GROUP ASSIGNMENT

Financial statement analysis

DAT PHUONG GROUP

*********

Group information

Course: FIN202 Class: IB1807

Lecturer: Hoang Van Tuong Submission due: 23/10/2023

Members

1. Hoàng Văn Hùng 2. Nguyễn Thị Minh Nguyệt

3. Phùng Phương Thanh 4. Lê Hoàng Vũ

5. Vũ Minh Hiếu 6. Nguyễn Phương Thảo

7. Phan Thị Thu

 Table of content

1. Introduction 2
a. Main view 2
b. Position 2
c. Main business 3
d. Important project 3
e. Competitors 3
2. Financial statement analysis 4
a. Perform Common-size analysis for Balance sheet and Income Statement. Calculate,
comment on trend and compare with peer group or industry average. 4
b. Perform Ratios analysis. Calculate, comment on trend and compare with peer group
or industry average. 7
c. Perform Dupont analysis. Calculate, comment on trend and compare with peer group
or industry average. What are the main factors that drive ROE? 10
d. 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? 11
3. Conclusion 15
I. Introduction
a. Main view
Dat Phuong Joint Stock Company (DPG), formerly known as Dat Phuong Construction and
Transport JSC, was established in 2002. The company operates mainly in the field of
investment in construction and installation of transport and irrigation works. In addition, DPG
also participates in freight transportation, sales of electricity, construction materials and rental
of construction machinery and equipment.

b. Position
Dat Phuong is a leading Sustainable Real Estate Construction and Development Group that
specialises in construction and energy investment, setting the standard for eco-conscious real
estate products. Their extensive portfolio includes a range of remarkable achievements in the
construction and infrastructure sector, including iconic projects like the An Nghia Bridge,
Thu Thiem Bridge, and the An Suong - An Lac Flyover in Ho Chi Minh City. With a national
presence, they have also left their mark on key projects like the Da Len Bridge in Thanh Hoa,
Ben Thuy II Bridge in Nghe An, and the Cua Dai Bridge in Quang Nam. In addition to their
construction ventures, Dat Phuong has embraced the hydropower segment with the operation
of the Son Tra 1 Hydropower Project and the Son Tra 1C Hydropower Project. Their strategic
vision includes a shift towards real estate development and the expansion of investments in
the flourishing sectors of restaurants and hotels, marking a promising future for the company
with its unwavering commitment to sustainability and innovation.

c. Main business

Dat Phuong is a multifaceted enterprise engaged in a wide spectrum of activities, including

civil works construction, transportation infrastructure, and irrigation projects. They also play
a pivotal role as a freight handler and act as agents for trading in building materials. Beyond
these endeavours, Dat Phuong extends their expertise into infrastructure development,
focusing on residential clusters and urban areas. Their capabilities encompass the production
of essential construction materials, including steel structures, reinforced concrete, and asphalt
concrete, ensuring quality and consistency in their projects. Additionally, they offer
construction machinery and equipment for rent and lease, facilitating the smooth execution of
various construction tasks. This comprehensive range of services underscores Dat Phuong's
versatility and commitment to excellence in the construction and development industry.

d. Important project
● Vinh Hao - Phan Thiet Expressway
The North-South expressway project has a total length of about 1,811 km, of which the Vinh
Hao – Phan Thiet section is 100.8km long with the beginning at Km 134+000 in Vinh Hao
commune – Tuy Phong district – Binh Thuan province and the end point at Km 235+000 –
intersecting with National Highway 1 to My Thanh at Km 2+500 in Ham Kiem commune –
Ham Thuan Nam district – Binh Thuan province. The North-South expressway, when put
into operation, will gradually complete the synchronous traffic infrastructure, meeting
transport needs; connecting economic and political centers, especially 3 key economic
regions, key industrial parks as well as creating conditions for socio-economic development
for localities through which the project passes.
● Chan May Port Breakwater
 Chan May port breakwater phase 1 has a total budget of more than 700 billion VND
implemented from 2018 to 2020. The length of the is 450 meters, the body of the is made of
stone covered with concrete.

e. Competitors

DAT PHUONG faces strong competition in the construction and design industry from several
key players, including companies such as Viet Quoc Construction Investment Design
Consulting Company Limited, An Gia Khang Design & Construction Joint Stock Company,
Joint Stock Company Dong Cuong Construction Design Investment Consulting, Luu Nguyen
Construction Company Limited, and NEVO Vietnam Construction Joint Stock Company. In
this competitive landscape, DAT PHUONG strives to distinguish itself and maintain a
competitive edge through its unique strengths, innovative approaches, and a commitment to
delivering high-quality construction and design solutions in the Vietnamese market.

II. Financial statement analysis

a. Common-size analysis for Balance sheet and Income Statement.

