Phân tích báo cáo tài chính công ty cổ phần bánh kẹo hải hà

Foreign Trade University
Financial
Statements
Analysis
Hai Ha
Confessionary Joint
Stock Company
Group member:
1. Tran Thi Hong Phuong (leader)
2. Doan Phuong Thao
3. Luong Thu Thuy
4. Pham Thi Ngoc Thao
5. Nguyen Manh Thi
6. Bui Linh Chi
7. Le Duc Binh
Class: A3 – High Quality class – Faculty of Finance and Banking
Batch: 48
HAIHA CONFESTIONARY JOINT STOCK COMPANY
Table of Contents
Table of Contents 2
A.Overview 3
I.General information 3
II.SWOT Analysis 5
III. Macroeconomics and Industry Analysis 6
1.Macroeconomics analysis 6
2.Industry Analyses 8
B.Analysis 10
I.Horizontal analysis 10
1.Balance sheet analysis 10
2.Income statement analysis 15
II.Vertical analysis 17

1.Balance sheet analysis 17
2.Income statement analysis 19
2.Activity ratios 24
3.Debt management ratios 25
4.Profitability ratios 27
IV.DuPont analysis 32
C.Conclusion 35
I.Financial position & performance 35
II.Risk 35
III.Prospect 35
IV.Recommendations: 36
References: 37
2
HAIHA CONFESTIONARY JOINT STOCK COMPANY
HAIHA CONFESTIONARY JOINT STOCK COMPANY
A. Overview
I. General information
Name: Hai Ha Confectionery Joint Stock Company
Abbreviation: HAIHACO
Stock Code: HHC
Listed Date: November 20
th
, 2007
Chartered Capital: In January 2011, Hai Ha issued 2,737,500 shares in addition to its
54,750,000 shares. The company’s current chartered Capital is 82,125,000,000 VND.
1. History
Hai Ha JSC was founded in 1960. At the beginning, Hai Ha JSC was a small
enterprise with the productivity of 2,000 tons per year, now the company has become one of
the largest confectionery manufacturers in Vietnam with a average productivity of about
20,000 tons per year.

In 2003, the company performed privatization according to Decision 191/2003/QĐ-
BCN on November 14
th
, 2003 of Ministry of Industry. The company officially operated as a
joint-stock company on January 20
th
, 2004.
2. Business activities
The company’s main business is confectionery manufacturing and trading. Besides, it
also has some other activities such as:
- Importing and exporting raw material, machine equipments, profession products,
consumer goods and other goods
- Investing in building, let out offices, houses, shopping center.
3. Shareholder structure
3
HAIHA CONFESTIONARY JOINT STOCK COMPANY
4.
Product and Market position
a. Product
Hai Ha’s products are much diversified such as soft cake, biscuits, cracker, candies,
cream wafer, snack, jam, etc. These types of products mainly meet domestic demand
especially average income consumers.
In terms of revenue, candies in general are the main product line of Hai Ha over years,
with sales up to more than 70% of the revenue of the whole company. In addition, wafers,
biscuits & crackers are also traditional products of Hai Ha, which generate 22% of the total
revenue for the company. Some successful product brands of Hai Ha JSC are CHEW
HAIHA, jelly candy CHIP HAIHA, HAIHAPOP, pine soft cake MINIWAF, etc.
b. Market position
Haiha’s strategic products are candies and wafer cake. Meanwhile, its competitors -
KinhDo is specialized in manufacturing biscuits, cracker cake and as for Bibica, its strength

are sponge cake and candies. So far, Hai Ha accounts for 7% of total market share in domestic
confectionery industry, after KinhDo and Bibica. In terms of candies manufacturing, Hai Ha
4
HAIHA CONFESTIONARY JOINT STOCK COMPANY
is the second biggest enterprise accounting for 14% market share nationwide, just after
Bibica.
II. SWOT Analysis
STRENGTH WEAKNESS
-Prestigious and experienced brand
- Diversified products range
- Wide consumption network
- Relatively stable financial performance
- Products mainly serves domestic demand
and average income consumers
- Incomplete organizational structure &
management skills
- Lack of foreign investments
- Highly sensitive to input materials price
movements
OPPORTUNITIES THREATS
- High growth potential of confectionery’s
Industry
- Owner of a “golden land” at Truong
Dinh Hanoi which is expected to generate
promising future income
- Consumers market expansion especially in
the countryside
- Expanding exporting market after
- High inflation and slow-down GDP growth
- Exchange rate risk

