C O R P O R ATI O N

G R O U P 3
A U S T R I A , C A R E N
C A D A Y , S H A Y N E M A R I O N
D E G U Z M A N , V A N E S S A
P A D I L L A , A N G E L A
V A L E N C I A , M A . R O W E N A
COMPANY BACKGROUND
engaged in refining of crude oil, marketing
and distribution of refined petroleum products
founded on December 22, 1966
headquartered in Mandaluyong, Philippines
operates through four segments such as
Petroleum, Insurance, Leasing and Marketing
continues to have a tie-up with San Miguel
Group for the San Mig Avenue convenience
stores
re-launched the Treats store as the secondary
retail store brand in 2014
COMPANY BACKGROUND

PCOR Agenda:
takes corporate and social citizenship to
heart
continues to be the leading provider of
total customer solutions in the energy
sector
RELEVANT
FINANCIAL
ANALYSIS TOOLS
CURRENT RATIO
A liquidity ratio that measures a
company's ability to pay short term and
long term obligations.

Current RatioCurrent
= Current Asset
Liabilities

DEBT-TO-EQUITY RATIO
Measures the use of debt to finance
the operations.
Reflects the degree to which a
company is leverage, which shows the
company's financing results from debt
opposed to its equity.

Debt-to-Equity Ratio = Total Liabilities

Total Shareholders
Equity
QUICK RATIO
Indicates the short-term liquidity of a
company.
Measures the ability of the company to meet
its short-term obligations with its most liquid
assets. Cash and equivalents +
Marketable securities +
Accounts Receivables
Quick Ratio =
Current
Liabilities
DEGREE OF FINANCIAL
LEVERAGE
It is a ratio that measures the
sensitivity of the Earnings per share of
a company.

DFL =
%% Change
Change inin EPS
EBIT
EFFICIENCY RATIOS
Used to analyze how well a company use its
assets and manage its liabilities effectively.

Asset Turnover ratio - which measures

company's ability to generate revenues
from its assets efficiently.
Revenue
Asset Turnover Ratio =
Total
Assets
 Inventory turnover - A ratio that shows
how many times a company's inventory is
sold and replaced over a period of time.

Inventory Turnover = Sales

Average
Inventory
Average inventoryBeginning
= inventory + Ending
inventory
2
 Receivables Turnover Ratio - A ratio which
measures the firms effectiveness in
extending credit and collecting the debts .

Net =
Accounts Receivable Turnover Credit
Sales
Average Accounts
Receivable
Accounts
Average Accounts Receivable =
Receivable
Beginning of the
desired period +
Accounts2
Receivable Ending
 FINANCIAL
S T AT E M E N T S
S TAT E M E N T O F F I N A N C I A L P O S I T I O N
S TAT E M E N T O F F I N A N C I A L
PERFORMANCE
S TAT E M E N T O F C A S H F L O W S
 3,14 24,43 39,86 (71,89
2 7 3 7)

49,23 38,00 35,06 (103,3

04)
7 7 9

51,69 39,50 11,91 8,037

4 7 3

103,4 78,25 33,86 (97,05

05 8 6 7)

103,53 43,564 30,498 (82,35

2 4)

(127) 34,694 3,368 (14,70

3)
150,83 38,843 18,897 (122,357 (30,525)
9 )
(4,311) 4,340 (3,724) 12,305 3,562

(11,884) 3,990 (3,919) 11,146 3,558

(6,270) 3,048 (1,927) 2,298 2,616

 1,064 31,898 (34,32 7,892 14,757
8)

(41,224 20,532 39,509 (10,772 9,832

) )

63,749 (32,86 11,949 (110,831) 40,688

8)
FINANCIAL
A N A LYS I S
FINANCIAL ANALYSIS
[ Horizontal Analysis ]

Revenue
(2011-2014) increase in the revenue
(2015) revenue decreased by Php
122, 357
due to price hike

Net income
(2011-2015) income fluctuates
 FINANCIAL ANALYSIS
[ Horizontal Analysis ]

Cash
(2011-2014) increase in total
cash balances
(2015) severe decline on the
balance when compared to 2014

