Formula Computations Ratio Interpretations

1. Current Ratio -
For every P1 liability, the
calculated by dividing
Current Assets / company only has P1.61
Current Assets by P125,576,040,000 / P1.61
Current Liabilities worth of current assets to
Current Liabilities. P78,207,732,000
pay the said liability.
2. Quick Ratio – (P44,371,534,000 +
(Cash +
calculated by dividing P34,277,281,000 + For every P1 liability, the
Receivables +
quick assets (Cash + P731,076,000 + company only has P1.02
Marketable P1.02
Receivables + P641,300,000) / worth of quick assets to
Securities) /
Marketable Securities) P78,207,732,000 pay the said liability.
Current Liabilities
by Current Liabilities.
3. Cash Ratio –
calculated by dividing (Cash + (P44,371,534,000 + For every P1 liability, the
(Cash + Marketable Marketable P731,076,000 + company only has P0.58
P0.58
Securities) by Current Securities) / P641,300,000) / worth of cash to pay the
Liabilities. Current Liabilities P78,207,732,000 said liability.
1. Inventory Turnover-is
used to show the
length of time a firm Within 360 days, the firm
Cost of Goods Sold P17,752,643,000 /
can convert its 1.95 x converts its inventory to
/ Inventory P9,103,636,000
inventory to cash cash 1.95 times

2. Average Age of
Inventory – Average
Within 184.62 days, the
number of days’ sales 360/Inventory 184.62
360 days/1.95 x firm can convert its
in inventory Turnover days
inventories into cash

3. Total Asset Turnover

–is used to measure the
firm’s efficiency in Each peso of the total
P90,921,850,000 /
using all its assets to Sales / Total Assets P0.16 asset generates P 0.16 of
P538,417,598,000
generate sales. sales
4. Fixed Asset Turnover
– is used measure the
firm’s efficiency in Each peso of the fixed
using its fixed or Sales / Net Fixed P90,921,850,000 /
P2.41 asset generates P 2.41 of
earning assets to Assets P37,641,463,000
sales
generate sales

5. Average Collection
It takes 135.72 days for
Period- is used to
the firm to collect its
represent the length of Accounts
receivables. This ratio can
time that a firm must Receivable / P34,277,281,000 / 135.72
be of better use if it is
wait after making a Average Sales per (P90,921,850,000 /360) days
compared with the credit
credit sale before day
period given to its
receiving cash.
customers
1. Debt Ratio – The company has
measures the financed 49.45% of its
proportion of total Total Debt / Total P275,543,684,000 / assets with debts, the
assets financed by P538,417,598,000 51.18%
Assets remaining 51.18% with
creditor’s money. funds provided by the
stockholders.
2. Debt-to-Equity Ratio
– indicates the
relationship between P275,543,684,000 / It means that the
Total Debt / Total
the long-term funds P262,873,914,000 company’s long-term
Stockholder’s 104.82%
provided by creditors debt is 104.82% as large
Equity
and those provided by as stockholder’s Equity
firm’s owners.

3. Interest Coverage – For every P1 interest

measures the firm’s Earnings Before P41,422,283,000 / charge, the company
ability to male Interests and Taxes P5,474,422,000 P7.57 has P7.57 from its
contractual interest (EBIT) / Interest
earnings to cover the
payments. Charges
annual interest costs.
4. Asset-to-Equity Ratio
- indicates the
It means that for every
relationship of the Total Assets / Total P538,417,598,000 /
peso of equity, the
total assets of the firm Stockholder’s P262,873,914,000 P2.04
company has P2.04 of
to the part owned by Equity
assets.
shareholders (aka,
owner's equity).

1. Gross Profit Margin – It indicates that the

measures the company made a gross
(P90,921,850,000 –
percentage of each (Sales – Cost of income of P0.80 from
P17,752,643,000) / P0.80
peso sales remaining Sales) / Sales every peso of total sales,
P90,921,850,000
after the firm has paid after paying off its Cost of
for its goods. Goods Sold.
2. Operating Profit
Margin – measures the
percentage of each
peso sales remaining
after all costs and It indicates that the
expenses other than company made P0.45 of
Operating Profit / P40,628,792,000 /
interest, taxes, and P0.45 operating profit from
Sales P90,921,850,000
preferred stock every peso of total sales
dividends are achieved.
deducted.