- Unpredictable input materials’ price
movements
- Increasingly competitive market
5
HAIHA CONFESTIONARY JOINT STOCK COMPANY
Vietnam
joined WTO
III. Macroeconomics and Industry Analysis
1. Macroeconomics analysis
a. Exchange rate and foreign currency interest rate
In 2010, the State Bank of Vietnam (SBV) adjusted the exchange rate twice. The first time
was in
February and the second time was in August. The official ceiling trading exchange rate
over the last
months of 2010 was 19,500. Yet, the exchange rate in free market could reach far
more than this number. In February, 2011 SBV once again adjusted the interbank exchange
rate with an increase of 9.3% and tighten the exchange rate range to +/- 1%. Overall, we can
see that there is an upwards trend in the exchange rate fluctuation. Although, now the
interbank exchange rate is monitored on
daily basis to prevent sudden change in exchange
rate’s impacts on firms and individual’s activities
and the government is exercising various
policies to stabilize the exchange rate; the trading exchange rate still remains at high level.
Decision 750/QD-NHNN which is going to take effect in May requires the financial
institutions to increase the required reserve ratio of deposits made on foreign currency from
4% to 6%. Circular 09/2011/TT-NHNN states the maximum deposit rate in foreign currency
for individuals and organizations (3% for individuals and 1% for organization). These moves
of SBV will force the commercial banks to consider reducing the offered rate for deposits
made on foreign currency and raising the lending rate for loans made on foreign currency to
compensate for the fraction of

mobilizing funds used as additional required reserve. This, in
turn, will discourage businesses from
borrowing foreign currency.
Considering Hai Ha JSC‘s case:
 The company’s products are mainly produced to meet the domestic demand; which
6
HAIHA CONFESTIONARY JOINT STOCK COMPANY
means that Hai Ha has a very low level of exports. Meanwhile, most of the company’s
inputs such as wheat, milk, sugar, etc. have to be imported from foreign countries.
(The company’s COGS over years account for approximately 70-80% of its net sale,
which means that the company’s income depends largely on the price of its input
materials). The high exchange rate will increase the production costs of Hai Ha while
the company cannot increase its products’ prices at equivalent level in order to
maintain its market share. This will obviously have negative effects the company
operating activities and income. Also, the high lending rate for loans made on foreign
currency will make it difficult for all imported firms like Hai Ha JSC to borrow
foreign currency to make payment.
 Secondly, Hai Ha is having a contract of land leasing at VSIP Industry Plant in Bac
Ninh. The contract is made on USD with a price of 62USD/m 2 for 47 years since
14/12/2010. Although Hai Ha has made a considerable prepayment for this contract,
the constant high exchange rate and complicated changes in exchange rate movements
can be a challenge for Hai Ha’s capacity of fund management as well.
b. Interest rate
Interest rate in 2010 had unpredictable movements and in 2011, the ceiling deposit
rate now is 14% and the lending rate is around 18-22%, which are quite high. However, high
interest rate does not really have large effects on Hai Ha JSC activities as the company does
not hold many debts. Hai Ha mainly hold short-term debts which is not very sensitive to
interest rate changes. Moreover, the company’s short-term debt is money borrowed from its
employees with the interest of 0.54%/month; thus, this borrowing can be considered quite
safe.

