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# I.

## ANALYSIS OF LIQUIDITY OR SHORT TERM SOLVENCY

Liquidity ratios are ratios that measure the firm’s ability to meet cash as they
rise.

CURRENT RATIO:
The current ratio describes the ability of a company to meet current debt
obligations with asset that are readily available.

Current Assets
Current Liabilities
479,243
379,608
= 1.21:1

QUICK RATIO:
Quick ratio tells whether the company could pay all its current liabilities
even if none of the inventory is sold.
Quick Assets
Current Liabilities
203,153 CASH AND CASH EQUIVALENT
317,678 QUICK ASSETS

317,678
379608
= 0.84:1

## FINANCIAL RATIO ANALYSIS OF SAN MIGUEL CORPORATION

II. ANALYSIS OF ASSET LIQUIDITY AND ASSET MANAGEMENT
EFFICIENCY
Ratios that measure the liquidity of specific assets and efficiency in managing
assets such as accounts receivable, inventory and fixed assets.

RECEIVABLES TURNOVER:
Account Receivable turnover measures the company’s ability to collect from
credit customer. It indicates number of times that the average balance of account
receivable is collected during the period. The ratio is calculated as follows:

## Net Credit Sales

Average Receivables

## 2016 2015 TOTAL

RECEIVABLE OF:
114,525 100727 215,252

685,314
215,252 / 2
685,314
107,626
= 6.37 times

## AVERAGE AGE OF RECEIVABLE:

Average age of Receivable provides a rough approximation of the average time
that it takes to collect receivables. Average age of receivables is determined as follows:

360 Days
Receivables Turnover

## FINANCIAL RATIO ANALYSIS OF SAN MIGUEL CORPORATION

360
6.37 times
= 56.5 / Days

INVENTORY TURNOVER:
Inventory turnover is a measure of the number of times a company sold its
average level of inventory during the period.

## Cost of Goods Sold

Ave. Merchandise Inventory

## 83, 241 64, 148 147, 389

514, 021
(147, 389/2)
= 6.98 times
AVERAGE AGE OF INVENTORY:
Average age of inventory provides a rough measure of the length of time it takes
to acquire, sell and replace inventory. Average age of inventory is determined as
follows:
360 days
Inventory Turnover

360
6.98 times
= 51.57 days

## FINANCIAL RATIO ANALYSIS OF SAN MIGUEL CORPORATION

RAW MATERIALS TURNOVER:
Raw materials turnover measures the number of times that raw materials
inventory was used and replenished during the period.

## Cost of Materials Used

Average Raw Material Inventory

## 2016 2015 TOTAL

RAW MATERIALS OF:
29, 180 24, 765 53, 945

29,180
53, 945 / 2
= 1.08 times

## FINISHED GOODS INVENTORY:

Finished goods inventory measures the efficiency of the firm in managing and
selling inventories.
Cost of Goods Sold
Averaged Finished Goods Inventory
FINISHED GOODS
INVENTORY OF: 2016 2015 TOTAL

52,153
90,054/2
= 1.16 times

## FINANCIAL RATIO ANALYSIS OF SAN MIGUEL CORPORATION

CURRENT ASSETS TURNOVER:
Current assets turnover measures the movement and utilization of current
resources to meet operating requirements.

## Cost of Sale + Operating Expense

Average Current Assets

## 2016 2015 TOTAL

CURRENT ASSET OF:
479,243 422,611 901, 854

## 514, 021 + (-71639)

901, 854/2

442, 652
450927
= 0.98 times
III. ANALYSIS OF LONG-TERM FINANCIAL POSITION OR STABILITY
Ratios that measure the ability of a company to survive over a long period of
time.

DEBT-EQUITY RATIO:
Debt to equity ratio measures the riskiness of a firm’s capital structure in terms
of relationship between funds supplied by the creditors (debt) and investors (equity).

Total Liabilities
Total Equity

870,043
436,781
= 1.99 or 199%

## FINANCIAL RATIO ANALYSIS OF SAN MIGUEL CORPORATION

DEBT RATIO:
Debt ratio shows the percentage of a company’s assets financed by debt.
Total Liabilities
Total Assets

870,043
1,306,824
= 0.67 or 67%

EQUITY RATIO:
Equity ratio shows the percentage of the firm’s assets financed by shareholders.

Total Equity
Total Assets
436,781
1,306,824
= 0.33 or 33%