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Financial Ratios

2017 2016
Short term Solvency and Liquidity
Current ratio* 0.72 0.64
Quick Ratio* 0.48 0.43
Solvency ratio 0.20 0.21
Trade Receivables to Working Capital -1.24 -0.92
Asset Liquidity and Management Efficiency
Trade Receivable Turnover* 4.99 5.19
Fixed Asset Turnover* 0.89 0.93
Asset Turnover* 0.51 0.57
Average Collection Period (Days) 73.18 70.36
Payable Turnover* 1.90 1.93
Average Payment Period (Days) 189.35 186.40
Long-Term Financial Stability
Debt Ratio 76.04% 74.60%
Equity Ratio 23.96% 25.40%
Debt to Equity 317.33% 293.63%
Times Interest Earned* 5.12 7.67
Profitability and Return to Investors
Gross Margin 64.15% 64.07%
Operating Profit 19.08% 20.61%
Net profit 11.15% 12.53%
Return on Asset 5.72% 7.13%
Return on Equity 23.21% 24.56%
Earnings per Share 109.22 115.45
Price/Eearnings Ratio* 17.40 13.07
Dividend Payout 83.32% 76.22%
Financial Leverage* 4.06 3.63
Market Price per Share 1900 1509
Dividend per share 91 88
*times

GLOBE TELECOM
Financial Ratios
2017 2016
Short term Solvency and Liquidity
Current ratio* 0.53 0.47
Quick Ratio* 0.40 0.35
Solvency Ratio 0.19 0.15
Trade Receivables to Working Capital 179832667.30 164011164.14
Asset Liquidity and Management Efficiency
Trade Receivable Turnover* 5.50 6.70
Fixed Asset Turnover* 0.82 0.83
Asset Turnover* 0.34 0.36
Average Collection Period (Days) 66.41 54.48
Payable Turnover* 2.65 2.66
Average Payment Period (Days) 137.58 137.15
Long-Term Financial Stability
Debt Ratio 75.80% 77.16%
Equity Ratio 24.20% 22.84%
Debt to Equity 313.23% 337.75%
Times Interest Earned* 2.02 4.10
Profitability and Return to Investors
Gross Margin 82.93% 84.16%
Operating Profit 9.11% 13.36%
Net profit 8.42% 12.20%
Return On Assets 2.88% 4.33%
Return On Equity 11.91% 18.98%
Earnings Per Share 61.61 92.33
Price/Earnings Ratio* 23.34 14.78
Dividend Payout 1.23 1.15
Financial Leverage* 4.25 4.18
Market Price per Share 1438 1365
Dividend per share 76 106
*times

PLDT INC.
Globe Pldt Globe Pldt
2016 2017
Short term Solvency and Liquidity
Current ratio* 0.64 0.47 0.72 0.53
Quick Ratio* 0.43 0.35 0.48 0.40
Solvency Ratio 0.21 0.15 0.20 0.19
Trade Receivables to Working Capital -0.92 -0.25 -1.24 -0.43
Asset Liquidity and Management Efficiency
Trade Receivable Turnover* 5.19 6.70 4.99 5.50
Fixed Asset Turnover* 0.93 0.83 0.89 0.82
Asset Turnover* 0.57 0.36 0.51 0.34
Average Collection Period (Days) 70.36 54.48 73.18 66.41
Payable Turnover* 1.93 2.66 1.90 2.65
Average Payment Period (Days) 186.40 137.15 189.35 137.58
Long-Term Financial Stability
Debt Ratio 74.60% 77.16% 76.04% 75.80%
Equity Ratio 25.40% 22.84% 23.96% 24.20%
Debt to Equity 293.63% 337.75% 317.33% 313.23%
Times Interest Earned* 7.67 4.10 5.12 2.02
Profitability and Return to Investors
Gross Margin 64.07% 84.16% 64.15% 82.93%
Operating Profit 20.61% 13.36% 19.08% 9.11%
Net profit 12.53% 12.20% 11.15% 8.42%
Return On Assets 7.13% 4.33% 5.72% 2.88%
Return On Equity 24.56% 18.98% 23.21% 11.91%
Earnings Per Share 115.45 92.33 109.22 61.61
Price/Earnings Ratio* 13.07 14.78 17.40 23.34
Dividend Payout 76.22% 114.81% 83.32% 123.36%
Financial Leverage* 3.63 4.18 4.06 4.25
Market Price per Share 1509 1365 1900 1438
Dividend per share 88 106 91 76
*times
Financial Ratios
2016 2017
Short term Solvency and Liquidity
Current Ratio* 0.64 0.72
Quick Ratio* 0.43 0.48
Solvency Ratio 0.21 0.20
Trade Receivables to Working Capital -0.92 -1.24
Asset Liquidity and Management Efficiency
Trade Receivable Turnover* 5.19 4.99
Fixed Asset Turnover* 0.93 0.89
Asset Turnover* 0.57 0.51
Average Collection Period (Days) 70.36 73.18
Payable Turnover* 1.93 1.90
Average Payment Period (Days) 186.40 189.35
Long-Term Financial Stability
Debt Ratio 74.60% 76.04%
Equity Ratio 25.40% 23.96%
Debt to Equity 293.63% 317.33%
Times Interest Earned* 7.67 5.12
Profitability and Return to Investors
Gross Margin 64.07% 64.15%
Operating Profit 20.61% 19.08%
Net profit 12.53% 11.15%
Return On Assets 7.13% 5.72%
Return On Equity 24.56% 23.21%
Earnings Per Share 115.45 109.22
Price/Earnings Ratio* 13.07 17.40
Dividend Payout Ratio 76.22% 83.32%
Financial Leverage* 3.63 4.06
Market Price per Share 1509 1900
Dividend per share 88 91
*times

