Đang tải... (xem toàn văn)
INTRODUCTION 3 CHAPTER 1: GENERAL OVERVIEW OF FPT CORPORATION 4 1.1. General information about Company 4 1.2. Business environment of the company 5 1.2.1. External environment 5 1.2.2. Internal environment 7 1.3. Achievement of FPT Corporation 8 1.4. Financial statements of FPT Corporation. 9 CHAPTER 2: ANALYZE FINANCIAL RATIOS OF FPT CORPORATION 17 2.1. Liquidity of shortterm assets and related debtpaying ability of FPT Corporation. 17 2.2. Longterm debtpaying ability of FPT Corporation. 29 2.3. Profitability of FPT Corporation. 32 CONCLUSION 42
FINANCIAL REPORTING & ANALYSIS COMPANY: FPT CORPORATION TABLE OF CONTENT INTRODUCTION CHAPTER 1: GENERAL OVERVIEW OF FPT CORPORATION 1.1 General information about Company 1.2 Business environment of the company 1.2.1 External environment 1.2.2 Internal environment 1.3 Achievement of FPT Corporation 1.4 Financial statements of FPT Corporation CHAPTER 2: ANALYZE FINANCIAL RATIOS OF FPT CORPORATION 17 2.1 Liquidity of short-term assets and related debt-paying ability of FPT Corporation 17 2.2 Long-term debt-paying ability of FPT Corporation 29 2.3 Profitability of FPT Corporation 32 CONCLUSION 42 INTRODUCTION Established during a period of development in Vietnam, FPT Corporation took the lead in venturing into the entirely new and challenging field of information technology With strong belief in the future, FPT relentlessly laid out specific plans and executed them rigorously As a result, FPT continuously grew and became one of the leading economic conglomerates in Vietnam Alongside the country's development, FPT made significant contributions to the economic growth FPT operates in various sectors including software solutions, software export, ERP services, distribution of IT and telecommunications products, system integration, internet access services, technology training, computer assembly, research and development, online content services, infrastructure and real estate development, financial and banking services, education and training, retail, television entertainment, and advertising FPT expanded not only within Vietnam but also worldwide, gaining the trust of customers and partners FPT is a pioneer in digital transformation and a leader in consulting, providing, and deploying technology and telecommunications services and solutions Currently, FPT accompanies customers in 29 countries and territories globally to realize their strategies and business development goals based on technology Therefore, I would like to provide an analysis of the financial report of FPT Corporation to gain a better understanding of this conglomerate CHAPTER 1: GENERAL OVERVIEW OF FPT CORPORATION 1.1 • General information about Company Company Name: FPT Corporation • Abbreviation: FPT Corp • Headquarters: FPT Building, Cau Giay District, Hanoi City, Vietnam • Phone Number: +84 (4) 38560300 • Fax: +84 (4) 38560316 • Tax Identification Number: 101248141 • Website: www.fpt.com.vn • Chartered Capital: 4,594,266,840,000 VND • Date of establishment: September 13, 1988 • Main business sectors: Technology, Telecommunications, and Education • Date of stock listing: December 13, 2006 (the stock code FPT) • Organizational structure of the company: (Sources: FPT Corporation) After more than 30 years of development, FPT has become one of the leading IT companies in Vietnam and is ranked among the Top 100 global outsourcing service providers According to the United Nations Development Program's statistics, FPT was the 14th largest company in Vietnam in 2017 According to VNReport, it was the third largest private enterprise in Vietnam in 2012 Currently, FPT Corporation is ranked 17th in the Top 500 largest private enterprises in Vietnam, as evaluated and voted by VNReport With core business sectors in Technology and Telecommunications, FPT now has a telecommunications infrastructure covering all 63 provinces and cities in Vietnam and is continuously expanding its operations in the global market, with a network of 46 offices in 22 countries worldwide 1.2 Business environment of the company 1.2.1 External environment a Suppliers The company has built long-term and strategic relationships with suppliers of products and services, bringing significant value-added to them FPT Corporation is a trusted partner of many global customers, including Microsoft, Amazon, and Apple On August 25, 2015, FPT Shop officially became a comprehensive partner of Apple by importing iPhone and iPad devices directly This means that FPT Retail has imported all products directly from Apple b Customers/ Partners FPT's customer base is diverse and