THE UNIVERSITY OF DANANG

VNUK INSTITUTE FOR RESEARCH AND EXECUTIVE EDUCATION

FINANCIAL MANAGEMENT MODULE

ACADEMIC YEAR 2022-2023

INDIVIDUAL ASSIGNMENT

Name Vo Thi Minh Hue

Student ID 20010067

Lecturer MSc. Ngo Nguyen Bao Tran

December 2022
 I. Company background demonstration
1. Background and History
Masan Group Corporation is also called Masan Group Joint Stock Company which is one of the strong
business groups in the private economy of Vietnam. This organization was established in November
2004 with the name Masan Maritime Joint Stock Company. Until July 2015, the company changed its
name to Masan Group Joint Stock Company. Although it was established in 2004, it has been starting
to operate in 1996 because of the operation of major shareholders, subsidiaries, and predecessors
(Masan Group, n.d). Furthermore, there are many changes in the process of Masan’s growth,
especially in participating in many different fields. In recent years, one of the noticeable events of the
enterprise is that Vingroup which is a multi-industry corporation of Vietnam, Vingroup has swapped
all of its shares in Trade Development Joint Stock Company (VCM), received the option to receive
shares in the consolidated company, Crown X - a subsidiary of Masan Group Joint Stock Company
(shares/capital contribution and operations from VCM and Masan Consumer Holdings Co., Ltd. After
the swap), Vingroup will no longer manage or be the direct parent company of VCM. Thus, Masan
holds more than 80% of the share value, which means that Masan will own and operate the Vinmart
and Vinmart+ chains - one of the convenience store chains (PV, 2020).

Although Masan group does business in a variety of fields such as retailing (Winmart) and service
(Techcombank), the main business that this organization concentrates on is the manufacturing of
consumer goods that a number of Vietnamese buy and use every day such as Chin-su fish sauce,
Omachi noodles, and Vinh Hao water. Masan strives to best meet the daily necessities of every user.
Masan products have gained the trust and choice of more than 98% of Vietnamese families (Danh gia
nuoc mam, n.d).

(Vietnam Report, n.d)

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 With the economic growth of Vietnam, consumers and their needs are continuously increasing.
Besides, basic daily necessities, customers also need to be served many kinds of products and
services, outstanding experiences to individual preferences, and modern lifestyles. In anticipation of
this trend, Masan Group has built a consumer ecosystem that is associated with technology (Masan
Group, n.d).

There are many factors affecting the operation of the enterprise. In terms of the external
environment, many unexpected elements affect remarkably the operation of Masan such as unstable
policy or war. Besides, because Viet Nam is the major market consumption of Masan Group; thus,
the change in Vietnam's economy is likely to be a significant external factor affecting the company's
business operations. To be more detailed, a number of economic factors impact Masan’s operations
that the company should take into consideration such as commodity price levels in the market,
interest rates, monetary policy, exchange rates, or inflation levels. Moreover, social factors such as
lifestyle trends and consumer beliefs are also considered clearly to have suitable methods to create
products as well as marketing strategies. In addition, technology is one of the important elements
that can impact the operation of the enterprise, especially marketing operations which approach
target customers. Furthermore, Vietnam is an agricultural country; thus, natural disasters or the
spread of disease are factors impacting directly Vietnam’s economy, especially diminishing the
spending power of consumers as well as affecting overall growth. Additionally, the company should
consider legality in the chosen market. In fact, Masan used to have various scandals regarding the
violation of the Law on Environmental Protection (Bao Ngoc, 2017). Therefore, Masan should pay
more attention to the environment as well as the production of food, ensuring that the company
abides strictly by the Law of Food safety to avoid criticism from the public. Regarding the internal
environment, the company can be affected by human resources as are the people directly who
attend the production and business activities. Additionally, marketing projects, financial
management, and manufacturing operation are important internal factors that can impact the
business operation of Masan.

