Table of contents

Part 1: Brief introduction about PNJ company...........................................................................5

Part 2: Analysis of financial statements of PNJ Joint Stock Company.....................................6
A: Read 4 types of financial statements....................................................................................6
2.1 Consolidated balance sheet..............................................................................................6
2.1.1 Read the balance sheet...............................................................................................8
2.1.2 Comparison and comments........................................................................................8
2.1.2.1 Asset structure......................................................................................................8
2.1.2.2 Capital structure.................................................................................................11
2.2 Consolidated business results statement......................................................................12
2.2.1 Read the business performance report....................................................................13
2.2.2 Comparison and comments......................................................................................14
2.2.2.1 business results...................................................................................................14
2.2.2.2 business results from other activities.................................................................15
2.3 Cash flow statement.......................................................................................................18
2.3.1 Read the cash flow statement...................................................................................19
2.3.2 Comparison and comments......................................................................................19
B Analyze financial indicators.................................................................................................20
2.1 Liquidity Ratios..............................................................................................................20
2.1.1 Current Ratio=(Current Assets)/(current Liabilities).............................................20
2.1.2 Quick ratio= (Current assets−Inventories)/(Current liabilities)............................20
2.2 Asset Management Ratios..............................................................................................21
2.2.1 Accounts Receivable turnover=(Net credit sales)/(accounts receivable)...............21
2.2.2 Inventory turnover ratio=(net sales)/inventories....................................................22
2.2.3 Fixed assets turnover ratio=(net sales)/(net fixed assets).......................................22
2.2.4 Total asset turnover ratio=(net sales)/(total assets).................................................23
 2.3 Debt Management Ratio................................................................................................23
2.3.1 Total debt to total capital=(Total liabilities)/(total liabilities+equity).....................23
2.3.2 Times interest earned ratio=EBIT/(interest expense).............................................24
2.3.3 Long-term debt to equity=(long term liabitlities)/(long term liabilities+equity)....24
2.4 Profitability Ratios.........................................................................................................25
2.4.1 Profit margin=(net income)/(net sales)...................................................................25
2.4.2 Gross margin ratio=(gross profit)/(net sales)..........................................................25
2.4.3 Operating margin ratio=EBIT/(net sales)...............................................................26
2.4.4 Return on total assets=(net income)/(total assets)..................................................27
2.4.5 Return on common equity=(net income)/(common equity)....................................27
2.4.6 Return on invested capital=(earning after tax)/(total invested capital).................27
2.4.7 Basic earning power ratio= (operating income or EBIT)/(total assets).................28
Part 3: Findings and recommendations.....................................................................................28
3.1 Improve liquidity:...............................................................................................................28
3.2 Reduce debt levels...............................................................................................................29
3.3 Increase revenue:................................................................................................................29
3.4 Reduce cost of goods sold:.................................................................................................29
3.5 Reduce operating costs:.....................................................................................................30
References......................................................................................................................................30

List of tables
Table 1 Asset structure of Phu Nhuan Jewelry Joint Stock Company..................................8
Table 2 Short-term asset structure of Phu Nhuan Jewelry Joint Stock Company................9
Table 3 Long-term asset structure of Phu Nhuan Jewelry Joint Stock Company.............ten
Table 4 Structure of liabilities and equity of Phu Nhuan Jewelry Joint Stock Company...11
Table 5 Short-term and long-term debt structure of Phu Nhuan Jewelry Joint Stock
Company.............................................................................................................................11
Table 6 Results of business and financial activities...........................................................14
Table 7 Business results from other activities....................................................................15
Table 8 short-term assets and current assets.......................................................................20
Table 9 Quick liquidity ratio, assets, inventory, short-term debt........................................20
Table 10 accounts receivable turnover turnover net accounts receivable..........................21
Table 11 index of inventory turnover, weekly sales and inventory....................................22
Table 12 index of fixed asset turnover, net revenue, fixed assets.......................................22
Table 13 total asset turnover coefficient, net revenue and assets.......................................23
Table 14 total debt to total capital, equity..........................................................................23
Table 15 interest rate earned, interest expense...................................................................24
Table 16 long-term debt to total equity, long-term debt.....................................................24
Table 17 profit margin, net income and net revenue..........................................................25
Table 18 gross margin ratio, gross profit and net sales......................................................25
Table 19 Operating margin ratio and net sales...................................................................26
Table 20 returns on total assets and net income.................................................................26
Table 21 return on common equity, net income.................................................................27
Table 22 return on invested capital, earnings after tax and total invested capital..............27
Table 23 Basic earning power ratio, EBIT and total asserts...............................................28
 Part 1: Brief introduction about PNJ company
PNJ is one of the leading jewelry corporations in Vietnam. Established in 1988, PNJ has
experienced strong growth and has a wide presence nationwide.