includes both corporate and individual customers across various sectors such as government agencies, defense and security, finance, accounting, education, telecommunications, transportation, banking, and more The company is not only focused on the domestic market but also expanding its presence in international markets Overall, due to the nature of the products and services provided by FPT, its customers are primarily large organizations and enterprises Some major partners/customers of FPT Corporation as follow: • Rheem Australia partnered with FPT Software in mid-2021 with the goal of integrating and implementing SAP ERP into their business operations • Hitachi Solution has been collaborating with FPT Software since 2003, not only in software development but also in various other business areas • Toshiba's IT solutions company started working with FPT in 2002 • Denso Manufacturing Vietnam is collaborating with FPT in various areas, particularly in digital transformation for business operations • Toppan Forms Operation collaborates with FPT in the field of process automation • Other customers include Sanyo, Panasonic, Dell, Nissen, HP, and more c Economy - Society In 2022, the global economy is facing significant challenges, rapid and unpredictable fluctuations, and high levels of instability Inflation has reached its highest level in decades, forcing countries to tighten monetary policies However, the economy of Vietnam has shown strong recovery in 2022 after the Covid-19 pandemic The macroeconomic indicators are stable, inflation is under control, and major balances are ensured According to the Digital 2020 report from We Are Social, the number of mobile subscriptions in Vietnam is 145.8 million subscribers (equivalent to 150% of the total population), the number of internet users is 68.17 million people (equivalent to 70% of the population), and the number of social media users is 65 million people (equivalent to 67% of the population) The Covid-19 pandemic has led to significant changes throughout the region In 2020, over one-third of digital users started using online services for the first time due to Covid-19 According to Google's statistics, 95% of users intend to continue using online services even after the pandemic Among the total number of digital service users, new users in Vietnam account for 41% This makes Vietnam the country with the highest rate of new internet users in the region The global process of globalization, international integration, and the fourth industrial revolution have created many opportunities and brought significant value from harnessing the economic and cultural potential in the digital environment, which has driven the strong development of the FPT Corporation 1.2.2 Internal environment a Shareholders Shareholder structure: • State ownership: 5.96% • Foreign ownership: 49% • Other ownership: 45.04% Major shareholders: • Truong Gia Binh, Chairman of the Board of Directors, holds 76,741,442 shares, representing 7.00% ownership • State Capital Investment and Trading Corporation holds 63,506,626 shares, representing 5.79% ownership • Macquarie Bank Ltd holds 37,075,015 shares, accounting for 4.735% ownership b The workforce As of December 31, 2021, the workforce of FPT has increased by 21.3% compared to the same period, reaching 37,180 employees Among them, the Technology block continues to play a core role with 24,068 employees, accounting for 64.7% of the total workforce of the Corporation, an increase of 28.5% compared to the same period This is considered the core force that plays an important role in expanding the ecosystem, the digital transformation solution "Made by FPT," and helps create new growth momentum for the Corporation in the long term Additionally, the number of employees in the Telecom block ranks second with 10,346 personnel, accounting for 27.8% of the total workforce Lastly, the Education, Investment, and others block make up 7.4% equivalent to 2,766 employees operating in this field 1.3 Achievement of FPT Corporation In Vietnam • Labor Medal Grade (1998-2002), received in 2003 • Hero of the People's Armed Forces (1998) • Top 500 Largest Enterprises in Vietnam according to VNR500 rankings (from 2007 to 2021) • Top 20 Largest Private Enterprises in Vietnam according to VNR500 rankings (from 2007 to 2021) • Top 50 Most Valuable Company Brands in Vietnam (from 2015 to 2021) • Number in Vietnam in terms of revenue and workforce in the integrated system integration field; providing IT services, online advertising, and technology product distribution • Number in Vietnam for fixed broadband internet access