ST.

LOUISE DE MARILLAC COLLEGE OF SORSOGON

BASIC EDUCATION DEPARTMENT –Senior High School Tugos Site, Sorsogon City

Financial Analysis

Horizontal Analysis

Vertical Analysis

Trend Analysis

Financial Ratios

1. Liquidity Ratio
2. Solvency Ratio
3. Profitability Ratio

Liezel B. Dela Fuente

ABM-12-SGBM

Submitted to: Mr. Estelito Jarabo

Business Finance
 Trompo Company
Statement of Financial Performance
December 31,2022 and December 31,2023

2023 2022
Net Sales ₱7,457,736.00 ₱6,396,040.00
Less- Cost of Goods Sold ₱6,228,552.00 ₱5,859,680.00
Gross Profit ₱1,229,184.00 ₱536,360.00
Less- Other expenses ₱886,177.00 ₱561,974.00
Operating Income/Loss ₱343,007.00 -₱25,614.00
Less- Interest Expense ₱74,208.00 ₱144,173.00
Net Income/Loss ₱268,799.00 -₱169,787.00

Trompo Company
Statement of Financial Position
December 31,2022 and December 31,2023

2023 2022
CURRENT ASSETS
Cash ₱91,626.00 ₱7,792.00
Net Accounts Receivable ₱939,460.00 ₱676,411.00
Inventories ₱1,836,634.00 ₱1,377,475.00
Prepaid Rent ₱180,000.00 ₱360,000.00
Total Current Assets ₱3,047,720.00 ₱2,421,678.00

NON-CURRENT ASSETS
Equipment and Fixtures ₱1,280,961.00 ₱1,287,157.00
Less-Accumulated
₱406,728.00 ₱281,582.00
Depreciation
Total Non-Current Assets ₱874,233.00 ₱1,005,575.00

TOTAL ASSETS ₱3,921,953.00 ₱3,427,253.00

CURRENT LIABILITIES
Accounts Payable ₱467,376.00 ₱560,851.00
Notes Payable ₱321,000.00 ₱681,385.00
Accruals ₱436,560.00 ₱523,872.00
Total Current Liabilities ₱1,224,936.00 ₱1,766,108.00

NON-CURRENT
LIABILITIES
Long Term Debt ₱608,000.00 ₱1,134,072.00
Total Non-Current Liabilities ₱608,000.00 ₱1,134,072.00

Trompo, Capital ₱2,089,017.00 ₱527,073.00

Total Equity and Liabilities ₱3,921,953.00 ₱3,427,253.00

 Horizontal Analysis

Trompo Company
Statement of Financial Performance
December 31,2022 and December 31,2023

Increase (Decrease)
2023 2022
Amount Percent
Net Sales ₱7,457,736.00 ₱6,396,040.00 ₱1,061,696.00 16.60
Less- Cost of Goods
₱6,228,552.00 ₱5,859,680.00 ₱368,872.00 6.30
Sold
Gross Profit ₱1,229,184.00 ₱536,360.00 ₱692,824.00 129.17
Less- Other expenses ₱886,177.00 ₱561,974.00 ₱324,203.00 57.69
Operating
₱343,007.00 -₱25,614.00 ₱368,621.00 (1439.14)
Income/Loss
Less- Interest
₱74,208.00 ₱144,173.00 -₱69,965.00 (48.53)
Expense
Net Income/Loss ₱268,799.00 -₱169,787.00 ₱438,586.00 (258.32)

Trompo Company
Statement of Financial Position
December 31,2022 and December 31,2023
 Increase (Decrease)
2023 2022
Amount Percent
CURRENT ASSETS
Cash ₱91,626.00 ₱7,792.00 ₱83,834.00 1075.90
Net Accounts
₱939,460.00 ₱676,411.00 ₱263,049.00 38.90
Receivable
Inventories ₱1,836,634.00 ₱1,377,475.00 ₱459,159.00 33.33
Prepaid Rent ₱180,000.00 ₱360,000.00 -₱180,000.00 (50.00)
Total Current Assets ₱3,047,720.00 ₱2,421,678.00 ₱626,042.00 25.85

