Name: Cinco, Marc Vincent T. BSAB - III Subject: MGMT124 Intro.

To Financial Management
Instructor: Maria Aries O. Poliquit Score

ASSIGNMENT NO. 8

VALUES EVALUATION

INDUSTRY
FINANCIAL RATIO AVERAGE
Time series
2010 2009 CROSS-SECTIONAL
(2009-2010)

LIQUIDITY

The firm has a low current From 2009 to 2010, the

ratio when compared to company's current ratio
Current Ratio 1.54 0.72 0.91 the industry average, decreases. It doesn't have
implying a lower level of enough liquidity.
liquidity.

The quick ratio of the firm The quick ratio indicates a

declined at a much slower worsening liquidity situation.
Quick Ratio 1.08 0.33 0.74
rate than the industry
average.

ASSETS MANAGEMENT

Inventory turnover has It was excellent the prior year

been favorable in both because it was high, but it is
Inventory Turnover 6.5 8.72 11.5
years, since it is greater terrible this year since it has
than the industry average. decreased.

Because the average age Based on the ratio from 2009

of inventory turnover was to 2010, it is poor since it is
lower than the industry growing, implying that
Average Age of
56 42 32 average in both years, it inventory is being sold for a
Inventory
indicates that the firm longer period of time.
converts its inventory
quickly into income.

Days Sale No data 3 9 (No data from industry The business is doing well in
Outstanding average) collecting receivables,
according to the ratio, which
has decreased, suggesting
that receivables are being
 turned into cash quickly.

The ratio increased in 2010,

Average Payment (No data from industry indicating that the firm takes
No data 102 90
Period average) longer, in days, to pay its
payables.

Fixed asset turnover fell in

2010 compared to the prior
year. Despite the fact that
fixed asset investment in 2010
(No data from industry
Fixed Asset Turnover No data 6.2 9.4 was larger than in 2009, it
average)
implies that the business
made considerable use of its
fixed assets to generate
income in that year.

In comparison to the The ratio grows, indicating

industry average, the firm high asset efficiency.
has a high total asset
Total asset turnover 0.67 2.9 1.9 turnover ratio; it
efficiently utilizes all of its
assets to produce
revenue.

DEBT RATIO

The company's debt ratio The ratio fell in 2010, as the

is greater than the balance sheet's payables
industry average, implying decreased, resulting in a
Debt ratio 0.65 0.8 0.9 excessive financial decrease in interest expense.
leverage. In 2010, the company's
financial leverage was
reduced.

It has a higher time The ratio fell in 2010, which is

interest earned ratio than excellent because it implies
the industry average, the firm is no longer exposed
which is a favorable to yearly interest costs.
Time interest earned 1.62 4.06 1.7
characteristic. With its
present earnings, it can
meet its annual interest
charge.

PROFITABILITY RATIOS

Gross Profit Margin 39.7% 12.13% 9.2% Over those two years of Since 2010, when the gross
operation, the company's profit margin rose, the firm
gross profit was lower
 than the industry average, has achieved improvement.
which is unacceptable, and
the company's relative
cost of things sold was
high.

Pure profit was greater The operational profit fell by

Operating Profit than the industry average 4.52 percent, indicating a
6.1% 3.39% 7.9%
Margin in 2009, but it fell in 2010, serious concern for the firm.
which was negative.

The company's net profit The net profit margin

margin is low when improved in 2010, which is
compared to the industry positive; nevertheless,
average; it is mostly due to interest expenditure and
Net Profit Margin 2.4% 1.75% 0.66%
costs and interest operational expense
payments on loans. decreased in net income,
resulting in fewer deductions
from gross profit.

(No data from industry It's excellent because it's up

Earnings Per Share No data P0.22 P0.05
average) from 2010.

Its return on total assets is On 2010, the ROA increased

greater than the industry by 3.99% which is a sign of
Return on Total average, which is positive, progress
0.4% 5.04% 1.05%
Assets and their asset
investments are
worthwhile and efficient.

It is both excessively high The ROE is good since it

Return on Common and very nice; investors increased by 18.7% in 2010
-2.3% 35.2% 16.5%
Equity are eager to invest in such
a circumstance.

It's excellent since it's risen,

(No data from industry indicating that they have a lot
Basic Earning Power No data 9.73% 3.68%
average) of earning potential and are
lucrative in their activities.

MARKET RATIO

P/E Ratio No data 236.4% 960 (No data from industry It is bad since it decreased by
average) 75%

M/B Ratio No data 83.87% 171.43 (No data from industry It is bad since it also
average) decreased by 51%