UNIVERSITY OF TECHNOLOGY AND EDUCATION
FACULTY FOR HIGH QUALITY TRAINING
--------
COURSES: FINANCIAL MANAGEMENT
TOPIC: FINANCIAL STATEMENTS OF VIETJET AIR JOINT STOCK
COMPANY
LECTURERS: NGUYỄN THỊ LAN ANH
STUDENTS
STUDENT ID
HÀ THỊ NGỌC ANH
:
19124002
PHẠM THỊ NGỌC GIÀU
:
19124067
TRẦN THỊ NGỌC TRÀ
:
19124004
NGUYỄN THỊ TÚ VY
:
19124003
HO CHI MINH 2021
UNIVERSITY OF TECHNOLOGY AND EDUCATION
FACULTY FOR HIGH QUALITY TRAINING
-------JOB BOOKING SCHEDULE
Major: Industrial Management Course: 2019 School year 2021 – 2022
Group: 5
Class: 19124CLA
NO.
NAME
STUDENT’S
ID
MISSION
COMPLETION
RATE
1
HÀ THỊ NGỌC ANH
19124002
BALANCE
SHEET
100%
2
PHẠM THỊ NGỌC GIÀU
19124067
INCOME
SHEET
100%
3
TRẦN THỊ NGỌC TRÀ
19124004
CASH FLOW
STATEMENT
100%
4
NGUYỄN THỊ TÚ VY
19124003
FINANCIAL
INDICATORS
100%
2
TABLE OF CONTENTS
PREAMBLE ........................................................................................................................ 1
CHAPTER 1 OVERVIEW OF VIETJET AVIATION JOINT STOCK COMPANY ....... 2
1.1 Overview of Vietjet Aviation Joint Stock Company ..................................................... 2
1.2 Line of business ............................................................................................................. 3
CHAPTER 2 ANALYSIS OF FINANCIAL STATEMENTS OF VIETJET AVIATION
JOINT STOCK COMPANY ............................................................................................... 4
2.1 Data source for analyzing financial statements of Vietjet Aviation Joint Stock
Company .............................................................................................................................. 4
2.2 Analysis of balance sheet: ............................................................................................. 5
2.2.1 Analysis of the situation of asset fluctuations: ........................................................... 5
2.2.1.1 Horizontal analysis: ................................................................................................. 5
2.2.1.2 Vertical analysis: ................................................................................................... 26
2.2 Analysis the situation of capital fluctuations: ............................................................. 29
2.2.2.1 Horizontal analysis: ............................................................................................... 31
2.2.2.2 Vertical analysis: ................................................................................................... 40
2.3 Analysis of Income sheet: ........................................................................................... 45
2.3.1 Horizontal analysis: .................................................................................................. 45
2.3.1.1 Gross Revenues from Sales and Services Rendered: ............................................ 48
2.3.1.2 Net profit from operating activities: ...................................................................... 52
2.3.1.3 Results from other activities: ................................................................................. 54
2.3.1.4 Earnings before interest and taxes: ........................................................................ 57
2.3.1.5 Profits After Enterprise Income Tax: .................................................................... 58
2.3.2 Vertical analysis: ...................................................................................................... 61
3
2.4 Analysis Statements of Cash Flows: ........................................................................... 64
2.4.1 Net Profits from Operating Activities ...................................................................... 65
2.4.1 Cash Flow from Investing Activities:....................................................................... 70
2.4.2.1 Horizontal analysis: ............................................................................................... 70
2.4.2.2 Vertical analysis: ................................................................................................... 72
2.4.3 Cash Flow from Financing Activities....................................................................... 75
2.5 Analysis of financial ratios: ......................................................................................... 77
2.5.1 Analysis Liquidity Ratio: ......................................................................................... 78
2.5.1.1 Liquidity ratio: ....................................................................................................... 78
2.5.1.2 Analysis quick ratios: ............................................................................................ 82
2.5.1.3. Analysis Cash Ratio: ............................................................................................ 84
2.5.2 Analysis Solvency: ................................................................................................... 86
2.5.2.1 Total-Debt-to-Total-Assets Ratio: ......................................................................... 86
2.5.2.2 Debt to equity ratio: ............................................................................................... 88
2.5.2.3 Times interest earned Ratio: .................................................................................. 90
2.5.3 Analysis activity ratios: ............................................................................................ 91
2.5.3.1 Asset turnover ratio: .............................................................................................. 91
2.5.3.2. Fixed asset turnover:........................................................................................... 92
2.5.3.2. Inventory Turnover:............................................................................................ 93
2.5.4 Profitability index analysis: ...................................................................................... 94
2.5.4.1 Return on Sales (ROSA) ..................................................................................... 96
