smooth harvest, circulation, transportation and export of
products and goods, including manufactured and processed products, and products that are
raw materials for production and processing, reducing operating costs. business performance,
increasing profit margins.Besides, the company can also increase profitability by increasing
the selling price of the product, because of the high costs incurred during the epidemic.
There are also a number of other measures to increase the revenue of the business and
improve the position of the company in the field, which are: The company ensures the quality
of input materials for seafood processing, complying with domestic and international food
safety standards.
Company continuing to invest in upgrading modern, advanced and synchronous
processing technology is absolutely necessary, contributing to improving the competitiveness
of the company's seafood products in terms of quality compared to other companies in the
region. national and international.
It is necessary to have a clear understanding of standards and target markets to meet
import and export standards, diversify markets, and minimize risks compared to exporting to
only one main market.

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 CONCLUSION
Each enterprise in the economy plays an important role as a link contributing to accelerating
the speed of industrialization and modernization. Therefore, sustainable development and
growth is what businesses aim for. Through the above studies, we can see the importance of
the Nam Việt 's profitability .The above analysis has outlined the theory of profitability ratio,
and applied the theory of profitability to IDI International Development & Investment
Corporation to analyze and evaluate the factors affecting the profitability of the company.
company through the index system. We understand profit after tax, profit before tax, asset
turnover index, .... Through the above indicators, we can assess that the performance of IDI
International Development & Investment Corporation is not really good. and lower
profitability. From there, we can draw out the advantages and disadvantages, and from there
give the necessary measures to improve the profitability ratio of the business.

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 REFERENCES
1. Pham Thi Van Anh, Diem Thi Thanh Hai (2018), Basis corporate finance, Finance
Publishing House.
2. Financial statement of IDI International Development & Investment Corporation in
the period 2018-2020.
3. https://cafef.vn/
APPENDICATES