Balance Sheet Statement (PhP in Million)

Fiscal Year End Assets

Cash & Equivalent Receivables Inventories Other Cur Assets Total Cur Assets Gr Fixed Assets Accum Depr Net Fixed Assets Oth Non-Cur Asset Tot Non-Cur Asset Total Assets

12/2012

12/2011

12/2010

12/2009

2,038.00 3,527.00 1,582.00 6,328.00 13,475.00 21,068.00 9,459.00 11,609.00 6,387.00 17,996.00 31,471.00

4,102.00 3,438.00 1,697.00 6,630.00 15,867.00 18,127.00 7,461.00 10,666.00 2,347.00 13,013.00 28,880.00

4,165.00 3,723.00 1,293.00 4,503.00 13,684.00 14,262.00 5,775.00 8,487.00 1,564.00 10,051.00 23,735.00

1,463.00 3,116.00 2,004.00 1,514.00 8,097.00 11,792.00 4,321.00 7,471.00 1,936.00 9,407.00 17,504.00

Liabilities
Accounts Payable Short-Term Debt Other Cur Liab Total Cur Liab Long-Term Debt Defer Inc Taxes Oth Non-Cur Liab Tot Non-Cur Liab Total Liabilities Preferred Equity Common Equity Retained Earnings Total Equity Tot Liab & Stk Eq 1,244.00 159.00 4,401.00 5,804.00 702.00 1,387.00 201.00 2,290.00 8,094.00 0.0 23,377.00 17,952.00 23,377.00 31,471.0 1,407.00 322.00 4,291.00 6,020.00 448.00 1,076.00 2,041.00 3,565.00 9,585.00 0.0 19,295.00 15,984.00 19,295.00 28,880.0 969.00 389.00 3,505.00 4,863.00 728.00 997.00 275.00 2,000.00 6,863.00 0.0 16,872.00 13,975.0 16,872.00 23,735.0 864.00 346.00 2,409.00 3,619.00 400.00 620.00 725.00 1,745.00 5,364.00 0.0 12,140.00 9,557.00 12,140.00 17,504.0

Income Statement (PhP in Million)

Fiscal Year End

Revenues/Sales Cost of Sales Gr Oper Profit S, G & A Expenses Op Prof bef Depr Deprec & Amort Oper Inc aft Depr Other Income, Net Inc Avail for Int Interest Expense Pretax Income Income Taxes Net Inc Tot Ops Special Inc/Chrg Normalized Income Total Net Income Preferred Div Net Inc Avail Com

12/2012
26,273.00 9,337.00 16,936.00 5,585.00 11,351.00 2,807.00 8,544.00 792.00 9,171.00 34.00 9,137.00 3,069.00 6,068.00 -165.00 6,233.00 6,068.00 0.0 6,068.00

12/2011
25,070.00 7,753.00 17,317.00 5,238.00 12,079.00 2,192.00 9,887.00 799.00 10,686.00 27.00 10,659.00 3,714.00 6,945.00 0.0 6,945.00 6,945.00 0.0 6,945.00

12/2010
20,847.00 7,276.00 13,571.00 4,130.00 9,441.00 1,888.00 7,553.00 406.00 7,959.00 25.00 7,934.00 2,777.00 5,157.00 0.0 5,157.00 5,157.00 0.0 5,157.00

12/2009
16,202.00 6,432.00 9,770.00 3,139.00 6,631.00 1,379.00 5,252.00 415.00 5,667.00 29.00 5,638.00 2,072.00 3,566.00 0.0 3,566.00 3,566.00 0.0 3,566.00

Based on the given financial statements, compute for the following financial ratios for each year:

a. Working Capital b. Debt-equity ratio c. Quick ratio d. Current ratio e. Debt to Equity Ratio
f. Assets Turnover Ratio

g. Receivable turn-over h. Inventory turn-over i. Return on Equity j. Return on Invest ent k. Return on asset

Meaning of Financial Management

!inancial "anage ent eans planning# organi$ing# directing and controlling the %inancial activities such as procure ent and utili$ation o% %unds o% the enterprise. It eans applying general anage ent principles to %inancial resources o% the enterprise.
Scope/Elements