2.5.4.2 Return on Assets (ROAA): .................................................................................. 99
2.5.4.3
Return on Equity (ROEA): ............................................................................... 101
2.5.4.4 Return on capital employed (ROCE): ................................................................. 104
4
2.5.4.5 Correlation analysis of P/E and EPS: .................................................................. 107
CHAPTER 3 COMMENTS AND SUGGESTIONS ...................................................... 114
3.1 Comment on financial situation: ............................................................................... 114
3.1.1 Comments on the property: .................................................................................... 114
3.1.2 Comments on capital sources: ................................................................................ 114
3.1.3 Comments on business activities: ........................................................................... 114
3.1.4 Comments on solvency: ......................................................................................... 115
3.2 Recommendations: .................................................................................................... 115
3.2.1 Recommendations on the company's financial position: ....................................... 115
CONCLUSION ............................................................................................................... 118
REFERENCES ................................................................................................................ 119
APPENDIX 1 .................................................................................................................. 120
APPENDIX 2 .................................................................................................................. 121
APPENDIX 3 .................................................................................................................. 123
5
TABLE LIST
Table 2.1 Balance sheet ....................................................................................................... 6
Table of vertical asset movements from the first quarter of 2019 to the second quarter of
2021 ................................................................................................................................... 26
Table 2.2.2.1 The situation of capital fluctuations from quarter I/2019 to quarter II/2021
........................................................................................................................................... 30
Table: Movement of vertical capital from the first quarter of 20129 to the second quarter
of 2021 ............................................................................................................................... 40
Table of data analyzing business results from the first quarter of 2019 to the second
quarter of 2021 ................................................................................................................... 45
Table Business Ratio Analysis .......................................................................................... 51
Table “Results from other activities from quarter I/2019 to quarter II/2021” .................. 54
Table Vertical analysis of business results from the first quarter of 2019 to the second
quarter of 2021 ................................................................................................................... 61
Table 2.9 Summary of cash flow statement for the period from the first quarter of 2019 to
the second quarter of 2021 ................................................................................................ 64
Table 2.10 Cash Flow Ratio Analysis: .............................................................................. 66
Table 2.11 Cash Flow Analysis ......................................................................................... 69
Table Component breakdown of net cash flows from vertical investing .......................... 74
Table 2.13 Analysis of financial indicators ....................................................................... 77
Table 2.14 Liquidity Ratio of companies in the same industry ......................................... 80
Table 2.15: quick ratios off the capabilities of peers ........................................................ 82
Table 2.16 Cash Ratio off the capabilities of peers ........................................................... 84
Table of debt to equity ratio compared to peers in the same industry............................... 89
Table Profitability Index .................................................................................................... 95
6
Table Return on Sales (ROS) compared to companies in the same industry .................... 97
Table Return on total assets ROA compared to companies in the same industry ........... 100
Table Return on Equity ROE compared to peers in the same industry ........................... 103
Table EPS ratio compared to other companies in the same industry .............................. 112
7
LIST OF CHARTS
Graph 2.1. Changes in assets of Vietjet from the first quarter of 2019 to the second
quarter of 2021 ..................................................................................................................... 8
Graph 2.11 "Changes of total capital over the quarters in the period of 2019 - 2021" ..... 31
Graph 2.12 “Changes in liabilities over the quarters for the period of 2019 - 2021” ....... 32
Graph 2.13 "Changes of short-term debt over the quarters in the period of 2019 - 2021" 34
Graph 2.14 “Changes of long-term liabilities over the quarters 2019 - 2021” ................. 36
Graph 2.16 “The situation of vertical capital fluctuations in the period from the first
quarter of 2019 to the second quarter of 2021” ................................................................. 42
Graph: The situation in gross profit between quarters in the period of 2019-2021 .......... 48
