CHAPTER I

MARITON INC.
STATEMENT OF FINANCIAL POSITION
2018 and 2017

2018 2017
Assets
Current Asset
Cash & Cash Equivalents 10,687,359,234 8,065,646,235
Receivables-net 4,789,798,078 4,569,341,716
Merchandise Inventory 19,731,823,439 17,696,641,161
Investments in Trading securities 36,502,592 46,887,876
Prepaid expenses and other assets 1,192,910,954 1,179,663,000
Total Current Assets 36,438,394,297 31,558,179,988
Non-Current Asset
Investments 611,053,713 801,616,101
Property and Plant Equipment-net 19,489,073,780 17,696,372,319
Right of use of asset- net 20,447,037,780
Intangibles and goodwill 19,736,251,070 19,737,396,240
Deferred tax assets-net 297,012,557
Other non-current assets 2,115,425,536 1,886,062,097
Total Non-Current Assets 62,695,854,148 40,121,446,757
Total Assets 99,134,248,445 71,464,093,216
Liabilities
Current Liabilities
Accounts payable and accrued expenses 11,676,505,995 11,612,957,865
Short term lons payable 4,756,300,000 4,112,500,000
Income tax payable 794,435,479 877,509,034
Due to related parties 43,474,532 37,065,831
Other current liabilities 335,626,065 2,399,204,654
Curent maturities of long term loan- net of debt issue cost 421,532,915
Total Current Liabilites 17,606,402,071 19,460,770,299
Non-Current Liabilities
Lease liabilities 25,680,968,454 3,260,616,193
Long term debt- net of current maturities and debt issue costs 1,840,000,000
Retirement benefits liability 478,495,654 242,677,396
Total Non-Current Liabilities 27,999,464,108 538,173,177
Total Liabilities 45,605,866,179 4,041,466,766
Capital Stock 2,799,914,086 23,502,237,065
Additional paid in capital 20,830,391,081 2,785,362,877
Remeasurements of retirement benefits- net of tax 273,741,007 20,830,391,081
Treasury stock at cost -71,253,489 -56,702,280
Retained earnings 29,695,589,581 24,285,491,146
Total Equity 53,528,382,266 47,961,856,151
Total liabilities and equity 99,134,248,445 71,464,093,216
 MARITON INC.
Statement of Comprehensive Income
2018 and 2017

2018 2017

Sales 141,216,887,789 124,761,134,087

Sales Discount 298,879,561 270,110,521
140,918,008,228 124,491,023,566
COST OF SALES 117,077,675,356 103,015,148,714
GROSS PROFIT 23,840,332,872 21,475,874,852
OTHER OPERATING INCOME 2,941,091,069 2,692,247,628
26,781,423,941 24,168,122,480
OPERATING EXPENSES 17,840,239,472 15,515,628,653
INCOME FROM OPERATIONS 8,941,184,469 8,652,493,827
OTHER INCOME (EXPENSES)
Interest income 37,409,809 21,658,740
Interest expense -174,596,536 -129,697,000
Share in results of joint ventures and associate 14,127,350 -138,034,506
Others- net 326,980,692 -22,296,975
203,921,315 -268,369,741
INCOME BEFORE INCOME TAX 9,145,105,784 8,384,124,086
INCOME TAX
Current 2,803,076,753 2,695,668,770
Deferred -177,691,296 -151,756,477
2,625,385,457 2,543,912,293
NET INCOME 6,519,720,327 5,840,211,793
 MARITON INC.
STATEMENT OF FINANCIAL POSITION
2016, 2015 and 2014

