GROUP

ASSIGNMENT
Subject: Principles of Accounting
Code: ACC101
Class: MKT1707
Group members:
1. Lương Nhật Thi - SS170945
2. Lê Khắc Hảo - SS170965
3. Trần Thị Thanh Châu – SS170997
5. Huỳnh Trần Quốc Bảo - SS171015
4. Lê Võ Kiều Linh – SS171100
Lecturer: Tran Ngoc Chau

Case Study: Analyze the 2020 and

2021 Financial Statements of
SABECO.
Table of Contents
I. Overview......................................................................................................................................1
II. Quantitative.................................................................................................................................2
1. Strengths...............................................................................................................................2
1.1. Resources and finance......................................................................................................2
1.2. Trading strategy:...............................................................................................................2
1.3 Achieved many achievements...........................................................................................3
1.4 Active social activity.........................................................................................................3
2. Weaknesses..............................................................................................................................4
2.1. Foreign beer and alcohol products....................................................................................4
2.2. Product quality is unequal................................................................................................4
2.3. World-famous freshwater products..................................................................................4
2.4. Marketing strategies..........................................................................................................5
3. Recommendations to overcome weaknesses...........................................................................5
III. Financial ratios of Sabeco in 2020-2021:.................................................................................5
1. Calculation of financial ratios..................................................................................................5
2. Analysis of the performance through 2 years (2020-2021):....................................................6
2.1. Liquidity And Efficiency Ratio:.......................................................................................6
2.2. Solvency Ratio:...............................................................................................................13
2.3. Profitability ratios...........................................................................................................15
IV. Recommendations...................................................................................................................17
V. References.................................................................................................................................17

I. Overview:

Vietnamese consumers are familiar with the brand: Saigon Beer (or Bia Saigon) of Saigon Beer-
Alcohol-Beverage Corporation (SABECO). SABECO is a joint-stock enterprise in Vietnam. The
predecessor was Cho Lon Brewery belonging to B.G.I. On 06/05/2003 Saigon NGK Beer and
Alcohol Corporation SABECO was established on the basis of Saigon Beer Company.

Accordingly, the new logo of Bia Saigon products has been redesigned with the center as the
sacrosanct Dragon and Bia Saigon. Which symbolizes power, and prosperity and represents

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Vietnam in the center, the image of Saigon beer has just ensured the aesthetics and consistency
in all products of the brand.

Saigon Beer Alcohol Beverage Joint Stock Corporation’s principal activities are to manufacture
and trade beer, wine, soft drinks, and related products, including materials and packaging;
provide transportation, logistics, and warehousing services; manufacture mechanical products;
construct steel structures and provide mechanical installation services; construction and
provision of real estate services. Saigon Beer is a leading brand name in the Vietnam beer
industry with about 140 years of development. In 2017, Saigon Beer had over 142-year original
history and 40-year of brand building and development. Since that 142 milestones, the yellow
beer bubbles flow has continuously kept up the future way, always making Vietnamese proud of
their products.

With the slogan “Burst into internal strength before the games”, the unique taste of Saigon Beer
is inspiring taste combined with the spirit of Saigonese’s generosity and the rich of the Southern
land, making it an indispensable part of everyday life. During its operation, Sabeco has always
been evaluated as the industry leader in completing political tasks with high productivity,
quality, and efficiency, contributing to the economic development of the industry country.
Sabeco currently holds 40% of the beer production market share in Vietnam, distributes
throughout the country, and exports to nearly 20 countries worldwide.

Their business philosophy about continuous improvement is “We are not satisfied with the
present and are always dreaming of rising, learning, creating, and innovating to meet constantly
changing needs. Continuous learning, creativity, and innovation are our style.” The company
advances life quality through the provision of high-quality, safe and healthy beverage products
and guarantees to bring essential benefits to shareholders, customers, partners, employees, and
society.

II. Quantitative:
1. Strengths:
1.1. Resources and finance:

According to Sabeco's consolidated financial statements for the third quarter of 2022, the
company recorded net revenue in sales and service provision in the third quarter of 2022
reaching VND 8,635 billion, up 101.6% over the same period in 2021. Accumulated net revenue
in the first 9 months of 2022 reached VND 24,949 billion, up 43.6% compared to the first 9
months of 2021.

In terms of profit, the company recorded profit after corporate income tax in the third quarter of
2022 reached VND 1,394 billion, up 195.9% compared to the third quarter of 2021;
Accumulated profit after tax in the first 9 months of 2022 reached VND 4,423 billion, up 74.9%
compared to the first 9 months of 2021.