Graph “The fluctuation of net profit between quarters in the period of 2019-2021”........ 52
Graph earnings before interest and taxes ........................................................................... 57
Graph Profits After Enterprise Income Tax: ..................................................................... 58
Graph Net Profits from Operating Activities .................................................................... 65
Graph “Cash flow fluctuations from investment activities in the first quarter of 2019 to
the second quarter of 2021” ............................................................................................... 70
Graph of Cash Flow Analysis from quarter I/2019 to quarter II/2021 .............................. 72
Graph 2.22 Cash flow structure from the first quarter of 2019 to the second quarter of
2021 ................................................................................................................................... 75
Graph 2.23 Changes in liquidity ratio, quick ratio, and instant ratio in the period of 2019 2021 of Vietjet ................................................................................................................... 78
Graph 2.24: Changes Liquidity Ratio between 2019 and 2021 of Vietjet and Vietnam
Airlines .............................................................................................................................. 81
Graph 2.25 Changes in quick ratio 2019 – 2021 of Vietjet and Vietnam Airlines ........... 83
8
Graph 2.26 Fluctuations in cash Ratio 2019 – 2021 of Vietjet and Vietnam Airlines ...... 85
Graph "The volatility of long-term debt solvency ratios for the period of 2019 - 2021" . 86
Table "Total-Debt-to-Total-Assets Ratio of companies in the same industry" ................. 87
Graph Total-Debt-to-Total-Assets Ratio of companies in the same industry ................... 87
Graph Debt-to-equity ratio compared to companies in the same industry ........................ 90
Graph Times interest earned Ratio compared to companies in the same industry ........... 90
Graph of Vietjet's asset turnover from the first quarter of 2019 to the second quarter of
2021 ................................................................................................................................... 91
Graph The chart of fixed asset turnover of Vietjet from quarter I/2019 to quarter II/2021
........................................................................................................................................... 92
Graph The chart of Vietjet's inventory turnover from the first quarter of 2019 to the
second quarter of 2021 ...................................................................................................... 93
Graph Profitability Index ................................................................................................... 96
Graph Return on Sales (ROS) compared to companies in the same industry ................... 98
Graph Return on total assets ROA compared to companies in the same industry .......... 101
Graph P / E system number compared with companies in the same industry ................ 111
Graph EPS ratio compared to other companies in the same industry ............................. 113
9
LIST OF ACRONYMS
ROS
Return On Sales
ROA
Return on total assets
ROE
Return On Equity
ROC
Rate of Change
PE
Price to Earning Ratio
EPS
Earning Per Share
VJC
Vietjet Air
HVN
Vietnam Airline
QOQ
Quarter on Quarter
YOY
Year On Year
10
PREAMBLE
The business's financial situation is one of the issues that are always of concern not only to
business owners, managers but also to bankers, lenders, and investors. That is why regular
financial analysis is very important. The calculation and financial analysis will show the
asset situation, the situation and results of production and business activities, the cash flow
situation, and the movement of capital use of the enterprise. From there, businesses will
grasp their strengths and weaknesses, and based on that business managers can identify the
causes, make suggestions to overcome weaknesses as well as promote the weaknesses. the
strength that your business has.
For a business or any business organization, big or small, it is imperative to understand the
business performance and financial situation of your business or organization. To do this,
one of the first things to do is analyze the financial statements.
Financial statement analysis not only provides information to those interested in the
business such as managers, investors, etc., but it also evaluates the inherent potentials,
capabilities, and strengths in the business. production and business of enterprises as well
as the problems that enterprises are facing. Through that, it will be easier for businesses to
determine effective decisions and steps for future development. Therefore, analyzing
financial statements is an important tool that any business or business organization should
have.
Currently, in the context of the outbreak of the Covid-19 epidemic in many parts of the
world and even in Vietnam, this has severely affected the business activities of the aviation
industry in general and Vietjet Air Joint Stock Company. in particular. Therefore, the writer
chooses the topic "Analysis of financial statements of "Vietjet Air Joint Stock Company"
to analyze the group's report.
1
CHAPTER 1 OVERVIEW OF VIETJET AVIATION JOINT STOCK COMPANY
1.1 Overview of Vietjet Aviation Joint Stock Company
Vietjet Air is the first airline in Vietnam operating under the new generation airline model,
low cost and providing a variety of services for customers to choose from. The airline not
only transports air but also provides the consumer needs of goods and services to customers
through advanced e-commerce technology applications.
Vietjet is an official member of the International Air Transport Association (IATA) with
the IOSA Operational Safety Certificate. Safety Culture is an important part of Vietjet's
corporate culture, which is thoroughly understood from the leadership to each employee
throughout the system.
