TIỂU LUẬN TIẾNG ANH AN PHAT ’s FINANCIAL STATEMENT ANALYSIS

AN PHAT PLASTIC AND
GREEN ENVIRONMENTAL
JOINT STOCK COMPANY
AN PHAT ’S FINANCIAL STATEMENT ANALYSIS


CONTENTS
1

2

3

4

5

6

MACRO ANALYSIS.......................................................................................2
1.1

ECONOMIC GROWTH.............................................................................2

1.2

EXPORTS AND IMPORTS........................................................................3

1.3

INDEX OF INDUSTRIAL PRODUCTION...............................................5

1.4

INFLATION................................................................................................5

INDUSTRY ANALYSIS..................................................................................6
2.1

PLASTICS INDUSTRY IN THE WORLD.................................................6

2.2

VIETNAM PLASTICS INDUSTRY..........................................................7

OVERVIEW ABOUT BUSINESS ACTIVITIES..........................................9
3.1

INTRODUTION.........................................................................................9

3.2

SHAREHOLDER STRUCTURE AND ORGANIZATION........................9

3.3

AAA HAS TWO SUBSIDIARIES AND ONE ASSOCIATE COMPANY
10

3.4

POSITION OF AN PHAT COMPANY IN PLASTIC BRANCH..............11

3.5

ABILITY IN MANUFACTURING..........................................................11

INCOME STATEMENT ANALYSIS...........................................................12
4.1

Horizontal analysis....................................................................................12

4.2

Vertical analysis........................................................................................14

CAPITAL STRUCTURE AND ASSETS ANALYSIS.................................17
5.1

ANALYSIS OF CAPITAL SOURCING AND CAPITAL USE................17

5.2

ANALYSIS OF FINANCIAL STRUCTURE...........................................19

FINACIAL RATIOS ANALYSIS..................................................................21
6.1

SHORT-TERM SOLVENCY RATIOS......................................................21

6.2

PROFITABILITY RATIOS.......................................................................22

1 MACRO ANALYSIS
In the First 6 months GDP rose 5.52% as estimates. Growth rates higher
in this year despite the general rate of the same period of year 2012 - 2014 (r
espectively 4.93%, 4.9%, 5.22%), but there are signs of slowing compared with
the speed rose 6.28% in the first 6 months of 2015.

1


For Vietnam's economic prospects in
2017, most experts, organizations and the
international media have stated that Vietnam
will be a bright spot of economic growth in
Southeast Asia in this year.

1.1 ECONOMIC GROWTH
Vietnam's economy has expanded an
annual 6.68 percent in the fourth quarter of 2016, compared to an upwardly
revised 6.56 percent growths in the previous three months, a preliminary
estimate from the General Statistics Office showed. It was the strongest
quarterly growth since the December quarter of 2015, boosted by rising
exports. For full year of 2016, the economy grew by 6.21 percent, slowing from
a 6.68 percent expansions in the same period a year earlier and falling short of
the government's target of 6.7 percent. It was the first annual slowdown since
2012, mainly driven by adverse weather, a marine environmental disaster and
an unfavorable global economy. GDP Annual Growth Rate in Vietnam averaged
6.47 percent from 2000 until 2017, reaching an all time high of 8.48 percent in

the fourth quarter of 2007 and a record low of 3.12 percent in the first quarter
of 2009.

2


Manufacturing, construction, and services expanded in Viet Nam
robustly in the first half of 2016, driven by inflows of foreign direct investment,
but growth in gross domestic product was weighed down by weak
performance in agriculture and mining. Although the economy is expected to
pick up in the second half of 2016, Growth forecasts for the year as a whole
and for 2017 are nevertheless revised down. Inflation has stirred, as expected,
but is forecastted to remain moderate.

1.2 EXPORTS AND IMPORTS
According to statistics 17.01.2016 of General Administration of
Customs, the total import-export turnover in May 12/2016 reached more than
33.66 billion dollars, up 3.5% respectively increase more than 1.15 billion
dollars from the previous month. In particular, exports reached more than
16.58 billion, up 2.8%, corresponding to 451 million increase over the
previous month; imports reached nearly 17.08 billion dollars, up 4.3%
respectively, up 702 million US dollars.
By the end of 12 months / 2016 total exports and imports over the
country reached 350.74 billion dollars, up 7.1%, corresponding to an increase
of nearly 23.16 billion dollars over the same period last year. In particular,
3


exports reached 176.63 billion US dollars, up 9%, respectively increase 14.62
billion; imports reached 174.11 billion US dollars, up 5.2%, more than 8.54

billion USD. Balance of trade in goods deficit country May 12/2016 494
million, bringing the trade surplus in 2016 of the more than $2.52 billion.

