Post a Free Blog

Submit A Press Release

Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
Filter by Categories
Action
Animation
ATP Tour (ATP)
Auto Racing
Baseball
Basketball
Boxing
Breaking News
Business
Business
Business Newsletter
Call of Duty (CALLOFDUTY)
Canadian Football League (CFL)
Car
Celebrity
Champions Tour (CHAMP)
Comedy
CONCACAF
Counter Strike Global Offensive (CSGO)
Crime
Dark Comedy
Defense of the Ancients (DOTA)
Documentary and Foreign
Drama
eSports
European Tour (EPGA)
Fashion
FIFA
FIFA Women’s World Cup (WWC)
FIFA World Cup (FIFA)
Fighting
Football
Formula 1 (F1)
Fortnite
Golf
Health
Hockey
Horror
IndyCar Series (INDY)
International Friendly (FRIENDLY)
Kids & Family
League of Legends (LOL)
LPGA
Madden
Major League Baseball (MLB)
Mixed Martial Arts (MMA)
MLS
Movie and Music
Movie Trailers
Music
Mystery
NASCAR Cup Series (NAS)
National Basketball Association (NBA)
National Football League (NFL)
National Hockey League (NHL)
National Women's Soccer (NWSL)
NBA Development League (NBAGL)
NBA2K
NCAA Baseball (NCAABBL)
NCAA Basketball (NCAAB)
NCAA Football (NCAAF)
NCAA Hockey (NCAAH)
Olympic Mens (OLYHKYM)
Other
Other Sports
Overwatch
PGA
Politics
Premier League (PREM)
Romance
Sci-Fi
Science
Soccer
Sports
Sports
Technology
Tennis
Thriller
Truck Series (TRUCK)
True Crime
Ultimate Fighting Championship (UFC)
Uncategorized
US
Valorant
Western
Women’s National Basketball Association (WNBA)
Women’s NCAA Basketball (WNCAAB)
World
World Cup Qualifier (WORLDCUP)
WTA Tour (WTA)
Xfinity (XFT)
XFL
0
-- Advertisement --spot_img
HomeBusinessVinFast Auto Ltd. (NASDAQ:VFS) Faces Financial Challenges Despite Ambitious Goals

VinFast Auto Ltd. (NASDAQ:VFS) Faces Financial Challenges Despite Ambitious Goals

Add to Favorite
Added to Favorite


VinFast Auto Ltd. (NASDAQ:VFS) reported an earnings per share (EPS) of -$0.21, better than expected but with revenue falling short at $357 million.
The company experienced a significant gross loss of $224 million in Q2 2024, impacted by an impairment charge, leading to a stock price drop.
Financial ratios reveal a negative P/E ratio of -3.46, a liquidity concern with a current ratio of 0.32, and a negative debt-to-equity ratio of -0.49.

VinFast Auto Ltd. (NASDAQ:VFS) is a Vietnamese electric vehicle manufacturer that has been making waves in the automotive industry. The company aims to compete with established players like Tesla and NIO by offering a range of electric cars. Despite its ambitious goals, VFS faces significant financial challenges, as evidenced by its recent earnings report.

On November 7, 2024, VFS reported an earnings per share (EPS) of -$0.21, which was better than the estimated EPS of -$0.26. However, the company generated $357 million in revenue, falling short of the estimated $418.9 million. This shortfall in revenue highlights the company’s struggle to meet market expectations, which is a concern for investors.

The financial difficulties of VFS are further underscored by a gross loss of $224 million in the second quarter of 2024. This loss was largely due to an impairment charge on Net Residual Value amounting to $104 million. Following this announcement, the stock price dropped by 7.58%, closing at $3.66 per share on September 20, 2024, as highlighted by Pomerantz LLP.

VFS’s financial ratios paint a challenging picture. The company has a negative price-to-earnings (P/E) ratio of -3.46, indicating ongoing losses. Its price-to-sales ratio is about 6.41, suggesting that investors are paying $6.41 for every dollar of sales. The enterprise value to sales ratio is approximately 8.59, reflecting a high valuation relative to sales.

Liquidity concerns are evident with a current ratio of approximately 0.32, which is below the standard threshold of 1. This suggests potential difficulties in meeting short-term obligations. Additionally, the negative debt-to-equity ratio of about -0.49 indicates a higher level of liabilities compared to equity, further complicating the company’s financial standing.

Subscribe to get Latest News Updates

Latest News

You may like more
more

Arch Capital Group’s Market Outlook and Financial Performance

Michael Zaremski from Capital One Financial set a price...

Jazz Pharmaceuticals’ Financial and Operational Highlights

Earnings per Share (EPS) of $3.40, missing the estimated...

Clarivate Plc (NYSE:CLVT) Q3 Earnings Overview

Clarivate Plc reported a Q3 EPS of -$0.09128, missing...

Clean Energy Fuels Corp. (NASDAQ: CLNE) Financial Performance Review

Clean Energy Fuels Corp. (NASDAQ:CLNE) reported a revenue of...