&. Invest ent decisions includes invest ent in %i'ed assets (called as capital budgeting). Invest ent in current assets are also a part o% invest ent decisions called as *orking capital decisions. +. !inancial decisions - ,hey relate to the raising o% %inance %ro various resources *hich *ill depend upon decision on type o% source# period o% %inancing# cost o% %inancing and the returns thereby. -. Dividend decision - ,he %inance anager has to take decision *ith regards to the net pro%it distribution. .et pro%its are generally divided into t*o/ a. Dividend %or shareholders- Dividend and the rate o% it has to be decided. b. Retained pro%its- 0 ount o% retained pro%its has to be %inali$ed *hich *ill depend upon e'pansion and diversi%ication plans o% the enterprise.
Objectives of Financial Management

,he %inancial anage ent is generally concerned *ith procure ent# allocation and control o% %inancial resources o% a concern. ,he objectives can be&. ,o ensure regular and adequate supply o% %unds to the concern. +. ,o ensure adequate returns to the shareholders *hich *ill depend upon the earning capacity# arket price o% the share# e'pectations o% the shareholders. -. ,o ensure opti u %unds utili$ation. 1nce the %unds are procured# they should be utili$ed in a'i u possible *ay at least cost. 2. ,o ensure sa%ety on invest ent# i.e# %unds should be invested in sa%e ventures so that adequate rate o% return can be achieved. 3. ,o plan a sound capital structure-,here should be sound and %air co position o% capital so that a balance is aintained bet*een debt and equity capital.
Functions of Financial Management

&. Estimation of capital requirements: 0 %inance anager has to ake esti ation *ith regards to capital require ents o% the co pany. ,his *ill depend upon e'pected costs and pro%its and %uture progra es and policies o% a concern. Esti ations have to be ade in an adequate anner *hich increases earning capacity o% enterprise. +. Determination of capital composition: 1nce the esti ation have been ade# the capital structure have to be decided. ,his involves short- ter and long- ter debt equity analysis. ,his *ill depend upon the proportion o% equity capital a co pany is possessing and additional %unds *hich have to be raised %ro outside parties.

-. Choice of sources of funds: !or additional %unds to be procured# a co pany has choices likea. Issue o% shares and debentures b. 4oans to be taken %ro banks and %inancial institutions o% bonds.

any

c. 5ublic deposits to be dra*n like in %or Choice o% %actor *ill depend on relative %inancing. 2.

erits and de erits o% each source and period o%

nvestment of funds: ,he %inance anager has to decide to allocate %unds into pro%itable ventures so that there is sa%ety on invest ent and regular returns is possible. 3. Disposal of surplus: ,he net pro%its decision have to be ade by the %inance anager. ,his can be done in t*o *ays/ a. Dividend declaration - It includes identi%ying the rate o% dividends and other bene%its like bonus. b. Retained pro%its - ,he volu e has to be decided *hich *ill depend upon e'pansional# innovational# diversi%ication plans o% the co pany. 6. Management of cash: !inance anager has to ake decisions *ith regards to cash anage ent. Cash is required %or any purposes like pay ent o% *ages and salaries# pay ent o% electricity and *ater bills# pay ent to creditors# eeting current liabilities# aintainance o% enough stock# purchase o% ra* aterials# etc. 7. Financial controls: ,he %inance anager has not only to plan# procure and utili$e the %unds but he also has to e'ercise control over %inances. ,his can be done through any techniques like ratio analysis# %inancial %orecasting# cost and pro%it control# etc

Fiscal Year End Book Value P/S Price/Book Val (%) Debt/Equity (%) LT Debt % Inv Cap LT Debt % Tot Dbt Debt % Tot Assets Quick Ratio Current Ratio

12/1998 7.05 841 3 2.9 8.7 25.7 1.0 2.3

12/1997 5.93 592 2 2.3 4.7 33.2 1.3 2.6 90.0

12/1996 5.14 637 4 4.1 10.6 28.9 1.6 2.8 90.0

12/1995 3.70 383 3 3.2 7.5 30.6 1.3 2.2 90.0

Revenue/Assets (%) 80.0

Price/Revenue (%) Cash % Revenue Pre-Tax Mgn (%) Post-Tax Mgn (%) Eff Tax Rate (%) Receivable Turn Inventory Turn Ret on Equity (%) Ret Invest Cap (%) Ret on Assets (%)
Current Ratio

