an cuong joint stock company

This indicates strong revenue growth for the company.Net sales as a percentage of sales remained relatively stable over the three years.Cost of goods sold as a percentage of net sales sh

INDIVIDUAL ASSIGNMENTFIN202 – SU23

NAME: Nguyen Duc ThuanSTUDENT CODE: CS170625CLASS: BA1706

EMAIL:

JUNE 18, 2023ANCUONG WOOD COMPANY

Table of Contents

I Introduction 2

1.Position and Market Share: 2

2.Main Business Activities: 2

3.Major Projects: 3

II Financial statement analysis 3

2.2 Perform Common-size analysis for Balance sheet and Income Statement Calculate, comment on trend analysis andcompare with peer group or industry average 3

Common-size income statement 3 years of ACG ( An Cuong Company ) 3

Common-size Balance sheet ACG Company 5

Common-size Income statement GDT company 6

The common-size balance sheet of GDT 9

Common-size income statement GTA company 10

Common-size balance sheet GTA company 12

Compare peer group 29

2.4 Perform Dupont analysis Calculate, comment on trend and compare with peer group or industry average What are the main factors that drive ROE? 31

What are the main factors that drive ROE? 33

2.5 Comment on the Statement of Cash flows What can you conclude from the information found in this statement about the financial health of the company? 33

III Conclusion 34

I Introduction.

1.Position and Market Share:

An Cuong Joint Stock Company is a manufacturer and supplier of industrial wood materials, solutions, and furniture in Vietnam and the region since 1994 It is currently a furniture manufacturer and exporter of many well-known brands in Japan, Southeast Asia, the United States, and Europe The major foreign shareholders of An Cuong are Sumitomo from Japan, DEG from Germany, and Vinacapital.

In 2017, An Cuong was pleased to welcome Sumitomo Forestry Group asa strategic shareholder With over 200 years of experience in the industry, annual revenue of over 10 billion USD, modern management techniques, and a strong position in the international market, Sumitomo Forestry Group joined forces with An Cuong, which has been operating for more than 25 years and has a strong position in the domestic market.

2.Main Business Activities:

Cuong's main products include industrial wood materials such as MFC boards, MDF boards, laminate, acrylic, veneer, flooring, and various accessories These materials are widely used to design and decorate modern interior spaces for houses, apartments, schools, hospitals, furniture showrooms, ceilings, toilet partitions, doors, and flooring.

3.Major Projects:

In 2019, An Cuong continued to invest in the construction of a factory with an area of over 100,000 square meters, equipped with modern machinery and equipment worth billions of Vietnamese dong They also expanded their existing factory to over 240,000 square meters An Cuong collaborates with renowned accessory brands such as Hettich (one of the leading manufacturers of furniture accessories from the Federal Republic of Germany), Imundex (part of the Feddersen Group), and EcoBuilding (by Schneider Electric).

In terms of competitors, An Cuong Joint Stock Company competes with other reputable construction companies and building material suppliers in Vietnam, such as Viglacera, LIXIL Vietnam, and Dong Tam Group These companies also provide a range of construction materials and compete to gain market share in the industry

II Financial statement analysis.

2.2 Perform Common-size analysis for Balance sheet and Income Statement Calculate, comment on trend analysis and compare with peer group or industry average.

Common-size income statement 3 years of ACG ( An Cuong Company ).

Sales increased significantly from 2020 to 2021 and experienced a further increase in 2022 This indicates strong revenue growth for the company.

Net sales as a percentage of sales remained relatively stable over the three years.

Cost of goods sold as a percentage of net sales showed a slight

decrease from 2020 to 2022, indicating better cost control and improvedefficiency in production.

Gross profit margin remained relatively stable, with a slight increase in 2022.

As a percentage of net sales, financial income increased significantly from 2020 to 2021 but decreased in 2022.

As a percentage of net sales, financial expense increased over the three years, with a notable jump in 2022 This indicates an increase in the company's financial costs.

Gain/loss from joint ventures appeared in 2022, contributing positively to the net income.

Selling expenses as a percentage of net sales showed minor fluctuationsover the years.

Administration expenses as a percentage of net sales increased from 2020 to 2022, indicating higher administrative costs.

The operating profit margin increased from 2020 to 2021 but remained relatively stable in 2022.

Other income and other expense percentages varied but remained relatively low compared to net sales.

Earnings before interest and tax (EBIT) margin increased from 2020 to 2021 and experienced a slight increase in 2022.

Corporate income tax percentages increased over the three years, indicating a higher tax burden for the company.

Net income after taxes as a percentage of net sales showed a slight decrease from 2020 to 2021 but increased in 2022.

Overall, the common-size analysis of the income statement for ACG Company suggests positive trends in terms of revenue growth, stable gross profit margin, and increasing operating profit margin However, there are some areas of concern, such as the increasing financial expenses and administrative expenses as a percentage of net sales It's important for the company to monitor and control these costs to ensure profitability.