Exports: Export turnover in the first half of this year was estimated at $
82.24 billion, up 5.9% over the same period of 2015 (6 months in 2015, up
9.2% over the same period last year). This is a low increase, even considering
the correlation with GDP growth this year. Low export growth was mainly due
to a 6.3% fall in export prices, including falling crude oil prices and export
prices of processed goods. Excluding the price factor, export growth in the first
6 months was 10.1% (albeit still lower than the growth rate of 13.4% in the
same period last year but higher than that of the same period last year).
Imports: In the first 6 months, import turnover reached $ 80.7 billion,
down 0.5% over the same period last year. The surplus in the first six months
was estimated at $ 1.54 billion, equaling about 1.9% of export turnover. Import
prices of raw materials, fuels and materials fell sharply over the same period,
leading to a decrease in total import value despite the increase in imports of
commodities, such as iron and steel, petroleum, liquefied gas , Plastic
materials, rubber, paper, textile fiber, metal ...

4


1.3 INDEX OF INDUSTRIAL PRODUCTION
Industrial production in Vietnam jumped 15.2 percent year-on-year in
February of 2017, compared to a 0.7 percent growth in January. It was the
strongest increase since January 2015, mainly driven by a surge in the output
of processing (22.4 percent from 6.6 percent in the prior month). In contrast,
mining output fell 8.6 percent (compared to a 2.4 percent rise in January). For
the first two months of 2017, industrial output rose 2.4 percent, much slower
than a 6.6 percent gain in the same period a year earlier. Industrial Production

in Vietnam averaged 9.06 percent from 2009 until 2017, reaching an all time
high of 28.40 percent in January of 2010 and a record low of -10.10 percent in
February of 2013.

1.4 INFLATION
CPI accelerated in recent months, rose 0.46% in June from the previous
month, an increase of 2.35% compared with 12/2015 and six-month average
increase of 1.72% over the same period. The Main cause is due to the recovery
of world oil prices caused domestic gas prices are continuously adjuste.
5


Nevertheless, the CPI rose by 6 months of the year remained below 5%
of the target for the whole year. Our highly price inflation remains below than
5% by the end of this year thanks to the mainly oil prices stabilize at 45-50
USD / barrel and gasoline prices will not be adjusted compared to the first two
quarters. The 6/2016 core inflation rose 0.13% month over the previous
month and increased 1.88% over the same period of last year. Average core
inflation of the first 6 months in 2016 increased 1.80% compared to the same
period in 2015. Basic inflation low supportted in running monetary policy of
the central bank to support economic growth.
The inflation 4,74% lower than target that is proposed.
According to GENERAL STATISTICS OFFICE of VIET NAM , there are 6
commodity groups that their price has increased. Garment has increased by
0.25%, beacause of shopping for winter clothes. Drinks and cigarettes have
increased by 0.21%. Buldibng and marterials have increased 0.19% beacause
need of repairing house in the last months of year. Equipment and household
appliances increased by 0,08%. Medical group has increased , CPI index
increased by 2,7%.
The other commodities ‘ve decreased such as traffic, food services,etc.

Education group hasn’t changed. Inflation 2016 is higher than 2015. The
inflation in 2017 is forecasted to depend on adjustment of the public services :
if public services are not adjusted, inflation is forecasted about 4%. If public
services are adjusted , inflation is predicted about 5%.