1.2. Trading strategy:

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Sabeco 4.0's transformation initiatives are a strategic initiative of this enterprise, aiming to
transform its business model through digital technology. Officially launched in 2020, SABECO

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4.0 enables businesses to improve the way they work through optimizing, standardizing and
automating processes, starting with supply chains, warehousing operations, sales and business
intelligence systems.

In addition, in the 2022 target, Sabeco also focuses on expanding the market both domestically
and internationally.
SABECO has now exported SAIGON beer products to many markets around the world,
including:
 Americas: USA, Canada, Chile, Panama...
 Europe: Germany, Russia, Denmark, France, Netherlands, UK, Sweden, Switzerland,
Spain...
 Australia: Australia, New Zealand.
 Africa: West Africa.
 Asia: China, Japan, Taiwan, Hong Kong, South Korea, Singapore, Thailand, Philippines,
Malaysia, Laos, Cambodia,...
The launch of Saigon Chill Beer continues to affirm SABECO's strategic vision to strongly
develop the brand, expand the market with improved and pioneering products and services in
accordance with the changing tastes of consumers. This is also a testament to the continuous
efforts for sustainable development and continues to bring pride to Vietnam.

1.3 Achieved many achievements:

In 2019, SABECO's Saigon Special, Saigon Lager Beer and Beer 333 products have excellently
won 01 championship and 03 medals at the prestigious International Beer Cup 2019 from Japan.

In 2021, Saigon Beer with Saigon Gold Beer, Saigon Chill Beer and Saigon Lager Beer has
excellently won Gold and Silver Medals respectively; Lac Viêt Beer, Saigon Special Beer and
Saigon Export Beer won the Bronze Medal. at the 2021 Australian International Beer Awards
(AIBA).

With 26 breweries spread across the country, 10 trading companies, distribution and sales
network spread across the country, Sabeco is dominating the Vietnamese beer market. Sabeco
owns a series of favorite beer brands such as: Beer 333, Saigon Special Beer, Saigon Export
Beer, Saigon Lager Beer, Saigon Chill Beer, Lac Viet Beer, Saigon Gold Beer.

1.4 Active social activity :

SABECO's leadership is also committed to sustainable development around four main

objectives: Consumption, Conservation, Country and Culture, including social activities,
community support and environmental protection.

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In order to launch the implementation of the Prime Minister's direction on the program "Million
Welfare Bags" to send to disadvantaged households, SABECO has also donated thousands of
gift bags with a total value of up to billions VND.

SABECO also accompanied the Ho Chi Minh Communist Youth Union to launch the "Million
Stars" program, with the goal of contributing to supporting small business households, the food
and beverage industry in Ho Chi Minh City to soon recover and stabilize in the new
normal, thereby spreading the spirit of "going up together" during the pandemic.

Slogan "Saigon Beer - the pride of Vietnam" One of the many meaningful programs of SABECO
is the fact that this enterprise cooperates with the Central Vietnam Youth Union to implement the
program "Relay Vietnam" with the goal of energizing the country's frontline forces, who are
working relentlessly to prevent the COVID-19 pandemic and share difficulties with local
households.

2. Weaknesses:

2.1. Foreign beer and alcohol products:

Vietnam's top beer market features several world-famous beer firms like Heniken, Tiger, Zorok,
and recently also Budweiser beer which is also well developed, with these foreign firms
outperforming their capital size, management skills, business experience, management
experience, marketing and a team of trained personnel.

Youths in recent years have become more popular with alcohol than beer because of the strong
feeling that alcohol makes it seem strange. And rum, whiskey and so on. With its unique, new
and distinctive design it could be combined to produce more cocktails that attract young people
than traditional sabeco wines.

2.2. Product quality is unequal:

The products produced in each region may be "localised". For example, as in technical
technology, the management process in each factory receiving machinations to Sabeco in each
region is different resulting in a lack of consistency and asynchronism. On the other hand, as we
know, about 90% of the beer is made of water, so water plays an important role in the
production. However, the conditions and quality of water in each region are different, so without
tight control, a product can lose its own identity while also allowing the quality to be unequal.

2.3. World-famous freshwater products:

Since 2003, Sabeco has assumed the new vie company, Xuwang Beverage Company. But since
then, there have been no improvements in the product, no new investment in the product. So it's
hard to compete with the big guys in soft drinks like Pesi, Coca-Cola.