2016 2015 2014

Assets
Current Asset
Cash & Cash Equivalents 6,415,883,385 6,246,493,017 6,758,425,910
Receivables-net 3,880,855,791 2,683,095,896 1,945,716,570
Merchandise Inventory 16,487,824,308 12,982,832,312 11,166,772,652
Investments in Trading securities 35,109,026 34,432,591 37,448,469
Prepaid expenses and other assets 981,917,114 1,067,412,107 572,881,642
Total Current Assets 27,801,589,624 23,014,265,923 20,481,245,243
Non-Current Asset
Investments 799,650,607 868,090,606 791,502,186
Property and Plant Equipment-net 15,771,622,356 14,033,740,857 13,131,512,950
Intangibles and goodwill 19,560,586,068 19,521,120,953 18,016,918,782
Other non-current assets 1,509,265,101 1,406,322,979 1,245,216,534
Total Non-Current Assets 37,581,124,132 35,829,275,395 33,185,150,452
Total Assets 65,382,713,756 58,843,541,318 53,666,395,695
Liabilities
Current Liabilities
Accounts payable and accrued expenses 9,643,659,389 9,777,695,220 10,464,531,775
Short term lons payable 5,017,500,000 3,137,500,000 1,363,500,000
Income tax payable 843,546,943 759,221,135 659,688,778
Trust receipts payable 5,182,021
Due to related parties 33,776,623 29,769,412 26,654,003
Curent maturities of long term loan- net of debt issue cost 120,000,000 570,000,000 962,920,038
Other non-current liabilities 403,864,343 327,126,019 357,460,702
Total Current Liabilites 16,062,347,298 14,606,493,807 13,832,055,296
Non-Current Liabilities
Non-current accrued rent 2,909,884,084 2,492,888,910 2,068,506,537
Long term debt- net of current maturities and debt issue costs 2,397,096,658 2,395,062,298 2,493,114,552
Deferred tax liablilities- net 371,119,850 496,007,867 641,886,305
Retirement benefits liability 469,257,995 439,871,673 394,338,336
Total Non-Current Liabilities 6,147,358,587 5,823,830,748 5,597,845,730
Total Liabilities 22,209,705,885 20,430,324,555 19,432,901,026
Capital Stock 2,785,362,877 2,785,362,877 2,783,317,412
Additional paid in capital 20,830,391,081 20,830,391,081 20,830,391,081
Remeasurements of retirement benefits- net of tax 65,524,278 -650,846 -41,961,983
Treasury stock at cost -56,702,280 -56,702,280 -20,810,608
Retained earnings 19,551,431,915 14,854,815,931 10,682,558,767
Total Equity 43,173,007,871 38,413,216,763 34,233,494,669
Total liabilities and equity 65,382,713,756 58,843,541,318 53,666,395,695
 MARITON INC.
Statement of Comprehensive Income
2017, 2016 and 2015

2016 2015 2014

Sales 112,818,373,088 97,372,662,646 84,884,298,033

Sales Discount 229,006,848 201,142,782 186,907,241
112,589,366,240 97,171,519,864 84,697,390,792
COST OF SALES 94,051,006,454 8,068,278,314 69,937,457,572
GROSS PROFIT 18,538,359,786 16,488,741,550 14,759,933,220
OTHER OPERATING INCOME 3,266,188,001 2,885,854,330 2,562,761,566
21,804,547,787 19,374,595,880 17,322,694,786
OPERATING EXPENSES 13,707,403,016 12,225,076,570 10,844,793,213
INCOME FROM OPERATIONS 8,097,144,771 7,149,519,310 6,477,901,573
OTHER INCOME (EXPENSES)
Interest income 12,686,675 18,502,923 17,682,206
Interest expense -101,469,303 -70,303,437 -47,261,984
Share in results of joint ventures and associate -68,439,999 -10,911,580 -17,273,851
Others- net -22,557,840 17,732,911 27,146,338
-179,780,467 -44,979,183 -19,707,291
INCOME BEFORE INCOME TAX 7,917,364,304 7,104,540,127 6,458,194,282
INCOME TAX EXPENSE
Current 2,550,889,317 2,266,251,752 2,098,444,680
Deferred -159,755,419 -163,583,211 -160,708,084
2,391,133,898 2,102,668,541 1,937,736,596
NET INCOME 5,526,230,406 5,001,871,586 4,520,457,686
 CHAPTER II
a. LIQUIDITY

1. Current Ratio= Current assets ÷ Current Liabilities

2018 2017 2016 2015 2014

Current Asset 36,438,394,297 31,558,179,988 27,801,589,624 23,014,265,923 20,481,245,243

