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 using
the formula:
 EBIT
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
Total accounting profit
before tax 5.263.457 6.337.206 7.662.283 9.203.006 11.069.666
EBIT 5.648.795 6.821.202 8.308.009 10.035.655 11.621.305

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) nearly

doubled from VND 5.6 trillion in 2020 to VND 11.6 trillion in 2024, reflecting
strong operational performance. Similarly, total accounting profit before tax
increased from VND 5.3 trillion to VND 11.1 trillion over the same period,
underscoring consistent earnings growth and operational efficiency.

While loan costs rose from VND 385 billion in 2020 to a peak of VND 833
billion in 2023, they declined to VND 552 billion in 2024, indicating improved
financial management and potentially more favorable borrowing 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
Total accounting profit before
tax 383.280 253.979 -1.118.576 -2.149.826 -735.436
EBIT 414.765 290.198 -1.076.684 -2.114.087 -699.763

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
Total accounting profit before
tax 333.758 819.839 862.368 470.569 568.951
EBIT 351.703 845.319 891.872 498.518 596.375

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
Total accounting profit before
tax 89.367 112.524 86.748 174.927 128.176
EBIT 98.201 130.734 107.075 199.222 144.921

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
Total accounting profit before
tax 268.802 395.447 -56.487 -501.443 -12.770
EBIT 288.223 422.084 -25.912 -472.116 13.844
From 2020 to 2024, VNG’s financial health deteriorated significantly, showing
high financial risk and structural issues. While total assets grew modestly from
VND 7.87 trillion to VND 9.43 trillion, liabilities exploded by over 365%,
reaching VND 8.33 trillion. This debt-fueled expansion came at the cost of
equity, which dropped sharply by 82%, falling to just VND 1.11 trillion. The
company has recorded consistent losses since 2022, with EBIT turning from a
VND 415 billion profit in 2020 to a VND 700 billion loss in 2024. Its Debt-to-
Equity ratio reached an alarming 751%, far above the tech industry average of
233%. With such high leverage and ongoing losses, VNG faces serious
questions about its long-term solvency unless major restructuring occurs.

In contrast, Digiworld (DGW) demonstrates strong growth paired with financial

discipline. Assets rose from VND 3.07 trillion to VND 8.5 trillion—a 177%
increase—while equity grew from VND 1.16 trillion to VND 3.01 trillion,
maintaining a stable 35% equity-to-asset ratio. Though liabilities also increased,
the company kept its Debt-to-Equity ratio around 1.8x, well within industry
norms. EBIT steadily increased from VND 352 billion in 2020 to VND 596
billion in 2024, with loan costs remaining low and stable. This shows
Digiworld’s ability to manage growth efficiently without compromising
profitability or financial stability.

CMC takes a more conservative approach, focusing on steady, low-risk growth.

From 2020 to 2024, assets grew from VND 5.1 trillion to VND 7.72 trillion,
while equity increased every year, rising from VND 2.35 trillion to VND 3.59
trillion. Its equity-to-asset ratio, consistently around 45%, is the highest among
the three, reflecting low reliance on debt. EBIT improved from VND 98 billion
to VND 145 billion, and loan costs remained low, averaging about VND 18–20
billion per year. CMC’s cautious financial strategy results in moderate but
stable performance and strong long-term resilience.

Looking at the industry average across these three firms, total assets grew by
60%, but average equity declined—mostly due to VNG’s collapse. EBIT also
shrank significantly on average, from VND 288 billion in 2020 to just VND
13.8 billion in 2024. However, this average is misleading because Digiworld
and CMC remained profitable, while VNG pulled down the overall figures.

In summary, VNG is in financial distress with high leverage and ongoing losses,
Digiworld is a high-growth, well-managed company with solid financials, and
CMC is a financially stable, low-risk firm with consistent, if slower, growth.
Each reflects a different approach to capital management: aggressive for VNG,
balanced for Digiworld, and conservative for CMC.
3.3.3 A Comparative Financial Analysis of FPT and Its Industry Peers (2020–
2024)
Between 2020 and 2024, FPT Corporation consistently outperformed its industry
peers—represented by the average figures of VNG, Digiworld (DGW), and CMC—in
key financial areas including asset scale, capital structure, profitability, and financial
discipline.

