Luận Văn The Problems Of Control Account Receivables Turnover And Ineffective Finance Leverage. Monitoring account receivables is essential for the Company to control, classify and evaluate the status of customer’s debt in order to have timely and proper solution for each kind of debt. Currently, Minh Phu has not monitor the aging report in proper way. Receivables which are current overdue should be closely monitored and inform to the customers for collection purposes. In addition, the Company should have proper policies and method to collect overdue debts. Moreover, it is also necessary to analyse the reason that lead those receivables to be overdue, so that extend the credit terms or suggest rational collection methods.
Luận Văn The Solution To Enhance Time Management Skill At Expeditors Vietnam. Variously, Mr. Manh Hoang Tuan – Operation Manager indicated that in order to finish one shipment, employee must go through 35 steps in the whole process. It is so complicated and even they do not have enough recourses or effective tools to support them for data entry so staffs seem not interest much in their job, they usually distracted
Luận Văn Free trade or protectionism serves as the most effective trade policy. Determining an adequate trade policy is vital, and the pursuit of the economy’s stabilisation is also crucial. Most countries of the world tend to actively engage in globalisation in one way or another. Furthermore, the outcomes of globalisation and trade liberalisation often involve new risks, threats and challenges. Some industries are very sensitive to the changes in production costs, and, due to the high amount of pressure that is derived from global competition; these factors would certainly affect local producers in many ways.
Luận Văn Free trade or protectionism serves as the most effective trade policy. This dissertation consists of six chapters. The first chapter is the present “Introduction” chapter, whereby the aim of the dissertation has been outlined briefly, while background information into the research topic and the reasons for conducting this research have been justified. The research hypothesis has also been addressed, and the research questions listed. Chapter 2 will examine the literature available in relation to the research area based on the various sources encountered, including books, online journals, articles, official reports, conference materials and internet materials. In this chapter, the researcher will try to explain the Libyan poultry market situation and justify the need for this type of research.
The procedure of importing in forwarding operation of sao nam viet by sea transport. With the goal of becoming the leader in the field of logistics and supply chain services, SNV never cease looking for intelligent and innovative solutions in order to continually improve our reliable and convenient services.
Ineffective Internal Communication Of Importing Process In Srithai Limited Company. In order to finding the real problem, there are four researches will be conducted. In-depth interview is suitable for this case because number of employees in sales, purchasing and finance under thirty people. Moreover, depth interview with advantage that the interviewer has many times to probe and obtain in-depth responses since respondents tend to express themselves more freely. In addition, it has been selected because interviewer can capture emotions and behaviors of respondents to find down if they are telling the truth or interviewer can change the way they conduct the interview if the respondent expresses their uncomfortable with the interview.
A glimpse from the multi year expert meeting on Improving all forms of cooper...Ira Kristina Lumban Tobing
This document summarizes the proceedings of the fourth session of the Multi-year Expert Meeting on Promoting Economic Integration and Cooperation. Key points discussed included:
1) Challenges facing developing countries in the current macroeconomic environment, including vulnerability to financial instability and external economic shocks. Public investment was proposed as a way to boost resilience.
2) Issues of rising public debt levels in many developing nations since the 2008 crisis. Debt poses a risk but capital controls have helped in some countries.
3) Evidence of "premature deindustrialization" occurring at lower income levels in developing regions today compared to histories. Industrial policy is important to prevent or mitigate this.
Lack of career growth opportunity in operation department at THI Group VietNa...NuioKila
This document analyzes a problem at THI Group Vietnam's Ho Chi Minh City branch. It identifies two symptoms of the problem: declining revenue over three years, especially in the Operation Department, and high turnover rates in the Operation Department. Through interviews and data analysis, the document maps out the causes and effects of the problem. The central problem identified is a lack of career growth opportunities in the Operation Department, which leads to other issues such as high turnover. The document will propose solutions to address this central problem.
Luận Văn The Solution To Enhance Time Management Skill At Expeditors Vietnam. Variously, Mr. Manh Hoang Tuan – Operation Manager indicated that in order to finish one shipment, employee must go through 35 steps in the whole process. It is so complicated and even they do not have enough recourses or effective tools to support them for data entry so staffs seem not interest much in their job, they usually distracted
Luận Văn Free trade or protectionism serves as the most effective trade policy. Determining an adequate trade policy is vital, and the pursuit of the economy’s stabilisation is also crucial. Most countries of the world tend to actively engage in globalisation in one way or another. Furthermore, the outcomes of globalisation and trade liberalisation often involve new risks, threats and challenges. Some industries are very sensitive to the changes in production costs, and, due to the high amount of pressure that is derived from global competition; these factors would certainly affect local producers in many ways.
Luận Văn Free trade or protectionism serves as the most effective trade policy. This dissertation consists of six chapters. The first chapter is the present “Introduction” chapter, whereby the aim of the dissertation has been outlined briefly, while background information into the research topic and the reasons for conducting this research have been justified. The research hypothesis has also been addressed, and the research questions listed. Chapter 2 will examine the literature available in relation to the research area based on the various sources encountered, including books, online journals, articles, official reports, conference materials and internet materials. In this chapter, the researcher will try to explain the Libyan poultry market situation and justify the need for this type of research.
The procedure of importing in forwarding operation of sao nam viet by sea transport. With the goal of becoming the leader in the field of logistics and supply chain services, SNV never cease looking for intelligent and innovative solutions in order to continually improve our reliable and convenient services.
Ineffective Internal Communication Of Importing Process In Srithai Limited Company. In order to finding the real problem, there are four researches will be conducted. In-depth interview is suitable for this case because number of employees in sales, purchasing and finance under thirty people. Moreover, depth interview with advantage that the interviewer has many times to probe and obtain in-depth responses since respondents tend to express themselves more freely. In addition, it has been selected because interviewer can capture emotions and behaviors of respondents to find down if they are telling the truth or interviewer can change the way they conduct the interview if the respondent expresses their uncomfortable with the interview.
A glimpse from the multi year expert meeting on Improving all forms of cooper...Ira Kristina Lumban Tobing
This document summarizes the proceedings of the fourth session of the Multi-year Expert Meeting on Promoting Economic Integration and Cooperation. Key points discussed included:
1) Challenges facing developing countries in the current macroeconomic environment, including vulnerability to financial instability and external economic shocks. Public investment was proposed as a way to boost resilience.
2) Issues of rising public debt levels in many developing nations since the 2008 crisis. Debt poses a risk but capital controls have helped in some countries.
3) Evidence of "premature deindustrialization" occurring at lower income levels in developing regions today compared to histories. Industrial policy is important to prevent or mitigate this.
Lack of career growth opportunity in operation department at THI Group VietNa...NuioKila
This document analyzes a problem at THI Group Vietnam's Ho Chi Minh City branch. It identifies two symptoms of the problem: declining revenue over three years, especially in the Operation Department, and high turnover rates in the Operation Department. Through interviews and data analysis, the document maps out the causes and effects of the problem. The central problem identified is a lack of career growth opportunities in the Operation Department, which leads to other issues such as high turnover. The document will propose solutions to address this central problem.
Luận Văn Thạc Sĩ Lack Of Career Growth Opportunity In Operation Department At Thi Group Vietnam Hcm Branch đã chia đến cho các bạn nguồn tài liệu hoàn toàn hữu ích. Nếu các bạn có nhu cầu cần tải bài mẫu này vui lòng nhắn tin qua zalo/telegram : 0932.091.562 để được hỗ trợ tải nhé!
Luận Văn The Job Stress In Aircraft Service International In Vietnam Airlines Caterers. In Vietnam Airlines Caterers, the Aircraft Service International section (ACSI) of Operation Department is responsible for loading the in-flight meals for international airlines. According to manager of this section, the ACSI had a high turnover rate in recent years. However, the problem became more serious since last year, when the number of international flights has increased dramatically. For more detail, the ACSI now is lack about 10 staff to cover all the operation activities and fulfill all the days off for employees. At the moment, over 50% employees are new persons, who have less than 2 years working in company.
Colliers International Vietnam
Quarterly Knowledge Report for an economic overview and analysis on the Residence, Serviced Apartment, Office, Retail, Condominium, Villa/Townhouse and Industry Real Estate market in Vietnam.
The document provides details about the proposed M.Sc. program in Accounting and Finance at Wachemo University. It outlines the background and rationale for the program, its objectives, duration, admission requirements, graduation requirements, degree nomenclature, teaching methods, assessment methods, resource requirements, and quality assurance measures. The program aims to train individuals for executive positions in accounting, auditing, taxation and finance. It will last two years and require a thesis. Courses will cover advanced topics in accounting, finance, research methodology and related fields.
Solution Manual Accounting 7th Edition by Birt & Chalmers.pdfabashari1298
This is a sample from "Solution Manual Accounting 7th Edition by Birt & Chalmers".
Full Complete Solutions are available too.
I can send full complete Solution Manual for anyone who contact me on E. M ail.
"Accounting: Business Reporting for Decision Making" by Jacqueline Birt, Keryn Chalmers, and Suzanne Maloney is a widely used textbook that covers key concepts in accounting and financial reporting. The seventh edition builds upon previous editions to provide students with a comprehensive understanding of accounting principles and their application in real-world business contexts.
The book covers topics such as financial accounting, management accounting, corporate governance, ethics, and the role of accounting information in decision-making processes. It is designed to cater to the needs of both accounting majors and non-accounting majors, offering a balance between theoretical concepts and practical applications.
Throughout the text, the authors emphasize the importance of accounting information in helping businesses make informed decisions. Case studies, examples, and exercises are included to help reinforce key concepts and encourage critical thinking.
Overall, "Accounting: Business Reporting for Decision Making" is a valuable resource for students studying accounting, finance, or business, as well as professionals who want to deepen their understanding of financial reporting practices and their implications for decision making within organizations.
