TABLE OF CONTENT

TABLE OF CONTENT
PREAMBLE……………………………….……………………………………………..1
1. Urgency of the topic…………………………………………………………………….1
2. Research objectives…………………………………………………………..…………1
3. Research object……………………………………………………………………..…..1
4. Research Methodology…………………………………………………………………1
5. Structure of the topic……………………………………………………………………1
CONTENT ……………………………………………………………………………….3
I. Theoretical basis for assets and effective use of assets of the enterprise…………...3
1.Asset……………………………………………………………………………………..3
2. The effectiveness of asset utilization of business………………………………………3
II. Current status of asset use of Song Da 11 Joint Stock Company (SJE)..................5
1. Company overview……………………………………………………………………..5
2. Current status of asset use of Song Da 11 Joint Stock Company (SJE) for 4 years
2020-2023…………………………………………………………………………………5
3. Compare the efficiency of asset use of Song Da 11 Joint Stock Company (SJE) with
Construction Investment Joint Stock Company No. 5…………………………………….8
III. Solutions to improve asset utilization efficiency for businesses…………………12
CONCLUSION…………………………………………………………………..……..13
REFERENCE………………………………………………….………………………..14
 PREAMBLE
1. Urgency of the topic
In the current process of industrialization, modernization of the country, and strong
international integration, strengthening management and improving the efficiency of
assets will be the premise and basis for improving competitiveness and gaining business
advantages for businesses. Therefore, each company tries to use its assets in the most
reasonable way to have wise business strategies. From this reality, let's research the topic:
"Analyze the asset utilization efficiency of Song Da No11 Joint Stock Company (SJE)
using the firm's financial statements" to better understand how a business manages and
uses its assets.
2. Research objectives
Focus on researching the efficiency of asset use at Song Da No11 Joint Stock
Company (SJE) to have a comprehensive, in-depth look at the issue of asset use at the
enterprise. From there, find out the remaining limitations in the business and production
activities of this company and come up with appropriate solutions and management
decisions to address the weaknesses and promote the company's strengths.
3. Research object
The research mainly revolves around the issue of asset utilization and asset
utilization efficiency of enterprises in general and of Song Da No11 Joint Stock Company
(SJE) in particular.
4. Research Methodology
As mentioned above, using assets and evaluating the effective use of assets is a
very important topic in business management. Therefore, to clarify the issues mentioned
above, the study uses a combination of different research methods, which can be
mentioned here as synthesis and analysis methods, statistical methods, and statistical
methods. The comparative method combines theoretical research with practice.
5. Structure of the topic
In addition to the introduction, conclusion, and references, the research article also
includes content and is divided into 3 parts:

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I. Theoretical basis for assets and effective use of assets of the enterprise
II. Current status of asset use of Song Da 11 Joint Stock Company (SJE)
III. Solutions to improve asset utilization efficiency for businesses.

During the research process, many errors may occur, so I hope to receive many
comments from teachers on the content of the research paper.
Thank you very much!

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 CONTENT

I. Theoretical basis for assets and effective use of assets of the enterprise
1.Asset
1.1 Definition
Assets are the resources of business enterprises, they are divided into cash & cash
equivalents, account receivables, inventories, plants and equipment, that are used to
generate future benefits.
1.2. Categories
1.2.1. Short-term assets:
Short – term assets are assets that could reasonably be converted into cash within
one operating cycle or one year. They consist of cash, marketable securities, account
receivables, and inventories.
1.2.2. Long-term assets
Long-term assets are assets that are not short-term assets; it is not expected that
long-term assets can be converted into money within an operating cycle.
2. The effectiveness of asset utilization of business
2.1. Definition
The effectiveness of asset utilization in a business refers to its ability to efficiently
utilize and make effective use of the company's assets to achieve good business results. It
involves the utilization of both tangible and intangible assets, such as fixed assets (e.g.,
machinery, equipment), working capital (e.g., inventory, cash), human resources, and
other resources.
2.2. Some important KPIs for evaluating asset utilization effectiveness
2.2.1. Asset turnover ratio measures the efficiency of a company in generating revenue
from its total assets.
Total Asset Turnover = Net Sales / Average Total Assets
2.2.2. Return on assets (ROA): measures the profitability of a company relative to its
total assets.