services (ICT White Paper - Vietnam ICT - by the Ministry of Information and Communications in 2014) • FPT has been awarded the title of #1 Best Workplace in the IT/Software & Application/E-commerce industry and is in the Top 50 Vietnamese Companies with an attractive employer brand in 2021 • 'Made by FPT' products have been honored with the Sao Khue Award (from 2015 to 2022) • FPT has been recognized by Forbes Vietnam in the Top 50 Best Listed Companies (from 2012 to 2022) • FPT is among the top large-cap companies with the most preferred Investor Relations (IR) activities and the highest rated IR activities by financial institutions (2022) In the world • FPT is in the Top 100 Outsourcing Service Providers (IAOP) (2014) • FPT is in the Top 300 Best Performing Businesses in Asia (2015) • FPT is in the Top 130 companies with the best workplace environment in Asia (2018) • FPT is recognized by Asia Money as the most outstanding company in the field of IT and Telecom services in Vietnam (2021 and 2022) • The only Vietnam enterprise honored in the Most Valuable Corporate Response category for effective Covid-19 response according to the Stevieđ Award ã FPT University is the first university in Vietnam to be ranked by QS, a leading global university ranking organization, achieving a 3-star rating for three consecutive terms 1.4 Financial statements of FPT Corporation BALANCE SHEET Unit: VND For the Year Ended No December 31, 2020 December 31, 2021 December 31, 2022 ASSETS A- CURRENT ASSETS 8,198,590,237,083 9,709,383,802,038 8,877,822,091,860 I Cash and Cash equivalents 2,062 744 834,148 2,096,322,957,509 1,602,587,113,047 Cash 151,644,834,148 428,322,957,509 374,987,113,047 Cash equivalents 1,911,100,000,000 1,668,000,000,000 1,227,600,000,000 II Short-term financial investments 4,534,100,000,000 5,778,900,000,000 5,313,061,859,331 Held-to-maturity investments 4,534,100,000,000 5,778,900,000,000 5,313,061,859,331 III Short-term receivables 1,530,680,636,913 1,745,698,321,469 1,879,162,382,953 Short-term trade accounts receivables 103,692,219,466 123,051,205,676 123,029,215,178 Short-term prepayments to suppliers 100,494,422,801 27,261,022,850 1,954,028,351 Short-term lending 195,500,000,000 405,325,000,000 422,900,000,000 Other short-term receivables 1,139,494,264,022 1,191,430,940,776 1,339,448,688,379 10 It's important to note that a Cash Ratio of 1.18 (higher than 1.0) still indicates that the company has sufficient cash and cash equivalents to cover its short-term liabilities However, the decrease in the Cash Ratio suggests that the company may need to monitor its cash position closely and take appropriate measures to maintain an optimal level of liquidity 12 Sales to Working Capital = Sales Average Working Capital Years Ended December 31, 2021 and 2022 2021 2022 401,008,821,298 478,223,867,884 Working capital at beginning of year 2949,008,574,642 3,798,795,847,942 Working capital at end of year 3,798,795,847,942 3,339,717,920,468 Average working capital (B) 3,373,902,211,292 3,569,256,884,205 0.12 times 0.13 times Net sales (A) Sale to working capital (A/B) In 2021, the Sales to Working Capital ratio was 0.12 times This ratio measures the company's sales generated per unit of working capital A higher Sales to Working Capital ratio suggests that the company is generating more sales per unit of working capital, potentially indicating more efficient utilization of its working capital In 2022, the Sales to Working Capital ratio increased to 0.13 times This indicates a slight improvement in the company's ability to generate sales relative to its working capital The increase in the ratio suggests that the company may have been able to generate more sales using the same or slightly increased amount of working capital It is important to note that the Sales to Working Capital ratio is just one measure of efficiency and should be considered in conjunction with other financial metrics While the increase in the ratio from 2021 to 2022 indicates a slight improvement, further analysis is required to understand the underlying factors driving this change 28 A higher Sales to Working Capital ratio can be indicative of effective working capital management, such as optimizing inventory levels, streamlining operations, improving collections from customers, or managing accounts payable effectively However, it's also possible that external factors, such as changes in market demand or pricing, may have influenced the ratio 2.2 Long-term debt-paying ability of FPT Corporation Recurring Earnings, Excluding Interest Expense, Taxes Expense, Equity Earnings, and Noncontrolling Interest