FINANCIAL RATIO ANALYSIS

Financial ratio analysis is the technique of comparing the relationship (or ratio)
between two or more items of financial data from a company's financial
statements. It is mainly used as a way of making fair comparisons across time
and between different companies or industries.

1. LONG TERM DEBT TO TOTAL CAPITAL RATIO

The long-term debt to capitalization ratio, a variation of the traditional debt-
to-equity (D/E) ratio, shows the financial leverage of a firm.

FORMULA

MAC’S LONG TERM DEBT TO TOTAL CAPITAL RATIO

YEAR 2017 2018 2019 2020 2021
Long term 0.5 0.6 0.6 0.7 0.5
debt to total
capital ratio
 GRAPH

2. DEBT TO EQUITY RATIO

The D/E ratio is an important metric used in corporate finance. It is a

measure of the degree to which a company is financing its operations
through debt versus wholly owned funds.

FORMULA

MAC’S DEBT TO EQUITY RATIO

YEARS 2017 2018 2019 2020 2021
DEBT TO 1.3 1.5 1.9 2.4 1.4
EQUITY
RATIO
GRAPH

3. ASSET TURNOVER RATIO

Asset turnover ratio is the ratio between the value of a company's sales or
revenues and the value of its assets. It is an indicator of the efficiency with
which a company is deploying its assets to produce the revenue.

FORMULA

MAC’S ASSET TURNOVER RATIO

YEAR 2017 2018 2019 2020 2021
Asset 0.1 0.1 0.1 0.08 0.1
Turnover
Ratio
GRAPH

4. NET PROFIT MARGIN

The net profit margin, or simply net margin, measures how much net income
or profit is generated as a percentage of revenue. It is the ratio of net profits
to revenues for a company or business segment.

FORMULA

MAC’S NET PROFIT MARGIN

YEAR 2017 2018 2019 2020 2021
Net profit 14.7 6.1 10.4 -29.2 1.6
margin
 GRAPH

5. RETURN ON INVESTMENT
Return on investment or return on costs is a ratio between net income and
investment. A high ROI means the investment's gains compare favourably to
its cost. As a performance measure, ROI is used to evaluate the efficiency of
an investment or to compare the efficiencies of several different
investments.

FORMULA

MAC’S RETURN ON INVESTMENT

YEAR 2017 2018 2019 2020 2021
Return on 1.7 0.84 1.23 -2.8 0.20
Investment

GRAPH

6. RETURN ON ASSETS
The return on assets (ROA) shows the percentage of how profitable a
company's assets are in generating revenue.

FORMULA

MAC’S RETURN ON ASSETS

YEAR 2017 2018 2019 2020 2021
Return on 1.6 0.7 1.1 -2.6 0.19
assets
GRAPH

7. RETURN ON EQUITY
The return on equity is a measure of the profitability of a business in relation
to the equity. Because shareholder's equity can be calculated by taking all
assets and subtracting all liabilities, ROE can also be thought of as a return
on assets minus liabilities.

FORMULA

MAC’S RETURN ON EQUITY

YEAR 2017 2018 2019 2020 2021
Return on 4.0 2.1 3.6 -10 0.5
equity
 GRAPH

8. CURRENT RATIO
The current ratio is a liquidity ratio that measures whether a firm has enough
resources to meet its short-term obligations. It compares a firm's current
assets to its current liabilities.

FORMULA

MAC 5 YEAR’S CURRENT RATIO

YEAR 2017 2018 2019 2020 2021
Current 1.4 1.3 1.5 1.4 1.4
ratio

GRAPH

9. RECEIVABLE TURNOVER RATIO

Accounts receivable turnover is described as a ratio of average accounts
receivable for a period divided by the net credit sales for that same period.
This ratio gives the business a solid idea of how efficiently it collects on
debts owed toward credit it extended, with a lower number showing higher
efficiency.

FORMULA
MAC’S RECEIVABLE TURNOVER RATIO
YEAR 2017 2018 2019 2020 2021
Receivable
turnover 3.1 3.0 2.9 2.5 2.8
ratio

GRAPH

10. RECEIVABLE TURNOVER IN DAYS

Accounts Receivable Turnover (Days) (Average Collection Period) –
an activity ratio measuring how many days per year averagely needed by a
company to collect its receivables.

FORMULA
MAC’S RECEIVABLE TURNOVER RATIO
YEAR 2017 2018 2019 2020 2021
RTD 156 144 107 102 112

GRAPH