Short-Term Analysis

Short-term Analysis
Based on the horizontal analysis of the Globe Telecom in 2016, the percentage increase in total
current assets (12.64%) was lower than the percentage increase in the current liabilities (25.75%).
One of the reasons in this is that there has been an increase in the payables and the provisions.
Another reason is the decrease of the derivative assets. While in 2017, the percentage increase in
total current assets (22.18%) is higher than the percentage increase of the total current liabilities
(21.25%). This is because of the increase in the receivables and the prepayments. There is a high
increase in the accounts receivable but a decrease in the cash and cash equivalents. This might
indicate that the company is having a hard time collecting the receivables.
Long-Term Financial Position Analysis
Based on the horizontal analysis of the Globe Telecom in 2016, the percentage increase in total
noncurrent assets (32.46%) is lower than the percentage increase of the noncurrent liabilities
(46.97%). This is because of the significant increase in the long term debt, deferred income tax
and the other long term liabilities. Although there had been a high increase in the investment
property and derivative assets, the increase in the current liabilities were much greater.
Operating Efficiency and Profitability Analysis
As shown in the statement of income of the Globe Telecom, revenues as well as the cost of sales
were increasing through the years, but the increase in the costs exceeds the increase in the sales
which means that the company must eliminate some of the costs that are not relevant. The net
income is also decreasing through the years. Overall, the performance of the Globe Telecom in
terms of profitability or operating performance was low compared to their performance in the year
2016 and 2015.
Evaluation of Financial Position
The statement of financial position of the Globe Telecom shows that the main factor of its total
asset was the receivables. The cash was only 0.44% of the total asset. It can be observed that the
total liabilities of the company compared to the total asset was 76.04% which increases throughout
the years. On the other hand, the equity decreases from 30.35% to 25.40% and to 23.96%. This
can be viewed as an unfavorable event because the company has more liabilities to pay than the
capital it owns.
Evaluation of Profitability
Unfavorable changes can be observed in the gross profit of the Globe Telecom. Although it has an
increasing amount of sales, the cost of sales were also increasing. Because of this, the net income
declined throughout the years. This can be due to some expenses that can possibly be reduced to
earn much more income.
Short-Term Liquidity and Activity
Short-term liquidity analysis is of particular significance to trade and short-term creditors,
management and other parties concerned with the ability of a firm to meet near term demands for
cash. Globe Telecom’s current ratio and quick ratio, increased throughout the years. While its
working capital decreased in 2016 then increased in 2017, but still shows a negative figure. The
companys receivables has increased its turnovers from 0.71 to 0.84 then 1.03. The days of
collection also shortened from 514 days to 434 then 354. The asset turnover has increased, but the
working capital turnover has not. Its capital intensity ratio has.
Long-Term Solvency
Leverage ratios are ratios that measure the extent of a firm’s financing, with debt relative to equity
and its ability to cover interest and other fixed charges such as rent and sinking fund payments.
Globe Telecom’s debt ratio increased as well as the debt to equity ratio, but this was because of
the decline in the equity ratio which indicated that the company has more liabilities than its equity,
implying a slightly riskier capital structure. Return on asset decreased as well as the earnings per
share.
Short-term Analysis
Based on the horizontal analysis of McDonalds, the percentage increase in total current assets
(44.76%) was higher than the percentage increase in the current liabilities (2.03%). One of the
reasons in this is that there has been an increase in cash of the company and a decrease in the
liabilities held for business. The company has also increased its prepaid expenses.
Based on the horizontal analysis of McDonalds, the company’s investments have increased, as
well as the miscellaneous and the fixed assets. While its long term assets are increasing, its long
term liabilities are also increasing. This might indicate that the payment for the fixed assets were
long term payments.
As shown in the statement of income of McDonalds, the sales have declined throughout the years,
but, its costs are decreasing, leading to increasing percentages in the operating income.
The statement of financial position of McDonalds shows that the main factor of its total assets are
its fixed assets. Possibly because these fast food chain uses lots of machine to produce and cook
food. It maintains a low amount of inventories. The company’s equity is larger compared to its
liabilities. Although its long term income taxes show a very high amount, its retained earning
shows a higher amount.
The company is experiencing an increase in its net income throughout the years. But this does not
automatically say that this is a good thing because, if you look into their statement, you can see
that the sales are declining throughout the years. The increase in the net income was not due to the
increased sales but due to the decrease in the expenses. Decreasing the expenses is a good thing,
but, the company must do something about their declining sales.
cash. McDonalds current ratio increased, as well as the quick ratio, working capital, and the cash
flow liquidity ratio. This means that the company can pay its current liabilities with the said assets.
Its accounts receivable turnover have decreased which means that collection of the receivables is
harder than before. Its free cash flow has decreased through the following years, as well as the
asset turnover. On the other hand, its working capital turnover had increased which indicates that
its capital is being efficiently used to produce sales.
Long-Term Solvency
McDonalds debt ratio increased as well as the equity and debt to equity ratio. But, its fixed asset
to total equity decreased.
Operating Efficiency and Profitability

