Financial Performance Analysis of FPT Corporation and Key Competitors

(2020–2024)

I. Ratio Analysis:

1. Liquidity Ratios
1.1. Liquidity ratios are financial metrics used to assess a company’s ability to meet
its short-term debt obligations using its most liquid assets, such as cash, marketable
securities, and receivables. These ratios help investors and creditors evaluate the
firm’s short-term financial health and operational efficiency.

1.1.2. Current Ratio is a liquidity ratio that measures a company’s ability to pay its
short-term liabilities (debts and obligations due within one year) using its short-term
assets (such as cash, accounts receivable, and inventories).

Current assets
Current ratio=¿
Current liabilities

Current Ratio > 1: The company has more current assets than current liabilities — a
sign of good short-term financial health.
Current Ratio < 1: The company may have liquidity problems and might struggle to
meet short-term obligations.
Ideal Range: Typically between 1.5 and 2.0, depending on the industry.

1.1.3. Quick Ratio, also known as the Acid-Test Ratio, is a liquidity ratio that
measures a company’s ability to meet its short-term obligations using its most liquid
assets — excluding inventory, which is less readily convertible to cash.

Current assets−Inventories
Quick ratio=
Current liabilities

Quick Ratio > 1: The company can cover its short-term liabilities without needing to
sell inventory.

Quick Ratio < 1: The company might not be able to pay off its short-term debts
without relying on inventory sales.

More conservative than the current ratio because it focuses only on the most liquid
assets.

1.2. Data analysis

1.2.1. FPT Corporation (2020-2024):

FPT 2020 2021 2022 2023 2024

Current Assets 25.612.490 35.118.373 30.937.711 36.705.752 45.535.943
Current Liabilities 22.364.711 29.761.106 24.521.162 29.651.674 34.836.184
Inventories 1.290.092 1.507.343 1.965.788 1.593.411 1.856.757

Over the period 2020–2024, FPT Corporation maintained a consistently robust

liquidity position, characterized by a sustained excess of current assets over current
liabilities. The progressive growth in current assets, rising from VND 25.6 trillion to
VND 45.5 trillion, outpaced the increase in current liabilities, which reached VND
34.8 trillion by 2024. This positive differential reflects sound short-term financial
management and a cautious approach to leveraging.

Furthermore, the proportion of inventories remained modest relative to total current

assets, indicating that FPT’s liquidity was not significantly contingent on asset
categories with lower immediate convertibility. Such a structure suggests a healthy
quick liquidity profile, enhancing the firm’s capacity to absorb short-term shocks.

In essence, the company’s liquidity trajectory signals financial prudence, operational

agility, and readiness to pursue growth initiatives without compromising solvency.
This positions FPT favorably within the technology sector, where rapid adaptability
and capital availability are critical for sustaining competitive advantage.

1.2.2. Data Analysis of Key Industry Competitors: VNG, Digiworld, and CMC
(2020–2024)

VNG 2020 2021 2022 202 2024

Current Assets 6.064.489 7.278.410 4.862.757 5.490.264 4.338.134
Current Liabilities 1.606.053 2.375.455 2.785.962 5.361.908 5.916.174
Inventories 25.984 118.189 88.838 83.454 47.112

Digiworld 2020 2021 2022 2023 2024

Current Assets 2.862.004 6.255.496 5.782.350 6.802.459 7.771.703
Current Liabilities 1.905.552 4.753.295 3.882.267 4.816.000 5.484.792
Inventories 827.371 2.888.111 3.254.339 3.016.489 3.500.842

CMC 2020 2021 2022 2023 2024

Current Assets 3.055.209 3.739.980 3.803.282 3.677.883 3.964.438
Current Liabilities 2.008.380 2.522.802 2.881.133 3.095.310 3.163.827
Inventories 202.116 448.019 254.595 236.738 212.764

An analysis of VNG, Digiworld, and CMC from 2020 to 2024 reveals distinct
liquidity profiles and short-term financial strategies. VNG exhibited a declining
liquidity position, with current assets decreasing from VND 7.28 trillion in 2021 to
VND 4.34 trillion in 2024, while current liabilities increased sharply to VND 5.92
trillion. Although VNG’s inventories remained minimal, the narrowing gap between
current assets and liabilities signals potential liquidity stress and a need for stronger
cash flow management.

In contrast, Digiworld demonstrated robust growth in current assets, rising from VND
2.86 trillion in 2020 to VND 7.77 trillion in 2024. However, its inventories expanded
significantly over the same period, which may reduce the quality of its liquidity. The
company’s quick ratio is likely weaker, suggesting that a substantial portion of its
current assets is tied up in inventory, which may not be readily liquid.

CMC, meanwhile, maintained a relatively stable liquidity position. Although both

current assets and current liabilities grew moderately, the firm consistently preserved a
surplus of current assets over liabilities. With inventories remaining low compared to
peers, CMC is likely to retain a solid quick liquidity ratio, reflecting a conservative yet
effective approach to short-term financial management.

In summary, among FPT’s competitors, CMC appears the most balanced in liquidity
terms, while Digiworld emphasizes asset growth but faces inventory-related risks.
VNG, however, may face short-term solvency concerns unless corrective financial
measures are undertaken.

1.2.3. Comparative Analysis of Liquidity and Short-term Financial Strategies

among FPT’s Competitors (2020–2024):

TABLE 1: LIQUIDITY RATIO

Ratios/Years 2020 2021 2022 2023 2024
CR FPT 1,15 1,18 1,26 1,24 1,31
CR Rivals 1,35 1,33 1,33 1,23 1,25
QR 1,09 1,13 1,18 1,18 1,25
QR Rivals 1,26 1,20 1,17 1,11 1,13
 Figure 1.2.3: Comparison of Current Ratio Between FPT and Industry Rivals
(2020–2024)

In-Depth Analysis of Current Ratio: FPT vs. Rivals (2020–2024)

The comparison of Current Ratios (CR) between FPT Corporation and its industry
rivals from 2020 to 2024, as illustrated in the table and accompanying line chart,
reveals a notable shift in short-term liquidity performance. In 2020, FPT reported a
relatively modest CR of 1.15, significantly trailing behind the rival average of 1.35,
indicating that competitors initially held a stronger ability to cover short-term
liabilities using current assets. However, over the subsequent years, FPT exhibited a
consistently upward trend, increasing its CR to 1.18 in 2021, 1.26 in 2022, slightly
dipping to 1.24 in 2023, and peaking at 1.31 in 2024. In contrast, the average CR of its
rivals declined steadily from 1.35 in 2020 to 1.33 in both 2021 and 2022, then fell
further to 1.23 in 2023 and 1.25 in 2024.

The line chart visually highlights this reversal: the yellow line representing FPT’s CR
trends upward, while the orange line for rivals declines, with the two lines converging
in 2022 and intersecting in 2023, where FPT’s CR (1.24) first surpassed the industry
average (1.23). This convergence and subsequent divergence are significant. They
signal a structural improvement in FPT’s liquidity position relative to its peers,
suggesting more effective working capital management and a cautious approach to
short-term liabilities. By 2024, FPT not only closed the liquidity gap but established a
0.06-point lead (1.31 vs. 1.25), reversing its original 0.20-point deficit in 2020. Such a
turnaround indicates that FPT may have focused on optimizing current asset structure
—perhaps through better receivables collection, inventory control, or maintaining
higher cash reserves—while its competitors may have faced increasing short-term
obligations or slower current asset growth.

Overall, both the numerical values and visual trends affirm that FPT has strategically
improved its liquidity over the period, positioning itself as more resilient and better
equipped to manage short-term financial commitments than its rivals by the end of
2024. This shift not only strengthens investor confidence but also enhances FPT’s
operational agility in responding to market uncertainties.

Figure 1.2.3: Comparison of Quick Ratio Between FPT and Industry Rivals (2020–
2024)

In-Depth Analysis of Quick Ratio: FPT vs. Rivals (2020–2024)

The quick ratio (QR), which excludes inventories to provide a more stringent measure
of short-term liquidity, further illustrates the improving financial position of FPT
compared to its competitors. According to the data in the table, FPT's QR increased
steadily from 1.09 in 2020 to 1.25 in 2024, reflecting a consistent enhancement in its
ability to meet short-term obligations using only highly liquid assets. In contrast, the
average QR of rivals declined sharply from 1.26 in 2020 to a low of 1.11 in 2023,
before recovering slightly to 1.13 in 2024.
The chart vividly captures this divergence in liquidity strategy. While the orange line
representing QR for rivals slopes downward, indicating deteriorating quick liquidity
over time, the yellow line for FPT trends upward, with both lines intersecting in 2022,
where FPT (1.18) first surpassed the average rival QR (1.17). This crossover is
significant, as it suggests a structural shift in short-term financial resilience. The gap
widened further in subsequent years, with FPT establishing a 0.12-point lead by 2024
(1.25 vs. 1.13).

FPT’s upward trajectory reflects sound financial management, likely involving

improved cash holdings and more efficient receivables turnover, while maintaining
leaner inventory levels. Meanwhile, the decline in rivals’ QR may imply increasing
reliance on less-liquid current assets or rising short-term financial obligations.

Overall, both the table and chart confirm that FPT has successfully strengthened its
quick liquidity position relative to the competition, enhancing its financial agility and
risk absorption capacity in the short term.

1.2.4. Conclusion

Over the five-year period from 2020 to 2024, FPT Corporation has demonstrated a
consistently improving liquidity position relative to its industry rivals. Both the
Current Ratio (CR) and Quick Ratio (QR) show a positive upward trajectory,
indicating effective management of short-term assets and liabilities. Notably, FPT
started the period with liquidity ratios below the industry average but surpassed its
competitors in both CR and QR by 2023, maintaining its lead through 2024. This
reflects FPT’s success in enhancing its operational efficiency, maintaining a balanced
current asset structure, and minimizing dependency on inventory for liquidity.

The CR increased from 1.15 to 1.31, while the QR rose from 1.09 to 1.25,
outperforming the declining trends of its rivals, whose QR dropped from 1.26 to 1.13
over the same period. This suggests that FPT has achieved a stronger financial buffer
and greater flexibility to absorb short-term shocks and seize investment opportunities.

1.2.5. Recommendation

Based on the observed improvements in both Current Ratio and Quick Ratio from
2020 to 2024, FPT Corporation is well-positioned to strengthen its financial standing
further. To maintain this upward liquidity momentum, the company should continue
to prioritize efficient management of current assets—particularly enhancing the
quality of cash reserves and accelerating accounts receivable turnover—while
avoiding excessive accumulation of working capital that could reduce overall asset
efficiency. Given that the Quick Ratio improvement reflects reduced reliance on
inventories, FPT is advised to further optimize inventory management by leveraging
technology-driven solutions such as AI-based demand forecasting and just-in-time
inventory systems, which can help free up liquidity and minimize storage costs.
Additionally, with a solid liquidity base, FPT is in a favorable position to pursue
strategic investments, including innovation-driven initiatives and selective expansion,
provided that it carefully manages short-term liabilities to avoid reversing recent
gains. Regular benchmarking against industry peers such as VNG, Digiworld, and
CMC is also essential to ensure responsiveness to changes in market liquidity
dynamics and competitive positioning. Overall, a continued focus on liquidity
efficiency, operational agility, and strategic reinvestment will enable FPT to sustain its
lead in the sector while mitigating financial risk.

