Endterm Paper Finmgt - Final

COMPARATIVE STUDY ON FINANCIAL ANALYSIS OF MEGAWORLD
CORPORATION, AYALA LAND INC., & SM PRIME HOLDINGS
SUBMITTED BY:
CHEUNG, BIEN BELLE B.
GABRIDO, NINA ISABEL L.
OCENA, JENNIVEVE D.
VILLAROSA, MICHAELA ROSE T.
SUBMITTED TO:
MR. FELIX D. CENA
DATE SUBMITTED:
December 17, 2022
I. INTRODUCTION
Megaworld Corporation is the Philippines' premier and largest developer of

residential condos, BPO offices, and pioneering live-work-play townships. Mr. Andrew L.
Tan, a visionary, is in charge. Since June 15, 1994, the firm has been listed on the Philippine
Stock Exchange. It is a subsidiary of Alliance Global Group, Inc., which owns 67 percent
of the company.
Megaworld is widely regarded as the first in the country to design the "township,"
a large-scale, strategically positioned, and master-planned development that combines
housing, workplaces, and retail areas in a unified setting. Later townships added a "learn"
component to the live-work-play lifestyle, bringing schools and learning institutions within
the community.
The organization. The concept of an "integrated lifestyle community or ILC,"

which focuses on residential and leisure components with the environment as an extended
amenity, was also brought to the Philippines.
Ayala Land Inc. (the firm or ALI) is based in the Republic of the Philippines and
was founded on June 30, 1988. Ayala Corporation is the company's parent (AC). AC is a
publicly traded business in which Mermac, Inc. owns 47.74 percent, Mitsubishi
Corporation (MC) owns 10.15 percent, and the remainder is owned by the general public.
The registered office and major place of business of the corporation are located on the 31st
floor of Tower One and Exchange Plaza, Ayala Triangle, and Ayala Avenue, Makati City.
The Company and its subsidiaries (the "Group") were formed to hold, develop,
manage, administer, sell, convey, encumber, purchase, acquire, rent, or otherwise deal in
and dispose of residential property, including but not limited to all types of housing
projects, commercial, industrial, urban, or other types of real property; to acquire, purchase,
hold, develop, and sell subdivision lots, with or without buildings or improvements; to ere
SM Prime Holdings Inc. (SMPH) is one of Southeast Asia's major integrated

property developers, developing malls, apartments, offices, hotels, and conference
facilities to create creative and sustainable lifestyle cities. In terms of assets, it is also the
largest in the Philippines.
In 1994, SM Prime Holdings, Inc. was formed in the Philippines. It began as a mall
developer and operator and has since grown to become the Philippines' largest retail
shopping center developer and operator. It now operates 79 malls in and around Metro
Manila and 7 retail malls in China, with a total gross floor space of 10.2 million square
meters (GFA). They have a total of 17,715 renters in the Philippines and 1,853 tenants in
China.
Objective/Purpose of Study
The purpose of this study is to consider the following:
1. To make a comparative study of three major companies in the real estate industry in the
Philippines with their 3-year financial statement.
2. To determine the strengths and weaknesses of each company (Megaworld Corporation,

Ayala Inc., and, SM Holdings).
3. To compare Megaworld Corporation’s performance with its competitors.
4. To assess and evaluate each company’s financial ratios.

C. FINANCIAL RATIO ANALYSIS
MEGAWORLD CORPORATION
2021 2020 2019 2018 2017

Liquidity Ratios
Current Ratio 2.98 2.9 3.31 3.69 2.73
Quick Ratio 1.61 1.28 1.31 1.38 1.08
Profitability Ratios
Operating Margin 29.44% 62.61% 37.67% 39.54% 39.75%
Profit Margin 26.47% 22.71% 26.62% 28.03% 27.80%
Return on Assets 3.38% 2.63% 5.13% 4.68% 4.23%
Basic Earnings Power 3.75% 7.26% 7.26% 6.60% 6.53%
Return on Equity 6.76% 5.33% 10.05% 9.21% 8.15%
Asset Management Ratios

Accounts Receivable 1.03 0.95 1.49
Turnover 1.51 1.58
Inventory Turnover 0.14 0.13 0.22 0.21 0.22
Days Sales Outstanding 353 days 386 days 245 days 230 days 242 days
Fixed Asset Turnover 1.65 1.32 2.34 1.80 1.47
Inventory Conversion Period 2,611 days 2,944 days 1,718 days 1,694 days 1,659 days
Debt Management Ratios

Debt Ratio 0.50 0.51 0.49 0.49 0.48
Equity Ratio 0.50 0.49 0.51 0.51 0.52
Debt-Equity 1.00 1.03 0.96 0.97 0.93
Times Interest Earned 0.48x 1.01x 0.96x 0.86x 1.05x
Market Value Ratios

Earnings Per Share 0.42 0.29 0.54 0.41 0.43
Market-Book Value 0.91x 0,69x 0,71x 0.83x 0.73x
Price-Earnings 74.76 63.10 25.91 32.51 31.19
Table 7. Megaworld Financial Ratios
AYALA LAND INC.
2021 2020 2019 2018 2017

Liquidity Ratios
Current Ratio 1.58 1.62 1.3 1.62 1.3
Quick Ratio 0.87 0.89 0.77 0.89 0.77
Profit Margin 11.64% 9.16% 19.88% 17.69% 18.07%
Return on Assets 1.64% 1.21% 4.65% 4.37% 4.32%
Return on Equity 5.26% 3.92% 15.72% 15.61% 14.65%

Accounts Receivable Turnover 0.87 0.78 1.34 1.15 0.98
Days Sales Outstanding 418days 467days 271days 318days 374days
Inventory Conversion Period 745days 809days 418days 344days 240days

Debt Ratio 0.69 0.69 0.70 0.72 0.70
Equity Ratio 0.31 0.31 0.30 0.28 0.30
Debt-Equity 2.20 2.24 2.38 2.57 2.39
Market Value Ratios

Market-Book Value 2.3x 2.7x 3.3x 3.4x 4.2x
Price-Earnings 44.22 69.32 20.22 21.71 20.65
Table 8. Ayala Land Inc. Financial Ratios
SM PRIME HOLDINGS
2021 2020 2019 2018 2017

Liquidity Ratios
Current Ratio 1.39 1.16 1.6 1.62 1.3
Quick Ratio 0.98 0.83 1.13 0.89 0.77
Profit Margin 26.47% 21.99% 32.19% 30.91% 30.32%
Return on Assets 2.71% 2.49% 5.71% 5.50% 5.31%
Return on Equity 6.43% 5.82% 12.66% 11.69% 12.05%

Accounts Receivable Turnover 1.13 1.3 2.21 2.95 2.65
Days Sales Outstanding 323days 262days 165days 123days 137days
Inventory Conversion Period 416days 305days 263days 218days 252days

Debt ratio 0.58 0.57 0.55 0.56 0.56
Equity Ratio 0.41 0.43 0.45 0.47 0.44
Debt-Equity 1.42 1.34 1.22 1.19 1.27
Market Value Ratios

Market-Book Value 2.19 3.59 0.04 1.04 0.96
Price-Earnings 31.9 61.7 31.9 33.4 11.0
Table 9. SM Prime Holdings Financial Ratios
III. SUMMARY OF FINDINGS
A. Vertical Analysis
Proportional examination of documents, such financial statements, is made possible
via vertical analysis. In a vertical analysis, each line item on a financial statement is
recorded as a percentage of another item. For instance, every line item on an income
statement is expressed as a percentage of gross sales. Because single items on a balance
sheet are expressed as percentages, vertical analysis makes it easier to see how they relate
to the bottom line. The percentages can be used by the management of a corporation to
define objectives and ceilings. (Corporate Finance Institute, 2020).
Table 10. Sum of Sales by Year and Company
In relation to sales, Table 10 above shows the comparison and trend of sales of the
three real estate companies in the Philippines: Megaworld Corporation, Ayala Land INC.,
and SM Prime Holdings. It is clearly shown that from the year 2017 their sales continue to
increase and peaked on the year 2019. However, on the year 2020 which is a crucial year
for businesses due to the uncertainties brought by the sudden appearance of the pandemic,
the sales of the three companies had greatly decreased. The companies managed to bounce
back a year after and was able to increase their sales again.
The comparative income statements of Megaworld Corporation, Ayala Land Inc.,
and SM Prime Holdings on tables 4-6, as shown above, depict the relationship of certain
line items to sales. The gross income item in the income statement reflects the revenue of
the company after deductions. Megaworld Corporation had the highest gross income
percentage of sales in 2017, at 56.37%, followed by 56.14%, 55.66%, 54.55%, and 53.81%,
respectively, for the years 2018, 2019, 2020, and 2021. During the year 2019, 37.09% of
Ayala Land Inc.'s sales represented its gross operating income for the year. This means that
comparing the five years of operation of Ayala Land Inc., its revenues are higher than their
expenses in 2019. The gross income on sales percentage for the years 2021, 2020, 2018,
and 2017 is 30.95%, 30.55%, 30.10%, and 32.39%, respectively. In 2019, SM Prime
Holdings had a higher gross income on sales percentage of 47.92%. In the prior and
subsequent years, SM Prime had 44.69%, 38.83%, 35.50%, and 39.38% for the years 2017,
2018, 2020, and 2021, respectively. Having a relatively high gross income to sales
percentage indicates that the company has more money and is able to contribute to its
indirect costs.
The cost of goods sold having ad in the income statement represents the amounts
spent by the company to buy, manufacture, and sell their products. Megaworld Corporation
had the highest cost of goods sold percentage of sales in 2021, at 46.19%, while having the
lowest cost of goods sold percentage of sales in 2017, at 43.63%. Furthermore, Megaworld
had 46.19%, 45.45%, and 43.86% in 2021, 2020, and 2018, respectively. Ayala Land Inc.,
on the other hand, had a higher cost of goods sold percentage on sales in 2020 with 69.45%.
In 2021, 2019, 2018, and 2017, Ayala had 69.05%, 62.91%, 66.90%, and 67.61%,
respectively. SM Prime Holdings, with respect to costs of goods sold as a percentage of
sales, shows 60.62%, 64.50%, 52.08%, 61.17%, and 55.31% for the years 2021, 2020,
2019, 2018, and 2017, respectively. In addition, having a higher cost of goods sold means
that the company pays less tax; however, it also means that the company makes less profit.
This calls for a change in the course of the business, which is to minimize the costs incurred
to make the product in order to raise higher profits than the previous year of operation.
The “income before tax” item on the income statement of the financial report of the
company shows the income of the company after the deduction of expenses but before the
deduction of the company’s taxes. Companies pay different taxes depending on where they
do business; therefore, earnings before taxes are a more accurate reflection of the firm’s
actual revenue. Megaworld Corporation had an income before tax percentage on sales of
32.60%, 31.37%, 37.41%, 40.83%, and 41.92% in 2021, 2020, 2019, 2018, and 2017, with
2017 having the highest percentage. Ayala Land Inc. had an income before tax percentage
on sales of 18.51%, 15.18%, 29.88%, 27.35%, and 27.14% for 2021, 2020, 2019, 2018,
and 2017, respectively. SM Prime Holdings, on the other hand, has 33.69%, 27.43%,
41.55%, 40.32%, and 39.54% for 2021, 2020, 2019, 2018, and 2017. In comparison,
Megaworld Corporation had the highest income before taxes as a percentage of sales for
the past 5 years of operation.
Net income is the gross profit less all other expenses and costs that the company
has incurred, as well as any other income and revenue sources that are not included in gross
income. Megaworld Corporation for the years 2021, 2020, 2019, 2018, and 2017 had
accumulated 28.64%, 23.81%, 28.03%, 28.03%, and 27.80%, respectively. Ayala Land
Inc., for the years 2021, 2020, 2019, 2018, and 2017, had accumulated 11.64%, 9.16%,
19.89%, 17.69%, and 18.07%, respectively. SM Prime Holdings for the years 2021, 2020,
2019, 2018, and 2017 had accumulated 26.47%, 21.99%, 32.19%, 30.91%, and 30.33%,
respectively. This implies that for the three companies, 2019 is their most profitable year.
In 2019, Megaworld had a net income percentage of sales of 28.03%, Ayala had 19.89%,
and SM Prime had a net income percentage of sales of 32.19%. Furthermore, during the
year, the companies efficiently converted their sales into actual profit with all their
resources.
B. Horizontal Analysis
Horizontal analysis is a method of analyzing financial statements that compares
financial information from one accounting period to information from prior periods. Trends
or changes are measured by comparing current-year data to base-year values (Corporate
Finance Institute, 2020). The given information in Tables 4-6 shows the changes in the
respective amounts in the balance sheets of the three companies over their 3-year period of
operation.
The assets of Megaworld Corporation increased by 5.93% in 2021, 7.44% in 2020,