It would also be beneficial to compare these trends with industry benchmarks and analyze the company's performance in relation to its competitors to gain a better understanding of its position in the market.

Common-size Balance sheet ACG Company

The common-size analysis of the balance sheet for ACG Company provides insights into the composition and trends of its assets and liabilities Here are the observations based on the common-size percentages:

Current assets as a percentage of total assets decreased from 80.58% in 2020 to 73.27% in 2021 and further declined to 70.23% in 2022 This suggests a decrease in the company's reliance on short-term assets.

Cash and marketable securities showed a significant increase as a percentage of total assets, indicating a higher liquidity position in 2022.

Short-term investment as a percentage of total assets decreased from 37.73% in 2020 to 30.66% in 2021 and further declined to 19.19% in 2022.

Account receivable (current) as a percentage of total assets decreased from 15.48% in 2020 to 12.41% in 2021 but increased to 16.24% in 2022.

Inventory as a percentage of total assets remained relatively stable over the years, with a slight increase in 2022.

Goodwill and other assets as a percentage of total assets showed fluctuations but remained relatively small in comparison.

Long-term assets as a percentage of total assets increased from 19.42% in 2020 to 26.73% in 2021 and further rose to 29.77% in 2022.

Fixed assets as a percentage of total assets showed a decreasing trend over the years.

Long-term investments showed a significant increase as a percentage of total assets in 2022.

Current liabilities as a percentage of total liabilities remained relatively stable over the years, indicating a consistent short-term debt position.

Non-current liabilities as a percentage of total liabilities also remained relatively stable over the years.

or financial decisions Additionally, comparing these trends with industrybenchmarks and the company's historical data can provide further insights into its financial health and performance.

Common-size Income statement GDT company

Based on the common-size income statement for GDT Company, let's analyze the situation of the company for the years 2020, 2021, and 2022:

Cost of Goods Sold (COGS):

COGS as a percentage of net sales decreased from 2020 to 2021 but increased in 2022.

This resulted in a decline in the gross profit margin in 2021, followed by an improvement in 2022.

Financial Income and Expense:

Financial income as a percentage of net sales remained relativelystable over the three years.

Financial expense as a percentage of net sales decreased in 2021but significantly increased in 2022.

The interest expense as a subcategory of financial expense alsosaw an increasing trend.

Other Income, Expense, and Profit/Loss:

Other income and other profit/loss fluctuated over the years, buttheir impact on the overall financials was relatively small.

Earnings Before Interest and Tax (EBIT):

EBIT as a percentage of net sales decreased from 2020 to 2021 butslightly improved in 2022.

This reflects the impact of the changes in gross profit, operatingexpenses, and financial expenses.

Corporate Income Tax:

Current corporate income tax as a percentage of net salesremained relatively stable.

Deferred corporate income tax and its impact on net sales werenegligible.

Net Income After Taxes:

Net income as a percentage of net sales decreased from 2020 to2021 but slightly improved in 2022.

Overall, the company experienced a decline in profitability in 2021,followed by a modest recovery in 2022.

It's important to note that this analysis is based solely on theprovided common-size income statement To gain a morecomprehensive understanding of the company's situation, it would bebeneficial to assess additional financial statements and consider otherrelevant factors such as industry trends, market conditions, and thecompany's overall financial health.

The common-size balance sheet of GDT

Account receivable (current) as a percentage of total assetsdecreased from 2020 to 2021 but significantly increased in 2022.

Inventory as a percentage of total assets showed fluctuations butremained relatively stable over the years.

Goodwill and other assets as a percentage of total assetsdecreased over the years.

marketable securities and the significant increase in account receivable(current) in 2022 might indicate improved liquidity The introduction oflong-term unfinished assets in 2022 suggests ongoing investments orprojects The company's total equity increased over the years, primarilydriven by retained earnings.

Common-size income statement GTA company

Based on the common-size income statement for GTA Company, let's analyze the income statement position of the company for the years 2020, 2021, and 2022:

Net Sales:

Net sales as a percentage of total sales decreased slightly from 2020 to 2021 and further decreased in 2022.

Cost of Goods Sold (COGS):

COGS as a percentage of net sales remained relatively stable over the years, indicating consistent production or procurement costs.

Gross Profit:

Gross profit as a percentage of net sales showed a slight decrease from 2020 to 2021 and further decreased in 2022.

Financial Income and Expenses:

Financial income as a percentage of net sales remained relatively stable over the years.

Financial expenses as a percentage of net sales remained relatively stable over the years.

Interest expenses as a percentage of net sales remained relatively stable over the years.

Selling and Administration Expenses:

Selling expenses as a percentage of net sales remained relatively stable over the years.