 Company name: PHU NHUAN JEWELRY JOINT STOCK COMPANY (PNJ)

 Chairwoman of the Board of Directors: Ms. Cao Thi Ngoc Dung
 Head office: 170E Phan Dang Luu, Ward 3, Phu Nhuan District, Ho Chi Minh City,
Vietnam
 PNJ products include: gold, silver, diamonds, gemstones and fashion accessories.
 Mission: PNJ is constantly innovating to bring exquisite products with real value to honor
the beauty of people and life.
 Vision and goals To become Asia's leading company in jewelry manufacturing and
retailing products that honor beauty, reaching out to the world.
 Tagline: Faith and style.
 Organizational chart:

- Board of Directors: includes the president and vice presidents

- Functional departments such as Accounting Department, Finance Department, Sales
Department, Marketing Department, Human Resources Department

 Core values:
1. Integrity for longevity
2. Stick to your goals consistently
3. Pay attention to mutual development
4. Dedicated to customers
5. Pioneering to make a difference
Part 2: Analysis of financial statements of PNJ Joint Stock Company
A: Read 4 types of financial statements
2.1 Consolidated balance sheet
2.1.1 Read the balance sheet
- The balance sheet presents the following contents:
+ Total assets: 10,619,026,547,112 VND (2021)
13,337,124,649,246 VND (2022)
+ liabilities: 4,606,382,566,869 VND (2021)
4,893,029,994,396 VND (2022)
+ Equity: 6,012,633,980,253 VND (2021)
8,444,094,654,850 VND (2022)
Total assets = Liabilities + owner's equity
Year 2021: 4,606,382,566.86+6,012,633,980,253= 10,619,016,547,122 VND
Year 2022: 4,893,029,994.39+8,444,094,654,850= 13,337,124,469,246 VND
2.1.2 Comparison and comments
2.1.2.1 Asset structure
Table 1 Asset structure of Phu Nhuan Jewelry Joint Stock Company

2021 (VND) Year 2022 (VND)

SHORT-TERM ASSETS 9,292,192,238,421 11,966,357,761,798

 LONG-TERM ASSETS 1,326,824,308,701 1,370,766,887,448

Looking at the table, we see that short-term assets in 2 years are 7-8 times higher than
long-term assets, accounting for more than 80% of total assets while long-term assets in 2 years
fluctuated insignificantly.
a. Short-term assets
Table 2 Short-term asset structure of Phu Nhuan Jewelry Joint Stock Company

Year 2021(VND) Year 2022 (VND)

I, SHORT-TERM ASSETS 9,292,192,238,421 11,966,357,761,798

Money 355.454.838.957 879.548.130.711

Short-term receivables 111.969.758.488 300.880.402.245

Inventory 10.506.054.932.284 8,754,741,712,359

Other current assets 70.025.928.617 79.874.296.558

The total value of short-term assets in 2022 increased by 28.79% compared to 2021.
PNJ's short-term asset structure includes cash, short-term financial investments, short-
term receivables, inventory and other short-term assets, of which inventory has the largest
proportion. The increase or decrease in inventory will certainly greatly affect the company's
short-term assets because the proportion of inventory accounts for more than 87%.
In 2022, PNJ has more cash because it wants to ensure liquidity and commitment to
customers, thereby further improving its reputable image in the market. However, this increase in
the amount of cash results in an increase in the cost of cash reserves, congesting the company's
capital. Therefore, PNJ should consider the market economic situation to have reasonable cash
reserve plans, avoiding sharp decreases or sudden increases that will affect short-term solvency.
Short-term receivables increased by about 288 billion VND, equivalent to 168.72%.
Inventories in 2021 are more than 8.7 trillion VND and after 1 year this number has
increased and reached more than 10.5 trillion VND. PNJ's inventory is mainly goods such as
gold, silver, gemstones, etc. It gradually increases because the company continues to accumulate
more input materials, increasing gold prices, causing the value of raw materials to increase. Gold
in storage also increased even though the quantity did not change much.
 In addition, PNJ's inventory is mainly finished products (jewelry) - an item with high
liquidity, which can help the company ensure capital turnover and limit the impact on quick
payment ability. and instant payment capabilities. The need to reserve additional inventory is also
to ensure there is enough goods to serve the shopping needs of Tet and New Year holidays in
Vietnam. Therefore, the amount of inventory is not too big a financial burden for PNJ. The
increase in inventory means that PNJ's business is going smoothly and developing well in the
period 2021 - 2022.
b. Long-term assets
Table 3 Long-term asset structure of Phu Nhuan Jewelry Joint Stock Company

Year 2022 (VND) 2021 (VND)

