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San Beda College

College of Art and Sciences


Department of Accountancy

Financial Statement Analysis for


STI Educational System, Inc.
March 31, 2014 & 2015

Submitted by:
Portosa, Angela Rose P.
Section:
3GAC

Submitted to:
Ms. Cristy Joy Allauigan
RATIO ANALYSIS

Ratios
Current Ratio

2015
0.31

2014
1.03

Explanation
Does the company have
enough asset to pay their
debts? The answer is no, their
debts is greater than their
assets. They may able to raise
their current ratio by paying
some debts, Increasing current
assets from new equity
contributions, putting profit
back into business and
converting non-current assets

Quick Ratio

0.22

0.96

into current asses.


The quick ratio is a more
conservative standard. The
quick ratio is less than the
current ratio, the status of STI
is more complex. And the
valuation of the inventories and
inventories turnover are

Receivable Turnover

3.74

0.40

obviously critical.
The accounts receivable
turnover measures the number
of times accounts receivable
was turned over during the
period of time. During 2014,
they have one or less time in
collecting the cash. But during
their 2015, they have three or
more times in collecting cash
or making sales. The higher
the receivable turnover, the
shorter time between making a

Inventory Turnover

7.37

6.90

sale and collecting the cash.


The inventory turnover
measure the number of times
the inventory was converted to
sales during a period of time.

In here, 2015 inventory


turnover is higher than 2014's
inventory turnover meaning it
is a good indication of
purchasing and production
Debt Ratio

0.01

0.01

efficiency.
It is the measure of the
proportion of the asset that are
financed with debt. Only 0.01
of their asset is financed with

Equity Ratio

0.99

0.99

debt.
It is the measure of the
proportion of asset provided by
the owner. In STI, only .99 is
owned by the owner and the

Debt to Equity Ratio

0.01

0.01

rest is the revenue.


It measures how dependent
the company is on debt
financing as compared to the
owners equity. It shows how
much of the business is owned
and how much is owed. STI
has less than 1 debt to equity
ratio, thats why they have

Net Profit Margin

91.60%

93.96%

lesser risk.
It is the relationship of their
revenue and expense. It is the
profit generated after
considering their income and
expenses. If their income is
greater than their expense,
they will gain profit, vice versa,
they will have a net loss. In

Rate of Return on Assets

1.45%

1.49%

here, they always gain yearly.


It is the relationship between
the profit of STI and their total
assets. It is a measure of how
effectively they utilized their
company's assets to make a
profit. They made a larger

profit during 2014 than 2015.

Rate of Return on Equity

1.47%

1.50%

It is the relationship between


their profits over their equity. It
measures how the company
make a return on their
resources. They also have
larger percentage of return
during their 2014 than their
2015.