FABM 2 AND BUSINESS FINANCE PERFORMANCE TASK : Financial Statem

Description:

Using the financial statements for ABM GROUP OF COMPANIES. You will calculate Vertical and Horizontal Ana
below for the year ended in 2016.

Due Date:
The project will be submitted on Aug. 14 2017.

Grade Weight: (80 points)

The financial statement analysis project will count for 80 points of your performance task. The Worksheets contained
completing the requirements for submission.

Requirements:
1. Complete the Excel Spreadsheet in this Workbook labeled Horizontal & Vertical. Calculate the Horizontal & Vert
2. Complete the Excel Spreadsheet in this Workbook labeled Ratios. Calculate the 2016 Ratios and show your comp
GROUP OF COMPANIES.
3. If you represent a credit officer from a bank and the ABM GROUP OF COMPANIES is applying for a 200 million
accommodate the loan application? Why?
Financial Ratio Calculations*
A.  Profitability Ratios
B.  Liquidity Ratios
C.  Leverage Ratios
D.  Efficiency Ratio
M GROUP OF COMPANIES.

OUP OF COMPANIES
 ABM GROUP OF COMPANIES. -Consolidated Statements of Incom
Vertical Vertical
2013 Analysis 2012 Analysis
in millions %-2013 in millions %-2012

Revenues 3,751,551,021.00 3,430,700,496.00

Cost of Sales 3,067,218,589.00 2,799,747,640.00
Gross Profit 684,332,432.00 630,952,856.00
Operating Expenses 568,148,309.00 462,184,796.00
Operating Income 116,184,123.00 168,768,060.00
Other Revenues and Expenses, Net 88,928,261.00 103,032,748.00
Income Before Interest and Taxes 205,112,384.00 271,800,808.00
Interest Expense 62,579,720.00 61,331,464.00
Income before Taxes 142,532,664.00 210,469,344.00
Income Tax Expense 63,259,148.00 60,851,855.00
Net Income 79,273,516.00 149,617,489.00

ABM GROUP OF COMPANIES Vertical Vertical

2013 Analysis 2012 Analysis
in millions %-2013 in millions %-2012
ASSETS
Current Assets
Cash 341,682,074.00 372,549,691.00
Trade and Other Account Receivable 441,848,273.00 372,543,507.00
Trade Inventories 96,882,681.00 93,001,177.00
Other Current Assets 70,708,406.00 117,286,169.00
Total Current Asstes 951,121,434.00 955,380,544.00

Non Current Assets

Property And Equipment 470,409,909.00 423,404,905.00
Intangible Assets 1,207,986,875.00 1,233,706,208.00
Other Non-Current Assets 340,405,976.00 276,990,380.00
Total Non-Current Assets 2,018,802,760.00 1,934,101,493.00
Total Assets 2,969,924,194.00 2,889,482,037.00

LIABILITIES AND STOCK HOLDERS' EQUITY

Current Liabilities
Trade and Other Account Receivable 695,401,918.00 610,375,051.00
Loans Payable 304,500,000.00 306,000,000.00
Current Portion of Long-Term Debt 793,734,791.00 3,188,053.00
Income Taxes Payable 28,162,241.00 26,442,351.00
Total Current Liabilities 1,821,798,950.00 946,005,455.00

Non Current Liablities

Long - Term Debt, Net of Current Portion 1,500,247.00 801,040,752.00
Other Noncurrent Liabilities 121,194,817.00 117,111,220.00
Total Non Current Liabilities 122,695,064.00 918,151,972.00
Total Liabilities 1,944,494,014.00 1,864,157,427.00

Total Equity

Capital Stock 237,795,455.00 237,795,455.00

Additional Paid in Capital 176,806,287.00 176,806,287.00
Retained Earnings 401,680,302.00 365,138,910.00
Others 209,148,136.00 245,583,958.00
Total Equity 1,025,430,180.00 1,025,324,610.00
Total Liabilities and Equity 2,969,924,194.00 2,889,482,037.00
- - -
atements of Income
Horizontal Horizontal
Analysis Analysis
Change % Change
₱2012-2013 2012-2013

Horizontal Horizontal
Analysis Analysis
₱ Change % Change
₱2012-2013 2012-2013
 Ratio

A.  Profitability Ratios

1. Retun on Equity =

2. Return on Assets =

3. Gross Profit Margin =

4. Operating Profit Margin =

5. Net Profit Margin =

B.  Liquidity Ratios

1. Current Ratio =

2. Quick Asset Ratio =

C.  Leverage Ratios

1. Debt Ratio =

2. Debt to Equity Ratio =

3. Interest Coverage Ratio =

D.  Efficiency Ratio

1. Total Asset Turnover Ratio

2. Fixed Asset Turnover Ratio

3. Account Receivable Turnover Ratio

4. Inventory Turnover Ratio

 Formula Calculation
(words) (numbers)

Net income = =
Stockholders’ equity

Operating income = =
Total assets

Gross profit = =
Sales

Operating income = =
Sales

Net income = =
Sales

Current Assets = =
Current Liabilities

(Cash + Current Account Recievable + Short term Market Securities) = =

Current Liabilities

Total Liabilites = =
Revenue

Total Liabilites = =
Total Stock Holder's Equity

EBIT = =
Interest Expense
 Sales
Total Assets

Sales
PPE

Sales
Account Receivable

Cost of Sales
Inventories
Result EXPLANATION
Project 2 Rubric - Students
Criteria Excellent Good
H & V Analysis: TOTAL 30PTS 15 10
Completeness
All requirements are
completed in All requirements are
accordance with the completed and mostly
directions, labeled and follow the directions,
organized well in labeled and fairly
worksheet. organized in worksheet.
Accuracy All ratios are calculated
with accurate results
and appropriate terms
of expression. 80% plus of ratios are
calculated with
accurate results and
mostly appropriate
terms of expression.
Ratios: TOTAL 50PTS 25 20
Completeness

All requirements are

completed in All requirements are
accordance with the completed and mostly
directions, labeled and follow the directions,
organized well in labeled and fairly
worksheet. organized in worksheet.
Accuracy All ratios are calculated
with accurate results
and appropriate terms
of expression. 80% plus of ratios are
calculated with
accurate results and
mostly appropriate
terms of expression.

TOTAL 80PTS
 Poor Very Poor SCORE
5 1

Most requirements are Requirements are not

completed that mostly completed and/or the
follow the directions, directions were
missing some labels and generally not followed,
only somewhat missing labels and
organized. unorganized.

60-79% of ratios are Less than 60% of ratios

calculated with are calculated with
accurate results and accurate results and
some appropriate terms some appropriate
of expression. terms of expression.
15 10

Most requirements are Requirements are not

completed that mostly completed and/or the
follow the directions, directions were
missing some labels and generally not followed,
only somewhat missing labels and
organized. unorganized.

60-79% of ratios are Less than 60% of ratios

calculated with are calculated with
accurate results and accurate results and
some appropriate terms some appropriate
of expression. terms of expression.

TS