Besides, Hai Ha does not invest much in financial instruments; the company mainly
invests in fixed assets such as equipment to improve its operating performance and thus, is not
subject to interest
risk.
c. Inflation and GDP growth
GDP growth of Vietnam in 2010 is 6.78%, increasing 13 billion VND compared to
2009. However, the inflation rate is 11.75% which is more than twice as much as what the
Assembly aimed at the beginning of 2010 (5%). In the first quarter of 2011, the GDP growth
is 5.43% which is the lowest level in recent years, also, the inflation rate is already 6.12%,
account for nearly 90% of what the government set target for 2011 (7%). It seems that the 2-
digit inflation rate situation will continue to happen in 2011.
High inflation together with slow down GDP growth will affect the purchasing power
of consumers especially when Hai Ha’s products (confectionery) are not necessities.
Consumers will cut down on
them as much as possible since they are not of their essential
needs. This will negatively impact not
only Hai Ha but also other companies in the same
industry.
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HAIHA CONFESTIONARY JOINT STOCK COMPANY
2. Industry Analyses
a. Wheat price
In 2010, wheat’s price movements were very complicated. In August, the wheat future
price increased abnormally due to the shortage of suppliers in the market. Unstable climate
conditions caused the wheat price to keep increasing as demand exceeded supply. Such wheat
exporters as Russia, China, Ukraine and Kazakhstan had to suffer from severe drought. The
output of Canada – the largest wheat exporter – in 2010 also decreased by 36% compared to
2009 due to heavy rains in North America. Overall, the world’s output of wheat in 2010
dropped by 5.3% compared to 2009.
During the first months of 2011, wheat price constantly rises as a result of the chaos in

the political
climate of Middle East and North Africa regions. However, in April, there begins
to have good sign in the wheat’s price movements. The price starts to decrease and becomes
more stable thanks to the increase in wheat output of countries in the EU zone namely France.
France has exported 10.6 million ton of wheat at the beginning of April, increasing by 17.8
million compared to the same period last year.
Overall, despite the positive sign in the wheat price movements in April, at the
moment, no certain conclusion can be made on wheat’s price movement in 2011. Hence,
confectionery firms like Hai
Ha JSC still need to catch up new information continuously to
decide which time will be appropriate
to purchase inventory especially when the COGS of
these firm often accounts more than 70% of their net sale and there is no hint of a decrease in
import tax on wheat from the government (5-15%)
b. Sugar’s price
Sugar’s price in 2010 was high as demand exceeded supply. Total domestic outputs
could only meet 75% of local demand. Although in July, the Ministry of Industry and Trade
allowed importing of 100,000 tons to stabilize the price, it still stood at high level till the end
of the year.
However, in 2011, sugar’s price in the world as well as in Vietnam is expected to
decrease owing to an increase in sugar’s supply as:
- The outputs of sugarcane in Thailand and Brazil- two largest sugarcane exporters- are
estimated
to go up considerably. Also, as a result of the high price level in 2010,
farmers in such countries as
China, Thailand, Vietnam and Brazil have expanded the
areas for sugarcane cultivation.
- In Vietnam, Circular 29/2011/TT-BTC issued by the Ministry of Finance which took
effect on 15/4/2011 has reduced the preferential import tax rate on sugar to 15%.
- Ministry of Agriculture and Rural Development estimated that the total output of

sugar of Vietnam in 2011 was only 1 million ton and permitted a quota of 250,000
tons of sugar to be imported in 2011. Yet, during only the 1st quarter of 2011,
8
HAIHA CONFESTIONARY JOINT STOCK COMPANY
although the sugarcane crop hasn’t finished yet, the total domestic outputs are already
860,400 tons (~86% of the ministry’s estimation). According to Vietnam Sugar
Association, Vietnam now is having about 400,000 tons of sugar in stock. Together
with 250,000 tons which were licensed to import, the sugar supply in 2011 will be
high.
9
HAIHA CONFESTIONARY JOINT STOCK COMPANY
B. Analysis
I. Horizontal analysis
1. Balance sheet analysis
Accounts Horizontal (year base 2006)
2007 2008 2009 2010
increase/decrease % increase/decrease % increase/decrease % increase/decrease %
Current asset (9,892,521,70
5)
(8
.23)
6,579,136,478.
00

5.47
5,121,270,121.
00
4
.26
36,666,993,259.

00
30.
50
Cash 6,378,045,940 3
2.52
3,826,450,267.
00
1
9.51
84,077,050.
00
0
.43
8,786,318,436.
00
44.
80
Current investment
-

-
5,000,000,000.
00

-

Current account
receivable
(10,006,053,365) (27.
77)

(10,966,798,968.0
0)
(30.
44)
(8,217,729,306.0
0)
(22.
81)
(12,071,421,795.0
0)
(33.5
1)
10
HAIHA CONFESTIONARY JOINT STOCK COMPANY
Inventory (6,966,270,83
2)
(10.
98)
13,475,160,211.
00
2
1.24
7,531,001,693.
00
11
.87
37,513,581,289.
00
59.
12