Balance sheet

2022 2021 2020

ASSET
I. Cash and equivalents 1,171,279,077,469 19.08% 1,046,136,113,643 17.58% 691,647,934,087 14.35%
1. Cash 558,283,002,321 9.09% 329,476,236,670 5.54% 248,380,143,119 5.15%
2. Cash equivalents 612,996,075,148 9.99% 716,659,876,973 12.04% 443,267,790,968 9.20%
II. Short-term financial 204,826,061,600 3.34% 382,826,061,600 6.43%
investments 15,205,442,500 0.32%
1. Business securities 205,442,500 0.00% 205,442,500 0.00% 205,442,500 0.00%
III. Short-term 751,251,310,426 12.24% 632,114,881,181 10.62%
receivables 569,628,283,786 11.82%
1. Customer's short-term 541,182,052,198 8.82% 478,641,688,659 8.04%
receivables 402,701,098,429 8.35%
2. Prepaid to short-term 63,584,372,651 1.04% 66,368,963,075 1.12%
sellers 94,787,039,192 1.97%
5. Required short -term 55,000,000,000 0.90% 0 0.00%
loan 0 0.00%
6. Other short -term 92,005,052,762 1.50% 87,624,396,632 1.47% 72,660,313,350 1.51%
account receivable
7. Allowance for doubtful (520,167,185) -0.01% (520,167,185) -0.01%
accounts (520,167,185) -0.01%
IV. Inventory 1,092,484,687,465 17.80% 557,207,220,498 9.36% 434,230,783,094 9.01%
1. Inventory 1,092,484,687,465 17.80% 557,207,220,498 9.36% 434,230,783,094 9.01%
V. Other current assets 73,029,539,443 1.19% 10,488,773,933 0.18% 28,095,758,743 0.58%
1. Short -term prepaid 0.11% 0.06%
expenses 7,056,379,050 3,683,604,804 22,914,346,625 0.48%
2. Deducted VAT 64,215,888,887 1.05% 6,768,410,773 0.11% 5,034,582,393 0.10%
3. Taxes and payable to 0.03% 0.00%
State Budget 1,757,271,506 36,758,356 146,829,725 0.00%
B. Non-current assets 2,846,114,704,748 46.36% 3,321,952,024,848 55.82% 3,081,629,225,739 63.93%
I. Non-current 0.00% 0.72%
receivables 0 43,010,770,426 41,215,550,361 0.86%
5. Required long -term 0.00% 0.72%
loan 0 43,010,770,426 41,215,550,361 0.86%
II. Fixed assets 2,421,597,297,586 39.45% 2,427,619,918,196 40.80% 2,241,110,909,857 46.49%
1. Tangible fixed assets 2,419,691,445,338 39.42% 2,426,749,231,160 40.78% 2,239,877,971,642 46.47%
- Original price 3,313,223,239,897 53.97% 3,197,652,611,847 53.74% 2,899,018,645,725 60.14%
- Accumulated -14.56% -12.95%
depreciation (893,531,794,559) (770,903,380,687) (659,140,674,083) -13.67%
3. Invisible fixed assets 1,905,852,248 0.03% 870,687,036 0.01% 1,232,938,215 0.03%
- Original price 3,632,393,690 0.06% 2,268,897,690 0.04% 2,268,897,690 0.05%
- Accumulated -0.03% -0.02%
depreciation (1,726,541,442) (1,398,210,654) (1,035,959,475) -0.02%
IV. Non-current 5.16% 12.36%
unfinished assets 316,958,715,131 735,698,478,216 727,296,687,339 15.09%
1. Long -term production 0.00% 0.00%
and business expenses 0 0 0 0.00%
2. Unfinished 5.16% 12.36%
construction costs 316,958,715,131 735,698,478,216 727,296,687,339 15.09%
V. Long -term financial 0.05% 0.06%
investment 3,059,000,000 3,359,000,000 10,359,000,000 0.21%
3. Investing capital 0.01% 0.01%
contribution to other units 759,000,000 759,000,000 759,000,000 0.02%
5. Investment holds up to 0.04% 0.04%
maturity date 2,300,000,000 2,600,000,000 9,600,000,000 0.20%
VI. Other non-current 1.70% 1.89%
assets 104,499,692,031 112,263,858,010 61,647,078,182 1.28%
1. Long -term prepaid 62,225,047,866 1.01% 72,324,093,933 1.22% 22,641,963,897 0.47%
expenses
2. Deferred income tax 0.69% 0.67%
assets 42,274,644,165 39,939,764,077 39,005,114,285 0.81%
Account receivable
Total Assests 6,138,985,381,151 100.00% 5,950,725,075,703 100.00% 4,820,437,427,949 100.00%
C. Total liabilities 3,932,174,610,604 64.05% 4,168,880,183,689 70.06% 3,414,103,952,565 70.83%
I. Short -term debt 2,218,915,595,502 36.14% 2,432,374,845,116 40.88% 1,862,846,381,132 38.64%
1. Pay short -term sellers 357,809,053,674 5.83% 365,659,882,813 6.14% 234,942,410,319 4.87%
2. The buyer pays the
short term 665,335,695,657 10.84% 814,009,091,215 13.68% 572,219,133,597 11.87%
3. Taxes and the State
payable 45,462,421,465 0.74% 41,555,511,600 0.70% 63,286,495,327 1.31%
4. Paying workers 41,461,524,638 0.68% 34,063,432,686 0.57% 24,867,593,842 0.52%
5. Short -term payable
expenses 42,947,061,176 0.70% 98,407,479,494 1.65% 37,671,724,752 0.78%
9. Other short -term
payable 43,724,940,242 0.71% 36,486,052,511 0.61% 22,351,870,905 0.46%
10. Loan and short -term
financial debt 999,924,715,248 16.29% 1,017,378,403,035 17.10% 870,233,166,065 18.05%
12. Welfare reward fund 22,250,183,402 0.36% 24,814,991,762 0.42% 25,661,440,020 0.53%
II. Long-term liabilities 1,713,259,015,102 27.91% 1,736,505,338,573 29.18% 1,551,257,571,433 32.18%
3. Long -term payable
expenses 51,056,828,747 0.83% 46,489,027,371 0.78% 17,625,359,420 0.37%
8. Loan and long -term
financial debt 1,661,518,096,614 27.07% 1,689,332,221,461 28.39% 1,532,948,122,272 31.80%
12. Benefit to pay long
-term 684,089,741 0.01% 684,089,741 0.01% 684,089,741 0.01%
D. Owner's equity 2,206,810,770,547 35.95% 1,781,844,892,014 29.94% 1,406,333,475,384 29.17%
I. Owner's equity 2,206,810,770,547 35.95% 1,781,844,892,014 29.94% 1,406,333,475,384 29.17%
1. Contribution of the
owner 629,995,540,000 10.26% 629,995,540,000 10.59% 449,998,100,000 9.34%
- Common stocks 629,995,540,000 10.26% 629,995,540,000 10.59% 449,998,100,000 9.34%
2. Additional paid-in
capital (19,423,475,878) -0.32% (19,423,475,878) -0.33% 49,341,290,000 1.02%
8. Development
Investment Fund 46,985,564,994 0.77% 46,985,564,994 0.79% 46,985,564,994 0.97%
10. Other funds of equity 0 0.00% 500,000,000 0.01% 500,000,000 0.01%
11. Unprocessed after
-tax profit after tax 1,015,425,738,156 16.54% 699,360,325,854 11.75% 494,301,110,720 10.25%
- Unrelated labour force 632,170,554,955 10.30% 699,360,325,854 11.75% 494,301,110,720 10.25%
until the end of the
previous period
- Unreasonable LNST 383,255,183,201 6.24% 0 0.00% 0 0.00%
13. Benefits of non
-control shareholders 533,827,403,275 8.70% 424,426,937,044 7.13% 401,994,244,695 8.34%
TOTAL LIABILITY
AND OWNER'S
EQUITY 6,138,985,381,151 100.00% 5,950,725,075,703 100.00% 4,820,437,427,949 100.00%