3. Net Profit Margin -

measures the
proportion of sales that
is available to the It indicates that the
Earnings Available
firm’s owners after company made P0.30 of
for Common P27,573,866,000 /
deducting all costs P0.30 net profit from every
Stockholders / P90,921,850,000
and expenses peso of total sales
Sales
including interest and achieved.
taxes.
4. Earnings Per Share –
represents the number Earnings Available
of pesos earned during for Common It indicates that each
the period on behalf of Stockholders / P27,573,866,000 / number of share
P0.96
each outstanding Number of Shares 28,833,670,000 outstanding earned
share of common of Common Stock P0.96.
stock. Outstanding

5. Return on Total
Assets – measures the
Earnings Available It means that the
management’s
for Common P27,573,866,000/ company can generate
effectiveness in 5%
Stockholders / P538,417,598,000 a 5% return on total
generating profits with
Total Assets assets
its available assets.

6. Return on Equity -
measure of profitability
Earnings Available
that calculates how
for Common It means that the
many pesos of profit a P27,573,866,000/
Stockholders / 11% company can generate
company generates P258,957,221,000
Common stock an 11% return on equity.
with each peso of
Equity
shareholders' equity.
1. Price/Earnings ratio - Market price per It shows that the market
the ratio for valuing a share of common is willing to pay P39.06 for
company that stock / Earnings a stock based on the
measures its current per share P37.50 / 0.96 P39.06 current earnings.
share price relative to
its per-share earnings.

2. Market/Book (M/B) Market Price per

This means that investors
ratio – Provides an share of Common
are currently paying
assessment of how Stock / Book value
P37.50 / P8.98 P4.18 P4.18 for each peso of
investors view the per share of
book value of the firm’s
firm’s performance. Common Stock
stock.
 Formula Computations Ratio Interpretations
1. Current Ratio -
For every P1 liability, the
calculated by dividing
Current Assets / company only has P2.10
Current Assets by P103,950,556,000 / P2.10
Current Liabilities worth of current assets to
Current Liabilities. P49,421,276,000
pay the said liability.
2. Quick Ratio –
(Cash +
calculated by dividing For every P1 liability, the
Receivables +
quick assets (Cash + (P25,200,982,000 + company only has P1.21
Marketable P1.21
Receivables + P32,833,330,000 + worth of quick assets to
Securities) /
Marketable Securities) P918,702,000 + P664,606) / pay the said liability.
Current Liabilities
by Current Liabilities. P49,421,276,000
3. Cash Ratio –
calculated by dividing (Cash + (P25,200,982,000 + For every P1 liability, the
(Cash + Marketable Marketable P918,702,000 + company only has P0.54
P0.54
Securities) by Current Securities) / P664,606,000) / worth of cash to pay the
Liabilities. Current Liabilities P49,421,276,000 said liability.
1. Inventory Turnover-
is used to show the
length of time a firm Within 360 days, the firm
Cost of Goods Sold P15,684,179,000/
can convert its 1.90 x converts its inventory to
/ Inventory P8,265,964,000
inventory to cash cash 1.90 times

2. Average Age of
Inventory – Average
Within 189.47 days, the
number of days’ sales 360/Inventory 189.47
360 days/1.90 x firm can convert its
in inventory Turnover days
inventories into cash

3. Total Asset Turnover

–is used to measure
the firm’s efficiency in Each peso of the total
P79,816,231,000 /
using all its assets to Sales / Total Assets P0.17 asset generates P 0.17 of
P465,560,132,000
generate sales. sales
4. Fixed Asset Turnover
– is used measure the
firm’s efficiency in Each peso of the fixed
using its fixed or Sales / Net Fixed P79,816,231,000 / P21,
P3.78 asset generates P 3.78 of
earning assets to Assets 092,242,000
sales
generate sales