Currently, in the market, there are many competitors of Masan Group because the enterprise
attends different fields, but nonetheless, the major competitors of the company in food
manufacturing are Vinamilk and KiDo Group.

Because Masan Group focuses a lot on manufacturing convenient products that locals need and use
every single day, it is one of the biggest opportunities for the enterprise to achieve their target
customers and their goals. Furthermore, the merger of Masan Consumer Holdings and VCM is likely
to create a leading retail and consumer goods company in Vietnam because of holding a series of big
brands such as Vinmart, Vinmart+, Omachi, Kokomi, Chin su, Vinacafe Bien Hoa, Vinh Hao, or Nam
Ngu.

2. Strategic objectives and core values

3
 “Become the pride of Vietnam by improving the material and spiritual life of Vietnamese people.” is
the Vision of Masan Group (Masan Group, n.d). Although the overall vision of the company remains
unchanged, the vision of subsidiaries specializing in the manufacturing of consumer goods has
changed because of a change in senior personnel. To be more detailed, in February 2018, Soekhee
Won who was the old Deputy General Director of Masan Group and General Director of subsidiaries
Masan Consumer Holdings (MCH) and Masan Consumer (MSC), left his positions. Replacing the
position left by Mr.Soekhee Won, Mr. Truong Cong Thang took on the position of General Director of
Masan Consumer Holdings and Masan Consumer with the mission to lead MCH in its long-term
growth strategy. "He has set out a strategic vision for the next 5 years to build 12 strong brands, set a
target of 25% revenue growth per year with an after-tax profit margin set above 20%, and strive for
MCH to become one of the most preferred workplaces by 2022", Masan introduced the ambition of
Mr.Thang (Chu La, 2018).

The mission of Masan Group is to deliver its quality products and services to nearly 100 million
Vietnamese people while helping them pay less for their daily necessities (Masan Group, n.d).

In terms of Goals, the most important goal of the enterprise is that “We are constantly innovating to
anticipate consumer needs and catch industry trends” (Masan Group, n.d). Besides, during and after
Covid-19, the public tends to use technology increasingly; thus, Masan aims to transform into a
technology consumer enterprise in 2022 (Bao Linh, 2022).

About Strategic Priorities, in recent years, Masan has created and developed successful the strategy
“Point of Life” which is likely to serve and meet the needs of customers effectively (Ngoc Bich, 2022).
This leads to the concentration on developing the technology strategy of the company. Mr. Nguyen
Dang Quang - Chairman of the Board of Directors of Masan Group said: "At Masan, we believe that
technology will be the factor that transforms the consumer landscape and consider this as one of the
strategic pillars that need to be prioritized." (T.Tuyet, 2022).

Regarding Core values, there are four values of Masan Group people assets and competitive
resources, pioneering exploration with the desire to win, cooperation to develop and harmonization
of interests with partners, and national spirit (Masan Group, 2007).

3. Forms of business organization

A corporation is a type of business organization of Masan. When using this form of business
organization, Masan can get several advantages as well as disadvantages.

The benefits of a corporation considerably outweigh its disadvantages. One of the first benefits of a
corporation is that the legal status of the parent company as well as the subsidiary is independent.
This would mean that the subsidiaries can get opportunities to develop creativity and freedom.
Hence, the subsidiaries can deal with problems as fast as possible. Another benefit would be that
Masan can expand and dominate the market. To be more specific, Masan may do business in
different fields, this helps the company to boost its benefits. Another point in favor of a corporation

4
 is that the subsidiary’s position can be enhanced. Thanks to the strength and reputation of the
corporation and the parent company, the subsidiaries can get a chance to participate in economic
relations.
Despite these attractions, however, some drawbacks do exist. The greatest disadvantage of a
corporation is that the benefits of Masan can be impacted. The main reason for believing this is that
because of the independence and autonomy in production and business activities, the subsidiaries
are likely to compete with each other. This leads to affect the common interests of the whole
corporation. Another negative aspect of a corporation is that it is quite difficult to control all the
subsidiaries. This happens because different subsidiaries do different types of business fields.
Therefore, to manage a corporation effectively, it is required that managers and leads have to have
suitable methods and solutions to boost the company's growth.

