Republic of the Philippines

CAVITE STATE UNIVERSITY

Don Severino delas Alas Campus
Indang, Cavite

FMGT 80
CAPITAL MARKET MANAGEMENT
FINAL PROJECT

SUBMITTED TO:
CZARINA MABBORANG MIRAVEL

SUBMITTED BY:
GALLEGA, ALLEXANDRA NICOLE T.
HERNANDEZ, AMANDA A.
JUMERAS, JEWEL ARIAN A.
LORENZO, KHAYENEL L.
LUZ, NINA CRISANDRA L.
URIAS, JUSTERINE M.
 Assumptions
2015 2016 2017

1. Increase in sales revenue 20% 25% 30% *

2. Increase in operating expenses 5% 8% 10% *
3. Increase in Other Expense 3% 5% 7% *
4. Corporate Income tax rate 30% 30% 30% *
5. Dividends declared and paid in cash -₱10,000.00 -₱15,000.00 -₱20,000.00
6. Acquisition of Equipment(3 year life) ₱ 15,000 - - *
7. Additional depreciation for item 8 ₱ 5,000 ₱ 5,000 ₱ 5,000
8. payment for debt 5% 5% 5%
9. Collection of Accounts Receivables 10% 10% 10%
10. Collection of Net Loans 12% 12% 12%

CITIGROUP INC.,
Ratio Analysis
 Actual Projection
Liquidity
Ratio 2013 2014 2015 2016 2017
A. Current Current
Ratio Asset ₱481,601.00 ₱431,186.00 ₱460,391.01 ₱505,430.95 ₱559,092.85
Current
Liabilities ₱1,284,436.00 ₱1,183,285.00 ₱1,138,318.40 ₱1,095,600.13 ₱1,055,017.77

0.375 0.364 0.404 0.461 0.530

B. Cash
Ratio Cash ₱455,927.00 ₱402,767.00 ₱434,813.91 ₱482,411.56 ₱538,375.40
Current
Liabilities ₱1,284,436.00 ₱1,183,285.00 ₱1,138,318.40 ₱1,095,600.13 ₱1,055,017.77

0.355 0.340 0.382 0.440 0.510

Leverage
Ratios

Total
Debt/Liabiliti
a. Debt Ratio es ₱1,674,249.00 ₱1,630,485.00 ₱1,585,518.40 ₱1,542,800.13 ₱1,502,217.77

Total Asset ₱1,880,382.00 ₱1,842,530.00 ₱1,806,298.09 ₱1,779,953.54 ₱1,770,197.09

 0.890 0.885 0.878 0.867 0.849

Total
b. Debt to Debt/Liabiliti
Equity Ratio es ₱1,674,249.00 ₱1,630,485.00 ₱1,585,518.40 ₱1,542,800.13 ₱1,502,217.77
Total Equity ₱206,133.00 ₱212,045.00 ₱220,779.69 ₱237,153.41 ₱267,979.31

8.122 7.689 7.181 6.505 5.606

Asset
Utilization
Ratios
a. Asset
Turnover
Ratio Net Sales ₱76,419.00 ₱76,882.00 ₱92,258.40 ₱115,323.00 ₱149,919.90
Average
Total Asset ₱1,880,382.00 ₱1,861,456.00 ₱1,824,414.04 ₱1,793,125.81 ₱1,775,075.32

0.041 0.041 0.051 0.064 0.084

b. Return on Profit after

Asset tax ₱13,630.00 ₱7,500.00 ₱18,734.69 ₱31,373.72 ₱50,825.90
Average
Total Asset ₱1,880,382.00 ₱1,861,456.00 ₱1,824,414.04 ₱1,793,125.81 ₱1,775,075.32
 0.007249 0.004029 0.010269 0.017497 0.028633

Profitability
Ratios

a. Net Profit
Margin Ratio Net Profit ₱13,630.00 ₱7,500.00 ₱18,734.69 ₱31,373.72 ₱50,825.90
Net Sales ₱76,419.00 ₱76,882.00 ₱92,258.40 ₱115,323.00 ₱149,919.90

0.178 0.098 0.203 0.272 0.339

b. Gross Gross
Profit Margin profit ₱28,011.00 ₱21,831.00 ₱34,454.85 ₱52,895.17 ₱81,249.28
Net Sales ₱76,419.00 ₱76,882.00 ₱92,258.40 ₱115,323.00 ₱149,919.90