Assets:
- Cash and equivalents: The cash and equivalents have shown substantial growth,
especially in 2022. The company holds a significant amount of cash, which may be
used for investment or future operations.
- Account receivable: Account receivables have been increasing year-over-year, which
may indicate that the company is extending more credit to its customers. While this
can drive sales, it also carries the risk of delayed payments.
- Inventories: Inventory has also increased over the years, indicating a potential
expansion in production or sales. Companies should be cautious about holding too
much inventory, as it ties up capital.
- Other current assets: Other current assets increased over the years, reflecting
increased prepaid expenses and other receivables.
- Total current assets: Total current assets have been growing, which is a positive sign
as it suggests that the company's short-term liquidity position is strengthening.
- Plant and equipment(net): Plant and equipment (net) appear to be stable over the
years. This might suggest that the company has not significantly expanded its physical
assets during this period.
- Goodwill and other assets: Account payable and accruals have been increasing,
indicating higher short-term obligations. This could be due to increased purchases,
expenses, or other liabilities.
- Total assets: The total assets have been steadily increasing over the years, from 4,820
billion in 2020 to 5,950 billion in 2021 and 6,139 billion in 2022. This indicates a
positive growth trend in the company's asset base.

Liabilities and stockholder's equity:

- Total current liabilities: Total current liabilities have been increasing, possibly due to
higher accounts payable and accruals. This trend should be monitored as it affects the
company's short-term financial health.
- Long-term debt: Long-term debt has been increasing, indicating that the company has
taken on more long-term financial obligations. This is common when a company
seeks to finance expansion or other long-term investments.
- Total liabilities: Total liabilities have decreased from 2021 to 2022. This suggests that
the company has been managing its debts effectively.
- Common stock:Common stock appears to be relatively stable, suggesting no
 significant changes in the number of outstanding shares.
- Additional paid-in capital: There is a decrease in additional paid-in capital in the
second year, which is unusual and might warrant further investigation.
- Retained earnings: Retained earnings have been growing consistently. This reflects
the company's accumulated profits over time.
- Total stockholder's equity: Total stockholder's equity is increasing, indicating that the
company is building value and maintaining a healthy financial position.
- Total liabilities and equity: This figure is growing over the years, reflecting both
increased liabilities and equity. The company's overall financial position seems to be
improving.

