Balance Sheet Statement (PhP in Million)

Fiscal Year End

Assets
12/2012 12/2011 12/2010 12/2009
Cash & Equivalent 2,038.00 4,102.00 4,165.00 1,463.00
Receivables 3,527.00 3,438.00 3,723.00 3,116.00
Inventories 1,582.00 1,697.00 1,293.00 2,004.00
Other Cur Assets 6,328.00 6,630.00 4,503.00 1,514.00
Total Cur Assets 13,475.00 15,867.00 13,684.00 8,097.00
Gr Fixed Assets 21,068.00 18,127.00 14,262.00 11,792.00
Accum Depr 9,459.00 7,461.00 5,775.00 4,321.00
Net Fixed Assets 11,609.00 10,666.00 8,487.00 7,471.00
Oth Non-Cur Asset 6,387.00 2,347.00 1,564.00 1,936.00
Tot Non-Cur Asset 17,996.00 13,013.00 10,051.00 9,407.00
Total Assets 31,471.00 28,880.00 23,735.00 17,504.00
Liabilities

Accounts Payable 1,244.00 1,407.00 969.00 864.00
Short-Term Debt 159.00 322.00 389.00 346.00
Other Cur Liab 4,401.00 4,291.00 3,505.00 2,409.00
Total Cur Liab 5,804.00 6,020.00 4,863.00 3,619.00
Long-Term Debt 702.00 448.00 728.00 400.00
Defer Inc Taxes 1,387.00 1,076.00 997.00 620.00
Oth Non-Cur Liab 201.00 2,041.00 275.00 725.00
Tot Non-Cur Liab 2,290.00 3,565.00 2,000.00 1,745.00
Total Liabilities 8,094.00 9,585.00 6,863.00 5,364.00
Preferred Equity 0.0 0.0 0.0 0.0
Common Equity 23,377.00 19,295.00 16,872.00 12,140.00
Retained Earnings 17,952.00 15,984.00 13,975.0 9,557.00
Total Equity 23,377.00 19,295.00 16,872.00 12,140.00
Tot Liab & Stk Eq 31,471.0 28,880.0 23,735.0 17,504.0
Income Statement (PhP in Million)