1. Asset Growth and Scale Superiority

FPT’s total assets rose significantly from VND 41.73 trillion in 2020 to VND 72.00
trillion in 2024, reflecting its strategic growth and industry dominance. This more than
72% increase highlights its robust expansion capabilities and deep resource base.

In contrast, the average total assets of the peer group (VNG, DGW, CMC) grew from
VND 5.35 trillion to VND 8.55 trillion, a 60% increase, but by 2024 amounted to only
12% of FPT’s total assets. This stark disparity underscores FPT’s clear scale
advantage, giving it more capacity for investment, innovation, and operational
flexibility.

2. Capital Structure and Equity Resilience

FPT strengthened its equity base from VND 18.61 trillion in 2020 to VND 35.73
trillion in 2024, signaling strong internal funding capacity and sustained shareholder
value creation. The company maintained a healthy equity-to-asset ratio throughout the
period, indicative of a stable capital structure.

Meanwhile, the peer group average equity declined from VND 3.20 trillion to VND
2.57 trillion, a drop of approximately 20%. This erosion may result from accumulated
losses (especially in VNG), weaker retained earnings, or over-reliance on debt—
raising concerns over solvency and long-term capital adequacy.

3. Liability Management and Leverage Control

FPT’s total liabilities rose from VND 23.13 trillion in 2020 to VND 36.27 trillion in
2024. However, this increase was proportionate to equity growth, keeping its debt-to-
equity ratio within conservative bounds and ensuring a balanced financial structure.
This indicates prudent use of leverage and effective risk management.

In comparison, the peer group’s liabilities surged from VND 2.15 trillion to VND 5.98
trillion, nearly tripling in five years. Simultaneously, equity declined, resulting in a
sharp fall in the equity-to-liability ratio to just 0.43 by 2024. This reflects a
deteriorating capital cushion, higher financial vulnerability, and reduced capacity to
absorb shocks.

4. Profitability and Operational Efficiency

FPT delivered consistently strong operating results. EBIT increased from VND 5.65
trillion in 2020 to VND 11.62 trillion in 2024, while pre-tax profit rose from VND
5.26 trillion to VND 11.07 trillion. These robust earnings reflect FPT’s operational
efficiency and ability to generate high returns from its expanding asset base.

By contrast, the peer group exhibited volatile and weaker profitability. Their average
EBIT hovered around VND 288 billion in 2020, dipped into negative territory during
2022–2023, and recovered only slightly to VND 13.84 billion in 2024. Similarly,
average pre-tax profit declined from VND 268.8 billion in 2020 to a small loss of
VND 12.8 billion in 2024, driven largely by VNG’s negative performance.

Conclusion

FPT Corporation emerges as a financially superior and strategically disciplined leader

in Vietnam’s tech sector. With its dominant asset base, strong equity foundation,
prudent liability management, and sustained profitability, FPT has not only expanded
in size but also strengthened its financial resilience.

In contrast, its peers—though showing pockets of growth—face critical challenges:

VNG struggles with high leverage and losses, DGW pursues growth with moderate
risk, and CMC maintains stability but at a smaller scale. As a result, FPT holds a clear
and sustainable competitive advantage heading into 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 14.659 14.094 12.866 12.053 21.067

Earned ( TIE )

Financial 1.073 1.076 1.084 1.090 1.050

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

Between 2020 and 2024, FPT Corporation’s financial leverage strategy evolved
notably, as reflected in key indicators: Debt-to-Equity Ratio, Debt Ratio, and Equity
Multiplier. Together, these metrics illustrate FPT’s changing approach to debt
financing and capital structure optimization.

In 2020, FPT maintained a moderate leverage profile, with a Debt-to-Equity Ratio of

1.243, a Debt Ratio of 0.554, and an Equity Multiplier of 2.243. In 2021, all three
indicators peaked: the Debt-to-Equity Ratio rose sharply to 1.507, the Debt Ratio
increased to 0.601, and the Equity Multiplier climbed to 2.507. This sharp rise across
the board suggests a period of intensified borrowing, possibly to fund asset growth or
capitalize on strategic opportunities.

