1.

Current Ratio
Current Ratio = Current Assets / Current Liabilities
Current Ratio = ₱22,338,137,066 / ₱18,475,042,078
Current Ratio = 1.2
The current ratio for the year 2015 is 1.2. This means that for every ₱1 of current
liabilities BDO Unibank has, they have ₱1.2 of its current assets to cover for them. This is
favorable as they can cover the liabilities of the company.

2. Quick Ratio
Quick Ratio = Quick Assets / Current Liabilities
Quick Ratio = ₱3,240,160,579 / ₱18,475,042,078
Quick Ratio = 0.18
The quick ratio for the year 2015 is 0.18. This means that the company can cover ₱1 of
its current liabilities with ₱0.18 of its quick assets. The quick ratio of BDO Unibank for the year
2015 is 0.15:1.

3. Trade Receivable Turnover

Trade Receivable Turnover = Net Credit Sales / Average Receivables
Trade Receivable Turnover = ₱72,586,000,000 / ₱626,980,541.5
Trade Receivable Turnover = 115.77 times
BDO Unibank shows trade receivable turnover of 115.77 times in year 2015. This means
that accounts receivable of the company has been collected 115.77 times in the year 2015. This is
considered favorable for the company as it shows high amount an accounts receivable has been
collected or converted to cash.

4. Average Sales Period

Average Sales Period = 360 days / Trade Receivable Turnover
Average Sales Period = 360 days / 115.77
Average Sales Period = 3.11 days
 The average collection period for BDO Unibank in year 2015 is 3.11 days. This means
that it takes 3.11 days for the company to collect its accounts receivables. This is deemed
favorable as the days it takes to collect its accounts receivable is low.
5. Inventory Turnover
Inventory Turnover = Cost of Goods Sold / Average Inventory
Insurance companies such as BDO doesn’t sell physical products, so they don’t have
inventory account. This means that BDO doesn’t have inventory turnover as they are not
merchandising company but rather an insurance company.

6. Average Inventory Period

Average Inventory Period = 360 days / Inventory Turnover
As BDO Unibank isn’t a merchandising company, the average inventory period cannot
be calculated. Average inventory period requires computation of inventory turnover which
requires inventories. BDO doesn’t sale any physical products so they don’t have inventories.

7. Working Capital
Working Capital = Current Assets – Current Liabilities
Working Capital = ₱22,338,137,066 - ₱18,475,042,078
Working Capital = ₱3,863,094,990
The working capital of BDO Unibank for the year 2015 is ₱3,863,094,990. This also
measures the liquidity of the company. BDO Unibank has high working capital so it is favorable.