8.48% in 2019, and 3.79% for 2018.We can see that throughout the five years of operation
Megaworld’s asset keeps on increasing every year. Their financial report reflects an
increase in inventory for the year 2021 and an increase in cash in 2020. In terms of
liabilities, Megaworld Corporation had an increase of only 4.69% in 2021, much lower
than the 11.13% in the previous year, 8.04% and 6.17% for 2019 and 2018, respectively.
Their equity, on the other hand, had an increase of 7.21%, 3.92%, 8.92%, 1.58% in 2021,
2020, 2019, and 2018 respectively. This implies that for the years 2021 and 2019, MGC
relies on their equity rather than debts and relies on debts for the years 2020 and 2018. In
2020 and 2019, they had an increase in liabilities, which is even higher than their equity
and assets. This could've been a crucial year for them, but luckily, they managed to bounce
back in the following year.
As reflected in their balance sheet, Ayala Land Inc. had a minimal increase
compared to Megaworld Corporation and SM Prime Holdings. In the year 2021, their assets
had an increase of 3.32%, compared with 1.06% in 2020. For the years 2019 and 2018,
they had an increase of 6.74% and 14.25% respectively. Liabilities were increased by
2.78% in 2021 and decreased by 0.78% in the previous year. While for the years 2019 and
2018, liabilities where increased by 4.43% and 16.69%, respectively. Equity had an
increase of 4.53%, 5.44%, 12.68%, 8.42% in the years 2021, 2020, 2019 and 2018,
respectively. This implies that Ayala Land INC. is dependent on their equity for the years
2010, 2020, and 2019. While being dependent on debt for the year of 2019.
SM Prime Holdings, compared to MGC and ALI, had the largest increase in assets,
with a 11.36% increase in 2021, an 8.25% increase in 2020, 10.45% and 16.415 for the
years 2019 and 2018, respectively. This demonstrates that SM Prime Holdings' assets
increased due to the accumulation of accounts receivable and the issuance of more long-
term investments. However, the group found out that SMPH is more dependent on debt
than equity, compared to Megaworld and Ayala, which are more dependent on equity than
debt in their past years of operation. Their liabilities had the largest increase among the
three companies, at 14.14% in 2021 and 12.75% in 2020, 11.41% and 13.31% for 2019
and 2018 respectively. Their equity on the other hand, had 7.64%, 2.78%, 9.30% and
20.33% for 2021, 2020, 2019 and 2018 respectively. As reflected in their balance sheet,
their business' funds mostly came from short-term and long-term debts.
C. Financial Ratio Analysis

Financial ratios are basic calculations using quantitative data from a
company’s financial statements. They are used to get insights and important information
on the company’s performance, profitability, and financial health (Datarails, 2022).
a. Current Ratio
The current ratio is a measure of liquidity that reveals a company’s ability to pay
back short-term loans that are due within the upcoming year. It provides an answer to the
question, “How much in current assets must be held to equal one dollar in current
liabilities?” The ability of a business to fulfill its short-term obligations due within a year
is gauged using the current ratio, also known as the working capital ratio. In other words,
it demonstrates how a business can use its current assets to the fullest to pay its short-term
debts.
A higher ratio denotes a higher level of liquidity, according to Robert Johnson, a

CFA and professor of finance at Creighton University's Heider College of Business. "The
current ratio is simply current assets divided by current liabilities."
For the real estate industry, a decent current ratio is typically anything greater than
1, with 1.5 to 2 being desirable. If so, the business has plenty of cash on hand to cover its
debts while still making good use of its capital.
A company's current ratio being lower than the industry standards pertains to them
having a problem with the payment of short-term loans. However, too high compared to
the standard of what was stated by the industry as good indicates inadequate management
of assets, resulting in a problem with liquidity.
For the 5 years that were observed in Megaworld Corporation's business operations,
the company's current ratio exceeded the standards that the industry had stated. It was much
higher compared to other companies in the same field. From 2017 to 2019, Megaworld
Corporation's current ratio far surpassed the standard of a good current ratio. In 2019, a
drop of 0.38 was experienced. This continued on until 2021, when there was a noticeable
decrease in their current ratio. Despite these fluctuations, Megaworld Corporation's current
ratio still exceeds the standard. They have a large amount of assets in comparison to
liabilities. In the end, these could be attributed to the company having many subsidiaries
and massive projects as compared to SM Prime Holdings and Ayala Land Incorporation.
Through the 5 years that was observed on Ayala Land Inc. operation, it is evident
that there were various fluctuations in the current ratios of Ayala Land. In 2017–2019, the
company reached the industry's standard for a good current ratio, although not the desirable
range of 1.5–2.0. It is clear that they had no trouble paying their debts or assets and are
financially stable. In 2020, however, the company experienced a massive increase in their
current ratio, from 1.3 to 1.62, which was a big leap compared to its previous year. This
increase in the current ratio can be attributed to the fact that 2020 is the year when the
pandemic brought on by COVID-19 struck the most. People are forced to stay at home,
and workers' income has decreased as job problems and health protocols have taken over
the life people were accustomed to.Ayala Land is also affected by their sales and has
experienced a tremendous drop. Hence, the increase in current assets in 2020 indicates an
inadequate outflow of inventories. In 2021, there is still an increase of 1,413,140 in their
inventories; however, compared to the increase from 2019–2020, this could still be
considered small. Furthermore, a recovery can be seen as Ayala Land sales improve in
2020.
We can see from the data above that SM Prime Holdings encountered gains and
losses in these 5 years. There was a drop in their current assets in 2018, although still
considered up to standard, when compared to the previous couple years. This ratio is
considered low. When COVID-19 struck in the year 2019 and had massive outbreaks in
2020, the company's current ratio fluctuated from 1.6 to 1.16, making it evident that the
company experienced a decrease in their current ratio. Despite the drop in the current ratio,
the company is still capable of supporting the payment of its debts with its assets. The
company's inventory also has movements, as there is a stable outflow. However, in 2021,
the inventory of the company increased as their current ratio showed 0.23 percent growth.
Table 11. Comparison of the Current Ratio of the three companies
The quick ratio measures how well a company can meet its short-term liabilities
with its most liquid assets. It calculates the percentage of a company's current liabilities
that can be covered by cash and assets that can be quickly converted to cash. Because it's
used to gauge a company's financial health, the quick ratio is often referred to as the acid
test ratio. A company with a positive quick ratio is thought to have a higher chance of
surviving a crisis than one with a negative quick ratio.
A quick ratio equal to or higher than 1 indicates that the business has adequate
liquid assets to cover its immediate liabilities. However, an exceptionally high quick ratio
isn't necessarily a positive thing, either, as it can mean the corporation is hoarding cash that
would be better used to grow the business. Additionally, a company doesn't have enough
fast assets to cover all of its short-term obligations if its quick ratio is less than 1. If there
is a disruption, it might struggle to locate the money to pay its creditors.
Out of all the three companies, Megaworld Corporation is the only one that showed
steady attainment of the industry's standard for what is considered a good quick ratio. They
have the ability to protect themselves in times of crisis and were successful in disposing of
their inventories despite the pandemic happening. Although it fluctuated from high to low,
it remained within the acceptable range. And like other companies, Megaworld
Corporation also experienced a drop in 2019 and 2020. In the following year, they incurred
and recovered from these two previous years and achieved a greater quick ratio of 1.61;
however, if this is not prevented, it could result in inadequate cash circulation and cash
hoarding.
Based on the data on Ayala Land Inc., it can be observed that there was a decrease
and increase in the company's quick ratio. In 2017, it was 1.08; the following year, it
dropped to 0.82, and in 2019, it reached the lowest quick ratio in this set of calculations.
This is due to the company's reliance on inventory, which accounts for the largest portion
of their current assets. From 2018–2021, Ayala Land Incorporation did not reach the
standard of the industry's quick ratio of being equal to 1 or higher. This indicates that the
company is incapable of covering its short-term obligations as it lacks the appropriate
amount of assets to do so. In other words, for every 1 of current liabilities, the company
has 1.08 of quick assets to pay for 2017, 0.82 for 2018, 0.77 for 2019, 0.89 for 2020, and
0.87 for 2021.
The calculation of quick ratios for SM Prime Holdings showed a steady decline.
For the first 3 years in this data, despite the decrease in quick ratio, the company is still
within the standards of a particularly good quick ratio that is considered by the industry.
SM Prime Holdings' quick ratio fell dramatically in 2019, from 1.58 in the previous year
to 1.13 in 2019 and is expected to fall further to 0.83 in 2020, making it lower than industry
standards. The catalyst for the drop can be attributed to the company's total inventories in
2019, which increased significantly compared to the previous period. This means that
inventories are being disposed of slowly in 2019, making it difficult for them to be
converted into cash and increased sales. Thus, it became obvious that the company would
have problems paying its short-term liabilities.
Table 12. Comparison of the quick ratio of the three companies
b. Profitability Ratio
Operating margin is a profit ratio that compares operating income to sales. It is a