0.367 0.284 0.373 0.459 0.542

 CITIGROUP INC.,
Statement of Financial Position
December 31, 2013-2014, projected 2015-2017
( in Billion )
Actual Projected
2013 2014 2015 2016 2017
ASSETS
Cash ₱455,927.00 ₱402,767.00 ₱434,813.91 ₱482,411.56 ₱538,375.40
Accounts Receivables ₱25,674.00 ₱28,419.00 ₱25,577.10 ₱23,019.39 ₱20,717.45
Total Current Assets ₱481,601.00 ₱431,186.00 ₱460,391.01 ₱505,430.95 ₱559,092.85
Property and Equipment ₱10,000.00 ₱5,000.00 ₱0.00
Goodwill ₱25,009.00 ₱23,592.00 ₱23,592.00 ₱23,592.00 ₱23,592.00
Intangibles ₱5,056.00 ₱4,566.00 ₱4,566.00 ₱4,566.00 ₱4,566.00
Trading Accounts ₱285,928.00 ₱296,786.00 ₱296,786.00 ₱296,786.00 ₱296,786.00
Total investment ₱308,980.00 ₱333,443.00 ₱333,443.00 ₱333,443.00 ₱333,443.00
Net loans ₱645,824.00 ₱628,641.00 ₱553,204.08 ₱486,819.59 ₱428,401.24
Other assets ₱127,984.00 ₱124,316.00 ₱124,316.00 ₱124,316.00 ₱124,316.00
Total Assets ₱1,880,382.0 ₱1,842,530.00 ₱1,806,298.0 ₱1,779,953.54 ₱1,770,197.09
0 9

Current Debt ₱262,456.00 ₱231,773.00 ₱231,773.00 ₱231,773.00 ₱231,773.00

Accounts payable ₱53,707.00 ₱52,180.00 ₱52,180.00 ₱52,180.00 ₱52,180.00
Other current liabilities ₱968,273.00 ₱899,332.00 ₱854,365.40 ₱811,647.13 ₱771,064.77
Total current liabilities ₱1,284,436.0 ₱1,183,285.00 ₱1,138,318.4 ₱1,095,600.13 ₱1,055,017.77
0 0
Long-term Debt ₱329,878.00 ₱362,116.00 ₱362,116.00 ₱362,116.00 ₱362,116.00

Other liabilities ₱59,935.00 ₱85,084.00 ₱85,084.00 ₱85,084.00 ₱85,084.00

total liabilities ₱1,674,249.0 ₱1,630,485.00 ₱1,585,518.40 ₱1,542,800.13 ₱1,502,217.77
0

Common stock ₱31.00 ₱31.00 ₱31.00 ₱31.00 ₱31.00

Preferred stock ₱6,738.00 ₱10,468.00 ₱10,468.00 ₱10,468.00 ₱10,468.00
retained earnings ₱111,168.00 ₱118,201.00 ₱126,935.69 ₱143,309.41 ₱174,135.31
treasury stock -₱1,658.00 -₱2,929.00 -₱2,929.00 -₱2,929.00 -₱2,929.00
paid in capital ₱89,854.00 ₱86,274.00 ₱86,274.00 ₱86,274.00 ₱86,274.00
total equity ₱206,133.00 ₱212,045.00 ₱220,779.69 ₱237,153.41 ₱267,979.31
Total Liabilities and Equity ₱1,880,382.0 ₱1,842,530.00 ₱1,806,298.09 ₱1,779,953.54 ₱1,770,197.09
0

₱0.00 ₱0.00 ₱0.00 ₱0.00 ₱0.00

CITIGROUP INC.,
Statement of Comprehensive Income
December 31, 2013-2014, projected 2015-2017
( in Billion )

Actual Projected
2013 2014 2015 2016 2017
₱76,882.0 ₱92,258.4
revenue ₱76,419.00 0 0 ₱115,323.00 ₱149,919.90
₱55,051.0 ₱57,803.5
operating expense ₱48,408.00 0 5 ₱62,427.83 ₱68,670.62
₱21,831.0 ₱34,454.8
operating income ₱28,011.00 0 5 ₱52,895.17 ₱81,249.28
other expenses ₱8,514.00 ₱7,467.00 ₱7,691.01 ₱8,075.56 ₱8,640.85
₱14,364.0 ₱26,763.8
EBIT ₱19,497.00 0 4 ₱44,819.61 ₱72,608.43
Interest expense ₱0.00 ₱0.00 ₱0.00 ₱0.00 ₱0.00
EBT ₱19,497.00 ₱14,364.0 ₱26,763.8 ₱44,819.61 ₱72,608.43
 0 4
Tax 30% ₱5,867.00 ₱6,864.00 ₱8,029.15 ₱13,445.88 ₱21,782.53
₱18,734.6
EAT ₱13,630.00 ₱7,500.00 9 ₱31,373.72 ₱50,825.90
Other items ₱43.00 -₱187.00 ₱0 ₱0.00 ₱0.00
₱18,734.6
Net income ₱13,673.00 ₱7,313.00 9 ₱31,373.72 ₱50,825.90