II/ LONG-TERM ASSETS 1,370,766,887,448 1,326,824,308,701

1. Long-term receivables 93.956.493.011 84.131.506.164

2. Fixed assets 882.432.821.075 909.985.491.983

3. Long-term unfinished assets 30,826,629,189 30,795,369,850

4. Other long-term assets 363.550.944.173 301.911.940.704

Total long-term assets in the period from 2021-2022 will not fluctuate significantly and
fluctuate between 1,326 - 1,370 billion.
Long-term receivables tend to increase slightly, about 11.68%.
Due to the specific nature of trading and processing jewelry products, fixed assets account
for a large proportion of long-term assets with a proportion of over 68%.
Fixed assets in 2022 will decrease by more than 27 billion VND, equivalent to a decrease
of 3.03% compared to 2021.
Long-term unfinished assets are one of the criteria used to synthesize and reflect the value
of unfinished production and business costs of an enterprise or long-term construction costs that
are still unfinished right at the moment. reporting time and this figure in the period 2021 - 2022
increases from 30.7 billion VND to 30.8 billion VND.
Long-term financial investments do not change.
Long-term assets increased slightly, about 43 billion VND.
 Total assets in 2022 increase compared to 2021 by 25.6%, showing that PNJ is constantly
expanding production and business, which has brought corresponding revenue, so it can be said
that this is a company with development potential. tall and worthy of early consideration.
2.1.2.2 Capital structure
Table 4 Structure of liabilities and equity of Phu Nhuan Jewelry Joint Stock Company

2021 (VND) Year 2022 (VND)

I/ LIABILITIES 4,606,382,566,869 4,893,029,994,396

II/ OWNER'S CAPITAL 6,012,633,980,253 8,444,094,654,850

We see that equity and liabilities both tend to increase and equity accounts for a higher
proportion. This proves that the company's financial reputation in the market is high, financial
risk is low, and financial autonomy is good because the company uses internal capital, less
dependent on external capital.
a. Liabilities must pay
Table 5 Short-term and long-term debt structure of Phu Nhuan Jewelry Joint Stock
Company

Year 2022 (VND) 2021 (VND)

I/ LIABILITIES 4,893,029,994,396 4,606,382,566,869

1. Short-term debt 4,883,064,421,396 4,563,002,409,508

2. Long-term debt 9,965,573,000 43.380.157.361

Liabilities in 2022 increase by more than 287 billion, equivalent to 6.22%. Unlike
manufacturing enterprises that borrow money, PNJ borrows directly in gold for processing and
business, including personal loans (gold shop owners) with interest rates ranging from 5- 8.5%.
Long-term debt accounts for a very relative proportion of liabilities, which will decrease
by 4.35 times in 2022.
b. Equity
Equity in 2022 increases by more than 2,431 billion, equivalent to an increase of more
than 40.44% compared to 2021. PNJ mainly uses owners' investment capital and after-tax profits
to reinvest. To invest in scale expansion projects, PNJ has mobilized capital from shareholders by
issuing shares. With stable revenue and profit growth over the years, PNJ easily completed the
capital mobilization, not only that, but also sold issued shares at higher than par value, causing
capital shares to increase from capital surplus. share.
=> Total capital increased from 10,619 billion VND to 13,337 billion VND. This shows
that PNJ is increasingly expanding its scale to increase profits, with no signs of contraction.
Conclusion: In the two years 2021 and 2022, the scale of assets and capital of the
enterprise will expand due to the company's policy of increasing inventory and investing in fixed
assets to expand the scale of operations and increase the market. shares, and at the same time use
a lot of debt to serve working capital and highly liquid inventory. Despite using a lot of debt,
businesses are still financially independent, ensuring the turnover of inventory, receivables,
payables and cash circulation cycle.
2.2 Consolidated business results statement
 2.2.1 Read the business performance report
The business's profit after income tax is 1,029,042,165,645 VND (2021) and
1,810,691,843,397 VND (2022). The business is profitable.
Current corporate income tax expense is 259,673,455,974 VND (2021) and
521,061,271,124 VND (2022).
Determine results from production activities and main business activities:
Preliminary assessment: Net profit from business activities increases from 1306 billion
VND to 2337 billion VND in the period 2021 - 2022.
2.2.2 Comparison and comments
2.2.2.1 business results
Table 6 Results of business and financial activities

Targets 2021 (VND) 2022 (VND)

