Financial Evaluation Of A Specific Sme

Abstract

SMEs always play a significant role in economy. If they can receive more consideration from Government and other sectors about technologies, policies and human resource to encourage their development, they might bring enormous contribution to the economy. To understand a specific SME working and performance in current period, the group has chosen BAM Ltd. Company, which is considered as small company and works in distribution sector to evaluation in this research. The research begins with providing rationale of research, which depicts current situation and some feature of SMEs in Vietnam. Besides, the group conducts question and objectives for research. By using accounting measure- based study methodology such as common analysis financial statement, analysis ratios and comparing with industry, the group investigates financial performance of BAM from 2012 to 2014. After processing data and analysis, most of results denote that BAM’s performance is on the right track, which has revenue increase year-by-year and high liquidity. However, capital structure was not optimal because this company lack of long-term investment. Increasing in cost of goods sold and inefficient in management working capital is also threats that need to resolve. At the end of this research, the group also suggests some recommendation to help the company solve their weaknesses to develop better in the future.