BỘ GIÁO DỤC VÀ ĐÀO TẠO

TRƯỜNG ĐẠI HỌC KINH TẾ QUỐC DÂN

BÀI TẬP LỚN MÔN PHÂN TÍCH BÁO CÁO TÀI CHÍNH

Topic: If you are a potential investor and expect to buy a listed

company’s stock, you are required to analyze its financial statements
for this purpose

Group :7
Members : Dong Quang Son -112191315
Vu Nhat Minh - 11213985
Pham Duc Kien - 11219307
Pham Diem Trang - 11219322
Class : Accounting CFAB 5

Hà Nội – 11/2023

1
INTRODUCTION...............................................................................4
CONTENT............................................................................................5
I. Company introduction...............................................................................5
1. History of formation and development.....................................................................5
2. Organizational structure............................................................................................7
3. Achievements...............................................................................................................8
II. Related parties............................................................................................9
1. External environment:................................................................................................9
i. Suppliers...............................................................................................................9
ii. Customers.............................................................................................................9
iii. Society................................................................................................................9
iv. Government.........................................................................................................10
v. Shareholders.......................................................................................................11
vi. Creditors..............................................................................................................11
2. Internal environment................................................................................................11
i. Workers...............................................................................................................11
ii. Managers............................................................................................................11
iii. Owners.............................................................................................................12
III. Analyzing and evaluating financial situation.........................................12
1. Overall assessment of fluctuations in growth rate of revenue, profit and total
assets over the 3-year period of FPT (2020-2022).........................................................12
i. Overview of the asset of FPT in 2020-2022.......................................................13
ii. Overview of revenue and profit in period 2020-2022........................................13
2. General assessment of the fluctuations in liabilities and equity over the 3-year
period (2020-2022)............................................................................................................14
IV. Analyze financial indicators....................................................................15
1. Solvency index group................................................................................................15
i. Current ratio.......................................................................................................15
ii. Quick ratio..........................................................................................................16
2. Performance index group.........................................................................................17
i. Accounts receivable turnover.............................................................................17
ii. Inventory turnover..............................................................................................17
iii. Average debt collection period.......................................................................18

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 iv. Average repayment period..................................................................................18
v. Total asset utilisation efficiency.........................................................................19
vi. Efficiency in using equity capital.......................................................................19
3. Group of debt indicators..........................................................................................20
i. Debt to Equity ratio............................................................................................20
ii. Debt to Asset ratio...............................................................................................20
iii. Interest payment ratio.....................................................................................21
4. Profitability ratio group...........................................................................................21
i. Gross profit margin............................................................................................21
ii. Operating profit margin.....................................................................................22
iii. Net profit margin............................................................................................23
iv. Earning per share (EPS)....................................................................................23
v. Return on assets (ROA)......................................................................................24
vi. Return on equity (ROE).....................................................................................25
5. Market index group..................................................................................................25
i. Price to Earnings ratio (P/E).............................................................................25
ii. Book value of each share...................................................................................26
Conclusion..........................................................................................28
Reference............................................................................................29

3
 INTRODUCTION
The information technology industry is expected to continue to grow strongly because the
wave of digital transformation continues to take place strongly at a very fast pace, technology
investment is considered an inevitable need, helping to improve efficiency. operational
activities and minimize production costs in all areas.
According to Saigon Thuong Tin Bank Securities Joint Stock Company (SBS), in 2022,
revenue of the information technology industry will increase more than 400 times compared to
the early 2000s, estimated at an average of 38% during the 20 last year. Currently, the
information technology industry in Vietnam has contributed 14.4% to the country's
GDP.Thanks to this step, Vietnam's information technology industry has had a certain position
in the world. Not only that, with software services, Vietnam ranks first in Southeast Asia.
Digital transformation has been widely applied in most businesses around the world in general
and in Vietnam in particular.
The Ministry of Information and Communications is drafting the Prime Minister's decision
approving the National Strategy on developing Vietnam's digital technology enterprises to
2025 and orientation to 2030. Regarding the distribution and retail segment, analysis and
evaluation organizations as well as distributors all believe that the information technology
product market in Vietnam still has a lot of potential in both the medium and long term. The
international market is also opening up huge opportunities for software and information
technology service businesses.
Benefiting from industry factors, some businesses have continuously grown over the years,
such as the case of FPT Joint Stock Company (stock code: FPT). According to FPT, the IT
services segment in foreign markets continues to grow impressively in the two markets Japan
(up 41%) and Asia - APAC (up 50%). The Japanese market witnessed revenue growth in Yen
reaching 51%, driven by large demand for IT spending in this market, especially spending on
digital transformation, after a long period of being affected. by Covid-19. The volume of
newly signed orders in foreign markets reached VND 13,729 billion, equivalent to a growth of
35%. For non-professional investors who have a lower risk appetite and expect low returns
from the stock market, I think FPT is an extremely potential stock if you hold it for the long
term.

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 CONTENT
I. Company introduction

Company name FPT Joint Stock Company (FPT Group)

Company type Joint Stock Company
Established time September 13, 1988
Main fields of activity 3 main fields include: Technology,
telecommunications and education.
Time to start listing stock codes On December 13, 2006, it officially participated in
stock trading on the Ho Chi Minh City stock
exchange
with the stock code FPT.
rs  8 direct subsidiaries
 2 direct affiliated companies

After more than 30 years of development, FPT is one of the leading IT companies in
Vietnam and in the Global Top 100 for Trust Services. Currently, FPT Group is ranked 17th in
the Top 500 largest private enterprises in Vietnam, according to VNReport.
With the core fields of Technology and Telecommunications, FPT currently owns
telecommunications infrastructure covering 63 provinces and cities in Vietnam and is
constantly expanding its operations to the global market, with a system of 46 offices in 22
countries in the world.
Throughout its operations, FPT has continuously strived with the highest goal of bringing
customer satisfaction through the most optimal products, services and technology solutions.
At the same time, FPT is constantly researching and pioneering new technology trends,
integrating with common global technology trends, contributing to affirming and enhancing
the position of Vietnamese businesses in the international market.
1. History of formation and development
On September 13, 1988, FPT was established as a Food Technology Company operating in
the fields of drying technology, information technology, and automation technology. (The
original word FPT originally meant The Food Processing Technology Company - Food
Technology Company).
On October 27, 1990, it was renamed The Corporation for Financing Promoting
Technology - Technology Investment and Development Company with core business
activities being IT.
In 1998, FPT became one of the first four Internet service providers in Vietnam, creating a
breakthrough development for this field in Vietnam.