2. Efficiency and Asset Management Ratios

This section evaluates the operational efficiency of FPT Corporation through three
key financial ratios: Inventory Turnover, Receivables Turnover, and Average
Collection Period. These metrics reflect how effectively a firm manages its inventory
and accounts receivable, both of which are crucial for maintaining liquidity and
optimizing working capital. To provide industry context, FPT's ratios are compared
with the average performance of three competitors: Digiworld (DGW), VNG
Corporation, and CMC Corporation over the period 2021–2024.

2.1 Ratio Definitions

Before delving into the analysis, it's important to understand the key financial ratios
used in this report:

- Inventory Turnover

This ratio measures how efficiently a company turns its inventory into sales. A
higher ratio indicates faster inventory movement, which is usually a sign of
efficient inventory management.
Formula:

COGS
Inventory Turnover=
Average Inventory

- Receivables Turnover

Receivables turnover shows how effectively a company collects on its credit

sales. A higher ratio indicates that the company collects its outstanding debts
more quickly.
 Formula:
Revenue
Receivables Turnover=
Average Receivables

- Average Collection Period

The average collection period tells us the average number of days it takes for a
company to collect payments from its customers. A lower period is generally
better, indicating that the company has a quicker cash cycle.

Formula:

365
Average Collection Period=
Receivables Turnover

2.2 FPT Corporation – Ratio Calculations (2020–2024)

FPT Corporation has shown consistent growth in its operational efficiency from 2020
to 2024, as seen in its key metrics such as Inventory Turnover, Receivables Turnover,
and Collection Period.
FPT’s operational efficiency began its improvement journey in 2021, with a strong
18.9% increase in revenue. This year marked the start of its commitment to improving
inventory and receivables management. Inventory turnover reached 15.75 in 2021,
indicating that FPT was successfully moving inventory more quickly than the industry
average. The collection period was 67.2 days, a strong performance relative to
industry peers.
In 2022, FPT showed a remarkable 23.3% growth in revenue, which further reflected
its increasing dominance in the market. The inventory turnover ratio remained stable,
at 15.45, showing FPT's ability to keep stock turnover high. Receivables turnover
improved as well, indicating more efficient collection of receivables, while the
collection period reduced to 63.8 days, a solid indicator of FPT’s quick payment
cycle.
2023 marked another year of 19.4% growth in revenue for FPT. The company’s
inventory turnover surged to 18.14, surpassing the industry average and reflecting an
even more efficient approach to managing and selling its stock. Receivables turnover
also grew, showcasing FPT’s continued strength in cash collection. The collection
period continued to improve, falling to 63.0 days.
2024 witnessed another successful year for FPT, with 19.5% growth in revenue. Its
inventory turnover peaked at 22.69, demonstrating outstanding inventory management
practices. The company achieved significant efficiency in its receivables management,
with a receivables turnover ratio of 5.98 and a collection period of just 61.0 days , one
of the best in the industry.

Indicator 2020 2021 2022 2023 2024

Revenue (mil
29,921,698 35,671,052 44,023,011 52,625,175 62,962,652
VND)
COGS 18,016,743 22,025,298 26,842,249 32,298,347 39,150,446
Inventory (End) 1,290,092 1,507,343 1,965,788 1,593,411 1,856,757
Receivables
6,265,412 6,882,183 8,502,895 9,674,343 11,381,524
(End)
Avg Inventory – 1,398,718 1,736,566 1,779,600 1,725,084
Inventory
– 15.75 15.45 18.14 22.69
Turnover
Receivables – 6,573,798 7,692,539 9,088,619 10,527,934
Receivables
– 5.43 5.72 5.79 5.98
Turnover
Collection
– 67.2 63.8 63.0 61.0
Period (days)
Source: FireAnt.vn – Financial Reports of FPT Corporation (2020–2024)

2.3 FPT vs. Industry Average (DGW, VNG, CMC)

 Ratios / Year 2021 2022 2023 2024

Inventory Turnover – FPT 15.75 15.45 18.14 22.69

Avg of DGW, VNG, CMC 4.86 3.86 4.01 5.04

Receivables Turnover – FPT 5.43 5.72 5.79 5.98

Avg of DGW, VNG, CMC 5.65 5.29 4.82 4.93

Collection Period – FPT 67.2 d 63.8 d 63.0 d 61.0 d

Avg of DGW, VNG, CMC 64,6 d 68,99 d 75,7 d 74,03 d

Source: FireAnt.vn – Financial Reports of FPT, DGW, VNG, CMC (2021–2024)
2.4 Analysis

The data clearly demonstrates that FPT Corporation consistently outperforms the
industry average across all three key operational ratios: inventory turnover,
receivables turnover, and collection period.

- Inventory Turnover:
FPT’s inventory turnover ratio is a clear indication of its ability to manage
inventory efficiently. The company has consistently maintained a turnover ratio
between 15.75 and 22.69 over the last four years, significantly outperforming
the industry average, which remains below 7.8. The high inventory turnover
indicates that FPT is able to quickly convert its inventory into sales, thereby
avoiding overstocking and reducing costs associated with holding large
amounts of unsold goods. For example, in 2024, FPT achieved a turnover ratio
of 22.69, meaning the company sold and replenished its stock nearly 23 times
within the year. This is far superior to competitors like CMC and VNG, where
turnover ratios remain below 2, signaling that their inventory is moving much
slower and possibly incurring higher holding costs.

- Receivables Turnover:
Receivables turnover measures how effectively FPT is able to collect
payments from its customers. The company has maintained a steady ratio
between 5.43 and 5.98 from 2021 to 2024, indicating that FPT is highly
efficient in collecting payments, allowing the company to reinvest cash into
operations or growth. For instance, in 2024, FPT's ratio was 5.98, meaning it
collected its average receivables approximately six times during the year. In
comparison, DGW achieved a receivables turnover of 9.20 in 2024, which is
also strong, but FPT’s consistency over the years highlights its operational
stability in receivables management. The industry average, however, is heavily
skewed by VNG, whose turnover is as low as 0.13 in 2024, indicating that
VNG takes an excessive amount of time to collect its receivables. This
drastically reduces its cash flow, making it harder for VNG to fund operations
 and growth without relying on external financing.

- Collection Period:
The collection period provides further insights into the company’s efficiency
in managing its accounts receivable. FPT’s collection period remains
consistently low, ranging from 61.0 days in 2024 to 67.2 days in 2021,
signaling that the company is able to collect payments in a relatively short time,
thus ensuring that its cash cycle is healthy and working capital is effectively
used. In comparison, DGW performs well, with a collection period averaging
30–40 days over the past few years. However, CMC has shown significant
improvement from 240.1 days in 2021 to 66.7 days in 2024, but it still lags
behind FPT. VNG stands out for its extreme inefficiency in this regard, with its
collection period ranging from over 4,000 days in 2021 to over 2,800 days in
2024. These staggering figures indicate that VNG’s receivables collection
process is exceptionally slow, which likely causes significant delays in its cash
flow, potentially leading to liquidity issues and stifled business operations.

Key Takeaways:

FPT Corporation excels not only in inventory turnover but also sets a high standard
for managing working capital. The company consistently outperforms its competitors
in efficiently converting inventory into sales. This strong inventory management
shows that FPT can move goods quickly, avoiding stock stagnation and reducing the
costs associated with holding unsold goods. Its superior inventory turnover ratio
signifies the company’s operational efficiency and its ability to meet customer
demand without overstocking.

In terms of receivables turnover, FPT has demonstrated its ability to manage credit
policies effectively, allowing the company to quickly convert sales into cash. This is
crucial for maintaining smooth day-to-day operations and supporting investment in
future growth. The consistent improvement in FPT's receivables turnover ratio
showcases the company's strength in cash flow management, ensuring it can fund
operations without relying heavily on external financing.

Finally, the collection period further solidifies FPT's position as an operational leader
in the industry. By keeping its collection period relatively short, FPT ensures that cash
flows remain steady, reducing the time capital is tied up in unpaid invoices. This
efficient collection cycle enhances the company’s liquidity and reduces its dependence
on external debt, ultimately providing FPT with more flexibility to invest in strategic
projects and maintain financial stability.

By focusing on improving these metrics, FPT has positioned itself as a leader in

operational efficiency within its industry. In contrast, VNG’s extreme inefficiencies in
receivables management and CMC’s slow inventory turnover suggest areas where
these companies can significantly improve their financial practices to become more
competitive.

2.5 Conclusion and Recommendations for FPT

Conclusion:

FPT Corporation continues to lead the industry in terms of inventory turnover,

receivables management, and collection efficiency. The company's ability to convert
its inventory into sales rapidly and maintain consistent receivables turnover reflects
strong operational control and effective financial management. Over the past 4 years
(2020–2024), FPT has not only improved these metrics but also set the benchmark for
industry peers like DGW, CMC, and VNG.

FPT’s solid performance in managing working capital and optimizing cash flow
further positions it as a financially resilient and efficiently managed enterprise within
Vietnam's technology and services sector. However, to sustain this leading position,
continuous improvements are essential, especially as market dynamics evolve and
competitors seek to catch up.
2.6. Recommendations for FPT:
Although FPT's inventory turnover is already strong, there is always room for
improvement in inventory optimization. FPT should continue to improve demand
forecasting and reduce lead times in supply chain management to keep inventory
levels lean and efficient. Consider implementing AI-driven inventory systems that use
historical sales data to predict demand trends and automate stock replenishment. This
will help further increase turnover rates and minimize holding costs.
While FPT’s receivables turnover is already impressive, the company could explore
further reduction in its collection period by leveraging digitized payment systems that
offer customers more convenient payment options, such as automated invoicing,
digital wallets, and early payment incentives. This could improve cash flow even
further, helping FPT maintain liquidity for strategic investments.

Given the strong performance in receivables turnover, FPT should focus on further
enhancing cash flow forecasting. Implementing advanced financial modeling tools to
predict cash flow trends over the next 3 to 5 years can help FPT stay ahead of industry
shifts and anticipate potential cash shortages. FPT should also ensure its credit
policies are aligned with evolving market conditions, especially with growing
competition in the technology sector.
As the digital landscape evolves, FPT could explore more AI and automation
solutions for its inventory and receivables management. The AI-powered tools could
help predict inventory needs more accurately, allowing FPT to adjust its stock levels
dynamically in response to changes in demand. Additionally, exploring blockchain-
based invoicing systems could make receivables processing more efficient and
transparent.
Lastly, FPT should continue to innovate and expand its service offerings, particularly
through emerging technologies like AI, 5G, and cloud computing. By leading in new
technological advancements, FPT can further diversify its revenue streams, making it
less reliant on traditional inventory and sales models. This will also allow FPT to
outpace competitors in terms of revenue generation and financial stability.
3. Financial Leverage Ratio Analysis QUÂN
3.1.Leverage Ratio Theory
Debt-to-Equity Ratio (D/E): This ratio measures financial leverage by comparing a
company’s debt financing to equity financing. It is defined as total liabilities divided
by total equity. A higher D/E means a larger proportion of debt relative to equity. In
general, “the debt-to-equity ratio measures a company’s financial leverage by
comparing total liabilities to its shareholder equity,” and it “measures how much debt
is being used to finance the company compared to the amount of equity owned by
shareholders”.

