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XYZ Corporation

Income Statements for years ending December 31

(In thousands of pesos, except for per share data)

H O RIZO N TAL AN ALYSIS VERTICAL AN ALYSIS

2023 2022 (% ) (PESO ) 2023 2024

N et sales 3,000 2,850 5.3% 150.00 100% 100%

Cost and expenses

Labor and materials 2,544 2,413 5.43% 131.00 84.80% 84.67%

Depreciation 100 90 11.11% 10.00 3.33% 3.16%

Selling 22 20 10.00% 2.00 0.73% 0.70%

G eneral and Administrative expenses 40 35 14.29% 5.00 1.33% 1.23%

Lease payments on buildings 28 28 0.00% 0.00 0.93% 0.98%

Total operating costs 2,734 2,568 6.46% 166.00 91.13% 90.11%

N et Earnings before interest and taxes (EBIT) 266 264 0.76% 2.00 8.87% 9.26%

Less,Interest Expense
Interest on notes payable 8 2 300.00% 6.00 0.27% 0.07%

Interest on first mortgage bonds 40 42 -4.76% -2.00 1.33% 1.47%

Interest on debenture bonds 18 3 500.00% 15.00 0.60% 0.11%

Total interest 66 47 40.43% 19.00 2.20% 1.65%

N et earnings before taxes 200 217 -7.83% -17.00 6.67% 7.61%

Tax expense (average rate of 40% ) 80 87 -8.05% -7.00 2.67% 3.05%

N et income before preferred dividends 120 130 -7.69% -10.00 4.00% 4.56%

Dividends to preferred stockholders 8 8 0.00% 0.00 0.27% 0.28%

N et income available to common stockholders 112 122 -8.20% -10.00 3.73% 4.28%

Disposition of net income

Dividends to common stockholders 92 82 12.20% 10.00 3.07% 2.88%

Addition to retained earnings 20 40 -50.00% -20.00 0.67% 1.40%

Per share of common stock

Stock price (year end) 26.5 27 -1.85% -0.50 0.883% 0.947%

Earnings per share (EPS)* 2.24 2.44 -8.20% -0.20 0.075% 0.086%

Dividends per share (DPS)* 1.84 1.64 12.20% 0.20 0.061% 0.058%
XYZ Corporation

December 31 Balance Sheets

(In thousands of pesos)

 H O RIZO N TAL AN ALYSIS VERTICAL AN ALYSIS

2023 2022 (% ) (PESO ) 2023 2024

ASSETS

Cash
50 55 -9.1% -5.00 2.50% 3.27%
M arketable Securities
0 25 -100.0% -25.00 0.00% 1.49%

Accounts Receivable
350 315 11.1% 35.00 17.50% 18.75%

Inventories 300 215 39.5% 85.00 15.00% 12.80%

Total Current Assets 700 610 14.8% 90.00 35.00% 36.31%

Plant and Equipment 1,800 1,470 22.4% 330.00 90.00% 87.50%

500 400 25.0% 100.00 25.00% 23.81%

Less,Accumulated Depreciation
1,300 1,080 20.4% 220.00 65.00% 64.29%
N et book value
2,000 1,680 19.0% 320.00 100% 100.00%
TO TAL ASSETS

LIABILITIES AN D EQ U ITY

Accounts Payable
60 30 100.00% 30.00 3.00% 1.786%
N otes payable
100 60 66.67% 40.00 5.00% 3.571%
Salaries and W ages Payable
10 10 0.00% 0.00 0.50% 0.595%
Taxes Payable
130 120 8.33% 10.00 6.50% 7.143%
Total Current Liabilities
300 220 36.36% 80.00 15.00% 13.095%
 First mortgage bonds Payable 500 520 -3.85% -20.00 25.00% 30.952%

300 60 400.00% 240.00 15.00% 3.571%

Debenture bonds payable
800 580 37.93% 220.00 40.00% 34.524%
Total Long-term Debt

Equity
20 20 0.00% 0.00 1.00% 1.190%
Preferred Shares (20,000 shares,P1 par value)
50 50 0.00% 0.00 2.50% 2.976%
Common Shares (50,000 shares,P1 par value)
80 80 0.00% 0.00 4.00% 4.762%
Additional paid in capital Retained Earnings
750 730 2.74% 20.00 37.50% 43.452%
Total Equity
900 880 2.27% 20.00 45.00% 52.381%

TO TAL LIABILITIES AN D EQ U ITY 2,000 1,680 19.05% 320.00 100% 100%

XYZ Corporation

Summary of Financial Ratios

For the year 2023

(in thousands of pesos)

RATIO S FO RM U LA CO M PU TATIO N RATIO IN DU STRY CO M M EN TS

RESU LT AVERAG E
STAN DARD

Liquidity
Current asset ratio Total Current Assets/Total Current Liabilities 700/300=2.33 2.3 1.5:1-2:1
M ay signify that the company is not utilizing
the current asset efficiently.
Acid test ratio Total Q uick Asset/Total Current Liabilities 400/300=1.33 1.3 1
Adequate and ensure the company's ability to
pay its current obligations.

Asset management

Inventory TO 5-10

7.8
Day sales in inventory

A/R TO

Day sales in

A/R

Fixed assets TO

Total Assets TO

Debt M anagement

Debt to Total Total Liabilities/Total Asset 0.6 0.3-0.6

A ratio above 0.50 is often considered to be
highly leveraged w hich means that most
Assets
of its assets are financed through debt,not
equity.

Times interest earned N et Earnings before interest and taxes/Total 2.5

This means that the company has enough
interest
cash after paying its debts to continue to
invest in the business.
Fixed Charge N et Earnings before interest and taxes and fixed 3.83 1.0-1.25
It is generally considered favorable, as it
charge/fixed charge
suggests that the company has a strong ability
Coverage
to generate cash flow to cover its fixed
charges multiple times.

1.0 or higher
Cash flow coverage

Profitabiity

Profit margin N et Profit/N et Sales 0.037 10%

A 3.37% profit margin in a company indicates
that its profitability is relatively low .

RO A N et Income/Average Asset 12.58% 9%

It suggests that the company is relatively
efficient in generating profits from its
profit.

RO E N et Income/Average Equity 6.1% 15%

It indicates relatively low in generating profits
from shareholder's equity.

M arket Value

Price/earnings ratio 12.5x

M arket-book ratio 1.8x