Times Interest Earned = Interest Expense, Including Capitalized Interest Years Ended December 31, 2021 and 2022 2021 2022 2,929,621,491,877 3,115,152,613,533 Plus: Interest expense 233,796,715,258 241,666,859,099 Adjusted income (A) 3,163,418,207,135 3,356,819,472,632 233,796,715,258 241,666,859,099 - - 233,796,715,258 241,666,859,099 Income before income taxes Interest expense Capitalized interest Total interest expense (B) Times interest earned (A/B) 13.53 times per year 13.89 times per year In 2022, the Times Interest Earned ratio increased insignificantly to 0.36 in compared with 2021 (appropriately 2.27%) This indicates a slight improvement in the company's ability to cover its interest expenses The increase in the ratio suggests that the company generated more operating income relative to its interest costs, indicating improved profitability and financial stability It demonstrates the company's capacity to manage its debt obligations and suggests a lower risk of defaulting on interest payments 29 Recurring Earnings, Excluding Interest Expense, Tax Expense, Equity Earnings, and Noncontrolling Interest + Interets Portion of Rentals Fixed Charge Coverage = Interest Expense, Including Capitalized Interest + Interest Portion of Rentals The result of this ratio is the same as Times Interest Earned, because the company does not have a rental contract, so Interest Portion of Rentals is Debt Ratio = Total Liabilities Total Assets Debt Ratio for 2021 = Debt Ratio for 2022 = 7,249,555,305,009 19,651,313,685,470 6,870,450,939,076 20,464,538,280,354 x100 = 36.89% x100 = 33.57% In 2021, the Debt Ratio was 36.89% A higher Debt Ratio suggests a higher level of debt relative to the company's total assets In 2022, the Debt Ratio decreased to 33.57% This indicates a decrease in the company's reliance on debt financing The decrease in the ratio suggests that the company has reduced its level of debt and/or increased its total assets, resulting in a lower proportion of debt in its capital structure It suggests an improved financial position with potentially lower financial risk and a healthier balance between debt and equity Debt/Equity Ratio = Total Liabilities Shareholders' Equity Debt/Equity Ratio for 2021 = Debt/Equity Ratio for 2022 = 7,249,555,305,009 12,401,758,380,461 6,870,450,939,076 13,594,087,341,278 x100 = 58.46% x100 = 50.54% 30 In 2021, the Debt/Equity Ratio was 58.46% The Debt/Equity Ratio measures the proportion of a company's total debt to its total equity A higher Debt/Equity Ratio suggests a higher level of debt relative to the company's equity, indicating a higher financial risk In 2022, the Debt/Equity Ratio decreased to 50.54% This indicates a lower level of debt relative to equity and a reduction in the company's reliance on debt financing The decrease in the ratio suggests that the company may have paid off a portion of its debt, increased its equity, or both The decrease in the Debt/Equity Ratio from 2021 to 2022 likely signifies a reduction in the company's overall debt burden It suggests improved financial stability and a healthier balance between debt and equity in the company's capital structure Debt to Tangible Net Worth Ratio = For 2021 = For 2022 = Total Liabilities Shareholders' Equity - Intangible Assets 7,249,555,305,009 12,401,758,380,461 - 24,620,088,223 6,870,450,939,076 13,594,087,341,278 - 32,805,520,925 x100 = 58.57% x100 = 50.67% In 2021, the Debt to Tangible Net Worth Ratio was 58.57% This ratio measures the proportion of a company's total debt to its tangible net worth A higher Debt to Tangible Net Worth Ratio suggests a higher level of debt in relation to tangible net worth, indicating a higher financial risk In 2022, the Debt to Tangible Net Worth Ratio decreased to 50.67% This indicates a lower level of debt relative to tangible net worth and a decrease in the company's reliance on debt financing The decrease in the ratio suggests that the company has either reduced its debt or increased its tangible net worth, or a combination of both 31 Overall, the decrease in the Debt to Tangible Net Worth Ratio from 2021 to 2022 indicates a reduction in the company's debt relative to its tangible net worth It suggests an improved financial position with lower financial risk and a healthier balance between debt and tangible assets 2.3 Profitability of FPT Corporation Net Income Before Noncontrolling Interest, Equity Income and Nonrecurring Items Net Profit Margin = Net Sales Net Profit Margin for 2021 = Net Profit Margin for 2022 = 2,929,621,491,877 401,008,821,298 3,115,152,613,533 478,223,867,884 x100 = 730.56% x100 = 651.40% The