ACADEMY OF FINANCE
FACULTY OF CORPORATE FINANCE
--------

BACHELOR THESIS
"IMPROVING THE ANALYSIS OF CAPITAL USE OF
VISICONS INVESTMENT AND CONSTRUCTION
JOINT STOCK COMPANY "

Major

:

Financial Analysis

Code

:

09

Supervisor:

Assoc Prof. PhD. Nguyen Trong Co
PhD. Dao Hong Nhung

Student

:

Nguyen Phuong Linh

Class

:

CQ56/09.01CLC

Hanoi – 03/2022


Bachelor Thesis

Academy of Finance

ACADEMY OF FINANCE
FACULTY OF CORPORATE FINANCE
--------

BACHELOR THESIS
"IMPROVING THE ANALYSIS OF CAPITAL USE OF
VISICONS INVESTMENT AND CONSTRUCTION
JOINT STOCK COMPANY "
Major

:

Financial Analysis

Code


:

09

Supervisor:

Assoc Prof. PhD. Nguyen Trong Co
PhD. Dao Hong Nhung

Student

:

Nguyen Phuong Linh

Class

:

CQ56/09.01CLC

Hanoi – 03/2022

Nguyen Phuong Linh
CQ56/09.01CLC


Bachelor Thesis

Academy of Finance


DECLARATION

I declare that I worked on this Bachelor Thesis on my own under the
guidance of my supervisor, Assoc Prof PhD. Nguyen Trong Co and Ph.D.
Dao Hong Nhung, using the materials listed under sources.
Hanoi, on Feb 20, 2022
Signature

Nguyen Phuong Linh

Nguyen Phuong Linh
CQ56/09.01CLC


Bachelor Thesis

Academy of Finance

TABLE OF CONTENTS

DECLARATION............................................................................................iii
TABLE OF CONTENTS...............................................................................iv
ABBREVIATIONS......................................................................................viii
LIST OF TABLES.........................................................................................ix
LIST OF DIAGRAMS....................................................................................x
FOREWORD...................................................................................................1
CHAPTER 1. THEORETICAL BASIS FOR THE CAPITAL USE
ANALYSIS OF A COMPANY......................................................................8
1.1. General theory on the capital use analysis of a company.....................8

1.1.1. Concept and objectives of the capital use analysis of a company........8
1.1.1.1. Concept.................................................................................................8
1.1.1.2. Objectives.............................................................................................9
1.1.2. Database for the capital use analysis of a company...........................11
1.1.2.1. Corporate financial reporting system................................................11
1.1.2.2. Other documents................................................................................14
1.1.3. Methods for the capital use analysis of a company............................14
1.1.3.1. Comparative method..........................................................................14
1.1.3.2. Division method (detailed method)....................................................15
1.1.3.3. Correlation and Ranking method.......................................................15
1.1.3.4. Factor analysis methods.....................................................................16
1.1.3.5. Dupont analysis method.....................................................................17
1.1.3.6. Forecasting method............................................................................17
1.1.3.7. Other analytical methods...................................................................18
1.2. Content of capital use analysis in a company......................................18
1.2.1. Analysis of a company's assets situation............................................18
Nguyen Phuong Linh
CQ56/09.01CLC


Bachelor Thesis

Academy of Finance

1.2.2. Analysis of the effectiveness of capital use of a company.................20
1.2.2.1. Analysis of total assets turnovers.......................................................20
1.2.2.2. Analysis of current asset/ working capital turnover..........................21
1.2.2.3. Analysis of inventory turnover:..........................................................23
1.2.2.4. Analysis of receivables turnover:.......................................................24
1.2.3. Analysis of the profitability of a company.........................................25