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 In April 2002, FPT became a joint stock company.
On September 8, 2006, the Prime Minister of Vietnam signed a decision to establish FPT
University under FPT Company. The school's principal is Dr. Le Truong Tung, and the
Chairman of the Board of Directors is Associate Professor, Dr. Truong Gia Binh.
On October 24, 2006, FPT announced its decision to issue additional shares to two strategic
investors, Texas Pacific Group Investment Fund (TPG) and Intel Capital. FPT received an
investment of 36.5 million USD through investment funds TPG Ventures and Intel Capital.
On November 18, 2006, Microsoft Corporation and FPT company signed a strategic
alliance agreement.
On December 13, 2006, FPT shares were listed on the Ho Chi Minh City Stock Exchange
(HoSE).
On December 25, 2006, the Chairman of the Board of Directors of FPT Company signed a
decision to merge FPT Information System Company Limited (FIS), FPT Software Solutions
Company Limited (FSS) and ERP Service Center (FES) as of January 1, 2007. The
consolidated company name is FPT Information System Company Limited.
On January 1, 2007, FPT established FPT Retail Company Limited with a one-member
LLC model.
On March 13, 2007, FPT Advertising Joint Stock Company (FPT Promo JSC) and Asia
Pacific Software Company Limited located in Singapore (FAPAC) were established.
On December 19, 2008, FPT Company announced that it was approved to change its name
from "Technology Investment and Development Joint Stock Company" to "FPT Joint Stock
Company" abbreviated as "FPT Corporation".
On December 24, 2008, FPT Company announced the decision to appoint a new General
Director, Mr. Nguyen Thanh Nam, to replace Mr. Truong Gia Binh. Mr. Nam is a founding
member of FPT Company, Chairman of the Board of Directors of FPT Software Company
(FSOFT).
In February 2011, the Board of Directors of FPT Company issued a resolution to appoint
Mr. Truong Dinh Anh as General Director to replace Mr. Nguyen Thanh Nam.
On July 31, 2013, the Board of Directors of FPT Company passed a resolution to appoint
Mr. Bui Quang Ngoc, PhD in database, as General Director of FPT to replace Mr. Truong Gia
Binh. Mr. Ngoc is one of the founding members and is currently Vice Chairman of the Board
of Directors of FPT.
In 2014, FPT was the first Vietnamese IT company to acquire a foreign IT company, RWE
IT Slovakia (a member unit of Europe's leading energy group, RWE).
In August 2017, FPT transferred 30% of its capital in FPT Digital Retail Joint Stock
Company (FPT Retail) to Vina Capital and Dragon Capital, reducing the Company's
ownership ratio in FPT Retail to 55%.
In September 2017, FPT transferred 47% of its capital in FPT Trading Joint Stock
Company (FPT Trading) to Synnex Group (Taiwan), reducing the Company's ownership ratio
in FPT Retail to 48%.

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 In July 2018, FPT purchased 90% of the shares of Intellinet Consulting (Intellinet), one of
the fastest growing technology consulting companies in the US.
In March 2019, FPT appointed Mr. Nguyen Van Khoa - Deputy General Director of FPT
and General Director of FPT Information System Company Limited - to take on the position
of General Director of FPT, replacing Mr. Bui Quang Ngoc at the end of his term.
In June 2020, FPT signed a strategic cooperation agreement with the world's leading
artificial intelligence research institute Mila, opening up opportunities to interact and improve
technological capacity for Vietnam's young technology community.
In May 2021, FPT made a strategic investment in Vietnam's No. 1 business management
platform - Base.vn to promote digital transformation of SMEs.
In July 2021, FPT purchased Intertec International - an information technology service
provider with more than 20 years of experience in Latin America.
In August 2021, FPT initiated the FPT eCovax program - Digital Vaccine for businesses,
supporting more than 3,000 businesses to operate without interruption and achieve
breakthrough growth in a green normal.
In September 2021, Mr. Truong Gia Binh, Chairman of the Board of Directors of FPT
Group initiated the idea of building a school for children who lost their parents due to the
COVID-19 epidemic. One year later, Hy Vong School (in Ngu Hanh Son district, Da Nang
city) welcomed the first 200 students in the 2022-2023 school year.
In May 2022, FPT will start construction of the FPT UniSchool Ha Nam educational
complex - a facility focusing on training at all levels from high school to college with a
training scale of 10,000 students, increasing the total number of training facilities. training
facilities in 14 provinces and cities.
By opening a second office in New York in May 2022 and opening the first representative
office in Northern Europe in Copenhagen, Denmark in September 2022, FPT has increased its
presence in 27 countries. In the world.
In September 2022, Deputy Prime Minister of Singapore Heng Swee Keat visited FPT
Software (a member company of FPT Group), promoting linkage and cooperation activities
between private sector enterprises between Vietnam and Singapore.
In October 2022, FPT becomes a Strategic Shareholder of LTS, Inc. - company in the Top
20 consulting, business management and digital transformation companies in Japan with more
than 20 years of experience.
2. Organizational structure
FPT has office systems in 29 countries around the world, and telecommunications
infrastructure covers 59/63 provinces and cities in Vietnam. The company's headquarters is at
FPT Building, No. 10 Pham Van Bach Street, Dich Vong Ward, Cau Giay District, Hanoi
City, with 8 member companies and 3 affiliated companies. (FPT, 2023)
8 Member companies:
FPT Software Company Limited (FPT Software)
FPT Information System Company Limited (FPT Information System)

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FPT Telecom Joint Stock Company (FPT Telecom)
FPT Online Services Joint Stock Company (FPT Online)
FPT Education Company Limited (FPT Education)
FPT Investment Company Limited (FPT Investment)
FPT Smart Cloud Company Limited (FPT Smart Cloud)
FPT Digital Company Limited (FPT Digital) (wikipedia, 2023)
2 Affiliated companies:
Synnex FPT Joint Stock Company (Synnex FPT)
FPT Digital Retail Joint Stock Company (FPT Retail)
3. Achievements
In Viet Nam
 First Class Labor Medal (1998-2002) received in 2003
 Hero of the People's Armed Forces (1998)
 Top 500 largest enterprises in Vietnam according to VNR500 ranking (From 2007 to
2021)
 Top 20 largest private enterprises in Vietnam according to VNR500 ranking (From
2007 to 2021)
 Top 50 most valuable corporate brands in Vietnam (From 2015 to 2021)
 Number 1 in Vietnam in both revenue and human resources in the field of system
integration; Providing IT services, online advertising, and distributing technology
products
 Number 2 in Vietnam in fixed broadband internet access services (Vietnam ICT White
Paper released by the Ministry of Information and Communications in 2014)
 FPT achieved the title of #1 Best Place to Work in the IT/Software & Applications/E-
Commerce industry, and is also in the Top 50 Vietnamese Enterprises with Attractive
Employer Brands in 2021
 'Made by FPT' products are honored with Sao Khue (from 2015 to 2022)
 FPT was honored by Forbes Vietnam in the Top 50 Best Listed Companies (From
2012 to 2022)
 FPT is in the top 3 large-cap enterprises with IR activities most loved by investors and
top 3 large-cap enterprises with IR activities most highly appreciated by financial
institutions (2022)
In the world
 FPT is in the Top 100 trusted service providers (IAOP) (2014)
 FPT is in the Top 300 Asian companies with the best business performance (2015)
 FPT is in the Top 130 companies with the best working environment in Asia (2018)
 FPT was honored by AsiaMoney as the most outstanding company in Vietnam in the
field of information technology and telecommunications services (2021 and 2022)
 The only Vietnamese enterprise honored in the Most Valuable Corporate Response
category (Most Valuable Corporate Response) according to the Stevie® Award.

