CONCLUSION

Ratio Analysis Interpretation

Liquidity:

In terms of liquidity, Philippine Seven Corporation is mainly into merchandising. That

being said, its inventory and other resources can be transformed into cash when necessary.

Cutting back on branches and goods provided when funds depreciate has always been a practical

option for this type of business. The company’s Current Ratio is higher than its Quick Ratio,

which proves a risk if ever immediate needs arise. Philippine Seven Corporation may struggle to

pay for its short-term obligations through liquidation.

Solvency:

Philippine Seven Corporation’s Debt Ratio is indicated to be below 100%. This means

that if the company ever faces bankruptcy, it may still be able to pay its debts. This secures the

Philippine Seven’s future, even when conflict may arise.

Profitability:

The company’s performance in 2020 resulted to great loss. Its ROA and ROE have both

equated to negative values. Thus, Philippine Seven Corporation has more loss than actual

income. The company must remedy this issue in order to gain better outcome in the future.

Stability:

Although having Net Loss, the company has established good credit score and a low debt

ratio. Philippine Seven Corporation can still recover from 2020’s Net Loss and not lead to

bankruptcy. The indicated loss is not a huge sum and may be profited in the years to come with

proper strategies.
 CURRENT EVENTS

Cashless Payments:

Mobile wallet GCash and convenience store chain 7-Eleven have teamed up to

introduce a new digital payment option for physical purchases: scan-to-pay (STP) via a barcode

feature in the GCash app. To use the STP via Barcode feature of GCash, 7-Eleven customers just

have to create their unique barcodes via the app, and allow the cashier to scan them to finish the

transaction.

With STP via Barcode, merchants need not have to have a QR key code, which the patron

scans to transact. They also do not need to have their own mobile devices to verify the payments

since it is already integrated in the merchant’s point-of-sales.

This collaboration supports the goal of Bangko Sentral ng Pilipinas to create a more

cashless Philippines beginning this year by moving 20 percent of the total transaction to noncash

means, such as digital payments.

Net Loss;

Philippine Seven Corp., the local licensee of 7-Eleven convenience stores in the country,

said it incurred a net loss of P419.7 million in 2020, a reversal of the P1.44 billion it generated in

2019.

Philippine Seven, in partnership with Seven Bank of Japan, has started the installation of

its cash-recycling ATMs in more than 150 7-Eleven stores in Metro Manila and nearby

provinces. These ATMs are expected to compliment the growing service business of 7-Eleven

and also contribute in increasing the level of financial inclusion in the Philippines.
COVID-19 Protocols:

The local licensee of 7-Eleven convenience stores said the coronavirus pandemic affected

its sales, especially those of 7-Eleven stores in the office and school clusters.

The company ended 2020 with a nationwide store count of 2,978 stores. There are 2,261

7-Eleven stores in Luzon, some 1,010 of which are in Metro Manila, 432 in Visayas and 285 in

Mindanao. The franchised-stores accounted for 55 percent of the total, while the remaining 45

percent are corporate-owned.

Majority of 7-Eleven convenience stores remained open to provide essential products and

services to the communities where it is present. Fewer than 7 percent of its store base were

temporarily closed by the end of the year, the company said.