Current Liabilities 17,606,402,071 19,460,770,299 16,062,347,298 14,606,493,807 13,832,055,296

Current Ratio 2.069610483 1.621630568 1.730854719 1.575618778 1.480708745

2. Quick Ratio= Quick Assets ÷ Current Liabilities

2018 2017 2016 2015 2014

Quick Assets 15,513,659,904 12,681,875,827 10,331,848,202 8,964,021,504 8,741,590,949

Current Liabilities 17,606,402,071 19,460,770,299 16,062,347,298 14,606,493,807 13,832,055,296

Quick Ratio 0.881137432 0.65166361 0.643234019 0.613701113 0.631980625

b. ASSET UTILIZATION

3. For Accounts Receivable

Accounts Receivable Turnover= Net Sales ÷ Average Account Receivable

2018 2017 2016 2015 2014

Net Sales 141,216,887,789 124,761,134,087 112,818,373,088 97,372,662,646 84,884,298,033

Average Accounts Receivable 14,204,837,294 4,225,098,754 3,281,975,844 2,314,406,233 1,581,387,668

Accounts Receivable Turnover 9.941464648 29.52857232 34.37513817 42.07241635 53.67709623

 4. For Inventory

Merchandise Inventory Turnover= Cost of Goods Sold ÷ Average Merchandise Inventory

2018 2017 2016 2015 2014

Cost of Goods Sold 117,077,675,356 103,015,148,714 94,051,006,454 80,682,778,314 69,937,457,572

Average Merchandise Inventory 18,714,232,300 17,092,232,735 14,735,328,310 12,074,802,482 10,304,150,637

Merchandise Inventory Turnover 6.256076845 6.02701533 6.382688222 6.681912887 6.787309312

5. Property, Plant and Equipment

Fixed Asset Turnover= Net Sales ÷ Average Net PPE

2018 2017 2016 2015 2014

Net Sales 141,216,887,789 124,761,134,087 112,818,373,088 97,372,662,646 84,884,298,033

Average Net PPE 18,592,723,050 16,733,997,338 14,902,681,607 13,582,626,904 12,822,369,773

Fixed Asset Turnover 7.595277325 7.455548819 7.57034043 7.168912416 6.620016388

6. Total Asset Turnover= Net Sales ÷ Average total assets

2018 2017 2016 2015 2014

Net Sales 141,216,887,789 124,761,134,087 112,818,373,088 97,372,662,646 84,884,298,033

Average Total Assets 85,299,170,831 68,423,403,486 62,113,127,537 56,254,968,507 51,646,019,879

Total Asset Turnover 1.655548189 1.823369311 1.816337022 1.730916668 1.643578697

 C. Debt- Utilization Ratios

1. Debt to Equity Ratio = Total Liabilities ÷ Total Stockholder’s Equity

2018 2017 2016 2015 2014

Total Liabilities 45,605,866,179 4,041,466,766 22,209,705,885 20,430,324,555 19,432,901,026

Total Stockholder's Equity 53,528,382,266 47,961,856,151 43,173,007,871 38,413,216,763 34,233,494,669

Debt to Equity Ratio 0.851994106 0.084264186 0.51443499 0.531856644 0.56765753

2. Debt Ratio = Total Liabilities ÷ Total Assets

2018 2017 2016 2015 2014

Total Liabilities 45,605,866,179 23,502,237,065 22,209,705,885 20,430,324,555 19,432,901,026

Total Assets 99,134,248,445 71,464,093,216 65,382,713,756 58,843,541,318 53,666,395,695

Debt Ratio 0.460041478 0.328867771 0.339687734 0.3471974 0.362105574

3. Number of times Interest Earned= Net income before interest and income tax or operating
income ÷ Annual interest Expense

2018 2017 2016 2015 2014

Operating Income 8,941,184,469 8,652,493,827 8,097,144,771 7,149,519,310 6,477,901,573

