RATIOS FORMULA 2020 2089 CONCLUSION

TEST OF LIQUIDITY

𝟔𝟎𝟓 519
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠 = 𝟐𝟗𝟐 = 276
Current Ratio
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 = 2.07 = 1.88

𝟏𝟐𝟎 + 𝟒𝟓 + 𝟐𝟏𝟎 150 + 15 + 180

𝐶𝑎𝑠ℎ + 𝑀𝑎𝑟𝑘𝑒𝑡𝑎𝑏𝑙𝑒 𝑆𝑒𝑐𝑢𝑟𝑖𝑡𝑖𝑒𝑠 + 𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒𝑠 = =
Acid Test Ratio 𝟐𝟗𝟐 276
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 = 1.28 = 1.25

WORKING CAPITAL ACTIVITY RATIOS

𝟑, 𝟐𝟖𝟎
𝑁𝑒𝑡 𝐶𝑟𝑒𝑑𝑖𝑡 𝑆𝑎𝑙𝑒𝑠 =
Receivables Turnover 𝟐𝟏𝟎 + 𝟏𝟖𝟎
𝐴𝑣𝑒. 𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒𝑠 𝟐
= 16.82

𝟑𝟔𝟎 𝒅𝒂𝒚𝒔
360 𝑑𝑎𝑦𝑠 = 𝟏𝟔.𝟖𝟐
Ave. Age of Receivables
𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒𝑠 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 = 21.40 days

𝟐,𝟏𝟐𝟎
𝐶𝑜𝑠𝑡 𝑜𝑓 𝐺𝑜𝑜𝑑𝑠 𝑆𝑜𝑙𝑑 = 𝟏𝟓𝟎+𝟏𝟏𝟐
Inventory Turnover 𝟐
𝐴𝑣𝑒. 𝑀𝑒𝑟𝑐ℎ𝑎𝑛𝑑𝑖𝑠𝑒 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 = 16.18

𝟑𝟔𝟎 𝒅𝒂𝒚𝒔
360 𝑑𝑎𝑦𝑠 =
Ave. Age of Inventory 𝟏𝟔. 𝟏𝟖
𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 = 22.25 days
 = 𝟐𝟏. 𝟒𝟎 𝒅𝒂𝒚𝒔
Operating Cycle 𝐷𝑎𝑦𝑠 ′ 𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒𝑠 + 𝐷𝑎𝑦𝑠 ′ 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑖𝑒𝑠 +𝟐𝟐. 𝟐𝟓 𝒅𝒂𝒚𝒔
= 43.65 days

TESTS OF SOLVENCY

𝟑𝟔𝟎 + 𝟑𝟎 428 + 25
𝐼𝑛𝑐𝑜𝑚𝑒 𝑏𝑒𝑓𝑜𝑟𝑒 𝑡𝑎𝑥 + 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐸𝑥𝑝𝑒𝑛𝑠𝑒 = =
Times Interest Earned 𝟑𝟎 25
𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐸𝑥𝑝𝑒𝑛𝑠𝑒 = 13 times = 18.12/18 times

𝟗𝟒𝟐 876
𝑇𝑜𝑡𝑎𝑙 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 = =
Debt-Equity Ratio 𝟖𝟓𝟖 774
𝑇𝑜𝑡𝑎𝑙 𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟 ′ 𝑠 𝐸𝑞𝑢𝑖𝑡𝑦 = 1.10 = 1.13

𝟗𝟒𝟐 876
𝑇𝑜𝑡𝑎𝑙 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 = =
Debt Ratio 𝟏, 𝟖𝟎𝟎 1,650
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 = 52.33% = 53.09%

𝟖𝟓𝟖 774
𝑇𝑜𝑡𝑎𝑙 𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟 ′ 𝑠 𝐸𝑞𝑢𝑖𝑡𝑦 = =
Equity Ratio 𝟏, 𝟖𝟎𝟎 1,650
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 = 47.67% = 46.91%

TESTS OF PROFITABILITY

1,160 1,033
𝐺𝑟𝑜𝑠𝑠 𝑃𝑟𝑜𝑓𝑖𝑡 = =
Gross Profit Ratio 3,280 2,950
𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠 = 35.37% = 35.02%
 𝟐𝟑𝟒 278.2
𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 = =
Net Profit Ratio 𝟑, 𝟐𝟖𝟎 2,950
𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠 = 7.13% = 9.43%

𝟑𝟗𝟎
𝐸𝐵𝐼𝑇 =
Return on Total Assets 𝟏, 𝟖𝟎𝟎 + 𝟏, 𝟔𝟓𝟎
𝐴𝑣𝑒. 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 𝟐
= 22.61%
234
Return on Stockholder's 𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 =
858 + 774
Equity 𝐴𝑣𝑒. 𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟 ′ 𝑠 𝐸𝑞𝑢𝑖𝑡𝑦 2
= 28.68%
𝟐𝟑𝟒 278.2
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 = =
Earnings per Share (EPS) 𝟏𝟎𝟎 + 𝟏𝟎𝟎 100 + 100
𝑊𝑒𝑖𝑔ℎ𝑡𝑒𝑑 𝐴𝑣𝑒. 𝑁𝑜. 𝑜𝑓 𝐶𝑜𝑚𝑚𝑜𝑛 𝑆ℎ𝑎𝑟𝑒𝑠 𝟐 2
= 2.34 = 2.78

MARKET TESTS

₱𝟓 ₱5
𝑃𝑟𝑖𝑐𝑒 𝑝𝑒𝑟 𝑆ℎ𝑎𝑟𝑒 = =
Price-earnings Ratio (P/E) 𝟐. 𝟑𝟒 2.78
𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 𝑝𝑒𝑟 𝑆ℎ𝑎𝑟𝑒 = 2.14 = 1.80