1. Overview of Vietnam National Reinsurance Corporation.

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Presentation transcript:

1. Overview of Vietnam National Reinsurance Corporation

Charter capital: 1,088,276,640,000 vnd Head office: 141 Le Duan Street, Hoan Kiem District, Hanoi

Business activities: - Reinsurance business and transfer - Investment in accordance with the law.

II. Analysis of VNR’s Earnings Per Share:

In comparison with some firms of the same sector such as PVI, BIC, …, EPS of VINARE is not very high

III. Analysis of VNR’s other measurements: 1.Short-term solvency measures 2.Long-term solvency measures 3.Asset Management Measures 4.Profitability Ratios

1. Short-term solvency measures 1.1. Current ratio and Quick Ratio Current RatioQuick Ratio Rc (2009) = Rq (2009) = Rc (2010) = Rq (2010) = Rc (2011) = Rq (2011) =

1. Short-term solvency measures => High value of current ratio and quick ratio in VINARE, which indicates potential capacity to liquidate the assets and settle the short-term payments if necessary

1. Short-term solvency measures 1.2. Cash Ratio: Compared to other companies in the same sector (BIC, PVI…), VNR seems to own higher Cash Ratio with the value of nearly 1 in 2009 and 2010

2. Long-term solvency measures 2.1. Total Debt Ratio: VNR TDR (%) (2009) (2010) (2011)  a stable increase in the total debt ratio of VINARE through 3 years in consideration.  the firm has to use more and more leverage and the more risk it is taking on

2. Long-term solvency measures 2.2. Long-term Debt Ratio: VNR LDR (%) (2009) (2010) (2011)  a tendency to increase its long-term debt ratio  worrying factor

2. Long-term solvency measures 2.3. Long-term Debt – Equity Ratio: VNR LD/ER (%) 23.52% (2009) (2010) (2011) => the company has been more aggressive in financing its growth with debt

3. Asset Management Measures 3.1. Total Asset Turnover (TAT): VNR TAT (%) (2009) (2010) (2011)  the TA mean = , which is somehow higher than the TAT mean of companies in Banking – Insurance sector (about 0.12).  efficient in using its assets to generate revenue

3. Asset Management Measures 3.2. Fixed Asset Turnover (FAT) FAT (2009) = FAT (2010) = FAT ( 2011) = => increasing ability to generate net sales from fixed-asset investments.

4. Profitability Ratios 4.1. Profit Margin: VNR PM (%) (2009) (2010) (2011) => the ability to gain profit of VINARE is very good

4. Profitability Ratios 4.2. Return on Assets : VNR ROA (%) 7.64 (2009) 8.09 (2010) 8.86 (2011) => VINARE is quite efficient in converting the money it has to invest into net income

4. Profitability Ratios 4.3. Return on Equity VNR ROE (%) (2009) (2010) (2011) => Good ability of the corporation to gain profit

References Fundamentals of Corporate Finance (McGraw- Hill, Irwin – 2003)