Annual Interest 174,596,536 129,697,000 101,469,303 70,303,437 47,261,984

Number of times earned 51.21054904 66.71313775 79.79895921 101.6951605 137.0636826

 c. PROFITABILITY RATIOS

1. Gross Profit Ratio = Gross Profit ÷ Net Sales

2018 2017 2016 2015 2014

Gross Profit 23,840,332,872 21,475,874,852 18,538,359,786 16,488,741,550 14,759,933,220

Net Sales 141,216,887,789 124,761,134,087 112,818,373,088 97,372,662,646 84,884,298,033

Gross Profit Ratio 0.168820693 0.172135938 0.164320396 0.169336455 0.173882963

2. Net Profit Ratio or Profit Margin = Net Profit ÷ Net Sales

2018 2017 2016 2015 2014

Net Profit 6,519,720,327 5,840,211,793 5,526,230,406 5,001,871,586 4,520,457,686

Net Sales 141,216,887,789 124,761,134,087 112,818,373,088 97,372,662,646 84,884,298,033

Profit Margin 0.046168135 0.046811147 0.048983426 0.051368335 0.053254345

3. Return on Assets= Net Income ÷ Average total Assets

2018 2017 2016 2015 2014

Net Income 6,519,720,327 5,840,211,793 5,526,230,406 5,001,871,586 4,520,457,686

Average total assets 85,299,170,831 68,423,403,486 62,113,127,537 56,254,968,507 51,646,019,879

Return on Assets 0.076433572 0.085354009 0.08897041 0.088914308 0.087527707

 4. Return on Equity= Net income ÷ Average Stockholder’s Equity

2018 2017 2016 2015 2014

Net Income 6,519,720,327 5,840,211,793 5,526,230,406 5,001,871,586 4,520,457,686

Average Stockholder's equity 50,745,119,209 45,567,432,011 40,793,112,317 36,323,355,716 64,819,794,670

Return on Equity 0.128479752 0.128166358 0.135469693 0.137704006 0.069738846

 CHAPTER III: ANALYSIS AND INTERPRETATION

A. Ratios Used to Gauge Asset Management Efficiency and Liquidity

ASSET
LIQUIDITY UTILIZIZATI
ON
TOTAL ASSET
------
TURNOVER
CURRENT A/R
RATIO TURNOVER
INVENTORY
----- TURNOVER
QUICK PPE
RATIO TURNOVER

2018 2017 2016 2015 2014

Current Asset 36,438,394,297 31,558,179,988 27,801,589,624 23,014,265,923 20,481,245,243

Current Liabilities 17,606,402,071 19,460,770,299 16,062,347,298 14,606,493,807 13,832,055,296

Current Ratio 2.069610483 1.621630568 1.730854719 1.575618778 1.480708745

2018 2017 2016 2015 2014

Quick Assets 15,513,659,904 12,681,875,827 10,331,848,202 8,964,021,504 8,741,590,949

Current Liabilities 17,606,402,071 19,460,770,299 16,062,347,298 14,606,493,807 13,832,055,296

Quick Ratio 0.881137432 0.65166361 0.643234019 0.613701113 0.631980625

Basing from the illustration above, the current ratio of 2014, can be interpret to mean hat
in every 1.0 of current liability the company has 1.48 current assets to pay it, same interpretation goes
for the other years. This could only mean that the company’s current assets are just enough to pay for
its current liabilities and can be considered as satisfactory or favorable. Fortunately, for the past 5 years
the ratio increased from 1.48:1 to 2.07:1 which is a good thing for the higher the current ratio is the
liquid the company is. As for the quick ratio, it is considered as stricter test of liquidity for it only include
certain current assets such as cash and cash equivalent, Trading securities and receivables. Other current
assets such as inventory are ignored because of its nature being uncertain as to their salability. As for
2018, it can be interpreted as in every 1.0 of current liability the company has 0.88 of current assets to
pay it. As you can see in the illustration that the movement of quick ratio is increasing but slow, this
could mean that the company is not as liquid as we pictured it.

The following illustrations show how the asset utilization of Puregold Inc. is.