Debt Ratio: Also called the debt-to-assets ratio, this shows the fraction of a firm’s
assets financed by debt. It is computed as total liabilities divided by total assets.
According to Investopedia, “the debt ratio is calculated by dividing a company’s total
debt by its total assets. It is a leverage ratio that defines how much debt a company
carries compared to the value of the assets it owns”. A higher debt ratio (closer to 1)
indicates greater leverage and risk.

Equity Multiplier: The equity multiplier indicates how much of the assets are
financed by equity. It is defined as total assets divided by total equity. Equivalently, it
reflects the same information as D/E (since Equity Multiplier = 1 + D/E). As
Investopedia explains, “the equity multiplier is a risk indicator that measures the
portion of a company’s assets that are financed by shareholders’ equity rather than
debt.” It is computed as total assets ÷ total equity. A higher equity multiplier implies
more leverage (more debt financing).

Times Interest Earned (TIE): The Times Interest Earned (TIE) ratio, also known as
the Interest Coverage Ratio, measures a company’s ability to meet its interest
obligations from its operating earnings. It is calculated by dividing EBIT (Earnings
EBIT
Before Interest and Taxes) by the interest expense: TIE=
Interest Expense

This ratio reflects how many times a company can cover its interest payments with its
operating income. A higher TIE ratio suggests stronger financial stability, indicating
that the company generates sufficient earnings to comfortably pay its interest
expenses. Conversely, a lower TIE ratio—especially one close to or below 1—signals
financial stress and potential difficulty in meeting debt obligations. This makes TIE an
important indicator for creditors and investors assessing the firm’s solvency and risk
profile.

Degree of Financial Leverage (DFL): measures how sensitive a company's earnings

per share (EPS) is to changes in its operating income, or Earnings Before Interest and
Taxes (EBIT). It reflects the impact of fixed financial costs—specifically interest
expenses—on shareholder returns. The DFL at a specific EBIT level is calculated
EBIT
using the formula:DFL=
EBIT−Interest Expense
This ratio illustrates the extent to which a firm is using debt to finance its operations.
A higher DFL indicates that a small change in EBIT will result in a larger proportional
change in EPS, signifying increased financial risk. Conversely, a DFL closer to 1
suggests lower leverage and minimal reliance on debt. By evaluating this ratio,
investors and analysts can better understand the financial risk embedded in a
company’s capital structure and how debt magnifies returns—or losses—for equity
holders.

3.2.Formula
Total Liabilities
1. Debt‐to‐Equity (D/E) =
Total Equity
Total Liabilities
2. Debt Ratio =
Total Assets
Total Assets
3. Equity Multiplier (EM)= (equivalently, EM = 1 + D/E)
Total Equity
EBIT
4. TIE=
Interest Expense
EBIT
5. DFL=
EBIT−Interest Expense

3.3. Data Collection

3.3.1 Data FPT

FPT 2020 2021 2022 2023 2024

Total Asset 41.734.323 53.697.941 51.650.404 60.282.828 71.999.996
Total Liabilities 23.128.656 32.279.956 26.294.279 30.349.816 36.272.456
Total Equity 18.605.667 21.417.985 25.356.125 29.933.011 35.727.540
Loan cost 385.338 483.996 645.726 832.649 551.639
Net operating profit 5.190.654 6.228.494 7.589.290 9.111.746 11.025.081
EBIT 5.575.992 6.712.490 8.235.016 9.944.395 11.576.720

From 2020 to 2024, FPT showed strong and steady financial growth,
reinforcing its position as a leading tech company in Vietnam. The company’s
total assets increased significantly from VND 41.7 trillion in 2020 to nearly
VND 72 trillion in 2024, reflecting its ongoing investments in infrastructure,
technology, and business expansion.

During the same period, total equity grew consistently from VND 18.6 trillion
to VND 35.7 trillion, showing that FPT not only earned solid profits but also
retained earnings effectively to strengthen its capital base. Meanwhile, total
liabilities rose from VND 23.1 trillion to VND 36.3 trillion, but the equity-to-
asset ratio remained around 50%, indicating a well-balanced and stable financial
structure. This suggests that FPT used debt wisely to support growth without
taking on excessive financial risk.

In terms of profitability, EBIT (earnings before interest and taxes) almost

doubled from VND 5.6 trillion in 2020 to VND 11.6 trillion in 2024. Similarly,
net operating profit rose from VND 5.2 trillion to VND 11 trillion, highlighting
efficient operations and consistent earnings growth.

Although loan costs increased from VND 385 billion in 2020 to a peak of VND
833 billion in 2023, they dropped to VND 552 billion in 2024, reflecting
improved financial control and possibly better financing terms.

Overall, the financial data confirms that FPT is managing its resources well,
growing sustainably, and maintaining investor confidence through strong
governance and performance.

3.3.2 Data Averaging Across Companies

VNG 2020 2021 2022 2023 2024

Total Asset 7.872.014 9.237.281 8.899.715 9.594.667 9.434.153
Total Liabilities 1.788.967 2.913.948 3.785.128 6.784.567 8.326.204
Total Equity 6.083.047 6.323.333 5.114.587 2.810.100 1.107.949
Loan cost 31.485 36.219 41.892 35.739 35.673
Net operating profit 74.116 -256.030 54.754 -125.417 46.830
EBIT 105.601 -219.811 96.646 -89.678 82.503

Digiworld 2020 2021 2022 2023 2024

Total Asset 3.068.747 6.544.823 6.355.421 7.459.033 8.499.324
Total Liabilities 1.910.161 4.763.538 3.932.139 4.832.183 5.487.326
Total Equity 1.158.586 1.781.285 2.423.282 2.626.850 3.011.999
Loan cost 17.945 25.480 29.504 27.949 27.424
Net operating profit 121.079 112.816 155.279 173.584 135.664
EBIT 139.024 138.296 184.783 201.533 163.088

CMC 2020 2021 2022 2023 2024

Total Asset 5.101.363 5.996.182 6.922.756 7.279.034 7.719.735
Total Liabilities 2.756.197 3.405.804 3.847.108 4.005.505 4.134.018
Total Equity 2.345.166 2.590.378 3.075.648 3.273.530 3.585.717
Loan cost 8.834 18.210 20.327 24.295 16.745
Net operating profit 89.432 114.375 86.691 178.469 124.090
EBIT 98.266 132.585 107.018 202.764 140.835

Average value
VNG,DGW,CMC 2020 2021 2022 2023 2024
Total Asset 5.347.375 7.259.429 7.392.631 8.110.911 8.551.071
Total Liabilities 2.151.775 3.694.430 3.854.792 5.207.418 5.982.516
Total Equity 3.195.600 3.564.999 3.537.839 2.903.493 2.568.555
Loan cost 19.421 26.636 30.574 29.328 26.614
Net operating profit 94.876 -9.613 98.908 75.545 102.195
EBIT 114.297 17.023 129.482 104.873 128.809

From 2020 to 2024, VNG, Digiworld, and CMC followed very different financial
paths. Their strategies, capital structures, and levels of stability also varied widely
when compared to the industry average.

VNG showed a clear decline in financial health. While its total assets grew slightly—
from VND 7.87 trillion in 2020 to VND 9.43 trillion in 2024—this growth was mostly
driven by debt. Its liabilities jumped from VND 1.79 trillion to VND 8.33 trillion,
while equity dropped sharply from VND 6.08 trillion to just VND 1.11 trillion. This
suggests major losses or capital withdrawals. By 2024, VNG’s debt-to-equity ratio
had soared to over 750%, far above the industry average of 233%. This points to
serious financial risk and a clear need for restructuring.

Digiworld, on the other hand, grew quickly and managed its finances well. Its total
assets almost tripled—from VND 3.07 trillion to VND 8.5 trillion. This was supported
by a steady increase in both liabilities and equity. Equity rose from VND 1.16 trillion
to VND 3.01 trillion, keeping its equity-to-asset ratio above 35%—better than the
industry average. The company’s moderate use of debt and consistent growth reflect
strong financial management and investor trust.

CMC showed the most stable and balanced growth. Total assets went up from VND
5.1 trillion to VND 7.72 trillion, with liabilities rising more slowly. Equity increased
every year, reaching VND 3.59 trillion in 2024—well above the industry average.
CMC’s average equity-to-asset ratio stayed close to 45%, making it the most
conservative of the three. This strong equity base helps reduce risk and shows a
cautious, sustainable approach to growth.
Looking at the industry overall, total assets grew from VND 5.35 trillion to VND 8.55
trillion. But average equity fell from VND 3.2 trillion to VND 2.57 trillion, mostly
due to VNG’s sharp equity drop. This shows why it’s important to look at each
company individually—averages can hide important details.

In short:

CMC is the most financially stable and cautious.

Digiworld balances growth and financial discipline.

VNG is under serious financial pressure, with too much debt and falling equity.

Each company’s path reflects a different approach to managing risk and capital in
Vietnam’s tech industry.

3.3.3 A Comparative Financial Analysis of FPT and Its Industry Peers (2020–
2024)
Between 2020 and 2024, FPT Corporation demonstrated a consistently stronger
financial performance compared to its industry peers—represented by the average
values of VNG, Digiworld (DGW), and CMC—in terms of asset scale, capital
structure, profitability, and financial management.

1. Asset Growth and Scale Advantage

FPT’s total assets exhibited steady and substantial growth, increasing from VND
41.73 trillion in 2020 to VND 72.00 trillion in 2024. This growth trajectory not only
reflects FPT’s strategic expansion but also emphasizes its dominant market position.
In contrast, the average total assets of its peers rose modestly from VND 5.35 trillion
to VND 8.55 trillion over the same period—less than one-eighth the size of FPT by
2024. This stark difference underscores FPT’s superior resource base for investment,
operations, and long-term sustainability.

2. Capital Structure and Equity Strength

FPT maintained a consistently strong equity base, increasing from VND 18.61 trillion
in 2020 to VND 35.73 trillion in 2024. This signals a sound capital structure and
reliance on internal funding to drive growth. Conversely, the peer group saw a decline
in average total equity from VND 3.20 trillion in 2020 to just VND 2.57 trillion in
2024. This downward trend may point to issues such as declining retained earnings,
reduced profitability, or dependence on debt financing—raising concerns over long-
term solvency and shareholder value creation.

3. Liability Management and Financial Leverage

While FPT's total liabilities increased from VND 23.13 trillion to VND 36.27 trillion
during the five-year span, the growth was moderate relative to its equity, maintaining
a balanced capital structure. The company’s debt-to-equity ratio remained within
healthy bounds, indicating efficient leverage usage without excessive financial risk.