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  FPT University is the first university in Vietnam to be ranked 3 stars by QS, the
world's leading university ranking organization, for 3 consecutive periods.
II. Related parties
1. External environment:
i. Suppliers
The company has built long-term and strategic relationships with product and service
suppliers, bringing a lot of added value to suppliers. On August 25, 2015, FPT Shop officially
signed a cooperation agreement as a comprehensive partner of Apple through direct import of
iPhone - iPad. This means that FPT Retail has imported all products from Apple itself.
Thereby, customers who buy Apple products at FPT Shop will enjoy preferential policies
along with the best shopping experiences.
ii. Customers
FPT's customers include corporate and individual customers, spread across many fields
such as government agencies, national defense and security, finance, accounting, education,
telecommunications, and transportation. , banks, etc. Not only focusing on domestic customer
groups, the company is also expanding its market to foreign markets. In general, due to the
specific characteristics of the products and services that FPT provides, this company's
customers are mainly large organizations and businesses.
 Mr. Stephen Foley, chief technology officer of Rheem Australia, cooperates with FPT
Software in mid-2021 with the goal of integrating SAP ERP implementation into
business operations.
 Mr. Masahiro Hayashi, former president and CEO of Hitachi Solution, began
cooperating with FPT Software in 2003 not only in the field of software but also in
many other business fields.
 Mr. Takashi Amano, Director of Technology of Toshiba Industrial IT solutions
company of Toshiba Corporation 2002
 Mr. Mitsuo Ota, CEO of Denso Manufacturing Vietnam
 Mr. Kenichi Fukushima, president and representative director of Toppan Forms
Operation
 Mr. Tsunashige Sugiyama Chairman and representative director of A-Too Co
There are also other customers such as: Sanyo, Panasonic, Dell, Nissen, Hp, ...
iii. Society
The General Statistics Office said that in 2020, the average Vietnamese population is
estimated to be 97.58 million people, an increase of 1.098 million people, equivalent to an
increase of 1.14% compared to 2019. Of the total population, the urban population urban area
is 35.93 million people, accounting for 36.8%; Rural population 61.65 million people,
accounting for 63.2%; Male population 48.59 million people, accounting for 49.8%; The
female population is 48.99 million people, accounting for 50.2%. According to Vietnam
Electronic Newspaper, Vietnam has officially entered the "aging" phase since 2011 with the
number of elderly people (65 years and older) accounting for 7% of the total population.
Currently, the number of elderly people (over 65 years old) is 7.4 million, accounting for 7.7%
of the total population. By 2050, this number will increase to 22.3 million people, accounting

9
for 20.4% of the total population. Vietnam is one of the rapidly aging countries in the world.
Population aging has a major impact on the economy because the elderly spend less than
young people, so the consumer market is also negatively affected, the revenue of businesses
also declines, and business bankruptcy will occur. increase. The aging population also forces
technological innovation to be accelerated, because the decline in the labor force will be partly
offset by technological unemployment or by increased labor productivity. However,
improving technology is not always possible, and always requires a huge cost. According to
Weare social's Digital 2020 report, the number of mobile subscribers is 145.8 million
(accounting for 150% of the country's total population), the number of Internet users is 68.17
million (accounting for 150% of the country's total population). 70% of the population), the
number of social network users is 65 million (accounting for 67% of the population). The
Covid-19 pandemic has led to major changes across the region. In 2020 more than a third of
digital users started using online services for the first time because of Covid-19. According to
Google statistics, 95% intend to continue using online services even after the pandemic. Of the
total number of digital service users, new users in Vietnam account for 41%. This turns
Vietnam into the country with the highest rate of new Internet users in the region. Before the
COVID epidemic appeared, Vietnamese people in particular often spent 3.1 hours/day
accessing the Internet for personal purposes. During the period of widespread social
distancing, this number jumped to 4.2 hours/day and is currently at 3.5 hours/day.
The process of globalization, extensive international integration and the 4th Industrial
Revolution has created many opportunities and advantages for the cultural industry to develop
with global promotion opportunities and bring great values from exploiting the economic
potential of culture in the environment. digital school. In 2020, due to the Covid-19 epidemic,
many live art performance activities shifted to online performances. Artists, art organizations,
and theaters maintain artistic activities through YouTube channels, fan pages, and online
theater and theater forms. Adapting to the situation and meeting the audience's need to enjoy
art, the Ministry of Culture, Sports and Tourism has piloted online streaming of a number of
competitions, festivals, and art programs such as Doc National Folk Instrument Concert and
Concert 2020, Dance Performance Talent Contest 2020, National Cheo Actor Young Talent
Contest 2020, music, drama, symphony programs, etc. attract a large number of artists. Artists
participated and received positive responses from the audience. The gradual implementation of
artistic activities on the Internet is the basis for the Ministry of Culture, Sports and Tourism to
build and expand the model of artistic activities in the digital environment, adapting to current
technology. At the same time, gradually build and complete a project on Vietnamese art
activities on a digital platform. Before the COVID epidemic appeared, Vietnamese people in
particular often spent 3.1 hours/day accessing the Internet for personal purposes. During the
period of widespread social distancing, this number jumped to 4.2 hours/day and is currently
at 3.5 hours/day.
iv. Government
FPT will face risks if the state's macro policies change, leading to FPT's globalization
strategy not being implemented or only partially implemented.
The legal system in general lacks uniformity and a legal basis. For activities in the field of
information technology, there are many shortcomings and shortcomings that will limit or even
hinder FPT's development activities.