Business information:
• Vietnamese name: VIETJET AIRLINES JOINT STOCK COMPANY
• Short name: VIETJET., JSC
• Trade Name: VIETJET AIR
• Enterprise code: 0102325399 issued by Hanoi Department of Planning and Investment
for the first time on July 23, 2007, changed for the 27th time on August 1, 2018
• Air transport business license: No. 04/2016/GPKDVCHK issued on December 30, 2016
• Charter capital: 5,416,113,340,000 VND
• Total ordinary shares: 541,611,334 shares
• Listing date on Ho Chi Minh City Stock Exchange (HOSE): February 28, 2017
• Stock code: VJC
• Independent Auditor: Branch of KPMG Co., Ltd in Ho Chi Minh City. Ho Chi Minh –
Vietnam
2
1.2 Line of business
Vietjet's business activities focus on 5 main groups, including:
Main activities the main activities of the Company and its subsidiaries are to provide
passenger and cargo transportation services on domestic and international routes and
related support activities and purchases. aircraft and aircraft parts.
3
CHAPTER 2 ANALYSIS OF FINANCIAL STATEMENTS OF VIETJET
AVIATION JOINT STOCK COMPANY
2.1 Data source for analyzing financial statements of Vietjet Aviation Joint Stock
Company
- Consolidated financial statements for the quarters of 2019 include:
Financial statements for the first quarter of 2019 for the period from January 1, 2019 to
March 31, 2019 (form B01 - DH/HN) issued in accordance with Circular No. 202/2014/TTBTC dated 22 December 2014 of the Ministry of Finance.
Financial statements for the second quarter of 2019 for the period from April 1, 2019 to
June 30, 2019 (form B01 - DH/HN) issued in accordance with Circular No. 202/2014/TTBTC dated 22 December 2014 of the Ministry of Finance.
Financial statements for the third quarter of 2019 for the period from July 1, 2019 to
September 30, 2019 (form B01 - DH/HN) issued in accordance with Circular No.
202/2014/TT-BTC dated 22 December 2014 of the Ministry of Finance.
Financial statements for the fourth quarter of 2019 for the period from October 1, 2019 to
December 31, 2019 (form B01 - DH/HN) issued in accordance with Circular No.
202/2014/TT-BTC dated 22 December 2014 of the Ministry of Finance.
Consolidated financial statements for the quarters of 2020 include:
Financial statements for the first quarter of 2020 for the period from January 1, 2020 to
March 31, 2020 (form B01 - DH/HN) issued in accordance with Circular No. 202/2014/TTBTC dated 22 December 2014 of the Ministry of Finance.
Financial statements for the second quarter of 2020 for the period from April 1, 2020 to
June 30, 2019 (form B01 - DH/HN) issued according to Circular No. 202/2014/TT-BTC
dated 22 December 2014 of the Ministry of Finance.
Financial statements for the third quarter of 2020 for the period from July 1, 2020 to
September 30, 2020 (form B01 - DH/HN) issued in accordance with Circular No.
202/2014/TT-BTC dated 22 December 2014 of the Ministry of Finance.
4
Financial statements for the fourth quarter of 2020 for the period from October 1, 2019 to
December 31, 2020 (form B01 - DH/HN) issued in accordance with Circular No.
202/2014/TT-BTC dated 22 December 2014 of the Ministry of Finance.
Consolidated financial statements for the quarters of 2021 include:
Financial statements for the first quarter of 2021 for the period from January 1, 2021 to
March 31, 2019 (form B01 - DH/HN) issued in accordance with Circular No. 202/2014/TTBTC dated 22 December 2014 of the Ministry of Finance.
Financial statements for the second quarter of 2021 for the period from April 1, 2021 to
June 30, 2019 (form B01 - DH/HN) issued in accordance with Circular No. 202/2014/TTBTC dated 22 December 2014 of the Ministry of Finance.
2.2 Analysis of balance sheet:
2.2.1 Analysis of the situation of asset fluctuations:
The balance sheet is a consolidated financial statement, which generally reflects the total
value of existing assets and the source of capital to form an enterprise's assets at a certain
asset.
The content of the balance sheet is shown through a system of indicators reflecting the
situation of assets and the source of capital to form assets. The targets are classified and
arranged into categories, specific objectives and targets in accordance with the
requirements of management.
