VIETNAM GENERAL CONFEDERATION OF LABOUR

TON DUC THANG UNIVERSITY

FACULTY OF FINANCE AND BANKING
---------------------------------

FINAL REPORT
SUBJECT: FINANCIAL ANALYSIS

Topic:
TNG INVESTMENT AND TRADING JOINT STOCK
COMPANY

Group’s members:
1. Le Thai Bao Long B19H0231
2. Nguyen Cong Minh B19H0237
3. Tran Quoc Khanh B19H0216

Ho Chi Minh City, 5st May 2022

 Table of Contents
CHAPTER 1: BUSINESS OVERVIEW............................................................................3
1.1 Overview......................................................................................................................3
1.2 History of the Establishment........................................................................................4
1.3 Achievements:..............................................................................................................7
1.4 Vision, mission, and core values..................................................................................8
1.5 Business industry:........................................................................................................9
1.6 Similar companies:.......................................................................................................9
1.7 Company Structure and Capital....................................................................................9
Company organization Chart..............................................................................................9
TNG’s Ownership structure.............................................................................................10
1.8 SWOT analysis...........................................................................................................11
CHAPTER 2: FINANCIAL ANALYSIS.........................................................................12
2.1. Changes in the Balance Sheet....................................................................................12
2.2. Changes in items in the Income Statement:...............................................................16
2.3. Changes in cash flow statement.................................................................................18
2.4. Liquidity ratios..........................................................................................................20
2.5. Solvency ratio............................................................................................................ 24
2.6. Activity ratio.............................................................................................................26
2.7. Profitability ratio.......................................................................................................32
2.8. Market ratio...............................................................................................................35
2.9. DUPONT ANALYSIS..............................................................................................38
CHAPTER 1: BUSINESS OVERVIEW

1.1 Overview

1.1.1 GENERAL INFORMATION

Information about company

Company name: CÔNG TY CỔ PHẦN ĐẦU TƯ VÀ THƯƠNG MẠI TNG

International name: TNG INVESTMENT AND TRADING JOINT STOCK COMPANY

Securities name: TNG

Business registration license: 4600305723 first issued by Thai Nguyen Department of

Planning and Investment on January 2, 2003, registered for the 34th change on December
10, 2021

Major: Sewing clothes

Charter capital: 926.987,790,000 VND

COMMUNICATION:

Headquarters: No. 434/1, Bac Kan Street, Hoang Van Thu Ward, City. Thai Nguyen
Phone: 02083.858.508

Email: info@tng.vn

Website: htttp://tng.vn

1.2 History of the Establishment

1979: November 22, 1979: Bac Thai Garment Enterprise, established under Decision No.
488/QDUB of Bac Thai People's Committee with 02 production lines receiving aid from
the German Democratic Republic.

1997: 04/11/1997: The enterprise was renamed Thai Nguyen Garment Company
according to Decision No. 676/QD-UB of Thai Nguyen People's Committee.

Joint venture with Duc Giang Garment Company of Vietnam Textile and Garment
Corporation established Viet Thai Garment Joint Venture Company.

2003: The company changed its name to Thai Nguyen Garment Export Joint Stock
Company.

2006: Commencement of construction of TNG Song Cong Factory

2007: Renamed TNG Trading and Investment Joint Stock Company.

TNG shares are listed on the Hanoi Stock Exchange, the stock code is TNG.

2008: This is a period of innovation, strong investment in automation technology, a

period of development and brand affirmation, focus on developing and applying ERP in
production and business management, and investing in renovating all TNG factories
under the Green Factory model.
2010: Commencement of construction of TNG Phu Binh Factory.

2013: Commencement of construction of Dai Tu TNG Factory.

2016: Inaugurated and put into operation TNG Fashion Design Center and the
Company's office

2018: Commenced construction of TNG Village commercial building.

Acquired DG Garment Factory, renamed TNG Dong Hy Garment Branch and invested in
increasing factory capacity to 35 sewing lines.

Successfully issued convertible bonds of VND 200 billion to foreign investors.

Approved by Thai Nguyen Provincial People's Committee for the topic "Research on
application of sewing technology not only on shirt products" and certified by the
Copyright Office, No. 2773/2008/QTG dated June 4, 2018.
2019: TNG officially expanded into real estate, with the launch of TNG Village
Commercial Condominium Project in October 2019. TNG Village was built on the goal
of "for the happiness of workers". The project is part of a series of utility projects and
developed by TNG with the desire to improve the quality of life for employees.

2020: TNG Vo Nhai Factory deploys the Green Factory model.

Certification of Quality Management System - Medical equipment according to ISO

13485:2016 standard for TNG Fashion Branch - TNG Investment and Trading Joint
Stock Company.

Certificate of Quality Management System ISO 9001:2015 for TNG Fashion Branch -
TNG Investment and Trading Joint Stock Company.

Products certified TCVN 8389-1:2010 for 2-layer antibacterial masks of TNG Investment
and Trading Joint Stock Company

QCVN 01:2017/BCT certification for garment products - TNG Investment and Trading
Joint Stock Company.

CE Marking certification – certification of exporting masks and protective gear to the

European market.
TNG Fashion: Launching fire protection clothing products.

Launching Antibacterial Cotton - Products used in masks, garments,...

TNG is honored to receive the Certificate of Sustainable Enterprise in 2020 –

Manufacturing

2021: Launch of human health care products and services.

Installing and upgrading the Factory using rooftop solar power system (Cotton and
Packaging Branch).

Building a green factory system that meets LOTUS standards,…

Invest in real estate projects.

1.3 Achievements:

The company was equitized with charter capital of VND 10 billion on January 2, 2003
with 100% capital of shareholders. This is also the time that marks TNG company
becoming a private owned non-state enterprise.