2018 2017 2016 2015 2014

Net Sales 141,216,887,789 124,761,134,087 112,818,373,088 97,372,662,646 84,884,298,033

Average Accounts Receivable 14,204,837,294 4,225,098,754 3,281,975,844 2,314,406,233 1,581,387,668

Accounts Receivable Turnover 9.941464648 29.52857232 34.37513817 42.07241635 53.67709623

This ratio is used to measure the liquidity of the company’s receivable. The result of the
year 2018, 9.94 times could be interpreted that the firm can be able to collect all their receivables 9.94
times in a year. The company can be able to collect the average receivables every 37 days, which I got
from the formula (365 days ÷ receivable turnover 9.94). This has great bearing on management, since a
high receivable turnover, speeds up its conversion to cash and thus, management can use it further to
enhance company operations and ultimately, increase company profits. In this case, it looks like the
company’s turnover performance is doing great for during the past years the conversion of cash from
2014 to 2018 is constantly falling which is not a good thing for a company’s liquidity.

2018 2017 2016 2015 2014

Cost of Goods Sold 117,077,675,356 103,015,148,714 94,051,006,454 80,682,778,314 69,937,457,572

Average Merchandise Inventory 18,714,232,300 17,092,232,735 14,735,328,310 12,074,802,482 10,304,150,637

Merchandise Inventory Turnover 6.256076845 6.02701533 6.382688222 6.681912887 6.787309312

The inventory turnover rate pertains to the number of times the average inventory is sold.
In this case, it can be interpreted that in 2018 the company can be abe to disposed its inventory 6.26
times a year or every 58 days (365 days ÷ inventory turnover 6.26 times). The inventory turnover
indicates the company’s efficiency in managing and disposing inventory. Remember that the higher the
turn-over rate is the better.
 2018 2017 2016 2015 2014

Net Sales 141,216,887,789 124,761,134,087 112,818,373,088 97,372,662,646 84,884,298,033

Average Net PPE 18,592,723,050 16,733,997,338 14,902,681,607 13,582,626,904 12,822,369,773

Fixed Asset Turnover 7.595277325 7.455548819 7.57034043 7.168912416 6.620016388

The fixed asset turnover indicates the firm’s efficiency in using their PPE in generating
revenue. The ccomputed ratios can be interpreted as in 2018, that in every 1.0 PPE acquired and used
by the company, 7.60 sales revenue is generated. We could infer that the Riel is doing just fine but could
do more.

2018 2017 2016 2015 2014

Net Sales 141,216,887,789 124,761,134,087 112,818,373,088 97,372,662,646 84,884,298,033

Average Total Assets 85,299,170,831 68,423,403,486 62,113,127,537 56,254,968,507 51,646,019,879

Total Asset Turnover 1.655548189 1.823369311 1.816337022 1.730916668 1.643578697

The ratio presents the company’s efficiency in utilizing their total assets to generate
revenue. Basing from the illustration shown, the company has low or slow sales generation or possibly
has too high investment in assets. Looking at the company’s 2018 turnover we can interpret that in every
1.0 asset of the company only 1.66 of sales revenue is generated which is not good for the companys’s
future.

B. Ratios used to gauze a firm’s Utilization of debt and company stability

DEBT TO
EQUITY
RATIO

NO.OF DEBT EQUITY

TIMES
INTEREST
UTILIZ TO DEBT
EARNED ATION RATIO

DEBT
RATIO
 2018 2017 2016 2015 2014

Total Liabilities 45,605,866,179 4,041,466,766 22,209,705,885 20,430,324,555 19,432,901,026

Total Stockholder's Equity 53,528,382,266 47,961,856,151 43,173,007,871 38,413,216,763 34,233,494,669

Debt to Equity Ratio 0.851994106 0.084264186 0.51443499 0.531856644 0.56765753

The debt equity ratio gauges the amount of risks involving the firm’s capital structure in
so far as the relationship of funds provided by the creditors (liabilities) and owners are concerned. The
higher the ratio, the riskier the capital structure. In the illustration above the debt to equity ratio presents
the risk in the company’s capital structure.