Ratio Analysis
Horizontal Analysis

2016 2017
ASSETS
Current Assets
Cash and Cash Equivalents 8,632,852 11,222,220 29.99%
Receivables - net 26,994,645 27,304,288 1.33%
Inventories and supplies - net 4,579,954 3,242,689 -29.20%
Derivative assets 68,311 15,043 -77.98%
Prepayments and other current assets 12,796,892 15,730,897 22.93%
TOTAL CURRENT ASSETS 53,072,654 57,515,137 8.47%
Noncurrent Assets
Property, Plant and Equipment - Net 142,251,981 162,602,646 14.31%
Intangible assets and Goodwill - net 14,833,220 14,883,706 0.34%
Investments 34,181,452 35,602,999 4.16%
Deferred income tax assets - net 2,622,703 2,761,626 5.30%
Derivative Assets 755,137 911,358 20.69%
Other Noncurrent Assets 2,195,963 3,488,816 58.87%
TOTAL NONCURRENT ASSETS 196,840,456 220,251,151 11.89%
TOTAL ASSETS 249,913,110 277,766,288 11.17%

LIABILITIES AND EQUITY

Current Liabilities
Accounts Payable and Other Accrued Expenses 59,137,686 62,232,862 5.23%
Notes Payable 4,500,000 -100.00%
Current Portion of long term debt 5,830,319 8,278,222 41.99%
Unearned Revenues 5,090,421 5,509,773 8.24%
Income Tax Payable 1,105,931 1,180,753 6.77%
Provisions 6,631,612 2,064,361 -68.87%
Derivative Liabilities 105,928 191,060 80.37%
TOTAL CURRENT LIABILITIES 82,401,897 79,457,031 -3.57%
Noncurrent Liabilities
Long term debt - net of current portion 95,398,272 123,250,483 29.20%
Deferred income tax liabilities - net 1,916,923 2,748,826 43.40%
Other long term liabilities 6,669,716 5,752,211 -13.76%
TOTAL NONCURRENT LIABILITIES 103,984,911 131,751,520 26.70%
TOTAL LIABILITIES 186,386,808 211,208,551 13.32%

Equity
Paid-up capital 44,505,703 44,757,853 0.57%
Cost of share-based payments 584,586 401,543 -31.31%
Other reserves -1,072,925 -352,375 -67.16%
Retained Earnings 19,422,402 21,708,003 11.77%
Equity attributable to equity holders of the Parent 63,439,766 66,515,024 4.85%
Non-controlling Interest 36,536 42,713 16.91%
TOTAL EQUITY 63,476,302 66,557,737 4.85%

TOTAL LIABILITIES AND EQUITY 249,863,110 277,766,288 11.17%


Vertical Analysis

STATEMENT OF FINANCIAL POSITION


GLOBE TELECOM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS OF DECEMBER 31, 2016 AND DECEMBER 31, 2017
in thousands pesos

