Beruflich Dokumente
Kultur Dokumente
Accounting 2
Fontanilla, Ann Mary
BABA 4A
Higgins, Ma. Isabel
Magbanua, Uziel Anne
Saturnino, Michael Carlo
Management
LIQUIDITY RATIOS:
Current Ratio =
Current Assets
Current Liabilities
2000
2.12
Current Ratio
2001
2.02
2002
1.74
2003
1.67
Supporting Computations:
Yr . 2000=
5, 639
5, 631
=2.12 Yr . 2001=
=2.02
2, 656
2, 782
Yr . 2002=
6, 999
7, 848
=1.74 Yr . 2003=
=1.67
4, 013
4, 692
The current ratio determines the liquidity of the company on a shortterm basis considering as to how current assets can be able to pay off its
short-term debt. Based on the computations, the current ratio keeps on
decreasing from year to year. This means that the liquidity of the company is
weak and it may be hard for them to repay the short-term loan.
WorkingCapital=Current AssetsCurrent Liabilities
Working Capital
2000
2, 983
2001
2, 849
2002
2, 986
2003
3, 156
Supporting Computations:
Yr . 2000=5,6392, 656=2, 983 Yr .2001=5, 6312,782=2, 849
computed using the current ratio. Other factors should still be considered
and more liquidity ratios are to be evaluated.
Acid Test Ratio=
Quick Assets
Current Liabilities
2000
1.12
2001
1.13
2002
1.02
2003
1.00
2002
5.83
2003
5.59
Supporting Computations:
Yr . 2000=
107+ 2862
141+ 3007
=1. 12 Yr . 2001=
=1.13
2, 656
2,782
Yr . 2002=
709+3378
916+3767
=1. 02Yr . 2003=
=1.00
4, 013
4, 692
2000
4.93
Inventory Turnover
2001
5.57
Supporting Computations:
Yr . 2000=
12816
13884
=4.93 Y r . 2001=
=5.57
2600
2600+ 2383
2
Y r . 2002=
15163
16527
=5.83 Y r .2003=
=5.59
2383+2821
2821+3090
2
2
Receivable Turnover=
2000
6.39
Receivable Turnover
2001
6.66
2002
6.88
2003
6.75
Supporting Computations:
19558
=6.39Y r . 2001=
=6.66
( 18297
)
2862
2862+3007
Yr . 2000=
2
21976
24128
=6.88Y r . 2003=
=6.75
3378+3007
3378+ 3767
2
2
Yr . 2002=
2000
13.37
Payable Turnover
2001
11.79
2002
10.64
2003
8.32
Supporting Computations:
13667
=10.37 Y r . 2001=
=11.79
( 15416
)
1153
1153 +1166
Yr . 2000=
Yr . 2002=
15601
16796
=10.64 Y r .2003=
=8.32
1166+1767
1767+2272
2
2
PROFITABILITY RATIOS
Return on sales=Net Income/ Net Sales
2000
1.94%
Return on Sales
2001
1.68%
2002
3.04%
2003
3.54%
2002
31.00%
2003
31.50%
Supporting Computations:
Yr . 2000=
355
328
=1.94 Yr .2001=
=1.68
18297
19558
Yr . 2002=
667
854
=3.04 Yr . 2003=
=3 .54
21976
24128
2000
29.96%
2001
29.01%
Supporting Computations:
Yr . 2000=
5481
5674
=29.96 Yr . 2001=
=29.01
18297
19558
Yr . 2002=
6 813
7601
=3 1.00 Yr . 2003=
=3 1.50
21976
24128
2000
11.97
2001
7.84
2002
4.98
2003
5.70
Supporting Computations:
Yr . 2000=
6416
6504
=11.97 Yr .2001=
=7.84
536
830
Yr . 2002=
7393
7936
=4.98Yr . 2003=
=5.70
1485
1393
Despite that Cash flow from operations are increasing and debts are not
being paid, debts are also increasing, which makes us conclude that the
company is paying the liabilities at a slower rate.