2018 2017 2016 2015 2014

Total Liabilities 45,605,866,179 23,502,237,065 22,209,705,885 20,430,324,555 19,432,901,026

Total Assets 99,134,248,445 71,464,093,216 65,382,713,756 58,843,541,318 53,666,395,695

Debt Ratio 0.460041478 0.328867771 0.339687734 0.3471974 0.362105574

The illustration can be interpreted to mean that for every 1.0 asset of the company 0.46
was borrowed or was provided by the creditors in 2018 same interpretation goes to other years. It
basically presents the proportion of borrowings to total assets. Thus, the higher the debt proportion, the
higher is the risk. As for the analysis of the illustration, the company has a low risk on the part of the
company. Although the ration increased in 2018, the the company still has low risk.

2018 2017 2016 2015 2014

Operating Income 8,941,184,469 8,652,493,827 8,097,144,771 7,149,519,310 6,477,901,573

Annual Interest 174,596,536 129,697,000 101,469,303 70,303,437 47,261,984

Number of times earned 51.21054904 66.71313775 79.79895921 101.6951605 137.0636826

This ratio indicates the ability of the company to pay fixed interest charges. It gauges the
company’s ability to protect long-term creditors. In the illustration, the company’s times interest earned
of 51.21 times in 2018 indicates that the firm is very much capable of paying its fixed interest charges
from its operating income, same interpretation goes to other years.
 C. Ratios used to gauge a firm’s Profitability and Return to owners

Profitability and Return to owners

Gross Profit Ratio

Net Profit Ratio

Return on Assets

Return on Equity

2018 2017 2016 2015 2014

Gross Profit 23,840,332,872 21,475,874,852 18,538,359,786 16,488,741,550 14,759,933,220

Net Sales 141,216,887,789 124,761,134,087 112,818,373,088 97,372,662,646 84,884,298,033

Gross Profit Ratio 0.168820693 0.172135938 0.164320396 0.169336455 0.173882963

This gross profit margin ratio is an indicator of a company’s financial health. It tells how
much gross profit every peso of revenue a company is earning. In the illustration, it can be seen that the
gross profit ratio is low which means their cost ratio is high therefore, the management must come up
with a tough cost control measures to decrease cost of ales thereby increase the gross margin profit in
the succeeding years.

2018 2017 2016 2015 2014

Net Profit 6,519,720,327 5,840,211,793 5,526,230,406 5,001,871,586 4,520,457,686

Net Sales 141,216,887,789 124,761,134,087 112,818,373,088 97,372,662,646 84,884,298,033

Profit Margin 0.046168135 0.046811147 0.048983426 0.051368335 0.053254345

 The net profit ratio, also known as profit margin, indicates how much net income a
company makes with the total sales achieved. A higher net profit margin means that a company is more
efficient at converting sales into actual profit. In the illustration, it can be interpreted that that the
company has a positive ratio yet still low. However, management should still look closely to come up
with measures that would increase revenue and decrease costs in order to ensure and achieve profit
maximization.

2018 2017 2016 2015 2014

Net Income 6,519,720,327 5,840,211,793 5,526,230,406 5,001,871,586 4,520,457,686

Average total assets 85,299,170,831 68,423,403,486 62,113,127,537 56,254,968,507 51,646,019,879

Return on Assets 0.076433572 0.085354009 0.08897041 0.088914308 0.087527707

This can be interpreted as every 1.0 asset used by the company to generate revenue, it
yielded 0.086 in 2014, 0.089 in 2015, 0.089 in 2016, 0.085 in 2017 and 0.076 in net income of 2018. The
ratios decreased.

