Analysis of Financial Statements

a. Current Ratio

Current ratio helps investors and creditors understand the liquidity of the

company how it can pay off its obligations. Generally, having a high current

ratio is favorable. The current ratio of the Company signifies that it has 21.31

times more than its current liabilities.

b. Equity Ratio

The equity ratio highlights the importance of a solvent and sustainable

business because it shows how much of the total company assets are owned

outright by the investors. In other words, after all of the liabilities are paid off,

the investors will end up with the remaining assets. An equity ratio of .99 means

that the partners of the Company has 99% claim over its total assets.

c. Debt Ratio

Debt ratio is a solvency ratio that measures a firm's total liabilities as a

percentage of its total assets. In a sense, the debt ratio shows a company's

ability to pay off its liabilities with its assets. Having a debt ratio of .01 means

that the Company must sell 01% of its total assets to pay its current and non-

current obligations.

d. Gross Margin Ratio

Gross margin ratio is a profitability ratio that compares the gross margin of

a business to the net sales. This ratio measures how profitable a company sells

its inventory or finished goods. In other words, the gross profit ratio is

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essentially the percentage markup on inventory from its cost. This means that

out of the Company's sales, an average of 41% can be earned from the sale of

services and allotted to pay for its operating and financing cost.

e. Profit Margin Ratio

The profit margin ratio directly measures what percentage of sales is made

up of net income. In other words, it measures how much profits are produced

at a certain level of sales. The Company has an increasing trend of profit ratio,

signifying that it efficiently manages it operations.

f. Return on Assets

The return on assets ratio is a profitability ratio that measures the net

income produced by total assets by comparing net income to the average total

assets. In other words, the return on assets ratio or ROA measures how

efficiently a company can manage its assets to produce profits during a period.

This means that for every peso the Company has invested, a 5% income is

produced.

g. Return on Equity

The return on equity ratio or ROE is a profitability ratio that measures the

ability of a business to generate profits from the owner's investment in the

company. In other words, the return on equity ratio shows how much profit each

peso of the partner's contribution is earned. Based on the analysis of the

Company's ROE, an average of .05 pesos is earned for every peso invested

by the owner.

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 h. Return on Investment

Return on Investment is a performance measure used to evaluate the

efficiency of an investment. This is determined to obtain the investment's

profitability. The Company gained a 6% return on investment in a span of 5

years.

Payback Period

The payback period of the business was 3.92 years is the time in which the

initial cash outflow of an investment is expected to be recovered from the cash

inflows generated by the investment. The formula to calculate this depending on

whether the cash flow per period from the project is even or uneven. In the case

of CLICK Harvester Services is uneven, the formula to calculate payback period

by dividing Initial Investments to Cash Inflow per Period.

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