VERTICAL ANALYSIS

COMPONENT/ TOTAL = PERCENTAGE

HORIZONTAL ANALYSIS

CURRENT YEAR – BASE YEAR / BASE YEAR = CHANGES (%)

LEVERAGE ANALYSIS

DEBT/EQUITY = TOTAL DEBT/ TOTAL SHAREHOLDRS EQUITY, < 0.4 RECOMMENDED

DEBT/EBITDA = NET DEBT/ EARNINGS BEFORE INTEREST + TAX + DEPRECIATION + AMORTIZATION, LOW=NOT EXCESSSIVELY IN DEBT

EBIT/INTEREST COVERAGE = EBIT / INTEREST EXPENSE , HIGHER= STRONGER FINANCIAL HEALTH

DUPONT = DI KO GETS HEHEHEMAY ROE(PART TO ATTA NG RISK) NA PART IH

GROWTH RATES – WALANG INTERPRETATIONS SA SITE

YEAR TO YEAR = CURRENT YEAR- BASE YEAR/ BASE YEAR, SAME LANG SA HORIZOTAL

REGRESSION ANALYSIS = Y(DEPENDENT) = a(INTEREST) + b(SLOPE) X (INDEPENDENT) + E(ERROR)

STRAIGHT LINE = SAME SA YTOY PERO ASSUME CONSTANT YUNG PERCENTAGE OF CHANGE

MOVING AVERAGE = DI KO RIN GETS PERO YUNG PAGKUHA NG PERCENTAGE PER YEAR SAME SA YTOY, SAKA IAAVERAGE

PROFITABILITY AVERAGE- LAHAT RECOMMENDED NA HIGHER, KASI THIS INDICATES THE ABILITY TO GENERATE PROFIT

GROSS MARGIN= REVENUE-COGS/ REVENUE

EBITDA MARGIN = EARNINGS BEFORE INTEREST + TAX + DEPRECIATION + AMORTIZATION/ NET SALES

EBIT MARGIN = EBIT/ TOTAL REEVNUE, EBIT= NET INCOME+ INTEREST + TAX

NET PROFIT MARGIN = NET PROFIT/ REVENUE

LIQUIDITY ANALYSIS – THE HIGHER THE BETTER ULIT

CURRENT RATIO = CURRENT ASSETS/ CURRENT LIABILITIES

ACID TEST = CURRENT ASSET – INVENTORY/ CURRENT LIABILITY

CASH RATIO = CASH AND CASH EQUIVALENT / CURRENT LIABILITIES

NET WORKING CAPITAL = CURRENT ASSET-CURRENT LIABILITIES AND ESXPENSE/ TOTAL ASSETS

EFFICIENCY ANALYSIS – HIGH ULIT RECOMMENDED, ISIPIN MO NA LANG KUNG BAKIT

ASSET TURNOVER RATIO = NET SALES/ AVERAGE TOTAL ASSET

FIXED ASSET TURNOVER RATIO = NET SALES/ AVERAGE FIXED ASSET

CASH CONVERSION RATIO = PART NG CASH FLOW/ NET INCOME

INVENTORY TURNOVER RATIO = COGS/ AVERAGE INVENTORY

CASH FLOW

OPERATING CASH FLOW (OCF)

FREE CASH FLOW (FCF) =

FREE CASH FLOW TO THE FIRM (FCFF) = NET OPERATING CASHFLOW + DEPRE AND AMORTIZATION – CAPITAL EXPENDITURE – NET CHANGES IN WORKING CAPITAL

FREE CASH FLOW TO EQUITY (FCFE) = CASH FORM OPERTING ACTIVITIES – CAPITAL EXPENDITURES + NET DEBT ISSUED (REPAID)