In short, there are many advantages and disadvantages of the form of business organization of
Masan – corporation. In my opinion, on the balance, I contend that the benefits outweigh the
negative consequences.

4. Agency theory
In the company, when shareholders or owners are not control directly their business and rent
external managers to run the company, an agency relationship occurs.

However, for Masan, owners or shareholders manage and control directly their companies.

5. Structure of financial management function

There are many subsidiaries in Masan Group; thus, Masan's financial management department will
perform in different small companies and are under the control and management of Masan's parent
company.

5
 II. Company financial health analysis
1. Financial Statements

(finance.vietstock.vn)

As seen in the Income Statement of Masan Group Corporation, there are some changes in the period
of three years, from 2019 to 2021.

Overall, it is obvious that net revenue and gross profit increased significantly from 2019 to 2020, and
continued to rise in 2021. In 2020, the business results report showed the highlight that the
VinCommerce retail system (VCM), the management of VinMart supermarket chains and VinMart +
mini supermarkets which Masan bought own and manage in 2019, achieved a profit for the first time
of 16 million (Tuoi tre online, 2021). This helped the net revenue of Masan rise remarkably. By
contrast, there was a noticeable fluctuation in operating profit, profit after tax, and net profit during
the given time. This happens because of the significant growth in interest expenses; consolidating
Vincommerce's retail business (VCM) has a strong impact; because of the impact of the Covid-19

6
 epidemic on prices and sales volume, decreasing profit at Masan High-Tech Materials (MSR); due to
dropped ownership in Masan Consumer (MCH) leading to rising profit sharing for non-controlling
shareholders (Huy Le, 2021).

Looking at the Balance Sheet of Masan Group Corporation, we can see some changes occurring from
2019 to 2021.

Overall, while there was a slight growth in current assets and total assets in the period shown,
liabilities had a big jump in 2020 and decreased slightly in 2021. Masan Group has sharply increased
its financial debt to finance the increase in assets (Huy Le, 2021). Furthermore, owner’s equity had a
big fall, from 2019 to the next year. According to the financial report of Masan, Masan Group
purchased 14.8% of the equity of The CrownX JSC from a third party.

Key competitors
KIDO Group (KDC)

(finance.vietstock.vn)

7
 Vinamilk (VNM)

(finance.vietstock.vn)

2. Balance Sheet

There were several large changes in the Balance Sheet from 2019 to 2021.

8
 Year 2019 Year 2020 Year 2021

Balance Sheet 01/01-31/12 01/01-31/12 01/01-31/12

KT/HN KT/HN KT/HN

Current assets 24,261,892 29,760,685 43,630,176

Cash 6,800,528 7,721,442 22,304,822

Short-term financial
784,454 447,25 332,753
investment

Account receivale -
5,417,776 7,051,442 6,634,409
short-term

Long-term assets 73,035,359 85,975,877 82,463,295

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 Total assets 97,297,251 115,736,562 126,093,471

In terms of Assets, there was a steady upswing in Total assets from about 97,297 billion in 2019 to
approximately 126,093 billion in 2021.

Whereas, 2021 experienced a significant increase in Current assets by over 13,870 billion. To be more
detailed, Cash rose dramatically from under 7,000 billion in 2019 to about 22,304 billion in 2021,
especially Cash equivalent doubled Cash. Cash equivalents indicated term deposits with an original
maturity not exceeding 3 months from the transaction date at banks. Although Cash increased in
three years, Short-term financial investment declined by half because, in 2020 and 2021, the
company did not invest in Trading securities. Besides, while Account receivable from customers went
up steadily in three years, Prepayment from suppliers dropped sharply from about 1,500 billion in
2019 to 600 billion in 2020 but increased slightly to 800 billion. 2020 had Lending loans; thus,
Account receivable increased, and constantly grew in 2021. Other short-term increased but
plummeted by nearly 1 billion.