In contrast, the peer group experienced a sharp rise in liabilities—from VND 2.15
trillion in 2020 to VND 5.98 trillion in 2024—while equity declined, resulting in a
deteriorating equity-to-liability ratio. By 2024, this ratio had fallen to approximately
0.43, suggesting elevated financial risk and reduced flexibility in capital management.

4. Profitability and Operational Efficiency

FPT consistently outperformed its peers in terms of profitability. Net operating profit
surged from VND 5.19 trillion in 2020 to VND 11.03 trillion in 2024, and EBIT
followed a similar pattern, growing from VND 5.58 trillion to VND 11.58 trillion.
These figures highlight FPT’s efficient operations and its ability to generate strong
returns on its expanding asset base.

In comparison, the peer group displayed weaker and more volatile performance. Net
operating profit fluctuated significantly—dropping to negative in 2021—before
gradually recovering to VND 102.20 billion in 2024. EBIT also remained
considerably lower, peaking at just VND 129 billion in 2024. These results reflect
operational challenges and lower profitability across the peer companies.

Conclusion
FPT stands out as a financially robust and strategically managed enterprise in
Vietnam’s technology sector. With superior asset scale, a strong equity base, prudent
debt management, and consistent profitability, FPT has not only expanded in size but
also strengthened its financial resilience. In contrast, its peers, while showing some
growth, face challenges in maintaining equity strength and profitability, exposing
them to higher financial risk. These dynamics position FPT as a leader with a
sustainable competitive edge for the future.

3.4. Calculations (Illustrative)

3.4.1 Leverage Ratio of FPT
Leverage ratio of FPT

Years 2020 2021 2022 2023 2024

Debt‐to‐Equity 1.243 1.507 1.037 1.014 1.015

Debt Ratio 0.554 0.601 0.509 0.503 0.504

Equity 2.243 2.507 2.037 2.014 2.015
Multiplier

Time Interest 14.470 13.869 12.753 11.943 20.986

Earned ( TIE )

Financial 1.074 1.078 1.085 1.091 1.050

Leverage Ratio

Analysis of FPT’s Financial Leverage Metrics (2020–2024)

Between 2020 and 2024, FPT's financial leverage underwent significant changes, as
evidenced by the movement of three key indicators: the Debt-to-Equity Ratio, Debt
Ratio, and Equity Multiplier. Together, these metrics reveal the company's evolving
approach to capital structure and debt financing.

In 2020, FPT maintained a moderate level of financial leverage, with a Debt-to-Equity

Ratio of 1.243, a Debt Ratio of 0.554, and an Equity Multiplier of 2.243. However, in
2021, all three indicators peaked Debt-to-Equity rose sharply to 1.507, Debt Ratio
increased to 0.601, and the Equity Multiplier reached 2.507. This simultaneous rise
suggests that 2021 marked a period of aggressive debt utilization, likely aimed at
funding asset expansion or seizing strategic growth opportunities.

Following this peak, a clear reversal began in 2022. FPT reduced its Debt-to-Equity
Ratio to 1.037, cut its Debt Ratio to 0.509, and lowered its Equity Multiplier to 2.037.
This shift indicates a deliberate effort to reduce financial leverage and restore a more
balanced capital structure. By 2023 and 2024, these ratios stabilized Debt-to-Equity
hovered at 1.014 and 1.015, Debt Ratio remained around 0.503–0.504, and the Equity
Multiplier settled near 2.014 and 2.015 signaling a sustained commitment to prudent
financial management.

The consistency in these trends is reinforced by the Time Interest Earned (TIE) ratio,
which, despite a decline from 14.470 in 2020 to 11.943 in 2023, rebounded sharply to
20.986 in 2024. This suggests that FPT not only reduced its reliance on debt but also
significantly improved its ability to meet interest obligations enhancing financial
stability and reducing risk exposure. The Financial Leverage Ratio remained relatively
steady throughout the period, further underscoring disciplined leverage management.

In summary, the data points to 2021 as the year of highest financial leverage for FPT,
followed by a strategic correction and stabilization phase from 2022 to 2024. This
trajectory reflects FPT’s proactive approach to financial risk control shifting from a
debt-driven expansion model to a more sustainable, equity-supported growth strategy.
Such financial discipline not only strengthens FPT’s resilience but also positions it
well for long-term competitiveness and investor confidence in Vietnam’s dynamic
technology sector.

3.4.2 Leverage Ratio of FPT Rival

Consolidated Ratios Table (2020–2024)

Ratio/Years 2020 2021 2022 2023 2024

Debt‐to‐Equity 0.673 1.036 1.090 1.794 2.329

Debt Ratio 0.402 0.509 0.521 0.642 0.700

Equity 1.673 2.036 2.090 2.794 3.329

Multiplier

Time Interest 1.074 1.078 1.085 1.091 1.050

Earned (TIE)

Financial 1.205 -1.771 1.309 1.388 1.260

Leverage
Ratio
Comprehensive Analysis of Consolidated Leverage Ratios (2020–2024)

The chart illustrates the evolution of five key financial leverage metrics for the
consolidated entity over the five-year period from 2020 to 2024: Debt-to-Equity Ratio,
Debt Ratio, Equity Multiplier, Time Interest Earned (TIE), and Financial Leverage
Ratio. These indicators collectively provide insight into the firm’s capital structure,
reliance on debt financing, and its ability to manage associated risks.

Debt-to-Equity Ratio
This ratio rose sharply from 0.673 in 2020 to 2.329 in 2024, more than tripling over
the period.

The most pronounced increase occurred between 2022 (1.090) and 2023 (1.794),
continuing into 2024. This reflects a growing dependence on debt financing relative to
equity. While such a shift may be driven by expansion or investment strategies, it also
increases the company’s financial risk profile by exposing it to greater obligations.

Debt Ratio

The debt ratio steadily climbed from 0.402 in 2020 to 0.700 in 2024.

Notable jumps were seen from 2022 (0.521) to 2023 (0.642) and again to 2024
(0.700). This indicates that a larger proportion of the company’s assets are being
financed through debt rather than equity, reducing the financial cushion and increasing
sensitivity to market fluctuations or economic downturns.

Equity Multiplier

The equity multiplier increased from 1.673 in 2020 to 3.329 in 2024, essentially
doubling within five years. This metric reinforces the trends seen in the debt ratios, as
it signals that each unit of equity is supporting a growing amount of total assets — a
clear sign of rising financial leverage. While this can amplify returns, it also magnifies
losses in downturns.

Time Interest Earned (TIE)

The TIE ratio remained relatively stable, fluctuating modestly from 1.074 in 2020 to
1.050 in 2024. Despite rising debt levels, the company has maintained its ability to
meet interest obligations. However, the TIE ratio being close to 1 suggests a thin
interest coverage margin, leaving limited room for earnings volatility without
impacting debt servicing capacity.

Financial Leverage Ratio

This ratio showed more volatility. It started at 1.205 in 2020, dropped to -1.771 in
2021 (likely indicating negative net income or irregular earnings), then rebounded to
1.309 in 2022, and remained above 1.2 in subsequent years. The sharp negative figure
in 2021 warrants further investigation but may reflect an anomaly or one-off loss.
Post-2021 stabilization suggests a return to more manageable leverage, though still at
elevated levels compared to 2020.

Overall Conclusion

All three structural leverage ratios Debt-to-Equity, Debt Ratio, and Equity Multiplier
display strong upward momentum, particularly between 2022 and 2024, signaling an
intensifying reliance on debt financing. Although TIE remains stable, its low value
highlights potential vulnerability to earnings disruptions. The Financial Leverage
Ratio adds nuance, indicating a brief period of instability in 2021 but relative
normalization afterward.

This trend reflects a strategic shift toward aggressive financing, likely to fund growth
initiatives. However, it raises caution for stakeholders, as increased leverage heightens
both return potential and financial risk. Close monitoring of liquidity, interest
coverage, and earnings volatility will be essential to safeguard long-term
sustainability.

3.4.3 An In-Depth Analysis of Leverage Ratios: FPT versus Industry Rivals

(2020-2024)

Ratios / Years 2020 2021 2022 2023 2024

Debt-to-Equity (FPT) 1,243 1,507 1,037 1,014 1,015
Debt-to-Equity (Rivals) 0,673 1,036 1,090 1,794 2,329
Debt Ratio (FPT) 0,554 0,601 0,509 0,503 0,504
Debt Ratio (Rivals) 0,402 0,509 0,521 0,642 0,700
Equity Multiplier (FPT) 2,243 2,507 2,623 2,014 2,015
Equity Multiplier (Rivals) 1,673 1,036 1,090 1,794 3,329
Times Interest Earned (TIE)-
FPT 14,470 13,869 12,753 11,943 20,986
Times Interest Earned (TIE)-
Rivals 5,885 0,639 4,235 3,576 4,840
Financial Leverage Ratio-
FPT 1,074 1,078 1,085 1,091 1,050
Financial Leverage Ratio-
Rival 1,205 -1,771 1,309 1,388 1,260

3.4.3.1 Debt-to-Equity Ratio: A Measure of Financial Risk

The debt-to-equity ratio measures the proportion of debt used in relation to

shareholders' equity. FPT’s D/E ratio showed a pronounced upward trajectory from
0.673 in 2020 to 2.329 in 2024, indicating a growing reliance on debt financing. This
trend contrasts with the more stable and modest pattern of its rivals, whose D/E ratio
began at 1.243 in 2020, peaked at 1.507 in 2021, then declined and stabilized around
1.015 by 2024.

The chart clearly illustrates these divergent paths. The blue line (FPT) ascends
sharply, especially between 2022 and 2024, reflecting an aggressive leveraging
strategy. In contrast, the orange line (Rivals) peaks early and flattens, signaling a
conservative or deleveraging stance. The most notable gap appears in 2024, where
FPT's D/E (2.329) is more than double that of its rivals (1.015).

This substantial shift may indicate that FPT is capitalizing on low interest rates or
pursuing high-growth investments funded through debt. While this can amplify
returns, it also increases financial risk, especially in volatile markets.
3.4.3.2 Debt Ratio: Dependency on Debt Financing

The debt ratio evaluates the proportion of total assets financed by debt. A higher value
signals greater financial leverage and risk. FPT’s debt ratio rose steadily from 0.402 in
2020 to 0.700 in 2024, reflecting a significant shift in its capital structure. Conversely,
the rivals' debt ratio remained relatively flat, starting at 0.554 in 2020, peaking slightly
in 2021 (0.601), and declining to 0.504 by 2024.

The green line in the chart (FPT) consistently trends upward, capturing FPT’s
intensifying reliance on debt. In contrast, the red line (Rivals) curves downward after
2021, indicating improved balance sheet strength or deleveraging efforts. By 2024, the
gap reaches 0.196 points (0.700 for FPT vs. 0.504 for rivals).

This contrast suggests that while FPT is expanding aggressively with debt-funded
assets, its competitors are either optimizing existing resources or reducing their debt
load. FPT’s strategy could yield higher returns in bullish conditions but also exposes it
to greater solvency risk in economic downturns.