5. Average Collection
It takes 148.09 days for
Period- is used to
the firm to collect its
represent the length of Accounts
receivables. This ratio
time that a firm must Receivable / P32,833,330,000 / 148.09
can be of better use if it
wait after making a Average Sales per (P79,816,231,000 / 360) days
is compared with the
credit sale before day
credit period given to its
receiving cash.
customers
1. Debt Ratio – The company has
measures the P230,196,588,000 / financed 49.45% of its
proportion of total Total Debt / Total P465,560,132,000 assets with debts, the
assets financed by 49.45%
Assets remaining 50.55% with
creditor’s money. funds provided by the
stockholders.
2. Debt-to-Equity Ratio
– indicates the
relationship between P230,196,588,000 / It means that the
Total Debt / Total
the long-term funds P235,363,544,000 company’s long-term
Stockholder’s 97.80%
provided by creditors debt is 97.80% as large as
Equity
and those provided by stockholder’s Equity
firm’s owners.

3. Interest Coverage – For every P1 interest

measures the firm’s Earnings Before P35,398,291,000/ charge, the company
ability to make Interests and Taxes P4,409,614,000 8.03 has P8.03 from its
contractual interest (EBIT) / Interest
earnings to cover the
payments. Charges
annual interest costs.
4. Asset-to-Equity Ratio
- indicates the
It means that for every
relationship of the Total Assets / Total P465,560,132,000
peso of equity, the
total assets of the firm Stockholder’s /P235,363,544,000 P1.98
company has P1.98 of
to the part owned by Equity
assets.
shareholders (aka,
owner's equity).

1. Gross Profit Margin – It indicates that the

measures the company made a gross
(P79,816,231,000 –
percentage of each (Sales – Cost of income of P0.80 from
P15,684,179,000) / P0.80
peso sales remaining Sales) / Sales every peso of total sales,
P79,816,231,000
after the firm has paid after paying off its Cost of
for its goods. Goods Sold.
2. Operating Profit
Margin – measures the
percentage of each
peso sales remaining
after all costs and It indicates that the
expenses other than company made P0.44 of
Operating Profit / P35,265,056,000 /
interest, taxes, and P0.44 operating profit from
Sales P79,816,231,000
preferred stock every peso of total sales
dividends are achieved.
deducted.

3. Net Profit Margin -

measures the
proportion of sales that
is available to the firm’s Earnings Available It indicates that the
owners after deducting company made P0.30 of
for Common P23,805,713,000 /
all costs and expenses P0.30 net profit from every
Stockholders / P79,816,231,000
including interest and peso of total sales
Sales
taxes. achieved.
4. Earnings Per Share –
represents the number Earnings Available
of pesos earned during for Common It indicates that each
the period on behalf of Stockholders / P23,805,713,000 / number of share
P0.83
each outstanding Number of Shares 28,833,608,000 outstanding earned
share of common of Common Stock P0.83.
stock. Outstanding

5. Return on Total
Assets – measures the Earnings Available It means that the
management’s for Common P23,805,713,000 / company can generate
effectiveness in 5%
Stockholders / Total P465,560,132,000 a 5% return on total
generating profits with Assets assets
its available assets.

6. Return on Equity -
measure of profitability
that calculates how Earnings Available
many pesos of profit a for Common It means that the
P23,805,713,000 /
company generates Stockholders / 10% company can generate
P231,481,032,000
with each peso of Common stock an 10% return on equity.
shareholders' equity. Equity
1. Price/Earnings ratio – Market price per It shows that the market
the ratio for valuing a share of common is willing to pay P34.16
company that stock / Earnings for a stock based on the
P28.35 / 0.83 P34.16
measures its current per share current earnings.
share price relative to
its per-share earnings.
2. Market/Book (M/B) Market Price per This means that investors
ratio – Provides an share of Common are currently paying
assessment of how Stock / Book value P28.35 / P8.03 P3.53 P3.53 for each peso of
investors view the firm’s per share of book value of the firm’s
performance. Common Stock stock.
ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
 Years Ended December 31
2017 2016
REVENUE
Rent P51,406,294 56.54% P45,693,269 57.25%
Sales:
Real estate 29,434,050 32.37% 24,999,811 31.32%
Cinema and event ticket 4,767,364 5.24% 4,666,686 5.85%
Others 5,314,142 5.84% 4,456,465 5.58%
90,921,850 100% 79,816,231 100%

