Financial Analysis

Contents

I. EXECUTIVE SUMMARY 4

II COMPANY OVERVIEW 5

2.1 Company Introduction 5

2.1.1 Business activities: 5

2.1.2 Management Board: 5

2.1.3 Ownership structure: 6

2.2 Products & Services 8

2.3 Business Strategy 9

III. INDUSTRY ANALYSIS 10

3.1 Industry Overview 10

3.1.1 Tire Manufacturing industry in the world 10

3.1.2 Tire Manufacturing industry in Vietnam 11

3.2 Five Forces Analysis 12

3.3 SWOT Analysis 13

IV ANALYSIS OF FINANCIAL STATEMENT 14

4.1 Analysis of balance sheet 14

4.1.1 Current Assets 14

4.1.2 Investments and Other Assets 14

4.1.3 Account Receivables: 14

4.1.4 Inventory: 14

4.1.5 Non-current assets: 14

4.1.6 Current liabilities: 15

4.1.7 Long-term liabilities: 15

4.1.8 Resources: 15

4.2 The analysis of Income Statement 17

4.2.1 Annual Income Statement: 17

4.2.2 Quarterly Income Statement FY2010 and FY 2009 20

4.2.3 Forcasted Income Statement FY2010 25

4.3 The analysis of Cash-flow 26

V Financial Ratio Analvsis 26

5.1 Liquidity Ratios 26

5.2 Activity Ratios 29

5.2.1 Accounts Receivable Turnover (Debtors’ turnover) ratio 29

5.2.2 Days in Sales Receivables (Day sales outstanding – DSO) 30

5.2.3 Inventory Turnover 30

5.2.4 Days Inventory Outstanding (DIO) 31

5.2.5 Payable Turnover 31

5.2.6 Total-asset-turnover ratio: 32

5.2.7 Fixed asset turnover: 32

5.3 CAPITAL STRUCTURE AND SOLVENCY RATIOS ANALYSIS (Leverage Ratios) 33

5.3.1 Debt-to-asset ratio 33

5.3.2 Debt-to-equity ratio 34

5.3.3 Times-interest-earned ratio: 35

5.3.4 Profitability Ratios 35

5.4 RETURN ON INVESTMENT RATIOS ANALYSIS 38

5.4.1 Return on assets: 38

5.4.2 Return on Equity (ROE) 38

5.4.3 Earning per share (EPS) 39

5.4.4 Price/Earning (P/E) 40

5.4.5 Dupont analysis: 40

VI Final Recommendation: 41

VII Reference 42

VIII APENDICES 43

I. EXECUTIVE SUMMARY

This report provides...