Revenue from financial activities 16,326,114,795 54,036,974,170

Financial expenses 118.252.734.395 141.471.203.463

Net profit from financial activities 1,306,897,354,354 2,337,466,664,419

The table of financial revenue, financial expenses and net profit from financial activities
of Phu Nhuan Jewelry Joint Stock Company (PNJ) shows some notable points as follows:
 Revenue from financial activities increased sharply, from VND 16,326 billion to VND
54,036 billion, an increase of 230%. This growth is mainly due to PNJ recording profits from
selling its investment in Saigon Jewelry Joint Stock Company - SJC.
Financial expenses increased, from VND 118,252 billion to VND 141,471 billion, an
increase of 20%. This growth is mainly due to increased interest rates, because PNJ had to
borrow capital to invest in business expansion.
Net profit from financial activities increased sharply, from VND 1,306 billion to VND
2,337 billion, an increase of 860%. This growth is mainly due to a strong increase in financial
revenue, compensating for increased financial costs.
Revenue from financial activities:
PNJ's financial revenue in 2022 increased sharply, mainly due to PNJ recording profits
from selling its investment in Saigon Jewelry Joint Stock Company - SJC.
In 2021, PNJ bought 36.1% of SJC's shares at a price of 11,200 VND/share. By December
2022, PNJ sold all of these shares for 16,500 VND/share. Profit from selling this investment is
4,300 VND/share, equivalent to 1,580 billion VND.
In addition, PNJ's financial revenue also increased due to profits from gold bar trading
activities, profits from bond trading activities and profits from other investments.
Financial expenses:
PNJ's financial expenses in 2022 increase, mainly due to increased loan interest.
PNJ's total loan balance in 2022 increases from VND 3,000 billion to VND 4,000 billion.
PNJ's average loan interest rate in 2022 is 9.5%/year. Therefore, PNJ's interest expense increased
from VND 10,800 billion to VND 13,600 billion.
In addition, PNJ's financial costs also increased due to insurance costs, financial
consulting costs and other costs.
Net profit from financial activities:
PNJ's net profit from financial activities in 2022 increased sharply, mainly due to a sharp
increase in financial revenue, offsetting increased financial costs.
PNJ's net profit from financial activities reached VND 2,337 billion, accounting for 28%
of the company's profit after tax.
Conclude:
The table of financial revenue, financial expenses and net profit from financial activities
of PNJ shows that the company has positive financial activities in 2022. Financial revenue
increased sharply, mainly due to PNJ recorded a profit from the sale of its investment in SJC.
Financial costs increased due to increased interest rates. Net profit from financial activities
increased sharply, mainly due to a sharp increase in financial revenue, compensating for
increased financial costs.
2.2.2.2 business results from other activities
Table 7 Business results from other activities

Targets 2021 2022

Income 8,861,354,013 8,582,642,521

Other costs 36,528,186,336 33,721,752,227

Other profits 27,666,832,323 25.139.109.706

Income growth
PNJ's income in 2022 decreased by 2.9% compared to 2021. This decrease is mainly due
to a decrease in revenue from sales and service provision, from VND 8,861.35 billion to VND
8,582.64 billion.
Other cost reductions:
PNJ's other expenses in 2022 decreased by 7.7% compared to 2021. This decrease is
mainly due to a reduction in financial costs, from VND 11,217.35 billion to VND 9,999.99
billion.
Other profit growth:
PNJ's other profit in 2022 decreased by 8.6% compared to 2021. This decrease is mainly
due to a decrease in profit from financial activities, from VND 12,998.12 billion to VND
11,239.12 billion.
Cause analysis:
The decrease in PNJ's income in 2022 may be due to the following reasons
The gold, silver, and gemstone markets in 2022 will have many fluctuations, gold prices
will decrease compared to 2021.
Competition in the gold, silver, and gemstone industries is increasingly fierce.
Other cost reductions of PNJ in 2022 may be due to the following reasons:
The company has taken measures to save financial costs, such as reducing loan interest
rates.
The company has more effective cost management measures.
 Another decrease in PNJ's profits in 2022 may be due to the following reasons:
The stock market in 2022 will have many fluctuations, stock prices will decrease
compared to 2021.
The company has reduced investment in financial activities.
Conclude
In general, PNJ's financial situation in 2022 remains stable, but there are some indicators
that decrease compared to 2021. The company needs to take measures to improve its business
situation in 2023.
Comment:
Preliminary assessment: Other business results of both years have losses, in 2022 there is
an increase of 2.53 billion in losses. The reason is that expenses increased more than income.
Revenue analysis
Revenue from sales and service provision in 2022 increased by 73.35% compared to
2021, equivalent to an amount of 14,475 billion VND. Thereby, we can see that the business has
operated effectively and has made changes for the better.
Financial activity revenue in 2022 compared to 2021 increased very high by 230.98%,
equivalent to an amount of 2,328 billion. It shows that PNJ also invests in the financial sector and
also brings huge profits to the business. In terms of value, this profit is quite large, showing that
in 2022 short-term financial investments have brought quite good profits for businesses.
Considering other income, 2022 decreased by 3.15% compared to 2021. This is very
worrying.
Cost analysis
Business management costs in 2022 compared to 2021 increased by 34.31%, equivalent
to 172 billion VND.
Other costs of businesses in 2022 compared to 2021 will have a clear decrease of 7.68%.
Shows that businesses have reduced investment costs in other industries.
In general, PNJ enterprises in 2022 compared to 2021 have seen growth. In 2021, there
was a covid pandemic, but then the enterprise, after stabilizing equitization, invested and
expanded the market, doing some business. other industries, so PNJ has an extremely reasonable
and effective business policy.
The proportion of cost price in 2021 and 2022 is 80.81% and 81.70%, respectively. It is
said that in 100 VND of revenue, there is 80.81 VND of cost price in 2021, and 81.70 VND of
cost price in 2022. Cost price has gradually increased over the years and revenue has also
increased.
The proportion of financial revenue through 2 years 2021 and 2022 is 0.08% and 0.16%,
respectively. It is said that in 100 VND of revenue, there will be 0.08 VND of revenue from
financial activities in 2021, and increase to 0.16 VND in 2022. It is easy to see, although financial
activities are not significant compared to revenue, but because this is a large-scale enterprise, the
revenue from financial activities in terms of value is not small.
The proportion of financial costs is greater than the proportion of revenue from financial
activities. Specifically, in 2021, the proportion of financial costs is 0.6% and 0.41% in 2022. The
important thing in financial costs is interest expenses. And the ratio of interest expenses to
revenue through 2 years 2021 and 2022 is 0.53% and 0.28%, respectively. That means that for
every 100 VND in revenue, 0.53 VND (in 2021) and 0.28 VND (in 2022) are interest expenses.
It's easy to see, PNJ's interest expense compared to revenue is insignificant.
=> PNJ has very significant capital resources.
The ratio of selling costs to revenue in 2021 and 2022 is 8.55% and 8.27%, respectively.
That means for every 100 VND of revenue, PNJ must pay 8.55 VND in 2021 and 8.27 VND in
2022 for its selling costs. Thus, it shows that this company's sales team operates effectively.
Corporate management expenses accounted for the proportion of 2.54% and 1.97% in
2021 and 2021, respectively. Let us know that in 100 VND of net revenue, there are 2.54 VND
(in 2021) and 1.97 VND (in 2022) in business management costs. Because this is a large-scale
business, management costs are certainly high, but compared to revenue, they only account for
less than 2.6%, meaning the company is organizing business management effectively. fruit.
Corporate management costs in 2022 are lower than 2021, showing that PNJ is effectively
applying management policies.
2.3 Cash flow statement
 2.3.1 Read the cash flow statement
Based on the CTLCTT, we see:
Net cash flow of business activities in 2021 is the company's expenses (722,367,321,513)
VND. However, in 2022, the company reached a positive figure of 100,581,206,696 VND. This
shows that: during the epidemic, the company's business activities were severely affected, but
afterward the company had more effective solutions.
Cash flow from investment activities in both years is negative, especially in 2022. This
shows that the company always carries out many of its investment activities during this period. It
can be seen that in 2022 the cash flow from investment activities is (370,667,278,626) VND, an
increase of 669.54% compared to 2021 (48,167,290,625) VND.
Net cash flow of financial activities in both years is positive, in 2022 with
791,675,546,288 VND, an increase of 87,920,966,254 VND compared to the year
2021 is 703,754,580,034 VND. This shows that the company has increased the amount of
dividends paid compared to 2021. This also proves that the company is succeeding in investing
its capital resources to implement large investment projects in the year. next.
2.3.2 Comparison and comments
Pre-tax profit of 2021 is smaller than 2022.
Depreciation of fixed assets: This item in 2021 and 2022 has a small difference because
the annual depreciation rate is almost the same.
Net flows from business activities have a huge difference. In 2021, this number will reach
a negative number while in 2022 it will reach a positive threshold of 100.58 billion VND.
2021
Cash inflow is smaller than cash outflow in 2021.
Cash at the beginning of the year was 422.2 billion VND. The effect of changes in foreign
currency exchange rates on money is nil.
Cash and cash equivalents at the end of the year were VND 355.5 billion.
Cash inflow is greater than cash outflow in 2022.
Cash and cash equivalents at the beginning of the year were 355.5 billion VND.
The impact of exchange rate changes on cash and cash equivalents was VND 2.5 billion.
Cash and cash equivalents at the end of the year were VND 879.5 billion.
 B Analyze financial indicators
2.1 Liquidity Ratios
2.1.1 Current Ratio=(Current Assets)/(current Liabilities)
Table 8 short-term assets and current assets