type of profit margin used to assess executive management’s effectiveness in
generating revenue and maintaining profitability. The operational margin is also known
as the operating profit margin, the operating income margin, the EBIT margin, and the
return on sales. The industry average for operating margin is 22.84%. A higher
operating margin indicates that the company is earning enough money from business
operations to pay for all of the associated costs involved in maintaining that business.
Megaworld Corporation had 29.44%, 62.61%, 37.67%, 39.54%, and 39.75% for
the years 2021, 2020, 2019, 2018, and 2017, respectively. Megaworld's operating
margin ratio is much higher than the industry average, which is a good indication that
the company is effectively generating revenue from its operations. Ayala Land Inc. had
an operating margin of 18.51%, 15.18%, 29.88%, 27.35%, and 27.14% for the years
2021, 2020, 2019, 2018, and 2017, respectively. For the years 2021 and 2020, Ayala
had an operating margin lower than the industry average, which might have indicated
potential financial vulnerability to an economic downturn or financial distress if a trend
developed. SM Prime Holdings had 33.69%, 27.43%, 41.55%, 61.15%, and 55.31%
for the years 2021, 2020, 2019, 2018, and 2017, respectively. SM Prime Holdings had
an operating margin much higher than the industry average, which is good and indicates
the efficiency and stability of the company.
Table 13. Operating Margin Comparison
Profit margin is a measure of how profitable your company is. It is represented as

a percentage and represents how much of every dollar in sales or services your firm retains
as profit. Profit margin is calculated by dividing the company's net income by its net sales
or revenue. For the real estate industry, the industry average for profit margins is 17.57%.
Having a high profit margin will mean that the company is able to effectively control its
costs and/or provide goods or services at a price that is significantly higher than its costs.
Megaworld Corporation had a profit margin higher than the industry average in all
5 years of operation. with having 26.47%, 22.71%, 26.62%, 28.03%, and 27.8%, starting
from 2021 to 2017, respectively. In 2021 and 2020, Ayala Land Inc. had a lower profit
margin than the industry average, with 11.64% and 9.16%, respectively.while it has greater
than the industry average for the years 2019, 2018, and 2017, with a ratio of 19.88%,
17.69%, and 18.07%, respectively. SM Prime Holdings, just like Megaworld Corporation,
had a higher profit margin than the industry average for the past five years of operation.
For the years 2021, 2020, 2019, 2018, and 2017, they had 26.47%, 21.99%, 32.19%,
30.91%, and 30.32%, respectively.
Table 14. Profit Margin Comparison
Return on assets is a profit ratio that shows how much profit a company can make
from its assets. Return on assets (ROA) measures how efficient a company's management
is at generating profit from its total assets on its balance sheet. In the real estate industry,
the industry average for the return on asset ratio is 3.33%. A higher ratio than the industry
average means that the company is more efficient and productive at managing its balance
sheet to generate profits, while a lower ROA indicates there is room for improvement.
Megaworld Corporation had a relatively low ROA during the year 2020, with only
2.63%. This could be one of the consequences of the pandemic. the pandemic. While for
the years 2021, 2019, 2018, and 2017, they had 3.38%, 5.13%, 4.68%, and 4.23%,In 2020
and 2021, Ayala Land Inc.'s ROA was 1.21% and 1.64%, respectively. 21% and 1.64%.
While they hand aan increase and relatively high ratio during the years 22017, 2018, and
2017 accumulating 4.65%, 4.37%, and 4.32%. SM Prime Holdings also had the same
situation with Ayala Land Inc. For the years 2021 and 2020, they had a lower ROA, and
for the years 2019, 2018, and 2017, it was 5.71%, 5.50%, and 5.31%.
Table 15. Return on Asset Comparison
The purpose of BEP is to determine how effectively a firm uses its assets to generate
income. The BEP ratio is simply EBIT divided by total assets. A firm uses its assets to
generate income. The BEP ratio is simply EBIT divided by total assets. The higher the BEP
ratio, the more effective a company is at generating income from its assets. The industry
had an average earnings power of 4.5.
Megaworld Corporation's 2021 BEP was 3.75 percent, which was lower than the
industry average. In the years 2020, 2019, 2018, and 2017, they had 7.26%, 7.26%, 6.6%,
and 6.53%, respectively. In 2021 and 2020, Ayala Land Inc. had a lower BEP of 2.61%
and 2.01%, respectively. while having higher BEP than the average in the years 2019, 2018,
and 2017 of 6.98%, 6.76%, and 6.49%, respectively. SM Prime Holdings had a lower BEP
than the average during 2021 and 2020, at 3.45%. They possessed and 3.11%, respectively.
While they had high BEP during 2019, 2018, and 2017 at 7.37%, 10.88%, and 9.69%,
Table 16. Basic Earnings Power Comparison
Return on equity (ROE) is the measure of a company's net income divided by its
shareholders' equity. ROE is a gauge of a corporation's profitability and how efficiently it
generates those profits. The higher the ROE, the better a company is at converting its equity
financing into profits. The industry of real estate has a 9.2% industry average when it comes
to return on equity.
Megaworld Corporation had a low ROE during the years 2021, 2020, and 2017,
with 6.76%, 5.33%, and 8.15%, respectively. While they had a higher ratio than the
industry for the years 2018 and 2019, with 9.21% and 10.05%, respectively, Ayala Land
Inc. had a relatively lower ROE than the industry average during the years 2021 and 2020,
with 5.26% and 3.92%. While the ROE in 2019 is higher than in 2018, 2017, and 2018, at
15.72%, 15.61%, and 14.65%, respectively, SM Prime Holdings' ROE was also lower than
the industry average in 2021 and 2019, at 6.43% and 5.82%, respectively. For the years
2019, 2018, and 2017, they have a higher return on equity ratio with 12.66%, 11.69%, and
12.05%, respectively.
Table 17. Return on Equity Comparison
c. Asset Management Ratio
Accounts Receivable Turnover measures how frequently a company collects its

