De La Salle University

Ramon V. del Rosario

College of Business

A Financial Statement Analysis on PLDT Inc. (TEL)

In Partial Fulfillment of the

Course Requirements for

Fundamentals on Business Math and Finance

1st Term, SY 2022-2023

Submitted by:
Cacal, Timothy
Dytuco, Prancessca
Evangelista, Ysabella
Lim, Breanna
Ricio, David
Zamora, Vincent

Group 2

Submitted to:
Mark Casanova

Submitted on:
November 25, 2022
I. Introduction
This report aims to analyze the annual financial position and performance of
PLDT Inc. (TEL). This paper will cover the years 2020 and 2021. For the fiscal
year 2021, PLDT had over 27.7 million common shares.
II. Corporate Information
A. Nature of Business
PLDT Inc. (TEL), formerly the Philippine Long Distance Telephone
Company, was founded and established on November 28, 1928. TEL is
an integrated telecommunications service provider in the Philippines with
its business activities categorized into three units: wireless, fixed line, and
others. The Company operates the Philippines' most extensive fiber optic
backbone, fixed line, and cellular network. The Company's wireless
services are marketed under the “Smart”, “TNT”, and “Sun Cellular”
brands, while its fixed line services are marketed under “PLDT HOME”
and “PLDT ENTERPRISE”
B. Management
TEL is led by its President and Chief Executive officer, Alfredo S. Panlilio
together with Anabelle L. Chua, its Chief Financial Officer, and Manuel V.
Pangilinan, the chairman of the board of directors.
III. Statement of Financial Position
A. Assets

● The total assets of the company increased by 8.77% or 50,482

from 2020 to 2021
 ● The top 2 contributing factors that helped the total assets in 2021
increase by 8.77% are short-term investments which increased by
126.59% and the current portion of other non-financial assets
increasing by 124.61%
B. Liabilities

● The total liabilities of the company increased by 9.36% or 42,682

from 2020 to 2021
● The top 2 major attributes that contributed to the movement of the
total liabilities to increase are dividends payable with an increase of
43.05% and income tax payable with an increase of 52.62% from
their previous amounts in 2020.
C. Equity
 ● The total owner’s equity of the company increased by 6.52% or
7,800 in the year from 2020 to 2021, the total equity increased by
6.52%.
● The top 2 contributing factors to the movement of the total owner’s
equity to increase are the retained earnings, which increased by
33.49%, and the total equity attributable to equity holders of PLDT,
which increased by 6.77%.
IV. Income Statement
A. Revenues

Chart 1.1 2020 Pie Chart of Revenues

Chart 1.2 2021 Pie Chart of Revenues

Analysis:
 ● The pie charts above, the sources of revenues of PLDT are through
non-service and service.
● The total revenue of the company for the year 2021 is 193,237
while 181, 004 for the year 2020. This means that the 2021
revenue increased by 12,233 or 6.76%.
● The top 2 major attributes that contributed to the movement of the
total liabilities to increase are non-service revenue with 1.85% and
service revenue with 6.98%
B. Cost of goods sold/cost of services

2021 2020 Amount Percentage

13,341 12,295 1,046 8.51%

Analysis:
● From the year 2020 to 2021, there has been an increase of 1,064
or 8.51%.

C. Operating Expense

Chart 1.1 2020 Pie Chart of Operating Expenses

 Chart 1.2 2021 Pie Chart of Operating Expenses

Analysis:
● Based on the pie chart presented above, there has been an
increase of 3,048 or 4.05% under the Selling, General, and
Administrative Expenses in the year 2021.
● The Depreciation and Amortization expense for the year 2021 has
increased by 4,689 or 9.88%.

D. Net Income

2021 2020 Amount Percentage

26,676 24,580 2,096 8.53%

Analysis:
● The net income of the company for the year 2022 increased by
2,096 or 8.53% from the previous year. The net income increased
because the net sales increased as well by 6.76% which helped the
total net income to go up as well.
V. Ratio Analysis

A. Current Ratio

Year Current Assets Current Liabilities Ratio

 2020 87,438 213,537 0.41

2021 73,931 224,274 0.33

Analysis:
● Current ratio is a liquidity ratio that assesses a company's capacity
to pay short-term or one-year commitments. It explains to investors
and analysts how a firm might optimize its current assets on its
balance sheet in order to pay down its current debt and other
payables.