1.2.3.1. Analysis of economic profitability......................................................25
1.2.3.2. Analysis of financial profitability.......................................................27
1.3. Factors affecting the capital use analysis of a company.....................28
1.3.1. Subjective factors................................................................................29
1.3.2. Objective factors.................................................................................30
CONCLUSION CHAPTER 1......................................................................33
CHAPTER 2 CURRENT SITUATION OF THE CAPITAL USE
ANALYSIS OF VISICONS CONSTRUCTION AND INVESTMENT
JOINT STOCK COMPANY........................................................................34
2.1. Overview of Visicons Investment and Construction Joint Stock
Company........................................................................................................34
2.1.1. Company formation and development................................................34
2.1.2. The organizational structure of the company.....................................36
2.1.3. Features of the company's business lines............................................40
2.2. Current situation of the capital use analysis of Visicons Construction
and Investment Joint Stock Company........................................................44
2.2.1. Current situation of databases for the capital use analysis of Visicons
JSC.,

............................................................................................................44

2.2.2. Current situation of methods for the capital use analysis of Visicons
JSC.,

............................................................................................................44

2.2.3. Current situation of content of the capital use analysis of Visicons
JSC.,

............................................................................................................44


Nguyen Phuong Linh
CQ56/09.01CLC


Bachelor Thesis

Academy of Finance

2.2.3.1. The current situation of assets situation analysis of Visicons JSC.,. .44
2.2.3.2. The current situation of capital effectiveness analysis of Visicons
JSC.,................................................................................................................45
2.2.3.3. The current situation of profitability analysis of Visicons JSC.,........46
2.3. Assessing the current situation of capital use analysis of Visicons
JSC.,................................................................................................................47
2.3.1. Achievements.....................................................................................47
2.3.2. Limitation and causes.........................................................................48
2.3.2.1. Limitation:..........................................................................................48
2.3.2.2. Reasons:.............................................................................................49
CONCLUSION CHAPTER 2......................................................................51
CHAPTER 3 SOLUTION TO IMPROVE THE CAPITAL USE
ANALYSIS OF VISICONS INVESTMENT AND CONSTRUCTION
JOINT STOCK COMPANY........................................................................52
3.1. Development orientation of Visicons Investment and Construction
Joint Stock Company....................................................................................52
3.1.1. Medium and long-term development strategy....................................52
3.1.2. The company's environmental, social and community goals.............53
3.2. Requirements and principles for improving the capital use analysis
of Visicons JSC.,............................................................................................53
3.2.1. Requirements for improving the capital use analysis of Visicons JSC.,

............................................................................................................53
3.2.2. Principles for improving the capital use analysis of Visicons JSC.,......
............................................................................................................55
3.3. Solutions to improve the capital use analysis of Visicons JSC.,.........56
3.3.1. Improving the database for the capital use analysis of Visicons JSC.,...
............................................................................................................56

Nguyen Phuong Linh
CQ56/09.01CLC


Bachelor Thesis

Academy of Finance

3.3.2. Improving the methods for the capital use analysis of Visicons JSC.,...
............................................................................................................57
3.3.3. Improving the content of capital use analysis of Visicons JSC.,........63
3.3.3.1. Improving the content of asset situation analysis..............................63
3.3.3.2. Improving the content of capital effectiveness analysis.....................70
3.4. Conditions for implementing the solution............................................94
CONCLUSION CHAPTER 3......................................................................97
CONCLUSION..............................................................................................98
REFERENCES............................................................................................100