748 7.8 34.8 23.1 33.6 7.5 5.7 26.0 25.2 19.3

456 16.4 42.5 27.7 34.8 7.0 5.2 36.0 35.2 24.0
Current Assets -----------------------Current Liabilities

516 20.0 38.1 24.7 35.0 6.1 4.4 30.6 29.3 21.7

288 9.0 34.8 22.0 36.8 6.4 4.1 29.4 28.4 20.4

Current Ratio = Quick Ratio Quick Ratio =

Quick Assets ---------------------Current Liabilities

Quick Assets = Current Assets - Inventories Net Working Capital Ratio Net Working Capital Ratio = Net Working Capital -------------------------Total Assets

Net Working Capital = Current Assets - Current Liabilities

Profitability Analysis Ratios Return on Assets (R A! Return on Assets (R A! = Net Inco"e ---------------------------------Average Total Assets

Average Total Assets = (#eginning Total Assets $ %n&ing Total Assets! ' ( Return on %)uit* (R %! Return on %)uit* (R %! = Net Inco"e -------------------------------------------Average +tock,ol&ers- %)uit*

Average +tock,ol&ers- %)uit* = (#eginning +tock,ol&ers- %)uit* $ %n&ing +tock,ol&ers- %)uit*! ' (

Return on Co""on %)uit* (R C%! Return on Co""on %)uit* =

Net Inco"e -------------------------------------------Average Co""on +tock,ol&ers- %)uit*

Average Co""on +tock,ol&ers- %)uit* = (#eginning Co""on +tock,ol&ers- %)uit* $ %n&ing Co""on +tock,ol&ers- %)uit*! ' ( .rofit /argin .rofit /argin = Net Inco"e ----------------+ales

%arnings .er +,are (%.+! %arnings .er +,are =

Net Inco"e --------------------------------------------Nu"ber of Co""on +,ares utstan&ing

Activity Analysis Ratios Assets Turnover Ratio Assets Turnover Ratio = +ales ---------------------------Average Total Assets

Average Total Assets = (#eginning Total Assets $ %n&ing Total Assets! ' ( Accounts Receivable Turnover Ratio Accounts Receivable Turnover Ratio = +ales ----------------------------------Average Accounts Receivable

Average Accounts Receivable = (#eginning Accounts Receivable $ %n&ing Accounts Receivable! ' ( Inventor* Turnover Ratio Inventor* Turnover Ratio = Cost of 0oo&s +ol& --------------------------Average Inventories

Average Inventories = (#eginning Inventories $ %n&ing Inventories! ' (

Capital Structure Analysis Ratios 1ebt to %)uit* Ratio 1ebt to %)uit* Ratio = Total Liabilities ---------------------------------Total +tock,ol&ers- %)uit*

Interest Coverage Ratio Interest Coverage Ratio =

Inco"e #efore Interest an& Inco"e Ta2 %2penses ------------------------------------------------------Interest %2pense

Inco"e #efore Interest an& Inco"e Ta2 %2penses = Inco"e #efore Inco"e Ta2es $ Interest %2pense

Capital Market Analysis Ratios .rice %arnings (.%! Ratio .rice %arnings Ratio = /arket .rice of Co""on +tock .er +,are -----------------------------------------------------%arnings .er +,are

/arket to #ook Ratio /arket to #ook Ratio = /arket .rice of Co""on +tock .er +,are ------------------------------------------------------#ook 3alue of %)uit* .er Co""on +,are

#ook 3alue of %)uit* .er Co""on +,are = #ook 3alue of %)uit* for Co""on +tock ' Nu"ber of Co""on +,ares 1ivi&en& 4iel& 1ivi&en& 4iel& = Annual 1ivi&en&s .er Co""on +,are -----------------------------------------------/arket .rice of Co""on +tock .er +,are

#ook 3alue of %)uit* .er Co""on +,are = #ook 3alue of %)uit* for Co""on +tock ' Nu"ber of Co""on +,ares 1ivi&en& .a*out Ratio 1ivi&en& .a*out Ratio = Cas, 1ivi&en&s -------------------Net Inco"e

Sunday, September 23, 2012