1. Common Size Analysis, Trend Analysis and Financial - TopicsExpress

1. Common Size Analysis, Trend Analysis and Financial Ratio. First We do Common Size Analysis and Vertical analysis for both Balance sheet and Income statement from 2009 to 2013. There are some main points we want to show you that : +Balance sheet : Current Asset of HPS decreased 59.2% and Fix Asset decreased 25.8% from 2012 to 2013 lead to the decreasing proportion with Total Asset of Current Asset from 14.0% to 48.2% in which proportion of Inventories was 38% at 2013 which is very high, Inventories is also considered the less liquid in Current Asset so it is very risky with high Inventories. Liabilities took 39% in Total Liabilities and Equity in which 39%was Current Liabilities. Current Liabilities decrease 11,5% from 2012 to 2013. + Income Statement. Revenue of HSP increased from 2009 to 2010, but decreased from 2010 to 2012. May be due to the Real Estate crisis of Viet Nam from 2011 – 2012 lead to the decrease in Revenue and high Inventories in 2013. COGS is also a matter we want to concern because the proportion of COGS form 2009 to 2013 was very high ( over 183% of Revenue ). With this high proportion COGS will be the burden for TCM Group. It will reduce much the profit from the company while the big amount of Inventories show that if this will be continue Inventories will put HSP in a bad situation in the future. + Financial Ratios : The Current Ratio change much from 2009 to 2013. It show that HPS is not capable for paying short-term liabilities. Account Receivable Turnover of HPS increased from 2009 to 2010 ( 2.27 to 12.10) due to the bigger increase from Net Sale than AR show that the capability of HPS to collect money from customers is good. But AR Turnover decreased from 2010 to 2013 (12.10 to 3.93) show that the capability of HPS to collect money from customers is not good. Debt to Equity Ratio increased from 0.61% to 0.65% show that HPS this proportion is safe and it is bigger than the competitor and the industrial. Net Profit Margin decreased from 0.13% to -1.25% ( 2009 to 2011) so it isn’t good than the competitor and industries EPS decrease from 2009 to 2013 to -1607.64 đ per share so it is not good because if the EPS is smaller the investor can’t expect will have bigger amount of money to pay bigger dividend.