Nguyen Phuong Linh
CQ56/09.01CLC


Bachelor Thesis


Academy of Finance

ABBREVIATIONS

AI

Average Inventory

ACA

Average Current Assets

ACR

Average Current Receivables

ATA

Average Total Assets

ARTO

Accounts Receivable Turnover

BEP

Basic Earning Power

CR


Cost Ratio

CAD

Current Assets Days

CAT

Current Assets Turnover

CATA

Short-Term Investment Ratio

COGS

Cost Of Goods Sold

DSOD

Days Of Sale Outstanding

EBIT

Earning Before Interest And Tax

NR

Net Revenue


ROA

Return On Assets

ROE

Return On Equity

ROS

Profitability Ratio

ITO

Inventory Turnover

ITD

Inventory Turnover Days

TAT

Total Asset Turnover

TNR

Total Net Revenue

SFR


Self-Financing Ratio

Nguyen Phuong Linh
CQ56/09.01CLC


Bachelor Thesis

Academy of Finance

LIST OF TABLES
Table 2.1. Revenue structure of the company's operating segments in...........41
3 years 2018, 2019, 2020................................................................................41
Table 2.2. The current situation of assets situation analysis of Visicons JSC.,
.........................................................................................................................45
Table 2.3. The current situation of profitability analysis of Visicons JSC.,. . .46
Table 3.1. Analysis of the structure and fluctuations of assets of Visicons
Construction and Investment Joint Stock Company in the period of 2019 2020.................................................................................................................65
Table 3.2. Analysis the total asset turnover of Visicons JSC., in the period
2019 – 2020.....................................................................................................71
Table 3.3. Analysis of the current asset turnover of Visicons JSC., in the
period 2019 - 2020..........................................................................................75
Table 3.4. Analysis of the inventory turnover of Visicons Construction and
Investment Joint Stock Company in the period of 2019 - 2020......................79
Table 3.5. Analysis of the receivable turnover of Visicons Construction and
Investment Joint Stock Company in the period of 2019 - 2020......................82
Table 3.6. Analysis of economic profitability of Visicons Construction and
Investment Joint Stock Company in the period of 2019 - 2020......................86
Table 3.7. Analyze the financial profitability of Visicons Construction and

Investment Joint Stock Company in the period of 2019 - 2020......................90

Nguyen Phuong Linh
CQ56/09.01CLC


Bachelor Thesis

Academy of Finance

LIST OF DIAGRAMS
Diagram 2.1. The organizational structure of Visicons Construction and
Investment Joint Stock Company....................................................................37

Nguyen Phuong Linh
CQ56/09.01CLC


Bachelor Thesis

Academy of Finance

FOREWORD
1. The urgency of the research topic
Financial analysis of enterprises is an important management tool to
help managers assess the current situation and financial capacity of
enterprises, on that basis, providing stakeholders with scientific bases.
learning and practice to make future financial decisions. Therefore, the
content of enterprise financial analysis needs to be researched on a scientific
basis in terms of theory and practice. In the current market economy, financial

analysis in joint-stock companies has been interested by managers and has
brought certain effects.
Analyzing the use of capital of an enterprise is one of the contents of
financial analysis of an enterprise. The study of the content of analyzing the
capital use of the enterprise will help business managers see how the
enterprise's capital is used. Is it effective or not? Analyzing the causes
affecting capital management, thereby proposing directions and measures to
improve and perfect to improve the effectiveness and efficiency of capital
management in enterprises.
Visicons JSC., is a company operating in the field of construction, with
the main business being Construction contractors and real estate business. The
larger the business, the larger the amount of capital. In the current context, the
number of enterprises in the same construction industry is growing with
young enterprises, modern thinking, the trend of internationalization is
deepening and the competition is fierce. Investment in development of
enterprises is increasing day by day. In addition, the pressure from external
and internal factors, affected by the Covid 19 pandemic, makes it difficult for
businesses in general and Visicons JSC., in particular to face difficulties in
dealing with the situation. The topic of capital management, how to use
Nguyen Phuong Linh
CQ56/09.01CLC