The next remarkable milestone is the company listed on the Hanoi Stock Exchange on
November 22, 2017.
In 2009, TNG was honored to be awarded the Second Class Labor Medal by the
President of the Socialist Republic of Vietnam. This noble award was also presented to
the individual Chairman of the Board of Directors Nguyen Van Thoi the Third-class
Labor Medal.

12 garment factories with 233 sewing lines and auxiliary factories are the numbers of
TNG's current scale. The company's ancillary factories include: Embroidery factory,
Industrial laundry, bag production, carton packaging, cotton factory, quilting.

TOP 500 largest enterprises in Vietnam", "TOP 10 largest enterprises in Vietnam's textile
and garment industry" are positions that TNG has achieved thanks to its great
achievements.

1.4 Vision, mission, and core values

VISION

As a public company in the TOP most transparent, best governance, the most sustainable
development is a manufacturing and retail company from the domestic market to the
global market with sales revenue reaching TOP billion US dollars.

MISSION

Take absolute responsibility for all products delivered to consumers Bring happiness to
employees, customers and the community.

CORE VALUE

Responsibilities: Implement business ethics at work, ensure all regimes and interests of
employees in accordance with the provisions of law

Sustainable development: We are committed to ensuring multidimensional long-term

benefits in operations with customers and stakeholders
Developing a green future: For a green TNG, we focus on all activities related to the lives
of workers and local communities. Implement the motto "Economic development goes
hand in hand with environmental protection".

Working environment: A worthy place to dedicate and work.

1.5 Business industry:

TNG is a unit operating in the field of export industrial garment, producing domestic
goods under TNG brand. With key product lines such as cotton jackets, feathers, seam
clothing, shorts of all kinds, skirts, children's goods, clothing, knitwear; production of
cotton sheets, quilting, printing - industrial embroidery, cartons, PE bags of all kinds. In
2021, TNG invested in researching and developing a new garment product line - TSAFE
series serves the essential needs of the market such as masks, epidemic protection kits ...

1.6 Similar companies:

Everpia Joint Stock Company (EVE)

Binh Thanh Production, Trading and Import-Export Joint Stock Company (GIL)

Thanh Cong Textile - Investment - Trade Joint Stock Company (TCM)

Garmex Saigon Joint Stock Company (GMC)

Song Hong Garment Joint Stock Company (MSH)

TDT Investment and Development Joint Stock Company (TDT)

Northern Textile Garment Joint Stock Company (TET)

1.7 Company Structure and Capital

Company organization Chart

TNG’s Ownership structure

STT Shareholder Quantity (person) Number of Ratio(%)

shares

I Domestic Shareholders 14.944 84.284.920 90,92%

1.1 Institutional shareholders 36 1.684.633 1,82%

1.2 Individual shareholders 14.908 82.600.287 89,11%

II Foreign shareholders 103 8.413.859 9,08%

2.1 Institutional shareholders 15 8.072.348 8,71%

2.2 Individual shareholders 88 341.511 0,37%

Total 15.047 92.698.779 100%

1.8 SWOT analysis

STRENGTHS:

+TNG company oriented production and business as the core. Producing garments for
export will bring stability and profit to the company.

+TNG currently has large branded retail customers. These customers are committed to
long-term and stable orders with the company and all ask TNG to increase the volume of
goods.

+TNG's products and product brands in the international market are being highly
appreciated by the media. This is the fulcrum for TNG's development.

WEAKNESSES:

+The promotion and development of domestic brands is not really good.

+TNG does not have much experience in real estate business and healthcare services.

OPPORTUNITIES:

+The openness of the economy has encouraged foreign investors to invest in Vietnam,
which is favorable for the company to actively develop its business in the form of FOB.

+In addition to abundant capital from banks, the company has issued bonds for the
purpose of expanding production and business.

THREATS:

+Product requirements are increasingly strict from major export markets such as the EU,
the United States, Japan,...Fierce competition from other textile exporting countries such
as China, India,...
+The textile industry and supporting industries in Vietnam have not developed
accordingly, the number of manufacturing enterprises is increasing, affecting the
retention of workers.

+The uncontrollable Covid-19 pandemic in the main export markets will be a great
difficulty in the coming period for the Company.

CHAPTER 2: FINANCIAL ANALYSIS

2.1. Changes in the Balance Sheet

TNG's total assets tend to increase over the years 2019-2021. Total asset in
2020 increased compared to 2019 by 17.43%. The main reason was due to the
strong increase in long-term assets because this is the period when TNG started
implementing capital construction projects with large capital scale. The
proportion of short-term and long-term assets in total assets does not have a big
difference, ensuring the balance in the asset structure and tends to increase in
the proportion of long-term assets.
TNG's short-term assets have increased in value over the years, specifically in
2020 compared to 2019 it increased by about 6.69%, by the end of 2021
compared to 2019 it increased by 27.08% respectively.
Cash and cash equivalents are the most volatile indicators of short-term assets.
Comparing 2020 with 2019, the value of this item decreased by 54.7%
respectively. Comparing 2021 with 2019, the value of this item decreased
sharply, corresponding to a decrease of 95.38%. This directly affects the
“Instant Ratio” of TNG.
Short-term receivables is also an indicator with large fluctuations in total short-
term assets. The value of short-term receivables in 2020 increased by 23.88%,
respectively, in 2021, by 97.35% compared to 2019. The reason for the

