RATIOS FORMULA 2020 2089 CONCLUSION

TEST OF LIQUIDITY

605 519
Current Assets = =
Current Ratio 292 276
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 S ales 210+180
Receivables Turnover
Ave . Receivables 2
= 16.82
360 days
360 days =
Ave. Age of Receivables 16.82
Receivables Turnover
= 21.40 days
2,120
Cost of Goods Sold = 150+112
Inventory Turnover
Ave . Merchandise Inventory 2
= 16.18
360 days
360 days ¿
Ave. Age of Inventory 16.18
I nventory Turnover
= 22.25 days
 ¿ 21.40 days
' '
Operating Cycle Day s Receivables + Day s 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

Total Liabilities 942 876

¿ ¿
Debt-Equity Ratio 858 774
Total Shareholde r ' 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 Shareholde r ' 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 1,800+1,650
Return on Total Assets
Ave . Total Assets 2
= 22.61%
234
¿
Return on Stockholder's Net Income 858+774
Equity Ave . Shareholde r ' s Equity 2
= 28.68%
234 278.2
¿ ¿
Net Income 100+100 100+100
Earnings per Share (EPS)
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