Other current asset 701,756,5
52
6
2.13
244,324,968.
00
2
1.63
723,920,684.
00
64
.09
2,438,515,329.
00
215.
89
Non-current asset 37,802,856,8
77
8
1.08
31,856,827,418.
00
6
8.32
20,375,640,004.
00
43
.70
20,876,353,327.
00

44.
77
Non-current acc
receivable

-

-

-

-

Non-current asset 38,024,657,0
87
8
9.26
31,848,617,925.
00
7
4.76
19,841,108,876.
00
46
.58
10,346,304,764.
00
24.
29
Other non-current

asset
(221,800,21
0)
(5
.51)
8,209,493
.00

0.20
534,531,128.
00
13
.27
10,530,048,563.
00
261.
47
Total asset 27,910,335,1
72
1
6.73
38,435,963,896.
00
2
3.04
25,496,910,125.
00
1
5.28
57,543,346,586.

00
34.
49
- - - -
Liabilities 1,577,770,379 3,327,376,868. (19,222,323,261.0 (20. 2,600,941,647. 2.
11
HAIHA CONFESTIONARY JOINT STOCK COMPANY
1.68 00 3.54 0) 44) 00 77
Current liability (804,165,78
3)
(1
.04)
(5,374,990,778.0
0)
(6
.98)
(4,631,573,847.0
0)
(6
.01)
16,468,520,713.
00
21.
38
Non-current
liability
2,381,936,162 1
4.02
8,702,367,646.
00

5
1.21
(14,590,749,414.0
0)
(85.
86)
(13,867,579,066.0
0)
(81.6
0)
Equity 26,332,564,7
93
3
6.16
35,108,587,028.
00
4
8.21
44,719,233,386.
00
61
.41
54,942,404,939.
00
75.
45
Owner’s equity 25,205,454,0
24
3
6.73

33,859,873,225.
00
4
9.34
42,108,220,876.
00
61
.36
59,135,026,317.
00
86.
17
Retained earnings 2,614,395,055 - 1,642,500,000.00 - 238,830,899.00 - 10,056,514,234.00 -
Other funds 1,127,110,769 2
6.88
1,248,713,803.
00
2
9.78
2,611,012,510.
00
6
2.28
(4,192,621,378.0
0)
(100.0
0)
Liability + equity 27,910,335,1
72
1

6.73
38,435,963,896.
00
2
3.04
25,496,910,125.
00
1
5.28
57,543,346,586.
00
34.
49
12
HAIHA CONFESTIONARY JOINT STOCK COMPANY
The data suggests that the company has trend to increase its assets,
especially its asset increase strongly by 30.5% in 2010. This expansion was
financed primarily by the contribution of owner’s equity rather than debts
Figure 1: Percentage change of debts and owner’s equity of HHC from
2007-1010
As you can see on the chart, while the owner’s equity was increasing
at high rate (from 36.73% in 2007 to 75.45% in 2010), the debt of the
company was reducing, especially the non-current debt reduced sharply in
2009. The decrease in debts accounts might result from the payment to the
creditors of the company. You can see that in 2008 when the debts decreased
dramatically, the cash account also fell down and only recovered in 2010
when the current liability increased by 16,468,520,713.00 equivalent to
21.38%. There is a relationship between the debts account and the cash
account
13

HAIHA CONFESTIONARY JOINT STOCK COMPANY
Figure 2: Relationship between debts and cash (%)
The increase in cash was also referred from the reduction in the account receivable,
means that the debtors paid the debt to the company from 2007 to 2010. You also can see the
relationship between cash and account receivable through the following chart
Figure 3: the relationship between cash and account receivable: inverse relationship,
when the account receivable decreases, the cash increases and vice versa
The increase in company’s asset was also contributed by the increase of retained
earnings. Although the retained earnings fell down in 2009 but it rocketed to more than 10
billion in 2010 from the bottom of 238,830,899 in 2009
Figure 4: Retain earning of HHC from 2007-2010
14
HAIHA CONFESTIONARY JOINT STOCK COMPANY
2. Income statement analysis
2006
(base year)
Increase/
decrease in
2007
Increase/
decrease in
2008
Increase/
decrease in
2009
Increase/
decrease
in 2010
1. Revenue from
good and services