The document discusses issues facing Cubes Asia, a Vietnamese company that distributes coffee machines. It provides background on the company's history, customers, and sales channels. The document then identifies problems through employee interviews, finding that Cubes Asia is experiencing poor employee training, ineffective leadership from managers, and high employee turnover. Potential causes of the ineffective leadership are analyzed, and solutions are proposed to address the leadership problems.
Internship report Inventory Accountant at international university ho chi minh city. The aim of this internship is to accustom practical work and how to apply knowledge in the real workplace. It also equips for me an actual picture and useful skills to be willing for future career. Therefore, I compiled this report as the summary and the conclusion that have experienced from the internship time.
Colliers International Vietnam
Quarterly Knowledge Report for an economic overview and analysis on the Residence, Serviced Apartment, Office, Retail, Condominium, Villa/Townhouse and Industry Real Estate market in Vietnam.
This document provides an introduction and overview of working capital management for a company. It discusses how working capital refers to current assets like inventory, accounts receivable, and cash needed to support daily business operations. The importance of effective working capital management is emphasized as it can ensure business success while inefficient management can lead to losses or failure. The document then provides background on Chennai Port Trust, including its history and facilities, to set up an analysis of the company's working capital management.
Final Research Paper_IELPO 2008-2009_Vutha HINGVutha Hing
This document is a research paper examining trade liberalization in Cambodia's financial sector. It begins with an introduction that provides background on Cambodia's gradual opening of its financial sector over the last decade. It then reviews literature showing that financial sector liberalization can help build more robust and efficient financial systems.
The paper then assesses the degree of Cambodia's financial sector liberalization based on its commitments under the GATS. It analyzes indicators related to the depth, outreach, competition, and efficiency of Cambodia's financial system both before and after liberalization. The findings suggest that trade liberalization, particularly under GATS, has played a role in strengthening Cambodia's financial performance by widening access and improving competition and efficiency. However,
Short Hindi Essay On Holi. Online assignment writing service.Amy Watkins
The document provides instructions for creating an account and submitting assignment requests on the HelpWriting.net website. It outlines a 5-step process: 1) Create an account with a password and email. 2) Complete a form with assignment details. 3) Writers will bid on the request and the customer can choose a writer. 4) The customer will receive the paper and pay upon approval. 5) Revisions are allowed to ensure customer satisfaction, and plagiarized work results in a refund.
Báo Cáo Thực Tập Tiếng Anh Tại Công Ty Bất Động Sản đã chia sẻ đến cho các bạn nguồn tài liệu hoàn toàn hữu ích đáng để xem và tham khảo nhé. Nếu các bạn có nhu cầu cần tải bài mẫu này vui lòng nhắn tin qua zalo/telegram : 0932.091.562 để được hỗ trợ tải nhé.
20150910 MFEM Annual Report 2014-15 Final to put on the websiteRichard Neves
The document is the Ministry of Finance and Economic Management's (MFEM) annual report for the 2014/15 fiscal year. It summarizes MFEM's delivery of government priorities and outputs, performance improvement efforts, human and financial resourcing, and employment relations. Key points include: MFEM worked to deliver national development plan indicators and business plan outputs related to fiscal management, statistics, and development coordination; performance improvement focused on leadership, external relationships, workforce development, and financial management; staffing and expenditures are detailed; and recruitment, turnover, disputes and training are discussed.
INTERNSHIP REPORT KE GO COMPANY LIMITED. Currently, after more than 5 years of operation, the company has the personnel of 72 persons, including nine persons in office blocks working in room 603, Kim Anh building, Dich Vong Hau Ward, Cau Giay District. There are seven supervisors, 56 employees work in the factory locating in Tien Phong commune, Yen Dung district, Bac Giang province. Accordingly, 100% officers have university degrees and workers are mainly unskilled localities.
Essay On My Mother For Class 6 In EnglishMolly Crosby
The document provides instructions for requesting an assignment writing service from HelpWriting.net in 5 steps:
1. Create an account with a password and email.
2. Complete a 10-minute order form providing instructions, sources, deadline, and attaching a sample work.
3. Review bids from writers and choose one based on qualifications, history, and feedback, then pay a deposit.
4. Review the completed paper and authorize full payment if pleased, or request revisions for free.
5. Choose this service confidently knowing your needs will be fully met, with refunds offered for plagiarized work.
Luận Văn The Effect Of Cash Flow Sensitivity On Enterprises’ Cash Holdings. Almeida et. al. introduced a model of a firm’s liquidity demand that formalizes Keynes’ intuition. The model hypothesizes that firms with capital constraints tend to have cash holdings from cash inflows. Almeida et al argue that firms that were not constrained in their access to funding would not show cash incentives, when the firm’s cash flow changed, their cash holdings would not be affected while financially constrained firms would be affected by changes in cash flow.
The document provides instructions for using the HelpWriting.net writing assistance service in 5 steps: register for an account, submit a request form with paper details and deadline, receive bids from writers and select one to complete the paper, review the completed paper and authorize payment, and request revisions if needed while being assured of original and high-quality content.
Luận Văn Poor Cooperation Between Employees At Thai Tu Company. This study analyzes the case of Thai Tu company with the symptom is the decline in number of customers. There are four main chapters in this paper; they are the overview company, the problem identification, the causes validation and solutions in company and the supporting information. Based on information from interviews with relevant individuals and data from the company, the problem of poor cooperation between employees has been analyzed and chosen as central problem to be solved. Next chapter is a list of causes of central problems; they are lack of leadership, unclear Goals and duties, lack of training program, disengaged employees and virtual teams. In this chapter, a set of solutions to solve the problem has been proposed as well. Continuing, selecting one solution in this set of solution for action plan in organization. Finally, in the final chapter, interview guides, transcripts or reports will be composed to support this paper.
Luận Văn Unproductive Project Management Process In ITC. The General Administration department only supports for technical departments and board of directors with paperwork, accounting, reception activities and so on. There are 03 sectors within this department: Admin, Accounting and Commerce. Admin sector is in charge of logistics, paperwork, reception as well as other human resource activities. Commerce sector is in charge of preparing contracts and account management while Accounting sector is in charge of typical accounting activities. The accounting sector is supervised directly by a vice director.
Pháp Luật Về Điều Kiện Hành Nghề Khám Chữa Bệnh Của Cá Nhân. Pháp luật về hành nghề khám bệnh, chữa bệnh ở Việt Nam đã có nhiều thay đổi về nội dung, phương pháp tiếp cận nhằm gia tăng số lượng, chất lượng người hành nghề khám bệnh, chữa bệnh, đáp ứng nhu cầu khám chữa bệnh của người dân. Tuy nhiên, thực tiễn thực hiện pháp luật hành nghề khám bệnh, chữa bệnh của cá nhân cũng phát sinh nhiều vấn đề cần được tiếp tục hoàn thiện để đáp ứng nhu cầu của thị trường, nhu cầu của người dân, hội nhập quốc tế trong lĩnh vực dịch vụ y tế. Từ những phân tích trên, Tác giả lựa chọn chủ đề “Pháp luật về điều kiện hành nghề khám chữa bệnh của cá nhân” làm nội dung nghiên cứu cho luận văn thạc sĩ luật học, chuyên ngành Luật Kinh tế của mình.
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Solution Manual Accounting 7th Edition by Birt & Chalmers.pdfabashari1298
This is a sample from "Solution Manual Accounting 7th Edition by Birt & Chalmers".
Full Complete Solutions are available too.
I can send full complete Solution Manual for anyone who contact me on E. M ail.
"Accounting: Business Reporting for Decision Making" by Jacqueline Birt, Keryn Chalmers, and Suzanne Maloney is a widely used textbook that covers key concepts in accounting and financial reporting. The seventh edition builds upon previous editions to provide students with a comprehensive understanding of accounting principles and their application in real-world business contexts.
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The document discusses issues facing Cubes Asia, a Vietnamese company that distributes coffee machines. It provides background on the company's history, customers, and sales channels. The document then identifies problems through employee interviews, finding that Cubes Asia is experiencing poor employee training, ineffective leadership from managers, and high employee turnover. Potential causes of the ineffective leadership are analyzed, and solutions are proposed to address the leadership problems.
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3. Review bids from writers and choose one based on qualifications, history, and feedback, then pay a deposit.
4. Review the completed paper and authorize full payment if pleased, or request revisions for free.
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The document provides instructions for using the HelpWriting.net writing assistance service in 5 steps: register for an account, submit a request form with paper details and deadline, receive bids from writers and select one to complete the paper, review the completed paper and authorize payment, and request revisions if needed while being assured of original and high-quality content.
Luận Văn Poor Cooperation Between Employees At Thai Tu Company. This study analyzes the case of Thai Tu company with the symptom is the decline in number of customers. There are four main chapters in this paper; they are the overview company, the problem identification, the causes validation and solutions in company and the supporting information. Based on information from interviews with relevant individuals and data from the company, the problem of poor cooperation between employees has been analyzed and chosen as central problem to be solved. Next chapter is a list of causes of central problems; they are lack of leadership, unclear Goals and duties, lack of training program, disengaged employees and virtual teams. In this chapter, a set of solutions to solve the problem has been proposed as well. Continuing, selecting one solution in this set of solution for action plan in organization. Finally, in the final chapter, interview guides, transcripts or reports will be composed to support this paper.
Luận Văn Unproductive Project Management Process In ITC. The General Administration department only supports for technical departments and board of directors with paperwork, accounting, reception activities and so on. There are 03 sectors within this department: Admin, Accounting and Commerce. Admin sector is in charge of logistics, paperwork, reception as well as other human resource activities. Commerce sector is in charge of preparing contracts and account management while Accounting sector is in charge of typical accounting activities. The accounting sector is supervised directly by a vice director.