Net Profit Margin is a profitability ratio that measures the company's net profit as a percentage of its total revenue In 2021, the Net Profit Margin was 730.56% A higher Net Profit Margin suggests that the company is generating a higher level of profit relative to its revenue In 2022, the Net Profit Margin decreased to 651.40% This indicates a decrease in the company's net profit margin, suggesting a lower level of profit as a percentage of its total revenue The decrease in the margin indicates that the company's profitability has declined FPT Corporation is the parent company, so income mainly comes from financial income, including dividends from subsidiaries and associates companies, while net sales from business activities are low, so Net profit margin ratio in this case is very high Total Asset Turnover = Net Sales Average Total Assets 32 Years Ended December 31, 2021 and 2022 2021 2022 401,008,821,298 478,223,867,884 16,604,172,723,297 19,651,313,685,470 19,651,313,685,470 20,464,538,280,354 Total 36,255,486,408,767 40,115,851,965,824 Average (B) 18,127,743,204,384 20,057,925,982,912 0.022 times 0.023 times Net sales (A) Average total asset: Beginning of year End of year Total asset turnover (A/B) From 2021 to 2022, the Total Asset Turnover increased insignificantly to 0.001 times, equivalent to 4.55% This indicates a slight improvement in the company's ability to generate revenue from its total assets The increase in the ratio suggests that the company has either increased its revenue or has managed to maintain its revenue while effectively utilizing its assets While the increase in Total Asset Turnover is relatively small, it still signifies a positive trend in the company's asset utilization and revenue-generation capabilities A higher Total Asset Turnover ratio generally indicates better financial performance and efficiency in utilizing assets Net Income Before Noncontrolling Interest of Earning and Nonrecurring Items Return on Assets = Average Total Assets Return on Assets for 2021 = Return on Assets for 2021 = 2,929,621,491,877 18,127,743,204,384 3,115,152,613,533 20,057,925,982,912 x100 = 16.16% x100 = 15.53% 33 In 2022, the Return on Assets decreased to 15.53% (declined 0.63% compared with 2021) This indicates a slight decline in the company's ability to generate profit from its total assets The decrease in the ratio suggests that the company's profitability has reduced relative to the size of its asset base It is important for the company to analyze the underlying reasons for the decrease in Return on Assets and take appropriate actions to improve profitability and asset utilization By effectively managing its resources, controlling costs, and maximizing revenue potential, the company can work towards improving its Return on Assets DuPont Return on Assets Year Return on Assets = Net Profit Margin x Total Asset Turnover 2021 16.16% = 730.56% x 0.022 2022 15.53% = 651.40% x 0.023 Operating Income Margin = Operating Income Net Sales Operating Income and Operating Assets Years Ended December 31, 2021 and 2022 2021 2022 401,008,821,298 478,223,867,884 - - Cost of Goods Sold 88,563,927,849 51,980,583,397 Operating income 312,444,893,449 426,243,284,487 Operating income Net sale Operating expenses: Selling, general, and administrative 34 2020 2021 2022 16,604,172,723,297 19,651,313,685,470 20,464,538,280,354 - 11,369,695,027 32,511,004,226 16,604,172,723,297 19,639,943,990,443 20,432,027,276,128 Operating assets Total assets Less:Deferred income taxes Operating assets Operating Income Margin for 2021 = Operating Income Margin for 2022 = 312,444,893,449 401,008,821,298 426,243,284,487 478,223,867,884 x100 = 77.91% x100 = 89.13% Operating Income Margin for 2022 increased significantly in compared with 2021 at 11.12%, equivalent to 14.40% The significant increase in the Operating Income Margin from 2021 to 2022 is a positive indicator for the company's financial performance It suggests that the company has implemented strategies to enhance operational efficiency, reduce costs, or improve pricing and revenue management The company should continue to pursue strategies that drive this positive trend and enhance its overall financial performance Operating Asset Turnover = Net Sales Average Operating Assets Years Ended December 31, 2021 and 2022 2021 2022 401,008,821,298 478,223,867,884 Beginning of year 16,604,172,723,297 19,639,943,990,443 End of year 19,639,943,990,443 20,432,027,276,128 Net sales (A) Average operating assets 35 Average (B) Operating asset turnover (A/B) 18,122,058,356,870 20,035,985,633,286 0.022 times per year 0.024 times per year