In summary, the company's financial health seems stable with growing equity. However,
the increase in short-term and long-term liabilities, along with a decrease in additional paid-in
capital, should be analyzed further to understand the reasons behind these trends and assess
the company's ability to manage its financial obligations. Additionally, more data on
Goodwill and Other Assets is needed for a complete evaluation
Income statement

2022 2021 2020

1. Total revenue 3,319,477,249,236 100.00% 2,545,455,736,494 100.00% 2,118,335,540,207 100.00%

3. Net sales 3,319,477,249,236 100.00% 2,545,455,736,494 100.00% 2,118,335,540,207 100.00%

4. Cost of goods sold 2,398,467,125,688 72.25% 1,670,366,356,209 65.62% 1,524,079,432,151 71.95%

5. Gross profit 921,010,123,548 27.75% 875,089,380,285 34.38% 594,256,108,056 28.05%

6. Financial activities 36,146,069,592 1.09% 23,969,227,390 0.94% 19,657,415,413 0.93%

7. Financial expenses 181,741,813,596 5.48% 166,595,804,142 6.54% 193,094,609,642 9.12%

9. Selling expenses 99,951,682,011 3.01% 166,689,469,264 6.55% 72,074,897,906 3.40%

10. Administrative expense 90,496,134,744 2.73% 61,926,549,088 2.43% 61,283,495,658 2.89%

11. Net profit from

business activities 584,966,562,789 17.62% 503,846,785,181 19.79% 287,460,520,263 13.57%

14. Other profits (863,538,315) -0.03% 15,302,449,552 0.60% 3,853,800,586 0.18%

15. Earnings before

interest and taxes(EBIT) 584,103,024,474 17.60% 519,149,234,733 20.40% 291,314,320,849 13.75%

16. Current CIT cost 67,125,174,282 2.02% 70,957,267,857 2.79% 48,939,214,061 2.31%

18. Business income after

tax profit 519,312,730,280 15.64% 449,126,616,668 17.64% 235,945,908,141 11.14%

19. Profit after tax of the

parent company 383,255,183,201 11.55% 341,949,594,498 13.43% 195,009,961,347 9.21%
21. Basic interest on stocks 6,047 0.00% 5,438 0.00% 4,358 0.00%

22. Interest interest on

stocks 6,047 0.00% 5,438 0.00% 4,358 0.00%

- Net Sales: Net sales have grown significantly over the three-year period, increasing
by 56.9% from 2020 to 2022. This substantial growth can be attributed to increased
sales volume or higher selling prices.
- Cost of Goods Sold (COGS): The cost of goods sold has also increased but at a slower
rate compared to net sales. It grew by 47.7% from 2020 to 2022. This suggests that
the company has been able to manage its production costs effectively, resulting in a
better gross profit margin.
- Selling and Administrative Expenses: Selling and administrative expenses have seen
significant growth, rising by 49.8% from 2020 to 2022. This could be due to increased
marketing and administrative activities to support the company's growth.
- Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA): EBITDA
increased by 50.5% from 2020 to 2022. This indicates that the company's operational
profitability has improved over the years.
- Depreciation: Depreciation increased by 52.3% over the same period. This could be
attributed to the company's investment in fixed assets, such as machinery and
equipment.
- Earnings before Interest and Taxes (EBIT): EBIT showed significant growth,
increasing by 76.6% from 2020 to 2022. This is a positive sign, as it reflects the
company's ability to generate higher profits before considering interest and taxes.
- Taxes: Tax expenses increased by 57.6% from 2020 to 2022. This is in line with the
growth in EBIT and is a reflection of the company's tax obligations.
- Net Income: Net income also saw substantial growth, increasing by 74.9% over the
three-year period. This indicates that the company has been successful in translating
its operational profits into bottom-line earnings.
In conclusion, the company has shown strong financial performance over the years, with
significant growth in net sales, profitability, and EBITDA. The ability to effectively manage
costs and increase operational profitability is a positive sign. However, the company should
consider its dividend policy and potential reinvestment to support its continued growth.

Statistics of peer companies of Dat Phuong Group in 2022

Total revenue Net Income
Code Total Equity 2021 2022 2021 2022
VHM 188,544 84,986 62,392 38,948 29,001
VRE 64,534 5,891 7,309 1,315 2,736
NVL 22,719 14,903 11,135 3,455 2,293
 KDH 19,928 3,738 2,912 1,205 1,081
NLG 10,985 5,206 4,339 1,478 866
HDG 7,497 3,777 3,642 1,344 1,378
PDR 7,355 3,620 1,505 1,861 1,170
DXG 6,802 10,089 5,581 1,595 469
AGG 3,603 1,808 6,189 421 97
HDC 3,237 1,352 1,298 311 421
KHG 2,292 1,288 1,396 414 442