Fixed assets rose to nearly 50,000 billion in 2020 and fell slightly to 42,000 billion in 2021, this leads
to fluctuation in Long-term assets. The enterprise invested in technology, buildings and architectural
materials, machinery and equipment, and means of transport in 2020, but nonetheless, these things
were liquidated, written off, and reduced due to the discontinuance of MSN Feed and its subsidiaries
in 2021.

Year 2019 Year 2020 Year 2021

Balance Sheet
01/01-31/12 01/01-31/12 01/01-31/12

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 KT/HN KT/HN KT/HN
Liabilities 45,408,844 90,706,283 83,756,819

Short-term liabilities 30,492,191 38,874,663 34,547,836

long-term liabilities 14,916,653 51,831,620 49,208,983

Owner’s equity 51,888,407 25,030,279 42,336,652

Regarding Liabilities, there was a fluctuation in Liabilities, Short-term liabilities, and Long-term
liabilities over three years. 2020 witnessed a considerable climb in Short-term liabilities as well as
Long-term liabilities at nearly 38,874 billion and over 51,831 billion, respectively. However, both
Short-term liabilities and Long-term liabilities went down in 2021. To be more specific, Other short-
term borrowings and bonds rose considerably to 18,805 billion in 2020 and dropped to 22,545 billion
in 2021. A similar pattern could be seen in Long-term borrowings and bonds, increasing to 39,466
billion in 2020 and decreasing to 39,371 billion in 2021. This leads Liabilities to went up and down. In
2020, Liabilities increased nearly 2 times to 90,706 billion, mainly because of the growth in financial
loans, and secured and unsecured bonds, and it fell in 2021 also because of these things.

Year 2019 Year 2020 Year 2021

Balance Sheet 01/01-31/12 01/01-31/12 01/01-31/12
KT/HN KT/HN KT/HN
Owner’s equity 51,888,407 25,030,279 42,336,652

11
 About Owner’s equity, 2020 saw a significant decline in Owner’s equity of Masan by 51.7% (about
26,858 billion VND) to 25,030 billion VND. The notes to the financial report of Masan Group, the
enterprise purchased 14.8% of the equity of The CrownX JSC from a third party with a total amount
of nearly 23,692.2 billion copper in June and August 2020.

3. Income Statement

Year 2019 Year 2020 Year 2021

Income Statement 01/01-31/12 01/01-31/12 01/01-31/12

KT/HN KT/HN KT/HN

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 Net revenue 37,354,087 77,217,808 88,628,767

Gross profit 10,941,148 17,888,697 22,134,801

As can be seen in the graph, Net revenue in 2020 went up over 75,000 billion, which increased 106.7
percent compared to 2019's revenue. The upswing was driven by rising in the MML meat and MCH
consumer goods businesses, especially the consolidation of the newly merged businesses. The
business results report for the fourth quarter of 2020 showed that the management of the VinMart
supermarket chain, VinCommerce retail system (VCM), and VinMart + mini supermarket, had a profit
of 16 billion dongs for the first time.

In 2021, Masan's net revenue reached 88,629 billion, up 14.8% compared to 2020, mainly because of
the considerable growth in revenue from most business segments.
Net revenue growth leads to a rise in Gross profit.

In 2019, Operating profit was 6,012 billion, Profit after tax achieved 6,364 billion, and Net profit got
5,557 billion. However, in 2020, both Operating profit, Profit after tax, and Net profit dropped
dramatically to 1,195 billion, 1,395 billion, and 1,233 billion, respectively. The reasons for this
situation were that Interest expenses increased by 102% and Selling expenses rose by 230%
compared to 2019. However, Operating profit, Profit after tax, and Net profit went up considerably
to 11,273 billion, 10,101 billion, and 8,562 billion. Thanks to the fall in Interest expense and Selling
expenses, these three things got upswing.