COSTS AND EXPENSES 50,293,058 55.31% 44,551,175 55.82%

INCOME FROM OPERATIONS 40,628,792 44.69% 35,265,056 44.18%

OTHER INCOME (CHARGES)

Interest expense (5,474,422) -6.02% (4,409,614) -5.52%
Interest and dividend income 1,214,347 1.34% 1,114,931 1.40%
Gain on sale of available-for-sale-investments 0 0.00% 0 0.00%
Others - net (420,856) -0.46% (981,696) -1.23%
(4,680,931) -5.14% (4,276,379) -5.35%
PROVISION FOR INCOME TAX
Current 7,531,782 8.28% 6,335,370 7.94%
Deferred 291,616 0.32% 285,683 0.36%
7,823,398 8.60% 6,621,053 8.30%

NET INCOME P28,124,463 30.95% P24,367,624 30.53%

Attributable to
Equity holders of the Parent P27,573,866 30.33% P23,805,713 29.83%
Non-controlling interests 550,597 0.61% 561,911 0.70%
P28,124,463 30.95% P24,367,624 30.53%
 Years Ended December 31

2017 2016

ASSETS

Current Assets

Cash and cash equivalents P44,371,534 P25,200,982

8.24% 5.41%
Investments held for trading 731,076 918,702
0.14% 0.20%
Receivable 34,277,281 32,833,330
6.37% 7.05%
Condominium and residential units for sale 8,733,299 7,787,549
1.62% 1.67%
Land and development 22,518,138 24,646,487
4.18% 5.29%
Available-for-sale investments 641,300 664,606
0.12% 0.14%
Prepaid expenses and other current assets 14,303,412 11,898,900
2.66% 2.56%
Total Current Assets 125,576,040 103,950,556
23.32% 22.33%
Noncurrent Assets