By 2022, FPT began to scale back its financial leverage. The Debt-to-Equity Ratio fell
to 1.037, the Debt Ratio declined to 0.509, and the Equity Multiplier slightly increased
to 2.623. The reduction in leverage continued into 2023 and 2024, with metrics
stabilizing: the Debt-to-Equity Ratio hovered at 1.014–1.015, the Debt Ratio at 0.503–
0.504, and the Equity Multiplier at approximately 2.014–2.015. This consistent
moderation signals a deliberate shift toward financial conservatism and balanced
capital structure.

This trend is further reinforced by FPT’s Times Interest Earned (TIE) ratio, which—
despite a dip from 14.659 in 2020 to 12.053 in 2023—surged to 21.067 in 2024. The
sharp rebound suggests improved earnings capacity and strengthened ability to service
debt, thus reducing financial risk. In parallel, the Financial Leverage Ratio remained
steady throughout the period, fluctuating slightly around 1.05–1.09, indicating
disciplined leverage management.

In conclusion, FPT’s financial leverage reached its highest point in 2021, followed by
a phase of correction and stability from 2022 onward. This transition highlights FPT’s
strategic pivot from aggressive debt-financed growth toward a more sustainable,
equity-supported model. The company’s improved solvency and controlled leverage
not only enhance its financial resilience but also strengthen its appeal to investors
amid Vietnam’s fast-evolving technology landscape.

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 14.841 15.846 -0.848 -16.098 0.520

Earned (TIE)

Financial 1.205 -1.771 1.309 1.388 1.260

Leverage
Ratio
Analysis of Consolidated Leverage Metrics (2020–2024)
Between 2020 and 2024, the consolidated entity experienced a notable transformation
in its financial leverage profile, as reflected through key indicators including the Debt-
to-Equity Ratio, Debt Ratio, Equity Multiplier, Times Interest Earned (TIE), and
Financial Leverage Ratio. Collectively, these metrics highlight an increasing reliance
on debt financing and reveal critical shifts in capital structure and financial risk
management.

The Debt-to-Equity Ratio saw a significant upward trajectory, rising from 0.673 in
2020 to 2.329 in 2024. This increase was particularly pronounced between 2022 and
2024, with the ratio jumping from 1.090 to 1.794 and then to 2.329. Such a sharp
climb suggests growing dependence on debt capital, potentially driven by expansion
or investment activities, but also signaling elevated financial risk due to higher fixed
obligations. A similar trend was observed in the Debt Ratio, which increased from
0.402 in 2020 to 0.700 in 2024. Notable accelerations occurred after 2022, indicating
a heavier use of debt to finance assets, reducing the equity cushion and increasing
vulnerability to market volatility.

The Equity Multiplier mirrored this leverage intensification, rising from 1.673 in 2020
to 3.329 in 2024, effectively doubling over the five-year span. This reflects a growing
gap between total assets and equity, meaning each unit of equity is backing a
substantially larger asset base. While this can enhance returns during profitable
periods, it also magnifies potential losses, underscoring increased financial leverage.
Despite the rising debt burden, the firm’s Times Interest Earned (TIE) ratio remained
relatively stable, moving only slightly from 1.074 in 2020 to 1.050 in 2024. However,
this stability is misleading, as the TIE remained close to 1 throughout the period—
indicating only marginal capacity to cover interest expenses. This narrow coverage
leaves the firm exposed to even minor declines in earnings, posing a significant risk to
debt servicing.

The Financial Leverage Ratio showed the most volatility. It began at 1.205 in 2020,
dropped sharply to -1.771 in 2021—suggesting the presence of a one-off loss or
negative earnings—then rebounded to 1.309 in 2022 and stabilized above 1.2 through
2024. The sharp decline in 2021 warrants further scrutiny but may represent an
isolated anomaly. The recovery in subsequent years indicates a partial return to
leverage stability, albeit at higher-than-2020 levels.

In summary, the consolidated data points to an aggressive shift toward debt-financed

growth between 2022 and 2024, marked by rising Debt-to-Equity, Debt Ratio, and
Equity Multiplier figures. While interest coverage remains steady, its low level signals
limited flexibility in earnings. The Financial Leverage Ratio further reveals a moment
of instability in 2021, followed by moderate normalization. Overall, this pattern
reflects a bold financing strategy that enhances growth potential but heightens
exposure to financial risk. For long-term sustainability, it will be critical to monitor
liquidity, profitability, and the company’s ability to withstand earnings volatility.

