5% Current ratio okay (1 ratio) 4%

25% Profitability declining but increasing EPS (not okay) 12.5%

20% Activity okay 13.5%

15% Debt poor 5%

10% Stock valuation overvalued no invest 5%

20 market analysis 10%

5% internal analysis 5%

1) More franchise so more share price and marketability

2) no to contractualization, so patronized

3) Strawless

INVEST

Market analysis

INVENTORY TURNOVER AND DAYS INVENTORY

There was a big decline in the turnover of inventories from 2013 to 2014 before it continued to improve
its performance from 2014 to 2017. The decline could have been caused by the closing of the 72
branches of Jollibeee in 2014 due to technological failure. The days in inventory results are reflective of
the inventory turnover. It took almost a month to sell inventories in 2014 and slightly improved in 2015
to 2017. The improvement in the handling of inventories is probable to continue in the future seeing the
increasing trend.

AR TURNOVER AND AVERAGE COLLECTION PERIOD

The company's AR turnover performance severely declined in 2014. Yet, it bounced back up in 2016 and
2017. These results can be traced on the credit policy and collection efficiency of the company.
According to the notes to the financial statements, the company actually has a strict credit policy with
30-60 days term. Also, franchisees are screened well before franchises are approved in order to lower
credit risks. Yet it took almost a month to collect receivables in 2014 and slightly better in 2015. The
collection period improved to an average of around 10 days in 2016 and 2017. Looking back in 2014,
JFC's 72 branches of Jollibee closed in the country due tot poor implementation of the new technological
system. Hence, this event could have triggered such negative effect in the turnover of the company in
2014. Overall, the credit policy is indeed strict and efficient from 2016 and probably onwards, taking only
10 days on average to collect payment.

AP TURNOVER AND PAYMENT PERIOD

The AP turnover of the company was better in 2013 and 2014 when the credit term from the suppliers
was strictly around 30 days. This turnover declined in 2015 but increased gradually in 2016 to 2017. The
company is able to meet trade payable demands from 2015-2017 since credit terms were 30-60 days.
There was a debacle in 2013 and 2014 seeing that the average payment period was 33 and 31 days,
respectively. But to conclude, the company can able to settle short term demands within credit policies
of suppliers.

TOTAL ASSETS TURNOVER AND FIXED ASSET TURNOVER

The total assets turnover of the company is at a stable state averaging to 1.5 for the 5 year span. Hence,
the company is efficiently consistent in using assets to generate sales. The same is true for the fixed asset
turnover being stable at an average of 6.39. It is however higher compared to the total assets turnover
because JFC deals more with inventories than real properties, given the kind of industry the company
belongs to.

JFC is an active company being composed of various well-known food brands such as Jollibee itself,
Dunkin Donuts, Chowking and Mang Inasal among others. This activeness is quite reflected on its activity
ratios as well. It can be concluded that the company is efficient in utilizing all of its resources up to their
optimum level in order to generate cash.