Investments in associates and joint ventures 24,566,239 22,833,079

4.56% 4.90%
Available-for-sale investments - net of current 30,464,845 20,548,119
portion
5.66% 4.41%
Property and equipment - net 1,493,427 1,619,601
0.28% 0.35%
Investment properties - net 273,084,146 251,499,064
50.72% 54.02%
Land and development - net of current portion 36,148,036 19,472,641
6.71% 4.18%
Derivative assets 3,546,694 5,102,735
0.66% 1.10%
Deferred tax assets - net 1,114,291 1,137,729
0.21% 0.24%
Other noncurrent assets 42,423,880 39,396,608
7.88% 8.46%
Total Noncurrent Assets 412,841,558 361,609,576
76.68% 77.67%
TOTAL ASSETS P538,417,598 P465,560,132
100.00% 100.00%
LIABILITIES AND EQUITY
Current Liabilities
Loans payable P744,400 0.14% P840,000 0.18%
Accounts payable and other current liabilities 51,084,082 9.49% 40,324,504 8.66%
Current portion of long-term debt 25,344,035 4.71% 7,154,151 1.54%
Income tax payable 1,035,215 0.19% 1,102,621 0.24%
Total Current Liabilities 78,207,732 14.53% 49,421,276 10.62%
Noncurrent Liabilities
Long-term debt - net of current portion 167,509,484 31.11% 156,383,534 33.59%
Tenants’ and customers’ deposits - net of current 16,376,024 14,812,280
portion
3.04% 3.18%
Liability for purchased land - net of current portion 2,170,998 0.40% 1,211,658 0.26%
Deferred tax liabilities - net 2,877,971 0.53% 2,552,812 0.55%
Derivative liabilities 777,408 0.14% 0 0.00%
Other noncurrent liabilities 7,624,067 1.42% 5,815,028 1.25%
Total Noncurrent Liabilities 197,335,952 36.65% 180,775,312 38.83%
TOTAL LIABILITIES P275,543,684 51.18% P230,196,588 49.45%
Equity Attributable to Equity Holders of the Parent
Capital stock P33,166,300 6.16% 33,166,300 7.12%
Additional paid-in capital - net 39,662,168 7.37% 39,545,625 8.49%
Cumulative translation adjustment 2,110,745 0.39% 1,400,373 0.30%
Net unrealized gain on available-for-sale 25,489,705 17,502,410
investments
4.73% 3.76%
Net fair value changes on cash flow hedges (311,429) -0.06% 811,625 0.17%
Remeasurement gain (loss) on defined benefit (199,126) 39,687
obligation
-0.04% 0.01%
Retained earnings
Appropriated 42,200,000 7.84% 42,200,000 9.06%
Unappropriated 120,125,945 22.31% 100,170,486 21.52%
Treasury stock (3,287,087) -0.61% (3,355,474) -0.72%
Total Equity Attributable to Equity Holders of the 258,957,221 231,481,032
Parent
48.10% 49.72%
Non-controlling Interests 3,916,693 0.73% 3,882,512 0.83%
TOTAL EQUITY P262,873,914 48.82% 235,363,544 50.55%
TOTAL LIABILITIES AND EQUITY P538,417,598 100.00% P465,560,132 100.00%
 Years Ended December 31
2017 2016 %Change
REVENUE
Rent P51,406,294 P45,693,269 12.50%
Sales:
Real estate 29,434,050 24,999,811 17.74%
Cinema and event ticket 4,767,364 4,666,686 2.16%
Others 5,314,142 4,456,465 19.25%
90,921,850 79,816,231 13.91%

COSTS AND EXPENSES 50,293,058 44,551,175 12.89%

INCOME FROM OPERATIONS 40,628,792 35,265,056 15.21%

OTHER INCOME (CHARGES)

Interest expense (5,474,422) (4,409,614) 24.15%
Interest and dividend income 1,214,347 1,114,931 8.92%
Gain on sale of available-for-sale-investments 0 0 0.00%
Others - net (420,856) (981,696) -57.13%
(4,680,931) (4,276,379) 9.46%
PROVISION FOR INCOME TAX
Current 7,531,782 6,335,370 18.88%
Deferred 291,616 285,683 2.08%
7,823,398 6,621,053 18.16%

NET INCOME P28,124,463 P24,367,624 15.42%

Attributable to
Equity holders of the Parent P27,573,866 P23,805,713 15.83%
Non-controlling interests 550,597 561,911 -2.01%
P28,124,463 P24,367,624 15.42%
 For the Years Ended December 31
2017 2016 %Change
ASSETS
Current Assets
Cash and cash equivalents P44,371,534 P25,200,982
76.07%
Investments held for trading 731,076 918,702
-20.42%
Receivable 34,277,281 32,833,330
4.40%
Condominium and residential units for sale 8,733,299 7,787,549
12.14%
Land and development 22,518,138 24,646,487
-8.64%
Available-for-sale investments 641,300 664,606
-3.51%
Prepaid expenses and other current assets 14,303,412 11,898,900
20.21%
Total Current Assets 125,576,040 103,950,556
20.80%
Non-current Assets

Investments in associates and joint ventures 24,566,239 22,833,079

7.59%
Available-for-sale investments - net of current portion 30,464,845 20,548,119

48.26%
Property and equipment - net 1,493,427 1,619,601

-7.79%
Investment properties - net 273,084,146 251,499,064
8.58%
Land and development - net of current portion 36,148,036 19,472,641
85.63%
Derivative assets 3,546,694 5,102,735

