POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

COLLEGE OF SOCIAL SCIENCES AND DEVELOPMENT

Department of Cooperatives and Social Development
Mabini Campus, Sta. Mesa, Manila, Philippines

CATHERINE ROZE C. GELLIDO

BSC CECD 4-4

WORKSHOP ACTIVITY 10

LIQUIDITY RATIOS
CURRENT RATIO = CURRENT ASSETS
CURRENT LIABILITIES
= PHP 189, 470.00
PHP 203,500.00

CURRENT RATIO = 0.93

Interpretation: Liquidity ratio is greater than one (<1) which means current assets does not exceeds
current liabilities and current assets are not enough to cover the liabilities, leading to a bad
interpretation.

QUICK RATIO = LIQUID ASSETS CURRENT ASSETS – INVENTORY

CURRENT LIABILITIES CURRENT LIABILITIES
= PHP 189, 470.00
PHP 203,500
QUICK RATIO = 0.93
Interpretation: Liquid assets does not exceeds current liabilities indicating that the entity does not have
the ability to meet its short-term maturing obligations without relying to the sale of inventories, leading
to a bad result of interpretation.

NET WORKING CAPITAL RATIO = CURRENT ASSETS - CURRENT LIABILITIES

= PHP 189, 470.00 - PHP 203,500.00
NET WORKING CAPITAL RATIO = 14, 030.00

LEVERAGE RATIO
A. DEBT RATIO
TOTAL DEBT = 203, 500.00
TOTAL ASSETS 213,070.00
DEBT TO LEVERAGE RATIO = 0.96

B. DEBT TO EQUITY RATIO

TOTAL DEBT = 203,500.00
TOTAL EQUITY 9, 570.00
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
COLLEGE OF SOCIAL SCIENCES AND DEVELOPMENT
Department of Cooperatives and Social Development
Mabini Campus, Sta. Mesa, Manila, Philippines

DEBT TO EQUITY RATIO = 21. 26

LONGTERM DEBT TO EQUITY RATIO

LONGTERM DEBT = 0
TOTAL EQUITY 9,570.00
LONG-TERM DEBT TO EQUITY RATIO = 0

C. CAPITAL RATIO
STOCKHOLDER’S EQUITY = 9, 570.00
TOTAL ASSETS 213,070.00
CAPITAL RATIO = 0.04

D. TANGIBLE NET WORTH RATIO

(CONTRIBUTED CAPITAL+RETAINED EARNINGS-INTANGIBLE ASSETS) = 3,500.00+6,070.00
TOTAL ASSETS 213, 070.00
TANGIBLE NET WORTH RATIO= 4.49