CASH FLOW OF THE GMA

Cash flow provides relevant information about the cash receipt and the
payments of a firm during a period of time. This is receipt of payments can
classified into 3 major activities of the company and these are the operating,
investing, financing activities. With this three major activities it can show the inflow
and outflow of the cash of the company. It is an activities that is directly affects the
organizations cash inflow and outflow, and determine its net income and this is
what we called the operating activities. Based on the graph above the GMA Network
Incorporation tells that in the year 2015 got the highest operating activities
compare the two consecutive previous year, with the amount of Php.
3,462,383,581. During the year of 2013, the GMA Network Incorporation got the
operating activity of Php. 3,055,309 and they got a lowest amount of operating
activities in the year 2014 it has Php.662,537,677. But this is not shows negativity
to the company, because they able to regain their loss on the year 2015. Operating
activities were, well managed for it to takes an increase from year 2013-2015. When
it comes in investing activities, it is the transactions involving sale or purchase of
equipment and other assets. By the year 2013 GMA Network Incorporation got the
negative amount of -66,085,450 and for the year 2014, they have a high amount of
negativity that has -553,667,152 but from the negativity they decreased it during
the year 2015 and they have -539,574,212. So that investing activity still increase
even though it is in the negative amount. While in the financing activities, tells that
this is the iniatives transaction and event. In this activities GMA Network
Incorporation get the lowest amount during the year 2014. They only have
-262,006,707 while the largest amount of this activity of the GMA Network
Incorporation was the year 2015 which has -2,392,276,695 and as the year 2013 te
company get an amount of -1,941,8677,587.

CASHFLOW OF ABS CBN

Incomings and outgoings of cash, represents the operating activities,
investing activities and financing activities of ABS CBN Network Corporation. Cash
flow from operating activities shows cash receipts and payments resulting from
transactions associated with the determination of net income of a firm. In the case
of ABS CBN, as of 2013 it seems like they gain a higher amount which is P 8055060,
but as of 2014 it decrease to P 4 832 591. Though the company overcome
negativity because as of 2015. They gained 7568362 while it seems like the year of
2013 it has a large amount of increase. As we go to the cash flow on investing
activities it signifies the cash receipts and payments results from transactions
associated with acquisition or sale of permanent (non-current) assets. This company
shows that it has 5613387 as of 2013, it is negative to the company because it has
high amount of cash out. For the year 2014, the ABS CBN has a higher amount of
6414991. And, as of 2015, it has a highest negativity of -7776158. It shows that the
investing activities Althroughout the year 2013 to 2015 has a negative effect to the
company. In terms of financing activities shows that the cast receipts and payments
resulting from transactions affecting equity and debt of the firm. For ABS CBN

Network Corporation, for the year 2013 they still have an equity with an amount of
1575332. In the year of 2014, there has a positive change in equity which is
4228526 there has a good effect on the transaction of their activities. But the
company has negative equity because the debt of the firm which has the amount of
-1514246 in the year 2015.

Total Assets of ABS CBN Network Corporation

Based on the graph above, it can be interpreted that the total asset of the
ABS CBN becomes higher and higher, it is increasing progressively and quickly
which has good effects because it helps to maintain the smooth flow of their
operations and it will yield in high return for the corporation. From the year 2015, its
total asset 58329816 and it increases to 67236820 from the year 2014 and the next
year it increases to 70424104. It proves that the assets of the ABS CBN is growing
faster which results in the progressiveness.

Total Assets of GMA Network Incorporation

The graphical presentation indicates that the total assets of the GMA changes
slowly, from the year 2013 it has 13083936951 total assets, in the next year It turn
into 14020405848 and in the year 2014 there is just small changes, it has
14415541935. Although the total assets of the GMA is not changing rapidly but the
amount of their asset is in billion compare to other corporations and it maintains the
stable condition of their asset.

Total Liabilities of the ABS CBN Network Corporation

This graph indicates that the liabilities of ABS CBN Network Corporation
increases slightly, because the corporation is much exposed to wide scale of
operation, so they really need to pay their debts such as accounts payable and
income tax. From the year 2013, it has 32407059 and it increases to 40361992 in
the year 2014 and it increases again to 41708778. It shows that the debts of this
corporation must be, observe closely and it should monitor to avoid debt bondage.
Total Liabilities of the GMA Network Incorporation
Based on the graph above it clearly shows that the liabilities of the GMA
Network Incorporation drastically increases from the year 2013 it only has
425863770 but in the next year 2014 it becomes 5787421819 and in the year 2015
it drop down little bit to 5333421819.

Net Income of ABS CBN Network Corporation

Based on the graph above of net income of ABS CBN Network Corporation, it
increases slightly which is favourable for a corporation. It serves as their sales or
profit from the year 2013 it has 2028347 in the next year it turn into 2030136 and
in the year 2015 it increases again to 2545134. This shows that this corporation is
having a profitable net income because they have a good performance.