Total assets
(2011-2014) expanded
(2015) slight decrease
machineries got worn out,
others got sold for replacement
 FINANCIAL ANALYSIS
[ Horizontal Analysis ]

Earnings per share

talks about how profitable a corporation is
indicates a go or stop signal on investing
(2011-2015) both basic and diluted earnings per share fluctuated
 RATIO
A N A LYS I S
CURRENT RATIO
(In millions) 2015 2014 2013 2012 2011

Current
115,725.00 219,029.00 183,960.00 145,853.00 96,616.00
Assets
Current
126,579.00 202,587.00 176,570.00 139,932.00 66,073.00
Liabilities

Ratio 0.91 1.08 1.04 1.04 1.46

(2011-2014) ability to pay back its current liabilities with its

current assets.

(2015) Current assets is less than the current liabilites, company

may have insufficient funds to pay off its debt.
DEBT-TO-EQUITY RATIO
(In
2015 2014 2013 2012 2011
millions)
Total
211,638 293,992 263,494 219,930 116,398
Liabilities

Total
shareholdes' 82,629 97,332 93,964 59,270 59,397
Equity

Ratio 256.13% 302.05% 280.42% 371.06% 195.97%

(2011-2015) The company has been heavily taking on debts

and thus has a high level of risk.
QUICK RATIO
(In millions) 2015 2014 2013 2012 2011

Current Assets 115,725.00 219,029.00 183,960.00 145,853.00 96,616.00

Inventory 30,823.00 53,180.00 51,721.00 49,582.00 37,763.00

Prepaid
--- --- --- --- ---
Expenses
Current
126,579.00 202,587.00 176,570.00 139,932.00 66,073.00
Liabilities

Ratio 67.07% 81.87% 74.89% 68.80% 89.07%

(2011-2015) Current payables are greater than its liquid assets,

low ability to pay off its current liabilities with its liquid assets.
DEGREE OF FINANCIAL
LEVERAGE
(In millions) 2015 2014 2013 2012 2011

EBIT 14,078 3,813 6,942 2,950 16,245

EBIT - Interest 9,925 3,813 6,942 2,950 11,121

Ratio 1.42 1.00 1.00 1.00 1.46

(2012-2014) No interest in debt therefore, DFL Ratio is equal to 1.

(2011 and 2015) Every change earnings before taxes there is 1.46 and
1.42 times change in EBIT respectively.

If the ratio shows a value higher than 1 it means that the increase in
revenue is more than the debt incurred.
ASSET TURNOVER RATIO
(In millions) 2015 2014 2013 2012 2011

Revenue 360,178 482,535 463,638 424,795 273,956

Total Assets 294,267 391,324 357,458 279,200 175,795

Ratio 1.22 1.23 1.30 1.52 1.56

Company is generating more revenue per peso of asset.

INVENTORY TURNOVER
(In millions) 2015 2014 2013 2012 2011

Sales 360,178.0 482,535.0 463,638.0 424,795.0 ---

0 0 0 0

Average Inventory 42,001.50 52,450.50 50,651.50 43,672.50 ---

Ratio (# of turnovers) 8.58 9.20 9.15 9.73 N/A

Higher Inventory turnover is preferred because it implies that

more sales are being generated given a certain amount of
inventory.
 RECEIVABLES TURNOVER
RATIO
(In millions) 2015 2014 2013 2012 2011

Net Credit Sales 360,178.00 482,535.00 463,638.00 424,795.00 --

Average Account Receivables 43,524.00 61,983.00 62,699.00 42,168.00 --

Ratio 8.28 7.78 7.39 10.07 N/A

(in days) 44.11 46.89 49.36 36.23 --

Higher number means the company is good at getting customers to

pay up.
 SUMMARY AND
RECOMMENDATIO
N
SUMMARY AND R E COM M E ND ATIO N
Looking at its financial performance, the
company is not performing in its best
condition.
Petron Corporation performs well from year
2011 to year 2014.
In year 2015, the company experienced
decreased in overall that resulted to a poor
financial performance.
The management should be more aware
on how they will improve their financial
performance.
The management should do something to
improve their liquid assets for them to