329,83
9,905,075
4.38% 26.97% 39.58% 60.94%
2. Deduction 4,
009,870,301
-24.51% -30.01% -55.78% -26.77%
3. Net Revenue 325,83
0,034,774
4.73% 27.68% 40.75% 62.02%
4. Cost of good sold 274,
458,442,279
2.57% 27.02% 39.82% 63.20%
5. Gross profit 51,37
1,592,495
16.31% 31.18% 45.69% 55.73%
6. Financial
Income
1,07
2,050,017
5.73% -34.71% 24.88% 14.04%
7. Financial
Expense
3,53
9,937,693
-25.12% 30.85% -43.75% -97.56%
In which: Interest
expense
3,40
6,283,304
-23.43% -9.53% -73.19% -100.21%

8. Selling expense 19,87
6,596,734
2.63% 17.91% 35.52% 50.15%
9. General and
administration
expense
12,53
7,408,982
30.60% 60.84% 72.32% 120.91%
10. Net profit from
operating activities
16,48
9,699,103
30.13% 20.42% 55.55% 43.11%
15
HAIHA CONFESTIONARY JOINT STOCK COMPANY
11. Others incomes 1,81
8,832,757
69.05% 154.00% 54.70% 35.28%
12. Other expense 83
6,054,335
89.39% 186.05% 56.94% 1.36%
13. Net Profit from
other activities
98
2,778,422
51.75% 126.74% 52.80% 64.14%
14. Net profit from
cooperated
company

- - - - -
15. Net profit
before tax
17,47
2,477,525
31.34% 26.40% 55.39% 44.29%
16. Corporate
income tax
2,
679,255,611
26.09% 20.56% 149.19% 135.79%
17. Deferred
corporate income
tax
-233,108,758 -28.98% -40.62% -52.22% -93.71%
18. Net profit after
tax
15,02
6,330,672
31.34% 26.40% 35.52% 25.83%
18.1Minority
shareholder's
interest
- - - - -
18.2 Mother's
coporation net
profit after tax
15,02
6,330,672
31.34% 26.40% 35.52% 25.83%

17. Basic earning
pershare

4,117
8.70% -15.74% -9.66% -16.10%
• Revenues of company show positive sign of company’s performance over the last 5
years. Revenue increased slightly in 2007 and increased significantly in 2008 and
16
HAIHA CONFESTIONARY JOINT STOCK COMPANY
2010 (nearly 61% compared to base year). Moreover, deduction from revenue was
also decreased resulted in increasing net revenue.
• Cost of goods sold also increased dramatically every year. In 2011, cost of goods sold
peaked up to 63.2% (of COGS in 2006) due to increasing price of raw materials in
production.
• Financial income was fluctuated over 5 years. In 2008, because of financial crisis,
financial income of company decrease about 35%. However, in 2009, company
quickly recover and gain 25% increase in financial activities. This data might be
positive result of stimulus package of government for national corporations.
• Except 2008 in crisis situation, financial expense of company reduced every year show
good sign of company’s controlling capital.
• General and administrative selling expense increased over years and reached up to
121% compared to base year. Increasing in expense led to 43.11% increase of net
profit from operating activities (lower than 2009) even though revenue in 2010 much
higher than in 2009.
• In 2009 and 2010, company was suffered from heavier tax burdens (increase about
140% to base year). Taxation leads to lower net profit after tax of 2010 (compared to
2009)
Overall, company perform fairly well over the last 5 years, however, it should improve
management’s systems in order to gain more profit in gross margin, lower COGS as much as
possible to deal with tax burdens.