b. Ratios analysis

2022 2021 2020

Liquidity Ratios:
Current ratio 1.48 1.08 0.93
Quick ratio 0.99 0.85 0.70
Efficiency Ratios:
Inventory turnover 2.20 3.00 3.51
Day's sales in inventory 166.25 121.76 103.99
Accounts receivable turnover 4.42 3.77 3.47
Days' sales outstanding 82.61 96.81 105.25
Total asset turnover 0.54 0.43 0.44
Fixed asset turnover 1.37 1.05 0.95
Leverage Ratios:
Total debt ratio 0.63 0.70 0.71
Debt-to-equity ratio 1.76 2.31 2.41
Equity multiplier 2.78 3.30 3.41
Times interest earned 4.23 4.13 2.51
Cash coverage 5.29 5.41 3.19
Profitability Ratios:
Gross profit margin (%) 27.75 34.38 28.05
Operating profit margin (%) 17.00 26.92 22.84
Net profit margin (%) 11.55 13.43 9.21
Return on assets (%) 6.24 5.75 4.05
Return on equity (%) 17.37 19.19 13.87
Market-Value Indicators:
Price-to-earnings ratio (thousand VND) 8.34 13.79 7.3
Earnings per share (thousand VND) 4.27 5.44 4.39
Market-to-book ratio (thousand VND) 0.42 0.23 0.27

Statistics of peer companies in Real Estate Industry in 2022

ROA Total Asset Turnover

Code 2021 2022 2021 2022 P/E P/B
VHM 0.21 0.34 0.45 0.73 6.60 1.30
VRE 0.02 0.46 0.09 1.24 23.60 1.93
NVL 0.15 0.15 0.66 0.75 10.00 0.61
KDH 0.06 0.29 0.19 0.78 18.00 1.72
NLG 0.13 0.17 0.47 0.83 19.70 1.22
HDG 0.18 0.36 0.50 0.96 6.70 1.35
PDR 0.25 0.32 0.49 0.42 6.40 0.90
DXG 0.23 0.05 1.48 0.55 45.40 0.74
AGG 0.12 0.05 0.50 3.42 185.00 1.53
HDC 0.10 0.31 0.42 0.96 7.70 1.76
KHG 0.18 0.34 0.56 1.08 5.10 0.45

Liquidity Ratios:

Current Ratio improved from 0.93 in 2020 to 1.08 in 2021 and further to 1.48 in 2022. This
indicates that the company's short-term liquidity and ability to cover its current liabilities has
significantly strengthened over the years. Similar to the current ratio, the quick ratio has also
improved, indicating better short-term financial health.

Efficiency Ratios:

● Inventory turnover has decreased from 3.51 in 2020 to 3.00 in 2021 and further to
2.20 in 2022. This may indicate that the company is holding inventory for a longer
time, which could lead to increased carrying costs.
● This ratio has steadily improved over the years, indicating that the company is
collecting accounts receivable more efficiently.
● The company's efficiency in using its assets to generate revenue has improved, with a
higher total asset turnover in 2022 compared to 2020 and 2021.
● Similar to the total asset turnover, the efficiency of using fixed assets to generate
revenue has also improved.

Leverage Ratios:
 ● The company has managed to reduce its total debt ratio over the years, indicating a
decreasing reliance on debt to finance its operations.
● The debt-to-equity ratio has also decreased, which is a positive sign, as it indicates
lower financial leverage and less financial risk.
● The equity multiplier has decreased over the years, which indicates that equity is
playing a larger role in financing the company's assets.
● The company's ability to cover interest expenses has improved, with a higher times
interest earned ratio in 2022.
● The company's ability to cover its interest expenses with cash has improved over the
years.

Profitability Ratios:

● The gross profit margin decreased from 2021 but increased from 2020, indicating a
fluctuating trend.
● While there was a decrease from 2021, the operating profit margin in 2022 is still
higher than in 2020.
● The net profit margin increased from 2020 to 2021, and then decreased in 2022.
● The return on assets improved steadily over the years, indicating more effective use of
assets to generate profit.
● The return on equity has shown a similar trend to ROA, increasing over the years,
which suggests that the company is generating a higher return for its shareholders.

Market-Value Indicators:

● A lower P/E ratio in 2022 suggests that the company's stock may be relatively
undervalued compared to previous years.
● Earnings per share decreased from 2021 but increased from 2020.
● The market-to-book ratio increased from 2020, indicating that investors may be
willing to pay a higher premium for the company's assets.

Compare to peer companies:

● When comparing DPG with its peers, it's clear that DPG generally improved its
liquidity and leverage ratios, reduced its reliance on debt, and achieved higher total
asset turnover. This indicates a healthier financial position.
● In terms of profitability, DPG experienced some fluctuations in gross profit margin,
but its net profit margin increased, indicating efficient management of costs and an
improved ROA and ROE.
● Regarding efficiency ratios, DPG's inventory turnover decreased, which might be an
area for improvement, and its quick ratio improved.
● DPG's market-value indicators, particularly the lower P/E ratio, suggest that its stock
may be relatively undervalued compared to some of its peers.

