Industry average

Trade receivable turnover

In comparing the trade receivable turnover ratio of Shakey’s and Max’s

company, it shows that Max’s is more effective in extending credits and in collecting
debts than Shakey’s because the longer the company collects it credit sales the more
money losses in the firm. Moreover, Shakey’s is longer than the average industry of
38.58%, in that the company is more prone in uncollectible accounts.

Earnings per share

In comparing the earnings per share of Shakey’s and Max’s company, it shows
that the Max’s is more profitable that Shakey’s because Max’s share earn more value if
the entity distributed its profit for every outstanding share the shareholder have.

The shakey’s 2017 earnings per share is P.50. That is for every one share that the
shareholder have will generate P.50 from it. The average business shows an earnings per
share of 4.18 per share. That is for every share the investor will earn P4.18 for the share
they have. As a result, shareholders of the Shakey’s may have been unhappy because
in the same industry they can earn 4.18 per share of every outstanding share they have.
This can be said that the Shakey’s less profitable than the other business with the same
operation.

Dividend yield

In comparing the dividend yield of Shakey’s and Max’s company, it shows that
Max’s and Shakey’s is both unacceptable for the point view of the investor because
the this lower that the average industry of 85.71% because the for every earnings
through dividend income only P.01 profit can be generate compared to the average
industry of P.07. This can be said that the Shakey’s is earnings can be yield for every
dividend received is less than others.

Price/Earnings ratio

In comparing the price/earnings ratio of Shakey’s and Max’s company, it shows

that Max’s is less valuable than Shakey’s because Max’s stock have lower market
value so it can be sold through lower prices.

The Shakey’s 2017 price/earnings ratio is 27.04. TAhat is for every stock it can
generate a 27.04 times earnings in the future in the point of the shareholder. This is
lower than average business of 47.66. it maybe because of the under-valued assets
of the entity so there is possible growth of return in the investor that will make investor
satisfied with their investments.
The Shakey’s 20117 debt-to-equity ratio is 1.29. That is, for every $1.00 invested by the
company's owners, investors such as bank and suppliers have invested P1.37 into the
company. In 2017, the average business shows a debt-to-equity ratio of 0.12 or 12%. That
is, for every $1.00 invested by the company's owners, investors such as banks have
invested 12 cents into the company. As a result, creditors of the Shakey’s have invested
more than the owners of the company. On the other hand, other firms within the industry
see its owners investing more than creditors. This ratio certainly indicates that the Shakey’s
heavily relies on its creditors (rather than its owners) to finance the operation. Moreover,
a debt-to-equity ratio of 1.29 is unacceptable, because A company with a higher ratio
than its industry average, therefore, may have difficulty