2 INDUSTRY ANALYSIS.
2.1 PLASTICS INDUSTRY IN THE WORLD
Plastics industry is an integral and integral part of the global economy.
Plastic is the name of the material means that "flexible and easy to shape".
6


Recently, plastic is also used to
refers to polymeric materials,
consisting of repetitive chains of
monomers formed primarily of
carbon and hydrogen atoms,
under appropriate conditions,
joined to the chain structure.
Over the past 150 years,
plastic materials have been constantly improved and have contributed greatly
to the development and advancement of human beings. Plastics are present in
computers, cell phones and most of modern medical advances. Thanks to its
light weight and good insulation, plastic help save fuel for heating and
transportation. Thanks to its cheap price, plastic replaces much of the natural
material, making more of the material produced, at a lower cost, lighter, safer
and stronger.
More than 90% of plastic production is produced from fossil fuels. The
plastics industry consumes about 6% of global oil demand, which is equivalent
to that of the aviation industry. If plastics continue to grow as predicted, by

2050, the plastics industry is expected to consume 20 percent of its oil output
and 15 percent of global carbon emissions.
The United States, Europe and Asia produce 85% of plastic production,
with Asia accounting for about half, in which China is the largest plastics
producer with 26% of global output. The United States and Europe, however,
account for only about 40 percent of the production of plastics, but the
majority of global businesses involved in plastic packaging are headquartered.
These are decision makers at the start of the plastic value chain.

2.2 VIETNAM PLASTICS INDUSTRY
 Strong growth over the years
Over the past few years, the plastics industry has grown rapidly,
becoming one of the most dynamic sectors of the economy. The growth rate of
the plastics industry is just behind the telecommunications and textile sectors.
The sector's output increased from 890 thousand tons in 2000 to 13,238
thousand tons in 2015, corresponding to an average growth of 19.7% per year.
The role of the plastics industry in the economy is increasing. As of the
end of October 2015, the plastics industry contributed 4.8% to the total
industrial production value of the whole country, and it is forecasted that the
total production value of the industry will reach 8.81 billion USD in 2020.
7


Plastic production increased sharply thanks to high economic growth.
Per capita income increased from $740 in 2006 to $1,078 in 2014. Population
increased from 77.6 million in 2000 to more than 94 million in 2015, while
plastic consumption per capita also increased. From low starting point.
According to the Vietnam Plastics Association, Vietnam's per capita plastic
consumption is projected to increase to 45 kg per year by 2020, equivalent to a
compound annual growth rate of 4%.

 Most are small and medium enterprises
Nationally, there are about 1,500 plastic enterprises operating. The
number of domestic firms is still dominated by 85%. More than 80% of local
businesses are small and medium sized enterprises (SMEs) with limited
technology. About 85% of equipment in the industry is imported. The domestic
plastics industry does not have the research and technology and technology
foundations, so it has not produced high-level details to participate in the
global supply chain.

 Consumption in the domestic market increased sharply
The
plastic
products
mainly serve the domestic
market, export is very lowed,
accounting for only 1.2 - 1.5% of
total output. Vietnamese plastic
product s are available at all retail
channels in the country.
Demand in the domestic
market is growing rapidly under
the impact of low plastic
consumption per capita and the recovery of the construction plastics segment
(+ 15% in 09 months 2015). In 2014, consumption of plastic per capita
reached 40 kg / person / year, much lower than many countries in the region
and in the world (69.7 kg / person / year), in the US and EU 120 kg / person /
year . It is forecasted that this consumption will increase to 45 kg by 2020.
Export value of plastics by 2015 will be $ 2.48 billion, down 0.1%
compared to 2014, of which plastics export about 2 USD billion, plastic

materials export about 475 million USD).

8


3 OVERVIEW ABOUT BUSINESS ACTIVITIES
3.1 INTRODUTION
An Phat Plastic and Green Environment Joint Stock Company (AAA)
(formerly known as An Phat Plastic and Packaging Joint Stock Company) was
established on March 09, 2007 with initial chartered capital of VND 30 billion.
Precursor of AAA Anh Hai Duy Co., Ltd was established in 2002 with 02
members the charter capital is VND 500 million. AAA transformed into an old
company in 2007 and listed on the HNX in 2010.

3.2 SHAREHOLDER STRUCTURE AND ORGANIZATION
AAA's shareholder structure includes 19.5% foreign ownership, 31.9%
Ownership of the Board of Directors and the rest of domestic shareholders.
The management of AAA includes Mr. Pham Anh Duong, Chairman, Mr..Nguyen
Le Trung, CEO, and other members of the board Administrators include, Mr.
Pham Hoang Viet, Ms. Hoa Thi Thu Ha, and Mr. Pham Dinh Ngu.