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 Policies on training high-level human resources, cooperation programs with large
corporations Government changes can also affect FPT's development plan.
However, in the 4.0 era, the government and state encourage the promotion, development
and application of IT, so FPT will thrive to meet the needs of the people and the state.
v. Shareholders
- Shareholder structure:
 State ownership: 5.96%
 Foreign ownership: 49%
 Other ownership: 45.04%
- Major shareholder:
 Truong Gia Binh as chairman of the board of directors with 76,741,442 shares,
7.00% ownership ratio
 State capital investment and trading corporation with 63,506,626 shares, 5.79%
ownership ratio
 Maccquarie Bank Ltd with 37,075,015 shares share accounts for 4,735
vi. Creditors
FPT Retail's "creditor" structure is mainly foreign banks. HSBC Vietnam has the highest
loan amount of 965 billion VND. Followed by Standard Chartered Vietnam with 805 billion
VND. Next is HSBC Hong Kong with 754 billion VND.
Currently, FPT Retail only borrows from two domestic banks, Vietinbank (nearly 500
billion VND) and BIDV (155 billion VND). At the end of last year, FPT Retail still borrowed
from Vietcombank and MB but paid off all the debt in the past year.
The sharp increase in FPT Retail's debt is mainly explained by the company's expansion of
the Long Chau pharmacy chain.
In 2021, FPT Retail lent a total of VND 8,050 billion to FPT Joint Stock Company
(recovered VND 7,375 billion within the year), thereby recording VND 75.5 billion in interest
earned from the loan.
2. Internal environment
i. Workers
As of December 31, 2021, FPT's personnel increased by 21.3% over the same period to
37,180 people. In particular, the Technology Division continues to play a core role with
24,068 employees, accounting for 64.7% of the total workforce of the Group, an increase of
28.5% over the same period. This is considered a core force that plays an important role in
expanding the Made by FPT ecosystem and digital transformation solutions, helping to create
new growth momentum for the Group in the long term. Besides, the number of employees in
the telecommunications sector ranked behind with 10,346 employees, accounting for 27.8% of
total human resources. And finally, the education, investment and other sectors have a ratio of
7.4%, equivalent to 2,766 employees operating in this field.

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 ii. Managers

No. Organization member name Management position

1 Mr. Truong Gia Binh Chairman of the Board of Directors

2 Mr. Bui Quang Ngoc Vice Chairman of the Board of Directors

3 Mr. Nguyen Van Khoa General Director of FPT

4 Mr. Hoang Viet Anh Deputy General Director of FPT

5 Mr. Nguyen The Phuong Chief Financial Officer of FPT

6 Mr. Vu Anh Tu FPT Technology Director

7 Mr. Nguyen Xuan Viet Director of FPT Information Technology

8 Mr. Chu Quang Huy Director of Human Resources of FPT

Director of Marketing and Communications of

9 Mr. Vo Dang Phat
FPT

10 Ms. Pham Thi Quynh Vi FPT Quality Director

iii. Owners

No. Organization member name Management position

1 Mr. Truong Gia Binh Chairman of the Board of Directors

2 Mr. Nguyen Van Khoa General Director of FPT

III. Analyzing and evaluating financial situation

1. Overall assessment of fluctuations in growth rate of revenue, profit and total
assets over the 3-year period of FPT (2020-2022)
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 i. Overview of the asset of FPT in 2020-2022
2020 2021 2022 Difference (%)

2020- 2021-
Mil VND % Mil VND % Mil VND %
2021 2022

Cash and cash equivalents 4,686,191 11.2% 5,417,845 10.1% 6,440,177 12.5% 15.6% 18.9%

Short-term investments 12,435,191 29.8% 20,730,720 38,6% 13,047,234 25.3% 66.7% -37.1%

Short-term receivables 6,265,411 15% 6,882,182 12.8% 8,502,895 14.5% 9.8% 23.5%

Inventory 1,290,091 3.1% 1,507,342 2.8% 1,965,787 3.8% 16.8% 30.4%

Other short-term assets 934,876 2.2% 580,281 1.1% 981,616 1.9% -37.9% 69.2%

Short-term assets 25,612,489 61.4% 35,118,372 65.4% 30,937,711 59.9% 37.1% -11.9%

Long-term receivables 242,872 0.6% 167,244 0.3% 225,090 0.4% -31.1% 34.6%

Fixed assets 8,317,822 19.9% 10,398,837 19.4% 12,032,914 23.3% 25% 15.7%

Long-term work in progress 2,373,393 5.7% 1,290,598 2.4% 1,062,184 2.1% -45.6% -17.7%

Long-term investments 2,581,174 6.2% 3,101,993 5.8% 3,238,299 6.3% -20.2% 4.4%

Other long-term assets 2,606,569 6.2% 3,620,893 6.7% 4,154,202 8% 38.9% 14.6%

Long-term assets 16,121,833 38.6% 18,579,567 34.6% 20,712,692 40.1% 15.2% 11.5%

Total assets 41,734,323 100.0% 53,697,940 100.0% 51,650,403 100.0% 28.7% -3.8%

According to the table, we could see that short-term assets tend to fluctuate strongly. It
increased from 25,612,489 million VND in 2020 to 35,118,372 million VND in 2021 (an
increase of 37.1%) and then went down to 30,937,711 million VND in 2022.
This change happens mainly due to the fluctuation in the proportions of short-term financial
investments: from 12,435,191 million VND in 2020 to 20,730,720 million VND in 2021 (an
increase of 66.7%) and to 13,047,234 (a decrease of 37.1%).
Long-term assets tend to increase slightly through the years, from 16,121,833 million VND
in 2020 to 18,579,567 million VND in 2021 (an increase of 15.2%) and then to 20,712,692
million VND in 2022 (an increase of 11.5%).
Long-term assets increased mainly due to the sharp increase in fixed assets: from 8,317,822
million VND in 2012 to 10,398,837 million VND in 2013 (23%) and 12,032,914 million VND
in 2022 (15.7%).

ii. Overview of revenue and profit in period 2020-2022

2020 2021 2022 Difference (%)

Mil VND Mil VND Mil VND 2020-2021 2021-2022

13
 Net Sales from Good & Service Sold 29,921,698 35,657,262 44,009,527 19.2% 23.4%

Revenue from financial activities 821,896 1,270,789 1,998,503 54.6% 57.3%

Gross Profit 11,813,657 13,631,964 17,167,278 15.4% 25.9%

Net Profit 5,190,654 6,228,494 7,589,289 20% 21.8%

Other Profit 72,802 108,712 72,993 49.3% -32.9%

Profit before Tax 5,263,456 6,337,206 7,662,282 20.4% 20.9%

Profit after Tax 4,423,745 5,348,301 6,491,343 20.9% 21.4%

Net sales in 2021 reached 35,657,262 million VND, up 19.2% compared to 2020 and then
in 2022, FPT's net sales reached an even greater figure which was 44,009,527 million VND,
up 23.4% compared to 2021.
Revenue from financial activities in 2021 reached 1,270,789 million VND (accounting for
3.5% of total revenue), an increase of 54.6% compared to 2020 and continued to increase by
57.3% in 2013 (1,998,503 million VND, accounting for 4.5% of the total revenue).
Total profit before tax in 2021 reached 6,337,206 million VND, up 20.4% compared to
2020 (5,263,456 million VND) and in 2022 reached 7,662,282 million VND, up 20.9%
compared to 2012.
Gross profit in 2021 reached 13,631,964 million VND, up 15.4% compared to 2020,
showing that the situation of the enterprise is going up. Not the end of the story, in 2022, gross
profit reached 17,167,278 million VND, 25,9% compared to 2021, proving that FPT had
achieved some improvements in business operations.
Net profit from business activities in 2021 was 6,228,494 million VND, up 20% compared
to 2020 and in 2022 reached 7,589,289 million VND, up 25.9% compared to 2021.
While all the other indexes tend to increase, other profit fluctuated from 72,802 million
VND in 2020 up to 108,712 million VND in 2021 and then down to 72,993 million in 2022.
However, it doesn’t change the fact that FPT's profits have increased steadily over the past 3
years, demonstrating clear development and advantages in their business.