Operating Asset Turnover for 2022 increased insignificantly in comparison with 2021 at 0.002 equivalent to 9.09% This indicates a slight improvement in the company's ability to generate revenue from its operating assets The increase in the ratio suggests that the company has either increased its revenue or has managed to maintain its revenue while effectively utilizing its operating assets The increase in Operating Asset Turnover from 2021 to 2022 demonstrates progress in the company's efficiency in generating revenue with its operating assets While the increase in Operating Asset Turnover is relatively small, it still signifies a positive trend in the company's asset utilization and revenue-generation capabilities A higher Operating Asset Turnover ratio generally indicates better financial performance and efficiency in utilizing operating assets Return on Operating Assets = Operating Income Average Operating Assets Return on Operating Assets for 2021 = Return on Operating Assets for 2022 = 312,444,893,449 18,122,058,356,870 426,243,284,487 20,035,985,633,286 x100 = 1.72% x100 = 2.13% In 2022, the Return on Operating Assets increased from 1.72% to 2.13% Overall, the increase in Return on Operating Assets from 2021 to 2022 suggests an improvement in the company's ability to generate profit from its operating assets It indicates that the company is utilizing its operating assets more effectively and 36 generating higher profitability The company should continue to pursue strategies that enhance the return on its operating assets to further improve its financial performance To further improve the Return on Operating Assets, the company should continue to focus on strategies that drive profitability from its operating assets This could involve measures such as optimizing production processes, improving inventory turnover, enhancing sales and marketing efforts, and controlling operating expenses DuPont Return on Operating Assets Year Return on Operating Assets = Operating Income Margin Operating Asset x Turnover 2021 1.72% = 77.91% x 0.022 2022 2.13% = 89.13% x 0.024 Sales to Fixed Assets = Net Sales Average Net Fixed Assets (Exclude Construction in Progress) Years Ended December 31, 2021 and 2022 2021 2022 401,008,821,298 478,223,867,884 340,335,618,970 1,989,611,749,089 End of year 1,989,611,749,089 1,980,893,006,685 Average (B) 1,164,973,684,030 1,985,252,377,887 0.34 times per year 0.24 times per year Net sales (A) Net fixed assets: Beginning of year Sales to fixed assets (A/B) The decrease in Sales to Fixed Assets ratio from 2021 to 2022 (decreased slightly 0.1 times per year) suggests a decrease in the efficiency of the company's fixed asset utilization in generating sales revenue The company should focus on implementing 37 strategies that enhance its sales revenue generation and improve the efficiency of its fixed asset utilization This could involve measures such as optimizing production processes, improving pricing strategies, enhancing marketing efforts, or evaluating the need for additional fixed assets Net Income Before Noncontrolling Interest and Nonrecurring Items +[Interest expense x (1 - Tax Rate)] 10 Return on Investment = Average (Long-term Liabilities + Equity) Years Ended December 31, 2021 and 2022 2021 2022 Interest expense (A) 233,796,715,258 241,666,859,099 Net profit before tax 2,929,621,491,877 3,115,152,613,533 20% 20% 187,037,372,206 193,333,487,279 3,116,658,864,083 3,308,486,100,812 Beginning of year 11,354,591,060,856 13,740,725,731,374 End of year 13,740,725,731,374 14,926,434,108,962 Average (D) 12,547,658,396,115 14,333,579,920,168 24.84% 23.08% Tax rate (B/A) Interest expense x (1 - tax rate) Net profit before tax + Interest expense x (1 – tax rate) (C) Total long-term liabilities and shareholders’ equity: Return on Investment (C/D) From 2021 to 2022, the Return on Investment decreased insignificantly in 1.76% This indicates a slight decline in the company's ability to generate profit relative to its investment The decrease in ROI suggests that the company's profitability has reduced compared to the size of its investment 38 The decrease in Return on Investment from 2021 to 2022 could be influenced by various factors These factors might include declining profitability, increased costs of production or operations, higher investment in fixed assets, or changes in the company's revenue structure Additionally, economic conditions, industry factors, or competitive pressures might have impacted the ROI Net Income Before Noncurring Items Dividends on Redeemable Preferred Stock 11 Return on Total Equity = Average Total Equity Years