9


SHAREHOLDER STRUCTURE
19.10%
0.20%

31.90%

0.40%

Foreign organizations 0.2%
Director board 31.9%
Domestic individuals 48.4%
Foreign individuals 0.4%
Foreign Organization 19.1%

48.40%

3.3 AAA HAS TWO SUBSIDIARIES AND ONE ASSOCIATE COMPANY
An Phat Plastic and Mineral Joint Stock Company - Yen Bai: The
company has capital Chartered capital of VND86 billion, of which AAA owns
91.86% stake. Currently, An Phat Yen Bai owns a factory with an area of 40,000
m2 is equipped with modern production lines capacity of 20,000 tons of
product per year. Main product of the company is ANPHAT CALBEST Additive
(PE and PP) Additive used as additives in plastic products ...In addition ANPHAT
CALBEST additives are used in public manufacturing construction materials:bait
powder, paint, industrial cosmetic production, paper industry,etc.
Thakkhek Plastic Company Limited: is a company established under
developed project number 007 / TSZ on 05/03/2013 between the separate
Thakhek Special Economic Zone Authority Council Governance Thakhek
Plastic has a chartered capital of $ 2.5 million, owned by AAA 100% capital.
In addition, AAA also associates with Vinh Plastic Packaging JSC
Specialized in manufacturing and trading cement packaging, agricultural
packing Products and plastic products. Plastic and Packaging Joint Stock
Company Vinh has a chartered capital of VND29,999,890,000 on December 31,
2015 in which An Phat owns 32.22% of capital.

Subsidiary and affiliated

company of AAA

Ownership
rate (%)

Charter
capital
( biliion)

Invesment
value
( biliion)

Subsidiary
10


An Phat Plastic and Mineral
Joint Stock Company - Yen Bai

91.86

86

79

100

44

44

32.22

30

9.6

Thakhek Plastic Company
Limited - Laos
Associated company
Vinh Plastic Packaging JSC
Total

132.6

3.4 POSITION OF AN PHAT COMPANY IN PLASTIC BRANCH
An Phat is a company that they not only manufacture and serve the
domestic market but also export to the external markets. An Phat company has
a biggest capacity in Vietnam that they are able to manufacture 4000
tons/month.
95% of products ,which An Phat produced, have high quality. An Phat is
in the top 10- best companies produce self-decomposing bag in Asia-Pacific
Economic Cooperation
( arcoding to the statics of Chevron Phillips )
An Phat is senior in plastic branch. They have a lot of traditional
customers; good relations in business. An Phat’s market share is to export
products for big brand all over the world such as Public Embal, Compoplast
,etc. Those company distribute products to European markets.
On the other hand, An Phat company has imported a huge amount of

raw materials for manufacture. They can easily negotiate to buy materials with
cheaper price and discounts.

3.5 ABILITY IN MANUFACTURING
Produce the plastic things : An Phat company has 4 factories in Hai
Duong province with the capacity 4000 tons/month. Two more factories are
being built (2015).If the factories is ready , the total capacity can reach 80000
tons/year. An Phat can become a top 1 company about manufacturing plastic
bags in Southest Asia. Most products are exported to Japan, Europe, etc.
Plastic
bags
:
include
bags
for
supermarket,garbage bags , coloured or be colourlesse
is up to customer’s orders. Especially, An Phat
manufacture self-decomposing plastic bags which can
be self-decomposed in 3 months to 2 years and no harm
to the environment.

11


Plastic film : is supplied mainly for the factories
or industrial sector. However, from 2016-2020, An Phat
will diversify and improve quality of plastic films to
expand their market.
Plastic seed: An Phat supplies plastic seeds with
a huge of amount include pigment, masterbatch,etc.

4 INCOME STATEMENT ANALYSIS
4.1 Horizontal analysis

 NET SALES

12


NET SALES
2500
2000
1500

2053.15
1531.83

1521.96

2 01 4

2 01 5

1000
500
0

2 01 6

The net revenue from sales

and service activities of AAA has abnormal fluctuations. By 2015, this rate
decreased by 0.64% but by 2016 it increased by 34.9%. As such, we see that
although sales felt during the 2014-2015 period, but by 2015 - 2016 sales
revenue increased quite high, It proves that the company has controlled quite
well the growth, the company has quickly restored its business.