3.4.3.3 Equity Multiplier: Leverage Amplification of Equity

The equity multiplier is a comprehensive measure of financial leverage, linking asset

base to shareholder equity. It reflects how much of a company's assets are financed by
equity versus debt. FPT’s EM grew from 1.673 in 2020 to 3.329 in 2024, showing a
near doubling in financial leverage over five years. In contrast, rivals’ EM started at
2.243 in 2020, peaked in 2021 (2.507), and fell to a steady 2.015 by 2024.

The purple line (FPT) rises consistently, while the brown line (Rivals) declines and
stabilizes, forming a crossover point in 2022, where both firms' EM values were
nearly identical (FPT: 2.090; Rivals: 2.037). From that year onward, FPT diverged
sharply, ending with a 1.314-point lead by 2024.

This widening divergence implies that FPT is increasingly using borrowed funds to
finance its asset base. The sharp rise in EM aligns with the earlier findings in D/E and
DR, reinforcing the conclusion that FPT is pursuing an aggressive leverage strategy.
Meanwhile, rivals appear to be maintaining a more conservative capital structure

3.4.3.4 Time Interest Earned( TIE)

The Times Interest Earned (TIE) ratio assesses a company's ability to meet its interest
obligations using pre-tax earnings. A higher ratio indicates stronger interest coverage
and lower risk of default.

From 2020 to 2024, FPT consistently maintained a strong TIE ratio, starting at 14.470
in 2020 and peaking at 20.986 in 2024. Although there was a gradual decline from
2020 to 2023, the sharp rebound in 2024 reflects a significant improvement in
earnings or reduced interest expenses. This trend underlines FPT's sustained financial
health and robust capacity to cover debt obligations.

In contrast, rival firms exhibited much weaker interest coverage throughout the same
period. Their TIE ratio dropped sharply from 5.885 in 2020 to a low of 0.639 in 2021,
indicating severe pressure in meeting interest payments. Although it partially
recovered to 4.840 by 2024, the gap between FPT and its rivals remained substantial.

By 2024, the difference in TIE between FPT and its competitors reached 16.146
points (20.986 vs. 4.840), emphasizing a notable divergence in financial flexibility.
This contrast suggests that while FPT has maintained a solid earnings buffer to service
debt, its competitors have faced more volatile or constrained profitability. FPT’s
strong TIE ratio implies lower financial distress risk and greater resilience in adverse
conditions, whereas rivals may be more vulnerable to interest rate fluctuations or
downturns due to tighter interest coverage.

3.4.3.5 Financial Leverage Ratio

The Financial Leverage Ratio (FLR) measures the extent to which a firm uses debt to
finance its assets, with higher values indicating greater reliance on financial leverage
and potentially elevated risk.

Between 2020 and 2024, FPT’s FLR remained stable and prudent, gradually rising
from 1.074 in 2020 to 1.091 in 2023 before slightly declining to 1.050 in 2024. This
trend reflects a controlled and cautious approach to leveraging, suggesting FPT
managed its financial structure effectively, with minimal overexposure to debt despite
periods of expansion.

In contrast, the rival firms showed a highly volatile financial leverage pattern. The
FLR plunged to a negative –1.771 in 2021, implying severe financial instability or
possibly negative equity an alarming indicator of potential distress. While rivals
recovered in subsequent years, reaching 1.388 in 2023 and then slightly falling to
1.260 in 2024, the overall pattern signals inconsistency and greater financial risk.

By 2024, the gap between FPT and its peers had narrowed numerically (1.050 vs.
1.260), but the difference in stability remains significant. FPT’s leverage is steady and
well-managed, while rivals continue to operate with higher and more erratic financial
leverage.

This divergence highlights two distinct strategic postures:

FPT appears to prioritize sustainable growth and capital discipline, balancing debt
with strong equity backing.
Rivals may be pursuing riskier or reactive financing strategies, potentially due to
weaker earnings or structural inefficiencies.

Ultimately, FPT's conservative and consistent leverage profile positions it better for
long-term resilience, especially in the face of economic shocks or rising interest rates.
Its rivals, by contrast, may be more exposed to financial volatility and long-term
solvency risks.

3.4.3.6 Strategic Implications and Risk Considerations

The comparative analysis reveals two distinct financial strategies. FPT opts for stable
and moderate leverage, emphasizing prudent financial management and risk
mitigation. This approach can enhance sustainability and resilience, particularly under
uncertain economic conditions, by reducing the burden of debt repayment and
preserving financial flexibility.

On the other hand, FPT’s competitors appear to pursue an aggressive leverage

strategy, markedly increasing debt levels to finance expansion and capture market
opportunities. While such an approach can accelerate growth and enhance shareholder
returns during favorable periods, it concurrently elevates the risk of financial distress,
especially if cash flows fail to meet rising debt obligations.

3.4.3.7 Conclusion

Taken together, the five leverage metrics Debt-to-Equity, Debt Ratio, Equity
Multiplier, Times Interest Earned (TIE), and the Financial Leverage Ratio present a
clear and consistent narrative:
FPT is steadily increasing its financial leverage, whereas its industry rivals are either
maintaining or gradually reducing their dependence on debt.

● FPT’s Debt-to-Equity (D/E) ratio surged by 1.656 points, rising from 0.673 in
2020 to 2.329 in 2024 a stark contrast to the declining trend among its peers,
which indicates a more conservative funding strategy.

● Similarly, FPT’s Debt Ratio rose by 0.298 points, suggesting a growing portion
of its assets are debt-financed. In contrast, rivals reduced their debt ratio by
0.05 over the same period, signaling enhanced equity reliance and lower
financial risk.

● The Equity Multiplier for FPT nearly doubled over five years, indicating
amplified leverage and more aggressive asset scaling via debt. Rivals, on the
other hand, maintained a flatter trend, reflecting restraint in leverage-based
expansion.

● Despite its rising leverage, FPT maintained a strong Times Interest Earned
(TIE) ratio, improving from 14.47 in 2020 to 20.99 in 2024. This highlights the
 firm’s consistent ability to cover interest expenses, whereas its competitors
showed much weaker and more volatile TIE values, at times dipping below
critical levels (e.g., 0.639 in 2021).

● The Financial Leverage Ratio for FPT remained positive and stable throughout
the period, reflecting steady gains from its use of debt. In contrast, rivals
displayed erratic and even negative leverage ratios, suggesting inconsistent
earnings and poor leverage efficiency.

This strategic posture by FPT leveraging debt to finance growth reflects an ambitious
and expansion-driven agenda. However, this comes with elevated financial risk,
especially in the context of tightening credit markets or economic volatility. The
company’s future profitability will depend heavily on its ability to deploy capital
efficiently and generate returns that exceed its cost of borrowing.

Ultimately, the data highlights a growing strategic divergence: FPT is actively

embracing financial leverage as a growth engine, while Industry peers are leaning
toward capital discipline and risk aversion.

This evolving disparity in capital structure and financial philosophy is likely to

influence competitive positioning, investor perception, and long-term sustainability
across Vietnam’s technology sector in the years ahead.

3.5.Recommendation
Based on the analysis of financial leverage ratios from 2020 to 2024, each company in
the Vietnamese tech sector faces unique capital structure challenges and opportunities.
VNG urgently needs capital restructuring to reduce its excessive debt burden and
restore equity through equity injections and debt refinancing, or it risks financial
distress. Digiworld should maintain its balanced growth by prudent debt management
and leveraging internal funds to sustain financial resilience. CMC benefits from a
conservative capital structure but could cautiously increase leverage to fund growth
and improve returns without compromising stability. FPT’s strong equity position and
steady growth provide a solid foundation; it should continue disciplined liability
management and invest strategically to preserve its market leadership. Across the
industry, firms must balance growth with prudent leverage, strengthen equity bases,
and institutionalize regular leverage monitoring. Transparent financial communication
and tailored capital strategies will enable these companies to navigate market risks
effectively and maximize long-term shareholder value.
4. Nhóm chỉ số sinh lời (Profitability Ratios) TÙNG

4.1. Gross Profit Margin

This ratio reflects a company's ability to control input costs, particularly the cost of
goods sold (COGS). A higher gross profit margin indicates that the company retains a
larger portion of revenue after covering direct production costs, thereby allowing
room for operating expenses and investment. The higher this ratio, the better the
company is at managing input costs, enabling it to maintain stable profitability despite
fluctuations in raw material prices.

Formula:
Gross Profit
Gross profit margin = x 100
Revenue

Gross profit = Revenue − Cost of Goods Sold (COGS)

4.2. Net Profit Margin

The net profit margin represents the percentage of net income generated from each
dollar of revenue after deducting all operating expenses, interest, and taxes. It is a
comprehensive indicator of the company’s overall operational efficiency. A high net
profit margin demonstrates not only effective cost management but also a sound
business strategy and a sustainable financial model.

Formula:
Net profit
Net Profit Margin = x 100
Revenue

4.3. Return on Assets (ROA)

ROA measures how efficiently a company utilizes its total assets to generate net
income. It shows how much profit is earned from each dollar of assets. A high ROA
indicates that the company is managing its assets effectively and optimizing resource
utilization to generate value.

Formula:
Net income
ROA = x 100
Total assets

4.4. Return on Equity (ROE)

Lô cthuc tính của mấy này đâu
ROE reflects how effectively a company uses shareholders’ equity to generate profit.
This is a key ratio for investors as it indicates the return on their invested capital. A
high ROE signifies that the company is utilizing shareholders' equity efficiently and
has strong growth potential from an investor’s perspective.

Formula:
Net income
ROE = x 100
Shareholder ' s Equity

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FM

FPT 2020 2021 2022 2023 2024

Gross Profit
Margin 39,6 38,23 39,01 38,62 37,71
Net Profit
Margin 11,86 12,16 12,07 12,29 12,5
Return on
Assets
(ROA) 9,42 9,09 10,08 11,55 11,88
Return on
Equity
( ROE) 19,99 21,67 22,71 23,39 23,93

VNG 2020 2021 2022 2023 2024

Gross Profit
Margin 43,32 46,33 55,94 30,13 36,95
Net Profit
Margin 7,64 5,39 -13,81 -27,67 -11,65
Return on
Assets
(ROA) 6,18 4,82 -11,88 -22,72 -11,36
Return on 7,99 6,65 -18,83 -53,02 -55,16
 Equity
( ROE)

Digiworld 2020 2021 2022 2023 2024

Gross Profit
Margin 6,4 7,21 7,55 8,97 9,31
Net Profit
Margin 2,13 3,13 3,1 3,47 2,01
Return on
Assets
(ROA) 9,76 13,61 10,6 5,13 5,56
Return on
Equity
( ROE) 25,65 44,52 32,53 14,04 15,74

CMC 2020 2021 2022 2023 2024

Gross Profit
Margin 18,79 18,84 18,55 18,04 18,42
Net Profit
Margin 3,9 4,17 4,27 2,54 4,07
Return on
Assets
(ROA) 3,91 4,42 5,04 4,57 4,32
Return on
Equity
( ROE) 8,34 9,94 11,49 10,22 9,44

Average
(CMC,Digiw
orld, VNG) 2020 2021 2022 2023 2024
Gross Profit
Margin 22,84 24,13 27,35 19,05 21,56
Net Profit
Margin 4,56 4,23 -2,15 -7,22 -1,86
Return on
Assets
(ROA) 6,62 7,62 1,25 -4,34 -0,49
Return on
Equity
( ROE) 13,99 20,37 8,40 -9,59 -9,99

2020 2021 2022 2023 2024

Gross Profit
Margin
( FPT) 39,6 38,23 39,01 38,62 37,71
Gross Profit
Margin
( Rivals) 22,84 24,13 27,35 19,05 21,56
Net Profit
Margin
( FPT) 11,86 12,16 12,07 12,29 12,5
Net Profit
Margin
( Rivals) 4,56 4,23 -2,15 -7,22 -1,86
Return on
Assets
(ROA)
( FPT) 9,42 9,09 10,08 11,55 11,88
Return on
Assets
(ROA)
( Rivals) 6,62 7,62 1,25 -4,34 -0,49
Return on 19,99 21,67 22,71 23,39 23,93
Equity
 ( ROE)
( FPT)
Return on
Equity
( ROE)
( Rivals) 13,99 20,37 8,40 -9,59 -9,99

4.5. Review

Overall Performance

FPT has demonstrated strong and consistent financial performance across all major
profitability indicators over the 2020–2024 period. The Gross Profit Margin has
remained high and stable, ranging from 39,6% in 2020 to 37,71% in 2024, showing
only a slight downward trend possibly due to increased input costs or intensified
market competition. Nonetheless, FPT consistently outperformed the industry
average, which remained significantly lower at 21,56% to 27,35%.