In summary, the company has improved its liquidity, efficiency, and profitability over the
years. The reduction in debt and improved coverage ratios demonstrate a healthier financial
position. However, the company's profitability and market value indicators have fluctuated.
These statistics provide valuable insights into the company's financial performance and can
be used to make informed decisions and identify areas for improvement.
c. Dupont analysis.
1. Year 2020
Dupont analysis = Net profit margin x Asset turnover x Equity multiplier
= 9.21% x 0.44 x 3.41
= 0.1382
⇒ ROE = 0.1382 x 100 = 13.8%

2. Year 2021
Dupont analysis = Net profit margin x Asset turnover x Equity multiplier
= 13.43% x 0.43 x 3.3
= 0.1906
⇒ ROE = 0.1906 x 100 = 19.06%

3. Year 2022
Dupont analysis = Net profit margin x Asset turnover x Equity multiplier
= 11.55% x 0.54 x 2.78
= 0.1734
⇒ ROE = 0.1734 x 100 = 17.34%

Trend Analysis:
​ The ROE increased from 13.8% in 2020 to 19.06% in 2021, representing a significant
improvement in profitability and efficiency.
​ In 2022, the ROE decreased to 17.34%, which is slightly lower than the 2021 figure
but still higher than the 2020 value.
​
Factors that Drive ROE:

The DuPont analysis breaks down ROE into three components: Net Profit Margin, Asset
Turnover, and Equity Multiplier. Understanding these components can help identify the main
factors driving ROE for the company over the years:

​ Net Profit Margin: This represents the company's profitability. An increase in net
profit margin indicates improved profitability. In 2021, the higher net profit margin
contributed to the significant increase in ROE.
​
​ Asset Turnover: This measures the company's efficiency in utilizing its assets to
generate revenue. A higher asset turnover means the company is generating more
revenue with the same level of assets.
​
​ Equity Multiplier: This represents the financial leverage used by the company. A
higher equity multiplier means the company is using more debt to finance its
operations. Changes in this multiplier can impact ROE.
​
In summary, the improvement in ROE from 2020 to 2021 was primarily due to increased
profitability and asset turnover. The decrease in ROE in 2022 was likely influenced by a
slightly lower net profit margin and equity multiplier.

d. Comment on the Statement of Cash flows.

STATEMENT OF CASH FLOW

 2020 2021 2022
1. Cash flow from operating activities
Total accounting profit before tax 291,314,320,849 519,149,234,733 584,103,024,474
Depreciation of fixed assets and investment real estate 136,811,226,553 133,513,657,233 134,861,155,317
Reserves 520,167,185 (11,612,546,305) -
Gains and losses from exchange rate differences due to
revaluation of monetary items originating in foreign
currencies - (51,971,957) 151,161,739
Interest from investing activities (19,678,958,216) (23,538,556,626) (36,910,313,806)
Interest expenses 192,559,677,468 166,070,016,642 181,070,575,358
Other adjustments - - -
Profit from operating activities before changes in
working capital 601,526,433,839 783,529,833,720 863,275,603,082
Increase or decrease accounts receivable 133,512,837,238 (91,159,427,667) (137,624,602,453)
Increase or decrease inventory 325,779,025,034 (122,976,437,404) (535,146,051,937)
Increase or decrease accounts payable (676,578,224,970) 474,490,845,510 365,932,097,932
Increase or decrease prepaid costs 6,713,156,505 (30,451,388,215) 6,726,271,821
Increase and decrease in trading securities - - -
Interest paid (198,327,180,458) (162,849,283,932) (180,677,363,689)
Corporate income tax paid (53,915,893,494) (112,349,142,018) (41,577,817,815)
Amount receiving from operating activities - - -
Other expenses for operating activities (15,510,480,998) (4,807,752,999) (8,374,906,107)
Net cash flow from operating activities 123,199,672,696 733,427,246,995 332,533,230,834

2. Cash flow from investing activities

Money spent on purchasing and constructing fixed assets
and other long-term assets (46,000,922,013) (307,514,064,533) (241,930,598,199)
Proceeds from liquidation and sale of fixed assets and
other assets 277,909,091 11,658,769,999 4,253,871,177
Money spent on lending and purchasing debt
instruments of other units (5,300,000,000) (587,620,619,100) (170,000,000,000)
Proceeds from loan recovery and resale of debt
instruments of other units 3,680,000,000 229,000,000,000 298,022,328,767
Money spent investing capital in other units - - (4,107,462,648)
Proceeds recovered from investment in capital
contributions to other units - - -
Loan interest income, dividends and profits are
distributed 27,776,652,517 38,741,427,670 32,944,090,708
Net cash flow from investing activities (19,566,360,405) (615,734,485,964) (80,817,770,195)
3. Cash flow from financing l activities
Proceeds from issuing shares and receiving capital
contributions from owners 28,000,000,000 54,518,914,703 18,000,000,000
Money to return contributed capital to owners, buy back
issued shares of the enterprise (36,786,835,025) (60,800,000,000) -
Proceeds from borrowing 1,312,991,757,116 1,713,990,944,292 1,485,043,062,238
Loan principal repayment (1,375,522,687,221) (1,411,216,230,470) (1,544,568,405,051)
Financial lease principal repayment - - -
Dividends and profits paid to owners (43,499,810,000) (59,698,210,000) (85,047,154,000)
Net cash flow used in financing activities (114,817,575,130) 236,795,418,525 (126,572,496,813)