II. Vertical analysis
1. Balance sheet analysis
Accounts Vertical
2006 2007 2008 2009 2010
% % % % %
Current asset 72.06 56.65 61.77 65.17 69.92
Cash 11.76 13.35 11.42 10.24 12.66
Current investment 0.00 0.00 0.00 2.60 0.00
Current account
receivable
21.59 13.36 12.21 14.46 10.68
Inventory 38.03 29.00 37.47 36.91 45.00
17
HAIHA CONFESTIONARY JOINT STOCK COMPANY
Other current asset 0.68 0.94 0.67 0.96 1.59
Non-current asset 27.94 43.35 38.23 34.83 30.08
Non-current account
receivable
0.00 0.00 0.00 0.00 0.00
Non-current asset 25.53 41.40 36.26 32.46 23.59
Other non-current asset 2.41 1.95 1.97 2.37 6.49
Total asset 100.00 100.00 100.00 100.00 100.00
Liabilities 56.36 49.09 47.43 38.89 43.06
Current liability 46.17 39.14 34.91 37.64 41.67
Non-current liability 10.19 9.95 12.52 1.25 1.39
Equity 43.64 50.91 52.57 61.11 56.94
Owner’s equity 41.13 48.18 49.92 57.57 56.94
Retained earnings 0.00 1.34 0.80 0.12 4.48
Other funds 2.51 2.73 2.65 3.54 0.00
Liabilities + equity 100.00 100.00 100.00 100.00 100.00

18
HAIHA CONFESTIONARY JOINT STOCK COMPANY
As you can see on the table, the company focused on investing in current asset rather
than in non-current assets. The current assets was always about more than 50% of total assets
and the amount continued to increase, as a result, the non-current assets decreased gradually.
Figure 5: Assets structure of HHC from 2006-2010
With the reference to capital structure, there was a balance between the weight of
liabilities and the weight of equity. The difference between liabilities and equity is not
significant but you can see a slight change in the trend of the 2 factors. The liability tended to
decrease while equity tended to increase. It means that the company switched to use its own
resource rather than borrow from outside
Figure 6: Capital structure of HHC from 2006-2010
From the table, most of the debt of the company derived from current liability, the long
term debt only took a small share in total liabilities. This phenomenon did not belong to only
HHC but it also is the specific feature of the industry.
2. Income statement analysis
From the table below:
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HAIHA CONFESTIONARY JOINT STOCK COMPANY
• Cost of goods sold was fluctuated through 5 years resulted from fluctuation of raw
materials in production (especially sugar’s price). COGS increased more than 1% (of
net sale) in 2010 compared to in 2009 because of suddenly change in sugar’s national
price.
• Gross profit increased in 2008 then decreased gradually during the next 3 years. Gross
profit dropped to 15.15% (decrease about 2.36% (of net sale) compared to the peak in
2008). Low figures in gross profit show characteristics of this industry. Companies in
that industry have to suffer high cost of goods sold (over 80% of revenue) than other
industries and high cost of selling expense (about 6% of revenue) to promote brand.
• Net profit from operating activities fluctuated through 5 years resulted from
fluctuation of general and administration expenses.

• Financial expense fells dramatically in 2010 might suggests that company is more
independent in controlling budget.
• Operating income tax increased over 5 years (except 2008) led to decrease in net profit
after tax. Company’s net profit after tax reached bottom during the last 5 years of
3.58% (of net sale).
20
HAIHA CONFESTIONARY JOINT STOCK COMPANY
21
2006 2007 2008 2009 2010
1. Revenue from good and
services

2. Deduction
3. Net Revenue 100.00% 100.00% 100.00% 100.00% 100.00%
4. Cost of good sold 84.23% 82.49% 83.80% 83.68% 84.85%
5. Gross profit 15.77% 17.51% 16.20% 16.32% 15.15%
6. Financial Income 0.33% 0.33% 0.17% 0.29% 0.23%
7. Financial Expense 1.09% 0.78% 1.11% 0.43% 0.02%
In which: Interest expense 1.05% 0.76% 0.74% 0.20% 0.00%
8. Selling expense 6.10% 5.98% 5.63% 5.87% 5.65%
9. General and
administration expense
3.85% 4.80% 4.85% 4.71% 5.25%
10. Net profit from
operating activities
5.06% 6.29% 4.77% 5.59% 4.47%
11. Others incomes 0.56% 0.90% 1.11% 0.61% 0.47%
12. Other expense 0.26% 0.46% 0.57% 0.29% 0.16%
13. Net Profit from other
activities