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 2.4. Marketing strategies:

Are still not very effective, actually quite widely on social media platforms such as ads in
youtube, facebook,web,...
Real estate investment activities have no clear long-term strategy.
The distribution system is not yet strong in the north.

3. Recommendations to overcome weaknesses:

- Improve , and changed products for fresh water and alcohol. There needed to be a drastic
change in flavor, and design. Continuously update youth interests (future leads).
- Improve marketing strategies on digital platforms, and finance large programs to reach
customers.
- Strengthening and extending the distribution channel system.
- Promoting customer care campaigns, community-oriented programs, and as an annual effort to
strengthen and enhance visibility of Saigon beer.
- Pay special attention to the needs and expectations of the customers. Through the collection of
customer feedback, companies need to regularly implement and improve quality and
measurement and analysis systems in order to enhance customer satisfaction.
- Continuous improvement in procedures, standards, controls, testing... By high standards.
Ensuring safety and quality in use is also seen as Saigon Beer's commitment to customers.

III. Financial ratios of Sabeco in 2020-2021:

1. Calculation of financial ratios:

Financial ratios of Sabeco in 2020-2021

Saigon Beer Alcohol and Beverage Joint Stock Corporation (SABECO)

2020 2021
Cash 844.203.088.387 685.368.712.799
Account receivable
568.608.377.917 590.846.416.109
(Beginning a year)
Account receivable (Ending a
ASSET 590.846.416.109 467.956.130.071
year)
Average account receivable 579.727.397.013 529.401.273.090
Inventory (Begining a year) 1.967.137.719.907 1.446.832.994.933
Inventory (Ending a year) 1.446.832.994.933 1.668.001.734.209

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 Average inventory 1.706.985.357.420 1.557.417.364.571
Current assets 19.513.381.452.440 22.877.033.322.264
Noncurrent asset 7.861.591.322.918 7.609.991.050.161
Total assets (Beginning a
26.962.476.094.045 27.374.972.775.358
year)
Total assets (Ending a year) 27.374.972.775.358 30.487.024.372.425
Total average assets 27.168.724.434.702 28.930.998.573.892
Current liabilities 5.173.043.219.872 7.258.020.535.153
LIABILITIES
Total debt/liabilities 6.159.696.384.430 7.892.238.669.264
Net sales 27.961.323.837.011 26.373.746.293.858
Cost of good sold 19.460.229.052.562 18.765.181.482.365
EQUITY Gross profit 8.501.094.784.449 7.608.564.811.493
Net income 4.936.845.970.254 3.929.305.547.238
Total Equity 21.215.276.390.928 22.594.785.703.161
Current ratio 3,77 3,15
Acid-Test ratio 3,49 2,92

LIQUIDITY AND Account receivable turnover 48,23 49,82

EFFICIENCY Inventory turnover 11,40 12,05
RATIO Days' Sales Uncollected 7,71 6,48
Days’ Sales in Inventory 27,14 32,44
Total asset turnover 1,03 0,91
Debt Ratio 0,23 0,26
SOLVENCY Debt-to-equity ratio 0,29 0,35
Equity Ratio 0,77 0,74
Profit margin ratio 0,18 0,15
PROFITABILITY
Gross margin ratio 0,30 0,29
RATIO
Return on total assets (ROA) 0,18 0,14

(Source: Consolidated financial report of Sabeco in 2019, 2020 and 2021)

2. Analysis of the performance through 2 years (2020-2021):

2.1. Liquidity And Efficiency Ratio:

- Current ratios = Current assets / Current liabilities:

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 CURRENT RATIO
2020 2021 2020/2021
Current Assets 19.513.381.452.440 22.877.033.322.264
SABECO Current Liabilities 5.173.043.219.872 7.258.020.535.153
Current ratio 3,77 3,15 19,68%
Current Assets 4.500.763.443.175 4.341.875.502.440
HABECO Current Liabilities 1.746.185.904.092 2.104.987.465.003
Current ratio 2,58 2,06 24,96%

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.

In the period of 2020-2021, the current ratio of SABECO is quite high but tends to decrease, in
2020 the current ratio is 3.77 but will decrease to 3.15 in 2021. decrease by 0.62 because the
Current asset increased by 1.17 current liability increased by 1.4 so the decrease was caused by
greater liability than the current asset, indicating that the company's solvency is decreasing and it
is likely that in the future there will be financial difficulties. But as a general rule, the minimum
Ratio should be 2.0, so in the next 3 years Sabeco may have a current ratio greater than 2,
showing that the company has enough cash or accounts safe investment to be able to better use in
business activities.