Pháp Luật Về Điều Kiện Hành Nghề Khám Chữa Bệnh Của Cá Nhân. Pháp luật về hành nghề khám bệnh, chữa bệnh ở Việt Nam đã có nhiều thay đổi về nội dung, phương pháp tiếp cận nhằm gia tăng số lượng, chất lượng người hành nghề khám bệnh, chữa bệnh, đáp ứng nhu cầu khám chữa bệnh của người dân. Tuy nhiên, thực tiễn thực hiện pháp luật hành nghề khám bệnh, chữa bệnh của cá nhân cũng phát sinh nhiều vấn đề cần được tiếp tục hoàn thiện để đáp ứng nhu cầu của thị trường, nhu cầu của người dân, hội nhập quốc tế trong lĩnh vực dịch vụ y tế. Từ những phân tích trên, Tác giả lựa chọn chủ đề “Pháp luật về điều kiện hành nghề khám chữa bệnh của cá nhân” làm nội dung nghiên cứu cho luận văn thạc sĩ luật học, chuyên ngành Luật Kinh tế của mình.
Nâng cao năng lực cạnh tranh cụm ngành logistics cảng biển tại tỉnh Bà Rịa. Ch số năng lực cạnh tranh logistics (Logistics Performance Index – LPI) do World Bank thực hiện định kỳ 2 năm một l n cho thấy mối liên hệ giữa sự phát triển của một nền kinh tế và chi phí dịch vụ logistics: chi phí logistics càng thấp, hiệu quả tổng thể của nền kinh tế càng cao. Tại các quốc gia phát triển, tỷ lệ chi phí cho logistics trong cơ cấu GDP trong khoảng từ 8-10% (Xianghui, 2013). Trong khi đó, tại Việt Nam, t lệ này là 20% và t trọng đóng gó gi trị kinh tế của ngành ch khoảng 2-3% GDP (Việt Âu, 2017).
Tác Động Của Chính Sách Tài Khóa Và Chính Sách Tiền Tệ Đến Các Biến Kinh Tế Vĩ Mô Ở Việt Nam. Việc quản lý kinh tế tốt hay không phụ thuộc vào sự hiểu biết bản chất của những cú sốc tác động đến nền kinh tế và tác động kinh tế hỗ tương sau đó của chúng. Đó là sự tương tác hỗ tương của các cú sốc chính sách tiền tệ đối với chính sách tài khóa và các biến khác; của các cú sốc chính sách tài khóa với chính sách tiền tệ và các biến khác; và của các cú sốc kinh tế vĩ mô với cả chính sách tài khóa và chính sách tiền tệ. Các nhà làm chính sách cần phải hiểu và nắm bắt được bản chất các cú sốc sinh ra từ hai chính sách này cùng với các yếu tố khác, chúng gây ra những tác động gì, ở mức độ như thế nào đối với nền kinh tế?
This document discusses the problem of increasing global rice demand and the need to boost rice production. Rice is a staple food for nearly half of the world's population. Global rice consumption is projected to rise significantly by 2035 due to population and income growth. Asia accounts for the majority of global rice consumption and production currently, but demand is also increasing in other regions like Africa and South America. Meeting rising global rice demand will require annual rice production to increase by 100 million tons for every additional billion people in the world. As the largest rice producer and exporter, boosting production efficiency in countries like Vietnam is important to ensure global food security.
Mối Quan Hệ Giữa Rủi Ro Thanh Khoản Và Rủi Ro Tín Dụng. Tuy nhiên, hiện nay chưa có nhiều nghiên cứu phân tích sâu ở các khía cạnh khác nhau về mối quan hệ giữa rủi ro thanh khoản và rủi ro tín dụng tại các ngân hàng thương mại ở Việt Nam. Để hiểu rõ về mối quan hệ chung cũng như chiều hướng tác động giữa rủi ro thanh khoản và rủi ro tín dụng, tác giả chọn đề tài nghiên cứu “Mối quan hệ giữa rủi ro thanh khoản và rủi ro tín dụng: nghiên cứu tại các ngân hàng thương mại Việt Nam”. Kết quả nghiên cứu sẽ góp phần bổ sung cơ sở lý thuyết và bằng chứng thực nghiệm về mối quan hệ giữa rủi ro thanh khoản và rủi ro tín dụng. Từ đó, nghiên cứu giúp các nhà quản trị rủi ro có cái nhìn tổng quát về mối quan hệ giữa rủi ro thanh khoản và rủi ro tín dụng, để đưa ra những chiến lược hoạch định quản lý rủi ro cho phù hợp.
This document summarizes a thesis about ineffective leadership style in the sales department of CADIVI Company. The thesis was submitted to the University of Economics Ho Chi Minh City in fulfillment of a Master of Business Administration degree.
The document provides background on CADIVI Company, which manufactures electric cables and wires. It notes high turnover rates in the sales department from 2015 to 2018, including a 37.5% turnover rate in the first six months of 2018. This is significantly higher than turnover in other departments. The document aims to analyze the causes of high turnover and propose solutions through interviews and a theoretical framework.
Giải Pháp Hoàn Thiện Hoạt Động Marketing Tại Công Ty Kfc. Trong bối cảnh thị trường thức ăn nhanh Việt Nam hiện nay đang ngày càng đa dạng, cạnh tranh và bão hòa, thì việc phân tích và đưa ra các giải pháp nhằm hoàn thiện hoạt động marketing tại Công ty liên doanh TNHH KFC Việt Nam luôn có ý nghĩa quan trọng không chỉ trong việc nâng cao hiệu quả kinh doanh mà còn nhắm đến yếu tố duy trì sự phát triển bền vững của công ty trong thị trường.
Luận Văn Các Yếu Tố Ảnh Hưởng Đến Tỷ Lệ Thu Nhập Lãi Thuần Của Các Ngân Hàng. Mục tiêu nghiên cứu của luận văn là phân tích các yếu tố ảnh hưởng đến tỷ lệ thu nhập lãi thuần của các ngân hàng thương mại cổ phần tại Việt Nam, chỉ ra các yếu tố tác động cùng chiều với tỷ lệ thu nhập lãi thuần, các yếu tố tác động ngược chiều với tỷ lệ thu nhập lãi thuần. Từ đó, tác giả đánh giá tính phù hợp giữa kết quả nghiên cứu và cơ sở thực tiễn tại nền kinh tế Việt Nam. Tiếp theo, tác giả đề xuất các giải pháp thực hiện tăng cường hoạt động hoặc kiểm soát hoạt động tương ứng với các yếu tố ảnh hưởng đến tỷ lệ thu nhập lãi thuần để các Ngân hàng thương mại cổ phần tại Việt Nam đạt được muc tiêu hiểu quả hoạt động kinh doanh.
Luận Văn Bảo Vệ Quyền Lợi Người Tiêu Dùng Trong Kinh Doanh Thực Phẩm Thủy Hải Sản. Làm rõ những đặc thù trong việc bảo vệ quyền lợi người tiêu dùng trong lĩnh vực kinh doanh thủy hải sản là cơ sở lý luận cho việc đánh giá thực tiễn bảo vệ quyền lợi người tiêu dùng trong lĩnh vực kinh doanh thủy hải sản tại tỉnh Bến Tre trên cơ sở pháp luật Việt Nam hiện hành
Luận Văn Các Nhân Tố Ảnh Hưởng Đến Việc Áp Dụng Kế Toán Quản Trị Trong Các Doanh Nghiệp. Công trình nghiên cứu với mong muốn phục vụ cho cộng đồng, giúp cho những người quan tâm đến lĩnh vực này hiểu được mối quan hệ của các nhân tố đến việc vận dụng kế toán quản trị vào các doanh nghiệp thuộc lĩnh vực TMĐT và home-shopping, đặc biệt là sinh viên ngành kế toán. Các doanh nghiệp TMĐT và home-shopping có thêm cở sở để xem xét và cân nhắc việc nên hay không áp dụng công cụ kế toán quản trị vào quản lý kinh doanh. Góp phần là bằng chứng thực nghiệm vào kho tàng tri thức để các nhà nghiên cứu ứng dụng thiết kế các nghiên cứu cụ thể của họ.
Economics and Environmental Implications of Carbon Taxation in Malaysia. The objective of the present paper is to analyze the economic and environmental implications of the carbon taxation. With this regard, the present study has extended the relevant local literature by incorporating two contributions in the paper. Firstly, Malaysia currently has not implemented carbon tax on energy inputs or goods and services. In general, the carbon tax is not common in developing countries, considering the subsequent economic cost on inflation and export competitiveness. Given the rising emission level in the country, a detailed study on economic impacts of carbon tax is therefore necessary, before actual implementation. The study first conducts the investigation by retaining all the tax revenues in government’s coffers. The reasons are, firstly, to trace the sole impacts of carbon taxation on the economy; and secondly, due to the increasing pressure to reduce the large government deficit.
Ảnh Hưởng Phát Triển Tài Chính Đến Giảm Nghèo Ở Các Nước Đang Phát Triển. (1) Đánh giá tác động của việc phát triển tài chính đến việc giảm thiểu tình trạng nghèo đói ở các quốc gia đang phát triển. Trong bài nghiên cứu, luận văn sẽ thực hiện so sánh giữa mô hình ước lượng OLS, mô hình tác động cố định và
mô hình tác động ngẫu nhiên để chọn ra một mô hình tốt nhất để thực hiện kiểm định tác động của phát triển tài chính và sự giảm nghèo.
Luận Văn Tự chủ tài chính ở các đơn vị Y tế công lập tỉnh Phú Yên. Nghiên cứu cơ chế tự chủ tài chính tại BVĐK Phú Yên, phân tích đánh giá mức độ hoàn thiện cơ chế tự chủ theo hướng dẫn của Thông tư 71 nhằm tìm ra những mặt hạn chế còn tồn tại trong quá trình tiến đến tự chủ hoàn toàn vào năm 2020, qua đó vận dụng các phương pháp lý luận và thực tiễn để đề xuất giải pháp, kiến nghị khả thi nhằm hoàn thiện cơ chế tự chủ tài chính cho BVĐK nói riêng và các đơn vị Y tế công lập trong tỉnh nói chung.