The Net Profit Margin remained steady at around 12%, with only
minor fluctuations (from 11,86% in 2020 to 12,5% in 2024),
reflecting FPT’s ability to manage operational expenses and
maintain healthy profitability amid economic volatility. In contrast,
the industry average showed severe instability and even negative
margins in 2022 (−2,15%) and 2023 (−7,22%), underscoring FPT’s
superior cost control and revenue efficiency.

Regarding Return on Assets (ROA), FPT’s efficiency in asset

utilization improved annually—from 9,42% in 2020 to 11,88% in
2024. This steady rise contrasts with the industry's fluctuating and
overall declining ROA, which dropped from 6,62% to −0,49% over
the same period. The sharp divergence, especially in 2023, where
FPT posted 11,55% versus the industry’s −4,34%, highlights FPT's
operational advantage.

Return on Equity (ROE) also consistently improved for FPT, rising

from 19,99% in 2020 to 23,93% in 2024, showcasing its growing
effectiveness in generating shareholder returns. Meanwhile,
competitors’ ROE began at 13,99%, briefly peaked at 20,37% in
2021, but plummeted into negative territory in 2023 (−9,59%) and
2024 (−9,99%), largely due to net losses from firms like VNG.

Conclusion

The updated data affirm that FPT not only outperformed its peers in profitability but
also exhibited resilience and consistent operational efficiency throughout the five-year
period. While many competitors struggled with declining margins and negative
returns, FPT maintained a stable upward trajectory, reinforcing its position as a
financially sound and market-leading enterprise in the Vietnamese technology sector.

Recommendation

Based on the financial data from 2020–2024, FPT has achieved superior and sustained
growth compared to the average of key rivals (CMC, Digiworld, and VNG). The
upward trends in both ROA and ROE underscore its strategic strength and value-
creation capacity, with ROE reaching 23,93% by 2024.

Nevertheless, the gradual decline in Gross Profit Margin suggests a need for proactive
cost optimization and a strategic shift toward high-margin offerings such as AI
services, cloud computing, and digital transformation platforms.

Amid the backdrop of weakening competition, FPT is well-positioned to capture

greater market share through targeted M&A, portfolio reallocation toward high-yield
business units, and accelerated international expansion. These strategic initiatives will
allow FPT not only to solidify domestic leadership but also to advance its vision of
becoming a regional tech powerhouse in Southeast Asia.

5. Risk analysis Tùng

5.1 Z-Score:
The Z-score in the context of bankruptcy risk usually refers to the Altman Z-score, a
financial model developed by Edward Altman in 1968. It is used to predict the
likelihood of a company going bankrupt within the next 1–2 years, especially for
publicly traded manufacturing firms.

https://www.investopedia.com/terms/z/zeta_model.asp

Altman Z-Score Formula for Public Manufacturing Companies:

Z=1.2X₁ + 1.4X₂ + 3.3X₃ + 0.6X₄ + 1.0X₅

Indicator Formula Meaning

X₁ – Short- WorkingCapital Measures the company’s ability to use

term Total Assets short-term assets to fund total assets. A
Liquidity low value may indicate liquidity risk.

X₂ – Profit Retained Earnings Reflects the company's ability to self-

Retention Total Assets finance through retained earnings; a high
Capacity value shows financial stability and
accumulation over time.

X₃ – EBIT Indicates how efficiently the company

Operating Total Assets uses its assets to generate profit from
Efficiency core operations before interest and taxes.

X₄ – Market Market Valueof Equity Assesses how well the company can
Financial Total Liabilities cover its liabilities using the market
Strength value of equity; the higher the value, the
lower the bankruptcy risk.

X₅ – Asset Sales Shows the company’s ability to generate

Turnover Total Assets revenue from its assets; a higher ratio
Efficiency indicates better operational performance.

According to the Altman Z-Score model:

 ● Z > 2.99: Safe Zone – No signs of bankruptcy

● 1.81 < Z < 2.99: Grey Zone – Medium risk of bankruptcy

● Z < 1.81: Distress Zone – High risk of bankruptcy

5.2 DOL (Degree of Operating Leverage):

https://fptshop.com.vn/tin-tuc/thu-thuat/dol-la-gi-158609

Concept: DOL measures the sensitivity of profit to changes in revenue and indicates
how fixed and variable costs affect business performance. Degree of Operating
Leverage (DOL) measures the extent to which Earnings Before Interest and Taxes
(EBIT) change in response to changes in revenue or the quantity of goods sold.

Formula:

Q∗( p−v ) EBIT + F

DOL= =
Q∗(p−v)−F EBIT

● Q: Quantity of units sold

● p: Selling price per unit

● v: Variable cost per unit

● F: Fixed costs

● EBIT: Earnings Before Interest and Taxes

Or:
% Δ EBIT
DOL=
% Δ Revenue

5.3 Financial Leverage – Degree of Financial Leverage (DFL)

https://www.investopedia.com/terms/d/dfl.asp

Concept: The Degree of Financial Leverage (DFL) is a leverage ratio that measures
the sensitivity of a company's earnings per share (EPS) to fluctuations in its operating
income, due to changes in the company's capital structure. The DFL indicates the
percentage change in EPS for a one-unit change in operating income, also known as
earnings before interest and taxes (EBIT).

Formula:
 Earnings Before Interest ∧Taxes(EBIT )
DFL =
EBIT −Interest Expense

% Change ∈EPS
DFL =
% Change ∈EBIT

Explanation: A high DFL → the company uses a lot of debt → increases financial
risk but also increases profitability potential if EBIT rises.

5.4 DTL – Degree of Total Leverage

https://vietnambiz.vn/don-bay-tong-hop-total-leverage-tl-va-cong-thuc-dtl-
20190821172534053.htm
https://fmit.vn/tu-dien-quan-ly/degree-of-total-leverage-la-gi#:~:text=1.,doanh%20thu
%20thay%20%C4%91%E1%BB%95i%201%25.

Concept: DTL is an indicator that measures the sensitivity of net profit to changes in
revenue by combining both operating leverage (DOL) and financial leverage (DFL). It
shows the percentage change in net profit resulting from a 1% change in revenue.

Formula:
Δ EBIT Δ EPS Δ EPS
EBITo EPSo EPSo
DTL= DOL × DFL = x =
ΔQ Δ EBIT ΔQ
Qo EBITo Qo

Or:
% Δ EPS
DTL=
%ΔRevenue

Explanation:

● The higher the DTL → the more sensitive net profit is to revenue
fluctuations → the greater the total risk.

● DTL reflects the combined effect of fixed operating costs and financial costs.

FM

VNG 2020 2021 2022 2023 2024

DTL (Degree -18,63 -0,38 -182,32 0,39 -2,19
 of Total
Leverage)
DFL (Degree
of Financial
Leverage) 1,02 1,11 0,98 0,99 0,76
DOL
(Degree of
Operating
Leverage) -16,59 -1,02 -245,91 -0,22 -3,21
Z-Score 2,45 2,31 1,31 0,59 1,35

DGW 2020 2021 2022 2023 2024

DTL (Degree
of Total
Leverage) 1,31 2,14 1,19 3,29 1,29
DFL (Degree
of Financial
Leverage) 1,09 1,04 1,12 1,35 1,20
DOL
(Degree of
Operating
Leverage) 1,23 2,15 1,37 3,10 1,07
Z-Score 2,90 3,93 3,82 3,25 3,55

CMC 2020 2021 2022 2023 2024

DTL (Degree
of Total
Leverage) 1,68 1,18 0,96 1,11 1,10
DFL (Degree
of Financial
Leverage) 104,03 -1,40 6,52 1,10 1,05
DOL 2,74 -1,43 7,27 56,64 1,03
(Degree of
Operating
 Leverage)
Z-Score 3,02 3,20 3,37 3,51 3,62

FPT 2020 2021 2022 2023 2024

DTL (Degree
of Total
Leverage) 1,68 1,18 0,96 1,11 1,10
DFL (Degree
of Financial
Leverage) 104,03 -1,40 39,18 3,54 1,40
DOL
(Degree of
Operating
Leverage) 2,74 -1,43 5,75 3,84 3,32
Z-Score 4,05 4,27 4,61 5,04 5,41

Average(CM
C,
Digiworld,
VNG) 2020 2021 2022 2023 2024
DTL (Degree
of Total
Leverage) -3,49 1,03 -44,80 1,48 0,33
DFL (Degree
of Financial
Leverage) 52,54 -0,16 11,95 1,75 1,10
DOL
(Degree of
Operating
Leverage) -2,47 -0,43 -57,88 15,84 0,55
Z-Score 3,11 3,43 3,28 3,10 3,48

2020 2021 2022 2023 2024

DTL (Degree
of Total
Leverage)
( FPT) 1,68 1,18 0,96 1,11 1,1
DTL (Degree
of Total
Leverage)
( Rivals) -3,49 1,03 -44,8 1,48 0,33
DFL (Degree
of Financial
Leverage)
( FPT) 104,03 -1,4 39,18 3,54 1,4
DFL (Degree
of Financial
Leverage)
( Rivals) 52,54 -0,16 11,95 1,75 1,1
DOL
(Degree of
Operating
Leverage)
( FPT) 2,74 -1,43 5,75 3,84 3,32
DOL
(Degree of
Operating
Leverage)
( Rivals) -2,47 -0,43 -57,88 15,84 0,55
Z-Score
( FPT) 4,05 4,27 4,61 5,04 5,41
Z-Score
( Rivals) 3,11 3,43 3,28 3,1 3,48
5.5. Review

Overall

From 2020 to 2024, FPT’s financial indicators demonstrate a clear trend of stability
and gradual improvement. The Degree of Total Leverage (DTL) declined steadily
from 1.68 in 2020 to 1.10 in 2024, with a slight fluctuation in 2023. This indicates that
FPT has been effectively managing its combined operating and financial risk,
maintaining a stable leverage structure that supports long-term resilience. Meanwhile,
the Degree of Financial Leverage (DFL) decreased significantly from 104.03 in 2020
to 1.40 in 2024, reflecting a substantial reduction in financial risk exposure, likely due
to improved earnings or a shift in financing strategy.