1


Bachelor Thesis

Academy of Finance

capital effectively, requires businesses to mobilize capital from inside as well

as outside.
To achieve the goal, managers must analyze the situation of capital use
and capital management to come up with appropriate solutions to improve the
efficiency of capital use of the company. However, in the current context, the
analysis and management of capital of enterprises has not been focused and
enhanced, not detailed, and these activities are still considered new in some
companies. , especially small and medium enterprises. This makes it difficult
for managers to make appropriate decisions to cope with market fluctuations
as well as their own production activities. Analysis of capital use situation is
conducted to assess accurately, comprehensively and objectively the actual
situation of capital use of enterprises. This is to find out the factors affecting
capital management and develop solutions to improve the efficiency of capital
management in enterprises.
Although the company has analyzed the use of capital to serve
managers and provide information to external parties, the content of financial
analysis in general and analysis of capital use in particular is at The
company's current use is still simple, not diverse in analytical methods.
Therefore, the author of the thesis has chosen the topic "Improving the
analysis of capital use of Visicons Investment and Construction Joint Stock
Company" as the thesis topic. Thereby providing managers of Visicons
Construction and Investment Joint Stock Company as well as other interested
parties with rich content and system of financial analysis indicators, helping
to make decisions. consistent with their goals of interest.
2. Literature review
Corporate financial analysis is a useful tool to help managers make
decisions that are right for their businesses. Financial analysis of enterprises
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Bachelor Thesis

Academy of Finance

in general and analysis of capital use at enterprises in particular have been
interested by many subjects such as scientists, management subjects and
others.
In the process of approaching the thesis research, the author conducts
an overview of the research works related to the topic.
- The textbook "Corporate financial analysis" (revised 2015) of the
Academy of Finance co-chaired by Prof., Dr. Ngo The Chi and Associate
Professor Ph.D. Nguyen Trong Co. From the perspective of being the subject
of business management, the textbook has mentioned the content of analyzing
the use of capital, including: analysis of assets, analysis of capital efficiency,
and analysis of profitability. capital gains from the business. To analyze the
situation of capital use in enterprises, the authors used comparative methods
and factor analysis methods.
- The economic doctoral thesis of Nguyen Thi Thanh (2012) on "
Improving the content and methods of financial analysis in economic groups
operating under the parent-subsidiary model in Vietnam". The thesis has deeply
researched and made new proposals to improve the content, the system of
analytical indicators suitable for economic groups operating under the model of
parent-subsidiary companies in Vietnam. In which, the author mentioned the
content of analyzing the situation of capital use in terms of such aspects as
analysis of asset situation and investment situation; analyze the efficiency of
capital use and analyze the profitability of the Group's capital.
- The economic doctoral thesis of Pham Thi Quyen (2014) on "
Improving the content of financial analysis in joint-stock companies under the
Vietnam Cement Industry Corporation " . The thesis has gone into the theory,
the current situation and completed the financial analysis for the joint stock

companies of the cement industry under the Vietnam Cement Corporation.
For the content of analyzing the use of capital, the author has approached to
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CQ56/09.01CLC


Bachelor Thesis

Academy of Finance

analyze the situation of assets, analyze the efficiency of capital use and
analyze the profitability of capital of the listed cement companies belonging
to the Cement Group. Vietnam Cement Industry Corporation.
- Master's thesis in economics by Do Thi An (2014) on "Improving the
content and methods of financial analysis at PACE Architecture Joint Stock
Company" , the thesis topic has been researched on related issues. to the
content and method of financial analysis in general and the content and
method of analyzing capital use at PACE in particular.
- Master's thesis in economics by Nguyen Thi Trinh (2016) on
"Improving the content of financial analysis at the complete equipment and
materials joint stock company" also studies issues related to the content and
methods of financial analysis. Financial analysis in business. The thesis has
mentioned the theoretical issues of the content of financial analysis in joint
stock companies, the current situation of the content of financial analysis in
general and the analysis of capital use in particular at the material joint stock
company. investment and complete equipment, as well as propose solutions to
improve the content of financial analysis at the company.
Conclude: Through the study of textbooks and doctoral and master's
projects, it is found that most of the research works are related to the theory of
the content of financial analysis and improvement of the financial analysis,

the system of financial analysis indicators or the content of financial analysis
of a particular industry group, or of a unit to make appropriate management
decisions. However, there has not been any research on “Improving the
analysis of capital use of Visicons Investment and Construction Joint Stock
Company”. Moreover, there has been few studies on this topic conducted at
the current special context, in which the economic downturn as a result of the
Covid-19 pandemic pose huge challenges on how to comprehensively analyse
the current situation of capital use and fully consider its abnormal factors
Nguyen Phuong Linh
CQ56/09.01CLC