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increase in short-term receivables comes from the method of consumption.
Wholesale sales are mainly so the payment term is long. Due to COVID-19,
some of TNG's partners and customers faced difficulties, leading to late
payment. Receivables from customers accounted for the largest proportion in
this item, showing the Company's efforts in maintaining and expanding
relationships with customers but also potential risks related to the ability to
recover. debt and capital misappropriation.
Inventories maintained a relatively stable proportion of total assets over the
past 3 years (in 2019 accounted for 28.42%, in 2020 accounted for 28.85%, in
2021 accounted for 26.55%), with a marked increase. value over the years.
Compared to 2019, the inventory value in 2020 has increased by 19.2% and in
2021 has increased by 34.74%. Inventories are also the indicator that accounts
for the largest proportion of TNG's short-term assets due to the specificity of
business lines, so it is necessary to reserve raw materials, and at the same time,
it is necessary to ensure the amount of finished products supplied to the market
and implement export contracts. However, TNG needs to control inventory
well to avoid capital stagnation, affecting TNG's ability to pay short-term
debts, specifically the "Quick solvency ratio".
TNG's long-term assets fluctuated over the years mainly due to fluctuations in
the value of long-term unfinished assets. While other indicators in long-term
assets such as long-term receivables, fixed assets, investment properties and
other long-term assets account for a relatively stable proportion with little
fluctuation in total assets. of TNG, the value of long-term unfinished assets has
a remarkable growth. In 2020 compared to 2019, the value of this item has
increased by 166.75%; in 2021 compared to 2019 has increased equivalent to
296.76%. The reason for this growth is that in the period of 2020 - 2021, TNG
continues to dream of expanding its business, investing in establishing a
number of new branches such as Vo Nhai 2 Garment Branch, Song Cong 4
Garment Branch…

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The Company's capital includes Liabilities and Equity. In Liabilities, it includes
items under Short-term debt and long-term debt, while Owner's equity only
includes owner's equity, Funds and other funds that do not arise.
In 2020 compared to 2019 the total capital value of TNG increased with an
increase rate of 17.43%. Such a relatively large fluctuation was mainly caused
by an increase in short-term debt, with a corresponding increase in value of
29.81%, while long-term debt increased by 4.51% respectively. By 2021,
compared to 2019 short-term debt increased by 72.98%, respectively, while
long-term debt decreased by 16.11%. That shows that TNG is in need of short-
term capital sources for quick capital turnover, serving short-term production
needs. An advantage of using short-term debt for TNG is that short-term credit
loans are often less stringent than long-term credit loans, and the cost of using
them is also low. lower and help the Company to easily adjust the capital
structure flexibly. However, there is a note for short-term debts that require
TNG to have payment obligations in a short time, if they cannot meet them,
they will fall into the state of inability to pay due debts, causing severe
pressures. pressure on the production and business process, especially when
using short-term debt to invest in long-term assets due to the long payback
period. Therefore, TNG needs to take active measures in promoting solvency in
the short term, but at the same time, seek long-term debts with conditions and

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longer duration so as not to miss investment opportunities, contributing to to
boost production and business in the near future.
Meanwhile, equity, although the value has increased over the past three years,
the proportion of total capital tends to decrease from 2019 to 2021 (in 2019
equity accounted for 35.24% of total capital). , in 2020 accounting for 32.29%
of total capital and in 2021 accounting for 33.48% of total capital). Thus, the
Company's main source of mobilized capital is from borrowed capital and
appropriating capital in payables to sellers, therefore, there are many potential
risks in debt payment, affecting the financial security of the Company.
Company.
2.2. Changes in items in the Income Statement:

Revenue: TNG's revenue in the period of 2019 - 2021 is not stable. TNG's
revenue in 2019 reached 4,618 billion VND. But by 2020, this revenue will
decrease to 4,480 billion VND, decrease 3% compared to 2019. By 2021, due
to the control of the covid 19 epidemic, TNG's revenue will grow again with a
revenue of 5,446 billion VND up 21.56% compared to 2020.
Net revenue: TNG's net revenue in 2019 reached 4,612 billion VND. By 2020,
this net revenue will be reduced by 2.86% compared to 2019 with 4,480 billion

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VND. Until 2021, TNG's net revenue grew again with net revenue of up to 
5,444 billion VND, up 21.52% compared to 2020.
Other income: TNG's other income in 2019 reached  4 billion VND. By 2020,
this other income will be reduced by 25% compared to 2019 with 3 billion
VND. By 2021, other income TNG will increase by 33.33% compared to 2019
with 4 billion VND.

Financial expenses: Along with financial operating revenue, we also recognize

financial costs incurred due to interest expenses and losses from investment
activities. In 2019, financial expenses reached 136 billion VND, this proportion
has not changed compared to 2018 with 0%. by 2020, the cost increase to 144
billion VND, an increase of 5.88% compared to 2019. In 2021, financial
expenses continue to increase to 170 billion VND, increase of 18.06%
compared to 2020.
Other expenses: TNG's other expenses in 2019-2021 are fluctuating. In 2019,
TNG's other expenses reached 7 billion VND. However, in 2020, TNG's other
expenses increased significantly, increasing by 157.14 % compared to 2019
with 18 billion VND. This is a pretty big expense that the company should
consider changing. By 2021, TNG will control this cost better than in 2020
with another cost with 11 billion VND, improve 38.89% compared to 2020.