2021 (VND) 2022 (VND)

Current assets 9,292,192,238,421 11,966,357,761,798

Short-term liabilities 4,563,002,409,508 4,893,029,994,396

Current ratio 2.0364 2.4456

A higher current ratio is generally considered to be better, as it indicates that the company
has more assets than it needs to cover its short-term liabilities. the current ratio has increased
from 2.0364 in 2021 to 2.4456 in 2022. This means that the company has improved its ability to
pay its short-term debts over the past year. But the industry index is 2.79. The company's current
ratio in 2022 (2.4456) is lower than the industry index. This means that the company's ability to
pay off its short-term liabilities is not as good as the average company in its industry.
This could be due to a number of factors, such as an increase in sales, a decrease in costs,
or a reduction in short-term debt. However, it is important to note that a high current ratio is not
always a good thing. A ratio that is too high could indicate that the company is not using its assets
efficiently.

2.1.2 Quick ratio= (Current assets−Inventories)/(Current liabilities)

Table 9 Quick liquidity ratio, assets, inventory, short-term debt

2021 (VND) 2022 (VND)

Current assets 9,292,192,238,421 11,966,357,761,798

Inventories 8,754,741,712,359 10,506,054,932,284

Current liabilities 4,606,382,566,869 4,893,029,994,396

Quick ratio 0.117 0.3

 The quick ratio, also known as the acid-test ratio, the company's quick ratio is 0.3 in 2022.
This means that the company has VND 0.30 of current assets for every VND 1 of current
liabilities.
The industry index is 1.58. This means that the average company in the industry has a
quick ratio of 1.58.
The company's quick ratio is lower than the industry index. This could be a cause for
concern, as it suggests that the company may have difficulty meeting its short-term obligations.
However, it is important to note that the quick ratio is just one measure of a company's financial
health. There are other factors to consider, such as the company's debt-to-equity ratio and its cash
flow.
2.2 Asset Management Ratios
2.2.1 Accounts Receivable turnover=(Net credit sales)/(accounts receivable)
Average collection period=(356 days)/(Accounts Receivable turnover ratio)
Table 10 accounts receivable turnover turnover net accounts receivable