In the year 2020-2021, SABECO's Current Ratio is decreasing (3.77-3.15) by 19.68%, and
HABECO (2.58-2.06) by 24.96%, showing that the current liability of the two companies are
growing faster than current assets, affecting the short-term payouts of the companies, which are
decreasing in efficiency. In general, SABECO is currently better than HABECO because its
current asset is 3 times larger than its current liability which means that in the short-term,
SABECO will not have to encounter financial difficulty, otherwise HABECO predicts that in
2022 will have to struggle with some financial difficulty.

- Acid-test ratio (Quick ratio) = (Current assets - Inventory) / Current liabilities:

The quick ratio is a financial ratio used to measure the ability of a business to raise current assets
to pay its short-term liabilities immediately.

ACID-TEST (QUICK)

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 2020 2021 2020/2021
Current Assets 19.513.381.452.440 22.877.033.322.264
Current Liabilities 5.173.043.219.872 7.258.020.535.153
SABECO
Inventory 1.446.832.994.933 1.668.001.734.209
Acid-test ratio 3,49 2,92 19,52%
Current Assets 4.500.763.443.175 4.341.875.502.440
Current Liabilities 1.746.185.904.092 2.104.987.465.003
HABECO
Inventory 597.223.915.582 552.768.030.357
Acid-test ratio 2,24 1,80 24,1%

Quick ratio is calculated by subtracting inventory from current assets and then divided for
current liabilities. During the period of 2020-2021, the acid test coefficient of 3.49 and 2.92
respectively, a decrease of 19.52% of SABECO, tends to decrease because the ratio of Current
liabilities (1.4)
> the ratio of Current assets (1.1) shows that the company may have waning revenue growth and
struggle to manage working capital and due to lower creditor maturities or higher receivables
maturities. but still greater than 1, so SABECO still ensures very good debt repayment ability
without selling inventory.

With SABECO, when removing the effects of inventory, prepaid expenses and other illiquid
current assets, the company is further to the point of safety. SABECO's Acid-test ratio is 3.49
and 2.92, respectively for the period of 2020-2021. In which, Acid-test ratio has decreased by
19.5%, while HABECO's has decreased by 24.1% (2.24 - 1.8). It can be seen that HABECO is
having a weak revenue growth partly because the demand for beer in Hanoi is less than in
Saigon, partly due to the Covid-19 epidemic, so the revenue is less, leading to the asset Due to
low liquidity, short-term payment ability is also worse than SABECO.

- Days' Sales Uncollected = (Accounts receivable / Net sales) x 365:

Days' Sales Uncollected

2020 2021 2020/2021
Account Receivable 590.846.416.109 467.956.130.071
SABECO Net Sales 27.961.323.837.011 26.373.746.293.858
Days' Sales Uncollected 7,71 6,48 18.98%
HABECO Account Receivable 384.457.518.077 378.139.968.035

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 Net Sales 7.452.592.109.444 6.950.539.185.083
Days' Sales Uncollected 18,83 19,86

Low Days' Sales Uncollected means it takes less days for the company to collect outstanding
receivables. Days of uncollected sales is a liquidity ratio that most investors use to estimate how
long a company will collect its receivables. The smaller this ratio, the better for the company.
However, in the period 2020-2021, this rate has decreased by 18.98% (from 7.71 to 6.48 days).

A low DSU means it takes a company fewer days to collect its outstanding receivables. This is a
good thing because the company collects money from customers earlier and shows this is good
revenue and bad debts are cleared.

In 2020, HABECO's DSU (18.83) is 11.12 higher than SABECO's (7.71) and in 2021, HABECO's
DSU (19.86) is 13.38 higher than SABECO's (6.48). Overall, in both years, HABECO's time is
always higher than SABECO's, which proves that the high ratio indicates that the company is
taking longer to collect money, which can lead to cash flow problems. And the value of
SABECO is always lower, showing that the company is efficient in collecting receivables. On
the other hand, a higher value indicates a weak collection efficiency.