Shadow Economy In The Relationship With Fdi, Institutional Quality, And Income Inequality. In summary, for the above practical background, theoretical background and research gaps, the thesis is carried out to examine the inter-relationship among FDI, institutional quality and shadow economy, as well as to investigate the impact of shadow economy on income inequality in Asian countries. The research objectives will be presented in details as below.
Ảnh Hưởng Của Hệ Thống Kiểm Soát Nội Bộ Và Công Nghệ Thông Tin Đến Hiệu Quả Quản Lý Nguồn Thu Của Các Bệnh Viện Công Lập. Mục tiêu chung của nghiên cứu là kiểm tra xem các nhân tố gồm 5 thành phần thuộc hệ thống KSNB và nhân tố công nghệ thông tin có tác động đến hiệu quả quản lý nguồn thu tại các bệnh viện công lập trực thuộc Sở y tế Tp.Hồ Chí Minh.
Các Giải Pháp Phát Triển Năng Lực Động Công Ty Baiksan Việt Nam Đến Năm 2022. Từ khung lý thuyết trên ứng dụng vào công ty TNHH Baiksan Việt Nam, với tình hình hoạt động kinh doanh hiện nay, tác giả nhận thấy cần phải cải thiện kết quả lợi nhuận, tăng tỷ suất lợi nhuận trên vốn chủ sở hữu và nâng cao lợi thế cạnh tranh thông qua việc tìm, khai thác các nguồn lực động, từ đó đề ra các giải pháp phát triển năng lực động cho công ty trong thời gian tới. Do đó, tác giả thực hiện đề tài “Các giải pháp phát triển năng lực động công ty TNHH Baiksan Việt Nam đến năm 2022”.
Luận Văn Tác Động Của Văn Hóa Tổ Chức Đến Hoạt Động Trao Quyền. Bài nghiên cứu tập trung đánh giá tác động của một số yếu tố văn hóa (như khoảng cách quyền lực, tính tập thể, sự quyết đoán, tránh mạo hiểm) đến hoạt động trao quyền của công chức. Từ đó đề xuất một số giải pháp để khuyến khích hoạt động trao quyền của công chức.
Giải Pháp Nâng Cao Động Lực Làm Việc Cho Nhân Viên Tại Công Ty Cổ Phần Bao Bì. Tạo động lực là vấn đề thuộc lĩnh vực quản trị của mỗi doanh nghiệp. Các nhà quản trị trong tổ chức muốn xây dựng doanh nghiệp vững mạnh thì phải áp dụng mọi biện pháp kích thích người lao động hăng say làm việc, phát huy tính sáng tạo trong quá trình làm việc.
Luận Văn Ảnh Hưởng Của Văn Hóa Tổ Chức Đến Chia Sẻ Tri Thức Của Nhân Viên. Văn hóa không mang tính cá thể, văn hóa là một khái niệm mang tính đội nhóm, tổ chức, bao gồm một loạt các các hành vi ứng xử mang tính định hƣớng chung dựa trên nền tảng những suy nghĩ, ý thức, nhận thức của một nhóm ngƣời, một tổ chức hay cả cộng đồng… (Schein, 2006).
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LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UPRAHUL
This Dissertation explores the particular circumstances of Mirzapur, a region located in the
core of India. Mirzapur, with its varied terrains and abundant biodiversity, offers an optimal
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population expansion, and economic progress, the effects on natural ecosystems are becoming
more evident. A crucial element of this impact is the alteration of vegetation cover, which plays a
significant role in maintaining the ecological equilibrium of our planet.Land serves as the foundation for all human activities and provides the necessary materials for
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Accurate understanding of land use and cover is imperative for the development planning
of any area. Consequently, a wide range of professionals, including earth system scientists, land
and water managers, and urban planners, are interested in obtaining data on land use and cover
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9
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Luận Văn The Problems Of Control Account Receivables Turnover And Ineffective Finance Leverage.doc
1. Dịch vụ viết thuê đề tài – KB Zalo/Tele 0917.193.864 – luanvantrust.com
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UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------------
Nguyen Trang Kieu Diem
THE PROBLEMS OF CONTROL
ACCOUNT RECEIVABLES
TURNOVER AND INEFFECTIVE
FINANCE LEVERAGE OF MINH PHU
SEAFOOD JOINT STOCK COMPANY
MASTER OF BUSINESS ADMINISTRATION
SUPERVISOR: Dr. PHAM PHU QUOC
1
2. Dịch vụ viết thuê đề tài – KB Zalo/Tele 0917.193.864 – luanvantrust.com
Kham thảo miễn phí – Kết bạn Zalo/Tele mình 0917.193.864
TABLE OF CONTENTS
Executive Summary ................................................................................................................................................5
CHAPTER 1: INDUSTRIAL OVERVIEW AND COMPANY BACKGROUND..................................6
1.1. Industry overview........................................................................................................................................6
1.2. Company background................................................................................................................................7
CHAPTER 2: IDENTIFICATION AND DEFINITION OF THE PROBLEM.....................................11
2.1. Problems finding process.........................................................................................................................11
2.2. Company’ symptoms ................................................................................................................................11
2.2.1. The significant decrement of profitability in 2015..........................................................................11
2.2.2. The remarkable much lower of profitability compared with average industry’s ratio in 2015 . 13
2.3. Possible reasons behind the circumstance...........................................................................................14
2.4. Actual reasons behind the circumstance..............................................................................................16
2.4.1. Bad management of gross margin, operating expense, interest and taxes resulted in the lower
profit margin....................................................................................................................................................16
2.4.2. Ineffective control accounts receivable days, inventory days and fixed-asset turnover resulted
in the lower asset turnover.............................................................................................................................18
2.4.3. Ineffective financial leverage .............................................................................................................21
CHAPTER 3: DESIGN SOLUTIONS AND SUGGESTIONS...................................................................26
3.1. Possible solution to improve efficiency in asset turnover and use effective finance leverage . 26
3.2 Suitable solutions to improve efficiency in asset turnover and use effective finance leverage in
Company’s circumstance ................................................................................................................................28
3.2.1. Revise credit collections .....................................................................................................................29
3.2.2. Increase collect efficiency...................................................................................................................30
3.2.3. Manage inventory effectively.............................................................................................................30
3.2.4. Using finance leverage in appropriate time......................................................................................31
CHAPTER 4: ACTION PLAN ..........................................................................................................................32
Reference .................................................................................................................................................................35
Appendix..................................................................................................................................................................37
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LIST OF FIGURES
Figure 1. Minh Phu Seafood Join Stock Company structure
Figure 2. Minh Phu’s profitability ratios in the period 2013-2015
Figure 3. Minh Phu’s ROA, ROE compared with industry’s ratio over the period 2013-2015
Figure 4. Financial ratios linked to return on equity
Figure 5. Possible solutions of Minh Phu’s case
Figure 6. Minh Phu Seafood Joint Stock Company Action Plan
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LIST OF TABLES
Table 1. Minh Phu’s profitability ratios in the period 2013-2015
Table 2. Minh Phu’s ROA, ROE compared with industry’s ratio over the period 2013-2015
Table 3. Minh Phu’s gross profit from 2013 to 2015
Table 4. Minh Phu’s portion of each components in income statement from 2013 to 2015
Table 5. Minh Phu’s account receivable and account payable turnover over the period 2013 –
2015 Table 6. Minh Phu’s inventory day over the period 2013 - 2015
Table 7. Indicators reflecting the asset structure of Minh Phu over the period 2013 - 2015
Table 8. Minh Phu’s indicators reflecting the resource structure Table 9. Effects of some
factors to Return on equity of the Company
Table 10. Analysis the possible solutions of Minh Phu
Table 11. Minh Phu Seafood Joint Stock Company Action Plan
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Executive Summary
Minh Phu Seafood Joint Stock Company (Minh Phu), the largest shrimp processor in
Vietnam and was known as the shrimp king of Vietnam had always operated at high profit since
2012. However, the Company’s performance faced a significant down trend, even made loss in
2015. After a thorough investigation on the case, the circumstance was found there are two main
problems related to control over account receivables turnover and ineffective finance leverage of
the Company. In detail, the accounts receivable turnover in 2013 was 13.27 and 13.02 in 2014,
while the figure decrease 10.28 in 2015 which show that management of account receivable has
the problem. About the using finance leverage, the debt ratio in the period from 2013 to 2015
always high and maintain at 74% - 75% while the aquatic economic face many challenges and
difficulties in 2015. In the bad economic times, the high financial leverage made the profitability
worse. In addition, the interest rate is higher than the return on equity before tax and interest
means that the Company use the loan will decline return on equity. Financial leverage to amplify
reduce return on equity and financial risk of the company in 2015 increased.
As for solution, the author recommends on improving the problems through improve
account receivable turnover and the efficiency of finance leverage. Firstly, Minh Phu can
improve account receivables turnover through revise credit term, tight control the account
receivables and increase collection efficiency. Secondly, Minh Phu can use the finance leverage
effectively by reduce financing the debt, increase equity and use finance leverage in appropriate
time based on the economic status.
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CHAPTER 1: INDUSTRIAL OVERVIEW AND COMPANY BACKGROUND
1.1. Industry overview
Even Vietnam has a great potential for marine aquaculture, the sector also faces many
challenges. According to some reports, the country is blessed with nearly 250,000 hectares of
total area of marine and island aquaculture, of which the aquaculture area is over 150,000
hectares, the lagoon, hinterlands and islands are nearly 80,000 hectares, and the rest is open sea.
This area can be used to develop marine aquaculture including bays, coastal tidal areas and parts
of islands and open seas. Additionally, Vietnamese sea houses many species of fish that can be
naturally distributed into the sea such as grouper, snapper, orange fish, sea bass, cobia, sea bass.