Net Income of GMA Network Incorporation

The graph indicates that in the year 2014 that it drops down a little bit from
the year 2015 which has an amount of 1,009,519,244. But in the year 2015 it
becomes multiple it has 2125828507. This shows that even though this corporation
decreases for the 2014 they make a way on hour to generates there net income.

Total Equity of ABS CBN Network Corporation

It represents that the amount of which the company is finance through
common and preferred shares. Based on the graph above, the ABS CBN Network
Corporation for the year the 2015 it has the higher degree of achieving the total
debt equity of 28,715,326 followed by the year 2014, 26,874,828 and the 2013 has
25,992,757. The total debt equity is still increasing year by year. It tends to increase
quickly and it is good to the company to have the higher earnings. ABS CBN
Corporation has a good management and operation that is why they increase year
by year.
On the other hand, ABS CBN
by
. Negative percentage of the
equity is not good for the company comparing the two,
has a better
record.

Total Equity of GMA Network Incorporation

For the GMA Network Incorporation, the graph shows that, for the year 2014
it has a lowest amount of total debt equity and for the higher portion, it was attain
by on the year 2015. The total equity tends to increase quickly from 8,233,195,174
up to 9,082,120,116. It is due to the increase of retained earnings to the year 2015,
it is good to the company to have the higher earnings which they can execute
operation or expenses that can contribute to the progress of the company.

Total Revenue of ABS CBN Network Corporation

Revenue is an amount of money that the company is actually receives during

a specific period, including discounts and deductions for returned merchandise. The
graph shows that the revenue of the ABS CBN in the year 2015, it has 38,228,115
higher than the year 2014, 33543628 and for the year 2013 it has the lowest
amount of 33,377,904. It is clearly shows that the ABS CBN has a changes for every
year.

Total Revenue of GMA Network Incorporation

The graph represents to the Total Revenue of GMA Network Incorporation for
the three executive year has experience the increase and decrease. That for the
year 2013 it has a total revenue of 12,950,879,322 and it is decrease on the next
year. Wherein the year 2014, it has 11,982,838,346, and when the time goes by it
was improve their has a changes in terms of total revenue wherein for the year
2014-2015 it has the increase of revenue for the total of
. Therefore for the
three executive year, 2015 has the higher revenue, there has a good management
and inside the GMA Network Incorporation.
YEAR 2015
1. It tell us, that the ABS-CBN Corporation has the higher current ratio than the GMA
Incorporation. Because ABS-CBN has a total current ratio of 1.88 and the GMA
Incorporation has 1.87.
2.
3. The total debt equity of the two companies is 1.45 and 0.59. Since the ABS-CBN
Corporation got the higher total debt equity of 1.45, and the GMA Incorporation got
the lowest total debt equity of 0.59.
4. ABS-CBN Corporation has a 1.38 debt to total assets and GMA Incorporation also
has 0.37. It is clearly shows that the ABS-CBN Corp. got the higher debt to total
assets than the GMA Inc.
5. When we compare the two different Network. From the ABS-CBN Corp. it has the
_____ than the GMA Inc. in terms of interest coverage.
6. It is state that the ABS-CBN Corp. has a higher receivable turnover than the GMA
Inc. Though the GMA has a greater receivable it is shows as that this is the higher
in terms of receivable turnover.
7. In terms of RTD we can notice that the GMA Inc. has a higher receivable turnover
in days. Wherein the more receivable their collected, it takes less day that they can
spend from it.
8.
9.

10. It shows that the GMA INC. goes high than the ABS-CBN Corp. It is clearly shows
that the GMA got the highest degree in term of total asset turnover.
11. It is said that the Net Profit Margin is well generate. It shows that the GMA got
the highest degree than the ABS-CBN.
12. Since, the GMA got the higher ROI in the year 2015. It represents that the ABSCBN cannot process and mange properly like the GMA.
13. As you observe ABS-CBN Corp. has the highest degree of ROE in the year 2015.
It is clearly present that it has a big different between the ROE of ABS-CBN Corp.

YEAR 2013
1.

Ratio

ABS-CBN

GMA

Current

1.76

2.15

Debt to Equity

8.08

0.48

Debt to Total
Assets

3.59

0.33

Interest
Coverage

3.78

44.95

Receivable

4.01

3.7

Analysis
Based on the year 2013 of current ratio of
the two corporations. It shows that GMA
Network Incorporation has a higher ratio.
Which is favourable because it has a good
degree of liquidity and they can quickly cover
up there liabilities
It shows that the ABS- CBN has higher debt
to equity compare to GMA wherein it is
unfavourable because there are more
liabilities to cover up.
It clearly indicates that the ABS-CBN has
higher debt to total assets, which means that
it has more capability to cover every interest
charges and interest earned.
Based on this, it implies that the GMA has
higher interest coverage compare to ABSCBN that dropped down drastically, wherein
it is favourable because they can cover
easily there interest payments.
It tells that the ABS-CBN has higher