typical accounts receivable on a yearly basis. The ratio is used to assess a company's
capacity to extend credit to consumers effectively and timely recover payments from them.
Higher accounts receivable turnover ratios are preferable, and businesses should aim for
ratios of at least 1.0 in order to guarantee that they collect the whole amount of typical
accounts receivable at least once every period.
In the course of 5 years, Megaworld was able to maintain account receivable ratios
that are within the standards of what is considered preferable in the business, which means
that there is efficient collection of accounts receivable and that this rate is still being
improved as it becomes lower through the years. Ayala Land Inc. is capable of turning over
their inventory as the amount of time spent is typically less than a day. However, in 2017
and 2018, the company took more than one day but was still considered to have a quick
turnover.Over the course of five years, the collection of their accounts receivable has
shortened, which means that there have been improvements in their account receivable
turnover. SM Prime Holdings is able to turn over its accounts receivable fairly quickly,
based on the results of the calculations over the last five years.Although not as much as 1,
it is still considered fast but not within the industry average. Their accounts receivable
turnover, though, had improved throughout the years as the time it took became less, until
2021, when it achieved its fastest average inventory turnover.
Table 18. Accounts Receivable Turnover Comparison
By dividing the cost of items sold by the average inventory value during the time
period, inventory turnover calculates how effectively a business uses its inventory. A
relatively high inventory turnover ratio may point to understocking that is costing the
business sales, whereas a low inventory turnover ratio may be the result of bulk purchases
that are saving the business money or preparations for a product launch rather than
ineffective inventory management.
For the past 5 years, Megaworld's inventory turnover can be said to be high.
However, in 2020, it decreased from 0.22 to 0.13, which indicates that there are problems
with their profitability. This low turnover can be attributed to the fact that COVID-19
changed the dynamics of livelihood and earnings, making it also hard for a big company
like Megaworld Corporation to sell its inventories.In 2021, the inventory turnover ratio
went up by 0.1, which means that there are improvements in their disposal of inventory
and is a good sign of recovery from the low turnover during 2020.
Ayala Land has had a high inventory turnover rate during the last five years.
However, it fell from 0.87 to 0.45 in 2020, indicating that their profitability and disposal
of inventory may be experiencing issues. The COVID-19 outbreak, which almost
completely transformed everyone's way of life and altered the dynamics of livelihood and
incomes, is to blame for the low turnover rate. Due to this, it was challenging for big
businesses like Ayala Land Incorporation to sell their inventory. The inventory turnover
ratio grew by 0.4 in 2021, which shows advancements in the way inventory is disposed of
and is a positive indicator after the subpar turnover in 2020.
Based on the results from the calculated data, it could be observed that the highest
inventory turnover that SM Prime experienced during the 5 years was in the year 2018 at
1.67; the 3 years following, though, showed a steady decline until it hit 0.88 in 2021. This
indicates that there were problems with their inventory turnover even before the pandemic
that affected both Ayala Land Incorporation and Megaworld Corporation. This means that
without the factor of a pandemic happening, the company is already suffering from low
inventory turnover as they struggle to sell products in a timely manner.
Table 19. Inventory Turnover Comparison
Days sales outstanding (DSO) measures the typical time it takes a business to
collect payment for a sale. A high DSO score indicates that a business is facing payment
delays. A cash flow issue may result from such a situation. A low DSO suggests that the
business is receiving money rapidly. It would be beneficial to reinvest that money in the
company. In general, a DSO of less than 45 days is regarded as low.
The results of their DSO ratio for the past five years are fluctuating between an
increase and decrease which means that their speed of collection of payments are unstable.
The company also did not reach the industry average of what is considered as a fast.
From 2020-2021 however, a drop was observed as it went from 386 days to 353 days. The
company's Days sales outstanding (DSO) throughout the five years increased instead of
diminished. From 374 days (2017) to a big leap 467 (2020) and a subsequent drop to 418
(2021), these shifts in amounts showes that there are improvements and various failures in
the management of the collection of payment. Ayala Land Incorporation failed to be within
the company's standard and is rather slow in collecting payment for it takes them several
hundred days to do so. The company's days of sales outstanding is not within the industry's
standard of 45 days. Throughout the 5 years, the company experienced continuous increase
in their DSO indicating that there are problems in the collection of cash and delays are
evident. Only a subtle drop was observed in 2019 but is still negligible as the following
years the days of sales outstanding of the company continued to increase.
Table 20. Days Sales Outstanding Comparison
The fixed asset turnover ratio demonstrates how effectively a business generates sales
using its current fixed assets. If the ratio is higher, management is likely making better use
of its fixed assets. A company's capacity to produce reliable profits or cash flows is
unaffected by a high FAT ratio. A net of accumulated depreciation is applied to the fixed
asset balance. A higher fixed asset turnover ratio shows that a corporation has efficiently
utilized its fixed asset investments to drive sales. There is no precise metric or range that
determines how effectively a corporation has generated revenue from fixed-asset
investments, but a higher turnover ratio is suggestive of more efficiency in managing such
investments. Because of this, analysts and investors should compare a company's most
current ratio to both its previous ratios and the ratio values of peers, as well as the average
ratios for the industry.
The total amount of time required to convert all of the inventory into sales is known as the
inventory conversion period. In other words, it can be explained as a correlation between
the inventory turnover ratio and the overall number of days in the financial period. This is
determined as the total amount of time between buying inventory as a whole and selling it
all. When evaluating the inventory conversion period, it is important to keep in mind that
a shorter duration is preferable for the organization or business because it means that the
total inventory is converted into sales more quickly and there is less risk of overstocking
and product obsolescence. The delayed cash conversion cycle and money block in
inventory are based on the high conversion period. On the other hand, a shorter conversion
duration results in fewer cash conversion cycles and unneeded money blockages. The
typical stock investment amount is taken into account.
Table 21. Fixed asset Turnover Comparison
The total amount of time required to convert all of the inventory into sales is known
as the inventory conversion period. In other words, it can be explained as a correlation
between the inventory turnover ratio and the overall number of days in the financial period.
This is determined as the total amount of time between buying inventory as a whole and
selling it all. When evaluating the inventory conversion period, it is important to keep in
mind that a shorter duration is preferable for the organization or business because it means
that the total inventory is converted into sales more quickly and there is less risk of
overstocking and product obsolescence. The delayed cash conversion cycle and money
block in inventory are based on the high conversion period. On the other hand, a shorter
conversion duration results in fewer cash conversion cycles and unneeded money
blockages. The typical stock investment amount is taken into account.
Less time is needed for inventory to be converted into sales, which means there is
less possibility of obsolescence and less money spent on overstocking. The delayed cash
conversion cycle and block of money in inventory are determined by the high conversion
period. A shorter conversion duration, on the other hand, results in fewer cash conversion
cycles and unneeded money blockages. It takes into account the typical stock investment
amount.
It is clear from the data collected throughout the course of Megaworld's five years
of operation that 2020 saw the greatest increase in the inventory conversion phase. It
increased by 1,226 days, or an exponential growth, from 1,718 to 2,944 days. As a result,
the company will experience difficulties converting its inventory, which will cause delays
in the conversion of its cash and obstacles in the disposal of its inventory. It can be seen
that, over the course of Ayala Land's five years of existence, 2020 was the year in which
the inventory conversion period soared the highest. When it went from 418 to 809 days, an
increase of 392 days, it saw a significant expansion. This suggests that the business is
having difficulties converting its inventory, which will slow down the conversion of its
cash and impede the sale of its inventory. The SM Prime Holdings statistics showed an
increase in the time it takes to convert inventories. Additionally noteworthy is the fact that
the business was able to significantly reduce its inventory conversion rate in 2018
compared to the year before, 2017. In terms of the company's other operational time, the
expansion of their inventory conversion period caused a slow conversion of inventory to
cash, which could cause a delay and a block of money in inventory.
Table 22. Inventory Conversion Period comparison
d. Debt Management Ratio
A debt ratio calculates the amount of leverage a business is using by comparing its
total debt to its total assets. Capital-intensive enterprises typically have substantially
greater debt ratios than others since this ratio varies greatly among industries. By dividing
total debt by total assets, one can determine a company's debt ratio. A corporation has more
debt than assets if its debt ratio is greater than 1.0, or 100%, whereas a debt ratio of less
than 100% shows that a company has more assets than debt. Total liabilities divided by
total assets is how some sources define the debt ratio.
The percentage of total funds received from creditors is shown by the debt ratio.
Because there is more room for creditor damages in the event that the company goes
bankrupt, creditors want a low debt ratio. The lower the debt ratio, the more financially
stable the corporation. A corporation will have less financial flexibility if its debt ratio is
high.
From the calculations done, it can be seen that the company experienced a sharp
increase in its debt ratio in 2020, where more than 50% of their assets are used to cover
their debts. As compared to the 48% and 49% debt ratios from the past years, the 2%
increase from 49% to 51% shows an indication that there are more debts that the company
acquired. In the year 2021, the debt ratio of Megaworld Corporation decreased by 1%.
Hence, 50% of their assets are required to cover their debts. Although still far from the
ideal lower debt ratio that most creditors want, the decrease of 15 is still a strong indication
of the company's recovery.
The debt ratio of Ayala Land Inc. showed an increase in 2018, which means that
72% of the company’s assets are used to pay its outstanding debt. This is bad for the
company and causes the firm to have little to no financial flexibility. In 2019, the company
observed a decrease in its debt ratio, from 72% to 70%, and from 70% to 69% for both
2020 and 2021. This indicates an improvement in the corporation’s management as their
debt ratio went down by 1%. Although this still portrays that more than 50% of the
company’s assets are used to pay its debt, the improvement is still a good sign.
It can be seen in the company's debt ratio for the past five years that there were
subtle ups and downs in their debt ratio. To compare the subsequent increase, the debt
equity from 2017 and 2020 showed an increase of 2%, which means that the company
acquired more debt and more than half of their assets were used to pay for these debts. The
high debt ratio of the company shows that they have a lot of debt and could cause a
reduction in their credit rating, mandating the company offer higher yields on bonds.
Table 23. Debt Ratio comparison of the three companies
The equity ratio displays the percentage of a company's assets that are funded by
the issuance of stock as opposed to borrowing money. The more a company has in assets
that were financed with stock as opposed to debt, the closer its ratio result is to 100%.
When compared to the company's peers or rivals in the same industry, the shareholder
equity ratio has the most meaning. The ratio of shareholders' equity to assets has a standard
or average value for each industry.
A low equity ratio is considered a sign of higher financial risk because it indicates
that the company predominantly borrowed money to buy its assets. Higher equity ratios
typically signify that a corporation effectively funded its asset requirements with little to
no debt.
The company had a consistent equity ratio of 50% and above for 4 years. In 2020,
however, the company experienced a decline of 2% and went from 51% to 49%, but still
recovered by 1% in 2021. This can be interpreted as Megaworld Corporation being a
company that prefers to fund itself with equity rather than debt. With more than 50% in
their equity ratio, this is a significant indicator that the company is stable and not
susceptible to financial risk and instability. As a company, investors will prefer Megaworld
Corporation as a subject for investment over the two previous companies.
Based on the data observed, there has been a steady increase in the company's
equity ratio for the past five years. The equity ratio increased from 30.74% to 31% in 2021,
indicating that Ayala Land Incorporation may have acquired new additional equity or
retained earnings. As a result, based on their five-year comparative balance sheet, their
retained earnings increased. Thus, it could be seen that the company kept its profits, either
keeping them as cash or investing them internally in the business. The result will be an
increase in the value of cash and other assets without an equal increase in the company's
liabilities.
Over the last five years, the company's equity ratios have increased and decreased.
However, starting from 2019 to 2021, it slowly decreased until it reached a 41% equity
ratio for 2021. It is evident that SM Prime Holdings had trouble balancing its borrowings.
This low percentage indicates that the company is in a position where there is high financial
risk. With this, SM Prime Holdings is considered a leveraged firm that pays more interest
on loans.
Table 24. Equity Ratio comparison for the three companies
A firm's total liabilities and shareholder equity are compared using the debt-to-
equity (D/E) ratio, which can be used to determine how heavily reliant a company is on
debt. D/E ratios vary by industry and are most useful for comparing a company to its closest
rivals or tracking changes in its reliance on debt over time. When comparing similar
organizations, a larger D/E ratio denotes greater risk, whereas a particularly low one can
signify that a company is not utilizing debt funding to grow. A debt-to-equity ratio of about
2 or 2.5 is regarded as favorable, though it differs by industry. For real estate, the average
d shareholder equity are compared using the debt-to-equity (D/E) ratio, which can be used
to determine how heavily reliant a company is on debt. D/E ratios vary by industry and are
most useful for comparing a company to its closest rivals or tracking changes in its reliance
on debt over time. When comparing similar organizations, a larger D/E ratio denotes
greater risk, whereas a particularly low one can signify that a company is not utilizing debt
funding to grow. A debt-to-equity ratio of about 2 or 2.5 is regarded as favorable, though
it differs by industry. For real estate, the average debt-to-equity ratio is around 2.0.
The result of the calculations for this ratio indicates that Megaworld Corporation's
debt-to-equity ratio is much lower compared to the industry standard. This means that the
company is not taking advantage of debt financing to expand. However, it is also apparent
that the company's debt-to-equity ratio increased slowly in the following years after the
low ratio of 0.93 in 2017. The subsequent increase demonstrates the company's progress
toward improving its debt-to-equity ratio.
Despite a subsequent movement in value, Ayala Land Incorporation's debt-to-

equity ratio from 2017 to 2021 is still higher than the stated average. Data analysis found
that Ayala Land Incorporation's debt-to-equity ratio is much higher than the industry
average of 2.0, indicating that the firm has a high debt-to-equity ratio. It denotes that the
entity is reliant on creditors since it lacks the cash and reserves necessary to pay its debts.
The likelihood of the entity declaring bankruptcy is substantial. New investors putting
money in is a sign. A company's ownership share as a proportion of its assets is reduced
when it is above the industry average, and the company also bears the risk of defaulting on
its debt or being unable to pay it back. which, in this case, Ayala Land Incorporation is
susceptible to.
There was an evident decrease in their debt-equity ratio from 2017 to 2018 of 1.27
to 1.19 and a steady increase from 2019 to 2021. Despite the increase in this ratio, it is still
not within the 2.0 industry standard of what is considered favorable. However, the
perceivable increase of 1.34 to 1.42 in their debt-to-equity ratio is a strong indicator that
there is improvement and that it is steadily growing towards the industry standard.
Table 25. Debt-Equity ratio comparison of the three companies