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Gross profit: TNG's gross profit in 2019 fluctuated steadily at 787 billion VND.
In 2020, TNG's gross profit decreased to 676 billion VND, down 14.10%
compared to 2019. By 2021, TNG's gross profit increased to 7.54% compared
to 2020 with 727 billion VND.
Operating profit: TNG's operating profit in 2019 reached 292 billion VND. By
2020, TNG's operating profit will decrease to 201 billion VND, down 31.16%
compared to 2019. In 2021, TNG's operating profit returned to a stable level of
288 billion VND, up to 43.28% compared to 2020.
Profit before tax: In 2019, TNG's profit before tax reached 289 billion VND.
By 2020, TNG's profit before tax accounting profit  decreased significantly
compared to 2019. Reduced to 186 billion VND, down 35.64% compared to
2019. By 2021, TNG's pre-tax profit is well controlled at 281 billion VND, up
51.08% compared to 2020.
Net profit after tax: In 2019, TNG's profit after tax reached 230 billion VND.
By 2020, TNG's after-tax profit decrease by 33.04% compared to 2019 at 154
billion VND. In 2021, TNG's well-controlled profit after tax increased
significantly to 232 billion VND, increase 50.65% compared to 2020.
2.3. Changes in cash flow statement

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Cash flow from operating activities in 2019 reached 253.45%. Meanwhile, by
2020 it will drop sharply by negative 52.2% due to a decrease in pre-tax profit
by more than half. By 2021, there will be a sharper decrease than 2020 by
negative 81.63% due to an increase in pre-tax profit, but profit from business
activities before the change in working capital decreases sharply.
As for the cash source from investment activities, due to the impact of the
Covid-19 epidemic, the structure of the money source will decrease sharply
from 62.02% to 45.4% in 2020 due to increased spending on buying fixed
assets and lending. By 2021, the post-Covid-19 recovery period, this rate will
drop sharply to 17.76%.
Net cash flow from operating activities: In 2019, net cash flow from operating
activities was 289 billion VND. This shows the company's ability to generate
cash from its solid business to pay off debt and keep the business afloat. During
the year, the company had a lot of receivables, so it had to borrow from
outside, leading to an increase in liabilities to make up for the lack of capital. In
2020, this value decreased sharply, reaching 186 billion VND. In 2021, this
value increases significantly, reaching 281 billion VND. This is a good number
in the time of the Covid pandemic.
Cash flow from investment activities: In 2019, the company recovered from
liquidation of fixed assets of 129 billion VND, loan interest and dividends of
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101 billion VND, but cash spent on investment activities was still negative 337
copper. In 2020, this value is still negative 490, which is -50% of the total
amount owned by the business.
Cash flow from financial activities: In 2019, net cash flow from financial
activities was 4,220 billion VND. The reason for the high cash flow from
financial activities is that the company has increased its debt to cover its
operating expenses. Increase investment in fixed assets. On the other hand, the
company also repays the loan principal during the year and pays dividends to
the owners. In 2020, this value increased compared to the previous year,
reaching 4,361 billion VND, accounting for 3.34% of the proportion. In 2021,
this number will continue to increase to 5,200 billion VND.
Net cash flow during the period: Regarding cash flow fluctuations, net cash
flow from operating activities recorded negative over 318 billion VND in the
first 8 months, net cash flow from investing activities was negative 369 billion
VND. Net cash flow from financial activities was more than 605 billion VND.
2.4. Liquidity ratios

Liquidity ratio is the ratio that measures a company’s ability to pay short-term
obligations and cash flows, including: quick ratio, current ratio and cash ratio.
2.4.1. Quick ratio

 The quick ratio is an indicator of a company’s short-term liquidity

position and measures a company’s ability to meet its short-term
obligations with its most liquid assets.
 Quick ratio= Quick asset/ Current liabilities

2019 2020 2021

Current assets 1,594.00  1,701.00  2,026.00 

Inventory 860.00  1,026.00  1,159.00 

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 Current liabilities 1,415.00 1,836.00 2,447.00

Quick ratio of TNG 0.46 0.32 0.30

Quick ratio of TET 13.10 9.8 12.15

Quick ratio of GIL 1.53 0.89 1.35

Quick ratio of industry 12.15 5.40 4.02

 The TNG’s quick  ratio  of the end of 2019 is 0.52; the end of 2020 is
0.37; and the end of 2021 is 0.35. This aim likewise tends to decline
during the years of research. Cause is quantity The TNG's inventory
makes up a significant share of its overall short-term assets. Because a
significant component of the Company's overall short-term assets are
comprised of its inventory.

2.4.2. Current ratio

 The current ratio is a liquidity ratio that measures a company’s ability to

pay short-term obligations or those due within one year. It tells investors
and analysts how a company can maximize the current assets on its
balance sheet to satisfy its current debt and other payables. A current
ratio that is in line with the industry average or slightly higher is

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 generally considered acceptable. A current ratio that is lower than the
industry average may indicate a higher risk of distress or default. 
 Current ratio= Current asset/ Current liabilities

19 20 21

Current assets 1,594.00  1,701.00  2,026.00 

Current liabilities 1,415.00  1,836.00  2,447.00 

Current ratio of TNG 1.13 0.93 0.83

Current ratio of TET 13.10 9.6 12.10

Current ratio of GIL 2.63 0.64 2.45

Current ratio of industry 12.16 5.42 4.04

 TNG was able to pay its short-term obligations and was in a normal
financial state in 2019, as evidenced by the short-term debt solvency
ratio of 1.13 times. But over the following two years, this coefficient is
likely to fall; precisely, by the end of 2020, compared to 2019, it will
fall by 0.2 and 17.81%, and by the end of 2021, compared to 2019, it
will fall by 0.3 times, or 26.54 percent. This demonstrates that TNG is
struggling financially and that there is significant strain on its solvency.