Flow and cash and net cash equivalents at the

beginning of the year (11,184,262,839) 354,488,179,556 125,142,963,826
Cash and cash equivalents at the beginning of the
year 702,832,196,926 691,647,934,087 1,046,136,113,643
Effects of exchange rate changes - -
Cash and cash equivalents at the end of the year 691,647,934,087 1,046,136,113,643 1,171,279,077,469

1. Net Cash Flow from Operating Activities

a. Year 2020:
- Total accounting profit before tax was recorded at 291 billion VND. Besides, the
adjustment of depreciation costs for fixed assets has reached 136 billion VND. In
which, interest expense was also recorded as 192 billion VND.
- The notable things that we need to consider in DPG's cash flow statement in 2020 is
the adjustment for profits from business activities before changes in working capital.
In it, we can see the factors that most positively and negatively affect cash flow in
2020.
- In 2020, DPG recorded a positive adjusted cash flow for receivables. This means that
the company has recovered its debts relatively well at VND 133 billion. Besides, the
company has also created a positive cash flow for its business activities of up to 325
billion VND from selling its inventory.
- Regarding factors that negatively affect DPG's cash flow, DPG has set aside a huge
amount of VND 676 billion to pay for its debts. This is actually a relatively positive
factor for DPG's finances. Paying off debt will help the company reduce financial
pressure and risks in meeting short-term debt obligations.
- In addition, paid corporate income tax also creates a cash flow that negatively affects
DPG's cash flow when DPG has paid 198 billion VND in taxes in 2020.
- Thus, DPG's net cash flow from business activities was recorded at a positive level of
123,199,672,696 VND.
B. Year 2021
- Compared to the year 2020, DPG made a total accounting profit before tax much
higher, up to 519 billion VND. Accounts of Interest expense was recorded at 166
billion VND
- In 2021, the company's account receivables increased to 91 billion VND, leading to
adjusted cash flow of negative 91 billion VND. Besides, the company bought more
inventory so the cash flow was recorded at a negative level of 122 billion VND.
 - Another change compared to 2020 is that in 2021 the company has increased its debt
borrowings up to 474 billion VND. Loan interest paid and corporate income tax paid
by DPG this year brought negative cash flows for these two items of -162 billion
VND and -112 billion VND, respectively.
- Summing up, in 2021, with the increase in total accounting profit before tax and the
use of additional debt, DPG recorded a much larger cash flow compared to 2020, up
to 733,427,246,995 VND.
C. Year 2022
- In 2022, DPG has created a total pre-tax accounting profit that continues to grow at
584 billion VND. In which, interest expense was also recorded as 181 billion VND
- In 2022, DPG has created many notable points as follows. First, DPG's receivables
continue to increase and show no tendency to cool down, showing that customer debts
and receivables continue to increase.
- In addition, the company continues to hold more inventory as inventory increases,
leading to negative cash flow at VND 535 billion. In 2022, the company will continue
to use short-term debt but it has decreased compared to 2021 when it was only
recorded at 365 billion VND.
- Thus, total net cash flow from business activities is 332,533,230,834 VND.

Over the past 3 years, DPG's net cash flow from operating activities has fluctuated quite
strongly. Of which, 2021 was the highest recorded. The factors that have the biggest impact
on cash flow from DPG's business activities are pre-tax profits, adjustments to receivables,
inventory and payables.
2. Net Cash Flow from Investing Activities
a. Year 2020:
- In 2020, there are only two amounts of money that have the biggest impact on cash
flow from DPG's investment activities. First is money spent on purchasing and
constructing fixed assets and other assets. DPG only spent an additional 46 billion
VND to buy long-term and fixed assets. In addition, the loan interest income,
dividends and distributed profits bring a positive cash flow that positively affects the
company's investment activities of VND 27 billion.
- Thus, net cash flow from investment activities of DPG was recorded as
-19,566,360,405 VND.
b . Year 2021
- In 2021, cash flow from DPG's investment activities has changed extremely strongly.
First, the company spent more money to purchase and construct fixed assets, up to
307 billion VND, much more than in 2020 when it only recorded 46 billion VND.
- In addition, the change in loan payments and purchases of debt instruments of other
units is also larger, reaching 587 billion VND, bringing negative cash flow for
investment activities. The amount of loan recovery and resale of other units' loan tools
recovered by DPG also increased significantly to VND 229 billion.
- Thus, net cash flow from investing activities is -615,734,485,964 VND.
c. Year 2022
- In 2022, DPG has reduced spending to purchase and construct fixed assets compared
to 2021 when it was only 241 billion VND. Besides, DPG has also reduced the
amount of money spent on lending and buying debt instruments of other units
compared to 2020, so it was only 170 billion VND.
- Thus, net cash flow from investing activities is -80,817,770,195 in 2022.
Likewise, similar to net cash flow from operating activities, DPF’s net cash flow from
investing activities has fluctuated strongly. Of which, 2021 was the highest recorded. By
investing significant amounts of money on fixed assets, other long term assets and purchasing
debt instruments of other units by its own money from operating activities, This shows that
DPG has more and more potential to develop in the future.