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 14,659 14,094 12,866 12,053 21,067
Times Interest Earned (TIE)-
Rivals 14,841 15,846 -0,848 -16,098 0,520
Financial Leverage Ratio-
FPT 1,073 1,076 1,084 1,090 1,050
 Financial Leverage Ratio-
Rival 1,072 1,067 0,459 0,942 -1,084

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

The debt-to-equity (D/E) ratio assesses the extent to which a company utilizes debt
relative to shareholders' equity to finance its operations. From 2020 to 2024, FPT’s
D/E ratio exhibited a steep upward trend, rising from 0.673 to 2.329. This sharp
increase highlights the company’s growing reliance on debt financing as part of its
capital strategy.

In contrast, rival firms maintained a more conservative and stable leverage profile.
Their D/E ratio began at 1.243 in 2020, peaked modestly at 1.507 in 2021, and
gradually declined to 1.015 by 2024, suggesting a deliberate move toward reduced
debt dependency.

The chart vividly depicts these divergent trajectories:

1.The blue line (FPT) climbs sharply—particularly from 2022 to 2024—indicating an

assertive leveraging approach.

2.The orange line (Rivals) peaks early and then levels off, pointing to a more cautious
or deleveraging posture.

By 2024, the contrast becomes most pronounced, with FPT’s D/E ratio (2.329)
exceeding twice that of its competitors (1.015). This widening gap implies that FPT
may be strategically leveraging favorable borrowing conditions, such as low interest
rates, to fund expansion or high-return investments.

However, while this approach can enhance returns during economic upswings, it also
elevates financial risk, particularly in volatile or tightening credit environments. The
difference in D/E ratios underscores two distinct financial philosophies: FPT’s
aggressive growth through leverage versus its rivals’ measured, risk-averse capital
management.
3.4.3.2 Debt Ratio: Dependency on Debt Financing

The debt ratio measures the proportion of a company’s total assets that is financed
through debt, with higher values indicating increased financial leverage and associated
risk. From 2020 to 2024, FPT’s debt ratio rose steadily, climbing from 0.402 to 0.700.
This marked a significant transformation in its capital structure, reflecting a growing
reliance on debt to support asset expansion.

In contrast, rival firms maintained a more stable and conservative profile. Their debt
ratio began at 0.554 in 2020, peaked modestly at 0.601 in 2021, and then gradually
declined to 0.504 by 2024. This suggests a possible strategic shift toward balance
sheet optimization or deliberate deleveraging efforts.

As illustrated in the chart, the green line (FPT) trends consistently upward,
highlighting an increasing dependency on debt financing. Meanwhile, the red line
(Rivals) curves downward after 2021, indicating a move toward financial prudence.
By 2024, the gap between the two reached 0.196 points (FPT: 0.700, Rivals: 0.504).

This divergence reflects two contrasting capital strategies:

1.FPT appears to be pursuing aggressive growth fueled by debt, which may enhance
returns during favorable market conditions but increases vulnerability in periods of
economic stress.

2.Rivals, on the other hand, are reinforcing their financial stability, possibly to
mitigate risk and improve long-term solvency.

In sum, FPT's rising debt ratio underscores a bold expansion approach, while
competitors signal a preference for cautious and sustainable financial management.
3.4.3.3 Equity Multiplier: Leverage Amplification of Equity

The equity multiplier (EM) serves as a broad indicator of financial leverage by linking
a company's total assets to its shareholder equity. It reflects the extent to which a
firm’s assets are financed by equity versus debt. From 2020 to 2024, FPT’s EM
increased significantly, rising from 1.673 to 3.329—nearly doubling over the five-year
span. This marks a clear upward trajectory in the company’s reliance on debt
financing.

In contrast, rival firms followed an opposite trend. Their EM began at 2.243 in 2020,
peaked at 2.507 in 2021, and gradually declined to 2.015 by 2024, indicating a shift
toward a more conservative capital structure.