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2.4.3. Cash ratio

 The cash ratio is a measurement of a company's liquidity. It specifically

calculates the ratio of a company's total cash and cash equivalents to its
current liabilities. The metric evaluates company's ability to repay its
short-term debt with cash or near-cash resources, such as easily
marketable securities. This information is useful to creditors when they
decide how much money, if any, they would be willing to loan a
company.
 Cash Ratio= Cash and Cash Equivalents / Current Liabilities

19 20 21

Cash and cash equivalents 293.00  133.00  14.00 

Current liabilities 1,415.00  1,836.00  2,447.00 

Cash ratio of TNG 0.21 0.07 0.01

Cash ratio of TET 0.98 0.75 0.87

Cash ratio of GIL 0.35 0.24 0.28

Cash ratio of industry 3.86 2.17 1.52

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  This indication reveals whether TNG can pay its short-term obligations,
especially those that are due, using the cash and cash equivalents that are
on hand. At TNG, the value of this indicator is low (less than 1) and
varies over time; precisely, at the end of 2019, it is 0.21, at the end of
2020, it is 0.07, and at the end of 2021, it is 0.01. The rationale is that
over time, the TNG's short-term debt tends to rise while the value of its
cash and cash equivalents tends to decline. In order to satisfy its cash
demands, the firm must focus more on collecting short-term receivables
and maintaining its capacity to turn other current assets into cash.

2.5. Solvency ratio

2.5.1. Debt to asset ratio

 Total-debt-to-total-assets is a leverage ratio that defines the total amount

of debt relative to assets owned by a company.
 Debt to Asset ratio = (Short term Debt + Long Term Debt) / Total
Assets

19 20 21

Short term debt 1,415.00  1,836.00  2,447.00 

Long term debt 546.00  571.00  458.00 

total asset 3,027.00  3,555.00  4,367.00 

Debt to asset ratio 0.65 0.68 0.67

 The debt-to-assets ratio shows what percentage of a company's total

assets is financed by debt. This coefficient is used to determine the
obligation of the company owner to the creditor in contributing capital.
Company owners want this ratio to be high because they want increased
profits. Specifically, in 2019 TNG's debt-to-total asset ratio is 65%,
increasing to 68% in 2020, and again decreasing to 67% in 2021. Thus,
it can be seen that TNG's debt ratio fluctuates from 65% to Such 70%

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 debt ratio is quite high, threatening financial safety, the company is
dependent on creditors.

2.5.2. Debt to equity ratio

 Debt-to-equity (D/E) ratio compares a company’s total liabilities with its

shareholder equity and can be used to assess the extent of its reliance on
debt.
 Debt-to-equity (D/E) = Total liabilities / Total shareholders' equity

19 20 21

Total liabilities 1,961.00  2,407.00  2,905.00 

Total equity 652.00  740.00  927.00 

Debt to equity  3.01 3.25 3.13

 The equity ratio tells you how much debt a business uses compared to
its use of equity, which corresponds to the amount of equity, how much
debt the business uses. TNG's equity ratio over the years is 301% and
325% in 2019 and 2020, respectively, decreasing in 2021 to about
313%. Thus, it can be seen that TNG has such a high equity ratio, even
though it is positive, it can help the company increase capital and boost
production and business. However, if the company does not know how
to make good use of this resource, it is likely to face pressure to pay
interest as well as face the risk of loss.
2.5.3. Interest coverage ratio

 The interest coverage ratio is used to measure how well a firm can pay
the interest due on outstanding debt
 Interest coverage ratio = EBIT / Interest Expense
 where EBIT = Earnings before interest and taxes.

19 20 21

EBIT 230.00  154.00  232.00 

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 Interest expenses 101.00  121.00  125.00 

Interest coverage ratio 2.28 1.27 1.86

 The loan interest payment ratio reflects the enterprise's ability to pay
interest from the profit from production and business activities. State the
relationship between interest expense and corporate profits. The interest
payment coefficient has increased gradually over the past few years, but
by 2020, it will decrease to 1.27, then increase again in 2021 to 1.86. In
the recent period, TNG has deployed many other business items such as
real estate, this is the initial stage of investment, requires a lot of capital
and investment costs. TNG's new source of income.
 => Liability ratio reflects the company's ability to pay debts in general,
from sources such as revenue, depreciation or pre-tax profit. This ratio
tends to decrease from 2019 to 2021, because TNG borrows more, but
still ensures a positive debt repayment capacity. It shows that TNG has
been trying to develop, that's why it needs external capital support. And
TNG's reputation with strong profit growth also makes it easier for the
company to get help from financial institutions.
2.6. Activity ratio

2.6.1. Receivable turnover

The accounts receivable turnover ratio is an accounting measure used to

quantify how efficiently a company is in collecting receivables from its clients.
Receivable turnover = Revenue /  Average accounts receivable

19 20 21

Revenue 4,618.00  4,480.00  5,446.00 

Short term receivable 364.00  451.00  719.00 

Long term receivable 16.00  13.00  21.00 

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 Average account receivable 190 232 370

Receivables turnover ratio is shown in turn through the following indicators

such as revenue, short-term receipts, long-term receipts, average receipts,
receivables turnover and number of days payable TNG company's income from
payment of goods. First, the revenue index shows a slight decrease from 4,618
to 4,480 in 2019 -2020 from 4,618 to 4,480 and in 2021, it tends to increase
sharply to 5,446 due to the recovery in growth momentum after the economic
market recovery after the pandemic. covid-19 disease. The short term
receivable index over 3 years shows a strong growth from 364 to 451 and a
strong growth rate to 719, showing that the company is doing very well in
controlling short-term receivables. The long term receivable index shows a
significant decrease in the 2019-2020 period from 16 to 13 and increases
sharply to 21 in 2021. The average account receivable index shows a strong
increase over the years from 190 to increase. to 232 and then to 370.
Comment: Receivables turnover ratio is shown in turn through the following
indicators such as revenue, short-term receipts, long-term receipts, average
receipts, receivables turnover and number of days payable TNG company's
income from payment of goods. First, the revenue index shows a slight
decrease from 4,618 to 4,480 in 2019 -2020 from 4,618 to 4,480 and in 2021,
it446 growth momentum after sudden increase to the recovery in the economic
market recovery after the pandemic. covid-19 disease. The short term
receivable index over 3 years shows a strong growth from 364 to 451 and a
strong growth rate to 719, showing that the company is doing very well in
controlling short-term receivables. The long term receivable index shows a
significant decrease in the 2019-2020 period from 16 to 13 and increases
sharply to 21 in 2021. The average account receivable index shows a strong
increase over the years from 190 to increase. to 232 and then to 370.
2.6.2. Day’s sales in receivables

Day sales in accounts receivables is a measure of the average number of days it

takes a business to collect payments following a sale.