2021 (VND) 2022 (VND)

Net credit sales 19,547,058,364,83 33,876,454,559,153

4

Accounts receivable 111,969,758,488 300,880,402,254

Accounts Receivable 174.57 112.59

turnover

Average collection 2 3.2

period

Accounts receivable turnover: 174.57 in 2021 and 112.59 in 2022. This is a decrease of
61.98.
Average collection period: 2 days in 2021 and 3.2 days in 2022. This is an increase of 1.2
days.
The company's net credit sales and accounts receivable increased significantly from 2021
to 2022. However, its accounts receivable turnover decreased and its average collection period
increased. This suggests that the company is taking longer to collect its receivables. The company
may have grown rapidly in 2022, and it may be taking some time to adjust its credit and
collection processes
 2.2.2 Inventory turnover ratio=(net sales)/inventories
Days sales in inventory turnover ratio = (365 days)/(Inventory turnover ratio)
Table 11 index of inventory turnover, weekly sales and inventory

2021 (VND) 2022 (VND)

The
Net sales 19,547,058,364,83 33,876,454,559,153
4

inventories 8,754,741,712,359 10,506,054,932,284

Inventory turnover 2.23 3.22

ratio

Days sales in 163.67 113.35

inventory turnover
ratio
company's inventory turnover ratio increased from 2.23 in 2021 to 3.22 in 2022. This means that
the company is selling its inventory more quickly in 2022 than it was in 2021. This could be due
to a number of factors, such as increased sales, improved inventory management practices, or a
change in the mix of products that the company sells. The company's DSI decreased from 163.67
in 2021 to 113.35 in 2022. This means that the company is holding onto its inventory for a shorter
period of time in 2022 than it was in 2021. This is consistent with the increase in the inventory
turnover ratio.
Overall, the company is improving its inventory management. The company is selling its
inventory more quickly and is holding onto it for a shorter period of time. This is a positive trend
that can lead to increased profitability and efficiency.
2.2.3 Fixed assets turnover ratio=(net sales)/(net fixed assets)
Table 12 index of fixed asset turnover, net revenue, fixed assets

2021 (VND) 2022 (VND)

Net sales 19,547,058,364,83 33,876,454,559,153

 4

Net fixed assets 909,985,491,983 882,432,821,075

Fixed assets turnover 21.48 38.39

ratio

The company's fixed assets turnover ratio increased from 21.48 in 2021 to 38.39 in 2022
The increase in the fixed assets turnover ratio suggests that the company is using its fixed
assets more efficiently in 2022 than it was in 2021. This could be due to a number of factors, such
as increased production, improved sales, or a more efficient use of the company's facilities.
2.2.4 Total asset turnover ratio=(net sales)/(total assets)
Table 13 total asset turnover coefficient, net revenue and assets

2021 (VND) 2022 (VND)

Net sales 19,547,058,364,83 33,876,454,559,153

4

Total assets 10,619,016,547,12 13,337,124,649,246

2

Total asset turnover 1.84 2.54

ratio

The company's net sales increased from VND 19,547,058,364 in 2021 to VND
33,876,454,559 in 2022. This is an increase of 73%. The company's total assets also increased
from VND 10,619,016,547 in 2021 to VND 13,337,124,649 in 2022. This is an increase of 25%.
The company's total asset turnover ratio increased from 1.84 in 2021 to 2.54 in 2022. This means
that the company is generating more sales per dollar of assets than it was in 2021. This could be
due to a number of factors, such as as increased efficiency, improved product mix, or higher
prices. Overall, the company is growing and that it is using its assets more efficiently. This is a
positive sign for the company's future.
The company's net sales growth is outpacing its total assets growth. This suggests that the
company is becoming more efficient at using its assets to generate sales.
2.3 Debt Management Ratio
2.3.1 Total debt to total capital=(Total liabilities)/(total liabilities+equity)
Table 14 total debt to total capital, equity
 2021 (VND) 2022 (VND)

Total liabilities 4,606,382,566,869 4,893,029,994,396

Equity 6,012,633,980,253 8,444,094,654,850

Total debt to total 0.766 0.579

capital

Debt to capital ratio: The debt-to-capital ratio has decreased from 0.766 in 2021 to 0.579
in 2022. This is a positive trend, as it indicates that the company is becoming less reliant on debt
to its financial operations.
Overall, the company's financial position has improved in 2022. The company's liabilities
have increased, but its equity has increased at a much faster rate. This has led to a decrease in the
debt-to-capital ratio, which is a positive sign.
2.3.2 Times interest earned ratio=EBIT/(interest expense)
Table 15 interest rate earned, interest expense

2021 (VND) 2022 (VND)