The operating profit margin increased, as well as the net profit margin but its cash flow margin
have been declining in the past 3 years. Return on assets have been increasing due to the proper
utilization of the assets, as well as the equity. The earnings per share also increased from 4.8 to
5.44 and then to 6.37
Short-term Analysis
Based on the horizontal analysis of Coca-Cola, the percentage increase in its current assets
(31.79%) is smaller than the increase in the percentage increase in the current liabilities (82.40%).
It is because of the decrease in the financial assets, and the increase in current portion of non-
current debt, as well as the other current financial liabilities.
Based on the horizontal analysis of Coca Cola, the percentage increase in its noncurrent assets
(36.90%) is larger the percentage increase in the long term liabilities (25.82%). This indicates that
the company’s equity s larger than its long term liabilities.
As shown in the statement of income of Coca Cola, the sales have increased throughout the years,
but, its costs are decreasing, leading to increasing percentages in the operating income. Increasing
profit, and decreasing expenses is good, but they must definitely make a move about their
decreasing sales. Adding up new flavors or freebies would be a good thing.
The statement of financial position of Coca Cola shows that the big factor in its assets are the non
current assets which is 80.52% of the total assets. This is probably because machines are needed
to produce the products. On the other hand, the company’s equity and liabilities are almost equal.
The company is experiencing an increase in its sale throughout the years, but if you look further
into their statement, you will see that the net income of the company is very small.
cash. Coca Cola’s current ratio decreased, as well as the working capital and the cash flow liquidity
ratio. One possibility of this is a high amount of liabilities which is lower than the current ratios.
Long-Term Solvency
Coca cola’s debt ratio decreased on the year 2017. While the equity ratio increased, as well as the
fixed asset to total equity and fixed asset to total equity.

The operating profit margin decreased, and the decrease was too bad that the profit had a negative
balance. Although it has a big gross profit margin, still, its operating and net profit margin is
negative. Cash flow margin increased in 2016 then decreased in 2017. The return on asset for the
year also indicated a negative balance as well as the return on equity, and earnings per share.
Short-term Analysis
Based on the horizontal analysis of Honda, the percentage increase in its current assets (4.12%) is
higher than the increase in the percentage increase in the current liabilities (2.41%). It is because
the company invests more on its long-term assets and its non-current liabilities.
Based on the horizontal analysis of Honda, the percentage increase in its noncurrent assets (2.25%)
is lower the percentage increase in the long term liabilities (3.79%). This indicates that the
company’s liabilities and equity are growing very slowly.
As shown in the statement of income of Honda, its sales and cost of sales increased in 2016 then
decreased in 2017 while its profit for the year decreased in 2016 then increased in 2017.
The statement of financial position of Honda shows that the big factor in its assets are the property,
plant and equipment, followed by the cash and cash equivalents.
The company’s sales increased in 2016 then decrease in 2017 but it didn’t stop the company to
gain an increasing amount of net profit. I think the company studied thoroughly the cost of sales
or the expenses to remove non.-value added activities.
cash. Honda’s current ratio decreased in 2016 then increase in 2017. Its quick acid test ratio stayed
the same for the 2 following years. The company’s working capital had a great increase. But its
cash flow liquidity ratio decreased.
Long-Term Solvency
Honda’s debt ratio decreased on the year 2017. While the equity ratio increased, the fixed asset to
total equity decreased and fixed asset to total asset remained the same for three years.