2. General assessment of the fluctuations in liabilities and equity over the 3-

year period (2020-2022)

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 2020 2021 2022 Difference (%)
2020- 2021-
$ % $ % $ %
2021 2022
Short-term liabilities 22,364,710 53.6% 29,761,106 55.4% 24,521,161 47.5% 33.1% -17.6%

Long-term liabilities 763,945 1.8% 2,518,849 4.7% 1,773,117 3.4% 229.7% -29.6%

Total liabilities 23,128,655 55.4% 32,279,955 60.1% 26,294,279 50.9% 39.6% -18.5%

Owner’s Equity 18,602,917 44.6% 21,415,235 39.9% 25,353,374 49.1% 15.1% 18.4%
Funding sources and other
2,750 0.0% 2,750 0.0% 2,750 0.0% 0.0% 0.0%
funds
Total Equity 18,605,667 44.6% 21,417,985 39.9% 25,356,124 49.1% 15.1% 18.4%
Total equity and
41,734,323 100.0% 53,697,940 100.0% 51,650,403 100.0% 28.7% -3.8%
liabilities

From 2020 to 2022, the proportion of liabilities was unstable. To be specific: Liabilities
increased from 23,128,655 million VND in 2020 to 2,518,849 million VND in 2021 (up
39.6%) but then decreased to 26,294,279 million VND in 2022 (down 18.5%).
Short-term debt and long-term debt both have unstable proportions. Short-term debt
increased from 22,364,710 million VND in 2020 to 29,761,106 million VND in 2021 (up
33.1%) but then decreased to 24,521,161 million VND in 2022 (down 17.6%). Similarly,
long-term debt increased from 763,945 million VND in 2020 to 2,518,849 million VND in
2021 (an increase of 229.7%) but then decreased to 1,773,117 million VND in 2022 (a
decrease of 29.6%).
Equity proportion has increased steadily, from 18,605,667 million VND in 2020 to
21,417,985 million VND in 2021 (an increase of 15.1%) and 25,356,124 million VND in 2022
(increased 18,4% compared to 2021).
In general, total equity and liabilities of FPT was unstable from 2020 to 2022.
IV. Analyze financial indicators
1. Solvency index group
i. Current ratio
The current ratio is a financial metric that assesses a company's ability to cover its short-
term liabilities with its short-term assets. Current assets include cash, accounts receivable, and
inventory, while current liabilities encompass obligations due within one year, such as short-
term debt and accounts payable.
The formula for the current ratio is:
Current assets
Current Ratio =
Current liabilities

The resulting ratio provides insights into a company's liquidity and its capacity to meet its
short-term obligations. A current ratio above 1 indicates that a company has more current
assets than current liabilities, suggesting it can cover its short-term debts. However, a very

15
high current ratio may imply underutilized resources, while a ratio below 1 may indicate
potential liquidity issues.
In the second quarter of 2023 (Q2.2023), FPT had a current ratio of 1.24 which suggests
that FPT may have a relatively healthy short-term liquidity position.
The scale of FPT's total consolidated assets at the end of Q2.2023 increased significantly by
17.2% compared to the beginning of the year, reaching VND 60,557 billion. This rise in total
assets is primarily attributed to the contribution of items such as short-term financial
investments (up by 56.8%, mainly term deposits), long-term unfinished assets (increased by
56.8%, primarily term deposits), and long-term assets in progress (up by 65.5%).
FPT's asset structure at the end of Q2.2023 leans towards short-term assets, accounting for
64%. Notably, the company exhibits ample liquidity, with cash and deposits making up a
substantial 44% of total assets. Furthermore, fixed assets represent a significant proportion at
20.3%, indicating active investment in this area, as evident from the increased balance of long-
term unfinished assets. Overall, FPT's asset structure is secure and sustainable, blending
highly liquid assets (cash and short-term financial investments) with long-term, foundational
assets for business operations (fixed assets).
ii. Quick ratio
The quick ratio, also known as the acid-test ratio, is a financial metric that measures a
company's ability to cover its short-term liabilities with its most liquid assets. It is a more
stringent measure of liquidity compared to the current ratio because it excludes inventory from
the current assets.
The formula for the quick ratio is:
Current assets−Inventory
Quick Ratio =
Current liabilities
The quick ratio provides insight into a company's ability to meet its short-term obligations
without relying on the sale of inventory. A ratio of 1 or higher suggests that a company can
cover its short-term liabilities with its most liquid assets, such as cash and accounts receivable.
A quick ratio below 1 may indicate potential liquidity challenges, as the company may
struggle to meet its short-term obligations without relying on inventory sales.
Like the current ratio, the quick ratio is a crucial tool for assessing a company's liquidity,
but it provides a more conservative measure by excluding inventory. As with any financial
metric, it is important to consider industry benchmarks and analyze trends over time for a
comprehensive evaluation of a company's financial health.
In the case of FPT, having a quick ratio of 1.17 and a current ratio of 1.24 in Q2.2023
suggests that the company has a healthy liquidity position. Both ratios are above 1, indicating
that FPT has more than enough current assets to cover its short-term liabilities. The quick ratio
being slightly lower than the current ratio suggests that inventory constitutes a significant
portion of FPT's current assets, but it's still well-balanced with other liquid assets.

16
 2. Performance index group

Activity index 2nd quarter of 1nd quarter of 2nd quarter of 1nd quarter of
2023 2023 2022 2023

Accounts 2.34 (round/day) 2.52 2.23 3.16

receivable turnover 38.46 days (round/day) (round/day) (round/day)
Average collection 35.71 days 40.35 days 28.40 days
period

Inventory turnover 3.81(round/day) 3.51 3.00 3.45

Number of days in 23.62 days (round/day) (round/day) (round/day)
inventory 25.64 days 30 days 26.10 days

i. Accounts receivable turnover

The accounts receivables turnover ratio measures the number of times a company collects
its average accounts receivable balance. It is a quantification of a company's effectiveness in
collecting outstanding balances from clients and managing its line of credit process.
Net Credit Sales
Acounts receivables turnover ratio =
Average Accounts Receivable
Looking at the turnover ratio table, we see that the receivables turnover is 3.16 cycles and
the average collection period is 28.40 days. By the second quarter of 2022, receivables
turnover decreased sharply to 2.23 cycles and the average collection period increased to 40.35
days. At the beginning of 2023, the index increased slightly to 2.25 cycles, but the average
collection period decreased sharply to 35.71 days, down 4.36 days compared to 2022. This
shows that the company is having problems with the collection of receivables. , the company
needs to try to find solutions to overcome this aspect.
ii. 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.
COGS
Inventory turnover =
Average Inventory
Receivables turnover in the first quarter of 2023 is 3.51 cycles and inventory days are 25.64
days. In the first quarter of 2023, inventory turnover was 3.81 turns, down 0.3 turns compared
to the first quarter, and the number of inventory days was 23.62 days. Although in 2022
inventory turnover will decrease by 0.51 turns and the number of inventory days will be 4
days more. This shows that the amount of inventory is getting less and less, due to the
company's business characteristics being technology, telecommunications and education
products.