EBIT 1,279,230,522,031 2,312,327,554,713

Interest expense 104,380,274,160 94,421,152,974

Times interest earned 12.25 24.47

ratio

The company's TIE ratio increased from 12.25 in 2021 to 24.47 in 2022. This means that
the company's EBIT was able to cover its interest expenses 12.25 times in 2021 and 24.47 times
in 2022. This is a positive trend , as it shows that the company is becoming more financially
stable. But the companies in capital-intensive industries, such as utilities, tend to have higher TIE
ratios than companies in less capital-intensive industries, such as retail.
2.3.3 Long-term debt to equity=(long term liabitlities)/(long term liabilities+equity)
Table 16 long-term debt to total equity, long-term debt

2021 (VND) 2022 (VND)

Long term liabilities 43,380,157,361 9,965,573,000

Equity 6,012,633,980,253 8,444,094,654,850

 Long-term debt to 0.71% 0.12%
equity

The ratio has decreased significantly from 0.71% in 2021 to 0.12% in 2022. This means
that the company has less debt relative to its equity in 2022 than it did in 2021. This is a positive
development, as it indicates that the company is less financial leveraged and has a stronger
balance sheet. The decrease in the company's long-term debt to equity ratio is generally good
news for investors. It indicates that the company is less risky and has a stronger financial
position. However, it is important to note that this is just one ratio, and it should not be
considered in isolation. Investors should also consider other factors, such as the company's
profitability and growth prospects, before making an investment decision.
2.4 Profitability Ratios
2.4.1 Profit margin=(net income)/(net sales)
Table 17 profit margin, net income and net revenue

2021 (VND) 2022 (VND)

Net income 1,029,042,165,645 1,810,691,843,397

Net sales 19,547,058,364,83 33,876,454,559,153

4

Profit margin 0.0526 0.0534

This means that the company makes 5.26 cents for every dollar of net sales in 2021 and
5.34 cents for every dollar of net sales in 2022. The company's profit margin is higher than the
industry index of -0.057. The profit margin has also increased from 0.0526 in 2021 to 0.0534 in
2022. This suggests that the company is able to generate more profit from its sales than its
competitors in the industry. The increase in the company's net income and net sales from 2021 to
2022 is a positive trend. However, the increase in the company's profit margin is small. This
could be due to a number of factors, such as an increase in the company's cost of goods sold or
operating expenses. Overall, the image shows that the company is in a good financial position.
However, it is important to monitor the company's profit margin in the future to ensure that it
remains stable or increases.
2.4.2 Gross margin ratio=(gross profit)/(net sales)
Table 18 gross margin ratio, gross profit and net sales
 2021 (VND) 2022 (VND)

Gross profit 3,598,298,230,376 5,927,106,534,772

Net sales 19,547,058,364,83 33,876,454,559,153

4

Gross margin ratio 0.1841 0.175

In 2021, the gross margin ratio was 0.1841. In 2022, the gross margin ratio was 0.175.
Gross profit did not change to much, For every dollar of net sales, 0.18 dollars of gross profit is
retained in 2021 and 0.17 dollars is retained in 2022, A higher gross margin ratio is generally
considered to be better, as it indicates that the company is able to generate more profit from its
sales. The industry index is 0.1331, is lower than the gross margin ratio for both 2021 and 2022.
The gross margin ratio is a measure of profitability, so this suggests that the company is more
profitable than the average company in its industry.
The decrease in the gross margin ratio from 2021 to 2022 could be due to a number of
factors, such as an increase in the cost of goods sold, a decrease in the selling price of the
company's products or services, or a decrease in the efficiency of the company's operations.
2.4.3 Operating margin ratio=EBIT/(net sales)
Table 19 Operating margin ratio and net sales

2021 (VND) 2022 (VND)

EBIT 1,279,230,522,031 2,312,327,554,713

Net sales 19,547,058,364,834 33,876,454,559,153

Operating margin ratio 0.0654 0.0683

The company's operating margin is higher than the industry index of -3.48%. The
operating margin ratio is 6.54% in 2021 and 6.83% in 2022. This suggests that the company is
able to generate more profit from its sales than the average company in its industry.
The increase in the company's operating margin ratio is a positive sign, as it suggests that
the company is becoming more profitable. However, it is important to note that the operating
margin ratio is just one measure of a company's profitability. Other factors, such as the company's
debt load and its growth rate, should also be considered when evaluating a company's financial
health.
2.4.4 Return on total assets=(net income)/(total assets)
 Table 20 returns on total assets and net income

2021 (VND) 2022 (VND)

Net income 1,029,042,165,645 1,810,691,843,397

Total assets 10,619,016,547,12 13,337,124,649,246

2

Return on total assets 0.0969 0.1358

The return on total assets (ROA) for the company in 2021 is 0.0969, which is higher than
the industry index of 0.0635. This means that the company is generating more profit per dollar of
assets than the average company in its industry. The ROA for 2022 is 0.1358, which is even
higher than the 2021 ROA. This suggests that the company is improving its efficiency at
generating profits from its assets. This is a positive trend, as it indicates that the company is using
its assets more efficiently to generate profits.
2.4.5 Return on common equity=(net income)/(common equity)
Table 21 return on common equity, net income

