UNIVERSAL

ROBINA
CORPORATION
PREPARED BY:
GARCIA, LERIZ
PEALOSA, RENA DANIEL
PESCASIO, LEONARD
Financial Analysis

As indicated in the financial statements of

Universal Robina Corporation, the revenue of P
11,655,292 from 2014 increased to P 12,504,921 for
the year 2015. As the revenue increases the profit
before tax soars as well from P 14,227,515 to P
15,756,469. As the profit increase the income tax
expense increases at the same time.

The firm gained a total of P 3,687,854for the

year 2014 as shown in the Statement of
Comprehensive income which indicates that the
PROFITABILITY RATIO
2015
RETURN ON SALES = NET INCOME /
NET SALES
= 12,504,921 / 17,373,420
= 0.72
RETURN ON ASSETS = NET INCOME /
AVERAGE TOTAL ASSETS
= 12,504,921 /
{(110,747,081 + 77,921,206)
/ 2}
= 0.13
GROSS PROFIT RATIO = GROSS
PROFIT / NET SALES
= 35,249,594 / 17,373,420
= 2.03
2014
RETURN ON SALES = NET
INCOME / NET SALES
= 11,655,292,014 /
14,119,171,348
= 0.83
RETURN ON ASSETS = NET
INCOME / AVERAGE TOTAL
ASSETS
= 11,655,292,014 /
{(110,747,081 +
77,921,206) / 2}
= 0.7
GROSS PROFIT RATIO = GROSS
PROFIT / NET SALES
= 28,370,918,595/
14,119,171,348
= 2.01
LIQUIDITY RATIO
2014

2015
CURRENT RATIO = CURRENT
CURRENT RATIO = CURRENT ASSETS / CURRENT
ASSETS / CURRENT LIABILITIES LIABILITIES
= 47,581,266 / =
20,711,910 40,256,011,255 /
= 2.3 21,168,061,081
= 1.90
QUICK RATIO = {CURRENT
ASSETS-(INVENTORY)} / CURRENT QUICK RATIO = {CURRENT
LIABILITIES ASSETS-(INVENTORY)} /
= {47,581,266 CURRENT LIABILITIES
(16,034,613)} / 20,711,910 = {40,256,011,255
= 1.5 (15,129,022,837)} /
21,168,061,081
= 1.19
SOLVENCY RATIO
2015
2014
DEBT RATIO =
TOTAL LIABILITIES / DEBT RATIO = TOTAL
LIABILITIES / TOTAL
TOTAL ASSETS ASSETS
= =
45,387,453 / 21,894,210,690 /
110,747,081 77,921,206,990
= 0.28
= 0.41

 The future value of the investments above are computed as

follows:
Present Values = P 34,407,755,976 2014
P 38,831,973,783 2015
Interest rate (r) = 2.75%
Time (n) = 5 years

2014

Future value = Present value x

= 34,407,755,976 x
= P 49,985,275,701.69

Return on investment = [(Benefits-Cost)/Cost] 100
= [(49,985,275,701.69-34,407,755,976)/34,407,755,976] 10
= 45.273%
2015

Future value = P38, 831,973,783 (1+2.75%) 5

= P 56,412,506,855.7674

Return on investment = [(56,412,506,855.7674 - 38,831,973,783)/

38,831,973,783 ] 100
= 45.273%

Based on the computation of return on investment in two consecutive

years, the time deposit investment in China Bank was expected to have
an approximately 45.273% return on investment, making it substantially
less profitable than other investments.
 The future value of the investments above are computed as
follows:
Present Values = P 34,407,755,976 2014
P 38,831,973,783 2015
Interest rate (r) = 20%
Time (n) = 5 years

2014

Future value = Present value x

= 34,407,755,976 x
= P 85,617,507,350

Return on investment = [(Benefits-Cost)/Cost] 100
= [(85,617,507,350-34,407,755,976)/34,407,755,976] 100
= 148.832%
2015

Future value = P38, 831,973,783 (1+20%) 5

= P 96,626,377,003

Return on investment = [(96,626,377,003 - 38,831,973,783)/

38,831,973,783] 100
= 148.832%

Based on the computation of return on investment in two consecutive

years, the Property, Plant and Equipment investment is expected to have
an approximately 149% return on investment, making it way more
profitable than time deposit investment in banks.
Investment Decision

With these factors given, Universal Robina

Corporation shows remarkable performance as a
company. They decided to invest on a
continually and long term investment in
equipment, land and building and other non-
current assets which would give them a good
return in developing the company for the current
year as well as the months and years to come.
This company is very profitable and stable so