Bachelor Thesis

Academy of Finance

influencing the capital efficiency, to suggest recommendations to enhance
capital efficiently. Therefore, the author has focused on researching the topic
“Improving the analysis of capital use of Visicons Investment and
Construction Joint Stock Company" with the aims to promote the
effectiveness of analytical tools in the management of capital use at the
company.
3. Research purpose of the topic
 Clarifying the basic theoretical issues of analyzing the situation of capital
use of a company.
 Analyzing and evaluating the current situation of analyzing capital use at
Visicons Construction and Investment Joint Stock Company in order to
point out the achieved results, limitations and causes of those limitations in
the analysis of capital use situation.
 Proposing solutions to improve the analysis of capital use at Visicons

Construction and Investment Joint Stock Company to serve the decisionmaking of management entities in the company.
4. Objects and scope of research
 Research object of the topic: Analysis of capital use for corporate financial
management.
 Research scope of the topic:
 About the content: The author of the thesis researches on the data base,
method and content analysis of the situation of using capital for the
financial management of the company.
 About space: Visicons Construction and Investment Joint Stock
Company.
 About time: Period 2019 - 2020.
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CQ56/09.01CLC


Bachelor Thesis

Academy of Finance

5. Research methods
The thesis uses the dialectical and historical materialism methods of
Marxism-Leninism as the methodology, and at the same time combines the
methods of abstract thinking, analysis, synthesis... to clarify. problems that
need to be solved in order to propose possible solutions.
The thesis also use survey and interview methods to assessing the
actual analysis of capital use at the company. The thesis also uses system
theory, modeling and comparative statistical methods with illustrative data.
The typical and advanced financial analysis methods are applied to
propose solutions to improve the quality of capital use analysis: The method
of comparing and synthesizing actual data collected during the data collection

process at the company, the financial statement system for the year 2019 2020 from which to process the data, to assess the fluctuations and
development trends. The factor analysis method is used to evaluate the impact
of factors on the company’ s capital efficiency. From there, will come up with
appropriate solutions to improve the capital use situation of the company.
6. Research significance
Theoretical significance: On the basis of inheriting the existing
research results, the thesis consolidates and perfects and synthesizes the
theoretical basis for analyzing the situation of capital use in enterprises. From
there, as a premise to apply theory into practice.
Practical significance: On the basis of studying the actual situation of
analyzing capital use at Visicons Construction and Investment Joint Stock
Company, the author evaluates the current situation of analyzing the situation
of capital use at the company in various aspects. In which, these
achievements: limitations and corresponding causes. On the basis of the
Nguyen Phuong Linh
CQ56/09.01CLC


Bachelor Thesis

Academy of Finance

company's development orientation, based on the requirements and principles
of completing the thesis, perfect solutions have been given to analyze the
situation of capital use in terms of improving the database the analytical
methods and the content of analyzing the capital use situation at the company.
7. Structure of the thesis
In addition to the Introduction and Conclusion, the thesis is structures
in three chapters:
Chapter 1: Theoretical basis for the capital use analysis of a company.

Chapter 2: Current situation of the capital use analysis of Visicons Investment
and Construction Joint Stock Company.
Chapter 3: Solution to improve the capital use analysis of Visicons
Investment and Construction Joint Stock Company.