This divergence is visually evident in the chart, where the purple line (FPT) climbs
steadily, while the brown line (Rivals) declines and flattens. A notable crossover
occurred in 2022, when both firms had nearly identical EM values (FPT: 2.090,
Rivals: 2.037). From that point onward, FPT's EM surged ahead, ending with a 1.314-
point lead by 2024.

The widening gap suggests that FPT is increasingly leveraging borrowed capital to
expand its asset base. This pattern aligns with previous observations in the Debt-to-
Equity and Debt Ratio metrics, reinforcing the conclusion that FPT is pursuing a more
aggressive financial leverage strategy. In contrast, rivals appear to have adopted a
more measured and risk-averse approach, focusing on maintaining a balanced capital
structure.

3.4.3.4 Time Interest Earned( TIE)

The Times Interest Earned (TIE) ratio measures a company’s ability to meet its
interest obligations using pre-tax earnings. A higher TIE ratio suggests greater
financial stability and a reduced risk of default.

Between 2020 and 2024, FPT consistently maintained strong interest coverage, with
TIE ratios ranging from 12.053 to 21.067. The company began with a healthy ratio of
14.659 in 2020, experienced a slight decline over the next three years to 12.053 in
2023, and then saw a notable rebound to 21.067 in 2024. This recovery indicates
improved earnings or reduced interest expenses, reinforcing FPT’s prudent financial
management and resilience in debt servicing.

In contrast, rival firms experienced extreme volatility in their TIE ratios. After a
strong start in 2020 (14.841) and 2021 (15.846), their ability to cover interest
obligations collapsed, with negative TIE ratios in 2022 (-0.848) and 2023 (-16.098)—
suggesting operating losses and serious financial stress. By 2024, although the ratio
recovered slightly to 0.520, it remained far below a safe threshold, indicating ongoing
vulnerability.

By 2024, the gap in TIE between FPT and its rivals had widened dramatically to
20.547 points (21.067 vs. 0.520), highlighting a stark contrast in financial health.
While FPT maintained a robust earnings buffer, its competitors faced severe
challenges, including insufficient income to cover debt costs.

This divergence underscores FPT’s superior financial flexibility, operational

efficiency, and lower exposure to financial distress. Meanwhile, the declining TIE
performance of rivals signals heightened sensitivity to interest rate fluctuations, debt
burdens, or unstable profitability—posing risks to their long-term financial
sustainability.
3.4.3.5 Financial Leverage Ratio

The Financial Leverage Ratio (FLR) measures the degree to which a firm uses debt to
finance its assets. Higher values reflect greater reliance on debt financing, which can
magnify both returns and risks.

From 2020 to 2024, FPT maintained a consistently stable and disciplined financial
leverage profile. The company’s FLR hovered in a narrow range, starting at 1.073 in
2020, peaking at 1.090 in 2023, and slightly decreasing to 1.050 in 2024. This modest
fluctuation reflects a cautious and well-controlled approach to debt usage. Even during
periods of business growth or capital investment, FPT avoided excessive leverage—
underscoring strong financial governance and a commitment to sustainable capital
structure management.

In stark contrast, rival firms exhibited highly erratic financial leverage behavior. After
beginning at a comparable 1.072 in 2020, their FLR dropped slightly in 2021 (1.067),
then collapsed to 0.459 in 2022 and 0.942 in 2023, before plunging into negative
territory at –1.084 in 2024. A negative FLR is a rare and alarming indicator,
suggesting the possibility of negative equity or major financial distress. Such extreme
volatility may reflect inconsistent earnings, rising debt burdens, or structural
weaknesses in financial planning.

By 2024, although the numerical difference between FPT (1.050) and rivals (–1.084)
appears narrow in absolute terms, the qualitative gap in financial stability is
substantial. FPT's leverage remained healthy and predictable, while its peers
demonstrated signs of heightened financial risk and potential long-term solvency
concerns.

This divergence reveals two distinct strategic approaches:

1.FPT has prioritized capital discipline and sustainable debt management, balancing
risk and growth effectively.
2.Rivals appear to have engaged in more reactive or aggressive financial strategies,
possibly driven by weaker earnings performance, undercapitalization, or urgent
funding needs.