17
 2 quarter of
nd
1 quarter of
nd
2 quarter of
nd
1 quarter of
nd

2023 2023 2022 2023

Average debt collection 65.96 68.61 67.44 67.14

period

Average repayment 44.65 48.33 47.59 47.52

period

iii. Average debt collection period

The Average Debt Collection Period, also known as the Days Sales Outstanding (DSO), is
a financial metric that measures the average number of days it takes for a business to collect
payment after a sale has been made. It is a key indicator of how efficiently a company
manages its accounts receivable.
Accounts Receivable
The Average Debt Collection Period =
Average Daily Credit Sales
The average time for FPT to collect debt once is 67 days in 2022, in mid-2022 the average
time is nearly 68 days, in early 2023 it is nearly 69 days and in the second quarter of 2023 the
average is 66 days FPT collects debt in one go. In general, over the past 4 quarters, the
average price has decreased steadily, which is a positive sign for the business. At the same
time, this ratio is much lower than the industry average, showing that the business is able to
manage receivables effectively. And businesses should continue to maintain these receivables
management policies.
iv. Average repayment period
The Average Payment Period is one of the important solvency ratios of the company and
helps a company track and know its ability to pay the amount payable to its creditors.
Accounts Payable
Average Payment Period =
Average Daily Credit Purchase
In the first quarter of 2022, on average, businesses will repay debt once every 47 days, in
the second quarter of 2022, the average time will be nearly 28 days, in the beginning of 2023,
it will be 48 days, and in the second quarter of 2023, on average, FPT will pay 44 days. One-
time payment of raw materials. The trend over the past 4 quarters can be seen to be decreasing
and this is really not good for the company. Because it means that the company's time to take
up capital is decreasing. To increase the time to take up capital, the company should first offer
2 options for 2 objects: existing customers and new customers. For existing customers
(suppliers with long-term cooperation), businesses should try to negotiate to extend the debt
repayment period, helping the business take up capital longer and thereby increase profits for
the business. As for new customers (new suppliers who have cooperated for a short time),
businesses should clearly state in the contract the debt payment time.
18
 Activity index 2nd quarter of 1nd quarter of 2nd quarter of 1nd quarter of
2023 2023 2022 2023

Total asset utilisation 0.20 0.23 0.19 0.17

efficiency

Efficiency in using 0.42 0.44 0.44 0.42

equity capital

v. Total asset utilisation efficiency

Businesses and financial analysis asset utilization to assess how efficiently calculate a
business is using its assets to create revenue. This measurement is typically calculated as a
ratio of asset value to revenues. Asset utilization can be calculated for all of a business's assets
at once or for individual categories of assets such as inventory or accounts receivable.
Net Revenue
Total asset utilization efficiency =
Total Assets
In the first quarter of 2022, 1 VND of total assets generates 0.17 VND in revenue, in the
second quarter of 2022, this ratio is 0.19 VND, in the first quarter of 2023 it is 0.23 VND, and
0.20 VND in the second quarter of 2023. It can be seen This ratio increased significantly at the
beginning of the year, 2023, but from April onwards, this ratio decreased slightly, which is a
negative sign for the company. At the same time, when compared with the industry average,
this ratio is lower than the industry average, which proves that FPT is using total assets
ineffectively. It can be said that there is only one direction to improve this ratio. is to increase
revenue. To do that, there are two main options: pushing inventory and reducing inventory
discounts. First, to push inventory, there are ways as analyzed: offering discounts, promotions,
increasing discounts for agents, and training to improve skills for sales/marketing staff. Next,
to reduce inventory discounts, businesses should first conduct statistics and review the agents
they distribute goods to, so that they can know which agents are doing business ineffectively,
and then eliminate them. reduce these agents to reduce inventory discount costs.
vi. Efficiency in using equity capital
Capital efficiency refers broadly to how efficiently a company spends its money to operate
and grow, and specifically, measures how much money is put into the business versus how
much money the business generates from that investment.
Net Revenue
Efficiency in using equity capital =
Equity
One dong of equity generates 0.42 VND in revenue in the first quarter of 2022, in the
second quarter of 2022 this ratio is 0.44 VND, quite similar to the first quarter of 2023, and in
the second quarter of 2023 it is again 0.42 VND. After 1 year, it can be seen that this ratio is
unstable. In mid-2022, this ratio group shows an increase but stagnates until the beginning of

19
2023, but when it comes to the second quarter of 2023, this ratio decreases and returns to the
level of last year 2022.

3. Group of debt indicators

i. Debt to Equity ratio
The debt-to-equity ratio is a financial metric that indicates the proportion of a company's
financing that comes from debt compared to equity. The formula for the debt-to-equity ratio
is:
Total Debt
Debt-to-Equity Ratio =
Total Equity
Total debt includes both short-term and long-term debt, while total equity encompasses
shareholders' equity, which consists of common equity, preferred equity, and retained
earnings.
The debt-to-equity ratio provides insights into a company's capital structure and financial
leverage. A higher ratio indicates a higher level of financial leverage, suggesting that a larger
portion of the company's financing comes from debt. While debt can amplify returns, it also
increases financial risk, as the company must meet interest and principal payments.
Conversely, a lower debt-to-equity ratio implies a lower level of financial leverage, with a
greater reliance on equity financing. While this can lower financial risk, it might also limit
potential returns.
Different industries may have different optimal debt-to-equity ratios, and the interpretation
of this ratio should be considered in the context of the company's specific circumstances,
industry benchmarks, and risk tolerance. Investors and analysts use the debt-to-equity ratio to
assess a company's financial risk and make informed decisions about its financial health and
stability.
At the end of Q2.2023, FPT's total liabilities stood at VND 31,962 billion, reflecting a
sharp increase of 21.6% compared to the beginning of the year. Notably, short-term bank
loans have surged by 77% since the previous year, constituting the primary factor behind the
upswing in total liabilities.
Despite the substantial increase in total liabilities, FPT's current financial structure remains
relatively balanced, characterized by moderate financial leverage, with a debt/equity ratio of
only 1.12. Simultaneously, the indicators of short-term debt payment ability are at a
reasonably secure level (current ratio = 1.24, quick ratio = 1.17).
ii. Debt to Asset ratio
The debt-to-asset ratio is a financial metric that assesses the proportion of a company's
assets that are financed through debt. The formula for the debt-to-asset ratio is:
Total Debt
Debt-to-Asset Ratio =
Total Asset