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 ROA = Net Income / Average Total Assets
2.2.3. Return on Investment (ROI): measures the return generated from an investment
relative to its cost. It evaluates the efficiency of asset utilization by comparing the returns
to the investment made in acquiring or maintaining the assets.
ROI = (Net profit/Initial Investment) * 100
2.2.4. Fixed asset turnover ratio: assesses the efficiency of a company in generating
revenue from its fixed assets, such as property, plant, and equipment.
Fixed Asset Turnover Ratio = Net Sales / Average Fixed Assets
2.2.5. Inventory turnover ratio: evaluates how efficiently a company manages its
inventory.
Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory
2.2.6. Accounts receivable turnover ratio: measures how efficiently a company collects
payments from its customers.
Accounts Receivable Turnover Ratio = Net Credit Sales / Average Accounts Receivable
2.2.7. Working capital turnover ratio: evaluates how well a company utilizes its working
capital to generate sales.
Working Capital Turnover Ratio = Net Sales / Average Working Capital
2.3 Factors affecting asset utilization efficiency
There are many factors affecting asset utilization efficiency, including asset
management, production and operations planning, workforce and training, technology
and infrastructure, processes and management systems, business environment and
company strategy, and regulatory and compliance requirements.

II. Current status of asset use of Song Da 11 Joint Stock Company (SJE)
1. Company overview.
1.1. The process of formation and development
Formerly known as the Electricity and Water Team under Thac Ba Hydroelectric
Plant, it was born after the establishment of Thac Ba Hydroelectric Plant (June 1, 1961).
However, through many upgrades and name changes along with tireless efforts, the

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Company has strengthened its position and built a force to enter a new phase. The
company was renamed Energy Construction Company and is now Song Da 11 Joint
Stock Company.
1.2. Business areas
Song Da No 11 JSC provides construction services for hydroelectric power,
irrigation, transport, post offices, management, operations, and water distribution works.
It also produces and trades metal products, and mechanical engineering products. It
provides maintenance and periodic maintenance for power plants, and transformer
stations.
1.3. Financial situation of the company
In recent years, the financial situation of Song Da 11 Joint Stock Company (SD11)
has encountered many difficulties and fluctuations. The company faced many financial
and management problems. In particular, financial costs increased, while revenue from
construction activities and electricity sales decreased. Many debts and unfinished costs in
capital construction projects are also big challenges.
By the end of 2023, Song Da 11's total assets reached 1,917 billion VND, of which
liabilities accounted for 60.8%, equivalent to 1,166.6 billion VND. Most of Song Da 11's
liabilities are loans of nearly 800 billion VND.
2. Current status of asset use of SJE for 4 years 2020-2023.
2.1. Current status of asset use in the 4 years 2020-2023

2020 2021 2022 2023

A. SHORT-TERM ASSETS 674,087 695,183 548,990 622,617

I. Cash and cash equivalents 47397 78786 66364 72741

II. Short-term financial 692 1872 1872 75

investments

III. Short-term receivables 452836 414345 310466 416698

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 IV. Inventories 169902 195546 165319 127997