0.30% 0.44% 0.54% 0.33% 0.31%
14. Net profit from
cooporated company
- - - - -
15. Net profit before tax 5.36% 6.72% 5.31% 5.92% 4.78%
16. Corporate income tax 0.82% 0.99% 0.78% 1.46% 1.20%
17. Deferred corporate
income tax
-0.07% -0.05% -0.03% -0.02% 0.00%
18. Net profit after tax 4.61% 5.78% 4.57% 4.44% 3.58%
HAIHA CONFESTIONARY JOINT STOCK COMPANY
III. Ratios analysis
1. Liquidity ratios
a. Current ratio:
Current ratio 2006 2007 2008 2009 2010
HHC 1.561 1.447 1.769 1.731 1.678
BBC 1.270 3.758 2.172 1.815
KDC 3.751 2.221 1.537 2.253
Current ratio of in Hai Ha is always larger than 1, remaining stable between 1.5 and
1.7, which indicated the company’s good financial health and its ability to cover current
liabilities. Because Hai Ha focus only on its main business in confectionery industry, it didn’t
need to borrow much of money and keep company in the safe mode.
In the industry, Haihaco together with KinhDo and Bibica have been operating in safe
mode with current ratios higher than 1. Notwithstanding, KinhDo and Bibica ratios were too
high (larger than 2 in 2008, 2009 for Bibica and 2007, 2008, 2010 for KinhDo), this may be
due to the fact that two companies does not take full advantage of their capital. From this
table, we can also see that companies in confectionery industry didn’t use much borrowed
capital.
b. Quick ratio
Quick ratio 2006 2007 2008 2009 2010

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HAIHA CONFESTIONARY JOINT STOCK COMPANY
HHC 0.722 0.682 0.677 0.725 0.560
BBC 0.654 2.965 1.722 1.176
KDC 3.460 1.947 1.438 1.833
Hai Ha’s quick ratio is normally lower than 1 because of large amount of inventory.
This proved that Hai Ha is in fact not very healthy enough to use liquid assets to fulfill its
short-term obligations. Compare with high current ratio, Hai Ha’s ratio indicated that Hai Ha
depend much on inventories
Haihaco’s figure is quite low and changes slightly in the 5-year period, meanwhile
Bibica and KinhDo’s quick ratios follow reversing trends and end up with figures varying
between 1 and 2. The two competitors’ ability to clear out inventory quickly serves as their
strong advantage against Haihaco in the industrial competition.
c. Cash ratio
Cash Ratio 2006 2007 2008 2009 2010
HHC 0.255 0.341 0.327 0.272 0.304
BBC 0.315 0.280 1.302 0.485
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HAIHA CONFESTIONARY JOINT STOCK COMPANY
KDC 1.134 0.312 0.603 0.650
Cash ratio ignores inventory and receivables and only looks at the most liquid short-
term assets of the company, which can be most easily used to pay off current obligations. Hai
Ha’s cash ratio recently fluctuated under 0.5. In current market, this condition of Hai Ha is not
optimistic when its cash ratio is a little bit lower than competitors’
2. Activity ratios
a. Receivables turnover
Receivables Turnover 2006 2007 2008 2009 2010
HHC 9.044 10.999 16.288 17.348 20.396
BBC 14.974 9.127 9.484 12.950
KDC 2.197 2.774 2.327 2.098

With a high and increasing receivables turnover ratio, Haihaco seems to be highly
effective in extending credit as well as collecting debts. Apparently, Haihaco can take
advantage of this higher figure when competing with Bibica and KinhDo’s receivables
turnover.
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HAIHA CONFESTIONARY JOINT STOCK COMPANY
Compare with Bibica and Kinh Do, while Kinh Do remained at low level (below 5 times),
Bibica had some problems in 2008 and 2009, but then returned in 2010.
b. Inventory turnover
Inventory Turnover 2006 2007 2008 2009 2010
HHC 4.325 4.694 5.226 5.189 5.210
BBC 3.865 4.848 5.602 6.145
KDC 6.669 6.832 5.951 4.183
An average turnover of inventory helps Haihaco operate healthily in the market with
quite reasonable sales and an efficient rate of return. This situation happens the same to
Bibica and KinhDo.
About the two competitors: Bibica’s inventory turnover had significant increase from
3865 in 2006 to 6145 in 2010 and it became better than Hai Ha. In the contrast, KinhDo from
the highest inventory turnover ratio fell to the lowest, it can be explained by KinhDo extend
its business to some new area like real estate or finance…
3. Debt management ratios
a. Debt ratios:
Debt Ratio 2006 2007 2008 2009 2010
HHC 56.36% 49.09% 47.43% 38.89% 43.06%
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