Son La Sugar JSC

Son La Sugar JSC maintains a strong liquidity position with a current ratio of 4.35, indicating ample short-term assets to cover liabilities. However, the company reported negative operating cash flow of -8,992.6 million VND, suggesting operational inefficiencies or seasonal cash flow challenges. Free cash flow of 202,001.36 million VND indicates the company is generating sufficient cash to fund operations and potentially reinvest in growth. The company's profitability is robust, with a return on equity of 21.66% and return on assets of 17.96%, both exceeding typical thresholds for the food processing industry. These metrics suggest efficient use of equity and assets to generate profit. Gross profit of 380,739.11 million VND and operating income of 380,518.99 million VND further support the company's strong profitability. Son La Sugar JSC's revenue is diversified across sugar production, fertilizer manufacturing, and the sale of agricultural and petroleum products. The company produced 13,755.65 tons of sugar and 7,810.7 tons of fertilizers in the 2011 fiscal year, indicating a balanced approach to its core and ancillary businesses. The sale of 1,658,613 liters of petroleum products adds another revenue stream, though it is relatively small compared to sugar and fertilizer sales. The company's growth trajectory is supported by its strong free cash flow and high returns on equity and assets. However, the negative operating cash flow raises concerns about short-term liquidity and operational efficiency. The company's capital expenditure of -33,221.18 million VND suggests ongoing investment in infrastructure or equipment, which could support future growth. Risk factors include medium liquidity risk due to the negative net cash position after subtracting total debt. The company's debt-to-equity ratio of 0.16 is relatively low, indicating a conservative capital structure with limited leverage. The risk of dilution is assessed as low, with no significant dilution potential reported. Recent events include the 2011 annual report, which details the company's production and sales figures, as well as its financial performance. The report highlights the company's focus on sugar and fertilizer production, along with its diversification into petroleum and agricultural product trading.