RATIO GLOBE PLDT EXPLANATION

LIQUIDITY RATIOS
Working Capital 2016 -29379243 -96,000,000 Both companes have negative working
capital, which means that current liabilities
Working Capital 2015 -18457462 -67,225,000 exceed current assets.

Current Ratio 2016 0.6434 0.4723 Though both companies cannot pay their
current obligations on time, Globe is more
Current Ratio 2015 0.7183 0.5763 liquid than PLDT.

Acid-test ratio 2016 0.4873 0.362 Though both companies cannot pay their
current obligations on time, Globe is still
Acid-test ratio 2015 0.5835 0.459 more liquid than PLDT even without having
to rely on inventory.

Accounts receivable 4.91 6.37 Though they were able to improve the
turnover 2016 average collection period compared to last
Accounts receivable 4.45 6.2 year, Globe takes longer time between
turnover 2015 making a sale and collecting cash of 74 days
than PLDT (only 57 days). This means that,
Average collection 74.34 57.3
PLDT is more aggressive to generate cash
period 2016
from their Account Receivables than Globe
Average collection 82.02 58.21 Telecom.
period 2015

Inventory turnover 2.63 3.25 Globe Telecom’s inventory turns over every
2016 138.8 days while PLDT’s inventory turns over
Inventory turnover 3.28 3.94 every 112.31 days. Though PLDT has higher
2015 cost of sales, Globe’s average inventory
Average sale period 138.8 112.31 balance is higher. Thus, PLDT is doing better
2016 because it takes less days to sell the
Average sale period 111.28 92.64 inventory.
2015
SOLVENCY RATIOS
Times interest earned 7.34 4.17 Globe has higher TIER ratio than PLDT, which
ratio 2016 means that they have better ability to make
Times interest earned 9.45 5.5 interest payments.
ratio 2015

Debt-to-equity-ratio 2.94 3.38 Globe also has higher debt-to-equity ratio

2016 than PLDT, which means that Globe has
higher assets being provided by creditors for
Debt-to-equity-ratio 2.29 3 each peso being provided by the equity
2015 holders.

PROFITABILITY RATIOS
Earning Per Share 2016 115.45 28.71 Both companies’ earnings per share
decreased in 2016, but Globe’s EPS is still
Earning Per Share 2015 120.11 48.38
significantly higher than PLDT’s.
Return on Asset 2016 8.20% 4.33% Though for both companies, the ROA
decreased in 2016, Globe has a higher ROA
Return on Asset 2015 9.80% 5.00% than PLDT, which means it managed its
assets better.
Return on common 25.21% 17.80% In 2016, the return on common
stockholders’ equity stockholder’s equity decreased, but Globe
2016 still has a higher return on common
Return on common 28.41% 18.00% stockholder’s equity. Both companies have
stockholders’ equity positive financial leverage.
2015
Book value per share 464.64 497 Even though PLDT’s BVPS decreased while
2016 Globe’s BVPS increased in 2016, PLDT still
Book value per share 434 555.67 has a higher BVPS. If all assets were sold and
2015 creditors paid off, PLDT distribute a higher
BVPS to common stockholders than Globe.