Using a company's current income, the times interest earned (TIE) ratio assesses its
capacity to service its debt. Earnings before interest and taxes (EBIT) divided by the entire
amount of bond and other debt interest payments is the calculation for a company's TIE
number. If a corporation has a higher TIE number, it suggests that after paying its debts, it
will still have money left over to invest in the company. Divided by the entire amount of
interest that is due on all outstanding debt, the TIE formula is determined. From the
standpoint of an investor or creditor, a company with a time interest earned ratio higher
than 2.5 is regarded as having an acceptable risk.
Their estimated data shows that their 5-year time interest result is lower than the
industry average. Megaworld Corporation is less strong in this area than the first two
businesses. It is clear from the ratio of 0.51x, which is less than 1, that the business will
struggle to make interest payments on its debt. Observably, the company's time-to-interest-
earnings ratio decreased before experiencing a significant rise in 2019, from 1.37x to 1.58x.
Ayala Land Incorporation did not meet the required criteria when compared to the industry
standard, which indicates that it may be challenging for the company to raise money for
operations given its low TIE ratio. SM Prime's time interest earned percentages for the
previous five years have fluctuated. More than halving that ratio from the year before,
2018, was particularly evident in 2019. The company also performs far better than what
the industry considers to be a company with an acceptable level of risk. This indicates that
even after paying off its debt, the business still has money left over and is sufficiently
powerful to protect the interests of its creditors. However, its time interest earned ratio is
extremely high as compared to the industry's average, which could be the result of the
company being overly cautious with its obligations and underutilizing the debt facilities.
Table 26. TIE ratio comparison of the three companies

e. Market Value Ratios
The profit of a corporation is divided by the number of outstanding shares of its

common stock to arrive at earnings per share (EPS). The resultant figure is used to gauge
a company's profitability. It is typical for businesses to publish EPS that has been adjusted
for unusual expenses and possible share dilution. The more profitable a corporation is
deemed to be, the greater its EPS. Because investors would pay more for a firm's shares if
they believed the company had larger earnings relative to its share price, a higher EPS
denotes more value.
Earnings per share value is calculated as net income (also known as profits or
earnings) divided by available shares. The numerator and denominator are modified in a
more complex computation to account for shares that might be produced by options,
convertible debt, or warrants. If the equation's numerator is changed to account for ongoing
processes, it becomes much more pertinent. A strong EPS will be determined by a number
of variables, including the company's most recent performance, that of its rivals, and the
forecasts of stock market analysts.
There are several unstable fluctuations in the value of earnings per share that the
Megaworld Corporation demonstrated throughout the 5 years that were observed. Like the
previous 2 companies, a sharp decline was seen in 2020, where their net income diminished
by $8,018. This can be attributed to the fact that the decline during this year resulted from
the lack of sales and transactions due to the pandemic. In 2021, the EPS ratio increased as
compared to the EPS of the previous year, indicating that, although small, a recovery from
the previous year was apparent.
A decline was found in the company's EPS ratio in 2020, but it increased in 2021.
The decline is evident in Ayala Land Incorporation's net income in 2020, which decreased
from 33,188 to 8,727. Subsequently, in the year 2021, it experienced a growth in net income
of 3,501, from 8,727 to 12,228. From the corporation's point of view, this is a good value
in EPS (amounts in millions).
Various shifts in the values of earnings per share were seen throughout the five
years that were observed. A decline was also seen in the year 2020, which could be
attributed to instances such as the pandemic affecting the sales and income the company
was able to generate. In 2021, it increased from 18,007 to 21,787, which, from the
corporation's perspective, is a good result as compared to the previous year.
Table 27. EPS comparison of the three companies
A financial valuation statistic called the market-to-book ratio, commonly known as

the price-to-book ratio, is used to assess how a company's current market value compares
to its book value. The current stock price of all outstanding shares represents the market
value (i.e., the price that the market believes the company is worth). The amount that would
remain after the company sold all of its assets and settled all of its debts is known as the
book value. The balance sheet's book value, which is equivalent to the company's net
assets, is calculated. In other words, the ratio is used to assess how a company's accessible
net assets stack up against the market value of its stock. A market-to-book ratio greater
than 1 indicates that the shares of the company are overpriced. It may be undervalued if
the ratio is less than 1. For value investors, historically, any figure below 1.0 is a good P/B,
indicating a possibly undervalued stock. Value investors, however, frequently use equities
with a P/B value below 3.0 as their benchmark.
It is inevitable that Megaworld Corporation also experienced declines and growth

due to various circumstances that factored into these changes. In the years 2019 and 2020,
the market for book value decreased, but increased in 2018 and 2021. Throughout the 5
years observed, it can be seen that the company never exceeded $1 and is considered to
have an undervalued stock that all investors are searching for.
The Ayala Land Inc. market-to-book value ratio is much higher when compared to
what is considered good in the industry's average. For the year 2017, the company incurred
a 4.2x market-to-book value, 3.4x for 2018, 3.3x for 2019, 2.7x for 2020, and 2.3x for
2021. This indicates that the shares of the company are overpriced. However, within the
set benchmark, value investors consider the 2020 and 2021 values to be ideal.
The market-to-book value ratio has changed noticeably. Changes in increase and
decrease indicated that the company's market to book value was frequently volatile. In the
year 2017 and 0.04, the company achieved a ratio that is considered an undervalued stock
and is greatly valued by investors. For the year 2020, the amount of their market to book
value took a massive leap and achieved 3.59; however, this declined to 2.19 in 2021 and
entered a period wherein its book to market value is considered good by value investors.
Table 28. Market-Book Comparison
In essence, the price-to-earnings ratio indicates the dollar amount an investor can
expect to invest in a company in order to receive $1 of that company's earnings. This is
why the P/E ratio, also known as the PE ratio, is a simple way to assess whether a stock is
overvalued or undervalued and is the most widely used valuation measure. The Realty
Income PE ratio is currently at 16.30 as the price multiple, which shows how much
investors are willing to pay per dollar of earnings.
Megaworld Corporation has had a relatively high price-to-earnings ratio, with

74.76, 63.10, 25.91, 32.51, and 31.19 for the years of operation 2021, 2020, 2019, 2018,
and 2017, respectively. Ayala Land Inc., on the other hand, had a relatively high price-to-
earnings ratio when compared to the industry average, with 44.22, 69.32, 20.22, 21.71, and
20.65, respectively, with 2020 having the highest price-to-earnings ratio with 69.32. SM
Prime Holdings also had a high price-to-earnings ratio during 2020, with 61.7, followed by
33.4 for 2018 and 31.9 for both 2021 and 2019. However, the company had a low price to
earnings ratio of $11.0 in 2017. This means that in 2017, SM Prime Holdings is
undervalued because its stock prices trade lower relative to its fundamentals. This
mispricing will be a great bargain and will prompt investors to buy the stock before the
market corrects it.
Table 29. Price-Earnings Ratio Comparison
IV. CONCLUSION AND RECOMMENDATION
In managing a business, one must have the skill to analyze and understand data in
order to achieve goals and make a profit. Analyzing and interpreting data is one of the core
keys to fostering growth for the company. Using knowledge, one can deliberately use what
they have analyzed for the advantage of the company and bring it to new heights.
A range of indicators known as asset management ratios demonstrate how a

business has utilized or managed its assets to produce revenues. Stakeholders in the
company can assess the efficiency and efficacy of its asset management by looking at these
ratios. They are sometimes known as turnover or efficiency ratios as a result. As the name
implies, these ratios often solely take a company's assets and revenues into account. There
are varying ratios for diverse assets because businesses have a wide variety of asset kinds
and classes. Inventory turnover, accounts payable turnover, days sales outstanding, days
inventory outstanding, fixed asset turnover, receivable turnover ratios, and cash conversion
cycle are a few of the most commonly utilized asset management ratios.
A company's liquidity is a crucial component. A company needs liquidity to fulfill

its immediate obligations. Liquidity ratios are a gauge of a company's capacity to settle its
short-term obligations. A company's ability to quickly convert its assets and use them to
pay its obligations is determined by its liquidity ratios. The ability to pay off debts and stay
current on payments becomes easier as the ratio increases. Before making quick loans to
the company, creditors must first evaluate this crucial factor. A company's creditworthiness
and credit rating are both impacted by its inability to pay its bills in a timely manner.
For potential investors and current creditors, a company that can turn a profit rather
than operating at a loss is encouraging. In other words, the operating margin of the business
generates profit for shareholders and ongoing loan servicing for lenders. In contrast to a
smaller ratio, which indicates a lower profit margin, the larger the margin, the less financial
risk a corporation faces. If the profit margin keeps rising over time, profitability is
increasing. This could be explained by effective operating cost management or by other
variables that affect revenue build-ups, like higher prices, better marketing, and rising
client demand.
V. APPENDICES
a. BALANCE SHEETS
Megaworld Corporation
Consolidated Balance Sheet
December 2021, 2020, 2019, 2018 and 2017
(Amounts in Million)
2021 2020 2019 2018 2017