3. Net Cash Flow from Financing Activities

a. Year 2020:
- Cash flow from DPG's financial activities is mainly affected by two main factors:
cash flow from borrowing and loan principal repayment. In 2020, the company earned
a total of VND 1,312 billion from borrowing.
- Finally, the company also spent a large amount of VND 1,375 billion to repay the
principal of its loan. Besides, DPG also paid dividends and profits to the owners of 43
billion VND.
- Thus, the net cash flow from DPG's financial activities in 2020 is -114,817,575,130
VND.
b.Year 2021:
- Similar to 2020, cash flow from DPG's financial activities is mainly affected by two
main factors: cash flow from borrowing and loan principal repayment. In 2021, the
company earned a total of 1,713 billion VND from borrowing, which is higher than
1,312 billion VND in 2020.
- The company also spent a large amount of VND 1,411 billion to repay the principal of
its loan. Besides, DPG also paid dividends and profits to owners of 59 billion VND,
larger than the amount of 43 billion VND in 2020.
- Thus, net cash flow from DPG's financial activities in 2021 is 236,795,418,525 VND.
c.Year 2022:
- Similar to 2021, cash flow from DPG's financial activities is still mainly affected by
two main factors: cash flow from borrowing and loan principal repayment. In 2022,
the company earned a total of VND 1,485 billion from borrowing.
- The company also spent a large amount of VND 1,544 billion to repay the principal of
its loan. Besides, DPG also paid dividends and profits to owners of 85 billion VND,
larger than the amount of 59 billion VND in 2021.
- Thus, net cash flow from DPG's financial activities in 2022 is -126,572,496,813 VND
4.Cash and cash equivalents at the end of the year.
- Cash and cash equivalents at the end of 2020: 691,647,934,087 VND.
- Cash and cash equivalents at the end of 2021: 1,046,136,113,643 VND.
- Cash and cash equivalents at the end of 2022: 1,171,279,077,469 VND.
DPG's cash and cash equivalents ratio increased sharply from 2020 to 2021 then increased
slightly in 2022.

Evaluate Financial Health of DPG

- The fluctuation of cash flow in an upward direction and no negative cash flow from
business activities in the 3 years 2020 - 2022 shows that the operating productivity of
the entire company is effective, showing that the DPG company is well-operated.
good practice.
- Recording profits from business activities for 3 years and continuously reinvesting
shows that DPG always focuses on the long-term development of its own company.
Has strong development potential in the future
- Regarding the change in cash and cash equivalents at the end of the year, only an
insignificant decrease in cash and cash equivalents at the end of 2020 was recorded,
 followed by a significant increase in 2021 and a slight increase in 2022. This shows It
is seen that the company always ensures cash and cash equivalents at the beginning of
the year to maintain stable operations throughout that year. Ensure the company's
operations run smoothly to achieve profit goals

Overall, the DPG company appears to be financially healthy, as it exhibits effective operating
productivity, a commitment to long-term growth, and a prudent approach to managing its
cash flow. These are all positive indicators of a well-operated and financially stable company.

III. Conclusion
1. Summary

Based on the analysis of Dat Phuong Group's financial reports from 2020 to 2022, several
positive aspects can be observed in the company's asset management. These factors
contribute to the company's robust financial capabilities. Notably, there is a consistent and
stable growth in total assets over this period, and a significant portion of these assets are
allocated to short-term holdings, indicating a preference for highly liquid financial
instruments. The expansion of fixed assets within the company follows a structured
manufacturing-oriented business model, bolstering the organization's financial stability and
underpinning its strong financial foundation.

2. Perspectives on the future

Dat Phuong Group exhibits significant development potential, underpinned by several

advantageous factors. The company boasts transparent and abundant resources with a robust
growth trajectory. Moreover, its longstanding business operations spanning over two decades
have earned it a strong foothold in the market, characterized by loyalty and prestige. The
guided production expansion strategy further augments the firm's fixed asset base.

However, to ensure sustainable growth and secure future profitability, Dat Phuong Group
must adopt a long-term strategy for effective capital utilization. This involves striking a
balance between equity and debt capital to mitigate risks inherent in financing. Efficient
management of fixed assets is crucial for profitability, necessitating optimization of
production and business processes, increased asset utilization, and investments in modern,
high-efficiency assets.

Moreover, the company should prioritize innovation, continuously striving to create new
products and services that align with market demands. This can be achieved through
investments in research and development while fostering an environment that fosters
innovation. Expanding into potential markets and fortifying the brand and reputation on the
international stage are also integral to future success.

Looking ahead, Dat Phuong Group is poised for growth in its core sectors, including
construction, real estate, and energy. The potential to expand into foreign markets offers
promising opportunities to strengthen the company's standing in the industry. The financial
indicators suggest positive trends in liquidity and debt management, though a keen focus on
reducing inventory ratios and enhancing inventory management is crucial to prevent
unnecessary asset losses. Maintaining or enhancing profitability is essential to ensure
long-term sustainability and attract further investments.

In summary, Dat Phuong Group's growth prospects are considerable, provided it diligently
adheres to prudent financial practices, asset management, innovation, and international
expansion strategies. This comprehensive approach will position the company favorably for
long-term success in its chosen fields of operation.