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Liquidity analysis

Data used for calculating

VND Billion 2010 2011 2012

Total Current Assets 2,328,287,599,110 2,558,532,922,412 2,289,382,509,434

Total Current Liabilities 1,045,048,288,708 1,783,559,913,116 1,353,059,965,053

Inventory 434,328,356,064 398,032,090,636 316,605,949,009

Working Capital 1,283,239,310,402 774,973,009,296 936,322,544,381

Net cash flow from operating activities (820,515,012,219) 933,111,559,008 650,348,193,938

Liquidity ratios

Current Ratio 2.23 1.43 1.69

Quick Asset Ratio 1.81 1.21 1.46

Cash Flow Ratio ( liquidity) (0.79) 0.52 0.48

Current Ratio. Through the calculated data, Kinh Do possibly has abilities to cover all current

assets involved with its responsibilities. There has been a decreasing tendency in this ratio, but it has not

indicated bad news totally. However, the increasing current liabilities in period of 2011 to 2012 in

comparison to 2010 should be considered to assure in security of payments. In 2011, the growth of

current liabilities surprisingly accounted for 70.67% , as a remarkable point in liquidity assessments, and

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this consequence mainly derived from the rises of 131.94% of borrowing and 191.9 % of employees

payable. After a-year downward period in the current ratio, this next year feature jumped up to 1.69 like a

better sign of financial health for this organization. These result aligned with to the general financial

strategic of Kinh Do as using more borrowing to gain profit and increase the ratio depending on owners

equity. Constantly, Kinh Do have been taking more capital from its partners to boost the operation of

business, but it certainly received more risks indeed.

Quick Asset Ratio. As a producer in confectionery industry, the safe ratio should exceed 2.00

point to assure the payments for lenders, but this ratio still has predominance of other competitors such as

Hai Ha or Bibica. There was a significant efforts of Kinh Do when it released more inventories year by

year, from 434,328,356,064 in 2010 to 316,605,949,009 in 2012. This aspect is assessed good, but not

enough at all.

Cash Flow Ratio ( liquidity). After witnessing a deep decrease in Net cash flow from operating

activities in 2010, however, Kinh Do immediately improved again in the next year, at loss of

820,515,012,219 VND in comparison with the growth of 933,111,559,008 VND.

Gim trong 2010 nm v

Li t hot ng u t (697.749.771)

(Gim) tng cc khon phi tr (788.888.268)

Thu thu nhp doanh nghip np (165.742.128)