PRELIM PROJECT

BSA CN:3014

FINANCIAL
MANAGEMENT
WITH
FEASIBILITY

MARCH 2, 2022

AYALA LAND., CORP.

Submitted by: Singson, Donna Mae A.
Alviza, Riza Mae

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Financial Statements using at least 15
ratios; AYALA LAND., COPR.
Financial ratios
1. Working Capital (Current Asset-Current Liabilities)
324,271,101,000 - 199,729,307,000 = 124,541,000

2. Current Ratio (Current Asset/Current Liabilities)

324,271,101,000/199,729,307,000= 1.62%

3. Quick ratio (cash + Marketable Securities + AR / Current liabilities)

13,742,791,000 + 3,294,556,000 + 101,145,909,000 / 199,729,307,000 =
0.59%

4. Cash Position ratio (Cash + MS / CL)

13,742,791,000 + 3,294,556,000 / 199,729,307,000 = 0.09%

Activity ratios
5. Total Asset Turnover (Net sales/Ave. Total Asset)
96,272,699,000 / 717,708,826,000 = 0.13%

Leverage ratios
6. Debt ratio (Total Liabilities/Total assets)
461,315,042,000 / 721,494,374,000 = 0.64%

7. Debt-to-Equity ratio (Total Liabilities /Shareholder's Equity)

461,315,042,000 / 260,179,332,000= 1.77%

8. Times interest earned ratio (Earnings before interest, taxes/Interest

expense)
15,053,211,000 / 12,745,720,000 = 1.18%

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Profitability ratios
9. Gross Profit Margin (Gross Profit/Net sales)
15,053,211,000 / 96,272,699,000= 0.16%

10. Profit Margin (Net Income/Net sales)

10,994,238,000 / 96,272,699,000= 0.11%

Return on Investment
11. Return on Total Assets (Net income after interest and taxes/Ave. Total
Assets)
8,727,155,000 / 717,708,826,000 = .01%

12. Return on Equity (Net income - PS Dividend / Ave. SHE)

10,994,238,000 - 62,038,000 / 251,442,450,000 = 0.04%

Market Value ratios

13. Earnings per share (Net income after taxes and interest-PS Dividend/
common share outstanding) *common share outstanding is the no. of shares
8,727,155,000 - 62,038,000 / 14,721,234,000 = 0.59%

14. Price earnings ratio (Market Price/Earnings per share)

29.50/0.59 = 50.01%

15. Book value per share (Total SHE-PS/Common Share Outstanding)

260,179,332,000 - 62,038,000 / 14,721,234,000 = 17.67%

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INTERPRETATION
1. Working Capital- According on the results, as we calculate that the excess asset
is sufficient to cover the obligation.
2. Current Ratio- According on the results, as we calculate a current ratio larger
than 1.0, obviously it indicates that the company has a solid indicator or
sufficient assets to meet the obligation of the company.
3. Quick Ratio- As a result, the quick ratio is low because it is less than 1.0,
indicating that the company has twice as many current obligations as quick
assets, increasing the likelihood that the company may have difficulty paying
current liabilities.
4. Cash Position ratio – According on the result, the cash position ratio is less than
1, it resulted to 0.09% which means that the company has no enough cash on
hand.
5. Total Asset Turn-Over - According on the result, the ratio is less than 1, meaning
the company is not capable to generate revenue.
6. Debt ratio – According on the result, the debt ratio is less than 1, meaning the
company has less debt than assets.
7. Debt-to-Equity ratio- According on the result, the ratio is greater than 1, which
means the majority of the asset are funded through debt.
8. Times interest earned ratio- According on the result, the ratio is enough, which
means the company (Ayala land Corp.) has the ability to fulfill its debt
obligation.
9. Gross Profit Margin- According on the result, the gross profit margin is high,
which means it is a good sign for business. The higher the gross profit margin is
good.
10.Profit Margin- As a result, the bigger operating margins are generally preferred
over lower operating margins; thus, it is probably reasonable to argue that the
only good operating margin is one that is positive and grows over time.
11.Return on Total Assets- A ROA of 5% or higher is normally deemed desirable,
although it was less than that. The return on investment (ROI) figure informs
investors about how well a company transforms its investments into profit. The
higher the return on investment (ROI), the better, because the company will be

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 able to earn more money with less investment. Simply put, a lower ROA
denotes lesser asset efficiency.
12.Return on Equity - A ROE of around 14 percent is considered acceptable;
however, a ratio of around 14 percent that is similar to the long-term average
of the 500 is also considered acceptable. The resulting return on equity is 0.04,
indicating that a greater ROE indicates that a corporation efficiently uses its
shareholders' equity to generate profits.
13.Earnings per share- When compared to competitors in its industry, EPS reveals
how much a company generates per share, with a higher EPS reflecting a higher
stock value. The higher a company's earnings per share, the better its
profitability. However, the firm EPS is just 0.59, implying that the lower the
earnings per share of the company (Ayala Land Corp.), the less profitable it is.
14.Price earnings ratio- The price-to-earnings ratio represents what the market is
willing to pay for a stock right now based on its prior or predicted earnings. A
high P/E ratio may imply that a stock's price is too high in relation to its earnings
and that it is overvalued. A low P/E ratio, on the other hand, may indicate that
the current stock price is cheap in comparison to earnings. In relation to the
outcome, the ratio is high, implying that as a company matures, it will expand
more slowly and the P/E ratio will fall.
15.Book value per share- The outcome is that the book value per share is the
amount of assets that will be converted to common stock in the event of a
liquidation. As a result, a higher book value indicates that the shares have a
higher liquidation value. Strictly speaking, the bigger the book value, the more
valuable the share.

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 When the Ayala Group decided to break out its real estate division in 1988 so that
it could focus on property development, Ayala Land was formed. The company, which is
one of the Philippines' largest, focuses on property development and management,
commercial leasing, and hotels and leisure services. Ayala Land is the Philippines' leading
property developer, having a proven track record of creating large-scale, integrated,
mixed-use, sustainable estates that have grown into vibrant economic hubs in their
respective regions. Ayala Land continues to build high-end residential, retail,
commercial, hotel, and resort properties. It is a very solid business with a great financial
position. Behind the Ayala’s success is the company's strong commitment to nation-
building and development, which reflects its philosophy that inclusivity and
sustainability are essential for long-term success.