20
 Total debt includes both short-term and long-term debt, while total assets encompass all of
a company's possessions, including both current and noncurrent assets.
The debt-to-asset ratio provides insights into the financial risk and leverage of a company.
A higher ratio suggests that a larger percentage of the company's assets is financed by debt,
indicating higher financial risk and potential vulnerability to economic downturns or interest
rate fluctuations. Conversely, a lower ratio indicates a smaller proportion of debt relative to
assets, which may signify a more conservative financial approach and reduced financial risk.
Like other financial ratios, the debt-to-asset ratio should be considered in the context of
industry benchmarks and the company's specific circumstances. It helps investors and analysts
assess a company's capital structure and financial risk, contributing to a more comprehensive
evaluation of its financial health and stability.
FPT's debt-to-assets ratio of 0.53 indicates that approximately 53% of the company's assets
are financed through debt. This ratio offers insights into the capital structure and financial risk
of the company. A debt-to-assets ratio below 1 suggests that FPT relies more on equity
financing than debt, which can be viewed positively by investors as it signifies a conservative
approach to leverage. A ratio of 0.53 indicates a moderate level of debt relative to total assets,
and it suggests that FPT has a reasonable balance between debt and equity in its capital
structure.

21
 Comparing the D/E ratio to D/A ratio, it's clear that FPT relies more on equity than on debt
for financing its assets. The debt-to-assets ratio being lower than the debt-to-equity ratio
indicates that a substantial portion of FPT's assets is funded through equity rather than debt.
iii. Interest payment ratio
The interest coverage ratio, also known as the interest payment ratio or times interest
earned (TIE) ratio, is a financial metric that assesses a company's ability to meet its interest
obligations on outstanding debt. The formula for the interest coverage ratio is:
EBIT
Interest Payment Ratio =
Interest expenses
A higher interest coverage ratio indicates a greater ability of the company to cover its
interest expenses with its operating earnings, suggesting a lower risk of default on debt
payments. Conversely, a lower ratio may signify a higher risk, as the company may have
limited earnings relative to its interest obligations.
Investors and creditors use the interest coverage ratio to gauge a company's financial
health, particularly its ability to service its debt. A comfortable interest coverage ratio provides
assurance that the company has sufficient earnings to meet its interest payments, reducing the
risk associated with its debt obligations.
FPT's interest payment ratio of 11.44 in Q2.2023 is a positive indicator. A ratio of 11.44
implies that the company's operating income is 11.44 times the amount needed to cover its
interest expenses. It also indicates a robust financial position for FPT in terms of covering
interest expenses. It implies that the company is generating sufficient operating income to
comfortably meet its interest obligations.
4. Profitability ratio group
i. Gross profit margin
Gross profit is a company's total sales or revenue minus its COGS.
Gross Profit
Gross Profit Margin Ratio = x 100
Net Sales
Gross profit margin is one of the key metrics analysts and investors watch as it helps them
determine whether a company is financially healthy. A high gross profit margin is desirable
and means a company is operating efficiently while a low margin is evidence there are areas
that need improvement.

2nd quarter of 2023 2nd quarter of 2022

Net revenue 12,484,364,264,902 10,096,060,090,959

COGS 7,850,539,957,865 6,080,957,072,181

Gross profit 4,633,824,307,037 4,015,103,018,778

Gross profit margin 37.10% 39.77%

22
 Unit: VND
(FinanceVietstock, 2023)
In the 2nd quarter of 2023, the company's gross profit margin index is 37.10%, meaning
that for every 100 VND of net revenue, 37.10 VND of gross profit is generated from sales and
service provision. At the end of the 2nd quarter of 2023, FPT recorded net revenue of nearly
12.5 trillion VND and gross profit of more than 4.6 trillion VND, increased by 24% and 21%
respectively over the same period.
ii. Operating profit margin
Operating profit margin is also known as EBIT (Earnings Before Interest and Tax) Margin.
It is calculated by dividing the operating profit by total revenue and expressing it as a
percentage.
Operating Profit
Operating Profit Margin Ratio = x 100
Net Sales
Operating Profit Margin is a profitability or performance ratio that reflects the percentage
of profit a company produces from its operations before subtracting taxes and interest charges.
It differs across industries and is often used as a metric for benchmarking one company
against similar companies within the same industry. It can reveal the top performers within an
industry and indicate the need for further research regarding why a particular company is
outperforming or falling behind its peers. FPT corporation has three main business segments
including technology, telecommunications and education. In particular, the technology sector
is the core business segment, contributing the largest revenue and profit to FPT. So we will
compare operating profit margin with the top 3 most potential technology companies based on
the 2nd quarter of 2023 financial reports.

FPT VGI VCT

Net revenue 12,484,364,264,902 6,861,419,133,040 12,541,090,358

Operating
2,189,766,371,273 -811,793,476,997 -6,414,117,345
profit

Operating
17.5% -11.8% -51.1%
profit margin

Unit: VND
(FinanceVietstock, 2023)
As we can see, FPT is the only company with a positive operating profit margin of 17.5%.
Currently, the key stock of the technology industry is FPT, accounting for nearly 90% of the
industry's profits.
iii. Net profit margin

23
 The net profit margin, or simply net margin, measures how much net income or profit is
generated as a percentage of revenue. It is the ratio of net profits to revenues for a company or
business segment.
Net Income
Net Profit Margin Ratio = x 100
Net Sales

24
 The net profit margin illustrates how much of each dollar in revenue collected by a
company translates into profit. It is one of the most important indicators of a company's
financial health. By tracking increases and decreases in its net profit margin, a company can
assess whether current practices are working and forecast profits based on revenues.

2nd quarter of 2023 2nd quarter of 2022

Net revenue 12,484,364,264,902 10,096,060,090,959

Net profit 1,509,219,531,243 1,250,820,478,811

Net profit margin 12.9% 12.4%

Unit: VND
(FinanceVietstock, 2023)
In the 2nd quarter of 2023, FPT recorded 12,485 billion VND in revenue, 1,509 billion
VND in net profit; an increase of 24% and 21% respectively compared to the 2nd quarter of
2022. This is also the quarter with the highest net profit ever for this technology enterprise.

iv. Earning per share (EPS)

Earnings per share (EPS) is calculated as a company's profit divided by the outstanding
shares of its common stock.
Net Income
EPS =
Average Outstanding Shares

Net Income−Dividend
EPS =
Average Outstanding Shares
Earnings per share is one of the most important metrics employed when determining a
firm's profitability on an absolute basis. By dividing a company's share price by its earnings
per share, an investor can see the value of a stock in terms of how much the market is willing
to pay for each dollar of earnings. The higher a company's EPS, the more profitable it is
considered to be.