In fact, in a brief report presenting in Norway in August 2016, the emerging East Asia economy
was stated to have an estimated seafood production of 6.55 million tons, making the country the
4th
largest seafood producer, the 8th
largest fishing nations, and 3rd
world largest exporter of fish
and fisheries products. Furthermore, Vietnam is also the 3rd
largest in the world in breeding,
raising, and selling Tiger Prawns, and Shrimps. Most recently, in 2017, with export growth of
more than 10% in the second quarter, total seafood export value of Vietnam in the first half of
2017 was about USD 3.6 billion, up 14.6 percent over the same period last year. Such explosive
growth and potential has made marine aquaculture a key industry in the development of Vietnam
economy.
Beside the geographical advantages mentioned above, Vietnam also faces many
challenges and difficulties. Most companies in the country remains small scale both in capital
and modern technologies. The lack in capital and technologies hinder the sector’s ability to enter
into the developed market with high requirement in quality. For instance, the Europe is the
largest importer of agricultural, forest and food products in the world. But the European market
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requires high quality of goods to ensure the safety for local consumers. In an interview with Ms.
Miriam Garcia - Ferrer, First Counselor, Delegation of the European Union in Vietnam, the lady
representative of the Europe has expressed great concern on the capability to ascertain marine
products’ quality of Vietnam. She even presented the case of Vietnam's bivalve molluscs has
been approved by the EU on the list of Vietnamese exporters, but now banned by the European
Union because of the problematic inspection by the EU as an example. In another example,
Vietnamese pangasius have also been stopped recently by some French super markets not
because of food safety but also environment problems. Nonetheless, with such geographical and
weather advantages, Vietnam marine aquaculture has great future and potential to be tapped into.
1.2. Company background
Minh Phu’s precursor was a private enterprise. It was established on 14th
December
1992. After over 20 years of continuous development, so far Minh Phu has become one of
leading seafood corporations with largest seafood export revenue nationwide as well as in the
region and all over the world.
The principal activities of the Company are to process and trade in aquatic products,
aquatic breeds and aquatic foods, machinery and equipment for aquaculture. The structure of
Group was showed in the charge below:
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Figure 1: Minh Phu Seafood Join Stock Company structure
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Principal targets of the corporation:
- Focus on its main business production lines in 2011, which are producing disease-free
and clean baby shrimp, expanding areas for raising commercial shrimp, producing
biological products for the aquaculture industry, producing and processing shrimp for
export.
- Make best efforts to maintain its role as one of Vietnam’s leading seafood exporters.
- Maintain current export markets, continuously develop new export market and
especially build Minh Phu as strong brand.
- Continuously expand areas for disease-free and industrial shrimp and associate with
forestry and fishery farms in Ca Mau to raise shrimp in large scale in other to provide
raw materials of clean shrimp to Minh Phu’s processing factories.
- Enhance the tasks of business administration, personnel organization and payment
policy, consistently give training, attract excellent employees, have good incentive
policies to the company’s leading officers, management personal and workers.
- Associate with Vietnam’s leading producers of shrimp feed to invest in building
factories producing feed for shrimp to supply the feed to Minh Phu’ shrimp raising
enterprises, forming a full circle process from producing feed and disease-free shrimp
babies, raising clean shrimp to processing for export. Our target is for Minh Phu to
feed 5.000ha of industrial shrimp and make improvement to over 70% of whole
shrimp needs of the Corporation by 2015.
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- Invest strongly in science and technology to study and select the line of chemical
treatments of shrimp. Breeding white leg shrimp for desirable general characteristics
such as fast growth and adaptability to changes in climate and weather.
- Research and build a modern model, which achieves high rates, low prices and
ensures safety in the biological work to foster sustainable and profitable shrimp
production.
- Associate with manufacturers of carton packaging, coated PA/PE, plastic trays, tray
soap, flour production as well as the leading manufacturers of sauce in Vietnam and
the world to build packaging, supplies, materials, etc. factories to create a system of
surrounding factories around Minh Phu – Hau Giang factory to provide for factories
of Minh Phu Seafood Joint Stock Company.
- Join with local and foreign partners to build the Container Port on Hau Giang.
- Establish shrimp distribution companies in EU, Russia and China, etc. in order to
increase export profits and enhance the efficiency of producing, processing, exporting
and distributing shrimp globally.
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CHAPTER 2: IDENTIFICATION AND DEFINITION OF THE PROBLEM
2.1. Problems finding process
In order to identify the company’s problems, these following steps will be executed:
- Analysis the financial statement, finance ratio and compare with the industry to identify
the symptoms;
- Review the literature related to the symptoms;
- Further study of the company financial, accounting data and the industry;
- Interview with management personnel, Board of Management of the Company, for
further information.
2.2. Company’ symptoms
After deep analysed the financial statement and investigated the financial ratios, the
symptoms of the problem had revealed as following:
- The significant decrement of profitability in 2015 and ;
- The remarkable much lower of profitability compared with average industry’s ratio in
2015.
2.2.1. The significant decrement of profitability in 2015
Minh Phu experienced the toughest year 2015 in the last decade with the loss of VND 6.9
billion even though it was the largest shrimp processor in Vietnam and was known as the shrimp
king of Vietnam, it had always operated at high profit since 2012. The table 1 below shows the
profitability ratios over the period from 2013 to 2015:
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2015 2014 2013 2015 against 2014 against
Amount % Amount %
Net operating profit 7,740 1,052,7 375,906 (1,044,97 -99% 676,80 180%
Profit before tax 12,136 1,047,5 365,756 (1,035,40 -99% 681,78 186%
Profit/(loss) after tax (6,946) 921,048 293,834 (927,994) -101% 627,21 213%
Basic EPS 474 10,930 3,882 (10,456) -96% 7,048 182%
Return on asset -0.08% 10.89% 4.23% - 6.66%
Return on equity -0.31% 42.88% 17.28% - 25.60
Table 1. Minh Phu’s profitability ratios in the period 2013-2015
The table shows that the profit decreased significantly, even loss in 2015. Profit after tax
was reach VND 921 billion in 2014 while it was negative VND 6.9 billion in 2015, that
decreased by 101%, equivalent to 928 billion VND. Return on assets rose sharply from 4.23% in
2013 to 10.89% in 2014 and went down significantly to -0.08% in 2015. In 2014, the ROA of
10.89% means that every 100 VND capital of the enterprise will generate after-tax profit of
10.89 VND. While every 100 VND capital in 2015 made a loss 0.08 VND. In addition, it can be
seen that the return on equity increased from 17.28% in 2013 to 42.88% in 2014 and decreased
noticeably to -0.31% in 2015. The indicator show that while each 100 VND of equity generated
17.28 VND and 42.88 VND of profit-after tax respectively in 2013 and 2014, each 100 VND of
equity in 2015 made loss of 0.31 VND. The EPS showed the noticeable down-ward trend in
2015. From 2013 to 2014, the EPS increased steadily from VND3,882 per share and got the peak
at VND10,930 per share in 2014. However, in 2015, the EPS went down steeply and reached the
lowest point was VND474 per share. The figure below show the overall picture of decrease of
profitability from 2013 to 2015:
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1200000
1000000
800000
600000
400000
200000
0
2013 2014 2015
-200000
Net operating profit Profit before tax
Profit/(loss) after tax Basic EPS
2015
2014
2013
-0.1 0 0.1 0.2 0.3 0.4 0.5
Return on equity Return on asset
Figure 2. Minh Phu’s profitability ratios in the period 2013-2015
2.2.2. The remarkable much lower of profitability compared with average industry’s ratio
in 2015
2015 2014 2013
Return On Assets (ROA) -0.08% 10.89% 4.23%
Average ROA of aquatic industry in Vietnam 1% 2% 3%
Return On Equity (ROE) -0.31% 42.88% 17.28%
Average ROE of aquatic industry in Vietnam 4% 4% 7%
Table 2. Minh Phu’s ROA, ROE compared with industry’s ratio over the period 2013-2015
The table 2 shows that the average ROA of aquatic industry also experienced the down-
trend, ROA decreased from 3% in 2013 to 2% in 2014 and 1% in 2015. However, it can be seen
that the ROA of Minh Phu went down noticeably from 10.89% in 2014 to negative 0.08% in
2015. The much lower ROA compared with average one of aquatic industry in Vietnam
demonstrates the lower efficient of using assets of the Company.
The return on equity increased from 17.28% in 2013 to 42.88% in 2014 and decreased
noticeably to -0.31% in 2015. When compared with the average ratios of the same industry in
Vietnam, it showed the significant lower of ROE of the Company.
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0.5
0.4
0.3
0.2
0.1
0
2013 2014 2015
-0.1
ROA Industry's ROA ROE Industry's ROE
Figure 3. Minh Phu’s ROA, ROE compared with industry’s ratio over the period 2013-2015
2.3. Possible reasons behind the circumstance
Kostini el at (1) measured the profitability based on analysis of Return on Asset (ROA),
Kostini states that ROA is the effective profitability measurement used to assess the
effectiveness in generating profit of the company’s assets.
Collier (2) presents financial analysis of a bank by DuPont analysis which based on
analysis of return on equity which is disaggregated into net profit margin, total asset turnover and
the equity multiplier.
Isberg (3) carried out a study to get insight of the firm’s performance, liquidity, leverage,
operating efficiency and profitability used the DuPont ratio. The formula is defined clearly as:
Net Income/Total Equity = (Net Income/Net Sales) x (Net Sales/Total Asset) x (Total
Asset/ Total Equity); or it can be rewritten as
Net Income/Total Equity = (Net Income/Net Sales) x (Net Sales/Total Asset) x (Total
Asset/Total debt) x (Total debt/ Total Equity).
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Kieu Minh Nguyen (4) stated that profitability is affected by profit margin, asset turnover
and financial leverage and impacted by below factors:
Figure 4. Financial ratios linked to return on equity
The figure 4 provides the quick insight into factors affecting the profitability including:
gross margin, operating expense, interest, taxes, accounts receivable days, inventory days, fixed-
asset turnover, leverage and coverage.
