Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can you make financial recommendations regarding the financial health and growth of each company, namely PLDT Inc. and Globe Telecom, Inc., in terms of liquidity,

Can you make financial recommendations regarding the financial health and growth of each company, namely PLDT Inc. and Globe Telecom, Inc., in terms of liquidity, profitability, financial leverage, and efficiency based on the provided financial ratio analysis?

image text in transcribed
Financial Statement Analysis (Ratio) of PLDT Inc. and Globe Telecom, Inc. For Years Ended 2018 & 2019 PLDT INC. GLOBE TELECOM, INC. RATIO 2019 2018 2019 2018 LIQUIDITY 1 Current Ratio 0.4482 0.5169 0.7299 0.8602 2 Quick Ratio 0.4348 0.502 0.6742 0.8034 PROFITABILITY 3 Return on Equity 0.0614 0.0616 0.2747 0.2547 4 Return on Assets 0.0135 0.0143 0.0732 0.0621 5 Gross Profit Margin 0.9303 0.9107 0.8886 0.8876 6 Operating Profit Margin 0.411 0.4073 0.4442 0.3826 7 Net Profit Margin 0.1622 0.1709 0.1337 0. 1232 LEVERAGE 8 Debt Ratio 0.7785 0.7583 0.7330 0.7558 9 Debt to Equity Ratio 3.5148 3.1379 2.7453 3.0947 10 Time Interest Earned Ratio 4.8231 4.2932 6.2863 5.6213 EFFICIENCY 11 Accounts Receivable Turnover Ratio 7.278 5.6991 7.9758 6.2446 12 Average Collection Period 49 63 45 58 13 Inventory Turnover Ratio 5.427 5.6644 3.8783 4.6051 14 Average Age of Inventory 66 64 93 78 15 Accounts Payable Ratio 7.0203 8.5657 2.9118 4.3466 16 Average Age of Payable 51 42 124 83 17 | Operating Cycle 116 127 138 136 18 Cash Conversion Cycle 65 85 14 53 19 Total Asset Turnover Ratio 0.2556 0.2436 0.4385 0.4179 20 Fixed Asset Turnover Ratio 0.6016 0.5996 0.7520 0.7266

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting

Authors: William K. Carter

14th edition

759338094, 978-0759338098

Students also viewed these Accounting questions