2.2.1.1 Horizontal analysis:
5
Table 2.1 Balance sheet
Criteria
Quarter 1-2019
Quarter 2-2019
Quarter 3-2019
Quarter 4-2019
Quarter 1-2020
Quarter 2-2020
Quarter 3-2020
Quarter 4-2020
I – SHORTTERM
ASSETS
19,002,091,982,471
22,505,968,973,232
20,844,564,739,132
26,626,471,445,906
22,232,501,052,662
24,808,144,357,949
22,550,649,471,812
24,496,625,289,704
27
1. Cash and
cash
equivalents
5,098,305,305,035
5,265,462,335,773
3,168,319,367,301
6,076,130,859,648
2,459,284,982,899
2,413,573,361,917
2,298,775,806,473
3,054,995,683,706
2
2. Short-term
investments
876,400,000,000
579,400,000,000
546,400,000,000
435,000,000,000
300,000,000,000
994,000,000,000
419,000,000,000
604,000,000,000
1
3. Short-term
receivables
12,230,652,002,429
15,651,866,716,676
16,067,006,684,052
18,985,742,138,634
18,359,305,350,281
20,339,426,388,480
18,907,398,112,367
19,907,228,134,374
23
4. Inventory
433,738,248,016
609,426,772,775
589,575,595,705
683,568,930,196
686,629,885,804
760,919,281,922
679,882,809,195
686,565,424,536
5. Other
current assets
362,996,426,991
399,813,148,008
473,263,092,074
446,029,517,428
427,280,833,678
300,225,325,630
245,592,743,777
243,836,047,088
II - LONGTERM
ASSET
22,385,118,532,293
21,954,917,384,417
22,301,728,341,075
20,981,887,293,169
24,672,632,357,080
23,584,364,727,989
22,753,771,934,233
22,591,631,380,013
20
1. Long-term
receivables
13,503,018,744,273
12,116,403,885,432
12,909,933,171,407
12,939,507,707,180
14,656,334,734,962
14,784,259,222,748
15,501,406,488,782
15,410,005,431,192
13
2. Fixed
assets
1,608,662,305,646
1,569,346,220,675
1,559,370,752,923
1,294,921,085,383
1,281,682,857,391
740,426,680,388
841,066,131,988
850,496,391,339
6
3. Long-term
assets in
progress
1,251,646,735,143
1,798,970,950,725
1,783,715,438,065
1,318,591,797,825
1,355,314,286,902
738,283,912,782
785,340,638,606
788,714,653,737
4. Long-term
investments
68,424,629,818
68,424,629,818
215,973,206,218
215,973,206,218
215,973,206,218
215,973,206,218
215,973,206,218
215,973,206,218
5. Other
long-term
assets
5,953,366,117,413
6,401,771,697,767
5,832,735,772,462
5,212,893,496,563
7,163,327,271,607
7,105,421,705,853
5,409,985,468,639
5,326,441,697,527
4
TOTAL
ASSETS
41,387,210,514,764
44,460,886,357,649
43,146,293,080,207
47,608,358,739,075
46,905,133,409,742
48,392,509,085,938
45,304,421,406,045
47,088,256,669,717
47
7
Graph 2.1. Changes in assets of Vietjet from the first quarter of 2019 to the second
quarter of 2021
Total asset
50,000,000,000,000
48,000,000,000,000
46,000,000,000,000
44,000,000,000,000
42,000,000,000,000
40,000,000,000,000
38,000,000,000,000
36,000,000,000,000
Quarter Quarter Quarter Quarter Quarter Quater Quarter Quarter Quarter Quarter
1-2019 2-2019 3-2019 4-2019 1-2020 2-2020 3-2020 4-2020 1-2021 2-2021
(Source: Table 2.1. Movement of assets from the first quarter of 2019 to the second
quarter of 2021)
From "Graph 2.1: Changes in total assets between the second quarter of 2021 compared
to the first quarter and the quarters of 2019 and 2020", we can see that the company's
total assets grew in the second quarter of 2019 reaching VND 44,460,886,357,649 and
started to decrease in the third quarter of 2019 with VND 43,146,293,080,207. Then
there was a strong growth in the fourth quarter of 2019 reaching VND
47,608,358,739,075. However, the company's total assets began to show signs of a
slight decrease in the first quarter of 2020 with VND 46,905,133,409,742 and continued
to grow strongly in the second quarter of 2020 with total assets of VND
48,392,509,085,938. Then it decreased again in the third quarter of 2020 with VND
45,304,421,406,045. From the fourth quarter of 2020, the company's total assets tended
to grow steadily in the fourth quarter of 2020 and the first quarter of 2021 with total
assets of 47,088,256,669,717 VND and 47,497,810,235,588 VND respectively. Then
8
total assets reached a record number in the second quarter of 2021 with
48,620,658,091,886 VND.