Therefore, there are 3 possible problems below can cause the decline of ROE:
- Bad management of gross margin, operating expense, interest and taxes resulted in
the lower profit margin;
- Ineffective control accounts receivable days, inventory days and fixed-asset turnover
resulted in the lower asset turnover;
- Ineffective financial leverage.
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2.4. Actual reasons behind the circumstance
The author performed deep analysis on financial statement by measure all factors showed
in Figure 4 to investigate the real problem of the Company in 2015 and found that there are 2
actual reasons cause the problems:
- Ineffective control accounts receivable days;
- Ineffective financial leverage
2.4.1. Bad management of gross margin, operating expense, interest and taxes resulted
in the lower profit margin
2.4.1.2. Analysing gross margin over the period from 2013 to 2015
2015 2014 2013
Revenue from sales of goods 12,472,342,348,524 15,224,802,761,482 11,206,430,460,422
Revenue deductions 185,717,938,569 130,061,808,523 -94,480,405,091
Net revenue 12,286,624,409,955 15,094,740,952,959 11,111,950,055,331
Cost of sales 11,214,768,939,264 13,078,415,992,602 9,955,628,683,286
Gross profit 1,071,855,470,691 2,016,324,960,357 1,156,321,372,045
Table 3. Minh Phu’s gross profit from 2013 to 2015
The gross profit from VND2,016 billion in 2014 to VND1,072 billion in 2015, decreased
by VND944 billion, approximate 47%. This is the problem of not only Minh Phu but also of
whole aquatic industry in Vietnam in 2015. Vietnam Association of Seafood Exporters and
Producers reported that global shrimp industry during 2015 was not facing trouble relating to
EMS syndrome, diseases that lead to the significant increase in globally source of materials as
well as processed shrimp while consumption demand decreased. That resulted in the significant
decrease in unit price during 2015 and lost some foreign customers, as Vietnamese companies
had to experience the competition for foreign company offering the competitive price. The
decrease of selling price, loss market and the competition with foreign competitors resulted in
the total cost divide total revenue was high are the common problems of whole aquatic industry
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in Vietnam. Therefore, the decrement of gross margin is not due to bad management cost of sales
of Minh Phu’s management.
2.4.1.2. Analysing operating expense over the period from 2013 to 2015
In order to identify if operating expense including selling expense and general and
administration expense is the main factor leading to the decrement of gross margin, the table 4
showed the portion of each components in net revenue over the period from 2013 to 2015.
VND Portion (%)
2015 2014 2013 2015 2014 2013
Net revenue 12,286,624,409,955 15,094,740,952,959 11,111,950,055,331 100% 100% 100%
Cost of sales 11,214,768,939,264 13,078,415,992,602 9,955,628,683,286 91% 87% 90%
Financial
270,405,669,954 146,635,796,390 113,758,468,639 -2% -1% -1%
income
Financial
440,583,234,855 257,698,717,542 305,521,702,030 4% 2% 3%
expenses
Selling
729,270,070,995 694,714,723,573 478,047,143,198 6% 5% 4%
expenses
GA expenses 164,667,684,883 157,837,686,476 110,604,902,548 1% 1% 1%
Other income 20,918,014,777 9,762,705,782 6,074,024,049 0% 0% 0%
Other
16,521,947,296 14,934,290,801 16,224,376,412 0% 0% 0%
expenses
EBT 12,136,217,393 1,047,538,044,137 365,755,740,545 0% 7% 2%
Table 4. Minh Phu’s portion of each components in income statement from 2013 to 2015
The table 4 show that the operating expense including selling expense and GA expense
made up the small portion in total net revenue. The portion of operating expense kept the quite
stable portion. In detail, the selling expense only holds 4%, 5% and 6% respectively in 2013,
2014 and 2015. In addition, the GA expense only occupies 1% in whole 3 years in this period.
For this reason, the management of operating expense also not the actual problems of Minh Phu
in 2015.
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2.4.1.3. Analysing interest expense over the period from 2013 to 2015
The tables 4 indicates the opposite trend of interest expense from 2013 to 2014 and 2014
to 2015. The interest expense decreased by VND47.8 billion, approximate 16% from 2013 to
2014. On the contrary, the interest expense increase significantly by VND182.9 billion,
approximate 71% from 2014 to 2015. In addition, in can be seen that the portion of interest
expense in 2015 made up 4% double the one in 2014. Correspondingly, the management over the
interest expense in 2015 is the main reasons lead to the decrease of profit margin in this year.
Kieu Minh Nguyen (8) concluded that the larger interest expense implied the increase in
financial leverage. The financial leverage was deeply analysed in the part 2.4.3 below.
2.4.2. Ineffective control accounts receivable days, inventory days and fixed-asset turnover
resulted in the lower asset turnover
2.4.2.1. Analysing accounts receivable days over the period from 2013 to 2015
2015 2014 2013
1 Net revenue 12,286,624 15,094,741 11,111,950
2 Liabilities 6,981,588 7,010,269 5,616,870
3 Total asset 9,225,148 9,285,489 7,637,543
4 Average account receivable 1,194,664 1,159,468 837,094
5 Account receivable turnover 10.28 13.02 13.27
6 Days of account receivable turnover 33.11 30.83 34.29
7 Average account payable 158,718 332,402 334,151
8 Cost of sales 11,214,769 13,078,416 9,955,629
9 Account payable turnover = (13)/(12) 70.66 39.35 29.79
10 Days of account payable turnover = 5.17 9.28 12.25
Table 5: Minh Phu’s account receivable and account payable turnover over the period
2013 – 2015
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The accounts receivable turnover in 2013 was 13.27 and 13.02 in 2014, while the figure
decrease 10.28 in 2015. The amount decreased by 2.73, approximate 21% compared with 2014.
The Company's accounts receivable turnover decreased at the end of 2015 show that the
management of account receivable has the problem. The lower the turnover, the longer the time
between sales and collecting cash. There is an opportunity cost of holding receivables for a
longer period of time, resulted in the lower asset turnover. Days of account receivable turnover is
the length of time it takes to clear all Accounts Receivable, or how long it takes to receive the
money for goods it sells. According the table above, the average collection period in 2013 was
34.29 days, 30.83 days in 2014 and increased to 33.11 days in 2015. The collection period
increased by 2.28 days or 7% compared with 2014. The reason is that in 2015 the rate of increase
of the Company's accounts receivable at a 3%, equivalent to VND 35 billion while the average
revenue had a down trend by VND 7.6 billion, approximate 19%. This represents the problem in
collecting receivables from customers of the Company.
Account payable turnover of Minh Phu had a significant increase from 29.79 in 2013 to
39.35 in 2014 and 70.66 in 2015. The amount increased by 31.31, approximate 80% compared
with the turnover in 2014. This indicated that Minh Phu had to follow the strict credit term of
suppliers while the Company manage the collecting from customer not good, the Company had
to borrow loans to make payment for suppliers. Correspondingly, accounts payable days also
decreased from 12.25 days in 2013 to 9.28 days in 2014 and 5.17 days in 2015.
Compared the account receivables and account payables, the author found that Minh
Phu’s capital was noticeably occupied in 2015. The poor management over the account
receivables turnover lead to the lower asset turnover in 2015.
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2.4.2.2. Analysing inventory day over the period from 2013 to 2015
2015 2014 2013
1 Cost of sales 11,214,769 13,078,416 9,955,629
2 Average inventory 4,382,090 3,457,881 2,346,352
3 Inventory turnover = (1) 2.56 3.78 4.24
4 Days in inventory = 140.67 95.18 84.85
Table 6. Minh Phu’s inventory day over the period 2013 - 2015
The inventory in 2013 was 4.24 and rotation period was 84.85 days inventory, in 2014
inventory turnover reduce to 3.78, correspondingly the period of rotation went up by 95.18 days.
In 2015, inventory turnover was 2.56 and the period of rotation was 140.67 days. Inventory
turnover increased in 2015 compared to 2014 1.22 shows that the company faced the difficult in
selling goods in 2015. As mentioned in the part 2.3.1, Vietnam Association of Seafood Exporters
and Producers (5) reported that global shrimp industry during 2015, the difficulty in selling
goods due to the lower global’ demand is the common problems of the industry. Hence, the
management over the inventory is not the main reason affecting the lower asset turnover.
2.4.2.3. Analysing fixed asset turnover over the period from 2013 to 2015
Steven Bragg (6) stated that a manufacture services business including trading business
that requires a minimal amount of fixed assets may have few or no noncurrent assets. For this
reason, the non-current is much lower than the current asset that indicated by the table 7 below:
The Company Aquatic industry
2015 2014 2013 2015 2014 2013
1 Current assets 7,264,439 7,592,303 5,871,493
2 Long-term assets 1,960,709 1,693,186 1,766,050
3 TOTAL ASSETS 9,225,148 9,285,489 7,637,543
4 Current asset ratio = (1)/(3) 78.75% 81.77% 76.88% 76% 74% 74%
5 Long-term asset ratio = 21.25% 18.23% 23.12% 24% 26% 26%
Table 7. Indicators reflecting the asset structure of Minh Phu over the period 2013 - 2015
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The current asset ratio was 76.88% and long-term assets ratio is 23.12% in 2013. In 2014,
the ratio current assets was 81.77%, while the rate long-term assets was 18.23%, that means in 1
VND of total assets, the current assets accounted for 0.7688 VND, and long-term assets
accounted for 0.2312 VND. In 2015, the rate short-term assets was 78.75%, while the rate of
long-term assets is 21.25% means that 1 VND of copper assets, the short-term assets accounted
for 0.7874 VND, while long-term assets accounted for 0.2125 VND. The ratio of assets invested
in current asset and long-term asset of the company over three years did not fluctuate too much.