ASSETS
Current Assets:
Cash and Short-Term Investments 43,970.54 40,224.04 23,167.03 17,736.04 16,430.13
Cash 10,751.42 7,042.55 6,937.96 5,225.37 7,629.34
Cash & Equivalents 33,124.21 16,166.91 12,317.72 8,748.41
Short Term Investments 57.29 62.16 192.94 52.38
Total Receivables - Net 45,992.09 45,079.32 39,931.65 38,288.52
Accounts Receivables - Trade, Net 36,507.38 35,928.31 36,352.12 33,991.70 31,361.85
Total Inventory 127,974.68 117,794.26 115,114.92 109,612.32 93,800.30
Prepaid Expenses 6,396.60 6,410.26 6,949.50 7,239.38 6,717.84
Other Current Assets 384.68 252.95 195.39 627.99 249.84
Total Current Assets 227,834.77 210,673.61 190,506.16 175,147.39 155,486.63
Property Plant & Equipment - Net 6,530.89 6,719.60 6,702.25 6,170.05 5,170.45
Property Plant & Equipment - Gross 10,728.87 10,322.76 9,692.88 8,668.91 7,251.92
Accumulated Depreciation -4,197.98 -3,603.16 -2,990.63 -2,498.86 -2,081.47
Goodwill - Net 1,385.12 1,385.12 1,385.12 1,385.12 1,385.12
Intangibles - Net 90.55 97.51 104.48 111 44 91.74
Long-Term Investments' 128,270.09 122,600.47 118,900.66 109,593.90 110,283.47
Note Receivable - Long-Term 20,441.39 18,376.70 19,583.21 18,354.03 19,756.05
Other Long-Term Assets 13,424.44 15,837.40 12,451.19 11,528.73 18,359.34
Other Assets - - - - -
Total Assets 397,977.25 375,690.42 349,633.07 322,290.67 310,532.80
LIABILITIES
Current Liabilities:
Accounts Payable 14,438.71 13,965.12 11,853.78 10,232.10 11,726.49
Payable/Accrued - - - 15,027.12 13,822.63
Accrued Expenses 673.95 789.49 452.89 489.14 536.70
Notes Payable/Short-Term Debt - - - - -
Current Port. of LT Debt/ Capital Leases 12,757.73 21,093.47 14,613.16 12,019.70 11,239.83
Other Current Liabilities 34,037.63 36,872.07 30,624.70 24,663.24 20,229.46
Total Current Liabilities 61,908.03 72,720.15 57,544.52 47,404.19 57,018.41
Total Long-Term Debt 81,463.59 65,606.76 62,423.99 64,477.74 67,864.32
Long-Term Debt 80,946.21 65,074.86 61,881.02 64,477.74 67,340.51
Capital Lease Obligations 517.38 517.38 531.90 - 523.81
Deferred Income Tax 11,541.79 11,563.43 10,729.27 8,951.15 7,572.63
Minority Interest 30,865.12 27,066.25 26,401.44 24,885.53 17,902.71
Other Liabilities 13,359.86 13,269.60 14,069.78 12,717.16 9,870.53
Total Liabilities 199,138.38 190,226.19 171,168.99 158,435.78 149,228.60
Redeemable Preferred Stock - - - -
Preferred Stock - Nonredeemable, Net - 60.00 60.00 60.00 60.00
Common Stock 32,430.87 32,430.87 32,430.87 32,430.87 32,430.87
Additional Paid-In Capital 16,660.84 16,660.84 16,658.94 16,657.99 16,657.99
Retained Earnings (Accumulated Deficit) 143,903.32 131,464.17 123,270.89 108,247.57 91,603.35
Treasury Stock - Common -1,784.03 -1,627.04 -633.27 -633.72 -633.72
ESOP Debt Guarantee - - - - -
Unrealized Gain (Loss) 7,627.87 -3,702.51 -3,118.41 -2,705.27 8,490.00
Other Equity - 10,237.90 9,855.07 9,857.46 12,061.99
Total Equity 198,838.87 185,464.23 178,464.09 163,854.89 161,304.20
Total Liabilities & Shareholder's Equity 397,977.25 375,690.42 349,633.07 322,290.67 310,532.80
Total Common Shares Outstanding 31,857.07 31,899.31 32,239.95 32,239.45 32,239.45
Total Preferred Shares Outstanding 6,000.00 6,000.00 6,000.00 6,000.00 6,000.00
Ayala Land Inc.
December 2021, 2020, 2019, 2018 and 2017
2021 2020 2019 2018 2017

ASSETS
Current Assets:
Cash 11,812.40 13,742.79 14,628.25 14,518.13 52,194.00
Cash & Equivalents 2,159.04 3,294.56 5,784.79 9,478.44 10,838.34
Short Term Investments 1,026.44 1,323.29 1,102.59 3,561.62 4,739.73
Total Receivables - Net 120,582.05 122,043.39 124,265.84 144,068.71 143,560.34
Total Inventory 148,156.73 146,743.59 120,287.69 104,371.61 62,192.38
Other Current Assets 1,999.85 2,228.03 1,791.59 2,856.29 9,861.76
Property Plant & Equipment - Net 53,934.59 56,455.14 56,626.83 35,749.20 28,524.19
Property Plant & Equipment - Gross 82,503.26 80,723.76 78,673.27 49,458.13 40,617.92
Accumulated Depreciation -28,568.67 -24,268.62 -22,046.45 -13,708.93 12,093.84
Goodwill - Net - - - - -
Intangibles - Net 37.68 49.79 63.31 49.16 48.12
Total Assets 745,464.36 721,494.37 713,923.28 668,820.48 585,394.27
LIABILITIES
Payable/Accrued - - - - -
Accrued Expenses 30,295.75 33,260.03 40,133.70 42,322.39 68,620.17
Notes Payable/Short-Term Debt 16,782.50 9,131.33 18,032.83 14,386.72 17,644.40
Total Long-Term Debt
Long-Term Debt 180,140.24 184,087.19 175,813.35 149,446.95 150,168.63
Capital Lease Obligations 17,237.99 17,289.04 16,738.85 - -
Redeemable Preferred Stock - - - - -
Preferred Stock - Nonredeemable, Net 1,306.65 1,306.65 1,306.65 1,306.65 1,306.65
Common Stock 15,381.19 14,760.18 14,745.33 14,734.88 14,725.00
Treasury Stock - Common -16,894.38 -1,260.78 -1,104.35 - -
Unrealized Gain (Loss) -880.89 -748.22 -457.36 -454.14 41.00
Other Equity 1,517.94 -65.45 -7,143.23 -6,752.45 7,253.90
Total Equity 232,620.77 222,539.86 211,050.02 187,299.85 172,756.55
Total Preferred Shares Outstanding 13,066.50 13,066.50 13,066.50 13,066.50 13,066.50
SM Prime Holdings
December 2021, 2020, 2019, 2018 and 2017
2021 2020 2019 2018 2017

ASSETS
Current Assets:
Cash 15,297.18 12,484.61 4,564.40 3,887.60 2,170.10
Cash & Equivalents - - - - -
Short Term Investments 25,025.71 18,745.15 30,694.64 35,518.18 42,201.43
Total Receivables - Net 73,019.97 58,944.93 53,636.92 35,229.45 34,277.28
Total Inventory 56,934.00 44,099.08 44,316.44 37,937.94 34,705.32
Other Current Assets 1,274.74 254.31 166.73 604.68 7,340.00
Property Plant & Equipment - Net 372.28 1,311.21 1,383.32 1,419.11 1,493.43
Property Plant & Equipment - Gross - - - - -
Accumulated Depreciation - - - - -
Goodwill - Net - - - - -
Intangibles - Net - - - - -
Total Assets 804,403.28 722,358.93 667,279.67 585,394.27 518,984.42
LIABILITIES
Payable/Accrued - - - - -
Accrued Expenses 16,174.22 12,507.55 11,716.54 11,675.38 10,514.87
Notes Payable/Short-Term Debt 6,487.43 10,900.00 100.00 39.40 44.00
Total Long-Term Debt 264,969.22 218,830.65 214,333.05 197,682.26 167,509.48
Long-Term Debt 264,969.22 218,830.65 214,333.05 197,682.26 167,509.48
Capital Lease Obligations - - - - -
Redeemable Preferred Stock - - - - -
Preferred Stock - Nonredeemable, Net - - - - -
Common Stock 33,166.30 33,166.30 33,166.30 33,166.30 33,166.30
Treasury Stock - Common -2,984.70 -2,984.70 -2,984.70 -2,984.70 -2,984.70
Unrealized Gain (Loss) 14,708.37 13,460.67 17,840.99 19,084.60 16,102.41
Other Equity 2,101.66 -832.39 -897.28 765.42 516.69
Total Equity 332,919.20 309,284.07 300,916.17 275,302.99 228,788.82
Total Preferred Shares Outstanding - - - - -
b. INCOME STATEMENTS
Megaworld Corporation
Consolidated Income Statement
December 2021, 2020, 2019, 2018 and 2017
2021 2020 2019 2018 2017

Sales 46,378.00 39,273.00 61,962.00 53,820.00 47,281.00
Cost of Goods sold (Include. D&A) 21,422.00 17,851.00 27,473.00 23,604.00 20,628.00
COGS excluding D&A 17,961.00 14,754.00 24,761.00 21,342.00 18,797.00
Depreciation 3,461.00 3,098.00 2,712.00 2,262.00 1,824.00
Amortization - - - - 7.00
Gross Income 24,956.00 21,422.00 34,489.00 30,216.00 26,653.00
Selling/General/Admin. Expenses 8,183.00 7,563.00 10,162.00 8,166.00 7,087.00

Other Operating Expenses 1,192.00 1,059.00 1,011.00 772.00 770.00
Total Operating Expenses 9,375.00 8,622.00 11,173.00 8,938.00 7,857.00
EBIT 15,581.00 12,801.00 23,316.00 21,278.00 18,796.00
Nonoperating Income/Expenses -624.00 843.00 954.00 -239.00 -1,084.00
Nonoperating Interest Income 2,105.00 2,004.00 2,329.00 1,768.00 1,493.00
Interest Expenses 1,942.00 1,641.00 1,513.00 1,310.00 1,555.00
Income Before Tax 15,120.00 12,321.00 23,178.00 21,975.00 19,818.00
Income Tax 565.00 3,348.00 6,082.00 5,544.00 4,063.00
Income Tax - Current Domestic 699.00 2,799.00 3,698.00 2,540.00 2,800.00
Income Tax - Deferred Domestic -134.00 549.00 2,384.00 3,004.00 1,264.00
Equity In Affiliates -177.00 -70.00 -59.00 92.00 -
Other After-Tax Income/Expense -152.00 -535.00 -563.00 -290.00 -
Consolidated Net Income 14,226.00 10,053.00 18,733.00 15,709.00 13,704.00
Minority Interest Expense 944.00 703.00 1,365.00 625.00 561.00
Net Income 13,283.00 9,351.00 17,369.00 15,084.00 13,143.00
Preferred Dividends 1.00 1.00 1.00 1.00 1.00
Net Income Available to Common 13,282.00 9,350.00 17,368.00 15,084.00 13,142.00
Basic Earnings Per Share 0.42 0.30 0.55 0.48 0.41
Basic Shares Outstanding 31,448.00 31,662.00 31,820.00 31,819.00 31,819.00
Diluted Earnings Per Share 0.42 0.29 0.54 0.48 0.41
Diluted Shares Outstanding 31,545.00 31,763.00 31,978.00 31,962.00 31,956.00
EBITDA 19,041.00 15,899.00 26,028.00 23,540.00 20,627.00
Ayala Land Inc.