In summary, FPT’s prudent use of leverage positions it favorably for enduring

economic fluctuations and rising interest rates. Meanwhile, rivals’ deteriorating FLR
trajectory raises questions about their financial resilience and long-term viability.

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: Strategic Divergence in Leverage Management

Taken together, the five financial leverage indicators—Debt-to-Equity Ratio, Debt

Ratio, Equity Multiplier, Times Interest Earned (TIE), and Financial Leverage Ratio
—offer a clear and coherent picture of diverging financial strategies between FPT and
its industry peers over the 2020–2024 period.

1.FPT’s Debt-to-Equity (D/E) ratio increased markedly by 1.656 points, from 0.673 in
2020 to 2.329 in 2024, signaling a significant shift toward debt-funded expansion. In
stark contrast, rivals exhibited a declining trend, underscoring a more conservative
and equity-centered capital strategy.

2.The Debt Ratio for FPT also rose notably—from 0.402 to 0.700—indicating that a
greater share of its assets is now financed through debt. Meanwhile, rivals slightly
reduced their debt ratio from 0.554 to 0.504, suggesting improved balance sheet
strength and reduced financial risk.

3.FPT’s Equity Multiplier nearly doubled over the period, reflecting a deliberate and
aggressive leverage strategy to scale assets. In contrast, industry peers maintained a
flatter, more restrained approach, avoiding overexposure to debt.

4.Despite rising leverage, FPT consistently maintained a robust Times Interest Earned
(TIE) ratio, improving from 14.47 to 20.99, which highlights its strong capacity to
service debt. Competitors, however, experienced substantial volatility in their TIE
ratios—at times dropping to critically low levels (e.g., 0.639 in 2021)—raising
concerns over earnings volatility and interest coverage.
5.Lastly, FPT’s Financial Leverage Ratio remained positive and stable, reflecting
disciplined and effective use of borrowed capital. In contrast, rivals displayed erratic
and even negative leverage ratios, pointing to irregular earnings performance and
inefficient debt utilization.

In sum, FPT has clearly adopted an ambitious, leverage-driven growth model, aiming
to capitalize on debt to accelerate expansion. This approach, while potentially
rewarding in periods of economic growth and favorable borrowing conditions, also
entails higher financial risk, especially amid rising interest rates or macroeconomic
instability. Sustained success under this model will depend on FPT’s ability to
efficiently allocate capital and maintain high returns relative to borrowing costs.

Meanwhile, rival firms appear to favor financial prudence, opting for capital discipline
and risk mitigation over rapid growth. This emerging divergence in financial
philosophy is likely to shape competitive dynamics, investor confidence, and long-
term resilience within Vietnam’s technology sector in the years to come.

3.5.Recommendation
Based on the financial leverage analysis from 2020 to 2024, each company within
Vietnam’s tech sector faces distinct capital structure challenges and strategic
opportunities. VNG requires urgent capital restructuring to address its high debt
burden. The firm should prioritize equity injections and debt refinancing to restore
balance and avoid financial distress. Digiworld, with its relatively balanced leverage
profile, should maintain prudent debt management while leveraging internal funds to
ensure sustained financial resilience. CMC, which benefits from a conservative capital
structure, could consider cautiously increasing its financial leverage to fund expansion
and enhance returns—provided it maintains overall financial stability. Meanwhile,
FPT stands on a strong equity foundation and steady growth trajectory. It should
continue disciplined liability management and pursue strategic investments to
consolidate its market leadership.

Across the sector, firms must strike a balance between growth and prudent use of
leverage. Strengthening equity bases, institutionalizing regular monitoring of leverage
ratios, and enhancing transparency in financial communication will be critical.
Tailored capital strategies, aligned with each firm’s risk tolerance and growth
objectives, will enable Vietnam’s tech companies to effectively manage market
volatility 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
Equity
( ROE) 7,99 6,65 -18,83 -53,02 -55,16
 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
Equity
( ROE)
( FPT) 19,99 21,67 22,71 23,39 23,93
Return on 13,99 20,37 8,40 -9,59 -9,99
Equity
( ROE)
 ( Rivals)

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
of Total
Leverage) -18,63 -0,38 -182,32 0,39 -2,19
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
(Degree of
Operating
Leverage) 2,74 -1,43 7,27 56,64 1,03
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 1,68 1,18 0,96 1,11 1,1
of Total
Leverage)
 ( FPT)
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.