-30.49%
Deferred tax assets - net 1,114,291 1,137,729

-2.06%
Other noncurrent assets 42,423,880 39,396,608
7.68%
Total Noncurrent Assets 412,841,558 361,609,576
14.17%
TOTAL ASSETS P538,417,598 P465,560,132
15.65%
LIABILITIES AND EQUITY
Current Liabilities
Loans payable P744,400 P840,000 -11.38%
Accounts payable and other current liabilities 51,084,082 40,324,504 26.68%
Current portion of long-term debt 25,344,035 7,154,151 254.26%
Income tax payable 1,035,215 1,102,621 -6.11%
Total Current Liabilities 78,207,732 49,421,276 58.25%
Noncurrent Liabilities
Long-term debt - net of current portion 167,509,484 156,383,534 7.11%
Tenants’ and customers’ deposits - net of current portion 16,376,024 14,812,280

10.56%
Liability for purchased land - net of current portion 2,170,998 1,211,658

79.18%
Deferred tax liabilities - net 2,877,971 2,552,812 12.74%
Derivative liabilities 777,408 0 -
Other noncurrent liabilities 7,624,067 5,815,028 31.11%
Total Noncurrent Liabilities 197,335,952 180,775,312 9.16%
TOTAL LIABILITIES P275,543,684 P230,196,588 19.70%
Equity Attributable to Equity Holders of the Parent
Capital stock P33,166,300 33,166,300 0.00%
Additional paid-in capital - net 39,662,168 39,545,625 0.29%
Cumulative translation adjustment 2,110,745 1,400,373 50.73%
Net unrealized gain on available-for-sale investments 25,489,705 17,502,410

45.64%
Net fair value changes on cash flow hedges (311,429) 811,625 -138.37%
Remeasurement gain (loss) on defined benefit obligation (199,126) 39,687

-601.74%
Retained earnings
Appropriated 42,200,000 42,200,000 0.00%
Unappropriated 120,125,945 100,170,486 19.92%
Treasury stock (3,287,087) (3,355,474) -2.04%
Total Equity Attributable to Equity Holders of the Parent 258,957,221 231,481,032

11.87%
Non-controlling Interests 3,916,693 3,882,512 0.88%
TOTAL EQUITY P262,873,914 235,363,544 11.69%
TOTAL LIABILITIES AND EQUITY P538,417,598 P465,560,132 15.65%
 FIANACIAL RATIOS 2016 2017 Industry Average Time Series Analysis Cross-sectional
Analysis
LIQUIDIATY RATIO
1. Current Ratio 2.73 Deteriorating Good
P2.10 P1.61
2. Quick Ratio 1.35 Deteriorating Good
P1.21 P1.02
3. Cash Ratio P0.54 P0.58 Improving
ACTIVITY RATIO
1. Inventory Turnover 1.90 x 1.95 x 4.86 x Improving Poor
2. Average Age of Inventory 266.41 days Improving Good
189.47 days 184.62 days
3. Total Asset Turnover P0.32 Deteriorating Poor
P0.17 P0.16
4. Fixed Asset Turnover Deteriorating
P3.78 P2.41
5. Average Collection Period Improving
148.09 days 135.72 days
DEBT RATIO
1. Debt Ratio Deteriorating
49.45% 51.18%
2. Debt-to-Equity Ratio 106.77% Deteriorating Fair
97.80% 104.82%
3. Interest Coverage 8.55 Deteriorating Good
8.03 P7.57
4. Asset-to-Equity Ratio P1.98 P2.04 Improving
PROFITABILITY RATIO
1. Gross Profit Margin 80% 80% 47.29% Stable Good
2. Operating Profit Margin 44% 45% 32.84% Improving Good
3. Net Profit Margin 31% 31% 27.46% Stable Good
4. Earnings Per Share P0.83 P0.96 P1.22 Improving Poor
5. Return on Total Assets 5% 5% 5.36% Stable Fair
6. Return on Equity 10% 11% 11.91% Improving Good
MARKET RATIO
1. Price/Earnings ratio P32.45 P39.06 P24.07 Improving Good
2. Market/Book (M/B) ratio P1.41 Improving Good
P3.35 P4.18