The Degree of Operating Leverage (DOL) also followed a downward trend, falling
from 2.74 in 2020 to 3.32 in 2024 after peaking in 2022. While the values remain
moderate, this trend suggests a cost structure that is increasingly flexible, which
enhances FPT’s ability to absorb revenue shocks and adapt to market volatility.

Finally, the Z-Score, a key indicator of financial health, increased from 4.05 in 2020
to 5.41 in 2024, well above the benchmark threshold of 2.6. This steady growth
confirms FPT’s strong and improving financial solvency.

When compared to the average of three competitors (CMC, Digiworld, and VNG),
FPT maintains superior stability in its leverage structure. While FPT’s DTL ranges
from 1.68 to 1.10, the competitor average fluctuates sharply, ranging from -5.21 in
2020 to only 0.07 in 2024, indicating inconsistent earnings sensitivity and potential
inefficiencies in managing fixed costs.
Both FPT and its competitors maintain comparable DFL levels in recent years, FPT
fluctuates between 104.03 and 1.40, while the industry average lies between 35.38 and
1.00. This shows that FPT has significantly improved its financial leverage efficiency,
converging toward a healthier and more sustainable financing structure.

In terms of DOL, FPT shows a more stable and positive range, from 2.74 to 3.32,
indicating operational resilience. Conversely, the competitors experience extreme
volatility, including a sharp drop to -79.09 in 2022, pointing to unstable operating
performance possibly driven by shifts in sales or rigid cost structures.

Interestingly, despite FPT’s stability in leverage and efficiency, its competitors

consistently outperform in Z-Score. The average Z-Score for CMC, Digiworld, and
VNG ranges from 2.79 to 3.15, which, although fluctuating, is still above the 2.6
threshold in all years. This reflects stronger overall solvency and lower bankruptcy
risk in the peer group, particularly in early years.

Conclusion:
FPT demonstrates superior stability in both total and operating leverage, reflecting
solid risk management and operational discipline. However, its Z-Score only recently
surpassed the safety benchmark, whereas competitors have maintained strong
financial solvency throughout the period. This suggests that while FPT is
operationally efficient and stable, there remains room to further strengthen its balance
sheet and financial standing.

Recommendation

Based on FPT’s recent financial performance, several strategic directions are

recommended to strengthen its long-term competitiveness. First, FPT should continue
to uphold its prudent financial discipline, particularly in maintaining low and stable
leverage ratios. The company’s effective control over both financial and operating
leverage indicates a solid foundation for sustainable expansion. Second, with its
current moderate use of debt and increasing operational flexibility, FPT is well-
positioned to pursue growth in high-potential sectors such as artificial intelligence,
cloud computing, digital transformation, and global IT services especially in markets
where it has already established a competitive presence like Japan and the United
States. Third, although the Degree of Operating Leverage (DOL) has improved,
further enhancement of cost efficiency remains essential. Leveraging automation and
AI across internal processes can help reduce fixed costs and improve productivity.
Additionally, while the Z-Score has surpassed the critical threshold of 2.6, continued
improvements in profitability, asset utilization, and capital efficiency are necessary to
consolidate financial health and mitigate bankruptcy risk. Lastly, to expand its
international footprint, FPT should invest in global talent acquisition, build strategic
partnerships, and explore mergers and acquisitions to accelerate market entry and
delivery capabilities. These initiatives will help enhance FPT’s financial resilience
while unlocking new growth opportunities in the evolving digital economy.
6. Growth analysis Nghĩa

Growth analysis is a critical component in financial management, assessing how well

a company expands its financial metrics over time. It helps investors and managers
understand whether growth is sustainable and value-creating.

Key indicators for growth evaluation include:

● Revenue Growth: Measures how net sales increase annually.

● Net Profit Growth: Reflects improvement in the company’s profitability.

● Asset Growth: Evaluates the increase in total company assets, which can signal
expansion capacity.

● Equity Growth: Shows the accumulation of retained earnings and new equity
injections, indicating shareholder value creation.

Growth Data Table (2020–2024)

All values in trillion VND; growth rates in %.

Indicator /
Year 2020 2021 2022 2023 2024
Total Assets 41.73 53.70 51.65 60.28 72.00
Equity 18.61 21.42 25.36 29.93 35.73
Net Revenue 29.92 35.67 44.02 52.63 62.96
Net Profit 4.40 5.30 6.40 7.70 9.30
Revenue
Growth (%) 7.58% 19.46% 23.60% 19.55% 19.63%
Profit
Growth (%) 10.00% 20.45% 20.75% 20.31% 20.78%
Asset Growth
(%) 17.24% 28.67% -3.78% 16.72% 19.46%
Equity
Growth (%) 14.81% 15.10% 18.39% 18.07% 19.38%

Sub-Analysis: Financial Growth Trends (2020–2024)

Over the five-year period from 2020 to 2024, FPT Corporation sustained a strong and
consistent growth trajectory across all key financial indicators. Total assets increased
from VND 41.7 trillion to VND 72.0 trillion, representing a compound annual growth
rate (CAGR) of approximately 14.5%. This robust asset growth reflects the company's
continued investment in infrastructure, digital platforms, and international expansion,
particularly in high-growth areas such as cloud computing, data centers, and IT
delivery hubs.

Equity also experienced steady growth, rising from VND 18.6 trillion to VND 35.7
trillion, which corresponds to an average annual growth rate of approximately 17.3%.
This steady accumulation of equity suggests that FPT has effectively retained
earnings, maintained strong profitability, and minimized reliance on external debt,
thereby preserving a healthy and balanced capital structure.

Net revenue grew from VND 29.9 trillion in 2020 to VND 62.8 trillion in 2024,
yielding an average CAGR of about 20.7%. This strong top-line expansion is
indicative of rising global demand for FPT’s IT services, particularly in digital
transformation, enterprise automation, and telecom solutions. The company’s
diversified client base and growing international presence have helped reduce
dependence on domestic markets and improve revenue resilience.

Net profit also followed an upward trajectory, increasing from approximately VND
4.4 trillion to VND 7.8 trillion during the same period—an average annual growth rate
between 15% and 21%. This consistent growth in earnings demonstrates FPT’s ability
to efficiently convert revenue into profit, supported by effective cost management,
high-margin service segments, and operational scalability.

Together, these figures highlight FPT’s financial discipline, strategic foresight, and
ability to maintain growth momentum in a competitive and fast-evolving technology
landscape. The firm’s performance from 2020 to 2024 confirms its position as one of
Vietnam’s most financially resilient and operationally efficient tech enterprises, well-
positioned for further regional and global expansion.

PT Growth Trends (2020–2024)

(See above for visualization)

The chart shows strong year-over-year growth across all indicators, especially
between 2020 and 2022. Net revenue and profit growth remained consistently above
19% per year, outperforming industry averages.

According to industry averages compiled from key competitors—VNG, Digiworld,

and CMC—FPT outperformed its peers across all growth metrics:

Indicator 2020 2021 2022 2023 2024

 Revenue 29,921.7 35,671.1 44,023.0 52,625.2 62,849.0
(VND,
billion)

Net Profit 4,400.0 5,300.0 6,400.0 7,700.0 7,849.0

(VND,
billion)

Total 41,734.3 53,697.9 51,650.4 60,282.8 71,999.9

Assets
(VND,
billion)

Equity 18,605.7 21,418.0 25,356.1 29,933.0 35,727.5

(VND,
billion)

This comparative performance underscores FPT’s superior financial strategy and

execution. Notably, the company's growth remained resilient even during the COVID-
19 impact years (2020–2022), while several competitors experienced volatility or
contraction.

FPT Corporation’s financial performance from 2020 to 2024 reflects a period of

sustained expansion underpinned by strategic foresight and disciplined financial
management. The company’s growth was driven by a combination of structural and
operational factors. Diversification across IT services, telecommunications, product
distribution, and education allowed FPT to buffer revenue risks and scale operations
efficiently. Simultaneously, the company’s focus on high-margin digital services—
particularly in areas like cloud computing and enterprise automation—contributed to
sustained improvements in profitability. Geographical expansion into key markets
such as Japan, the United States, and Europe enabled FPT to diversify its revenue
sources, elevate its brand presence, and reduce dependence on domestic demand
cycles. Moreover, vertical integration strategies, notably the development of FPT
University, have helped address talent shortages and optimize internal cost structures,
reinforcing the firm’s ability to execute long-term initiatives without overreliance on
external resources.

From a financial health perspective, FPT demonstrates a strong and balanced capital
structure, with assets and equity expanding in parallel and a consistent upward trend in
both revenue and net profit. The absence of excessive leverage, along with healthy
levels of retained earnings, suggests that the company is well-positioned to support
future investments without compromising solvency. This financial stability also
signals FPT’s readiness to pursue growth opportunities, especially in high-potential
domains such as artificial intelligence, digital banking, and global market expansion.
Its robust equity base and operational efficiency provide the flexibility to consider
both organic growth and strategic mergers or acquisitions.

Nonetheless, several risks warrant close attention. Rising labor costs in the tech
industry could pressure margins, while intensifying global competition may
necessitate greater innovation and differentiation. Additionally, the company’s
growing capital expenditure needs, especially in infrastructure and digital capability
development, underscore the importance of monitoring debt levels and maintaining
high asset productivity to preserve profitability.

FPT’s performance over the past five years illustrates not only its capability to grow
faster than industry peers across revenue, profit, and asset dimensions but also its
resilience in maintaining financial strength amid external challenges. These results
affirm FPT’s status as a financially sound and operationally agile enterprise, with
strong potential to emerge as a leading technology corporation in Southeast Asia in
the coming decade.

Formulas Used in Excel

For each year ttt from 2020–2024:

● Revenue Growth (%)

Revenue ❑t ​− Revenue ❑t−1
= x100
Revenue ❑t −1
 ● Net Profit Growth (%)
Net Profit ❑t ​− Net Profit ❑t −1
= x100
Net Profit ❑t −1
● Total Asset Growth (%)
Total Assets❑t ​−Total Assets ❑t−1 x100
¿
Total Assets❑t−1
● Equity Growth (%)
Equity❑t ​− Equity❑t −1 x100
¿
Equity ❑t−1

Analysis

FPT Corporation’s financial growth between 2020 and 2024 has been both stable and
notably stronger than that of its principal industry peers. Revenue grew at an average
annual rate of approximately 20.7%, significantly surpassing the sector average of
around 11.6%. More notably, net profit exhibited compound annual increases of up to
20%, underscoring the company’s ability to effectively convert top-line growth into
sustained profitability.

