The Earnings per Share indicates a company's Philippine peso amount earned during the period

on behalf of each outstanding common stock. This ratio is closely watched by the present or

prospective stockholders and management and is considered as an indicator of corporate

success (Gitman & Zutter, 2015). Investors prefer companies with higher EPS. As presented in

Figure 8, Cebu Air Inc had a drastic estimated 318% fall in the company’s EPS from the

nine-months ended September 2019’s Php 11.28 to the nine-months ended September 2019’s

Php -24.55 data. Cebu Pacific’s current declining EPS is considered a threat for the present and

possible investors of the company.

The major contributor to Cebu Pacific’s decline in its Earnings per Share is the negative

earnings available for common stockholders, which is translated to a loss for common

stockholders, rooted from the Net loss incurred by the company on its nine-months ended

September 2020. Digging deeper as to why Cebu Pacific incurred a Net loss instead of a Net

Income, the company generated operating expenses greater than its gross profit. One probable

reason is the operating maintenance expenses incurred during the time where nationwide

lockdown was implemented, as well as the halting of international flights. As an airline company,

Cebu Pacific still has to maintain their airbuses and various PPEs even though they generate

lesser revenues compared to its previous year, pre-pandemic economy.

On the other matter, looking into Cebu Pacific’s EPS trend, it can be observed that it is

fluctuating. From the 2017’s data of Php 13.05, it fell roughly for approximately 50% on its

2018’s Php 6.50 data, and during 2019, Cebu Pacific’s EPS improved by almost 134% resulting

in Php Php 15.22. However, reiterating what was discussed in the previous paragraphs, Cebu

Pacific’s EPS for the year 2020, although data recorded was only nine-months, tremendously

declined and is considered a Loss per Share.

Comparing Cebu Air (CEB) Inc.’s Earning per Share data to its prominent Philippine-based

competitor, Philippine Airlines (PAL) Holdings Inc. for the years 2017-2019, the graph shows

how CEB was leading as PAL was consistent on having EPS that is negative - or more

considered as having a loss per share. However, as the crisis rose during 2020, CEB loses its

lead as it flunked three-folds from its 2019’s EPS, and PAL maintainsed the trend of its negative

value.

Net income less div

Number of shares outstanding
Consistent na negative ang iya sang pal which means that ceb pac has an edge if prospect
investors are comparing the two. However, with the recent pandemic, as of sept2020 ceb pacs
eps is grabe pagnubo by ___ percent compared to the previous year.

This is an indicator that shareholders are losing for each of their shares which is very alarming.
meanwhile , although consistent na negative ang pal, daw 2020 mej nagokay ang ila negative
na eps.

Wala earnings na available for common shareholders since negative ang net income and if i
less ang present na dividends. Which means probabl