NON-CURRENT
ASSETS
Equipment and
₱1,280,961.00 ₱1,287,157.00 -₱6,196.00 (0.48)
Fixtures
Less-Accumulated
₱406,728.00 ₱281,582.00 ₱125,146.00 44.44
Depreciation
Total Non-Current
₱874,233.00 ₱1,005,575.00 -₱131,342.00 (13.06)
Assets

TOTAL ASSETS ₱3,921,953.00 ₱3,427,253.00 ₱494,700.00 14.43

CURRENT
LIABILITIES
Accounts Payable ₱467,376.00 ₱560,851.00 -₱93,475.00 (16.67)
Notes Payable ₱321,000.00 ₱681,385.00 -₱360,385.00 (52.89)
Accruals ₱436,560.00 ₱523,872.00 -₱87,312.00 (16.67)
Total Current
₱1,224,936.00 ₱1,766,108.00 -₱541,172.00 (30.64)
Liabilities

NON-CURRENT
LIABILITIES
Long Term Debt ₱608,000.00 ₱1,134,072.00 -₱526,072.00 (46.39)
Total Non-Current
₱608,000.00 ₱1,134,072.00 -₱526,072.00 (46.39)
Liabilities

₱1,561,944.0
Trompo, Capital ₱2,089,017.00 ₱527,073.00 296.34
0

Total Equity and

₱3,921,953.00 ₱3,427,253.00 ₱494,700.00 14.43
Liabilities
 Vertical Analysis

Trompo Company
Statement of Financial Performance
December 31,2022 and December 31,2023

2023 Percent 2022 Percent

Net Sales ₱7,457,736.00 100.00 ₱6,396,040.00 100.00
Less- Cost of Goods Sold ₱6,228,552.00 83.52 ₱5,859,680.00 91.61
Gross Profit ₱1,229,184.00 16.48 ₱536,360.00 8.39
Less- Other expenses ₱886,177.00 11.88 ₱561,974.00 8.79
Operating Income/Loss ₱343,007.00 4.60 -₱25,614.00 (0.40)
Less- Interest Expense ₱74,208.00 1.00 ₱144,173.00 2.25
Net Income/Loss ₱268,799.00 3.60 -₱169,787.00 (2.65)

Trompo Company
Statement of Financial Position
December 31,2022 and December 31,2023

2023 Percent 2022 Percent

CURRENT ASSETS
Cash ₱91,626.00 2.34 ₱7,792.00 0.23
Net Accounts Receivable ₱939,460.00 23.95 ₱676,411.00 19.74
 ₱1,836,634.0 ₱1,377,475.0
Inventories 46.83 40.19
0 0
Prepaid Rent ₱180,000.00 4.59 ₱360,000.00 10.50
₱3,047,720.0 ₱2,421,678.0
Total Current Assets 77.71 70.66
0 0

NON-CURRENT ASSETS
₱1,280,961.0 ₱1,287,157.0
Equipment and Fixtures 32.66 37.56
0 0
Less-Accumulated
₱406,728.00 10.37 ₱281,582.00 8.22
Depreciation
₱1,005,575.0
Total Non-Current Assets ₱874,233.00 22.29 29.34
0

₱3,921,953.0 ₱3,427,253.0
TOTAL ASSETS 100.00 100.00
0 0

CURRENT LIABILITIES
Accounts Payable ₱467,376.00 11.92 ₱560,851.00 16.36
Notes Payable ₱321,000.00 8.18 ₱681,385.00 19.88
Accruals ₱436,560.00 11.13 ₱523,872.00 15.29
₱1,224,936.0 ₱1,766,108.0
Total Current Liabilities 31.23 51.53
0 0

NON-CURRENT
LIABILITIES
₱1,134,072.0
Long Term Debt ₱608,000.00 15.50 33.09
0
₱1,134,072.0
Total Non-Current Liabilities ₱608,000.00 15.50 33.09
0

₱2,089,017.0
Trompo, Capital 53.26 ₱527,073.00 15.38
0

₱3,921,953.0 ₱3,427,253.0
Total Equity and Liabilities 100.00 100.00
0 0
 Trend Analysis

