Your Name : Ma. Jessabel P.

Barboza
Professor Name : Marsha Mila V. Lorenzo
Subject Name : Business Finance

RATIO ANALYSIS
Technique where different line items from the financial statements are being compared
(including across Financial statements).
4 MAIN CATEGORIES OF FINANCIAL RATIOS
1.Liquidity
2.Profitability
3.Efficiency
4.Leverage
Let’s define : Liquidity – refers to the company’s ability to satisfy it’s short-term obligations.
Liquidity = Cash Convertibility
Current Ratio = Current Assets over Current Liabilities
Quick Ratio = Cash ( Marketable Securities+ Accounts Receivable over Current liabilities
The statement of Financial Position of three Companies: Jollibee, Petron, & Globe

Jollibee Foods Corporation (JCF) – has relatively high current and quick ratio, driven by it’s high
cash and receivable balances , with it’s mass market operations and expansion plans, high
liquidity ratios .
Petron Corporation – established company operating in a stable oil industry, Petrons liquidity
ratios low is the Php 133 billion short-term debt, If this is taken out, Petron’s Liquidity ratios will
be much higher.
Globe Corporation – Globe’s Liquidity ratios are relatively low compared to the other companies.