V. Other short-term assets 3259 4634 4968 5105

B. LONG-TERM ASSETS 1,492,548 1,433,348 1,369,658 1,295,281

I. Long-term receivables 29,133 34,213 47,568 38,076

II. Fixed assets 1,417,793 1,356,756 1,292,443 1,234,449

IV. Long-term assets in 8,872 5,103 1,603 177

progress

V. Long-term financial 1,000 2,205 1,797

investments

VI. Other long-term assets 25,993 27,036 21,731 16,190

VII. Goodwill 9,756 8,035 6,313 4,592

Total asset 2,166,634 2,128,531 1,918,648 1,917,897

In the period from 2020 to 2023, the asset usage situation of Song Da 11 Company
(SJE) has changed significantly. Total assets show a downward trend in the period of
2020-2023.
Short term assets do not fluctuate too much in the period of 2020-2023, accounting
for 31.11% in 2020, 32.66% in 2021, and 32.46% in 2023. Long-term assets decreased
from 2020-2023, accounting for 68.89% in 2020, 67.54% in 2023.
2.2. Evaluating indicators reflecting the efficiency of asset use of Song Da 11 Joint Stock
Company (SJE) for 4 years
ROA: increases over the years; in 2020, it was 0.54%; in 2021, it increased to 2%,
in 2022, it increased to 2.64%; and in 2023, it increased to 4%.
Total asset turnover: no major fluctuations in the period 2020-2023, in 2020 it will

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be 0.31%, in 2021 it increased slightly by 0.33%; in 2022 it increased to 0.45%, in 2023
it decreased to 0.36%.
Fixed asset turnover: increased slightly and decreased in 2023; in 2020, it
accounted for 0.48%, in 2021, it increased by 0.51%; in 2022, it increased to 0.69%, in
2023, it decreased to 0.55%.
Inventory turnover: The inventory turnover ratio fluctuated in 2020-2021,
significantly increased by 1.4 times in the next period, and decreased in 2023.
Receivable turnover: receivable turnover has the same trend as inventory turnover
in the period of 2020-2023.
Overall Assessments: SJE has witnessed a positive trend in asset utilization
efficiency in the period of 2020-2023.

2.3. Assessing the current state of asset utilization efficiency of SJE 2020-2023.
2.3.1. Achievements:
In recent years, the company has continuously won many large bidding packages,
including 3 different bidding packages with a total winning value of nearly 145 billion
VND. These are all electrical construction bidding packages.
In December 2022, SJE was announced by the Northern Power Project
Management Board to win the bid for package No. 35 to build the line section from DD
to VT17 under the 500kV Nam Dinh Thermal Power Transmission Line Project. I

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Factory in Thanh Hoa with a winning bid value of 95.24 billion VND.
2.3.2. Existing limitations and their causes
Some projects faced site clearance issues, and the construction organization of the
units had many limitations, leading to prolonged projects that affected the units' progress
and business efficiency objectives.
The marketing and bidding efforts continued to face many difficulties due to the
scarcity of large-scale projects in the power sector this year. Most projects were
small-scale and low-value, with many bids being submitted online, increasing
competition and resulting in low bid values. Additionally, significant fluctuations in
material prices for many PC tender packages affected the bid prices and the unit's chances
of winning contracts.
Due to the increasingly fierce competition in the bidding for construction projects
and in order to stabilize and develop the company while seeking profits in the coming
years, it is necessary to continue strengthening research and promoting investment in
expanding new business areas to ensure sufficient employment for employees.
3. Compare the efficiency of asset use of SJE with Construction Investment Joint Stock
Company No. 5
3.1 Overview of Construction Investment Joint Stock Company No. 5
3.1.1. Current status of assets

2020 2021 2022 2023

A. SHORT TERM ASSETS 100911 80284 67484 47126

I. Cash and cash equivalents 1379 1567 631 866

II. Short-term financial 2131 2299 1299 303

investments

III. Short-term receivables 37813 43109 36848 38628

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 IV. Inventories 59578 33257 28704 7328

V. Other short-term assets 2 53 2

B. LONG-TERM ASSETS 10350 9033 7776 18417

II. Fixed assets 5097 3986 3679 4078

VI. Other long-term assets 5253 5047 4079 14339

Total asset 111261 89371 75260 65543

In the period from 2020 to 2023, the asset usage situation of Construction
Investment Joint Stock Company No. 5 has changed significantly.
Total assets show a downward trend in the period of 2020-2023.Short term assets
have fluctuated slightly in the period of 2020-2023, accounting for 90.7% in 2020,
decreasing to 89.8% in 2021, 71.9% of total assets in 2023. Long-term assets decreased
from 2020-2022, but in 2023, they increased sharply by 17 times compared to 2020.
3.1.2 Current status of asset utilization efficiency of the CI5 company.