receivable turnover where in it has a good

effects to the corporation.
It indicates that the GMA has higher
Receivable
99
receivable turnover in days compare to ABSTurnover in
92 days
days CBN, where in more receivables collected
Days
the more it becomes outstanding.
It shows that the GMA has higher total asset
turn over compare to ABS-CBN, where in it is
Total Assets
0.57
0.99
good because the corporation can receive
Turnover
the accounts receivable that have been
turned over into cash.
It shows that the GMA has a higher net profit
Net Profit
margin than ABS-CBN in which it is
0.06
0.13
Margin
favourable because it shows how much
profits are generated.
It indicates that the GMA has higher return
Return on
0.13
on investment compare to ABS-CBN, where
0.03
Investment
in it has higher profitability per dollar of sales
but lower in return on investment.
It represents that the GMA has higher ROE
Return on
compare to ABS-CBN in which it is
0.08
0.19
Equity
favourable because it shows much revenue
were yielded
Comparison of ABS-CBN Network Corporation and GMA Network Incorporation
Turnover

Year 2013

Comparison of ABS-CBN Network Corporation and GMA Network Incorporation

Ratio

Current

ABSCBN

1.88

GMA

1.87

Debt to Equity

1.45

0.59

Debt to Total Assets

1.38

0.37

Interest Coverage

0.44

74.90

Receivable
Turnover

3.31

3.13

Receivable
Turnover in Days

111
days

117 days

Total Assets
Turnover

0.54

0.95

Net Profit Margin

0.07

0.15

Return on
Investment

0.04

0.15

Return on Equity

8.85

0.23

Analysis
It tell us, that the ABS-CBN Network
Corporation has the higher current ratio
than the GMA Incorporation. Because
ABS-CBN has a total current ratio of 1.88
and the GMA Network Incorporation has
1.87.
The ABS-CBN Corporation got the higher
total debt equity of 1.45 compare to the
GMA Incorporation that got lower total
debt equity of 0.59.
ABS-CBN Corporation has a 1.38 debt to
total assets and GMA Incorporation also
has 0.37. It is clearly shows that the
ABS-CBN Corp. got the higher debt to
total assets than the GMA Inc.
Based on this it represent that the GMA
got the higher interest coverage
compare to ABS-CBN
It is state that the ABS-CBN Corp. has a
higher receivable turnover than the GMA
Inc., where in the more account
receivable that being turnover brings
good effect to the corporation.
The GMA Inc. has a higher receivable
turnover in days compare to ABS-CBN,
wherein the more receivable collected, it
takes less day that they can spend from
it.

It signifies that the GMA has a higher total

assets turnover compare to ABS-CBN.
It shows that the GMA got the higher Net
Profit Margin than the ABS-CBN, wherein
the higher the better because it results
in a well generated.
It represents that the GMA got the
higher Return on Investment compare to
ABS-CBN. It has a big impact to the GMA
because they will receive more return
on investment.
The ABS-CBN Corp. has the higher
Return of Equity compare to GMA that
has a very low ROI.

Year 2015

Ratio

ABS-CBN

GMA

Current

2.07

1.90

Debt to Equity

1.50

0.70

Debt to Total Assets

0.60

0.41

Interest Coverage

3.30

40.08

Receivable
Turnover

3.13

2.6

117 days

141 days

Receivable
Turnover in Days

Total Assets
Turnover

0.50

0.85

Net Profit Margin

0.06

0.08

Return on
Investment

0.03

0.72

Analysis
Based on the analysis for the year
2014 of the ABS-CBN and GMA
Networking Incorporation when it
comes to their current ratio it
shows that ABS-CBN has a
higher ratio compare to the GMA,
it is favourable on the part of the
ABS-CBN so can cover up their
liabilities.
Upon the observation it shows
that the ABS-CBN has a higher
debt to equity the GMA it is
unfavourable to the part of ABSCBN because there are more
liabilities to cover it up.
It clearly shows that ABS-CBN is
higher in terms of debt to total
asset in which they have the
ability to cover every interest
change and interest earned.
Based on this, the GMA has the
higher receivable turnover
compare to the GMA. In which it
brings good effects the
corporation.
GMA Network has the higher
receivables turnover days wherein
more receivables was collected,
the more days to collect the more
it becomes outstanding.

It signifies that GMA has a larger

to total asset turnover compare to
the ABS-CBN it is favourable to
the GMA because it will result the
amounts receivables that being
turned over into cash.
It shows that the GMA has the
higher net profit which is
favourable to the corporation
because it will help to know how
much corporation can generate
cash.
It indicates that GMA Corporation
has a higher return on investment
wherein it has the capability of
having a higher profitability in
terms of sales.
GMA Corporation has a higher
return on equity compare to ABS

Comparison of ABS-CBN Network Corporation and GMA Network Incorporation

Year 2015