ANALYSIS:

Gross Profit Margin. The result 51% indicates that the business earns enough sales
revenues to cover their cost of selling the goods. The result also indicates that there is a
49% cost ratio.

Net Profit Margin. This ratio can be interpreted to mean that for every P1 sales
revenue, the firm has P0.41 net income.

Return on Investments. This ratio could be interpreted to mean that for every P1 of
liability and invested capital, the business generates P0.07 net income. This is a
relatively low ratio.

Return on Equity. The ratio indicates that for every P1 of equity, the business
generates P0.07 net income. This is a relatively low ratio. The business should make
efficient use of the capital in order to yield more income.

Fixed Asset Turnover. The computed ratio signifies that for every P1 fixed asset used
by the company, P0.21 sales revenue is generated. This indicates that the business is
not efficient in using its fixed assets.

Total Asset Turnover. The result signifies that for every P1 assets of the business,
P0.15 sales revenue is generated.

Inventory Turnover. The results implies that the company sold its inventory 2.40 times
a month or after every 12.5 days.