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Day’s sales in receivables = 365 / Receivable turnover

Receivable turnover of TNG 24.31 19.31 14.72

Day's sales in receivables 15 19 25

The Receivable turnover index is the only indicator decreasing in this table,
showing the balance and recovering from the shrinking turnover demonstrating
TNG's low collection capacity, the signaling policy is not effective with the
figure is 24.31 in 2019 and decreases in 2020 to 19.31 and again significantly
decreases in 2021 with 14.72. Another indicator that also increased positively
is Day's sales in receivables. The day's sales increased, helping TNG create
liquidity in the production process, increase business efficiency, thereby
creating a greater supply of textiles and garments. through the years
2019,2020,2021 are 15, 19, 25 respectively.
Comment : The Receivable turnover index is the only indicator decreasing in
this table, showing the balance and recovering from the shrinking turnover
demonstrating TNG's low collection capacity, the signaling policy is not
effective with the figure is 24.31 in 2019 and Communicate in 2020 to 19.31
and Communicate again significant in 2021 with 14.72. Another indicator that
also increased positively is Day's sales in receivables. The day's sales
increased, helping TNG create liquidity in the production process, increase
business efficiency, thus creating a greater supply of textiles and garments.
through the years 2019,2020,2021 are 15, 19, 25 respectively.
2.6.3. Inventory turnover

Inventory turnover measures how efficiently a company uses its inventory by

dividing the cost of goods sold by the average inventory value during the
period.
Inventory turnover = Cost of goods sold / Average Inventory

19 20 21

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 COGS 3,825.00  3,804.00  4,717.00 

Average inventory 841 943 1092.5

Inventory turnover  4.55  4.03  4.32 

 Inventory turnover shows how many turns of inventory on average

during the period to generate sales. TNG's inventory turnover tends to
decrease from 2019-2021. It can be seen that the consumption rate of
TNG's goods in 2019 is on an uptrend, and it can be seen that TNG has
shown signs of progress compared to the company's production rate. By
2020-2021, inventory turnover will decrease compared to 2019 for the
company that is having a bad sales rate compared to the previous period.
2.6.4. Day’s sales in inventories

Days sales of inventory (DSI) is the average number of days it takes for a firm
to sell off inventory
Days sales of inventory = 365 / Inventory turnover

19 20 21

Inventory turnover 4.548156956 4.033934252 4.317620137

Days sales of inventory of TNG 80.25 90.48 84.54

Days sales of inventory of TET 110.23 120.45 90.56

Days sales of inventory of GIL 75.79 85.27 77.43

Days sales of inventory 73.24 201.3 365.89

industry

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Regarding the Day's sales in inventories section, also known as the time when
you sell out of inventory, in this section, there are 3 indicators that are
inventory turnover, days sale of inventory, days sale of inventory industry.
First, we will talk about the Inventory turnover index, it is one of the indicators
that directly reflects the revenue and development of the business, specifically
here is TNG through 3 years of 2019 2020 and 2021 for us. saw a negligible
increase and decrease only in the range of 4.0 - 4.5. Through another indicator,
Days sales of inventory is understood as the amount of time it takes to sell out
the remaining goods in stock, this indicator shows the average time in days that
a company takes to turn inventory. sales, including goods being sold, into sales,
on the days sales of inventory section of TNG company we see an increase in
the number of days remaining sold out of goods from 80.25 to 90.48 indicating
that the business is in the period 2019-2020 inventory and difficult to liquidate
shows a difficult supply problem, but in the next year 2021, the number of days
of inventory is only 84.54, showing an improvement in the adjustment and
handling of inventory of the business. Karma. In general, in the same industry,
the number of days to handle inventory of TNG is much better than that of the
same industry because the number of days in the same industry through the
years 2019, 2020, 2021 because the inventory settlement time of the industry is
very high such as 73.24 in 2019 but a sudden increase in the number of days in
2020 to 201.3 and an increasing number of days in 2021 to 365.89 (days)
shows that handling inventory and sourcing sales is a dilemma for this industry.

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, the industry needs to reduce the production of new goods to process and sell
the remaining goods in stock to ensure revenue and costs.
2.6.5. Total asset turnover

The asset turnover ratio measures the value of a company's sales or revenues
relative to the value of its assets.
Total asset turnover = Total Sales / Average  Assets

19 20 21

Total sales  4,618.00  4,480.00  5,446.00 

Total asset 3,027.00  3,555.00  4,367.00 

Average asset 2,811.00  3,291.00  3,961.00 

Total asset turnover of TNG 1.64 1.36 1.37

Total asset turnover of TET 1.25 1.02 1.15

Total asset turnover of GIL 1.57 1.14 1.48

Total asset turnover industry 0.20 0.21 0.25

The efficiency of using total assets of TNG also tends to increase in the period
of 2019-2021, however, by 2020 the revenue will decrease compared to 2019
showing a decrease in the understanding of the use of total assets. This is also a

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common difficulty for enterprises in the textile and garment industry when the
epidemic breaks out in 2020.
2.6.6. Fixed asset turnover