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

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:

FPT Corporation – Financial Growth Table (2020–2024)

Indicator 2020 2021 2022 2023 2024
Revenue 29.922 35.671 44.023 52.625 62.849
Net Profit 4,4 5,3 6,4 7,7 7,849
Total Assets 41.734 53.698 51.650 60.283 72.000
Equity 18.606 21.418 25.356 29.933 35.728
Revenue
Growth 7,60% 19,50% 23,60% 19,50% 19,60%
Profit
Growth 10,00% 20,50% 20,80% 20,30% 20,80%
Asset
Growth 17,20% 28,70% -3,80% 16,70% 19,50%
Equity
Growth 14,80% 15,10% 18,40% 18,10% 19,40%

VNG Corporation – Financial Growth Table (2020–2024)

Indicator 2020 2021 2022 2023 2024
Revenue 6 7 7 7 7
Net Profit 75 -70 390 -1 -1
Total Assets 5,2 5,4 6 6,1 6,2
 Equity 4,3 4,4 4,1 3,8 3,6
Revenue
Growth — 8,20% 4,90% 2,50% 1,30%
Profit
Growth — — — — —
Asset
Growth — 3,80% 11,10% 1,70% 1,60%
Equity
Growth — 2,30% -6,80% -7,30% -5,30%

Digiworld Corporation (DGW) – Financial Growth Table (2020–2024)

Indicator 2020 2021 2022 2023 2024
Revenue 10,5 15 20 22 23
Net Profit 260 350 400 420 410
Total Assets 4,2 5 6,3 7 7,5
Equity 1,6 2 2,4 2,7 3
Revenue
Growth — 42,90% 33,30% 10,00% 4,50%
Profit
Growth — 34,60% 14,30% 5,00% -2,40%
Asset
Growth — 19,00% 26,00% 11,10% 7,10%

CMC Corporation – Financial Growth Table (2020–2024)

Indicator 2020 2021 2022 2023 2024
Revenue 5 6,2 7 7,8 8,2
Net Profit 250 280 350 370 400
Total Assets 3,8 4,2 4,7 5,3 5,8
 Equity 1,5 1,7 1,9 2,2 2,5
Revenue
Growth (%) — 24,00% 12,90% 11,40% 5,10%
Profit
Growth (%) — 12,00% 25,00% 5,70% 8,10%
Asset
Growth (%) — 10,50% 11,90% 12,80% 9,40%

Financial Ratio Averages (2020–2024)

Financial
Indicator FPT VNG DGW CMC
Revenue
Growth (%) 17,96% 4,23% 22,68% 13,35%
Profit Growth
(%) 18,48% — 12,88% 12,70%
Asset Growth
(%) 15,66% 4,55% 15,80% 11,15%
Equity Growth
(%) 17,16% -4,28% 17,15% 13,63%
Average
Revenue (Tỷ
VND) 45.018 7 20 6,84
Average Net
Profit (Tỷ
VND) 6,3298 78,536 395 330
Average Total
Assets (Tỷ
VND) 55.873 5,78 6,45 4,76
Average
Equity (Tỷ
VND) 26.208 4,04 2,525 1,96
 FPT vs Rivals – Transposed Financial Table (2020–2024)
Financial
Indicator 2020 2021 2022 2023 2024
Revenue
(FPT) 29.921,70 35.671,10 44.023,00 52.625,20 62.849,00
Revenue
(Rivals
Avg.) 7,25 9,24 11,28 12,27 12,77
Net Profit
(FPT) 4.400,00 5.300,00 6.400,00 7.700,00 7.849,00
Net Profit
(Rivals
Avg.) 195 186,7 380 263 270
Total Assets
(FPT) 41.734,30 53.697,90 51.650,40 60.282,80 71.999,90
Total Assets
(Rivals
Avg.) 4,40 4,87 5,67 6,13 6,50
Equity
(FPT) 18.605,70 21.418,00 25.356,10 29.933,00 35.727,50
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.

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

DEADLINE: 02/06

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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.