Académique Documents
Professionnel Documents
Culture Documents
Submitted by:
Michelle G. De Guzman
III- HAC
Submitted to:
Ms. Cristy Joy Allauigan
2013
in Amount
in Percentage
109,443.91
24.91%
312,660.50
294,855.70
17,804.80
6.04%
382,209.50
414,109.50
(31,900)
(7.70%)
95,348.71
8.30%
(58,503.70)
(40.77%)
153,852.41
15.31%
95,348.71
8.30%
and prepayments
Property and equipment
Total Assets
P 1,243,637.63 P 1,148,288.92
P 85,002.23
Penarroyo,Capital
1,158,635.40
P 143,505.93
1,004,782.99
P 1,243,637.63 P 1,148,288.92
Capital
2013
in Amount
in Percentage
(29%)
Cost of Revenues
1,331,173.20
2,095,202.70 (764,029.50)
(36.47%)
Gross Profit
1,089,141.70
1,313,468.47 (224,326.77)
(17.08%)
824,658.29
972,702.97 (148,044.68)
(15.22%)
10,631.00
P 253,852.41
14,104.00
(3,473.00)
(24.62%)
P 326,661.50
(72,809.09)
(22.29%)
2013
2014
2013
44.13%
38.26%
312,660.50
294,855.70
25.14%
25.68%
382,209.50
414,109.50
30.73%
36.06%
100.00%
100.00%
6.83%
12.50%
93.17%
87.50%
and prepayments
Property and equipment
Total Assets
P 1,243,637.63 P 1,148,288.92
P 85,002.23
Penarroyo,Capital
1,158,635.40
P 143,505.93
1,004,782.99
P 1,243,637.63 P 1,148,288.92
100.00%
100.00%
2014
2013
Capital
2013
P 2,420,314.90 P 3,408,671.17
100.00%
100.00%
Cost of Revenues
1,331,173.20
2,095,202.70
Gross Profit
1,089,141.70
1,313,468.47
45.00%
38.53%
824,658.29
972,702.97
34.07%
28.54%
264,483.41
340,765.50
10,631.00
P 253,852.41
(55.00%) (61.47%)
10.93%
9.99%
14,104.00
0.44%
0.41%
P 326,661.50
10.49%
9.58%
Ratio Analysis
2013
1,313,468.47/ 3,408,671.17= 38.53%
Operating Ratio:
2014
264,483.41/2,420,314.90= 10.93%
2013
340,765.50/3,408,671.17= 9.99%
Return on Sales:
2014
253,852.41/2,420,314.90= 10.49%
2013
326,661.50/3,408,671.17= 9.58%
All ratios show that 2014 is more efficient in its control and management of costs and
expenses than in 2013, making it more a profitable year.
Return on Average Assets:
2014
253,852.41/1,817,782.09= 13.96%
2013
326,661.50/1,148,288.92= 28.45%
1,148,288.92
Assets in 2013 are being used profitably by the business than in 2014.
Rate of Return on Equity:
2014
253,852.41/1,661,026.90= 15.28%
2013
326,661.50/1,004,782.99= 32.51%
Average Capital:
(1,158,635.40+1,004,782.99)/2= 1,661,026.90
1,004,782.99
This means that the shop in 2013 earned 32.51% on owners investment compared to
15.28% in 2014. The shop was earning a better profit for the owner in 2013.
Working Capital:
2014
P 861,428.13-P 85,002.23= P 776,425.90
2013
P 734,179.42-P 143,505.93= P 590,673.49
2013
734,179.42/143,505.93= 5.12:1
This means that the business has P 10.13 of current assets to pay for peso of current
liability in 2014, lower at P 5.12 of currents assets available to pay for a peso of current
liability in 2013. Both periods show that the company is very liquid.
Acid test Ratio:
2014
651,288.03/85,002.23= 7.66:1
2013
563,949.22/143,505.93= 3.93:1
This means that the business has P 7.66 quick assets in 2014 to pay for a peso of
current liability, whereas in 2013 it was lower at P 3.93 for a peso of current liability.
Based on its quick assets the business is very liquid in both years.
Receivable turnover:
2014
2,420,314.90/113,572.95= 21.31 times
2013
3,408,671.17/124,625.50= 27.35 times
Average Receivable:
2014
(102,520.40+124,625.50)/2= 113,572.95
2013
124,625.50
Collection period:
2014
365/21.31 times= 17 days
2013
365/27.35 times= 13 days
Based on the turnover rate and days collection period, the business was more efficient
in collecting their receivables in 2013 because the turnover is higher at 27.35 times and
the collection period is lower at 13 days.
Inventory turnover:
2014
1,331,173.20/170,185.15= 7.82 times
2013
2,095,202.70/150,230.20= 13.95 times
Holding period:
2014
2013
Average Receivable:
2014
2013
(190,140.10+150,230.20)/2= 170,185.15
150,230.20
It shows that the business took 47 days in 2014 to dispose the goods the business was
more efficient in moving out the goods in 2013.
Asset turnover:
2014
2,420,314.90/1,817,782.09= 1.33 times
2013
3,408,671.17/1,148,288.92= 2.97 times
1,148,288.92
Based on the turnover rates, the business was more efficient in 2013 than in 2014 when
assets were used 2.97 times while in 2014 the assets were used 1.33 times.
Debt ratio:
2014
85,002.23/1,243,637.63x100= 6.83%
2013
143,505.93/1,148,288.92x100= 12.50%
The ratio indicates the business is leaning on borrowed funds at 6.83%, and more so in
2013 at 12.50%.
Equity ratio:
2014
1,158,635.40/1,243,637.63x100= 93.17%
2013
1,004,782.99/1,148,288.92x100= 87.50%
This means that investors rather than debt are currently funding more assets. 93.17
percent of the company's assets in 2014 are owned by shareholders and not creditors,
this is a healthy ratio.