Assignment 3B:

Financial Report
and Analysis
Course: Accounting in Organisation and Society - ACCT2105
Nguyen The Nam An
Bachelor of Business: Logistics and Supply Chain Management
S-ID: S3926614
Teacher: Marlehan Bin Mohamed
Date of submission: May 20th 2022
 Table of Contents.
Company overview 4

Analysis of profitablity 6

Analysis of liquidity 9

Analysis of solvency 11

Comparison and evaluation 13

Analysis of non-financial factors 16

Conclusion 19
Company Overview
 Development History

1976 1996 2006 2000s 2021

Establised with First-Class Labor First Dairy Farm Investment in a 45 years of
three factories. Medal in Tuyen Quang company in New establishment.
Zealand Achieve top 40
manufacturing world dairy
whole milk producers with
powder with a the highest
capacity of turnover
32,000 tons/years
Analysis of Profitability
Ratios
 Summary of 3 ratios in 3 recent years
Return on assets (ROA)
Ratios 2019 2020 2021
Return on assets compares the worth of a
company's assets to the profits it generates Return on assets 26% 24% 21%
over a certain time period (Birken and Curry
Return on owners’ 38% 35% 31%
2021). ROA = (Net Profit / equity
Total Assets) x 100
Profit margin 19% 19% 17%

Return on owners’ equity (ROE)

ROE demonstrates how much profit a firm
makes from its shareholders' equity (CFI n.d).
ROE =
Profit margin: a ratio of a company's earnings (or profits) to its revenue (CFI
Net Income / Shareholders’ Equity 
n.d)
Profitability Ratios
● Decrease in all three ratios Profitability Ratios
over the period 38%
35%
31%
26%
24%
Þ The company does not manage 19% 19%
21%
17%
their asset and equity well so
the ratios of profitability
decrease overtime
2019 2020 2021

Return on assets Return on owners’ equity

Profit margin
Analysis of Liquidity
Ratios
 Liquidity Ratios
Current Quick

2019 1.71 1.36

2020 2.09 1.73

2021 2.12 1.71

● The ratios of both current and quick increase overtime, showing

2 selected ratios: a good management of liabilities
- Current ratio
- Quick ratio
● All of the ratios in 3 recent years is above 1, which indicate the
ability of paying short-term debt
Analysis of Solvency
Ratios
 Solvency Ratios
Debt to assets Debt to equity
2019 33% 50%
2020 31% 44%
2021 33% 49%

● The debt to assets in the period remains at around 33%, which means one third of the company is own
by creditors, suggesting that the Vinamilk would have less trouble dealing with the incurring
additional debt

● The debt to equity is considered good as it is lower than 1.0, which is less risky to invest.

=> The company is able to pay the long-term debt and safer to invest.
Comparison with
the industry’s
financial ratios
Note: The data in 2021 of the dairy industry could not be found, so the comparison is made with the data from 2020
 Comparison and key findings
Comparing with the average industry financial ratios in U.S. listed companies in 2020:

- The Profitability of Vinamilk is generally better than the U.S. companies.

+ Profit margin is positive and at a good rate of nearly 20%.
+ ROA and ROE of Vinamilk are much greater than the average of US
- The Liquidity Ratios of Vinamilk are also higher than the US, which means the company
manage the liabilities better and is more invulnerable to short-term debt.
- Regarding the Solvency Ratios, debt ratio in U.S. companies is at a significant level while
Vinamilk is lower, which is safer to invest and have more ability to service the debts.
 Analysis on
non-financial factors
 Environmental factors
Greenhouse Gas Water Availability &
Waste
Emissions Quality
Efficiency use of resources, Good management of waste and Efficient and responsible use of
greenhouse gas reduced, application of 3R (Reduce, water
application of technology and Reuse, Recycle)
green energy
Soil Nutrients, Soil
Biodiversity
Qualityland
Sustainable & Retention
management
Dogs can smell your feelings.
 Social responsibilities

Contribution to Social campaign: “STAND TALL

pandemic control
measures
- VND10 Billion to the
vaccine fund
- Donated Nutritional Products
(4 million products to front
line)
- in the pandemic
Contributed VND100 Billion
to support community
“You are healthy,
Vietnam is health”
- Contributed VND10 billion
to purchase vaccines for
children
- Raise social interaction to
support struggling children
- Support the frontline forces
with nutritious products
VIETNAM MILK”
FUND and School
Milk Program
- Donated milk to
disadvantaged children
- Programs to promote
children throughout the
country to drink milk and
strengthen health
Conclusion
Analysis of financial ratios
- All three ratios covered in the presentation
show a positive tendency of the financial
performance comparing to the US average
- Notably, the profitability remains at a high
level in recent years.
- Both liquidity and solvency ratios prove the
company has the capacity to handle long and
short-term debt, and is safe to invest

Analysis of non-financial factors

- Great social responsibilities as a leading
dairy company in the country Decision on Investment: Yes
- Clearly explain the application technology
and great management of environmental
issue
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Thank you!
Do you have any questions?
s3926614@rmit.edu.vn