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Figure 1. Operating Margins of Pilipinas Shell and Petron Corporation from 2014 to 2016
Pilipinas Shell
Petron Corporation
As shown in figure 1, Shells operating margin from the year 2014 to 2016 has
been continuously increasing. From 0.73% in the year 2014, it went up to 12.74% in year
2015, and also increased again to 17.77% in the year 2016. This great increase in the
companys operating margin can be attributed from the great increase also of its operating
income from 1,634,736 in the year 2014 to 24,301,740 in 2016. However, as shown in
the computation above, the companys sales from years 2014 has been continuously de-
creasing from 224,084,825 in 2014 to just 136,763,286 in 2016.This decrease in its sales
also caused the ratio to increase.
As to Petron, it also had an increasing trend in terms of its operating margin. From
4.03% in 2014, it grew to 8.81% in 2015, and to 10.97% in 2016. Comparing the two,
even though both are in an increasing trend, Shells trend is faster in phase and grows
greater than Petron as Shells operating income becomes bigger and bigger each year.
Figure 2. Profit Margins of Pilipinas Shell and Petron Corporation from 2014 to 2016
Ratio Company 2014 2015 2016
Pilipinas Shell
Petron
As to Petron, it also had an increasing trend in terms of its profit margin for the past three
years. From 0.62% in 2014, it increased to 1.74% in 2015, and to 3.15% in 2016. Com-
paring the two, Shells phase in an increasing trend is still faster than that of Petrons as
Shells Net income has been growing hugely these past three years.
Figure 3. Return on Total Assets of Pilipinas Shell and Petron Corporation from 2014 to 2016
Ratio Company 2014 2015 2016
Pilipinas Shell
Petron
As shown in figure 3, Shells return on total assets had been increasing for the past
three years. From (11.55%) in year 2014, it went up to 5.36% in 2015 which continued to
increase to 10.54% in year 2016. As ROA measures how effectively a company uses its
assets in generating profit, we could therefore conclude that the company has been man-
aging its assets efficiently from the previous years as also has been proven by the in-
crease in its profit from a net loss of 8,488,580 in 2014 to a net income of 3,553,196 in
2015, and also an increase in profit to 7,443,775 in 2016.
As to Petron, it also had an increasing trend for the past few years. From 0.77% in
the year 2014, it increased to 2.13% in 2015, which furtherly increased to 3.39% in 2016.
This increasing trend of Petrons return on assets can be attributed from the increasing
trend also in its net income for the past three years. Comparing the two, Shell still has a
better trend in terms of its return on Assets as Shells Net income has been increasing
hugely these past three years.
Figure 4. Return on Equity of Pilipinas Shell and Petron Corporation from 2014 to 2016
Ratio Company 2014 2015 2016
Pilipinas Shell