CITIGROUP INC.,
Change in Equity
December 31, 2013-2014, projected 2015-2017
( in Billion )
Common Preferred Retained Treasury Paid In
stock stock earnings Stock Capital Total

Balance as of January ₱
1, 2014 ₱ 31.00 ₱ 10,468.00 ₱ 118,201.00 -₱ 2,929.00 86,274.00 ₱ 212,045.00
Comprehensive
Income
Net Income ₱ 18,734.69 ₱ 18,734.69
Other Comprehensive
Income(Loss)
Total Comprehensive
Income(Loss) ₱ 18,734.69 ₱ 18,734.69
Dividends Declared -₱ 10,000.00 -₱ 10,000.00
Balance as of ₱ 31.00 ₱ 10,468.00 ₱ 126,935.69 -₱ 2,929.00 ₱ ₱ 220,779.69
december 30, 2015 86,274.00

Balance as of January ₱
1, 2015 ₱ 31.00 ₱ 10,468.00 ₱ 126,935.69 -₱ 2,929.00 86,274.00 ₱ 220,779.69
Comprehensive
Income
Net Income ₱ 31,373.72 ₱ 31,373.72

Other Comprehensive
Income(Loss)
Total Comprehensive
Income(Loss) ₱ 31,373.72 ₱ 31,373.72
Dividends Declared -₱ 15,000.00 -₱ 15,000.00
Balance as of ₱
december 30, 2016 ₱ 31.00 ₱ 10,468.00 ₱ 143,309.41 -₱ 2,929.00 86,274.00 ₱ 237,153.41

Balance as of January ₱
1, 2016 ₱ 31.00 ₱ 10,468.00 ₱ 143,309.41 -₱ 2,929.00 86,274.00 ₱ 237,153.41
Comprehensive
Income
Net Income ₱ 50,825.90 ₱ 50,825.90
Other Comprehensive
Income(Loss)
Total Comprehensive ₱ 50,825.90 ₱ 50,825.90
Income(Loss)
Dividends Declared -₱ 20,000.00 -₱ 20,000.00
Balance as of ₱
december 30, 2017 ₱ 31.00 ₱ 10,468.00 ₱ 174,135.31 -₱ 2,929.00 86,274.00 ₱ 267,979.31

CITIGROUP INC.,
Statement of Cash Flow
December 31, 2013-2014, projected 2015-2017
( in Billion )
2015 2016 2017
Cash flow from Operating activities
Earnings before Tax ₱26,763.84 ₱44,819.61 ₱72,608.43
Increase Accounts Receivables ₱2,841.90 ₱2,557.71 ₱2,301.94
depreciation ₱5,000.00 ₱5,000.00 ₱5,000.00
Net cash from Operations ₱34,605.74 ₱52,377.32 ₱79,910.37
Corporate tax Paid ₱8,029.15 ₱13,445.88 ₱21,782.53
Cash Provided for Operating Activities ₱26,576.59 ₱38,931.43 ₱58,127.84

Cash Flow From Investing aCtivities

Equipment ₱15,000.00
Cash Prodvided for Investing Activities ₱15,000.00

Cash Flow from Financing Activities

payment for debt ₱44,966.60 ₱42,718.27 ₱40,582.36
Selling of Loans ₱75,436.92 ₱66,384.49 ₱58,418.35
Dividends -₱10,000.00 -₱15,000.00 -₱20,000.00
Cash Provided for financing Activities ₱20,470.32 ₱8,666.22 -₱2,164.01

Net Increase(Decrease) in Cash and Cash Equivalents ₱32,046.91 ₱47,597.65 ₱55,963.84

Cash and Cash Equivalents at the beginning of the year ₱402,767.0 ₱434,813.91 ₱482,411.56
0
Cash and Cash Equivalents at end of year ₱434,813.9 ₱482,411.56 ₱538,375.40
1