Income Statement Year 2019 Year 2020 Year 2021

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 01/01-31/12 01/01-31/12 01/01-31/12

KT/HN KT/HN KT/HN

Operating profit  6,012,876 1,195,774 11,273,182

Profit after tax 6,364,615 1,395,013 10,101,381

Net profit  5,557,571 1,233,982 8,562,882

In 2019, Operating profit was 6,012 billion, Profit after tax achieved 6,364 billion, and Net profit got
5,557 billion. However, in 2020, both Operating profit, Profit after tax, and Net profit dropped
dramatically to 1,195 billion, 1,395 billion, and 1,233 billion, respectively. The reasons for this
situation were that Interest expenses increased by 102% and Selling expenses rose by 230%
compared to 2019. However, Operating profit, Profit after tax, and Net profit went up considerably
to 11,273 billion, 10,101 billion, and 8,562 billion. Thanks to the fall in Interest expense and Selling
expenses, these three things got upswing.

4. Financial Ratios
2019
Liquidity Current Ratio = Acid Test Ratio =
Ratios
Current Assets Current Assets−Inventories
Current Liabilities Current Liabilities

24,261,892 24,261,892−9,621,826
¿ ¿
30,492,191 30,492,191

= 0.7956 = 0.48

0.7956 dong of current assets covers every 1 0.48 dong of cash and receivables
dong of current liabilities. covers every 1 dong of current
liabilities.
Financial Debt-to-Equity Ratio = Debt-to-Total Assets Ratio =
Leverage
ratios Total debt Total debt
Owne r ' s equity Total assets

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 45,408,844 45,408,844
¿ ¿
51,888,407 97,297,251

= 0.875 = 0.4667

Borrowing 0.875 dong for every 1 dong 46% of total assets from debt
provided by shareholders to open the business. Or 54% of total assets from
shareholders.
Long-term-debt-to-Total Capitalization Ratio =

Long−term debt
Total capitalization

14,916,653
¿
14,916,653+51,888,407

= 0.2232

22% of total capitalization from long-term debt.

Coverage
ratios Interest Coverage Ratio =
EBIT
Interest Expense

6,012,876
¿
1,866,015

= 3.2

Earning operating income (EBIT) 3.2 times as much as for interest payment.
Activity The Receivable Turnover Ratio (RT) = Receivable Turnover in days (RTD) =
ratios
Net Sales 365
Receivables RT

37,354,087 365
¿ ¿
5,417,776 6.89

= 6.89 = 52.97

Having 6.89 times the receivables turn into Customers on average have 53 days
cash in a year. for their payable payment.
The Payable Turnover Ratio (PT) = Payable Turnover in days (PTD) =
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 Annual net credit sales 365
Payables PT

37,354,087 = 66.6
¿
5,635,395+770,004 +291,683+122,557

= 5.48
Having 5.48 times pays for payables in a year. Having on average 66.6 days for
payable payment.
Inventory Turnover Ratio (IT) = Inventory Turnover in days (ITD) =

COGS 365
Inventory ¿

26,412,939 365
¿ ¿
9,621,821 2.745

= 2.745 = 133

Having 2.745 times inventory is converted into Having on average 133 days to
receivables through sales in a year. convert inventory into receivables
through sales.
Total Asset Ratio (ROA) =
Net Sales
Total Assets

37,354,087
97,297,251

= 0.384

Every 1 dong invested in total assets creating 0.384 dong.

Profitability
ratios Profitability in Relation to Sales Profitability in Relation to Investment

The Gross Profit Margin Ratio = Return on Equity (ROE) =

Gross Profit Net Profit

Net Sales '
Owne r s equity

10,941,148 5,557,571
¿ ¿
37,354,087 51,888,407
16
 = 0.12%
= 0.293%
Every 100 dong earned from sales, the Every 100 dong of shareholders book
company achieved 0.293 dong gross profit. value investment, they can earn 0.12
dong.
Net Profit Margin Ratio =
Net Profit
Net Sales

5,557,571
¿
37,354,087

= 0.15%

Every 100 dong earned from sales, company achieved 0.15 dong net profit.