The operating profit margin increased, as well as the net income, and cash flow margin. But their
amounts were small compared to the net sales. (2017 net sales = 13,999,200; OPM = 6.01%
Short-term Analysis
Based on the horizontal analysis of Philippine Business Bank, the percentage increase in current
assets is lower than the percentage increase of the current liabilities. But the percentage increase
was just 1 point. This is probably because more customer opened up bank accounts and save money
rather than customers get their credit cards or loans.
In long term, it is also the same with short term, which is that, the percentage increase in non-
current assets is lower than the percentage increase of long term liabilities.
As shown in the income statement of the Philippine Business Bank, its loans and other receivable
are continually increasing throughout the years. But its trading and investment securities and the
due from the BSP as well. This is probably because they already got it. Deposit liabilities are also
increasing throughout the years, which means, that there are more customers for the past few years.
But the net profit for 2017 was lower than the 2016’, although it was just a small amount.
The statement of financial position of PBB shows that the bank premises, furniture, fixtures and
equipment has the largest amount in the assets followed by the receivables, then its cash.
As shown in the income statement of the company, The sales/revenue were mostly from the loans
and other receivables. It can be seen that the profit was almost ¼ of the total sales.
cash. PBB’s current ratio stayed the same for three consecutive years. While the quick acid test
ratio was increasing throughout the year
Long-Term Solvency
PBB’s debt ratio increased, but its equity ratio decreased. The debt to equity ratio also showed an
increasing balance.

The operating profit margin increased as well as the net profit margin, and cash flow margin but
the return on asset and equity both decreased.
Short-term Analysis
Based on the horizontal analysis of BDO, the percentage increase in current assets is greater than
the percentage increase of the current liabilities. The largest figure in its assets is the loans and
other receivables followed by the due from the BSP.
The long term accounts in the statements were almost the same with the short term. The percentage
increase in liabilities was lower than the assets.
As shown in the income statement of the BDO, interest income was growing throughout the years,
as well as the expenses. But the growth of the income is larger than the growth of the expenses,
leading to an increasing amount of net profit.
The statement of financial position of BDO shows that the largest amount in the asset is the loans
and other receivables followed by the due from the BSP.
As shown in the income statement of the company, the income was increasing throughout the
years. I also saw the percentage of operating expenses which is almost 80% of the total income.
cash. BDO’s current and quick ratio increased for 0.02, as well as the working capital. The A/R
turnover was low, indicating that the company has a hard time collecting payments.
Long-Term Solvency
BDO’s debt ratio decreased but its equity ratio increased. Meaning that, the company relied more
on its equity rather than its own equity.

The operating profit margin, and the net profit margin both shoved a decrease for just 1 to 2. The
return on asset and equity decreased as well.
Short-term Analysis
Based on the horizontal analysis of the Metro Retail Stores Group, we can observe that both the
current assets and current liabilities are increased but still, the current liabilities increased more.
This is because of the non-controlling interest that was added in 2017.
Based on the horizontal analysis of the Metro Retail Stores Group, we can observe that the non-
current assets increased more than the long-term liabilities. This is because of the increase in the
fixed assets and the defined benefit assets.
As shown in the income statement of the Metro Retail Stores Group, we can see that sales have
increased from 2015 up to 2017. But, as the sales increased, the cost of sales increased too. We
can observe that the net earnings increased from the past few years.
The statement of financial position of the Metro Retail Stores Group shows that the non-current
assets hold the larger part of the assets, as well as the long term liabilities in the total liabilities.
The largest account in the current assets is the inventories, because this company is a trading one.
The largest account in the current liabilities is the accounts payable, probably because they don’t
pay in cash, but in credit for the goods they buy from their supplier.
As shown in the income statement of the company, the sales were increasing throughout the years.
But as we can see, 92.67% of this sales is for the cost of sales and the net earnings is 4.62% only.
cash. The current ratio of the company increased on 2016 then decreased in 2017. This is a good
standing because they can pay their current liabilities if something happens. The quick ratio
increased throughout the years but it is still not on a good standing because it didn’t even reach
half of a liability. The working capital increased on 2016 then decreased on 2019. While the cash
flow liquidity ratio for 2015 and 2017 were the same, but was highest on 2016. A/R turnover is on
a good state, as well as the average collection period.
Long-Term Solvency
The company’s debt ratio increased last 2016, then decreased on 2017. The equity ratio was highest
on 2015 then decreased on 2016, and increased on 2017. The debt to equity ratio is on a good
standing because it can pay its liabilities, with some to spare. The fixed asset to total equity
increased on 2015 then decreased on 2019. While the fixed asset to total asset increased.