 EBIT
N et pro fi t /( l o s s ) bef o re t ax a nd i nt e re st
200.00
180.00
160.00
140.00
120.00
100.00
80.00
60.00
40.00
20.00
0.00

175.29

85.77
59.73

2014

2015

2016

Total earning before
tax and interest in 2015 increased by 20,141 billion compared to 2014, the
rate increased 47.1% but 2016 compared to 2015 increased to 88,515 billion,
the rate increased 140.71% and increased very fast compared to the growth
rate Of 2015. To analyze the cause, we need to analyze the impact of each
profit department.
Firstly, the core business profit in 2015 increased by VND 9.72 billion
compared to that of the year 2014, increasing by 17.68%; But in 2016
compared with 2015 we see this index increased to 100,685 billion, the
increase rate reached 155.61%.
Second: Financial operating profit (without interest) is the opposite.
By 2015, this index increased by VND15.02 billion compared to 2014, the
increase rate is 350.12%; But in 2016 compared with 2015, decreased 17.44
billion, the rate decreased 90.32%. This rate drops rapidly abruptly, the
company needs to reconsider its financial operations.
Third: Other profits increased very fast, in 2015 the company profits
1.75 billion, up 1.29 billion over 2014, the rate increased 280.43%. By 2016
13


this indicator will increase by VND 6.28 billion, up 358.86% over 2015. Other
profit increases too high but this is not a good and good result.
Thus, in 2015, EBIT increased by 26.03 billion dong due to the increase
of core business profit of 9.72 billion dong, profit of financial activities
increased 15.02 billion dong and other profit increased 1.29 billion dong. In
2016, EBIT increased by VND89,852 billion mainly due to an increase in core
operating profit of VND100,685 billion and other profit increased by VND6.28
billion. However, financial income felt VND17.44 billion.

 EBT
Profit before tax in 2015 increased by 20,141 billion VND compared to
2014, the rate increased by 47.1%; In 2016, it increased by 88.515 billion
dong, an increase of 140.7 percent. The reason that EBT increased for two
years at a higher rate than that of EBIT was due to the in crease in interest
expense ratio which was lower than EBIT, interest expense in 2015/2014
increased by 34.71%, in 2016 / 2015 increased by 4.42%.

 EAT

Earning after tax
130.64

140.00
120.00
100.00
80.00
60.00
40.00

54.76
36.27

20.00
0.00

2014

2015

2016

After-tax
profit
increased quite high in 2015 compared with 2014, the increase of 18.48
billion, increasing 50.95%; By 2016, this rate increased sharply, increasing
78.88 billion VND, increasing 138.59% compared to 2015. The reason for the
higher EAT growth rate in 2015 than the increase in EBT was due to a 25.58%
corporate tax expense that was lower than the EBT increase; By contrast, in
2016 the increase in corporate tax expense by 154.97% is higher than the
increase in EBT, which should make the rate of EAT slower than EBT.

 SUMMARY
In summary, by analyzing the volatility of profit margins and profit
components over the past 3 years, we see a fairly high profit growth rate in
2015 and a sharp increase in 2016. In particular, the company's financial

14


performance declined in 2016, the increase in profit mainly due to the increase
in core operating profit.

4.2 Vertical analysis

 EBIT/NET SALES
Profit before tax and
interest on sales in 2014 is
3.90%, 5.64% in 2015 and
8.54% in 2016. Thus,

compared to 2014, EBIT on
revenue in 2016 increased
4.64%, while in 2015
increased by 1.74%. The
rate of profit before tax and
interest on revenue of 3.9%
is achieved by 2014 due to the rate of major business operations on sales
reached 3.59% plus contribution of financial activity is 0.28% and other profit
reached 0.03%.

 EBT/ NET SALES

15


The EBT on Sales in 2014 was 2.79%; in 2015 was 4.13%, 1.34% up
compared to in 2014; 2016 was 7.38%, up 3.24% over in 2015. The reason
was that the main operating on sales in 2015 increased less than the increased
in EBIT margin on sales was due to the ratio of loan interest expenses on sales
Earnings
in
2015
increased by 0.39%
compared to 2014, the
EBT margin on sales in
2016 increased more
than the growth rate of
EBIT on sales was due
to the ratio of loan
interest expenses on

sales in 2016 decreased
0.34% compared With
2015.