The fixed asset turnover ratio reveals how efficient a company is at generating
sales from its existing fixed assets.
Fixed asset turnover = Net Sales / Average Fixed Assets

19 20 21

Net sales 4,612.00  4,480.00  5,444.00 

Fixed assets 1,047.50  1,183.00  1,375.50 

Fixed assets turnover of TNG 4.40 3.79 3.96

Fixed assets turnover of TET 2.26 1.98 2.12

Fixed assets turnover of GIL 5.63 4.67 4.98

Fixed asset turn over of industry 40.76 86.53 161.99

The efficiency of using fixed assets helps to evaluate the efficiency of using
fixed assets of the business, showing how much revenue of 1 VND of assets
involved in the production and business process. This index is high reaching
4.4 in 2019 and tends to decrease in 2020 to 3.79. This is because the growth
rate of fixed assets is lower than the growth rate of revenue in 2019 but by

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2020 the increase in fixed assets relative to revenue has caused the fixed asset
turnover to decrease. lower than in 2019.
2.7. Profitability ratio

2.7.1. Gross profit margin

Gross profit margin is an analytical metric expressed as a company's net sales

minus the cost of goods sold (COGS).
Gross profit margin = (Net sales - COGS)/ Net sales = Gross profit / Net sales

19 20 21

Gross profit  787.00  676.00  727.00 

Net sales 4,612.00  4,480.00  5,444.00 

Gross profit margin of TNG 0.17  0.15  0.13 

Gross profit margin of TET 0.09 0.07 0.12

Gross profit margin of GIL 0.15 0.11 0.13

Gross profit margin of industry 0.5266 0.5444 0.5912

From 2019 to 2021, gross profit margin tends to decrease, and HVN's gross
profit margin accounts for a relatively high proportion of the industry's profit

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margin. In the years 2020 - 2021, due to the impact of the epidemic, businesses
will suffer losses, leading to a decrease in gross profit margin to 15% in 2021
and 13% in 2021. The cause of that decrease is also due to The complicated
developments of the COVID-19 epidemic in many countries around the world
affected production and supply chains, many customers moved orders from
countries affected by the epidemic to Vietnam. In the context that the domestic
and international textile and garment industry continues to be forecast to
maintain the post-pandemic recovery trend, TNG's business prospects in the
coming time will continue to be evaluated positively.
2.7.2. Net profit margin

Net profit margin measures how much net income is generated as a percentage
of revenues received.
Net profit margin = Net income / Net sales

19 20 21

Net income 292.00  201.00  288.00 

Net sales 4,612.00  4,480.00  5,444.00 

Net profit margin of TNG 0.06  0.04  0.05 

Net profit margin of TET 0.03 0.02 0.04

Net profit margin of GIL 0.05 0.03 0.04

Net profit margin of industry 0.197 0.2938 0.3936

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Looking at the breakdown, it can be seen that TNG's highest net profit margin
is 6% in 2019 and the lowest is in 2020 with 4%. The company's net profit
margin tends to fall sharply and is much lower than the industry average. In the
years 2019 - 2021, net profit margin. The company's profit after tax is low but
the company is trying to overcome and maintain a non-negative profit after tax.
2.7.3. Operating profit margin

The operating margin represents how efficiently a company is able to generate

profit through its core operations.
Operating profit margin = EBIT / Net sales

19 20 21

EBIT 230.00  154.00  232.00 

Net sales 4,612.00  4,480.00  5,444.00 

Operating profit margin of TNG 0.05  0.03  0.04 

Operating profit margin of TET 0.03 0.01 0.02

Operating profit margin of GIL 0.07 0.03 0.04

Operating profit margin of industry 0.20  0.29  0.39 

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 Profit margin from business activities of TNG tends to decrease gradually in
the period of 2019 - 2021. The highest profit margin in 2019 with 58% and the
lowest in 2020 with 3%. In general, profit margin tends to drop sharply and is
much lower than the industry average. Because very low profit leads to
inefficient business. This is also a consequence of the epidemic, which has a
negative impact on the manufacturing industry. The company needs to have
solutions to minimize the impact of the epidemic on business activities.
2.8. Market ratio

The market price ratio is an important ratio that affects the intrinsic value of a
business and the market's assessment of the firm's performance. Some market
price ratios such as: earnings per share, book value per shares, price to earning
per share, market  to book value.
2.8.1. Earning per share

“Earnings per share (EPS) is a company's net profit divided by the number of
common shares it has outstanding”.
          Earnings per share = (Net Income − Preferred Dividends)/ Common shares outstanding

19 20 21

EPS of TNG 3,539.00  2,057.00  2,511.00 

EPS of TET 1,679.63 1,256.89 1,426.46

EPS of GIL 3,089.72 2,154.34 2,757.25

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 EPS of industry 885.00  1,249.00  1,994.00 

 As we can see, TNG's EPS is twice as high as the industry index. EPS for the period of 2019
- 2020 dropped sharply from VND 3,539 to VND 2,057. By 2020 - 2021, it will increase
slightly to 2,511 VND. The reason stems from the company's inefficient operation, causing a
sharp drop in profits due to the impact of the pandemic.
2.8.2. Book value per share

Book value per share (BVPS) takes the ratio of a firm's common equity divided
by its number of shares outstanding.
          Book value per share = ( Total Equity - Preferred Equity) / Total Shares Outstanding