ASSETS
Current Assets
Cash and Cash Equivalents 4.04%
Receivables - net 9.83%
Inventories and supplies - net 1.17%
Derivative assets 5.66%
Prepayments and other current assets 5.66%
TOTAL CURRENT ASSETS 20.71%
Noncurrent Assets
Property, Plant and Equipment - Net 58.54%
Intangible assets and Goodwill - net 5.36%
Investments 12.82%
Deferred income tax assets - net 0.99%
Derivative Assets 0.33%
Other Noncurrent Assets 1.26%
TOTAL NONCURRENT ASSETS 79.29%
TOTAL ASSETS 100.00%

LIABILITIES AND EQUITY

Current Liabilities
Accounts Payable and Other Accrued Expenses 29.47%
Notes Payable 0.00%
Current Portion of long term debt 3.92%
Unearned Revenues 2.61%
Income Tax Payable 0.56%
Provisions 0.98%
Derivative Liabilities 0.09%
TOTAL CURRENT LIABILITIES 28.61%
Noncurrent Liabilities
Long term debt - net of current portion 58.35%
Deferred income tax liabilities - net 1.30%
Other long term liabilities 2.72%
TOTAL NONCURRENT LIABILITIES 47.43%
TOTAL LIABILITIES 76.04%

Equity
Paid-up capital 16.11%
Cost of share-based payments 0.14%
Other reserves -0.13%
Retained Earnings 7.82%
Equity attributable to equity holders of the Parent 23.95%
Non-controlling Interest 0.02%

TOTAL EQUITY 23.96%

TOTAL LIABILITIES AND EQUITY 100.00%


GLOBE TELECOM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the year ended December 31, 2016 and December 31, 2017
in thousand pesos

For the Years Ended December 31

REVENUES
Service Revenues 94.55%
Nonservice revenues 5.45%
TOTAL REVENUE 100.00%
INCOME (LOSSES)
Gain on fair value of retained interest 1.40%
Equity in net losses of associate and joint ventures -0.63%
Interest Income 0.10%
Gain on disposal of property and equipment-net 0.03%
Other income- net 0.31%
TOTAL INCOME (LOSSES) 1.21%
COST AND EXPENSES
General, selling and administrative expenses 41.85%
Depreciation and amortization 20.34%
Cost of sales 9.62%
Interconnect costs 5.80%
Financing costs 3.88%
Impairment losses and others 3.80%
TOTAL COST AND EXPENSES 85.29%
INCOME BEFORE INCOME TAX 15.92%
PROVISION FOR INCOME TAX
Current Tax 4.44%
Deferred Tax 0.33%
4.77%
NET INCOME 11.15%
OTHER COMPREHENSIVE INCOME (LOSS)
Item that will not be reclassified into profit or loss in subsequent periods:
Remeasurement gains (losses) on defined benefit plan-net 0.30%
Items that will be reclassified into profit or loss in subsequent periods:
Transactions on cash flow hedges - net 0.10%
Changes in fair value of available-for-sale investment in equity securities 0.02%
Exchange differences arising from transalations of foreign investments -0.02%
Other comprehensive income(loss), net of tax 0.40%
TOTAL COMPREHENSIVE INCOME 11.55%
2016 Industry 2017
Short term Solvency and Liquidity
Current ratio* 0.64 0.58 0.72
Quick Ratio* 0.43 0.54 0.48
Solvency Ratio 0.21 0.20 0.20
Asset Liquidity and Management Efficiency
Trade Receivable Turnover* 5.19 5.52 4.99
Asset Turnover* 0.57 0.49 0.51
Long-Term Financial Stability
Debt to Equity 293.63% 137.14% 317.33%
Profitability and Return to Investors
Gross Margin 64.07% 89.17% 64.15%
Operating Profit 20.61% 14.95% 19.08%
Net profit 12.53% 8.78% 11.15%
Return On Asset 7.13% 5.74% 5.72%
Return On Equity 24.56% 21.29% 23.21%
Earnings Per Share 115.45 108.95 109.22
P/E Ratio* 13.07 21.40 17.40
Dividend Payout 76.22% 110.50% 83.32%
Dividend Yield 5.83% 5.10% 4.79%
*times