2018 2017 2016 2015 2014

Net Income 6,519,720,327 5,840,211,793 5,526,230,406 5,001,871,586 4,520,457,686

Average Stockholder's equity 50,745,119,209 45,567,432,011 40,793,112,317 36,323,355,716 64,819,794,670

Return on Equity 0.128479752 0.128166358 0.135469693 0.137704006 0.069738846

This could be interpreted to mean that every 1.0 of invested capital by the owners and
used to generate revenue, it yielded 0.067 of net income in 2014, 0.138 of net income in 2015, 0.135 of
net income in 2016, 0.128 of net income in 2017 and 0.128 of net income in 2018. This ratio just like
ROA, is used to gauge the company’s efficiency in managing its total assets invested and in coming up
with return to shareholders.
 CHAPTER IV
COMPUTATIONS:
A. LIQUIDITY RATIOS

CURRENT RATIO = QUICK RATIO=

Current assets/Current Quick Assets/Current
Liabilities Liabilities

2018 36,438,394,297/ 15,513,659,904/

17,606,402,071 17,606,402,071

=2.069610483 or 2.07:1 = 0.881137432 or 0.88:1

2017 31,558,179,988/ 12,681,875,827/

19,460,770,299 19,460,770,299

=1.621630568 or 1.62:1 = 0.65166361 or 0.65:1

2016 27,801,589,624/ 10,331,848,202/

16,062,347,298 16,062,347,298

=1.730854719 or 1.73:1 = 0.643234019

2015 23,014,265,923/ 8,964,021,504/

14,606,493,807 14,606,493,807

=1.575618778 or 1.58:1 = 0.613701113

2014 20,481,245,243/ 8,741,590,949/13,685,370,864

13,832,055,296
=
=1.480708745 or 1.48:1 0.638754407
 B. ASSET UTILIZATION
RECEIVABLE TURNOVER INVENTORY PPE TURNOVER= TOTAL ASSET
RATIO= TURNOVER= Net sales/ Average TURNOVER=
Net Sales ÷ Average Cost of Goods sold/ net PPE Net Sales ÷
Account Receivable ( Average Average Net PPE
Ending Merchandise
Receivable+beginning inventory
Receivable)/2
2018 =141,216,887,789 ÷ =117,077,675,356 ÷ 141,216,887,789/ 141,216,887,789/
(4,789,798,078 (19,731,823,439 + (19,489,073,780 + (99,134,248,445+
+ 17,696,641,161)/2 17,696,372,319)/2 71,464,093,216)/2
4,569,341,716)/2
17,696,641,161/ 141,216,887,789/ 141,216,887,789/
=141,216,887,789/ 18,714,232,300 18,592,723,050 85,299,170,831
14,204,837,294
=6.256076845 =7.595277325 =1.655548189
=9.941464648

2017 =124,761,134,087/ =103,015,148,714 ÷ 124,761,134,087/ 124,761,134,087/

(4,569,341,716 (17,696,641,161 + (17,696,372,319 + (71,464,093,216+
+ 16,487,824,308)/2 15,771,622,356)/2 65,382,713,756)/2
3,880,855,791)/2
=103,015,148,714/ 124,761,134,087/ 124,761,134,087/
=124,761,134,087/ 17,092,232,735 16,733,997,338 68,423,403,486
4,225,098,754
=6.02701533 =7.455548819 1.823369311
=29.52857232

2016 =112,818,373,088 ÷ =94,051,006,454/ 112,818,373,088/ 112,818,373,088/

(3,880,855,791 + (16,487,824,308 + (15,771,622,356 + (65,382,713,756+
2,683,095,896)/2 12,982,832,312)/2 14,033,740,857)/2 58,843,541,318)/2

=112,818,373,088/ =94,051,006,454/ 112,818,373,088/ 112,818,373,088/

3,281,975,844 14,735,328,310 14,902,681,607 62,113,127,537

=34.37513817 =6.382688222 =7.57034043 1.816337022

2015 =97,372,662,646÷ 80,682,778,314/ 97,372,662,646/ 97,372,662,646/

(2,683,095,896 + (12,982,832,312 + (14,033,740,857 + (58,843,541,318+
1,945,716,570)/2 11,166,772,652)/2 13,131,512,950)/2 53,666,395,695)/2

=97,372,662,646/ 80,682,778,314/ 97,372,662,646/ 97,372,662,646/

2,314,406,233 12,074,802,482 13,582,626,904 56,254,968,507

==42.07241635 =6.681912887 =7.168912416 1.730916668

2014 =84,884,298,033 ÷ 69,937,457,572/ 84,884,298,033/ 84,884,298,033/
(1,945,716,570+ (12,074,802,482+ (13,131,512,950+ (53,666,395,695+
1,217,058,766)/2 9,441,528,622)/2 12513226596)/2 49,625,644,062)/2