Fiscal Year End 12/2012 12/2011 12/2010 12/2009
Revenues/Sales 26,273.00 25,070.00 20,847.00 16,202.00
Cost of Sales 9,337.00 7,753.00 7,276.00 6,432.00
Gr Oper Proft 16,936.00 17,317.00 13,571.00 9,770.00
S, G & A Expenses 5,585.00 5,238.00 4,130.00 3,139.00
Op Prof bef Depr 11,351.00 12,079.00 9,441.00 6,631.00
Deprec & Amort 2,807.00 2,192.00 1,888.00 1,379.00
Oper Inc aft Depr 8,544.00 9,887.00 7,553.00 5,252.00
Other Income, Net 792.00 799.00 406.00 415.00
Inc Avail for Int 9,171.00 10,686.00 7,959.00 5,667.00
Interest Expense 34.00 27.00 25.00 29.00
Pretax Income 9,137.00 10,659.00 7,934.00 5,638.00
Income Taxes 3,069.00 3,714.00 2,777.00 2,072.00
Net Inc Tot Ops 6,068.00 6,945.00 5,157.00 3,566.00
Special Inc/Chrg -165.00 0.0 0.0 0.0
Normalized Income 6,233.00 6,945.00 5,157.00 3,566.00
Total Net Income 6,068.00 6,945.00 5,157.00 3,566.00
Preferred Div 0.0 0.0 0.0 0.0
Net Inc Avail Com 6,068.00 6,945.00 5,157.00 3,566.00
Based on the given fnancial statements, compute for the following fnancial
ratios for each year:
a. Working Capital
b. Debt-equity ratio
c. Quick ratio
d. Current ratio
e. Debt to Equity Ratio
f. Assets Turnover Ratio
g. Receivable turn-over
h. Inventory turn-over
i. Return on Equity
j. Return on Investent
k. Return on asset
Meaning of Financial Management
!inancial "anageent eans planning# organi$ing# directing and controlling the %inancial
activities such as procureent and utili$ation o% %unds o% the enterprise. It eans applying
general anageent principles to %inancial resources o% the enterprise.
Scope/Elements
&. Investent decisions includes investent in %i'ed assets (called as capital
budgeting). Investent in current assets are also a part o% investent decisions
called as *orking capital decisions.
+. !inancial decisions - ,hey relate to the raising o% %inance %ro various resources
*hich *ill depend upon decision on type o% source# period o% %inancing# cost o%
%inancing and the returns thereby.
-. Dividend decision - ,he %inance anager has to take decision *ith regards to the
net pro%it distribution. .et pro%its are generally divided into t*o/
a. Dividend %or shareholders- Dividend and the rate o% it has to be decided.
b. Retained pro%its- 0ount o% retained pro%its has to be %inali$ed *hich *ill depend
upon e'pansion and diversi%ication plans o% the enterprise.
Objectives of Financial Management
,he %inancial anageent is generally concerned *ith procureent# allocation and control o%
%inancial resources o% a concern. ,he objectives can be-
&. ,o ensure regular and adequate supply o% %unds to the concern.
+. ,o ensure adequate returns to the shareholders *hich *ill depend upon the earning
capacity# arket price o% the share# e'pectations o% the shareholders.
-. ,o ensure optiu %unds utili$ation. 1nce the %unds are procured# they should be utili$ed
in a'iu possible *ay at least cost.
2. ,o ensure sa%ety on investent# i.e# %unds should be invested in sa%e ventures so that
adequate rate o% return can be achieved.
3. ,o plan a sound capital structure-,here should be sound and %air coposition o% capital
so that a balance is aintained bet*een debt and equity capital.
Functions of Financial Management
&. Estimation of capital requirements: 0 %inance anager has to ake estiation *ith
regards to capital requireents o% the copany. ,his *ill depend upon e'pected costs and
pro%its and %uture prograes and policies o% a concern. Estiations have to be ade in
an adequate anner *hich increases earning capacity o% enterprise.
+. Determination of capital composition: 1nce the estiation have been ade# the capital
structure have to be decided. ,his involves short- ter and long- ter debt equity
analysis. ,his *ill depend upon the proportion o% equity capital a copany is possessing
and additional %unds *hich have to be raised %ro outside parties.
-. Choice of sources of funds: !or additional %unds to be procured# a copany has any
choices like-
a. Issue o% shares and debentures
b. 4oans to be taken %ro banks and %inancial institutions
c. 5ublic deposits to be dra*n like in %or o% bonds.
Choice o% %actor *ill depend on relative erits and deerits o% each source and period o%
%inancing.
2. nvestment of funds: ,he %inance anager has to decide to allocate %unds into pro%itable
ventures so that there is sa%ety on investent and regular returns is possible.
3. Disposal of surplus: ,he net pro%its decision have to be ade by the %inance anager.
,his can be done in t*o *ays/
a. Dividend declaration - It includes identi%ying the rate o% dividends and other
bene%its like bonus.
b. Retained pro%its - ,he volue has to be decided *hich *ill depend upon
e'pansional# innovational# diversi%ication plans o% the copany.
6. Management of cash: !inance anager has to ake decisions *ith regards to cash
anageent. Cash is required %or any purposes like payent o% *ages and salaries#
payent o% electricity and *ater bills# payent to creditors# eeting current liabilities#
aintainance o% enough stock# purchase o% ra* aterials# etc.
7. Financial controls: ,he %inance anager has not only to plan# procure and utili$e the
%unds but he also has to e'ercise control over %inances. ,his can be done through any
techniques like ratio analysis# %inancial %orecasting# cost and pro%it control# etc

Fiscal Year End 12/1998 12/1997 12/1996 12/1995
Book Value P/S 7.05 5.93 5.14 3.70
Price/Book Val (%) 841 592 637 383
Debt/Equity (%) 3 2 4 3
LT Debt % Inv Cap 2.9 2.3 4.1 3.2
LT Debt % Tot Dbt 8.7 4.7 10.6 7.5
Debt % Tot Assets 25.7 33.2 28.9 30.6
Quick Ratio 1.0 1.3 1.6 1.3
Current Ratio 2.3 2.6 2.8 2.2
Revenue/Assets (%) 80.0 90.0 90.0 90.0
Price/Revenue (%) 748 456 516 288
Cash % Revenue 7.8 16.4 20.0 9.0
Pre-Tax Mgn (%) 34.8 42.5 38.1 34.8
Post-Tax Mgn (%) 23.1 27.7 24.7 22.0
Ef Tax Rate (%) 33.6 34.8 35.0 36.8
Receivable Turn 7.5 7.0 6.1 6.4
Inventory Turn 5.7 5.2 4.4 4.1
Ret on Equity (%) 26.0 36.0 30.6 29.4
Ret Invest Cap (%) 25.2 35.2 29.3 28.4
Ret on Assets (%) 19.3 24.0 21.7 20.4
Current Ratio
Current Assets
Current Ratio = ------------------------
Current Liabilities