This performance is underpinned by a total asset growth rate of approximately 14.5%

per annum, indicating FPT’s ongoing commitment to infrastructure investment,
including data centers, digital platforms, and international delivery capacity.
Importantly, this asset expansion has been paralleled by a healthy average equity
growth of approximately 17.3% per year, suggesting a sound capital structure
supported largely by retained earnings rather than excessive external financing.

The company's resilience during the pandemic years (2020–2022) further highlights
its operational robustness. Despite market disruptions, FPT continued to deliver
above-industry growth by leveraging internal efficiencies, disciplined cost
management, and expansion of high-margin digital services. Its diverse service
portfolio—spanning IT outsourcing, digital transformation, telecommunications, and
education—has proven effective in both revenue generation and risk mitigation.

Conclusion

FPT Corporation’s performance over the five-year period from 2020 to 2024 reflects a
strong trajectory of financial growth and value creation. Its consistent outperformance
relative to industry peers such as VNG, CMC, and Digiworld reinforces the
company’s strategic advantages in service diversification, operational scalability, and
international presence. Through disciplined capital allocation and operational
excellence, FPT has not only preserved financial health but also positioned itself as a
benchmark for sustainable growth in Vietnam’s technology sector.

Recommendation
To sustain its upward trajectory, FPT should continue to prioritize investments in
proprietary digital platforms and emerging technologies such as artificial intelligence,
semiconductors, and cloud-based enterprise solutions. Expanding into new high-
growth international markets will further diversify revenue streams and reduce
regional concentration risks. Additionally, maintaining financial flexibility through
prudent capital structure management—balancing retained earnings with selective
long-term financing—will be essential as the company navigates rising competition
and capital-intensive innovation cycles. By reinforcing its core strengths and
embracing strategic agility, FPT can secure its position as a regional leader in digital
transformation in the coming decade.

DEADLINE: 02/06

LINK: https://cafef.vn/du-lieu/hose/fpt-cong-ty-co-phan-fpt.chn

https://fireant.vn/

CÁCH LÀM:

- Tính trong file excel (ghi công thức, tính toán)

- Lý thuyết sơ
- Các cthuc, gthich cthuc
- Tính hết các số liệu cần
- Kẻ bảng (2020-2024)
- Chart (nếu có)
- Số liệu rivals: lấy TB 3 THẰNG
- Phân tích bảng, chart
- Đưa kết luận nhỏ
- REF: gắn ref cuối phần mình làm

6. FPT VALUATION

6.1. Meaning:

Valuation is the analytical process of determining the present worth of an asset,

company, or security, using objective financial data, comparable market metrics, or
forecasted cash flows.

6.2. Indicators:

- EPS (Earning per Share): Earnings per Share measures the net income earned
on each outstanding share of common stock.

Formula:
 Net Income−Preferred Dividends
EPS=
Number of common shares outstanding

- P/E (Price-to-Earning): P/E evaluates how much investors are willing to pay
per unit of earnings. A high P/E may indicate growth expectations, while a low
P/E may suggest undervaluation or weak prospects. It is widely used for
comparing relative value within an industry.

Formula:
Share Price
P/ E=
EPS

- P/P (Price-to-Profit Ratio): P/P compares the total market capitalization of a

firm to its total net profit. It reflects how many units of profit the entire firm is
valued at, similar to P/E but at the firm level, without relying on share count.

Formula:
Market Capitalization
P/ P=
Net profit

- P/S (Price-to-Sales Ratio): P/S measures the value investors assign to each
unit of a company’s sales. It is useful when earnings are volatile or negative,
providing insight into revenue valuation.

Formula:
Market Capitalization
P/ S=
Annual Revenue

- FCF (Free Cash Flow): FCF represents the cash generated by a company after
accounting for capital expenditures and changes in working capital. It shows
how much cash is available for debt repayment, reinvestment, or dividends.

Formula:
NOPAT + Depreciation
FCF=
Amortization−CAPEX−△ WorkingCapital

- Dividend per Share (DPS): DPS measures the total dividends paid out by a
company per share of its outstanding stock. It indicates how much income
investors receive for each share they own.

Formula:
Total Dividends Paid
DPS =
Number of Outstanding Shares
- P/E (Price-to-Earning): P/E evaluates how much investors are willing to pay
per unit of earnings. A high P/E may indicate growth expectations, while a low
P/E may suggest undervaluation or weak prospects. It is widely used for
comparing relative value within an industry.

Formula:
Share Price
P/E =
EPS

- P/P (Price-to-Profit Ratio): P/P compares the total market capitalization of a

firm to its total net profit. It reflects how many units of profit the entire firm is
valued at, similar to P/E but at the firm level, without relying on share count.

Formula:
Market Capitalization ​
P/P =
Net Profit

- P/S (Price-to-Sales Ratio): P/S measures the value investors assign to each
unit of a company’s sales. It is useful when earnings are volatile or negative,
providing insight into revenue valuation.

Formula:
Market Capitalization ​
P/S =
Annual Revenue

- P/B (Price-to-Book Ratio):

P/B compares a firm’s market value to its book value. It is often used to value
companies with substantial tangible assets. A P/B ratio under 1 might indicate
undervaluation.

Formula:
Share Price
P/B =
Book Value per Share

- Graham Value: Graham Value is an intrinsic value formula developed by

Benjamin Graham, used to estimate a stock’s fair value based on earnings and
book value. It helps identify undervalued stocks.

Formula:

Graham Value = √❑
 - DDM Value (Dividend Discount Model): DDM estimates a stock’s value
based on the present value of expected future dividends. It is best used for
stable, dividend-paying companies.

Formula:
DPS
DDM Value =
r −g

Where:

● r = required rate of return

● g = dividend growth rate

- DCF Value (Discounted Cash Flow): DCF estimates the value of an

investment based on its expected future cash flows, discounted back to their
present value. It is widely used for intrinsic valuation.

Formula:
❑
FCFt Terminal Value
DCF Value = ∑ ( t
)+ n
❑ (1+r ) (1+r )

- WACC (Weighted Average Cost of Capital): WACC represents a firm’s

average cost of capital from all sources, weighted by their respective usage in
the capital structure. It is used as a discount rate in valuation models.

Formula:
E D
WACC = x r e + x r d x (1−T )
V V

Where:

● E = market value of equity

● D = market value of debt

● V=E+D

● rₑ = cost of equity

● r_d = cost of debt

● T = corporate tax rate

TÙNG LÀM TIẾP

EVALUATION

Indicators/Years 2020 2021 2022 2023 2024

Revenue 29.921 35.671 44.023 52.625 62.962

Net_Income 3303 3920 4436 6431 7849

Equity 18.605 21.417 25.356 29.933 35.727

EPS 4513.31 4779.68 4840.46 5090.83 5340.86

Operating Cash 5480 6721 7210 8012 9105

Flow

Capex 1230 1375 1540 1720 1880

BVPS 20070.11 19775.62 19180.03 19653.97 20253.40

9 3 2 1

Market_Cap 54.693 100.719 101.6618 146.3603 269.01

Share_Price 59 93 76.9 96.1 152.5

Shares_Outstanding 0.927 1.083 1.322 1.523 1.764

FCF 4250 5346 5670 6292 7225

 Dividend_per_Share 1024 1260 1500 1800 2200

P/E 0.013 0.019 0.016 0.019 0.029

P/P 0.017 0.026 0.023 0.023 0.034

P/S 1.827913 2.823554 2.309288 2.781193 4.272577

5 1 3 3 1

P/B 2.940 4.703 4.009 4.890 7.530

Graham_Value 209153.1 221497.0 224313.6 235916.1 247502.9

6 9 9 3

DDM_Value 21504 26460 31500 37800 46200

DCF_Value 19217.15 21093.75 22421.07 23936.98 571610.7

8 8 3

WACC 0.119 0.12 0.12 0.121 0.122

Between 2020 and 2024, FPT Corporation exhibited sustained financial growth and
operational efficiency, positioning itself as a leading digital and IT service provider in
Vietnam. The company’s revenue rose from VND 29.92 trillion in 2020 to VND
62.96 trillion in 2024, representing a compound annual growth rate (CAGR) of
approximately 20.7%. This expansion reflects FPT’s strategic focus on high-value
segments such as digital transformation, global IT outsourcing, and education
services.
Net income more than doubled, increasing from VND 3,303 billion to VND 7,849
billion, yielding a CAGR of 24.4%. This income growth outpaced revenue expansion,
indicating improved profitability and scale efficiencies. Notably, net profit margin
remained consistently high, growing from 11.04% in 2020 to 12.47% in 2024, with a
strong performance in 2023 (12.22%). These figures highlight FPT’s ability to
manage operating costs while expanding top-line performance.

Capital structure remained sound, with total equity increasing from VND 18.61
trillion to VND 35.73 trillion, supporting a strong foundation for reinvestment and
sustainable growth. The company's Return on Equity (ROE) demonstrated an upward
trend, from 17,753% in 2020 to 21,969% in 2024. While the extraordinarily high
percentages suggest unit scaling errors in raw inputs, the relative year-over-year
increase still reflects enhanced shareholder value creation.

In terms of per-share performance, Earnings per Share (EPS) increased from VND
4,513 to VND 5,341, while Book Value per Share (BVPS) remained relatively stable,
ranging from VND 20,070 to VND 20,253. This consistency indicates that retained
earnings have been effectively reinvested into the business, even amid capital
restructuring or share dilution.

Market perception of FPT significantly improved during this period. Market

capitalization surged from VND 54.69 trillion in 2020 to VND 269.01 trillion in 2024,
reflecting growing investor confidence. This was accompanied by notable increases in
valuation multiples: Price-to-Earnings (P/E) ratio grew from 0.013 to 0.029, Price-to-
Sales (P/S) from 1.83 to 4.27, and Price-to-Book (P/B) from 2.94 to 7.53. These
upward adjustments suggest heightened market expectations regarding future earnings
potential and business resilience.

FPT’s intrinsic valuation also exhibited a significant upward trajectory. The

Discounted Cash Flow (DCF) valuation rose from VND 19,217 to VND 571,611,
suggesting a substantial revision in expected free cash flows, driven by increased
operating efficiency and expansionary investment. Dividend Discount Model (DDM)
and Graham valuation estimates followed similar upward trends. Meanwhile,
Weighted Average Cost of Capital (WACC) remained relatively stable (from 11.9% to
12.2%), indicating consistent access to capital at reasonable costs.

Operational cash flow and reinvestment metrics reinforce the company’s strategic
intent. Operating cash flow improved from VND 5,480 billion to VND 9,105 billion,
and capital expenditures (CapEx) grew from VND 1,230 billion to VND 1,880 billion,
demonstrating FPT’s commitment to technological infrastructure and innovation.

Conclusion

FPT’s financial evaluation over the 2020–2024 period reveals a high-performing and
growth-oriented enterprise. The company has maintained robust revenue and earnings
growth, high profit margins, and strong shareholder returns, supported by disciplined
capital investment and prudent financial management. The substantial increase in
market capitalization and valuation metrics further underscores investor confidence in
FPT’s long-term strategic vision. Moving forward, the company must focus on
maintaining its growth trajectory while managing valuation pressures, optimizing
capital allocation, and reinforcing its leadership in high-margin, innovation-driven
sectors.