1. PETRON CORPORATION
2. Search for their financial statements for year 2017 and 2018.
3. Perform vertical analysis.
4. Perform horizontal analysis.
5. Compute the following ratio:
Profitability ratio
a. net profit margin
b. return on equity
c.earnings per share
Liquidity ratio
a. current ratio
b. receivables turnover
Solvency ratio
a. debt to assets ratio
b. times interest earned ratio
PETRON CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Amounts in Million Pesos) ASSETS Current Assets Cash and cash equivalents Financial assets at fair value Investments in debt instruments Trade and other receivables - net Inventories Other current assets Total Current Assets Nencurrent Assets Investments in debt instruments Property. plant and equipment Investment property - net Deferred tax assets - net Goodwill - net Other noncurrent assets - net Total Noncurrent Assets LIABILITIES AND EQUITY Current Liabilities Short-term loans Liabilities for crude oil and 2018 P17,405 1,123 40 42,497 33,373 37,031 1 82,022 338 1 83,984 13,533 2 57 8,532 6,485 198,132 P353,154 P82,997 25,991 2017 P17,014 338 199 38,159 58,604 33,178 145,490 332 1 77,690 75 207 8,277 5,959 192,540 P338, 030 P89, 583 35, 920 petroleum products Trade and other payables 28,471 11,604 Derivative liabilities 614 1,791 Income tax payable 146 808 Current portion of long-term debt - net 17,799 3,789 Total Current Liabilities 156,018 124,495 Noncurrent Liabilities Long-term debt - net of current portion 100,201 97,916 Retirement benefits liability 2,433 4,885 Deferred tax liabilities - net 8,450 7,397 Asset retirement obligation 3,592 2,681 Other noncurrent liabilities 1,274 1,037 Total Noncurrent Liabilities 115,950 113,916 Equity Attributable to Equity Holders of the Parent Company P9,485 Capital stock P9,485 Additional paid-in capital 19,653 19,653 Capital securities 24,881 30,546 Retained earnings 49,491 49, 142 Equity reserves -14,031 -5, 171 Treasury stock -10,000 -10,000 Total Equity Attributable to Equity Holders of the Parent Company 79,479 93,655 Non-controlling Interests 6,707 5,964 Total Equity 86, 186 99.619 P358, 154 P338,030PETRON CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017 (Amounts in Million Pesos, Except Per Share Data) 2016 2017 2013 SALES P343340 P434524 P557,386 COST OF GOODS SOLD 306,125 391,969 522,824 GROSS PROFIT 37,715 42,655 34,562 SELLING AND ADMINISTRATIVE EXPENSES -1 3,918 -1 5.017 -1 5.641 INTEREST EXPENSE AND OTHER FINANCING CHARGES -7,557 -8,487 -9.689 INTEREST INCOME 507 535 706 SHARE IN NET INCOME OF AN ASSOCIATE 66 63 - OTHER INCOME (EXPENSES) - Net -2,435 -90? 517 -23.337 -23.813 -24.107 INCOME BEFORE INCOME TAX 14.3?8 18.842 10.455 INCOME TAX EXPENSE 3.556 4,755 3.386 NET INCOME P10.822 P1408? P1069 Attributabie to: Equity holders of the Parent Company P10.100 P12.739 P6318 Non-controlling interests 722 1.348 851 P10,822 P14,087 P7.069 BASIC/DILUTED EARNINGS PER COMMON SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT COMPANY P0.60 P0.86 PO.28 2017 2018 NET INCOME P10,822 P14,087 P7,069 OTHER COMPREHENSIVE INCOME (LOSS) Items that will not be reclassified to profit or loss Equity reserve for retirement -1, 142 -1,133 plan 2,647 Share in other comprehensive income of an associate and a joint venture 3 3 Income tax benefit (expense) 794 346 339 1,856 -793 -794 Items that may be reclassified to profit or loss -110 Net loss on cash flow hedges Exchange differences on 3,303 1,372 translation of foreign operations 523 Unrealized fair value losses on investments in debt -10 instruments at FVOCI -2 -4 Share in other comprehensive -1 loss of a joint venture Income tax benefit 36 522 3,299 1,288 OTHER COMPREHENSIVE 494 INCOME - Net of tax 2,378 2,506 TOTAL COMPREHENSIVE INCOME FOR THE YEAR - P7,563 Net of tax P13,200 P16,593 Attributable to: Equity holders of the Parent P14,772 P6,570 Company P12,742 Non-controlling interests 458 1,821 993 P13,200 P16,593 P7,563
