INTERPRETATION AND ANALYSIS FOR

PROFITABILITY RATIO.
Interpretation For Year 2021

Gross Profit Margin Ratio

in every PHP 1 net sales, it generates PHP 0.32 in gross profit.

Profit Margin On Sale

in every PHP 1 net sales, it generates PHP 0.17 in net income.

Return On Total Assets

in every PHP 1 total assets, it generates PHP 0.23 in net income.

Return On Equity

in every PHP 1 owners equity, it generates PHP 0.51 in net income.

Interpretatio For Year 2022

Gross Profit Margin Ratio

in every PHP 1 net sales, it generates PHP 0.31 in gross profit.

Profit Margin On Sale

in every PHP 1 net sales, it generates PHP 0.13 in net income

Return On Total Assets.

in every PHP 1 total assets, it generates PHP 0.24 in net income.

Return On Equity

in every PHP 1 owners equity, it generates PHP 0.54 in net income.

Analysis

the labor unions helped the firm's gross profit margin ratio and profit margin on sales, which leads to the
conclusion that the company doesn't need to fire other workers in order to function well. However, the
board of directors may be threatened by the decline in gross profit and profit margin in 2022 since they
are responsible for establishing the capital structure's policies, which may be impacted by the decline in
gross profit. The return on equity and return on total assets in 2021 are having trouble making investment
selections. Additionally, the board of directors and employees will be put in danger since they will have
more work to do and because the board of directors is the only one who can approve the company's goals,
budget, and decision to improve profit by employing assets to expand sales in 2022. However, because
both the return on total assets and return on equity grew.