Administration expenses as a percentage of net sales remained relatively stable over the years.

Operating Profit:

Operating profit as a percentage of net sales decreased from 2020 to 2021 and further decreased in 2022.

Other Income, Expenses, and Profit/Loss:

Other income as a percentage of net sales showed fluctuations butremained relatively low.

Other expenses as a percentage of net sales showed fluctuations but remained relatively low.

Other profit/loss as a percentage of net sales showed fluctuations, with a significant negative impact in 2022.

Earnings Before Interest and Tax (EBIT):

EBIT as a percentage of net sales decreased from 2020 to 2021 and further decreased in 2022.

Corporate Income Tax:

Corporate income tax as a percentage of net sales remained relatively stable over the years.

Net Income After Taxes:

Net income after taxes as a percentage of net sales decreased from 2020 to 2021 and further decreased in 2022.

Overall, GTA Company experienced a decrease in net sales, gross profit, operating profit, and net income after taxes over the years The fluctuations in other income, expenses, and profit/loss contributed to the

changes in profitability It is important to conduct further analysis to understand the reasons behind these changes, such as changes in pricing, production costs, operating efficiency, or external factors affecting the industry.

Common-size balance sheet GTA company

Based on the common-size income statement for GTA Company, let's analyze the income statement position of the company for the years 2020, 2021, and 2022:

Net Sales:

Net sales as a percentage of total sales decreased slightly from 2020 to 2021 and further decreased in 2022.

Cost of Goods Sold (COGS):

COGS as a percentage of net sales remained relatively stable over the years, indicating consistent production or procurement costs.

Financial income as a percentage of net sales remained relatively stable over the years.

Financial expenses as a percentage of net sales remained relatively stable over the years.

Interest expenses as a percentage of net sales remained relatively stable over the years.

Selling and Administration Expenses:

Selling expenses as a percentage of net sales remained relatively stable over the years.

Administration expenses as a percentage of net sales remained relatively stable over the years.

Operating Profit:

Operating profit as a percentage of net sales decreased from 2020 to 2021 and further decreased in 2022.

Other Income, Expenses, and Profit/Loss:

Other income as a percentage of net sales showed fluctuations butremained relatively low.

Other expenses as a percentage of net sales showed fluctuations but remained relatively low.

Other profit/loss as a percentage of net sales showed fluctuations, with a significant negative impact in 2022.

Earnings Before Interest and Tax (EBIT):

EBIT as a percentage of net sales decreased from 2020 to 2021 and further decreased in 2022.

Corporate Income Tax:

Corporate income tax as a percentage of net sales remained relatively stable over the years.

Net Income After Taxes:

Net income after taxes as a percentage of net sales decreased from 2020 to 2021 and further decreased in 2022.

Overall, GTA Company experienced a decrease in net sales, gross profit, operating profit, and net income after taxes over the years The fluctuations in other income, expenses, and profit/loss contributed to thechanges in profitability It is important to conduct further analysis to understand the reasons behind these changes, such as changes in pricing, production costs, operating efficiency, or external factors affecting the industry.

2.3 Perform Ratios analysis Calculate, comment on trend and compare with

peer group or industry average.Ratio analysis.

Liquidity Ratio:Current ratio:

Current ratio in 2020: 3.859

This means that for every dollar of current liabilities, ACG Company has $3.859 of current assets A current ratio above 1 indicates that the company has sufficient current assets to cover its current liabilities A ratio of 3.859 indicates a strong liquidity position, implying that ACG Company has a comfortable buffer to meet its short-term obligations.

Current ratio in 2021: 3.051

The current ratio decreased to 3.051 in 2021 Although the ratio is still above 1, indicating that the company has enough current assets to cover its current liabilities, the decline suggests a decrease in liquidity compared to the previous year It would be beneficial to further investigate the reasons behind this decrease and assess the potential impact on the company's financial health.

Current ratio in 2022: 2.489

The current ratio further declined to 2.489 in 2022 This indicates a continued decrease in liquidity compared to the previous year A ratio below 3 suggests that ACG Company may have a tighter ability to cover its short-term liabilities with its current assets It is important to closely monitor this trend and assess the company's ability to manage its current obligations effectively.

Overall, the decreasing trend in the current ratio from 2020 to 2022 raises concerns about ACG Company's liquidity position It indicates a potential decrease in the company's ability to meet its short-term obligations using its current assets Further analysis and evaluation of the company's financial statements and cash flow position would be necessary to gain a comprehensive understanding of its liquidity and financial health.

Quick ratio:

Quick ratio in 2020: 2.447

This means that for every dollar of current liabilities, ACG Company has $2.447 of quick assets The quick ratio of 2.447 indicates a strong liquidity position, suggesting that the company has a significant amount of highly liquid assets to cover its short-term obligations without relying heavily on inventory.

Quick ratio in 2021: 1.898