2020

Liquidity Current Ratio = Acid Test Ratio =

Ratios
Current Assets Current Assets−Inventories
Current Liabilities Current Liabilities

29,760,685 29,760,685 – 12,497,917

¿ ¿
38,874,663 38,874,663

= 0.765 = 0.444

0.765 dong of current assets covers every 1 dong 0.444 dong of cash and receivables
of current liabilities. covers every 1 dong of current
liabilities.
Financial Debt-to-Equity Ratio = Debt-to-Total Assets Ratio =
Leverage
ratios Total debt Total debt
'
Owne r s equity Total assets

90,706,283 90,706,283
¿ ¿
25,030,279 115,736,562

= 3.624 = 0.7837

Borrowing 3.624 dong for every 1 dong provided 78% of total assets from debt

17
 by shareholders to open the business. Or 22% of total assets from
shareholders.
Long-term-debt-to-Total Capitalization Ratio =

Long−term debt
Total capitalization

51 , 831 ,620
¿
(51 , 831, 620+25 , 030 , 279)

= 0.674

67% of total capitalization from long-term debt.

Coverage Interest Coverage Ratio =
ratios EBIT
Interest Expense

1,195,774
¿
3,770,283

= 0.32

Earning operating income (EBIT) 0.32 times as much as for interest payment.
Activity The Receivable Turnover Ratio (RT) = Receivable Turnover in days (RTD)
ratios =
Net Sales
Receivables 365
RT
77,217,808
¿
7,051,442 365
¿
10.95
= 10.95
= 33.3
Having 10.95 times the receivables turn into cash Customers on average have 33
in a year. days for their payable payment.
The Payable Turnover Ratio (PT) = Payable Turnover in days (PTD) =

Annual net credit sales 365

Payables PT

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 77,217,808 365
¿ ¿
6,832,649+ 941,302+239,074+2,472,126 7.36

= 7.36 = 49.6
Having 7.36 times pays for payables in a year. Having on average 49.6 days for
payable payment.
Inventory Turnover Ratio (IT) = Inventory Turnover in days (ITD) =

COGS 365
Inventory ¿

59,329,111 365
¿ ¿
12,497,917 4.75

= 4.75 = 77

Having 4.75 times inventory is converted into Having on average 77 days to

receivables through sales in a year. convert inventory into receivables
through sales.
Total Asset Ratio (ROA) =
Net Sales
Total Assets

77,217,808
¿
115,736,562

= 0.67

Every 1 dong invested in total assets creating 0.384 dong.

Profitability Profitability in Relation to Sales Profitability in Relation to
ratios Investment

The Gross Profit Margin Ratio = Return on Equity (ROE) =

Gross Profit Net Profit

Net Sales '
Owne r s equity

17,888,697 1,233,982
¿ ¿
77,217,808 25.030.279

= 0.232% = 0.056%

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 Every 100 dong earned from sales, the company Every 100 dong of shareholders
achieved 0.232 dong gross profit. book value investment, they can
earn 0.056 dong.
Net Profit Margin Ratio =

Net Profit
Net Sales

1,233,982
¿
77.217.808

= 0.018%

Every 100 dong earned from sales, company achieved 0.018 dong net profit.

2021

Liquidity Current Ratio = Acid Test Ratio =

Ratios
Current Assets Current Assets−Inventories
Current Liabilities Current Liabilities

43,630,176 43,630,176 – 12,813,391

¿ ¿
34,547,819 34,547,819

= 1.26 = 0.89
1.26 dong of current assets covers every 1 dong 0.89 dong of cash and receivables
of current liabilities. covers every 1 dong of current
liabilities.
Financial Debt-to-Equity Ratio = Debt-to-Total Assets Ratio =
Leverage
ratios Total debt Total debt
Owne r ' s equity Total assets