It can be seen that the proportion of assets invested in current asset was higher proportion of
long-term asset. This percentage is reasonable when compare with the average percentage of
aquatic industry as the Company is operating as a commercial business. Accordingly, the
management over the fixed assets turnover is not the main reason of the lower asset turnover.
2.4.3. Ineffective financial leverage
2.4.3.1. Analysing the leverage over the period from 2013 to 2015
The Company can use of financial leverage in the capital structure that maybe contributes
heavily in the success or failure of companies, based on their ability to balance the general
positive and negative possible effects of it. The table 8 below provide the overview on the level
using financial leverage of the Company compared with the aquatic industry in Vietnam.
The Company Aquatic industry
2015 2014 2013 2015 2014 2013
1 Liabilities 6,981,588 7,010,269 5,616,870
2 Equity 2,243,560 2,275,219 2,020,673
3 Total resources 9,225,148 9,285,489 7,637,543
Liabilities ratio = (1)/(3) 76% 75% 74% 75% 67% 63%
Equity ratio = (2)/(3) 24% 25% 26% 25% 33% 37%
Liabilities/Equity=(1)/(2) 311% 308% 278% 298% 203% 168%
Table 8. Minh Phu’s indicators reflecting the resource structure
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Debt ratio increased due to higher grow rate liabilities compared with the grow rate of
total capital. The Company's liabilities ratio increased during 3 years due to the Company use the
loan to expand the business scale. Loans increased mainly due to increase of long-term debt,
which is mainly due to the Company issue bonds with amount VND 3,500 billion in 2015.
Increasing debt ratio means that the financial risk of the company increases, the company is
using the financial leverage to contribute to higher profit margins and return on equity as well.
The equity ratio measures how much of the Company’s assets were financed by investors. In
other words, this is the investors' stake in the company. The ratio had a down trend through 2013
to 2015, that decreased from 26% in 2013 to 25% in 2014 and 24% in 2015. A lower ratio also
shows potential creditors that the company is less sustainable and more risky to lend future loans.
Moreover, the equity ratio is always less than 0.5 show the low level of financial autonomy of
the Company so the financial risk the company also increased.
The use of financial leverage has both positive and negative impact on the business
performance. If the Company manage the loans well, or using financial leverage effectively, the
return on the equity will increase. However the financial leverage also means increased financial
risks of the business, if the Company borrows too much, that can lead to loss the ability to pay
the principal and interest expense. How effective the Company use the financial leverage would
be analyzed more in the following part.
2.4.3.2. Analysing the interest coverage over the period from 2013 to 2015
Kraus (7) stated that the optimal capital structure is determined by balancing the positives
& negative effects of financial leverage. In other words, balancing the benefits of debt financing,
that includes: tax savings, reducing agency cost, with the cost associated with the debt, that
include direct and indirect bankruptcy costs.
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The use of financial leverage proven to be beneficial when the investment made by the
leverage earn returns more than the cost of debt. Miller (8) suggested that although that debt
financing is affiliated with a higher chance of bankruptcy risks & costs. These disadvantages are
relatively small as compared to the tax shield that associates the use of financial leverage.
Perinpanathan (9) showed that the financial leverage may have a negative impact if the
investment that has been mad did not achieve sufficient returns (higher than the cost of debt)
having no recognizable income to shield, meaning that the if the returns is lower than the cost of
debt the company will be at a higher risk due to the level of debt they undertook, resulting in
reducing the overall value of the company.
Furthermore, Baxter (10) suggested that the use of financial leverage is linked to a higher
possibility of bankruptcy risks & financial defaults. Due to the commitment that is associated
with the use of debts, such as the periodic interest payments, and the principle paid by the
company, and because of these risks shareholders will demand a higher return, which puts the
company in a critical situation.
Abdallah (11) stated that there is another way to calculate the ROE as follow:
ROE = [ROAE + D/E (ROAE – i)] x (1 – t)
Therein:
- ROAE: Return on asset before tax and interest expense
- D: Debt
- E: Equity
- i: interest rate
- t: CIT rate
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2015 2014 2013
1 Interest expense 217,115 167,134 249,916
2 Debt 6,981,588 7,010,269 5,616,870
3 EBIT 229,251 1,214,672 615,672
4 Average total asset 9,255,318 8,461,516 6,953,737
5 Interest rate (i) = (1)/(2) 3.11% 2.38% 4.45%
6 Return on asset before tax and 2.48% 14.36% 8.85%
interest expense
7 Interest Coverage (5/6) 0.80 6.02 1.99
Table 9: Effects of some factors to Return on equity of the Company
It can be found that in 2013, i = 4.45% <ROAE (8.85%) means that the company uses
many loans and increase the margin equity. Financial leverage has amplified the return on equity.
Similarly, in 2014 the Company continued to use financial leverage to increase the rate of return
of equity, i = 2.38% <ROAE (14.36%). However the use of financial leverage is potential risks,
the Company should have the appropriate management measures.
On the contrary, in 2015, i = 3.11%> ROAE (2.48%) means as companies use the loan
will decline return on equity. Financial leverage to amplify reduce return on equity and financial
risk of the company in 2015 increased.
If the Company did not use finance leverage (i.e. the Assets-to-Equity Ratio is 1):
In 2013, ROE0 = 1.60 x 2.64 x 1
If the Company uses the finance leverage:
ROE = 1.60 x 2.64 x 4.09 = 4.09 x ROE0
The using of finance leverage help to magnify the Company’s ROE to 4.09 times
compared with the no finance leverage condition.
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Similarly, the using of finance leverage help to increase ROE of the Company by 3.94
times and 4.10 times respectively in 2014 and 2015. It can be seen that the financial leverage
help to increase ROE in the ideal level, however, the environment in 2015 went down, the
Company has to face a difficulty year, the use of financial leverage causes an increase in the
company’s financial risk. As a result of the high risk that associate the use of the use of debt
securities, the company becomes subject to more restrictions.
In addition, Julie et al (12) stated that the interest coverage measures the ability to meet
interest payment obligations with business income. Ratios close to 1 indicates company having
difficulty generating enough cash flow to pay interest on its debt. Ideally, a ratio should be over
1.5. The table 9 shows the interest coverage was above 1.5 in 2013 and 2014, however, in 2015,
that the interest coverage decreased to 0.8 indicated the ineffective leverage in 2015.
Nyamita (13) indicated finance leverage performed well in good economic environment.
However, in the bad economic times the financial leverage has shown negative relationship to
profitability. As can be seen, even the economic environment fluctuated in the period from 2013
to 2015, the equity and debt finance ration of Minh Phu did not change flexibly with the change
of economic status. It indicates the passive action of the Company with the economic
environment.
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CHAPTER 3: DESIGN SOLUTIONS AND SUGGESTIONS
3.1. Possible solution to improve efficiency in asset turnover and use effective finance
leverage
To enhance the circumstance, the enterprise should improve efficiency in asset and
liability turnover management, and financial activities and using effective finance leverage.
Rao (14) indicated that the effective management receivables will increase the current
assets of company which lead to increase in the working capital of the company and increase the
profitability.
Joyce (15) stated that there are three factors impacting the management account
receivables. Debt policy, business processes and customer expectations. They are all associated
factors to management of accounts receivable turnover.
Ayers et al (16) found that to avoiding potential problems when selling accounts
receivable, the Company need to consider and take steps on review the customer, credit term to
avoid serious problems that can arise from participation in an accounts receivable financing
program.
Goel et al. (17) claimed that financial leverage showed the relationship between
borrowed funds and owner’s funds in the capital structure of a firm. It includes debt, common
equity and preferred equity that are used to finance the firm’s total assets, operations and
financial growth. The core issue of an effective capital structure is the choice of the percentage
between the debt and the equity in which earnings before interest and taxes (EBIT) is higher than
interest rate and the enterprises could take advantage of the leverage.
Jensen (18) concludes in his research that the leverage decision is fundamentally an
exercise in balancing the costs and benefits at different levels of debt.
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Vătavua (19) researched on many Romanian manufacturing companies and got the final
finding that the most profitable manufacturing companies were those maintaining a high
proportion of equity in their capital mix, avoiding borrowed funds. The researcher also stated
that shareholders’ equity has a positive impact on performance indicators, while total debt and
short-term debt have negative relationships with ROA and ROE.
Lime (20) indicated two strategies companies commonly use to reduce their debt to
capital ratio: increasing sales revenues and profitability and more effective management of
inventory.
Nyamita (21) indicated finance leverage performed well in good economic environment.
However, in the bad economic times the financial leverage has shown negative relationship to
profitability. The Company should consider the economic environment to use the effective level
of finance leverage.
Therefore, the possible solutions for this problem are stated in the chart below:
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Revise credit
collections
Improve account
Increase
collections
receivable turnover
efficiency Increase sales
revenues and
Offer the reward profitability
POSSIBLE on efficient
payments
SOLUTIONS Manage inventory
Reduce financing
effectively
the debt and
Improve the increase equity
Issue new shares
efficiency of
finance leverage Use finance
leverage in
appropriate time
Increase capital
by retain earning
Figure 5. Possible solutions of Minh Phu’s case
3.2 Suitable solutions to improve efficiency in asset turnover and use effective finance
leverage in Company’s circumstance
Solution Analysis
1. Revise credit collections Possible.
In 2015, the Company extended credit term
for some key clients which lead to the
increase of account receivable turnover day.
2. Increase collect efficiency Possible.
Currently, the control payment term over the
Company’s customer is not tight and not
close-checked.
3. Offer the reward on efficiency payment Reject.
In 2015, the priority task of the Company is
reduce cost to improve the profitability.
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4. Increase sales revenues and profitability Reject.
The decrement of revenue in 2015 was
common problems of all companies in the
same industry.
5. Manage inventory effectively Possible.
The balance inventory of the Company in
2015 was significant while the selling
activities faced the difficulty.
6. Issuing new share Reject.
The Company’s share is reach the budget. In
addition, the cost of issuing new share is high.