Quick Ratio
Quick Assets
Quick Ratio = ----------------------
Current Liabilities

Quick Assets = Current Assets - Inventories

Net Working Capital Ratio
Net Working Capital
Net Working Capital Ratio = --------------------------
Total Assets

Net Working Capital = Current Assets - Current Liabilities


Profitability Analysis Ratios
Return on Assets (RA!
Net Inco"e
Return on Assets (RA! = ----------------------------------
Average Total Assets

Average Total Assets = (#eginning Total Assets $ %n&ing Total Assets! ' (

Return on %)uit* (R%!
Net Inco"e
Return on %)uit* (R%! = --------------------------------------------
Average +tock,ol&ers- %)uit*

Average +tock,ol&ers- %)uit*
= (#eginning +tock,ol&ers- %)uit* $ %n&ing +tock,ol&ers- %)uit*! ' (

Return on Co""on %)uit* (RC%!
Net Inco"e
Return on Co""on %)uit* = --------------------------------------------
Average Co""on +tock,ol&ers- %)uit*

Average Co""on +tock,ol&ers- %)uit*
= (#eginning Co""on +tock,ol&ers- %)uit* $ %n&ing Co""on +tock,ol&ers- %)uit*! ' (

.rofit /argin
Net Inco"e
.rofit /argin = -----------------
+ales


%arnings .er +,are (%.+!
Net Inco"e
%arnings .er +,are = ---------------------------------------------
Nu"ber of Co""on +,ares utstan&ing



Activity Analysis Ratios
Assets Turnover Ratio
+ales
Assets Turnover Ratio = ----------------------------
Average Total Assets

Average Total Assets = (#eginning Total Assets $ %n&ing Total Assets! ' (

Accounts Receivable Turnover Ratio
+ales
Accounts Receivable Turnover Ratio = -----------------------------------
Average Accounts Receivable

Average Accounts Receivable
= (#eginning Accounts Receivable $ %n&ing Accounts Receivable! ' (

Inventor* Turnover Ratio
Cost of 0oo&s +ol&
Inventor* Turnover Ratio = ---------------------------
Average Inventories

Average Inventories = (#eginning Inventories $ %n&ing Inventories! ' (


Capital Structure Analysis Ratios
1ebt to %)uit* Ratio
Total Liabilities
1ebt to %)uit* Ratio = ----------------------------------
Total +tock,ol&ers- %)uit*


Interest Coverage Ratio
Inco"e #efore Interest an& Inco"e Ta2 %2penses
Interest Coverage Ratio = -------------------------------------------------------
Interest %2pense

Inco"e #efore Interest an& Inco"e Ta2 %2penses
= Inco"e #efore Inco"e Ta2es $ Interest %2pense

Capital Market Analysis Ratios
.rice %arnings (.%! Ratio
/arket .rice of Co""on +tock .er +,are
.rice %arnings Ratio = ------------------------------------------------------
%arnings .er +,are


/arket to #ook Ratio
/arket .rice of Co""on +tock .er +,are
/arket to #ook Ratio = -------------------------------------------------------
#ook 3alue of %)uit* .er Co""on +,are

#ook 3alue of %)uit* .er Co""on +,are
= #ook 3alue of %)uit* for Co""on +tock ' Nu"ber of Co""on +,ares

1ivi&en& 4iel&
Annual 1ivi&en&s .er Co""on +,are
1ivi&en& 4iel& = ------------------------------------------------
/arket .rice of Co""on +tock .er +,are

#ook 3alue of %)uit* .er Co""on +,are
= #ook 3alue of %)uit* for Co""on +tock ' Nu"ber of Co""on +,ares

1ivi&en& .a*out Ratio
Cas, 1ivi&en&s
1ivi&en& .a*out Ratio = --------------------
Net Inco"e

Sunday, September 23, 2012