PERFORMANCE TASK 4 – ABM 12-2

GROUP 1:
PAULEENE ADELINO
HAZEL LYNN BLANCES
AESHA CADION
KATHERINE CASTILLON
TRISHA ANNE FAYE CLATARO
Statement of Financial Position
Statement of Comprehensive Income
Horizontal Analysis
Results of the mathematical computations in terms of:

A. Liquidity Status

1. In year 2019-2020, the company increases its total current assets.

2. Generally, receivables come from sales. In the span of 2 years, receivables of the company increased for about 3.7%.
3. From 2019-2020, the company inventory has increased for about 7.7%. This relationship of the business with the customers since goods
were immediately purchased.

B. Solvency Status

1. All the current assets increased for the year 2019-2020 except for Cash and cash equivalents, and Biological assets.
2. All non-current assets are moving upward joined by an expanding in deals income except for biological assets,intangible assets, and
deferred tax assets. This development might demonstrate a great propensity since most of the non-current assets are increasing.

C. Profitability Status
1. Both current assets and non-current assets has increased from 2019-2020 moving upward.
2. There is an decrease in non-current liabilities, slighty affecting the total liabilities.
Vertical Analysis
Results of the mathematical computations in terms of:

A. Liquidity Status
1. The current assets of the company which is 37.21%,is much higher than its current liabilities which is 30.46% as of year 2020. This
indicates that company has enough assets to pay its obligation. It also shows that the company is operating efficiently and can invest and
grow without borrowing,

B. Solvency Status
1. For this type of analysis proportional allocation of resources is needed, it provides valuable information to the management and to the
prospective investors as to resource allocation and management priorities or business.
2. This figure may exhibit that the business isn’t relying a great deal upon commitmen to back the getting of its assets and treatment of its
exercises. It rather draws from the worth given by the owners.

C. Profitability Status
1. The company’s total resources have been allocated as follows: 37.21% to current assets and 62.79% to non-current assets, according to
the common-size financial position. This allocation will be examined in light of the nature of the business and in accordance with the
management’s priorities.
2. Total assets increased by 1.24% compared to 2019-2020, also to the total liabilities where in it also increased by 0.94% in 2020. In 2020,
there is a downward shift in total equity by 0.94% compared to 2019. However, the total liabilities and equity still shows that 2020 has still
increased.
Trend Analysis
Results of the mathematical computations in terms of the following:

A. Liquidity Status
1. Current assets are increasing, particularly in 2019-2020. This positive trend may indicate that the company has enough current
assets to cover its current maturing obligations.
2. Receivables and inventories appear to be increasing, but not at the same rate as sales. This positive upward trend could be attributed
to the company instituting and implementing more effective credit and collection policies.
3. The rising movement of cash could indicate that the company prioritizes safety and liquidity.

B. Solvency Status
1. In the year 2017, the current assets exceeds the current liabilities which may indicate that the company is solvent. The company
could pay its long-term obligations and debts.
2. In the year 2018, there might be a decreased in the current assets of the company but in the next 2 years, the current assets has
increased.

C. Profitability Status
1. There is no shift in the trend of total assets from 2016-2020, and the same would be for total liabilities and equity. The result
indicates that the company is stable in managing the business.
Ratio Analysis
Results of the mathematical computations in terms of the following:

A. Liquidity Status
1. From 2016-2020, there is an increase and decrease in the current ratio which may indicate that the company is not stable to meet
its short-term obligations.
2. The decrease ration in year 2019-2020 may appear to be an unfavourable trend.

B. Solvency Status
1. When compared to 2016, the debt ratio has decreased and the equity ratio of the company has increased. This could imply that
the stable company signals with a lower debt proportion.
2. In the last five years, the debt-to-equity ratio has increased. In 2020, the company’s debt to equity ratio is 80.18%. The company
can handle debt by properly investing in assets required, leading to a lower returns on investment even with a lower debt to equity
ratio.

C. Profitability Status
1. For the profitability ratio of the Universal Robina Corporation and Subsidiaries the company’s gross profit margin started from the
year 2016 (32.73%) slighty decreases up to the year 2020. By that, the company should be aware and try to improve its gross
profit margin.

2. The operating profit margin for the year 2016-2020 has deacreased. With this, the business needs to be in better position to
manage its operating cost.

3. The net profit margin for the year 2016 is13.75% but drops on year 2017-2020. By this, it can result a low contribution to the
owner’s equity.