Trompo Company
Statement of Financial Performance
December 31,2022 and December 31,2023

2023 Percent 2022 Percent

Net Sales ₱7,457,736.00 116.60 ₱6,396,040.00 100
Less- Cost of Goods
₱6,228,552.00 106.30 ₱5,859,680.00 100
Sold
Gross Profit ₱1,229,184.00 229.17 ₱536,360.00 100
Less- Other expenses ₱886,177.00 157.69 ₱561,974.00 100
Operating Income/Loss ₱343,007.00 (1339.14) -₱25,614.00 100
Less- Interest Expense ₱74,208.00 51.47 ₱144,173.00 100
Net Income/Loss ₱268,799.00 (158.32) -₱169,787.00 100

Trompo Company
 Statement of Financial Position
December 31,2022 and December 31,2023

2023 Percent 2022 Percent

CURRENT ASSETS
Cash ₱91,626.00 1175.90 ₱7,792.00 100.00
Net Accounts Receivable ₱939,460.00 138.89 ₱676,411.00 100.00
₱1,377,475.0
Inventories ₱1,836,634.00 133.33 100.00
0
Prepaid Rent ₱180,000.00 50.00 ₱360,000.00 100.00
₱2,421,678.0
Total Current Assets ₱3,047,720.00 125.85 100.00
0

NON-CURRENT ASSETS
₱1,287,157.0
Equipment and Fixtures ₱1,280,961.00 99.52 100.00
0
Less-Accumulated
₱406,728.00 144.44 ₱281,582.00 100.00
Depreciation
₱1,005,575.0
Total Non-Current Assets ₱874,233.00 86.94 100.00
0

₱3,427,253.0
TOTAL ASSETS ₱3,921,953.00 114.43 100.00
0

CURRENT LIABILITIES
Accounts Payable ₱467,376.00 83.33 ₱560,851.00 100.00
Notes Payable ₱321,000.00 47.11 ₱681,385.00 100.00
Accruals ₱436,560.00 83.33 ₱523,872.00 100.00
₱1,766,108.0
Total Current Liabilities ₱1,224,936.00 69.36 100.00
0

NON-CURRENT
LIABILITIES
₱1,134,072.0
Long Term Debt ₱608,000.00 53.61 100.00
0
₱1,134,072.0
Total Non-Current Liabilities ₱608,000.00 53.61 100.00
0

Trompo, Capital ₱2,089,017.00 396.34 ₱527,073.00 100.00

₱3,427,253.0
Total Equity and Liabilities ₱3,921,953.00 114.43 100.00
0
 Liquidity Ratio

1. Current Ratio

2023 2022

₱ 3,0427,720 ₱ 2,421,678
Current Assets ₱ 1,224,936 ₱ 1,766,108
Current Liabilities

2.49 1.37

2. Quick Ratio

2023 2022

₱ 91,626+ ₱ 939,460 ₱ 7,792+ ₱ 676,411

₱ 1,224,936 ₱ 1,766,108
 Cas h+¿ S h ort Term Investments
+Trade receivable 0.84 0.39
Current Liabilities

3. Receivable Turnover

2023 2022
Receivable Turnover

Net Credit Sales ₱ 7,457,736 ₱ 6,396,040

Average Trade ₱ 807,935.5 ₱ 807,935.5
Receivable

9.23 Times 7.92 Times

Average Receivable

Beginning
Trade Receivable ₱ 676,411+ ₱ 939,460
+ Ending Trade 2
Receivable
2

₱ 807,935.50

4. Average Collection Period

2023 2022

Average Collection Period 360 360

9.23 7.92
360 Days
Trade Receivable 39 Days 45 Days
Turnover

Average Daily Sales ₱ 7,457,736 ₱ 6,396,040

360 360
Annual Credit Sales
360 Days ₱ 20,715.93 ₱ 17,766.78

Average Collection Period ₱ 807,935.50 ₱ 807,935.50

₱ 20,715.93 ₱ 17,766.78
 Average Receivables 39 Days 45 Days
Average Daily Sales

5. Inventory Turnover

2023 2022

Inventory Turnover ₱ 6,228,552 ₱ 5,859,680

₱ 1,607,054.50 ₱ 1,607,054.50
Cost of Goods Sold
Average Inventory 3.88 Times 3.65 Times