December 2021, 2020, 2019, 2018 and 2017
2021 2020 2019 2018 2017

Sales 105,068.00 95,294.00 166,898.00 165,291.00 140,001.00
Expenses:
Depreciation 8,900.00 9,573.00 8,875.00 5,935.00 5,001.00
Amortization - - - - -
Other Operating Expenses 1,007.00 747.00 301.00 259.00 -126.00
Other Expenses 45,475.00 35,300.00 74,503.00 86,191.00 75,491.00
Total Expenses 72,547.00 66,185.00 104,989.00 110,587.00 94,654.00
Operating Income 32,521.00 29,110.00 61,909.00 54,704.00 45,347.00
Nonoperating Income/Expenses -1,857.00 -1,672.00 155.00 790.00 810.00
Nonoperating Interest Income 126.00 369.00 889.00 - -
Miscellaneous Nonoperating Expense -1,984.00 -2,041.00 -734.00 41.00 -55.00
Unusual Expenses 181.00 225.00 - -65.00 36.00
Income Tax 4,628.00 4,059.00 13,315.00 11,984.00 9,825.00
Income Tax - Current Domestic 5,985.00 4,688.00 12,455.00 13,391.00 11,960.00
Income Tax - Deferred Domestic -1,356.00 -629.00 860.00 -1,406.00 -2,135.00
Equity In Affiliates 843.00 587.00 966.00 - -
Minority Interest Expense 3,431.00 2,267.00 4,327.00 3,976.00 2,861.00
Net Income 12,228.00 8,727.00 33,188.00 29,241.00 25,305.00
Net Income After Extraordinaries 12,228.00 8,727.00 33,188.00 29,241.00 25,305.00
Preferred Dividends 62.00 62.00 62.00 62.00 62.00
SM PRIME Holdings
December 2021, 2020, 2019, 2018 and 2017
2021 2020 2019 2018 2017

Sales 82,315.00 81,899.00 118,311.00 104,081.00 90,922.00
Expenses:
Depreciation 10,817.00 10,342.00 10,825.00 9,655.00 -
Amortization - - - - -
Other Operating Expenses 5,142.00 5,083.00 4,820.00 4,790.00 4,406.00
Other Expenses 8,401.00 12,013.00 14,693.00 20,600.00 20,855.00
Total Expenses 49,901.00 52,825.00 61,619.00 63,664.00 50,293.00
Operating Income 32,415.00 29,074.00 56,692.00 40,417.00 40,629.00
Nonoperating Income/Expenses 3,663.00 5,110.00 1,597.00 1,049.00 1,163.00
Nonoperating Interest Income 839.00 1,010.00 1,746.00 1,416.00 844.00
Miscellaneous Nonoperating Expense 2,824.00 4,100.00 -149.00 -367.00 319.00
Unusual Expenses -1,962.00 2,801.00 -22.00 -500.00 -13.00
Income Tax 5,822.00 4,324.00 10,373.00 9,055.00 7,823.00
Income Tax - Current Domestic 2,817.00 1,761.00 9,282.00 8,534.00 7,532.00
Income Tax - Deferred Domestic 3,005.00 2,563.00 1,091.00 521.00 292.00
Minority Interest Expense 125.00 133.00 703.00 738.00 551.00
Net Income 21,787.00 18,007.00 38,086.00 32,173.00 27,574.00
Net Income After Extraordinaries 21,787.00 18,007.00 38,086.00 32,173.00 27,574.00
c. FINANCIAL RATIOS SOLUTIONS

d. Liquidity Ratios
AYALA LAND INC.
2021 2020 2019 2018 2017
Current Ratio
Current assets 328,552.95 324,271.10 295,434.25 302,829.90 268,391.32

Current liabilities 208,224.21 199,729.31 226,583.52 240,784.53 191,558.64
1.58 1.62 1.3 1.26 1.4
Quick Ratio
Current assets- 328552.95 - 324271.1- 295434.25- 302829.9- 268,391.32-

inventories 148,156.73 146,7436.59 120,287.69 104,371.61 62,192.38
0.87 0.89 0.77 0.82 1.08
SM PRIME HOLDINGS
2021 2020 2019 2018 2017
Current Ratio
Current assets 195,664.77 157,074.98 158,327.61 127,790.26 186,128,89

1.39 1.16 1.6 2.01 2.23
Quick Ratio
Current assets- 195664.77 - 157074.98- 158,327.61- 127,790.26- 186,128,89 -

inventories 56,934.00 44,090.08 44,316.44 37,937.94 34,705.32
0.98 0.83 1.13 1.58 1.81
2021 2020 2019 2018 2017
Current Ratio
Current assets 227,835 210,673.61 190,506.16 175,147.39 155,486.63

2.98 2.9 3.31 3.69 2.73
Quick Ratio
Current assets- 227834.77- 210673.61- 190506.16- 175,147.39- 155,486.63-

inventories 127,974.68 117,794.26 115,114.92 109,612.32 93,800.30
1.61 1.28 1.31 1.38 1.08
e. Profitability Ratios
AYALA LAND INC.
2021 2020 2019 2018 2017
Operating Margin
EBIT 19,445 14,467.00 49,864.00 45,201 37,991

Sales 105,068 95,294.00 166,898.00 165,291.00 140,001
18.51% 15.18% 29.88% 27.35% 27.14%
Profit Margin
Net Income 12,228 8,727.00 33,188.00 29,241 25,305

Sales 105,068 95,294.00 166,898.00 165,291.00 140,001
11.64% 9.16% 19.88% 17.69% 18.07%
Return on Equity
Net Income 12,228 8,727.00 33,188.00 29,241 25,305

Total Equity 232,621 222,539.86 211,150.02 187,299.85 172,756.55
5.26% 3.92% 15.72% 15.61% 14.65%
Basic Earnings Power
EBIT 19,445 14,467.00 49,864.00 45,201 37,991

Total assets 745,464.36 721,494.37 713,923.28 668,820.48 585,394.27
2.61% 2.01% 6.98% 6.76% 6.49%
Return on Assets
Net Income 12,228 8,727.00 33,188.00 29,241 25,305

Total Assets 745,464.36 721,494.37 713,923.28 668,820.48 585,394.27
1.64% 1.21% 4.65% 4.37% 4.32%
SM PRIME HOLDINGS
2021 2020 2019 2018 2017
Operating Margin
EBIT 27,734 22,464.00 49,162.00 63,664.00 50,293.00

Sales 82,315 81,899.00 118,311.00 104,081.00 90,922.00
33.69% 27.43% 41.55% 61.15% 55.31%
Profit Margin
Net Income 21,787 18,007.00 38,086.00 32,173.00 27,574.00

Sales 82,315 81,899.00 118,311.00 104,081.00 90,922.00
26.47% 21.99% 32.19% 30.91% 30.32%
Return on Equity
Net Income 21,787 18,007.00 38,086.00 32,173.00 27,574.00

Total Equity 338,919 309,284.07 300,916.17 275,302.99 228,788.82
6.43% 5.82% 12.66% 11.69% 12.05%
EBIT 27,734 22,464.00 49,162.00 63,664.00 50,293.00

Total assets 804,403.28 722,358.93 667,279.67 585,394.27 518,924.42
3.45% 3.11% 7.37% 10.88% 9.69%
Return on Assets
Net Income 21,787 18,007.00 38,086.00 32,173.00 27,574.00

Total Assets 804,403.28 722,358.93 667,279.67 585,394.27 518,924.42
2.71% 2.49% 5.71% 5.50% 5.31%
2021 2020 2019 2018 2017
Operating Margin
EBIT 14,943.31 27,263.81 25,377.69 21,278.00 18,796.00

Sales 50,754 43,540.88 67,371.42 53,820.00 47,281.00
29.44% 62.61% 37.67% 39.54% 39.75%
Profit Margin
Net Income 13,434.47 9,885.99 17,931.42 15,084.00 13,143.00

Sales 50,754 43,540.88 67,371.42 53,820.00 47,281.00
26.47% 22.71% 26.62% 28.03% 27.80%
Return on Equity
Net Income 13,434.47 9,885.99 17,931.42 15,084.00 13,143.00

Total Equity 198,839 185,464.23 178,464.09 163,854.89 161,304.20
6.76% 5.33% 10.05% 9.21% 8.15%
EBIT 14,943.31 27.263.81 25,377.69 21,278.00 18,796.00

Total assets 397,977.25 375,690.42 349,633.07 322,290.67 310,532.80
3.75% 7.26% 7.26% 6.60% 6.53%
Return on Assets
Net Income 13,434.47 9,885.99 17,931.42 15,084.00 13,143.00

Total Assets 397,977.25 375,690.42 349,633.07 322,290.67 310,532.80
3.38% 2.63% 5.13% 4.68% 4.23%
f. Asset Management Ratios

AYALA LAND INC.
2021 2020 2019 2018 2017
Accounts Receivable Turnover
Sales 105,068 95,294.00 166,898.00 165,291.00 140,001

Ave. Accounts receivable 120,582.05 122,043.39 124,265.84 144,068.71 143,560.34
0.87 0.78 1.34 1.15 0.98
Inventory Turnover
COGS 72,547.00 66,185.00 104,989.00 110,587.00 94,654.00

Inventories 148,156.73 146,743.59 120,287.69 104,371.61 62,192.38
0.49 0.45 0.87 1.06 1.52
Days Sales Outstanding

sales /365 105,068/365 95,294/365 166,898/365 165,291/365 140,001/365
418days 467days 271days 318days 374days
Fixed Asset Turnover
Sales 105,068 95,294.00 166,898.00 165,291.00 140,001