19 20 21

BVPS of TNG 16,368.00  15,496.00  15,780.00 

BVPS of TET 12,598.00 11,574.00 11,969.00

BVPS of GIL 18,523.00 16,743.00 17,167.00

BVPS of industry 12,701.00  13,255.00  12,958.00 

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Book value per share in 3 years 2019-2021, the highest in 2019 with 16,368 and the lowest in
2020 with 15,496. In general, the company's book value from 2019 - 2021 has a downward
trend and is much higher than the industry average in the period of 2019-2021. The company
needs to improve and increase its book value per share.
2.8.3. Price to earning per share

The price-to-earnings ratio is the ratio for valuing a company that measures its
current share price relative to its earnings per share (EPS).
Price-to-earnings ratio (P/E) = Market value per share / Earning per share

19 20 21

P/E of TNG  4.21  12.15  13.22 

P/E of TET 16.43 18.35 19.25

P/E of GIL 7.44 5.23 7.14

P/E of industry  7.75  13.48  13.53 

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TNG's market price-to-earnings are always close to the industry average. In the
three years of 2019 - 2021, investors place high expectations on the company's
growth potential. Over a 3-year period, P/E fluctuates between 4.21 - 13.22.
Because 2019 P/E will drop sharply due to lower profit compared to previous
years due to the outbreak of the disease. Then it can be seen that the stock price
in 2020 has a strong change, leading to a P/E increase of 12.15 and an increase
in 2013 to 13.22.
2.8.4. Market to book value

The book-to-market ratio helps investors find a company's value by comparing

the firm's book value to its market value.
book-to-market ratio (P/B) = Common Shareholders' Equity / Market Cap

19 20 21

P/B of TNG 0.91 1.61 2.1

P/B of TET 1.42 1.89 1.62

P/B of GIL 0.64 0.92 1.18

P/B of industry 0.62 1.45 2.44

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TNG's market-to-book value is 0.91 and 1.61 higher than the industry index in
the first 2 years of 2019-2020. By 2021, P/B is much lower than peers. The
main reason comes from the increase in stock price and increase in P/B from
0.91 to 2.1. In general, TNG's P/B is above 1, which shows investors'
expectations for the company's growth potential.
2.9. DUPONT ANALYSIS

2.9.1. ROA

Year 2016 2017 2018 2019 2020 2021

Revenue 1,888  2,489  3,613  4,612  4,480  5,444 

Net income 81  115  180  230  154  232 

Average total asset  1,728  2,036  1,205  2,811  3,291  3,961 

ROA 4.69% 5.65% 14.93% 8.18% 4.68% 5.86%

Total asset turnover 1.09 1.22 3.00 1.64 1.36 1.37

ROS 0.04 0.05 0.05 0.05 0.03 0.04

Δ ROA (total asset 0.56% 8.20% - - 0.05%

turnover) 6.76% 1.39%

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 Δ ROA (ROS) 0.40% 1.08% 0.01% - 1.13%
2.11%

Δ ROA 0.96% 9.29% - - 1.18%

6.75% 3.50%

The return on assets (ROA) ratio of TNG increased in the period 2017-2018,
especially increased sharply in 2018, then decreased sharply in 2019. To
understand the fluctuation of ROA, we separate it into 2 factors. including total
asset turnover and gross profit. In 2017, ROA increased by 0.96% mainly
thanks to total asset turnover, in 2018 ROA increased sharply by 9.29%, of
which total asset turnover helped ROA increase by 8.2%. In 2019, ROA
dropped sharply when both the total asset turnover and gross profit reduced
ROA. In 2020, ROA has a slight growth, while total asset turnover increases,
contributing positively to ROA, ROS reduces ROA by 2.11%. In 2021, thanks
to the increase in revenue and profit, both analytical factors increase. However,
the increase was less than the 2018 margin. The company needs to control costs
to bring more profit and use assets more efficiently.

2.9.2. ROE

Year 2016 2017 2018 2019 2020 2021

Revenue 1,888  2,489  3,613  4,612  4,480  5,444 

Net income 81  115  180  230  154  232 

Average total asset 1,728  2,036  1,205  2,811  3,291  3,961 

Average 477  575  712  931  1,108  1,305 

shareholder equity

ROE 17.00% 20.00% 25.30% 24.72% 13.91% 17.78%

41 | P a g e
 Capital output ratio 3.63  3.54  1.69  3.02  2.97  3.04 

Total asset turnover 1.09  1.22  3.00  1.64  1.36  1.37 

ROS 0.04  0.05  0.05  0.05  0.03  0.04 

Δ ROE (capital -0.40% - 19.82% -0.40% 0.30%

output ratio) 10.43%

Δ ROE (total asset 1.97% 13.89% - -4.14% 0.14%

turnover) 20.42%

Δ ROE (ROS) 1.43% 1.84% 0.02% -6.27% 3.44%

Δ ROE  3.00% 5.30% -0.58% - 3.87%

10.81%

Return on equity (ROE) of TNG fluctuated up and down in the period 2017-
2018 and especially fell sharply in 2020. ROE in 2017 increased mainly thanks
to total asset turnover and utilization ratio. capital use. By 2018, ROE recorded
a strong increase, both capital utilization ratio and gross profit contributed
positively to ROE, especially due to the impact from total asset turnover. In
2019, gross profit increased ROE to 0.02%, but total asset turnover caused
ROE to decrease more, so ROE decreased by 0.58%. Notably, in 2018 ROE
decreased to 10.81%, which was caused by all 3 factors. Profit in 2020
decreased from 230 billion dong to 154 billion dong, down to 33.04%, thus
leading to an abnormal decrease in return on equity. In 2021 ROE will increase
slightly by 3.87%. Looking at the analysis table, it is easy to see that the capital
use coefficient over the years has reduced its contribution to ROE. The
company needs to consider raising capital, balancing capital from borrowing
and contributed capital of owners. That proves that the Company needs to
consider the use of business investment capital to improve the efficiency of
capital use.

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