The operating profit margin were increasing throughout the years as well as the net profit margin.
The cash flow margin decreased, as well as the return on asset and equity. The earnings per share
increased as time went by.
Short-term Analysis
Based on the horizontal analysis of the Ayala Group of Companies, the current assets increased
more than the current liabilities. This was because of the significant increase in short-term
investments, and the other current assets. On the other hand, the income tax payable decreased as
well as the long-term debt.
Based on the horizontal analysis of the Ayala Group of Companies, the noncurrent assets increased
less than the noncurrent liabilities. This was because of the significant increase in the long-term
debt. While on the assets, there had been a big increase in the intangible assets and the service
concession, as well as the property, plant, and equipment, investment property, investments in
associate, and the land improvements.
As shown in the income statement of the Ayala Group of Companies, sales were increasing from
the past few years up to now. Because of this, the cost of sales had a significant increase. The
general and administrative expense also increased in a large amount as well as the cost of rendering
services.
The statement of financial position of the Metro Retail Stores Group shows that the non-current
assets hold the larger part in the 2017 financial statement. The largest account in the current assets
is the accounts and notes receivable. While in the non-current assets is the investments in associate
and joint ventures.
As shown in the income statement of the company, the sales were increasing throughout the years.
And only 23.82% is the cost of rendering services, but the cost of sales is almost half of the total
sales/net sales. And the net income for 2017 is 18.69% which is not bad.
cash. The current ratio of the company decreased on 2016 but increased on 207. This is favorable
because the company can pay its current liabilities with its total current assets. The company’s
quick/acid test ratio was highest last 2015 then decreased and increased in the following years.
The working capital also increased throughout the year, but the cash flow liquidity ratio has
decreased. The A/R turnover is good as well as the average collection period. The inventory
turnover didn’t reach 1. The free cash flow were negative amounts.
Long-Term Solvency
The company’s debt ratio increased but the equity ratio continually decreased. The debt to equity
ratio increases as well as the fixed asset to total equity and fixed asset to total asset. Fixed long
term liabilities were growing throughout the years.

The operating profit margin were decreasing as well as the net profit margin. The cash flow margin
increased in 2016 but decreased in 2017. The return on asset 5:% increased. While the return on
equity continually increased. Earnings per share increased as well. Dividend yield was highest on
2016 and lowest on 2017.

Short-Term Analysis

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Short-Term Analysis

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Short-term Analysis

Long-Term Financial Position Analysis

Operating Efficiency and Profitability Analysis

Long-Term Financial Position Analysis

Operating Efficiency and Profitability Analysis

Operating Efficiency and Profitability

Long-Term Financial Position Analysis

Operating Efficiency and Profitability Analysis

Operating Efficiency and Profitability

Long-Term Financial Position Analysis

Operating Efficiency and Profitability Analysis

Operating Efficiency and Profitability

Long-Term Financial Position Analysis

Operating Efficiency and Profitability Analysis

Operating Efficiency and Profitability

Long-Term Financial Position Analysis

Operating Efficiency and Profitability Analysis

Operating Efficiency and Profitability

Long-Term Financial Position Analysis

Operating Efficiency and Profitability Analysis

Operating Efficiency and Profitability

Long-Term Financial Position Analysis

Operating Efficiency and Profitability Analysis

Operating Efficiency and Profitability

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