- Day’s Sales of Inventory (DSI) = (Ending inventory / Cost of goods sold) x 365:

Days Sales of Inventory

2020 2021 2020/2021
Ending Inventory 1.446.832.994.933 1.668.001.734.209
SABECO Cost of goods sold 19.460.229.052.562 18.765.181.482.365
Day's Sales of Inventory 27,14 32,44 19,5%
Ending Inventory 597.223.915.582 552.768.030.357
HABECO Cost of goods sold 5.473.064.507.898 5.254.288.802.691
Day's Sales of Inventory 39,83 38,40 -3,6%

Day’s Sale of Inventory indicates the length of time a company's cash is stuck in liquidity
because of unsold inventory, so the smaller the DSI, the better. A smaller number indicates that a
company is more efficient and regularly sells off its inventory, which means quick turnover leads
to higher profit potential.

However, in 2020-2021, SABECO's DSI index of 27.14 and 32.44 increased by 1.19 compared
to the previous year, indicating that the company may be struggling with large inventories,
high
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volume, and may have overinvested. It is also possible that the company can keep inventory
levels high to achieve high order fulfillment rates.
From 2020-2021 SABECO's DSI rose to 19.5%, suggesting that the epidemic affected the
company's inventory raising. But HABECO's DSI is generally higher than That of SABECO, but
although HABECO's DSI COVID-19 pandemic tends to drop 3.6%, inventory is paid off more
quickly than SABECO. Because HABECO has 26 first-class distributors, while SABECO has
only 10 first-class distributors, this is also a weakness of SABECO.

- Total asset turnover = (Net sales / Average total assets)

Total Asset Turnover

2020 2021 2020/2021
Net sales 27.961.323.837.011 26.373.746.293.858
SABECO Total average assets 27.168.724.434.702 28.930.998.573.892
Total Asset Turnover 1,03 0,91 -11,6%
Net sales 7.452.592.109.444 6.950.539.185.083
HABECO Total average assets 7.728.129.349.578 5.135.524.329.081
Total Asset Turnover 0,96 1,35 40,6%

The higher the total asset turnover, the better the company is doing, generating more revenue per
dollar invested in assets and vice versa. This low index indicates that the business is not using
assets efficiently or has management or internal problems.

Here in 2020 Total asset turnover is 1.03 reduced to 0.91 in 2021, showing that net sales
decrease gradually between 2 years, showing that after 1 year, the company's revenue has
decreased because of the Covid epidemic has developed strongly. in 2021 should affect the
company's revenue.

Total asset turnover is calculated by taking net sales divided to average total assets. Typically
this indicator increases for the higher asset efficiency, the enterprises invest in reasonable asset
procurement plans. On the other hand, if this index is low, it shows that procurement plans,
investments in assets are not yet effective to generate revenue and cash flows for the business. In
SABECO, total Asset Turnover occurred in 2020, dropping from 1,03 to 0,91 11.6% by 2021.
The reverse rose 40.6% from 0,96 to 1,35 in HABECO. That HABECO has a better asset use
strategy than SABECO.

- Inventory turnover = Cost of goods sold / Average Inventory:

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 Inventory turnover
2020 2021
Cost of goods sold 19.460.229.052.562 18.765.181.482.365
SABECO Average inventory 1.706.985.357.420 1.557.417.364.571
Inventory Turnover 11,40 12,05
Cost of goods sold 5.473.064.507.898 5.254.288.802.691
HABECO Average inventory 617.890.451.424 574.995.972.970
Inventory Turnover 8,86 9,14

It is calculated by dividing cost of goods sold by the company's average inventory. This index
shows how much 1 dollar invested in inventory contributes to the generation of sales revenue.
In 2020, Inventory turnover is 11.4. This means that for every 1 dollar invested in inventory,
11.4 dong of revenue is generated. In 2021, inventory turnover has a means that for every 1
dollar invested in inventory will generated a revenue value of 12.05; which increased to 1.05
compared to 2020.

An increase in inventory turnover indicates good inventory utilization, the company is selling
fast, and the inventory is not stagnant.

2020 is a year when the economy is heavily affected by the Covid epidemic, but SABECO still
has a high Inventoryt urnover index, proving that the company has really effective inventory
management measures in times of pandemic.

SABECO's inventory turnover continuously increased from 2017 to 2019, thanks to a decrease in
inventory, but in 2020, inventory turnover decreased to 11.4 due to the impact of the Covid-19
pandemic. Although SABECO has actively reduced inventory turnover to adapt and respond to
the pandemic, it still needs to maintain a sufficient accumulation level to promptly supply
products when the pandemic passes. Compared to HABECO, HABECO's inventory turnover is
2.54 turns lower than SABECO's. However, due to the impact of the Covid-19 epidemic, both
SABECO and HABECO's inventory turnover have tended to decrease in 2020.