83,756,819 83,756,819
¿ ¿
42,336,652 126,093,471

= 1.98 = 0.66
Borrowing 1.98 dong for every 1 dong provided 66% of total assets from debt
by shareholders to open the business. Or 34% of total assets from
shareholders.
Long-term-debt-to-Total Capitalization Ratio =

20
 Long−term debt
Total capitalization

49,208,983
¿
49,208,983+42,336,652

= 0.54
54% of total capitalization from long-term debt.
Coverage Interest Coverage Ratio =
ratios EBIT
Interest Expense

11,273,182
¿
4,669,426

= 2.4
Earning operating income (EBIT) 2.4 times as much as for interest payment.
Activity The Receivable Turnover Ratio (RT) = Receivable Turnover in days (RTD) =
ratios
Net Sales 365
Receivables RT

88,628,767 365
¿ ¿
6,634,409 13.36

= 13.36 = 27.3
Having 10.95 times the receivables turn into cash Customers on average have 33 days
in a year. for their payable payment.
The Payable Turnover Ratio (PT) = Payable Turnover in days (PTD) =

Annual net credit sales 365

Payables PT

88,628,767 365
¿ ¿
7,970,287+801,899+222,205+1,513,366 8.43

= 8.43 = 43.3
Having 7.36 times pays for payables in a year. Having on average 49.6 days for
payable payment.
Inventory Turnover Ratio (IT) = Inventory Turnover in days (ITD) =

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 COGS 365
Inventory ¿

66,493,966 365
¿ ¿
12,813,391 5.2

= 5.2 = 70.2
Having 4.75 times inventory is converted into Having on average 77 days to
receivables through sales in a year. convert inventory into receivables
through sales.
Total Asset Ratio (ROA) =
Net Sales
Total Assets

88,628,767
¿
126,093,471

= 0.7
Every 1 dong invested in total assets creating 0.384 dong.
Profitability Profitability in Relation to Sales Profitability in Relation to
ratios Investment
The Gross Profit Margin Ratio = Return on Equity (ROE) =

Gross Profit Net Profit

Net Sales '
Owne r s equity

22,134,801 8,562,882
¿ ¿
88,628,767 42,336,652
= 0.25% = 0.2%
Every 100 dong earned from sales, the company Every 100 dong of shareholders
achieved 0.25 dong gross profit. book value investment, they can
earn 0.2 dong.
Net Profit Margin Ratio =

Net Profit
Net Sales

8,562,882
¿
88,628,767

= 0.097%
Every 100 dong earned from sales, company achieved 0.097 dong net profit.

22
 In terms of Liquidity ratios, 2021 experienced significant growth in the Current ratio, which increased
about 1.5 times compared to the figure in 2020 and 2019. Besides, a similar pattern could be seen in
the Acid test ratio which doubled the figure in 2020 and 2019. It means that the money in Current
assets covering every 1 dong of Current liabilities changed positively. This happened because Masan
Group has sharply increased financial debt in 2020; according to Nguoi Dong Hanh, “High debt causes
interest expenses to increase sharply, which is a big "burden" on corporate profits” (Huy Le, 2021).
However, in 2021, Masan invested in Current assets, and simultaneously Current liabilities also
decreased.

In 2019 and 2020, Short-term assets are smaller than Short-term liabilities, which proves that Masan
does not maintain the balance between Short-term assets and Short-term liabilities because there
are signs that businesses have used a part of Short-term capital in Long-term assets. On the other
hand, in 2021, enterprises maintain a balanced relationship between Short-term assets and Short-
term liabilities, using Short-term debt for the right purpose because Current assets are larger than
Current liabilities.

23
 There was a remarkable fluctuation in Financial Leverage ratios. 2020 saw a dramatic increase in
Debt-to-Equity ratio which was three times as much as this ratio in 2019. After one year, Debt-to-
Equity ratio declined a half. Total assets at the end of the year reached 115,737 billion VND, due to
the consolidation of VinCommerce. To finance the increase in assets, Masan Group has sharply
increased its financial debt to more than VND 62,000 billion.