 EAT/ NET SALES
Return on Sales
(ROS) in 2014 was
2.37%; In 2015 it was
3.60%, an increase of
1.23% over in 2014,
lower
than
the
increase in EBT on
Sales was due to the
increase in corporate
income taxes on sales
in 2015 compared to
2014 was 0.11%. In 2016, ROS was 6.36%, an increase of 2.77% over 2015,
lower than the increase in EBT margin on sales because the corporate income
taxes expense on sales in 2016 has increased over 2015 was 0.11%.

 SUMMARY
ROS in 2015 increased by 1.23% over in 2014 due to the increase in the
effectiveness of savings in the main operating cost, the increase in contribution
of the other profit, the increase in interest expense on revenue led to an
increase in total ROS Plus 0.35% (0.66% + 0.08% - 0.39%). In addition, the

16

impact of increased pre-tax financial income on sales and corporate tax
expense on sales increased ROS by 0.88% (0.99% - 0.11%).
ROS in 2016 increased by 2.77% over 2015 due to the increase in core
operating expenses, the increase in other contribution, the lower interest
expense ratio resulted in an increase in total ROS Plus 4.42% (3.8% + 0.28% +
0.34%). However, the impact of lower interest-bearing financing ratios on
revenue and corporate tax expense on revenue increased ROS by 1.66%
(1.18% + 0.48%).

5 CAPITAL STRUCTURE AND ASSETS ANALYSIS
5.1 ANALYSIS OF CAPITAL SOURCING AND CAPITAL USE

17


 CAPITAL USE
In 2016, An Phat Company used resources : increase the fixed asssets by
802,289 million VNĐ (66.09% of the use of the resources). Restoring more
inventories by 232,352 million VND (19.14%). Receivables was 130,682
million VND (10.77%). Moreover, others assets was
1.75%, capital
construction in progress was 1.43%.

 CAPITAL SOURCES

18


In order to fund such capital use, AAA Company used the following

capital sources: Short-term loans of VND 465.11 billion, which contributed to
38.33% of total capital demand, additional loans Long-term VND374.4 billion
(30.8%), an increase of long-term investments of VND180.2 billion (14.8%).
Thus, in 2016 AAA company focused on capital investment to expand
production scale. In order to fund the expansion, AAA used mainly from
external sources, which accounted for 69.18% of total funding, and a portion of
internal capital was long-term investments.

 SUMMARY
In 2016, the company increased long-term debt and short-term debt,
increased equity, so the capital increase during the period was mainly to
increase long-term capital and short-term capital, suitable for capital use
purposes. During the period, there was an increase in assets. However, longterm capital outflows increased significantly over long-term assets, which
significantly changed the company's financial structure towards a more stable
one.

5.2 ANALYSIS OF FINANCIAL STRUCTURE

19


 NET WORKING CAPITAL

Working Capital
800
700
600
500
400
300

200
100
0

791.18
585.7

01/01/2016

31/12/2016

The table 2 shows that
the company's net working capital at the beginning of the year and at the end
of 2016 is positive, showing that the long-term assets in the financial structure
at the beginning of the year and at the end of the year are f inanced entirely by
long-term assets. The company does not use short-term funds to invest in
long-term assets or, in other words, AAA's long-term assets are financed by
stable capital.
As compared to the beginning of the year, AAA's net working capital at
the end of 2016 fell 149. 714 billion, from 221.56 to 71.846 billion. Cause of
2016 long-term capital of the company increased 499.08 billion (long-term
debt increased 374,376 billion, owner's capital increased 124.7 billion) while
long-term assets increased 648.79 billion. The declining working capital,
safety and solvency of the AAA company has deteriorated.

 NET WORKIG CAPITAL / SHORT-TERM ASSETS
At the beginning of the year, Long-term assets is not only long enough to
finance long-term assets but 27.42% for short-term assets.By the end of 2016,
20

this rate has dropped significantly to 6.04%.Thus, compared to the beginning
of the year, the proportion of long-term funding sources for short-term assets
fell by 21.03%.93.96% of short-term assets are funded by short-term funds.
As such, the risk of short-term solvency of AAA has increased
significantly, the trend of financial structure changes in 2016 is not reasonable,
the company should take appropriate financial restructuring measures. than.