2021 (VND) 2022 (VND)

Net income 1,029,042,165,645 1,810,691,843,397

Common equity 6,012,633,980,253 8,444,094,654,850

Return on common 0.1711 0.2144

equity

In 2021, the ROE was 0.1711, and in 2022, it increased to 0.2144, and is higher than the
industry index of 0.1444. This means that the company is generating a higher return on its
shareholders' equity than the average company in its industry. This represents an improvement in
profitability.
Overall, the company experienced significant growth in both net income and common
equity between 2021 and 2022. The ROE also improved during this period, indicating that the
company is becoming more efficient at generating profits from its shareholders' equity. equity.
2.4.6 Return on invested capital=(earning after tax)/(total invested capital)
Table 22 return on invested capital, earnings after tax and total invested capital

2021 (VND) 2022 (VND)

Earnings after taxes 1,029,042,165,645 1,810,691,843,397

Total invested capital 6,012,633,980,253 8,444,094,654,850

Return on invested 0.1711 0.2144

capital

Performance improved in 2022 compared to 2021. Its earnings after tax, total invested
capital, and ROI all increased. This suggests that the company is using its capital efficiently and
generating a good return on its investments.The industry index is 0.097.
The company's ROIC is higher than the industry index in both 2021 and 2022. This means
that the company is generating a higher return on its invested capital than the average company in
its industry. This is a good thing, as it suggests that the company is being managed effectively.
2.4.7 Basic earning power ratio= (operating income or EBIT)/(total assets)
Table 23 Basic earning power ratio, EBIT and total asserts

2021 (VND) 2022 (VND)

EBIT 1,279,230,522,031 2,312,327,554,713

Total assets 10,619,016,547,122 13,337,124,649,246

Basic earning power 0.1205 0.1734

ratio

The company's BEP increased from 0.1205 in 2021 to 0.1734 in 2022. This means that the
company is generating more earnings per dollar of assets than it was in the previous year. This is
a positive trend, as it indicates that the company is becoming more efficient at using its assets to
generate profits. This could be due to a number of factors, such as improved cost controls,
increased sales, or more efficient production processes. Another possibility is that the company
has increased its asset turnover. This means that the company is generating more sales from its
existing assets. This could be due to factors such as increased demand for the company's products
or services, or a better product mix.
Part 3: Findings and recommendations
3.1 Improve liquidity:
PNJ's short-term debt is higher than its short-term assets. This means the company may
have difficulty meeting its short-term obligations if cash flow is disrupted. Management can
improve the company's liquidity by taking the following steps:
 - Collect receivables faster. PNJ can implement a more aggressive debt collection policy
to collect receivables faster. This will free up cash that can be used to pay off short-term debt.
- Reduce inventory levels. PNJ can reduce inventory levels to improve cash flow. This can
be done by closely monitoring inventory levels and ordering only the amount of inventory
needed.
3.2 Reduce debt levels
PNJ's long-term debt is also relatively high. This means the company may have difficulty
meeting its long-term obligations if revenue or cash flow declines. Management can reduce the
company's debt levels by taking the following steps:
- Refinance debt with lower interest rates. PNJ can refinance its debt at a lower interest
rate to save money on interest payments.
- Pay off debt faster. PNJ can repay debt faster by increasing the debt repayment amount.
3.3 Increase revenue:
Expand into new markets. The company may consider expanding into new geographic
markets or targeting new customer segments. For example, the company can start exporting its
products to new countries or target businesses that have never used its products before.
Develop new products or services. The company can develop new products or services
that meet the needs of existing customers or attract new customers. For example, the company
may develop a new product line that is more affordable or offers new features.
Increase sales to existing customers. Companies can increase sales to existing customers
by offering discounts, loyalty programs, or other incentives. The company can also invest in
customer relationship management (CRM) software to help the company track customer
interactions and identify opportunities to increase sales.
3.4 Reduce cost of goods sold:
Negotiate better prices with suppliers. The company can negotiate better prices with
suppliers by increasing order quantities or offering to pay in full in advance. The company may
also consider sourcing raw materials from different suppliers to get the best possible price.
Improve production efficiency. Companies can improve production efficiency by
investing in new equipment, training employees on best practices, or streamlining production
processes.
Reduce waste. Companies can reduce waste by using scrap materials, recycling, and
implementing other waste reduction initiatives.
3.5 Reduce operating costs:
 Streamline operations. Companies can streamline operations by eliminating unnecessary
tasks, automating processes, and combining departments.
Eliminate unnecessary costs. Companies can eliminate unnecessary costs by reviewing
their budgets and identifying areas where spending can be cut. For example, the company can
cancel unused subscriptions or negotiate lower rates for its office space.
Negotiate a better price with the seller. The company can negotiate better rates with
service providers such as insurance, transportation, and marketing.
PNJ is a highly profitable company with a strong financial position. The company's
revenue and profits are both increasing, and operating expenses are growing at a slower rate than
revenue.
The company is in a good financial position with more assets than liabilities and positive
net income. However, the company's current ratio and debt-to-equity ratio are relatively high.

References