And to better understand the volatility of the company, we go into detailed analysis of
asset items and their impact on the financial position of the company.
- Short-term assets
Graph 2.2. Changes in total short-term assets between the second quarter of 2021
compared to the first quarter and the quarters of 2019 and 2020
Short-term assets
30,000,000,000,000
25,000,000,000,000
20,000,000,000,000
15,000,000,000,000
10,000,000,000,000
5,000,000,000,000
0
Quarter Quarter Quarter Quarter Quarter Quater Quarter Quarter Quarter Quarter
1-2019 2-2019 3-2019 4-2019 1-2020 2-2020 3-2020 4-2020 1-2021 2-2021
(Source: Table 2.1. Movement of assets from the first quarter of 2019 to the second
quarter of 2021)
Based on graph 2.2. The fluctuation of total short-term assets between the second
quarter of 2021 compared to the first quarter and the quarters of 2019 and 2020 shows
that the company's current portfolio of short-term assets accounts for only VND
28,112,440,761,524. Compared to the first quarter of 2019, the difference between the
short-term asset portfolio is 9,110,348,779,053 VND and is also the highest difference
with the rate of 47.96%. By the second quarter of 2019, the ratio of short-term assets
was 22,505,968,973,232 dong, the difference between the second quarter of 2019 and
9
the second quarter of 2021 decreased compared to the difference in the first quarter,
with the difference falling to 5,606,471,788,292 dong, equivalent to VND
5,606,471,788,292 with the rate of 24.91%. However, by the third quarter of 2019, the
ratio of short-term assets compared to the second quarter of 2021 continued to increase
and it can almost be said that the number is at the highest approximation level, with
about the difference fell to 7,267,876,022,392 billion VND, equivalent to 34.86%. It
was thought that this ratio would continue to increase with fluctuations over time at the
end of 2019. However, by the fourth quarter of 2019, the difference in short-term assets
had decreased to 1,485,969,315,618 VND and applied with a rate of 5.58%.
Continuing, entering the beginning of 2020. The portfolio of short-term assets falls at
about VND 22,232,501,052,662. This number seems to approximate the figure of the
beginning of the second quarter of 2019. Therefore, this difference is 5,879,939,708,862
VND, while the difference between the second quarter of 2021 and the second quarter
of 2019 on this item is 5,606,471,788,292. This difference decreased again in the second
quarter of 2020 with VND 3,304,296,403,575 with the rate of 13.32% and continued to
increase in the third quarter of 2020, the difference was approximately the same as the
first quarter of 2020 with 5,561,791,289,712 accounting for 24.66 %. From the third
quarter of 2020, the difference in the short-term asset portfolio gradually decreased. The
difference in the fourth quarter of 2020 decreased by 1,945,975,817,892 VND
compared to the third quarter of 2020 and 3,615,815,471,820 VND with the second
quarter of 2021, equivalent to 14.76%. Short-term assets continued to increase and
stopped at VND 27,353,003,817,452 in the first quarter of 2021, the difference
compared to the second quarter of 2021 fell to VND 759,436,944,072 and also the
lowest difference with 2.77%.