7. Increase capital by retain earning. Reject.
The Company’s performance is went down.
In 2015, the Company did not create the
income, even made loss.
8. Use finance leverage in appropriate time Possible.
The Company is passive against the change of
economic. Even the economic change over
the time, the debt ratio of the Company keeps
stable from 2013 to 2015.
Table 10. Analysis the possible solutions of Minh Phu
3.2.1. Revise credit collections
As the increase in receivable from customers of the Company will lead to the risk of
uncollected receivable if customers are no longer available solvency, the Company should
strictly control credit term over its customers. In 2015, due to the difficulty economic of aquatic
industry. The Company extended the credit term for key customers, the account receivable
turnover decreased from 13 to 10 in 2015. Therefore, the Company should selection potential
customers with good credit rating and reliability to ensure the recovery of capital for the
Company. The economic contract should be clearly state the terms of payment of customers. The
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company should consider the term of payment and payment discount limit before signing the
contract.
3.2.2. Increase collect efficiency
Monitoring account receivables is essential for the Company to control, classify and
evaluate the status of customer’s debt in order to have timely and proper solution for each kind
of debt. Currently, Minh Phu has not monitor the aging report in proper way. Receivables which
are current overdue should be closely monitored and inform to the customers for collection
purposes. In addition, the Company should have proper policies and method to collect overdue
debts. Moreover, it is also necessary to analyse the reason that lead those receivables to be
overdue, so that extend the credit terms or suggest rational collection methods.
3.2.3. Manage inventory effectively
Inventory can take up a very sizable amount of a company's working capital. Maintaining
unnecessarily high levels of inventory beyond what is required to fill customer orders in a timely
fashion is a waste of cash flow. In 2015, although the aquatic economic face the difficulty, the
Company maintain the inventory in a significant high level amounting to VDN4,353 billion, only
decreased by 3% compared with the inventory in 2014. In addition, the day in inventory increase
from 95 days in 2014 to 140 days in 2015. That high level in inventory while the selling
activities faced difficulties indicated the overinvestment of the Company. Therefore, the
Company should always maintain proper level of inventories and stable supply sources. High
remain level of inventories will increase holding cost, decrease profit. Minh Phu must reasonably
calculates and evaluates its level of inventories not only to reduce storage cost and related
expenses but also have sufficient source of material supply for manufacturing.
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3.2.4. Using finance leverage in appropriate time
Nyamita (15) indicated finance leverage performed well in good economic environment.
However, in the bad economic times the financial leverage has shown negative relationship to
profitability. In reality, the company’s debt ratio in 2014 is high at 0.74 at the beginning of the
year and 0.75 at the end of year; this indicates the high level of financial leverage. Using
financial leverage at high level contains significant financial risk, then the company should
balance the use of debts and equity, it will help the company be able to self-control its financial
capability. The company should establish a specific financial department, which takes over
financial analysing and orienting for the company. At present, personnel in the financial
accounting department is put in charge of financial analysing which is inefficient. Thereby, the
company should consider separating financial department and accounting department to enhance
performance in workings.
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CHAPTER 4: ACTION PLAN
The action plan for the proposed solution above can be completed in a year starting in 1st
January
2016 to 31st
December 2016 as follow:
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Solution Task Detail Start date End date Duration
Selection potential customers 1 January 2016 28 February 2016 2 months
Improve Revise credit collections Review credit term in economic 28 February 2016 30 April 2016 2 months
account contracts
receivable Monitor account receivable by aging 1 January 2016 31 March 2016 3 months
turnover
Increase collect efficiency
report and review the collection
Set up policies and method to collect 31 March 2016 30 May 2016 2 months
overdue debts
Improve
Manage inventory effectively
Reassess the customer demand to 30 April 2016 31 December 8 months
the maintain proper level of inventories 2016
efficiency
Using finance leverage in
Set up the financial department 28 February 2016 31 March 2016 1 months
of finance
appropriate time
Completing analysing, managing 31 March 2016 31 December 9 months
leverage corporate finance activities 2016
Table 11. Minh Phu Seafood Joint Stock Company Action Plan
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Figure 6. Minh Phu Seafood Joint Stock Company Action Plan
The action plan can be divided into two main period:
- From 1 January 2016 till 30 May 2016
- From the beginning of June 2016 till the end of the year
Of which, in the first period, Minh Phu may simultaneously selection potential
customers, review credit term in economic contracts, monitor account receivable by aging report
and review the collection, set up policies and method to collect overdue debts and set up the
financial department.These are all activities that can be done almost right away.
In the second period, Minh Phu may carry out the remaining activities including reassess
the customer demand to maintain proper level of inventories and completing analysing,
managing corporate finance activities. As these activities made up a long time to complete and it
incurred daily based on the customer demand, customer order and any change of economic
environment. The business should also have either a monthly or a quarterly meeting schedule or
both assessing the performance of these activities, ascertain of the target, adjusting with changes,
and possibly edition of the list of activities. After all, some activities listed in the first period
should be done at all times instead of a brief period. Nonetheless, on 31st
December 2016, Minh
Phu may also conduct an assessment period for all activities.
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Reference
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Kham thảo miễn phí – Kết bạn Zalo/Tele mình 0917.193.864
10. Baxter N. Leverage, Risk of Ruin and the Cost of Capital. Journal of Finance. 1967; 3956.
11. Abdallah B, Hussein S. The effect of financial structure, financial leverage, and profitability
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CAPITAL: A STUDY ON SELECT CEMENT COMPANIES. International Journal of
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15. Joyce K. Gitobu. Factors affecting the management of accounts receivables in the hotel
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Appendix
Appendix 1. Balance Sheet of Minh Phu from 2013-2015
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Appendix 2. Income statement of Minh Phu from 2013-2015
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Appendix 3. Interview with Minh Phu’s employees
Question 1: Why did the performance of Minh Phu decrease noticeably and reach the
lowest in the past 3 years, even the Company made loss in 2015?
Mr. Le Van Diep, Deputy General Director: 2015 is a difficult year for the seafood industry in
the world and in Vietnam as well. In detail, the price of shrimp reach the lowest point in the past
5 years, caused by the fall of oil’s prices in the world. Currency of India, Indonesia devalued
significantly, the price of shrimp from these countries went down dramatically from 30% to
40%. Meanwhile, the price of shrimp in Vietnam was high due to the hight cost of shrimp
breeding. Quality of shrimps from Vietnam decreased resulted in the low competitive advantages
in price and quality.
Mr. Nguyen Thien Tam, Head of Supervisory Board: In 2015, there were fluctuations and
difficulties for the world's seafood industry: prices of shrimp down, oil prices down, currencies
devalued in many countries, shrimp prices in the country were high. All these factors leaded to
the company did not reach the business plan set out for 2015.
Question 2: Why did the expense of the Company increase while the revenue decreased?
Mr. Le Van Diep, Deputy General Director: The increase of expense mainly related to the
selling expense and interest expense. In which, the selling expense increased by VND34 billion,
5% and financial expense increase significant by VND183 billion, 71%. Selling expense
increased mainly contributed by the increase of warehouse rental fee, according to the policy of
the Company, we expected that the price of shrimp increase next year, we storage inventories as
high level to reserve for high demand next year. About the financial expense, we had more
transactions in foreign exchanges (long-term borrowing, short-term borrowing) which lead to the
difference change on FX rate.
Mr. Luu Minh Trung, Chief accountant: The financial expense increased significantly come
from the increase of interest expense by 30% equivalent to VND50 billion as the long-term debts
with VND 3,500 bonds issued during this year. We issued corporate bond VND 3,500 billion on
20 May 2015 for working capital to purchase more material to reach high demand they forecast
in 2015, but the seafood industry had many fluctuations that lead to the performance was not as
expectation.
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Kham thảo miễn phí – Kết bạn Zalo/Tele mình 0917.193.864
Question 3: Why did the Company maintain the high level of inventories in 2015 even
the selling activities was not good?
Mr. Luu Minh Trung, Chief accountant: The inventories increased a lot in 2015 as we predict
the higher demand of aquatic product in the coming years as well as to prevent the shortage of
raw materials due to the epidemic diseases has not been fully controlled.
Question 4: Why did account receivable turnover decrease while account payable
turnover increase?
Mr. Le Van Diep, Deputy General Director: The average collection period in 2015 was
noticeably long in the last 3 years. We do not well manage the account receivable, the account
receivable was not controlled tightly and closely. We also do not has the detail policy or penalty
stated in trade contract for the late payment. In 2015, as the seafood industry faced difficulties,
our customer have a trouble in selling shrimp to end customer, so we extended the term payment
for our key customers to support them.
Mr. Luu Minh Trung, Chief accountant: We mainly purchase shrimp raw material from
farmer and household. For this reason, we cannot hold the payable in a long time. Even the
difficulties, we need to made payment to the farmer to continue breeding shrimp. That resulted in
the increase of payable turnover.
Question 5: Why the Company always maintain high debt ratio, even the economic
environment was bad in 2015 even it resulted in the high interest expense?
Mr. Luu Minh Trung, Chief accountant: We expected that sales in 2015 would reach to VND
23,000 billion and profit after tax would be VND1,500 billion higher than 2014's figures 53%
and 63% respectively, we issued corporate bond VND3,500 billion on 20 May 2015 for working
capital to purchase more material to reach high demand they forecast in 2015. The increase of
interest expense increase also contributed by the foreign exchange difference. We recognized the
diminution of VND against USD in 2015, we decide to change all short-term borrowing in USD
to VND to be not effected by the increase of foreign exchange rate. Until the USD borrowing
maturity and change to VND in September 2015 while the foreign exchange rate at the end of
2015 keep stable So we had to bear a higher interest rate when borrowing in VND, average to 6-
7%/year compare with borrowing in USD with interest rate 3 – 45%/year while the foreign
exchange rate quite stable after our change.
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