Boys Over Flower: Altejos, Laurente, Santos

CHAPTER 3

METHODOLOGY

Research Design

This study adopted a comparative analysis (Acuna, et. al., 2004) which is the act of
comparing two or more things in order to discover something about one or all of the things
being compared. For this reason, this is to establish a comparison among the financial ratios
of Top Three Food and Beverage Companies listed in PSE such as Jollibee, San Miguel Food
and Beverage and Max’s Group Incorporated. The financial ratios of each company were
subjected to a confrontation with average financial ratios of the food and beverage industry to
determine the extent of closeness of company’s ratios with the benchmark ratio.

Research Instrument

The instrument used in this study is an existing financial statements for Jollibee, San
Miguel Food and Beverage and Max’s Group Incorporated for the quarters 1 and 2 of 2020
which is currently listed in PSE Edge website since the researchers are dealing with financial
analysis. Such financial statements were audited by highlighted auditing firms such as SyCip,
Gorres, Velayo & Company, Reyes Tacandong & Co. and R.G. Manabat & Co. so as to
ensure the validity and reliability of such reports.

Data Gathering Procedure

The study required the procurement of financial statements for Jollibee Food
Corporation, San Miguel Food and Beverage and Max’s Group Inc. for the quarters 1 and 2
of 2020. The quarterly reports containing the financial statements of said companies were
obtained upon visiting the company’s disclosure of financial reports; which is pursuant to the
structured continuing disclosure requirements for listed companies in exchange by PSE,
under PSE form number 17-2 in PSE Edge website. Moreover, pursuant to the relevant
provisions of the Memorandum of Understanding (MOU) By and Between the Philippine
Stock Exchange, Inc. (PSE) and the Securities and Exchange Commission (SEC) on the
Initial Draft submitted to Prof. Jephte O. Muñez – Research 1, Rizal Technological
University
Boys Over Flower: Altejos, Laurente, Santos

Listing of the PSE Shares on the PSE Trading Board, the Commission has caused the
immediate posting of the foregoing disclosure/s in the PSE Electronic Disclosure Generation
Technology System (PSE EDGE). This directive is being issued primarily for the purpose of
ensuring the timely disclosure of information relating to PSE as a listed company and should
not be construed as an approval by the Commission of the item/s being disclosed nor of any
of the acts done by the PSE or it intends to do in relation to this disclosure. The PSE shall
remain responsible for complying with the other requirements as mandated in the Securities
Regulation Code (SRC) and other relevant laws and their respective rules and regulations.
This approval is for the purpose of ensuring the immediate posting of the disclosure. Nothing
herein precludes the Commission as the statutory regulator of the PSE as a registered
exchange, as Self-Regulatory Organization and as an issuer of registered securities, to seek
further clarification and/or information and to take appropriate action on the matter, including
the imposition of penalty in case of violation of the SRC and its Implementing Rules and
Regulations. Finally, the Commission, acting as the Exchange under the MOU, may also
impose penalty in case of violation of the relevant PSE Rules.

Quantitative Analysis of Data

Data collected in the study are the balances of the balance sheet and income statement
accounts. While two analyses can be made: 1) a horizontal analysis of the financial
statements to spot increasing or decreasing trends on the accounts and 2) a vertical analysis of
the financial statements to determine the relationship of the account balances to the total
assets, total liabilities, or net sales, the study provided greater importance on the use of
vertical analysis.

Horizontal analysis is devoted to analyze trends (increase or decrease) of financial

statement item; a vertical analysis ponders on the relationships among components of the
financial statement within a particular period (Plewa and Friedlob, 2002). Focusing on the
vertical analysis provides the opportunity to create common-size financial statements useful
in comparing the company with another company and the industry averages (Mohamad,
1996).

Initial Draft submitted to Prof. Jephte O. Muñez – Research 1, Rizal Technological

University
Boys Over Flower: Altejos, Laurente, Santos

Statistical Treatment of Data

This study adopted a descriptive statistics which used to describe the basic features of
the data in a study. It provides simple summaries about the sample and the measures.
Together with simple graphics analysis, they form the basis of virtually every quantitative
analysis of data. (Trochim, 2020).

Upon computation of financial ratios which are created with the use of numerical
values taken from financial statements to gain meaningful information about a company. The
numbers found on a company’s financial statements – balance sheet, income statement, and
cash flow statement – are used to perform quantitative analysis and assess a company’s
liquidity, leverage, growth, margins, profitability, rates of return, valuation, and more
(https://corporatefinanceinstitute.com/resources/knowledge/finance/financial-ratios/) there
are summarized graphical table comes with the benchmark of industry average balances so as
to enhance the comparability of financial ratios for each companies.

Ethical Procedures and Considerations

Financial statements gathered by the researchers in PSE Edge are subject to the
pertinent rules and regulations of such website. Such terms and conditions in regards to
access in said website are fully deemed read, understood and agreed.

All of the information and materials containing in the said websites should not be
used for any purpose that is contrary to law, morals, good customs, public orders or public
policy or prohibited by the terms and conditions contained. Moreover, the researchers
considered that the said website should not harm in any manner that could damage, disable
overburden or impair any PSE server, or the networks connected to any PSE server, or
interfere with any other party's access and use of it.

The related data’s, materials and illustrations are fully understood that does not
guarantee the accuracy, timeliness, completeness, performance or fitness for a particular
purpose of the PSE EDGE Website or any of the Contents. The PSE does not accept any
responsibility, on its own or its behalf, for any errors, omissions, or inaccurate content on the
PSE EDGE Website.

Initial Draft submitted to Prof. Jephte O. Muñez – Research 1, Rizal Technological

University
Boys Over Flower: Altejos, Laurente, Santos

The researchers are aware that the particular portion may not copy, store, either in
hard copy or in electronic retrieval system, transmit, transfer, perform, broadcast, publish,
reproduce, create a derivative work from, display, distribute, sell, license, rent, lease or
otherwise transfer any of the contents to any third person, including others in your company
or organization, whether for direct commercial or monetary gain or otherwise without prior
written consent of pse or the third party provider of the contents. Requests for such
permission should be sent to pird@pse.com.ph. Except as otherwise indicated with respect to
a particular portion, file, or document provided on the Website, you may only download,
view, or print individual pages of the Contents for your own personal, non-commercial use.

Initial Draft submitted to Prof. Jephte O. Muñez – Research 1, Rizal Technological

University