Interest Coverage Ratio

2017 2016 2015

28.72 21.57 6.82

The interest coverage ratio is a financial ratio that measures a company’s ability to make interest
payments on its debt in a timely manner. It calculates the firm’s ability to afford the interest on the
debt. Since the Pilipinas Shell Petroleum Corporation has an increasing trend of Interest Coverage Ratio
from 2015 to 2017, this means that the company makes more earnings than the previous interest
payments. This is a good sign because it shows that the company risk is low, and her operations are
producing enough cash to pay their bills. In the most recent year the company is making more than
enough money to pay its interest obligations and the company is extremely liquid and shouldn’t have
problem getting a loan to expand.

Return on Assets

2017 2016 2015

12.66% 10.54% 5.37%

the return on assets ratio or ROA measures how efficiently a company can manage its assets to produce
profits during a period. The higher the return on assets the better, A higher ratio is more favorable to
investors because it shows that the company is more effectively managing its assets to produce greater
amounts of net income. A positive ROA ratio usually indicates an upward profit trend as well. ROA is
most useful for comparing companies in the same industry as different industries use assets differently.
The increasing trend on Return on Assets shows that Shell Philippines was able to utilize its resources
well in generating income.

Return on Equity

2017 2016 2015

24.88% 22.94% 13.81%

Return on equity compares the annual net income of a business to its shareholders' equity. The measure
is used by investors to determine the general level of return that an organization is generating in
proportion to the investment they have made in it. A business that can generate a high return on equity
is considered to be a good investment, which drives up its share price. It is a good indication because the
company’s ability to pay their shareholders is increasing as per trend observe.