=84,884,298,033/ 69,937,457,572/ 84,884,298,033/ 84,884,298,033/

1,581,387,668 10,304,150,637 12,822,369,773 51,646,019,879

=53.67709623 =6.787309312 =6.620016388 =1.643578697

C. DEBT-UTILIZATION RATIO

Debt to Equity Ratio = Debt Ratio = Total Liabilities ÷ Number of times Interest
Total Liabilities ÷ Total Total Assets Earned= Net income before
Stockholder’s Equity interest and income tax or
operating income ÷ Annual
interest Expense

2018 45,605,866,179/ 45,605,866,179/ 8,941,184,469/

53,528,382,266 99,134,248,445 174,596,536

0.851994106 0.460041478 51.21054904

2017 23,502,237,065/ 23,502,237,065/ 8,652,493,827/

47,961,856,151 71,464,093,216 129,697,000

0.490019339 0.328867771 66.71313775

2016 22,209,705,885/ 22,209,705,885/ 8,097,144,771/

43,173,007,871 65,382,713,756 101,469,303

0.51443499 0.339687734 79.79895921

2015 20,430,324,555/ 20,430,324,555/ 7,149,519,310/

38,413,216,763 58,843,541,318 70,303,437

0.531856644 0.3471974 101.6951605

 2014 19,432,901,026/ 19,432,901,026/ 6,477,901,573/
34,233,494,669 53,666,395,695 47,261,984

0.56765753 0.362105574 137.0636826

D. PROFITABILIITY RATIO

Gross Profit Ratio = Net Profit Ratio or Return on Assets= Return on Equity=
Gross Profit ÷ Net Profit Margin = Net Net Income ÷ Net income ÷
Sales Profit ÷ Net Sales Average total Assets Average
Stockholder’s
Equity

2018 23,840,332,872/ 6,519,720,327/ 6,519,720,327/ 6,519,720,327/

141,216,887,789 141,216,887,789 85,299,170,831 (53,528,382,266+
47,961,856,151)/2
0.168820693 0.046168135 0.076433572
6,519,720,327/
50,745,119,209

0.128479752
2017 21,475,874,852/ 5,840,211,793/ 5,840,211,793/ 5,840,211,793/
124,761,134,087 124,761,134,087 68,423,403,486 (47,961,856,151+
43,173,007,871)/2

0.172135938 0.046811147 0.085354009 5,840,211,793/

45,567,432,011

0.128166358
2016 18,538,359,786/ 5,526,230,406/ 5,526,230,406/ 5,526,230,406/
112,818,373,088 112,818,373,088 62,113,127,537 (43,173,007,871+
38,413,216,763)/2

0.164320396 0.048983426 0.08897041 5,526,230,406/

40,793,112,317

0.135469693
2015 16,488,741,550/ 5,001,871,586/ 5,001,871,586/ 5,001,871,586/
97,372,662,646 97,372,662,646 56,254,968,507 (38,413,216,763+
34,233,494,669)/2

0.169336455 0.051368335 0.088914308 5,001,871,586/

36,323,355,716

0.069738846
2014 14,759,933,220/ 4,520,457,686/ 4,520,457,686/ 4,520,457,686/
84,884,298,033 84,884,298,033 51,646,019,879 (34,233,494,669+
30,586,300,001)/2

0.173882963 0.053254345 0.087527707 4,520,457,686/

64,819,794,670

0.069738846

CONCLUSION AND IMPLICATION:

UNIVERSITY OF CAGAYAN VALLEY

TUGUEGARAO CITY

SCHOOL OF BUSINESS ADMIISTRATION

FINANCIAL MANAGEMENT

FINAL REQUIREMENT
AND
 EXAMINATION PRESENTATION

INSTRUCTOR: MA’AM JENNIFER SUYU

STUDENT: MICHAEL JOHN G. NOORA