The situation demonstrated that Masan borrowed a lot to boost its Total Assets. However, in 2021,
the debt could be managed but it is still a threat to the company in the long term.

24
 In terms of Activity Ratio, I will evaluate Operating cycle and Cash cycle of Masan Group through
three years. In 2019, Operating cycle was 185,97 days and Cash cycle was 119,37 days. In 2020,
Operating cycle was 110,3 days and Cash cycle was 60,7 days. In 2021, Operating cycle was 97,5 days
and Cash cycle was 54,2 days.

In 2021, Operating cycle of Masan is shorter than that of the company in 2020 and 2019, which
means that the company operated effectively and a relatively short Operating cycle showed
efficiently managing receivables and inventory.

In 2019, the debt collection period reached 6.89 rounds, equivalent to 52.97 days. Debt collection
period reached 10.95 rounds, corresponding to 33.3 days in 2020. In 2021, the debt collection period
reached 13.36 rounds, corresponding to 27.3 days. This shows that the collection of debt from
customers is getting better and better, and the company is effective in debt collection.

To be more detailed, in terms of Debt payment period, in 2019 reached 5.48 rounds, corresponding
to 66.6 days, while in 2020 reached 7.36 rounds, corresponding to 49.6 days, and in 2012 the debt
payment period increased to 8.43 rounds, corresponding to 43.3 days. This shows that in 2021 and
2020 the company pays attention to paying customers' debts faster than in 2019. We see that the
cash collection period is faster than the debt payment period, which shows that the company is

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 taking advantage of customers' capital, but the prolonged use of capital will likely affect purchasing
management. company in the near future.

In 2020, the company increased debt to invest in The CrownX JSC from a third party, but due to the
decrease in year-end profit, the ROA decreased.

On the other hand, the company's equity decreased, but the profit reduction was larger, so the
impact on the ROE index decreased: in 2019, ROE reached 12% compared to 2020 and decreased to
5.6%.

Thus, we see that in 2020, the company's new projects have not contributed much to the profit, so it
affects the profitability ratios to decrease. However, in 2021, the economy recovered and the
projects came into operation and contributed to generating profits. According to Nhan Tam (Nha Dau
Tu, 2021), he said, “The group has carried out a series of other transactions affecting hundreds of
billions of dong of undistributed profit after tax, such as: Increase ownership in Masan MeatLife,
increase ownership in Masan Consumer Goods Company (MSC), increased ownership in Vinacafé
Bien Hoa Joint Stock Company,....”.

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 Key competitor

(finance.vietstock.vn)

For ROA, all companies have this index positive. Although this shows that companies are managing
assets effectively, Vinamilk has a much larger ROA than Masan during 3 years. This means that
Masan is not using assets as well as Vinamilk .

For ROE, all companies have this index positive. Although this shows that the company is managing
equity well. However, Masan had a lower ROE than Vinamilk during 3 years. This means that Masan
company's use of equity is not as good as Vinamilk.

5. Financial Health and Recommendations

Overall, in 2020, the financial health of the company is very unstable because although the revenue
increases very high, it has too much debt, even more debt than assets, so it can be said that 2020 is
the year the company will face many difficulties. best. This will also lead to attracting few investors as
well as difficulty to sell shares. However, Masan's outstanding investment can be said to be a long-
term investment with the foresight of leaders and managers. By 2022, the company has some control
over its interest rates, although debt is still heavy. That can be considered the first turning point after
the company invested a huge amount of money. "High return often comes with high risk", however, I
think Masan has calculated carefully and took a high risk first and will get a high return in the
following years.
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 Seeing an increase in revenue and profit in 2021, I think this business is on the right track. However,
the company has a lot of debt, and a lot of risks, I think the company should try to propose and
create methods and projects to improve debt and risk.

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References
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Group, M. (n.d.). Masan Group. Retrieved from https://www.masangroup.com/vi/about-us/masan-history.html 
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noi-quay-tro-lai-2018030207092248.htm 
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