● The table above shows that the current ratio of the company for the
year 2020 had ₱0.41 in current assets for every ₱1 it owned in
current liability. While for the year 2021, it shows that the company
had ₱0.33 in every ₱1 of current liabilities owned.

● Comparing both current ratios of 2021 and 2020, the year 2020,
has a better current ratio for it is higher than the year 2021, allowing
the company to be more capable of paying off its debts.

● In conclusion, the current ratio got worse and lower than the
previous year.
B. Total Asset Turnover

Year Sales Total Assets Ratio

2020 181,004 575,846 0.31

2021 193,257 626,328 0.30

Analysis:
● Total asset turnover shows how much sales were made for every
dollar invested in the firm's assets.

● According to the data above, the company's total asset turnover

generated ₱0.31 in sales per peso of assets in 2020. While in 2021,
the company generated ₱0.30 in sales per peso of assets.
● When both ratios from 2020 and 2021 are compared, the year 2020
had a higher total asset turnover, indicating that the corporation
was better at moving products to produce revenue in 2020 than in
2021.
 ● In conclusion, the total asset turnover ratio of 2021 was lower than
the previous year.
C. Net Profit Ratio

Year Net Income Sales Ratio

2020 24,284 181,004 0.13%

2021 26,367 193,257 0.14%

Analysis:
● The Net Profit Ratio, which is also called the Net Profit Margin
Ratio, is a measure of how profitable a business is. It compares the
amount of money the business made to the total amount of money
it brought in.
● According to the calculated data presented above, the company for
the year 2020 is 0.13%, while the year 2021 had a 0.14% Net Profit
Ratio.
● Comparing the net profit ratios for both 2020 and 2021, the year
2021 has increased more than the year 2020.
● In conclusion, the year 2021 is better because the higher net profit
margin means that a company is better at turning sales into actual
profit.
D. Debt Ratio

Year Total Debt Total Assets Ratio

2020 224,580 575,846 0.39

2021 250,531 626,328 0.4

Analysis:
● A Debt Ratio is a way to figure out how many assets a company
has bought with debt. The ratio lets investors know how risky it is to
put money into a company with a lot of debt that is used to build up
capital.

● According to the table, the company funded 0.39 of its assets with
debt in 2020 and 0.4 of its assets with debt in 2021.
 ● Comparing the debt ratios in both 2020 and 2021, the year 2020
has a better debt ratio because it is lower than the year 2021, which
is better for the company.
● In conclusion, the debt ratio for 2021 got worse and higher than the
previous year.
E. Price Earning Ratio

Year Price per Share Earnings per Ratio

Share

2020 1,339.83 112.12 11.95

2021 1,668.35 112.12 14.88

Analysis:
● Price Earning Ratio (P/E ratio) is a ratio used to value a company
by comparing its current share price to its earnings per share and
how much investors are willing to pay for a dollar of reported
earnings at the point in time.
● According to the calculated data, the Price Earning ratio for the
year 2020 is 14.88, while the calculated ratio for the year 2021 is
11.95.
● Comparing the ratios for both 2020 and 2021, the price-earning
ratio in the year 2021 went higher compared to the year 2020.
● In conclusion, the price-earning ratio for 2021 is better since the
more profitable a company is, the more money it makes per share.
VI. Conclusion

Based on the several analysis above, PLDT Inc. was able to increase its assets,
equity, revenues, and cost of sales for the fiscal year 2022. However, despite the
increase which could benefit the company, liabilities, and expenses that could
affect the company. Nevertheless, the company was able to increase its overall
net income.

According to the carefully conducted ratio analysis, PLDT Inc. saw a decrease in
performance on the majority of the available aspects. Based on certain aspects
such as the Current Ratio, Total Assets Turnover, and Price Earning Ratio, it
shows minor decreases. However, two remaining aspects, the Debt Ratio, and
Net Profit Ratio showed a positive increase from 2020 to 2021. Overall, the
company was more profitable in the previous year than it is now.
VII. Reference

PLDT ANNUAL REPORT 2021. (n.d). Retrieved November 25, 2022, from
https://edge.pse.com.ph/openDiscViewer.do?
edge_no=f316636e45e6997f3470cea4b051ca8f

PLDT. (n.d.). Retrieved November 25, 2022, from

https://cms.pldt.com/drupal/sites/default/files/irannualandsustainablereports/
financial_pldt-2020-ar.pdf