In 2021, there has been significant growth compared to 2020 for both SABECO (12,05) and
HABECO (9,14). Specifically, SABECO's inventory for the year increased compared to last
year. And 2.91 times higher than HABECO, HABECO's inventory turnover is 9.14, a slight
increase compared to 2020's 0.28, the reason is that the decrease in inventory is faster than the
growth rate. of cost of goods sold. The prolonged distancing situation has seriously affected the
consumption of finished products of HABECO and SABECO, so in 2021, both companies will
be more cautious in stockpiling raw materials inventories than in previous years.

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- Accounts receivable turnover = Net Sales / Average Account Receivable:

Accounts receivable turnover

2020 2021 2021/2020

Net sales 27.961.323.837.011 26.373.746.293.858 -0.6%

Average account -0.9%

SABECO receivable 579.727.397.013 529.401.273.090

Accounts receivable
48,23 49,82
turnover
Net sales 7.452.592.109.444 6.950.539.185.083 -0,7%
Account Receivable 379.486.519.384 381.298.743.056 0.04%
HABECO
Accounts receivable
19,64 18,23
turnover

The accounts receivable turnover ratio is an accounting calculation that measures the efficiency
of collecting receivables and accounts receivable from customers in a company or business.

According to the data table, the period 2020 - 2021 has coefficients of 48.23 and 49.82
respectively, showing that debts are recovered with good efficiency year by year. This is good
because net sales in 2021 decreased by 0.6% and average receivables decreased by 0.9%
showing a decrease in net sales < average receivable

A high receivables turnover ratio shows the ability to effectively collect receivables and debts
from customers. A high receivables turnover ratio can also be a sign that a business is operating
primarily on cash.

In 2020-2021, SABECO's receivable turnover ratio is 48.23 and 49.82 respectively, increasing
by 3%. HABECO was 19.64 and 18.23 respectively, down 7%. It shows that SABECO's debt
collection ability is 2.5 times better than HABECO's. SABECO is maintaining a stable customer
group. At the present time, it is undeniably a good sign. However, HABECO's ratio is currently
very low and gradually reducing the number of times receivables are converted into cash is very
low, the recovery speed of customer debts is slow, cash flow has not been utilized optimally.
HABECO must amend its sales policy and ability to control cash flow.

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 2.2. Solvency Ratio:

- Debt Ratio = Total liabilities / Total assets:

DEBT RATIO
2020 2021 2021/2020
Total liabilities 6.159.696.384.430 7.892.238.669.264 28.1%
SABECO Total assets 27.374.972.775.358 30.487.024.372.425 11.4%
Debt ratio 0,23 0,26 15%
Total liabilities 1.948.544.585.402 2.252.851.201.633 15.6%
HABECO Total assets 7.684.082.600.975 7.087.729.500.362 -7.76%
Debt ratio 0,25 0,32 25.3%

The company's debt to capital is one of the most important factors in getting a loan from a bank
as well as assessing the company's loan potential to be able to get a loan quickly. Based on the
data table of SABECO Group in 2021 compared to 2020, it can be easily seen that the index has
increased to 0.03. This shows that total debt has increased, but total capital has also increased.
And the figure of 0.26 of the year is still within a safe level (below 50%). And that proves that
the majority of the group's assets are fully owned (financed through the company's own equity,
not debt).

During the period 2020-2021, Sabeco's total debt increased by 28.1% while total assets increased
by 11.4%. The above indicators have directly caused SABECO's total debt-to-assets ratio to
increase slightly by about 15%. For HABECO, total debt has increased to 15.6%, the percentage
increase is less than that of SABECO, however, total assets are tending to decrease compared to
rival SABECO, total assets of HABEO have decreased by 7.76%, VND also directly affected the
DEBT RATIO index, which increased sharply by about 25.3%. Based on the data table, we can
see that SABECO has better asset management than HABECO as well as the loan potential of
SABECO is higher than HABECO.

- Debt-to-equity ratio = Total liabilities / Total equity:

DEBT TO EQUITY RATIO

2020 2021 2021/2020
Total liabilities 6.159.696.384.430 7.892.238.669.264 28.1%
SABECO
Total Equity 21.215.276.390.928 22.594.785.703.161 6.5%

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 Debt to equity 0,29 0,35 20.3%
Total liabilities 1.948.544.585.402 2.252.851.201.633 37.1%
HABECO Total Equity 5.735.538.015.573 4.834.878.298.729,00 -15.7%
Debt to equity 0,34 0,47 37.1%

Different from Debt Ratio, Debt-to-equity ratio shows the ability to mobilize capital from
investors to supplement its production and business activities, thereby promoting the
development and expansion. In the period 2021 compared to 2020, the index has increased from
0.29 to 0.35, the index shows that the corporation has mobilized capital to be able to supplement
production. However, the index increased only about 0.06, showing that the group is still
completely independent of debt capital and uses most of the group's capital.