Ended December 31, 2021 and 2022 2021 2022 2,929,621,491,877 3,115,152,613,533 - - 2,929,621,491,877 3,115,152,613,533 Beginning of year 11,105,325,310,856 12,401,758,380,461 End of year 12,401,758,380,461 13,594,087,341,278 Average (B) 11,753,541,845,659 12,997,922,860,870 24.93% 23.97% Net income Less: Redeemable preferred dividends Adjusted income (A) Total equity: Return on total equity (A/B) Return on Total Equity for 2022 decreased insignificantly in comparison with 2021 at 0.96% This indicates a slight decline in the company's profitability relative to its total equity The decrease in the ratio suggests that the company's ability to generate profit for its shareholders has decreased slightly The decrease in the Return on Total Equity from 2021 to 2022 could be influenced by various factors These factors might include a decline in net income, an 39 increase in equity due to additional investments or retained earnings, or changes in the composition of the company's equity Net Income Before Noncurring Items - Preferred Dividends 12 Return on Common Equity = Average Common Equity Years Ended December 31, 2021 and 2022 2021 2022 2,929,621,491,877 3,115,152,613,533 - - 2,929,621,491,877 3,115,152,613,533 Beginning of year 7,839,874,860,000 9,075,516,490,000 End of year 9,075,516,490,000 10,970,265,720,000 Average (B) 8,457,695,675,000 10,022,891,105,000 34.64% 31.08% Net income Less: Redeemable preferred dividends Adjusted income (A) Total common equity: Return on common equity (A/B) Return on Common Equity for 2022 decreased insignificantly in comparison with 2021 at 3.56% Overall, the slight decrease in Return on Common Equity from 2021 to 2022 suggests a slight decline in the company's profitability specifically for its common equity The company should evaluate the factors contributing to this decrease and implement strategies to enhance profitability for common shareholders 13 Gross Profit Margin = Gross Profit Net Sales 40 Years Ended December 31, 2021 and 2022 Net sales (B) Less: Cost of goods sold Gross profit (A) Gross profit margin (A/B) 2021 2022 401,008,821,298 478,223,867,884 88,563,927,849 51,980,583,397 312,444,893,449 426,243,284,487 77.91% 89.13% Gross profit margin for 2022 increased sharply in comparison with 2021 at 11.22% The increase in the Gross Profit Margin from 2021 to 2022 indicates an improvement in the company's ability to generate gross profit as a percentage of its total revenue The improvement in the Gross Profit Margin is a positive indication for the company, as it demonstrates the ability to generate higher levels of gross profit from its revenue It suggests that the company has been effective in managing its costs and optimizing its revenue streams To sustain and further improve the Gross Profit Margin, the company should continue to focus on strategies that increase revenue, control costs, and enhance operational efficiency This could involve measures such as expanding market share, implementing cost-saving initiatives, investing in technology, or conducting thorough market research to identify customer needs and preferences 41 CONCLUSION In the process of integrating into the global economy and in the trend of strong development in the market-based economy, a competitive economy where businesses compete equally, the businesses that best satisfy customer needs will survive and be cherished by customers Embracing this trend, FPT Corporation is a company that brings new experiences and operates in the field of information technology with remarkable development, achieving significant achievements both domestically and internationally Moreover, the products created by FPT in the market are highly evaluated by customers and have gained the love of most customers Throughout its operations, FPT has always strived with the highest goal of bringing customer satisfaction through the most optimal technology services, products, and solutions At the same time, FPT continuously researches and pioneers in new technology trends, contributing to affirming Vietnam's position in the 4th industrial revolution - the digital revolution FPT will be at the forefront of providing comprehensive digital transformation services to organizations and enterprises on a global scale Furthermore, in the future, FPT will further enhance the quality of its products to bring customer satisfaction, placing the customer at the center and improving its software to perform well in creating impressions, attracting, enticing, promoting, and maintaining the loyalty of customers As a result, FPT's position will always be leading in the market with strong growth 42