Net fixed assets 470,846.00 453,678.41 475,115.85 401,739.79 345,527.14
0.16 0.2 0.33 0.41 0.41
Inventory Conversion Period
Inventories 148,156.73 146,743.59 120,287.69 104,371.61 62,192.38

COGS/365 72,547/365 66,185/365 104,989/365 110,587/365 94,654/365
SM PRIME HOLDINGS
2021 2020 2019 2018 2017
Sales 82,315 81,899.00 118,311.00 104,081.00 90,922.00

1.13 1.3 2.21 2.95 2.65
Inventory Turnover
COGS 49,901.00 52,825.00 61,619.00 63,664.00 50,293.00

Inventories 56,934.00 44,099.08 44,316.44 37,937.94 34,705.32
0.88 1.2 1.4 1.67 1.45

sales /365 82,315/365 81,899/365 118,311/365 104,081/365 90,922/365
Sales 82,315 81,899.00 118,311.00 104,081.00 90,922.00

Net fixed assets 607,738.51 565,283.95 514,952.06 476,344.05 332,855.53
0.12 0.14 0.2 0.22 0.27
Inventories 56,934.00 44,099.08 44,316.44 37,937.94 34,705.32

COGS/365 49,901/365 52,825/365 61,619/365 63,664/365 50,293/365
2021 2020 2019 2018 2017
Sales 50,754 43,540.88 67,371.42 53,820.00 47,281.00

1.03 0.95 1.49 1.58 1.51
Inventory Turnover
COGS 17,961 14,753.63 24,760.98 23,604.00 20,628.00

Inventories 127,974.68 117,794.26 115,114.92 109,612.32 93,800.30
0.14 0.13 0.22 0.21 0.22

sales /365 50,754.29/365 43,540.88/365 67,371.42/365 53,820/365 47,281/365
353 days 386 days 245 days 230days 242days
Sales 50,754 43,540.88 67,371.42 53,820.00 47,281.00

Net fixed assets 30,684.20 32,879.76 28,846.32 29,882.72 32,115.39
1.65 1.32 2.34 1.8 1.47
Inventories 127,974.68 117,794.26 115,114.92 109,612.32 93,800.30

COGS/365 17,961.26/365 14,753.63/365 24,760.98/365 23,604/365 20,628/365
2,611 days 2,944 days 1,718 days 1,694days 1,659days
g. Debt Management Ratios
AYALA LAND INC.
2021 2020 2019 2018 2017
Debt Ratio
Total debt 512,844 498,954.41 502,873.26 481,520.63 412,637.72

Total assets 745,464.36 721,494.37 713,923.28 668,820.48 585,394.27
0.69 0.69 0.70 0.72 0.70
Equity Ratio
Total Equity 232,621 222,539.86 211,150.02 187,299.85 172,756.55

Total Assets 745,464.36 721,494.37 713,923.28 668,820.48 585,394.27
0.31 0.31 0.30 0.28 0.30
Debt-Equity
Total Liabilities 512,844 498,954.41 502,873.26 481,520.63 412,637.72

Total equity 232,621 222,539.86 211,150.02 187,299.85 172,756.55
2.20 2.24 2.38 2.57 2.39
Times Interest Earned
EBIT 19,445 14,467.00 49,864.00 45,201 37,991

Interest 37,881.55 37,639.4. 31,655.55 32,921.35 25,509.00
0.51x 0.38x 1.58x 1.37x 1.49x
SM PRIME HOLDINGS
2021 2020 2019 2018 2017
Debt Ratio
Total debt 471,484 413,074.86 366,363.50 328,831.32 290,195.60

Total assets 804,403.28 722,358.93 667,279.67 585,394.27 518,924.42
0.58 0.57 0.55 0.56 0.56
Equity Ratio
Total Equity 338,919 309,284.07 300,916.17 275,302.99 228,788.82

Total Assets 804,403.28 722,358.93 667,279.67 585,394.27 518,924.42
0.41 0.43 0.45 0.47 0.44
Debt-Equity

Total equity 338,919 309,284.07 300,916.17 275,302.99 228,788.82
1.42 1.34 1.22 1.19 1.27
EBIT 27,734 22,464.00 49,162.00 63,664.00 50,293.00

Interest 1,441.57 1,433.56 1,600.10 3,774.97 3,917.00
19.24x 15.67x 30.72x 16.86x 12.84x
2021 2020 2019 2018 2017
Debt Ratio
Total debt 199,138 190,226.19 171,168.99 158,435.78 149,228.60

Total assets 397,977.25 375,690.42 349,633.07 322,290.67 310,532.80
0.50 0.51 0.49 0.49 0.48
Equity Ratio
Total Equity 198,839 185,464.23 178,464.09 163,854.89 161,304.20

Total Assets 397,977.25 375,690.42 349,633.07 322,290.67 310,532.80
0.50 0.49 0.51 0.51 0.52
Debt-Equity

Total equity 198,839 185,464.23 178,464.09 163,854.89 161,304.20
1.00 1.03 0.96 0.97 0.93
EBIT 14,943.31 27.263.81 25,377.69 21,278.00 18,796.00

Interest 30,865.12 27,066.25 26,401.44 24,885.53 17,902.71
0.48x 1.01x 0.96x 0.86x 1.05x
h. Market Value Ratios

AYALA LAND INC.
2021 2020 2019 2018 2017
Earnings Per Share
Net Income 12,228 8,727 33,188 29,241.00 25,305.00

Common shares Outstanding 14,732.53 3,878.67 14,750.22 15,636.90 11,715.28
0.83 0.59 2.25 1.87 2.16
Price Earnings Ratio
Market Price Per Share 36.70 40.90 45.50 40.60 44.60

EPS 0.83 0.59 2.25 1.87 2.16
44.22 69.32 20.22 21.71 20.65
Market-Book Value

Book Value 15.96 15.15 13.79 11.94 10.62
2.3x 2.7x 3.3x 3.4x 4.2x
SM PRIME HOLDINGS
2021 2020 2019 2018 2017
Earnings Per Share
Net Income 21,787 18,007.00 38,036.00 32,173.00 27,514.00

0.76 0.62 1.32 1.11 0.90

EPS 0.76 0.62 1.32 1.11 0.90
31.9 61.7 31.9 33.4 11.0
Market-Book Value
Book Value 11.08 17.36 1,052.75 35.80 41.10
2.19 3.59 0.04 1.04 0.96
2021 2020 2019 2018 2017
Earnings Per Share
Net Income 13,283 9,351 17,369 15,084.00 13,143.00

0.42 0.29 0.54 0.41 0.43

EPS 0.42 0.29 0.54 0.41 0.43
74.76 63.10 25.91 32.51 31.19
Market-Book Value

Book Value 3.45 5.84 5.62 4.01 4.67
0.91x 0,69x 0,71x 0.83x 0.73x
References
Corporate Finance Institute. (2020, October 18). Horizontal Analysis. Corporate Finance
Institute; Corporate Finance Institute.
https://corporatefinanceinstitute.com/resources/accounting/horizontal-analysis/
Investing.com Philippines - Financial News & Stock Quotes. (2022). Investing.com Philippines.
https://ph.investing.com/
MarketScreener. (2022). Stock Market Quotes and News : Equities, Indexes, Commodities, Forex
on MarketScreener.com. Marketscreener.com. https://www.marketscreener.com/

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COMPARATIVE STUDY ON FINANCIAL ANALYSIS OF MEGAWORLD

CORPORATION, AYALA LAND INC., & SM PRIME HOLDINGS

Megaworld Corporation is the Philippines' premier and largest developer of

The organization. The concept of an "integrated lifestyle community or ILC,"

SM Prime Holdings Inc. (SMPH) is one of Southeast Asia's major integrated

2. To determine the strengths and weaknesses of each company (Megaworld Corporation,

3. To compare Megaworld Corporation’s performance with its competitors.

4. To assess and evaluate each company’s financial ratios.

2021 2020 2019 2018 2017

Asset Management Ratios

Debt Management Ratios

Market Value Ratios

2021 2020 2019 2018 2017

Asset Management Ratios

Debt Management Ratios

Market Value Ratios

2021 2020 2019 2018 2017

Asset Management Ratios

Debt Management Ratios

Market Value Ratios

Table 10. Sum of Sales by Year and Company

The assets of Megaworld Corporation increased by 5.93% in 2021, 7.44% in 2020,

C. Financial Ratio Analysis

A higher ratio denotes a higher level of liquidity, according to Robert Johnson, a

Table 11. Comparison of the Current Ratio of the three companies

Operating margin is a profit ratio that compares operating income to sales. It is a

Profit margin is a measure of how profitable your company is. It is represented as

Table 14. Profit Margin Comparison

Table 15. Return on Asset Comparison

Table 17. Return on Equity Comparison

c. Asset Management Ratio

Accounts Receivable Turnover measures how frequently a company collects its

Table 18. Accounts Receivable Turnover Comparison

Table 19. Inventory Turnover Comparison

Table 20. Days Sales Outstanding Comparison

Table 22. Inventory Conversion Period comparison

d. Debt Management Ratio

Table 23. Debt Ratio comparison of the three companies

Table 24. Equity Ratio comparison for the three companies

Despite a subsequent movement in value, Ayala Land Incorporation's debt-to-

Table 25. Debt-Equity ratio comparison of the three companies

Table 26. TIE ratio comparison of the three companies

The profit of a corporation is divided by the number of outstanding shares of its

A financial valuation statistic called the market-to-book ratio, commonly known as

It is inevitable that Megaworld Corporation also experienced declines and growth

Table 28. Market-Book Comparison

Megaworld Corporation has had a relatively high price-to-earnings ratio, with

IV. CONCLUSION AND RECOMMENDATION

A range of indicators known as asset management ratios demonstrate how a

A company's liquidity is a crucial component. A company needs liquidity to fulfill

2021 2020 2019 2018 2017

2021 2020 2019 2018 2017

2021 2020 2019 2018 2017

2021 2020 2019 2018 2017

Selling/General/Admin. Expenses 8,183.00 7,563.00 10,162.00 8,166.00 7,087.00

Ayala Land Inc.

2021 2020 2019 2018 2017

2021 2020 2019 2018 2017

c. FINANCIAL RATIOS SOLUTIONS

Current assets 328,552.95 324,271.10 295,434.25 302,829.90 268,391.32

Current assets- 328552.95 - 324271.1- 295434.25- 302829.9- 268,391.32-

Current assets 195,664.77 157,074.98 158,327.61 127,790.26 186,128,89