Balance Sheet (Vertical Analysis)

The common size statement shows that the cash and cash
equivalents account in year 2017 is 1.40 percent of the total assets which was
calculated by dividing the cash and cash equivalents balance by total assets,
2,075,454,523/148,126,547,802. Accounts payable and accrued expenses in year
2017 is 9.37 percent of total assets,13,883,446,747/148,126,547,802. Each balance
sheet item shown for year 2017 is divided by total assets of the same year. The
addition of each item percentage shown for year 2017 will equal to 100 percent,
which is the product of total assets divided by total assets.

On a standalone basis, we can derive the following conclusions from

the balance sheet. First, investment properties which is 46.90% in year 2017 is the
highest portion, same with year 2016. Robinsons Land Corporation is having huge
amount of investment properties. The company predominantly invested in
noncurrent assets than in current assets. Current assets are 27.60% in year 2017
and 32.68 percent in year 2016 of total assets, this low percentage means most of
RLC’s assets are non-liquid and it may be time to invest in short term assets. The
percentage of its fixed assets is very high which means that the company is a
huge capital intensive company as an investment in non-current assets. The debt
to equity ratio for year 2017 and 2016 of this company is 119.86 percent and 97.97
percent respectively. RLC has a high debt to equity ratio and is using more of its
debt and more debt brings financial leverage and tax savings.

Analysis of RLC’s balance sheet over different periods shows that its
cash and cash equivalents increased from 1.15 percent in 2016 to 1.40 percent
of the total assets. Receivables decreased from 5.76 percent to 3.76 percent in
2017. Inventories decreased from 20.88 percent to 17.98 percent overall. Other
current assets decreased to 4.46 percent over the last two years including year
2017. On the liabilities side, accounts payable and accrued expenses currently
stands at 9.27 percent. There has been a significant jump in the total noncurrent
liabilities to 31.63 percent in 2017. Long term borrowings have increased by 5.3%
which means that there is a slack repayment of loans in 2017. Reserves marginally
decreased by .01% compared to year 2016. This means profitability must have
decreased. The capital stock level remained almost the same and there is no
great issuance of capital in 2017. Non controlling interests decreased and is now
at .19 percent.
Balance Sheet (Horizontal Analysis)

A number of significant changes have occurred in Robinsons Land

Corporation financial structure from 2016-2017. The assets of RLC exhibits a
continuous increasing trend over the period except to receivables account. The
ending balance of the cash and cash equivalents account in year 2016 was
1,436,210,577 and in year 2017, the ending balance was 2,075,454,523. The ending
cash and cash equivalents balance is 639,243,946 positive or higher than year
2016. RLC’s receivables shows a negative change of 22.34 percent which means
that the ending balance of receivables decreased in 2017. Current assets
increases much faster than the non-current assets. The increase in non-current
liabilities is more than that of current liabilities. This may be due to lesser availability
of greater credit terms and lack of expansion of business. The total liabilities
increases in 2017 and according to analyst when liabilities increases, a company
faces less taxes. The capital stock remains the same because there is no fresh
issuance of shares.

Cash Flows (Horizontal Analysis)

Robinsons Land Corporations’ income before tax decreases to

7,835,407,838 in year 2017 producing a negative change of 4.26 percent. Net
cash flows from operating activities sharply increased from 853,098,851 to
15,283,487,273 creating a positive change of 1691.53 percent in 2017 and is really
necessary for a company to succeed over the long term. Both cash flows from
operating and investing activities produce a positive change except to financing
activities which has a negative change of 6.18 percent. It may indicate that
Robinsons Land Corporation is using cash from operations and from sale of fixed
assets to pay down debt or pay owners.