VIETNAM NATIONAL UNIVERSITY, HANOI
INTERNATIONAL SCHOOL
=============
TA HA LINH
PROJECT TITLE:
A study on Cash flow and Cash flow management at Gemadept corporation
from 2013 to 2023
Supervisor: Dr. Le Thi Thu Huong
Field of Study: Financial Management
Code: 8340202.01QTD
HANOI – 2024
DECLARATION
I declare that this thesis is my own work and it has not been submitted for any
degree or examination in any other university.
Author of the thesis
Ta Ha Linh
CONTENTS
DECLARATION.....................................................................................................1
INTRODUCTION...................................................................................................7
OBJECTIVES OF THE STUDY...........................................................................8
SCOPE OF THE STUDY.......................................................................................8
RESEARCH QUESTION AND METHODOLOGY............................................9
THESIS STRUCTURE...........................................................................................9
CHAPTER 1: THEORIES OF ENTERPRISES’ CASH FLOW AND CASH
FLOW MANAGEMENT......................................................................................10
1.1. Enterprises’ cash flow................................................................................10
1.1.1. Definition and types of enterprises’ cash flow...................................10
1.1.2. Contents of enterprises’ cash flow.....................................................13
1.2. The framework of enterprises’ cash flow management..............................17
1.2.1. Definition and objectives of cash flow management.........................17
1.2.2. Cash flow management in an enterprise............................................18
1.2.2.1. Cash flow management in 4 stages of company development.......18
1.2.2.2. Steps to conduct cash flow management........................................21
1.2.2.3. Cash flow plans..............................................................................22
1.2.2.4. Cash flow forecasting.....................................................................23
1.2.2.5. Cash flow budgeting......................................................................26
1.2.2.6. Selection of sources of cash and uses of cash................................27
1.2.3. Effective ways to measure cash flow performance in financial
management......................................................................................................29
1.2.3.1. Free cash flow (FCF):....................................................................30
1.2.3.2. Cash return on assets ratio:............................................................31
1.2.3.3. Cash return on equity ratio:............................................................32
1.2.3.4. Operating cash flow to current liabilities ratio:..............................32
1.2.3.5. Operating cash flow to total debt ratio:..........................................33
1.3. Factors affect enterprises’ cash flow..........................................................34
CHAPTER 2: CASH FLOW MANAGEMENT AT GEMADEPT
CORPORATION...................................................................................................38
2.1. The overview of the company....................................................................38
2.1.1. Introduction about the company:.......................................................38
2.1.1.1. Overall introduction of the company..............................................38
2.1.1.2. Significant milestones of Gemadept:.............................................40
2.1.2. The company’s business characteristics.............................................43
2.1.2.1. Business scopes and services:........................................................43
2.1.2.2. Organization chart and management structure:..............................44
2.1.3. The company’s financial performance...............................................45
2.1.3.1. Advantages and disadvantages:......................................................45
2.1.3.2. General review of the company’s financial situation in the period
from 2013 to 2023:........................................................................................47
2.1.3.3. A snapshot of the company’s financial performance:....................52
2.1.3.4. Gemadept’s ratios in comparison with Industry average ratios......58
2.1.3.5. Determine the development stage of Gemadept:............................60
2.2. The company’s cash flow and cash flow management...............................62
2.2.1. The company’s cash flow..................................................................62
2.2.1.1. Overview analysis of cash flow status at Gemadept in 3 years
2021, 2022 and 2023..................................................................................62
2.2.1.2. Analysis of cash flow ratios in three years from 2021 to 2023...67
2.2.2. The company’s cash flow management.............................................69
2.2.2.1. Gemadept’s cash flow management characteristic.........................69
2.2.2.2. Cash flow plans..............................................................................70
2.2.2.3. Selection of sources of cash and uses of cash................................74
2.2.2.4. Cash receipts and disbursement controls........................................77
2.2.3. Financial ratios measure the company’s efficiency of cash flow
management......................................................................................................80
2.2.3.1. Cash return on assets:.....................................................................80
2.2.3.2. Cash return on equity ratio:............................................................81
2.2.3.3. Operating cash flow to current liabilities ratio:..............................82
2.3. Assessment of the company’s cash flow management:..............................83
2.3.1. Advantages........................................................................................83
2.3.2. Factors affecting cash flow management at Gemadept......................84
2.3.3. Limitations and reasons.....................................................................85
CHAPTER 3: SOLUTIONS FOR IMPROVING CASH FLOW
MANAGEMENT AT GEMADEPT CORPORATION......................................88
3.1. The development strategies of Gemadept..................................................88
3.1.1. Port operations...................................................................................88
3.1.2. Logistics............................................................................................91
3.2. Solutions for improving cash flow management at Gemadept......................93
CONCLUSION....................................................................................................103
REFERENCES....................................................................................................105