- Cash and cash equivalents
Graph 2.3. Movements of cash and cash equivalents over the quarters from 2019
to 2021
10
Cash and cash equivalents
7,000,000,000,000
6,000,000,000,000
5,000,000,000,000
4,000,000,000,000
3,000,000,000,000
2,000,000,000,000
1,000,000,000,000
0
Quarter Quarter Quarter Quarter Quarter Quater Quarter Quarter Quarter Quarter
1-2019 2-2019 3-2019 4-2019 1-2020 2-2020 3-2020 4-2020 1-2021 2-2021
(Source: Table 2.1. Movement of assets from the first quarter of 2019 to the second
quarter of 2021)
In the second quarter of 2021, this item reached VND 1,517,051,455,785. And in
general, if we compare the second quarter of 2021 with the first two quarters of 2019,
the cash and cash equivalents items have an increasing trend. Specifically, from the first
quarter of 2019, the threshold is 5,098,305,305,035 VND, the difference compared to
the second quarter of 2021 is -3,581,253,849,250 VND, equivalent to -11.4%. By the
second quarter of 2019, this item continued to increase with the figure of
5,265,462,335,773 VND. It was thought that this number of categories would continue
to fluctuate in an increasing direction, but in the third quarter of 2019, this item suddenly
dropped sharply to only 3,168,319,367,301, the difference compared to the second
quarter of 2021 is -1,651,267,911,516, equivalent to 1,651,267,911,516. with a rate of
-52.11%. In the fourth quarter of 2019, this category had a record increase of
6,076,130,859,648 and compared to the second quarter of 2021, the figure was 4,559,079,403,863, equivalent to -75.03%. The reason for this sudden growth is that
Vietjet has chartered 9 more aircraft, bringing the number of ships put into operation by
the end of 2019 to 78 aircraft with total operating hours of 321,000 safe hours to meet
11
the needs of customers. Meeting the needs of passengers with 139,000 flights. The seat
utilization factor reached 87%, the technical reliability reached 99.64%, belonging to
the group of airlines with the leading operating safety index in the Asia-Pacific region.
International organization Airline Ratings rated Vietnam's safety index at 7 stars - the
highest level on the rankings. In addition, thanks to the ancillary revenue growth
strategy, which mainly includes additional service revenues, freight revenue, in-flight
sales (food, beverage, beverage, etc.) souvenirs) and advertising revenue.
However, at the beginning of 2020, the cash and cash equivalents items continuously
decreased sharply in the first 3 quarters. In the first quarter of 2020, this category
reached VND 2,459,284,982,899, a decrease of 3,616,845,876,749 compared to the first
quarter of 2019 and a difference of -942,233,527,114 compared to the second quarter
of 2021, corresponding to a rate of -38.31%. Entering the second quarter of 2020, this
number continued to decrease with VND 2,413,573,361,917, nearly equivalent to the
first quarter of 2020, and a difference of -896,521,906,132 VND compared to the second
quarter of 2021, equivalent to -37.14%. Not stopping there, 2,298,775,806,473 VND is
the number in this item in the third quarter of 2020, compared to the second quarter of
2021, the difference in cash items and cash equivalents is -781,724,350,688 VND,
equivalent to the rate - 34%. So, what are the reasons for the high growth of this category
in the fourth quarter of 2019 but then it suddenly dropped to very low in the first three
quarters of 2020? According to the company's explanation, the COVID-19 epidemic
has had a huge impact on the global economy and the aviation industry is one of the
industries most affected by the drop in travel demand. Vietjet Air has suspended all
international scheduled flights and reduced domestic flights. In the fourth quarter of
2020, the cash and cash equivalents portfolio grew slightly with a figure of
3,054,995,683,706 VND, an increase of 756,219,877,233 VND compared to the
previous third quarter and the difference compared to the second quarter of 2021 was 1,537,944,227,921 VND corresponding to the level of rate -50.34%. The reason for this
growth is that Vietjet has converted a number of aircraft configurations into freight
transport, applying a new mode of operation to increase the cargo capacity of the fleet.
The airline is also the first airline to be approved by the authorities to carry cargo in the
cabin.
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However, entering the first two quarters of 2021, this category continued to decline
sharply. In the first quarter of 2021, this item decreased sharply to only
2,054,231,746,882 VND, the lowest compared to the previous quarters, the difference
compared to the second quarter of 2021 was -537,180,291,097 VND with a rate of 26.15%. We can see that the reason for the decrease in the cash and cash equivalents
portfolio in the first two quarters of 2021 is due to the high increase in liabilities and
the serious impact of the outbreak of the epidemic. In Ho Chi Minh City and the
southwestern provinces, Vietjet was affected due to reduced travel demand and limited
cargo transportation.
