FINANCIAL STATEMENT ANALYSIS

Chavez, Michellee Marie B. Diokno, Renee Angela P. Guballa, Czarina Mae C.

FORMULAS

ROA = Net Income Total Assets ROI = Net Income Long-term Liabilities + Shareholders Equity

ROE = Net Income Shareholders Equity

Profit Margin = Net Income Net Sales Revenue

FORMULAS

Cash Realization = Cash generated by operations Net Income Asset Turnover = Sales Revenues Total Assets Invested Capital Turnover = Sales Revenues Long-Term Liabilities + Shareholders Equity Equity Turnover = Sales Revenues Shareholders Equity

FORMULAS

Capital Intensity = Sales Revenues Property, plant & equipment Days receivables = Accounts Receivable Sales / 365 Days inventory = Inventory Cost of Sales / 365

Inventory turnover = Cost of Sales Inventory

FORMULAS

Working Capital = Total Current Assets Total Current Liabilities Working Capital Turnover = Sales Revenues Working Capital Current Ratio = Current Assets Current Liabilities

Quick Ratio = Monetary Current Assets Current Liabilities

FORMULAS
Financial Leverage Ratio = Assets Shareholders Equity Debt to Equity Ratio = Total Liabilities Shareholders Equity Debt / Capitalization = Long-term Liabilities Long-term Liabilities + Shareholders Equity

1.
FINANCIAL RATIOS ROA ROI 2007
3.27% 4.34%

2008
2.95% 3.93%

2009
5.32% 7.82%

2010
6.21% 9.42%

ROE
Profit Margin Cash Realization Asset Turnover Invested Capital Turnover Equity Turnover

8.02%
1.94% 1.51

7.08%
1.68% 2.53

12.94%
3.04% 2.23

14.67%
3.54% 1.63

1.69
2.23 4.13

1.76
2.34 4.22

1.75
2.58 4.26

1.75
2.66 4.15

1.

FINANCIAL RATIOS Capital Intensity Days Receivables Days Inventory Inventory Turnover Working Capital

2007
3.72
57.09 74.05 4.93 2,983

2008
3.77
56.12 62.65 5.83 2,849

2009
4.08
56.11 67.91 5.38 2,986

2010
4.23
56.99 68.24 5.35 3,156

1.

FINANCIAL RATIOS Working Capital Turnover Current Ratio Quick Ratio Financial Leverage Ratio Debt to Equity Ratio Debt / Capitalization

2007

2008

2009

2010

6.13 2.12 1.12 2.45

6.86 2.02 1.13 2.40

7.36 1.74 1.02 2.43

7.65 1.67 1.00 2.36

1.45
45.93%

1.40
44.56%

1.43
39.61%

1.36
35.79%

2. As Stefanie Anderson, would you conclude that the company is a good credit risk?
The company's revenues is continuously growing. The company is profitable given improving net income and high profit margins. The company is not leveraged as shown by the improving debt to equity ratio. Though liquidity position is slightly deteriorating yearly, it is still above acceptable level of banks. The company has a positive working capital.