 NET WORKING CAPITAL/WORKING CAPITAL
Net working capital on working capital at the beginning of the year is
37.83%, at the end of the year, this ratio dropped to 9.08%, Down 28.75% over
the beginn ing of the period.

Chart Title
100%

71.85

221.57

80%
60%

791.18

585.7

40%
20%
0%

01/01/2016
Working Capital

31/12/2016
Net working capital

The reason for
the decrease was due to working capital increasing by VND 205.48 billion, net
working capital decreased by VND 149.41 billion. During the period the
company increased its short-term liabilities(VND255.20 bilion) and long-term
liabilities (VND 374.38 bilion), to buy more property (VND315.39 bilion),
expand production.

6 FINACIAL RATIOS ANALYSIS
6.1 SHORT-TERM SOLVENCY RATIOS

21


Curre nt Rati o
1.60
1.34
1.40
1.20
1.00
0.80
0.60
0.40
0.20

0.00
2 014

1.38
1.07

2 015

2 016

From the end of 2014 to
the end of 2016, the current ratio is always maintained by An Phat at more
than 1, indicating that the short-term assets value is enough to ensure the
payment of payable debts in the next year.

Ac id - te st Rati o
1.20
1.05
1.00

1.03

0.80

0.63

0.60
0.40
0.20
0.00

2 014

2 0 15

2 0 16

The acid-test ratio at the end of
2016 is 0.63, down from 0.4 at the end of 2015 and lower than the end of 2014
at 0.42. Thus, if the value of inventory and other short-term assets is excluded,
then one short-term debt at the end of 2016 will have 0.63 assets with high
liquidity to ensure the performance of payment obligations.

6.2 PROFITABILITY RATIOS
 ROI
XItems

ROI
EBIT/ Revenue
Revenue/average capital
( round)

2015
5.39%
5.64%

2016
7.61%
8.54%

Change

2.22%
2.90%

0.9559

0.8915

-0.0644

The table illustrate ROI index in 2016 is higher than index in 2015. That
was a result in saving effectively expense. In 2016 , company could save 2.9
dong for activity expenses when earn 100 dong. Averagely, company earned
5.64 dong EBIT for every 100 dong in revenue in 2015. Compare with ROI in
2015, company earned 8.53 dong for every 100 in revenue. In the capital
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respect in 2016, 0.89 dong in revenue was created from 100 dong in average
capital. Unlike capital in 2016 , capital in 2015 was higher which was at 0.96.
In total, the revenue created from average capital decreased by 0.06 dong.

 ROA
Items
Average capital
EAT
Revenue
I
EAT+I*(1-t)=NOI
ROA
NOI/Revenue

Revenue/Average capital

2015
1592.19
54.755
1521.96
22.86
73.04
4.59%
4.80%
0.9559

2016
2302.93
130.64
2053.15
23.87
149.74
6.50%
7.29%
0.8915

Change
710.74
75.89
531.19
1.01
76.69
1.91%
2.49%

-0.0644

Based on the results of the above analysis, we see that the ROA of 2016
is 1.91% higher than that of 2015, the company achieved this result due to the
increased cost-effectiveness resulting in a net profit margin of 2.49% However,
the round of capital fell by 0.0644 laps.
If 2016, the rotation of capital is not changed, the effect of cost savings
increase will increase ROA: 2.49% x 0.9559 = 2.38%.
As the ROI decreases, ROA decreases: -0.0644 x 7.29% = -0.4695%.
Summarize the effect of cost-saving efficiency and capital saving
efficiency = 2.38% - 0.4695% = 1.9105%.

 ROE
ITEMS
EBIT
Average capital
ROI
EAT
Loan interest expenses
Tax (%)
Average owner's equity
ROA
ROE

2015
85.77
1592.19
5.39%
54.755
22.86

20%
757.03
4.59%
7.23%

2016
175.29
2302.93
7.61%
130.64
23.87
20%
843.56
6.50%
15.49%

Change
89.53
710.74
2.22%
75.885
1.01
0%
86.52
1.91%
8.26%

ROE in 2016 was 15.49%, making a fair rise of 8.26% compared to
2015. This pointed out that the effectiveness of equity using after loan and tax
impact were improved in 2016. However, this ratio was still low, the company

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should have plans to save costs, improve production capacity in order to make
more profits for its shareholders.

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