- Short-term receivables
Graph 2.4. Movements of short-term revenues over the quarters in the period of
2019 - 2021
Short-term receivables
30,000,000,000,000
25,000,000,000,000
20,000,000,000,000
15,000,000,000,000
10,000,000,000,000
5,000,000,000,000
0
Quarter Quarter Quarter Quarter Quarter Quater Quarter Quarter Quarter Quarter
1-2019 2-2019 3-2019 4-2019 1-2020 2-2020 3-2020 4-2020 1-2021 2-2021
(Source: Table 2.1. Movement of assets from the first quarter of 2019 to the second
quarter of 2021)
In general, short-term revenues tend to increase gradually over the years. As of the
second quarter of 2021, this item is VND 24,789,364,603,511. Looking at graph 2.4
"Changes in short-term receivables between the second quarter of 2021 and the first
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quarter of 2021 and the quarters of 2019 and 2020", we can comment as follows:
Movement of receivables short-term is 12,230,652,002,429 VND in the first quarter of
2019. The difference between the second quarter of 2021 and the first quarter of 2019
at an increase of VND 12,558,712,601,082, equivalent to a rate of 102.68% and also
the highest difference. Looking to the second quarter of 2019, this range continued to
increase to 15,651,866,716,676 VND, an increase of 3,421,214,714,247 VND
compared to the first quarter of 2019 and the difference with the second quarter of 2021
with the figure of 9,137,497,886,835 VND corresponding to the rate of 58, 38%. The
reason short-term revenue increased during this period was due to the increase in shortterm loans and other receivables in the second quarter of 2019. Specifically, the item of
other receivables in the second quarter of 2019 increased by VND 4,829,183,996,780
compared to the first quarter of 2019. By the third quarter of 2019, this item increased
slightly to VND 16,067,006,684,052 just higher than the second quarter of 2019 at VND
415,139,967,376 and lower than the second quarter of 2021 with VND 8,722 billion,
equivalent to 54.28%. This item continued to increase when entering the fourth quarter
of 2019, receivables increased to VND 18,985,742,138,634. The reason why short-term
revenues in this quarter increased is due to the increase in receivables from customers
by VND 2,713,381,622,640 compared to the third quarter of 2019. Therefore, the
difference between the fourth quarter of 2019 compared to the second quarter of 2020
is also lower than the difference of the third quarter of 2019 when compared to the
second quarter of 2021, the number is only 5,803,622,464,877 VND, corresponding to
the rate of 30. 56%.
However, in the first quarter of 2020, short-term receivables decreased slightly, only
18,359,305,350,281. Comparing the difference with the second quarter of 2021, this
figure is 6,430,059,253,230 VND, an increase of 626,436,788,353 VND compared to
the previous fourth quarter of 2019. This item increased strongly again when entering
the second quarter of 2020 reaching VND 20,339,426,388,480, the highest compared
to the previously presented quarters. The difference compared to the second quarter of
2021 decreased to only 4,449,938,215,031 VND, lower than the first quarter of 2020
was 1,980,121,038,199, equivalent to the rate of 21.87%. It seemed that this item would
continue to increase, but when entering the third quarter of 2020, the number decreased
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to only VND 18,907,398,112,367, approximately equivalent to this item in the first
quarter of 2020 and down 1,432,028,276,113 compared to the second quarter of 2020.
The difference compared to the second quarter of 2021 increased to 5,881,966,491,144
VND, the rate increased to 31.1%. From the second quarter of 2020, short-term
receivables tend to increase gradually. In the fourth quarter of 2020, this item reached
VND 19,907,228,134,374, a slight increase compared to the third quarter of 2020. The
difference is 4,882,136,469,137 VND compared to the second quarter of 2021 with a
rate of 24.52%. Entering the first quarter of 2021, this number increased by
3,162,472,036,038 VND, reaching 23,069,700,170,412 VND, compared with the
second quarter of 2021, the difference was 1,719,664,433,099, also the lowest
difference, corresponding to the rate of 7.58%. The reason for this gradual increase is
that other receivables started to increase in the fourth quarter of 2020. Specifically,
VND 9,986,988,481,423 in the fourth quarter of 2020, VND 13,943,995,045,004 in the
first quarter of 2021 and VND 14,882,986,870,318 in the second quarter of 2021. The
larger the receivables are, the more capital is occupied by the enterprise (ie the
enterprise's capital is stagnant in the payment stage), this will partly affect the efficiency
of capital use of the enterprise. enterprise. To overcome the above situation, minimize
risks for the company, the company needs to take measures to ensure the ability to
recover debts and avoid affecting the company's finances. And to get a more accurate
conclusion about the causes and effects of short-term receivables on Vietjet's financial
situation, we will study more closely in the following sections:
- Inventory
Graph 2.5. Changes in inventory over the quarters in the period of 2019 - 2021
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