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 ROA decreased in 2021, it slightly increased in the next 2 years. While total asset
turnover increased in 2021 and had a downward trend in the next 2 years.
Fixed asset turnover has a downward trend in the period of 2020-2023
=> CI5 uses fixed assets to generate sales less efficiently.
Inventory turnover decreased in 2021 and gradually increased in the next two
years. Besides, receivable turnover declined sharply from 5.92 in 2020 to 1.6 in 2023.
3.2. Reasons for choosing CI5 to compare in terms of the efficiency of asset use.
Profitability ratio: CI5 may have a higher profitability ratio than other companies,
indicating its ability to effectively leverage assets to generate profits.
Return on assets: CI5 may have a higher return on assets than its competitors,
indicating its ability to create value from invested assets.
Evaluation from investors: CI5 can be highly appreciated by investors for its
ability to use assets effectively, attract investment capital and increase value for
shareholders.
3.3 Compare the efficiency of asset use of the two companies.
3.3.1. Total asset turnover
CI5 has a higher total turnover asset ratio than that of SJE, CI5’s has an upward
trend while SJE’s has a downward trend in the period of 2020-2023, meaning that the
ability of CI5 to use its assets to generate sales is better than that of CJE.

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3.3.2. Fixed asset turnover
The fixed asset turnover ratio of CI5 is much higher than SJE although it has
gradually decreased in the period of 2020-2023. That means the ability of CI5 to use its
assets to generate sales is better than SJE.
3.3.3. Inventory turnover
It measures how efficiently a
company uses its inventory and is
useful for pricing, manufacturing,
marketing, and purchasing
decisions.
Inventory turnover at SJE is
generally higher than CI5, meaning
that SJE uses its inventory more
effectively than CI5 has done in the
period of 2020-2023.

3.3.4.Receivables turnover
The receivables turnover of two
companies has an opposite trend in
2020-2021 and 2022-2023. From
2021-2022, Receivables turnover of
both increased and SJE’s was higher.
The receivables turnover of two
companies has an opposite trend in
2020-2021 and 2022-2023. From
2021-2022, Receivables turnover of
both increased and SJE’s was higher.
3.3.5.ROA(%): Return on Asset
Return on Asset ratio of SJE is much higher than CI5. SJE’s is about ten times

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higher than CI5 in 2021 and nearly 12 times higher than CI5 in 2023.

This shows that the earnings that SJE has generated for its base asset are much
higher than what CI5 has done.

III. Solutions to improve asset utilization efficiency for businesses.

Any business that puts assets into production wants to bring in the most optimal
profit possible. Although they recognize the effects of assets on production and business
processes, in reality, businesses need specific solutions and management measures to be
able to promote the power of assets for business.
First, businesses need to increase capital mobilization. Maximize and diversify
capital sources, improve capital use efficiency, quickly recover capital to reinvest in
equipment, and supplement and improve assets. Businesses can mobilize capital from
different sources, such as borrowing from outside, issuing shares, or raising capital
internally within the company. However, businesses need to choose the most appropriate
capital source for their business to ensure that the capital they need to invest in fixed
assets will reap benefits in the future.
Second, the quality of asset management and use needs to be continuously
improved. Enterprises need to improve the value of effective use of asset capacity so that
the increase in revenue and profit of the enterprise is faster than the increase in assets,
thereby improving indicators such as: profitability ratio, total asset utilization efficiency.

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 In addition, businesses must have strict asset management policies and use
mechanisms to specifically monitor each fixed asset purchased by the company in order
to strongly develop production activities, and enhance product reputation and brand in the
market.
Finally, businesses need to analyze and evaluate the actual situation of their
business in each specific quarter and year. It is necessary to compare so that we can have
timely plans for each stage.
In short, improving asset utilization efficiency for businesses plays an important
role. Therefore, business owners and investors need to make specific plans for their
companies.