Based on the index, we can easily see that HABECO (37.1%) has a higher tendency to borrow
than SABECO (28.1%). Borrowing is absolutely necessary for a business, however, for
SABECO, total equity has increased momentum while in HABECO, total equity has decreased
sharply (15.7%). This directly causes HABECO's Debt to equity index to increase stronger than
that of SABECO, the high debt plus a decrease in equity may make the business difficult in the
near future. As for SABECO, the growth index in both shows the company's business efficiency.

- Equity Ratio = Total Equity / Total Asset:

EQUITY RATIO
2020 2021 2021/2020
Total Equity 21.215.276.390.928 22.594.785.703.161 6.5%
SABECO Total assets 27.374.972.775.358 30.487.024.372.425 11.4%
Equity Ratio 0,77 0,74

This index represents the shareholder equity to total assets of the corporation, In the Equity Ratio
section of 2021 compared to 2020 has decreased from 0.77 to 0.74. Based on the index, we can
see that total equity in 2021 has increased by 6.5% compared to 2020 while total assets at the end
of 2021 have increased by 11.4% compared to 2020. This shows the growth rate of Total assets
decreased by 1-2% compared to the increase in shareholder's capital.

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 2.3. Profitability ratios:

- Profit margin ratio = Net Income / Net Sales:

PROFIT MARGIN RATIO

2020 2021 2021/2020
Net income 4.936.845.970.254 3.929.305.547.238 -20.4%
SABECO Net sales 27.961.323.837.011 26.373.746.293.858 -5.7%
Profit Margin 0,18 0,15 -15.7%
Net income 660.588.740.136 324.172.819.885 -51%
HABECO Net Sales 7.452.592.109.444 6.950.539.185.083 -6.8%
Profit Margin 0,09 0,05 -47.7%

Profit margin ratio is a number intended solely to measure the profitability of a business.
Thereby can be profit after deducting all kinds of different expenses. The profit index for 2021
has decreased from 0.18 to 0.15 compared to 2020 (down 15.7%). The total revenue of 2021 has
decreased by 5.7% compared to 2020 and the income of the business in 2021 has decreased by
20.4% compared to 2020. With the reduction of the above 2 indicators, the profit earned from the
decrease.

In the period of 2020-2021, due to the heavy influence of the service collection on beer and wine
in general as well as SABECO and HABECO in particular. The revenue of the business has been
directly affected, for SABECO, the index of 2021 has decreased by 5.7% compared to 2020
creating a 20.4% decrease in dong profit, while for HABECO, the revenue has decreased by 6
.8% but has a strong impact on profits, HABECO's profit has decreased by 51% compared to
2020, which also leads to the fact that the Margin Margin index has decreased to 47.7% (down 2
times). compared to SABECO). We can also see that SABECO's inspection during the epidemic
season is more effective than HABECO's.

- Gross Profit margin ratio = Gross Profit / Net Sales:

GROSS PROFIT MARGIN RATIO

2020 2021 2021/2020
Gross profit 8.501.094.784.449 7.608.564.811.493 -10.5%
SABECO
Net sales 27.961.323.837.011 26.373.746.293.858 -5.7%

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 Gross Margin Ratio 0,30 0,29 -5.2%
Gross profit 1.979.527.601.546 1.696.250.382.392 -14.4%
HABECO Net Sales 7.452.592.109.444 6.950.539.185.083 -6.8%
Gross Margin Ratio 0,27 0,24 -8.2%

Gross profit margin is one of the prerequisites for considering the profitability of a business.
Based on the data table of SABECO, the Gross margin ratio in 2021 has decreased by 0.01
compared to 2020 (down 5.2%). The decrease in profit margin is due to the direct influence of
Net sales (down 5.7% compared to 2020) and Gross profit (decrease of 10.5%).