Nguyen Phuong Linh
CQ56/09.01CLC


Bachelor Thesis

Academy of Finance

CHAPTER 1.
THEORETICAL BASIS FOR
THE CAPITAL USE ANALYSIS OF A COMPANY
1.1. General theory on the capital use analysis of a company
1.1.1. Concept and objectives of the capital use analysis of a company
1.1.1.1. Concept
Understood in the most general sense, analysis is the division of things
and phenomena according to certain criteria in order to research and find out
the laws of formation and development of such things and phenomena in a
dialectical relationship with other phenomena. other things or phenomena
under specific conditions.
Analysis is the tool of perception. Analysis helps to recognize the
content, form and development trend of the researched phenomenon, see the
inner constitutive relationship of each thing, phenomenon, its dialectical
relationship with other events. other objects and phenomena, thereby helping
the users of analytical information to make their own decisions.
Capital is one of the very important factors, it helps businesses

maintain all their production and business activities. Capital is a prerequisite,
any business must have a certain amount of capital to operate and maintain its
business. Capital in a business is divided into many types depending on each
method and different goals such as: : working capital, fixed capital, working
capital, etc.
In managing and monitoring the use of capital of the enterprise,
management entities use analysis as an effective tool to study, evaluate the
current situation, adjust and forecast the situation of capital use in the
enterprise. company. Capital has a close relationship with other activities in
the company, all activities in the company need to use capital, especially
managers are also interested in efficiency in using and managing capital.
Nguyen Phuong Linh
CQ56/09.01CLC


Bachelor Thesis

Academy of Finance

Thus, it can be said that: Analysis of capital use is the overall
application of scientific analytical methods to assess the current and future
capital use and capital management of an enterprise. future reports to provide
information for management subjects (interested objects) to make
management decisions in accordance with the objectives they are interested in
1.1.1.2. Objectives
In a market economy with macro management by the State, there are
many entities interested in the financial situation of enterprises such as
investors, credit providers, managers in joint stock companies. , tax
authorities, State management agencies, employees... These subjects are
interested in the financial situation of enterprises from different angles. The

analysis of capital use helps each subject get information suitable for their
purposes, on the basis of which they can make decisions to preserve and
increase their interests associated with the use of capital. with business
operations. Specific analysis objectives associated with 3 groups of
management subjects are: business administrators, investors, and lenders.

 For business administrators:
As an internal analysis to serve the management and use of capital of
the company, it is usually carried out by the company itself to meet the
following objectives:
 Evaluating the efficiency of capital use, assessing capital management
in the past period, the implementation of capital management
principles, profitability, solvency and forecasting risks.. From there,
take timely adjustment measures and have the necessary basis to make
policies on capital use for the future of enterprises.

Nguyen Phuong Linh
CQ56/09.01CLC


Bachelor Thesis

Academy of Finance

 Directing the decisions of the Board of Directors in the direction
appropriate to the actual situation of the company, such as decisions on
investment, financing, profit distribution...
 Analysis of the capital use situation of the enterprise is the basis for
predictions about the adjustment and use of capital in the future.
 Analyzing the use of capital of the enterprise is a tool to check and

control the use of capital in the enterprise.

 For investors:
Investors are those who assign their capital to the company with the
expectation of high capital return and must accept the risks that may occur. In
fact, investors are particularly interested in a company's profitability.
Realizing that investors will not be really satisfied with the return on the
books of the accountant and assume that it is always different from the actual
return of the invested capital. The advance calculation of returns will be fully
studied in the company's profit distribution policy and in the risk study.
Analyzing the use of capital for investors is to evaluate the business
and estimate the value of shares, based on the study of reports, profitability,
risk analysis in business...

 For lenders:
Analysis the situation of capital use for a lender is to determine a
customer's ability to repay a loan. However, the analysis with long-term loans
and short-term loans has different features.
 With short-term loans: Lenders are especially interested in the
company's ability to pay immediately. In other words, the company's
ability to respond when debt is due.
 With long-term loans: the lender must be sure of the ability to repay the
capital and interest, so the profitability of the loan, the investment
capital of the joint stock company as well as the payment risk factors. ,
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