CONCLUSION

Market mechanisms affect businesses, so businesses must change to respond to

increasing competition, which determines the fate of businesses surviving or being
eliminated. The common goal of businesses is to optimize asset utilization efficiency.
Businessmen try to ensure that assets are put to reasonable use to maximize profits. Asset
utilization efficiency directly affects profits and effective use of capital, helping
businesses innovate and accelerate growth.
However, improving the efficiency of asset use not only helps businesses grow but
also promotes the development of the market economy. Therefore, analyzing and
evaluating the efficiency of asset use is an indispensable task that every business must do
if it wants to compete in today's increasingly developing economy.

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 REFERENCES

[1]. Vu Van Ninh, 2014, Corporate Finance Textbook, Academy of Finance, Ha Noi.
[2]. Academy of Finance, 2015, Financial Accounting Textbook.
[3]. Finance Publishing House, Financial accounting textbook
[4]. Song Da 11 Thang Long Company, 2024, Song Da 11 Thang Long Company:
financial statements and accounting documents for 5 years 2020–2025.
[5]. Construction Investment Joint Stock Company No.5, 2024, Construction Investment
Joint Stock Company No. 5: financial statements and accounting documents for 5 years
2020–2025.
[6]. https://s.cafef.vn/upcom/ci5-cong-ty-co-phan-dau-tu-xay-dung-so-5.chn
[7]. https://s.cafef.vn/hastc/sje-cong-ty-co-phan-song-da-11.chn

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TASK2. Prepare at least 10 MCQs of chapter 3
1. XYZ has provided the following data for the past five years:
Year 1: Return = 8%, Standard Deviation = 10%
Year 2: Return = 12%, Standard Deviation = 15%
Year 3: Return = 6%, Standard Deviation = 8%
Year 4: Return = 10%, Standard Deviation = 12%
Year 5: Return = 14%, Standard Deviation = 18%
What is the average return for Company XYZ over the five-year period?
a. 8%
b. 10%
c. 12%
d. 14%
2. A portfolio is invested 40% in Stock A with an expected return of 15% and 60% in
Stock B with an expected return of 8%. What is the expected return of the portfolio?
a. 9.2%
b. 10%
c. 11.2%
d. 12%
3. A stock has an expected return of 10% and a standard deviation of 12%. If the risk-free
rate is 4%, what is the stock's Sharpe ratio?
a. 0.33
b. 0.50
c. 0.67
d. 0.83
4. Stock X has an expected return of 12% and a standard deviation of 18%. Stock Y has
an expected return of 10% and a standard deviation of 12%. If the correlation coefficient
between the two stocks is 0.5, what is the portfolio standard deviation when 60% of the
portfolio is invested in Stock X and 40% is invested in Stock Y?
a. 14.4%

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b. 15.6%
c. 16.8%
d. 18.0%
5. Company B has a beta of 1.5, and the risk-free rate is 4%. The market risk premium is
8%. What is the required rate of return for Company B?
a. 8%
b. 10%
c. 12%
d. 14%
6.Of the following four investments, _________ is considered the safest?
a. Commercial paper
b. Corporate bonds
c. Treasury bond
d. Treasury bills
7. Purchasing power of risk hit the investor when there are chances that the:
(a) Real return on a security is less than the nominal return
(b) Real return on a security is equal to the nominal return
(c) Real return on a security is more than the nominal return
(d) None of these
8. A portfolio comprises two securities and the expected return on them is 12% and 16%
respectively. Determine return of portfolio if first security constitutes 40% of total
portfolio.
a) 12.4%
b) 13.4%
c) 14.4%
d) 15.4%
9. You save Rs. 100 and invest it at a nominal interest rate of 8%. Given the expected
inflation is 5% per year, what is the real rate of return?
a, 2.87%

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b, 2.77%
c, 1.5%
d, 2.45%
10. Company A offers an investment opportunity with an expected return of 10% and a
standard deviation of 5%. Company B offers an investment opportunity with an expected
return of 8% and a standard deviation of 3%. Which investment has a higher
risk-adjusted return?
a) Company A's investment
b) Company B's investment
c) Both investments have the same risk-adjusted return
d) Cannot be determined from the given information

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