The gap in revenue and profit between SABECO and HABECO is getting bigger and bigger.
Due to the impact of the COVID-19 pandemic (2020), however, the profit margin of SABECO
and HABECO did not have a difference between the values between 0.30 and 0.27. In 2021,
HABECO's gross profit margin is 0.24 while SABECO's gross profit margin is 0.29, the value
has decreased compared to 2020. Part of the reason is still affected by the epidemic. The
company is still heavily affected.

- Return on assets (ROA) = Net Income / Average total assets:

RETURN ON ASSETS (ROA) RATIO

2020 2021 2021/2020
Net income 4.936.845.970.254 3.929.305.547.238 -20.4%
SABECO Total average assets 27.168.724.434.702 28.930.998.573.892 6,5%
Return on assets 0,18 0,14 -26.3%
Net income 660.588.740.136 324.172.819.885 -51%
HABECO Total average assets 7.728.129.349.578 5.135.524.329.081 -33.6%
Return on assets 0,09 0,06 -26.2%

This ratio directly reflects the relationship between profit and to total assets of the business. It is
a financial ratio that shows how efficiently a company uses its assets. In 2021 decreased by
26.3% compared to 2020, which shows that the efficiency of using assets of enterprises to
generate profits is on a downward trend. In the period 2020-2021, the total assets of the
enterprise increased by 6.5%, however, the profit decreased by 20.4%. This shows that the
company's goods are showing signs of inventory. This has directly affected the ROA of the
enterprise.

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In 2020, profit after tax on total assets of HABECO (0.09) and SABECO (0.18) gradually
decreased over the years and by 2021, HABECO (0.06) and SABECO (0.14) still high compared
to the industry average. However, SABECO's ROA ratio is still nearly twice higher than
HABECO's. In general, the profitability of both is good and over the years is higher than the
industry average, although in 2020, due to the strong impact of the Covid-19 epidemic,
SABECO and HABECO suffered many negative impacts. Over the years in terms of capital,
assets and sales revenue also decreased accordingly, but overall, the two companies still
achieved quite impressive ROA.

IV. Recommendations:

- The company should probably proceed with caution and the next step would be to determine
how and how quickly more capital can be raised.
- Reducing inventory levels makes more cash flow, and businesses have an additional source of
capital to invest in other things, such as upgrading facilities; building management software;
improving employee experience;…
- Every item in stock represents the amount of capital that the business has spent. And this
capital includes not only the initial purchase cost, but also the cost of personnel, utilities, and any
other costs in the operating process. So cutting all those costs is cutting inventory.
- Increase purchase demand: Stimulate purchase demand with marketing campaigns and
promotions,...

V. References:

Báo cáo tài chính HABECO Tổng Công Ty cổ phần Bia - rượu - nước Giải Khát Hà Nội.
Available at: https://www.habeco.com.vn/default.aspx?
page=shareholder&do=year&category_id=c47d2252- a936-429a-9b9b-d2cd75e3489a#
(Accessed: November 7, 2022).
Bảng tính số liệu (2022) Google Sheets: Sign-in. Google. Available at:
https://docs.google.com/spreadsheets/d/1YW0emvRdYrhFN3dVerrOhIusQXX7WPYcRQNu7M
SYQ-8/edit#gid=0 (Accessed: November 7, 2022).
Minh Thu. (2022). Thu nhập người dân Việt Nam tăng 40% trong 10 năm, trung bình đạt 4.000
USD/năm. vietnambiz.vn. Available at:
https://vietnambiz.vn/thu-nhap-cua-nguoi-dan-viet-nam-tang-40-trong-10-nam-qua--
2022421155318769.htm (Accessed: November 7, 2022).

Sabeco. (2022) Báo cáo tài chính hợp nhất quý 3 năm 2022. Available at:
https://www.sabeco.com.vn/Data/Sites/1/media/co%20dong/bao%20cao%20tai%20chinh/2022/2
1-10-2022/1/Q3FS%20-%20CONSO%20-%20VN%20(REVISED).pdf (Accessed: November 7
2022).

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Saigon Beer - Overview (no date) SABECO. Available at:
https://www.sabeco.com.vn/en-US/saigon-beer-center-trading-joint-stock-company (Accessed:
November 11, 2022).

Srivastav, A.K. (2022) Days sales uncollected, WallStreetMojo. Available at:

https://www.wallstreetmojo.com/days-sales-uncollected/
(Accessed: November 7, 2022).

Vietstock (2021). Available at:

https://static2.vietstock.vn/data/HOSE/2020/BCTN/VN/BHN_Baocaothuongnien_2020.pdf
(Accessed: November 7, 2022).

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