3rd quarter of 4th quarter of 1st quarter of 2nd quarter of

2022 2022 2022 2023

25
 Earning per
5,456 4,805 5,258 5,289
share

Unit: VND
In the 2nd quarter of 2023, the company's profit per share was 5,289 VND/share, meaning
that for every 1 share invested in the company, it will create 5,289 VND in profit after tax for
shareholders.
Over 1 year, this index tends to decrease slightly, but in early 2023, FPT’ earning per share
increased to 5,258 VND/share compared to 4,805 VND/share in late 2022. In general, the
value of the company's EPS index is quite high, showing that the company operates very well
on this indicator to attract new investors to join the stock market.
v. Return on assets (ROA)
Return on assets is a profitability ratio that provides how much profit a company can
generate from its assets. In other words, return on assets (ROA) measures how efficient a
company's management is in earning a profit from their economic resources or assets on their
balance sheet.
Net Income
ROA =
Average Total Assets
ROA is shown as a percentage, and the higher the number, the more efficient a Because a
company's asset total can vary over time due to the purchase or sale of vehicles, land, or
equipment, as well as inventory changes or seasonal sales fluctuations. As a result, calculating
the average total assets for the period in question is more accurate than the total assets for one
period.

3rd quarter of 4th quarter of 1st quarter of 2nd quarter of

2022 2022 2022 2023

Net
1,453,716,280,969 1,351,601,105,816 1,493,562,580,890 1,509,219,531,243
Income

Total
55,127,101,516,155 51,655,408,644,948 50,741,161,416,448 60,556,686,225,532
Assets

ROA 2.64% 2.62% 2.94% 2.49%

Unit: VND
(FinanceVietstock, 2023)
The fact that this index tends to decrease shows that the company has not effectively used
available assets to serve production and business. To improve this index, the company can
liquidate and sell off excess assets that are inactive or ineffective.

26
 vi. Return on equity (ROE)
Return on equity (ROE) is a measure of financial performance calculated by dividing net
income by shareholders' equity. Because shareholders' equity is equal to a company’s assets
minus its debt, ROE is considered the return on net assets.
Net Profit
ROE =
Equity
ROE is considered a gauge of a corporation's profitability and how efficient it is in
generating profits. The higher the ROE, the more efficient a company's management is at
generating income and growth from its equity financing.

3rd quarter of 4th quarter of 1st quarter of 2nd quarter of

2022 2022 2022 2023

Net
1,453,716,280,969 1,351,601,105,816 1,493,562,580,890 1,509,219,531,243
income

Equity 24,055,768,329,616 25,342,980,745,741 27,061,179,213,990 28,595,184,397,177

ROA 6.04% 5.33% 5.52% 5.28%

Unit: VND
(FinanceVietstock, 2023)
The ratio is much higher than the industry average, proving that FPT uses equity capital
effectively. However, compared to the 3rd quarter of 2022, the 2nd quarter of this year has
decreased by more than 0.7% in this index. The reason for the decrease is that profit after tax
and average equity both increased, but the growth rate of average equity was faster. This is a
bad sign that the company's profitability has declined. Therefore, FPT should continue to find
ways to increase profit after tax by reducing deductions and expenses.
5. Market index group
i. Price to Earnings ratio (P/E)
The Price-to-Earnings (P/E) ratio is a widely used financial metric that assesses the
valuation of a company's stock by comparing its market price per share to its earnings per
share (EPS).
The formula for the Price-to-Earnings ratio is:

Market price per Share

P/E Ratio =
Earnings per Share

27
 The P/E ratio provides insights into how the market values a company's earnings. A high
P/E ratio may suggest that investors have high expectations for future earnings growth, while a
low P/E ratio could indicate that the market has more conservative expectations or that the
company may be undervalued.
Investors often use the P/E ratio to compare the relative valuations of different companies
within the same industry or to assess a company's valuation in the broader market context.
However, it's essential to consider other factors, such as growth prospects, industry dynamics,
and economic conditions, when interpreting the P/E ratio for investment decisions. A high P/E
ratio does not necessarily mean a stock is overvalued, and a low P/E ratio does not always
signify a good investment opportunity; it depends on the specific circumstances and the
overall market environment.
A P/E ratio of 16.26 for FPT in Q2.2023 implies that investors are willing to pay
approximately 16.26 times the company's current earnings for each share of its stock. In
general terms, a moderate P/E ratio indicates a reasonable valuation, neither excessively high
nor low. A ratio of 16.26 suggests that the market is pricing in a moderate level of anticipated
earnings growth for FPT.
ii. Book value of each share
The book value per share is a financial metric that represents the equity value attributable to
each outstanding share of a company's common stock. The formula for the book value per
share is:
Total Shareholder Equity
Book Value per Share =
Number of Outstanding shares
The book value per share provides an indication of the net asset value that each share
represents. It reflects the company's total assets minus its total liabilities, divided by the
number of shares outstanding. Investors use this metric to assess the intrinsic value of a
company's stock, especially in comparison to its market price. If the market price per share is
lower than the book value per share, it might suggest that the stock is undervalued.
However, it's important to note that the book value per share may not fully capture the
market's perception of a company's worth, as it doesn't account for factors such as future
earnings potential, brand value, or other intangible assets. Investors often consider a
combination of financial metrics, including the book value per share, to make informed
decisions about a company's valuation and investment potential.
In Q2.2023, FPT’s Book value of each share was 25,891 VND.
Stock prices often experience sharp increases, even when businesses abstain from issuing
dividends or introduce new shares. This trend highlights investors' willingness to 'hold' stocks,
confidence in the prospect of profit. Such behavior is predominantly observed in growing and
industry-leading businesses, where shareholders trust in an unwavering market rule: as long as
a business grows, the stock price will ascend.
Despite market fluctuations since the beginning of the year, FPT's technology stock has
consistently trended upward, marking a stable increase of nearly 40%. As of now, FPT's
current market capitalization stands at 114,300 billion VND (~5 billion USD).

28
 Conclusion
In conclusion, the comprehensive analysis of FPT's financial metrics has offered valuable
insights into the company's overall financial health and performance. This dissertation aimed
to provide a foundation for investors to make informed decisions regarding the purchase of
FPT's stock. The examination of various financial indicators has illuminated aspects of
liquidity, leverage, and market valuation. While the findings contribute to a clearer
understanding of FPT's position in the market, the decision to invest in the company's stock
should be approached with a nuanced understanding of the broader economic landscape,
industry trends, and the company's strategic vision. In the dynamic world of stock investments,
this analysis serves as a crucial tool for investors to assess risk and potential returns,
emphasizing the importance of ongoing vigilance and adaptability in response to changing
market conditions.

29
 Reference
FinanceVietstock. (2023, 11 15). FPT Corporation. Retrieved from FinanceVietstock:
https://finance.vietstock.vn/FPT/tai-chinh.htm?tab=BCTT&languageid=2
FPT. (2023). Annual report. Hanoi: FPT CEO Tran Van Khoa. Retrieved 2023, from
https://fpt.com/en/ir/report
Fpt. (2023). Annual Report. hanoi. Retrieved from https://fpt.com/en/ir/report
wikipedia. (2023, 11 7). Wikipadia. Retrieved from https://vi.wikipedia.org/wiki/T%E1%BA
%ADp_%C4%91o%C3%A0n_FPT

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