Average Inventory 1,377,475+ 1,836,634

2
Beginning Inventory+ ¿ Ending Inventory
2 ₱ 1,607,054.50

6. Average Sales Period

2023 2022

Average Sales Period 360 360

3.88 3.65
360 Days
Inventory Turnover 92.89 Days 98.73 Days

7. Working Capital

2023 2022

Working Capital ₱ 3,047,720 −₱ ₱ 2,421,678 −¿ ₱

1,224,936 1,766,108
Current Assets −¿
Current Liabilities ₱ 1,822,784 ₱ 655,570
 Solvency Ratio

1. Debt Ratio

2023 2022

Debt Ratio ₱ 1,832,936 ₱ 2,900,180

₱ 3,921,953 ₱ 3,427,253
Total Liabilities
Total Assets 46.74 84.62

2. Equity Ratio

2023 2022

Equity Ratio ₱ 2,089,017 ₱ 527,073

₱ 3,921,953 ₱ 3,427,253
Total Equity
Total Assets 53.26 15.28

3. Debt to Equity Ratio

2023 2022
 Debt to Equity Ratio ₱ 1,832,936 ₱ 2,900,180
₱ 2,089,017 ₱ 527,073
Total Liabilities
Total Equity 0.88 5.50

4. Times Interest Earned

2023 2022

Times Interest Earned ₱ 343,007 ₱ −25,614

₱ 74,208 ₱ 144,173
Income before Interest
¿ Taxes 4.62 -0.18
Interest Expense

Profitability Ratio

1. Gross Profit Ratio

2023 2022

Gross Profit Ratio ₱ 1,229,184 ₱ 536,360

₱ 7,457,736 ₱ 6,396,040
Gross Profit
Net Sales 16.48% 8.39%

2. Operation Profit Margin

2023 2022

Operating Profit Margin ₱ 343,007 ₱ −25,614

₱ 7,457,736 ₱ 6,396,040
Operating Income
Net Sales 4.60% -0.40%
3. Net Profit Margin

2023 2022

Net Profit Margin ₱ 268,799 ₱−169,787

₱ 7,457,736 ₱ 6,396,040
Net Income
Net Sales 3.60% -2.65%

4. Return on Assets

2023 2022

Return on Assets ₱ 268,799 ₱ −169,787

₱ 3,674,603 ₱ 3,674,603
Net Income
Averafe Total Assets 7.32% -4.62%

Average Total Assets ₱ 3,921,953+ ₱ 3,427,253

2
Assets at Beginning of
t h e Year + Assets at ₱ 3,674,603
Ending of t h e Year
2

5. Return on Equity

2023 2022

Return on Equity
₱ 268,799 ₱ −169,787
Net Income ₱ 1,308,045 ₱ 1,308,045
Average Owner ' s Equity
20.55% -12.98%
 Average Owner’s Equity
₱ 527,073+ ₱ 2,089,017
BeginningOwner ' s 2
Equity+ Ending Owner ' s
Equity ₱ 1,308,045
2

Asset Management Ratio

a. Fixed Asset Turnover

2023 2022

Fixed Asset Turnover ₱ 7,457,736 ₱ 6,396,040

₱ 1,879,808 ₱ 1,879,808
Net Sales
Average Non −Current 3.79 Times 3.40 Times
Assets

Average Non-Current Asset ₱ 1,005,575+ ₱ 874,233

2
Beginning Non−Current
Assets+ Ending Non−¿Current Assets ₱ 1,879,808
2

b. Total Asset Turnover

2023 2022

Total Asset Turnover ₱ 7,457,736 ₱ 6,396,040

₱ 3,674,603 ₱ 3,674,603
Net Sales
Average Total Assets 2.03 Times 1.74 Times

Average Total Assets ₱ 3,427,253+ ₱ 3,921,953

2
Beginning Total Assets
+¿ Ending Total Assets ₱ 3,674,603
2