Comparison Financial Percentages
For Possessing Companies inside the Philippines
Prof. Mesias Caguioa
Economic Management 1
Second Session A. Y. 2014-2015
Desk of Items
Overview of Financial Percentages
Common Size Evaluation
Overview of Ratios and Analysis
Financial analysis is the study of a business by a variety of points of views in order to fully understand the greater financial situation and determine how best to enhance the business. A financial analysis examines many aspects of the business from the profitability and stability to its solvency and fluid. В The crucial source of information for economic analysis may be the financial claims of a business. The economic analyst uses these documents to get ratios, create trend lines, and carry out comparisons against similar information for equivalent firms.
Financial analysis is one of the key tools needed by managers of a business to examine how their particular organization can be performing. For that reason, they are frequently querying the financial expert about earnings, cash goes, and other monetary aspects of all their business.
Through comparative economic analysis of top having companies inside the Philippines specifically, JG Peak Holdings, Incorporation (JGS), В GT Capital Holdings, Inc. (GTCAP) and Ayala Land Incorporation. / Cebu Holdings, Inc., this examine aims to know the dimensions of the following:
1 . To compare and butts the 2013 performance of each and every entity
This kind of objective where investors or perhaps creditors are interested in the trend of past revenue, cost of items sold, working expenses, net income, and revenue. These tendencies offer a means for judging management's past performance and are possible indicators of future functionality.
2 . To know and asses its earnings and progress prospects
Financial statement examination helps in determining and guessing the making prospects and growth rates in getting which are used by investors whilst comparing purchase alternatives and other users in judging generating potential of business enterprise.
several. To assess its operational effectiveness
The actual overall performance of the firm which are uncovered in the monetary statements could be compared with several standards collection earlier and the deviation of any between standards and actual performance can be used while the indicator of productivity of the managing.
4. To predict their bankruptcy or perhaps failure later on
Assessing and predicting bankruptcy and probability of organization failure using financial percentages and research are very vital that you give administration a warning or recognize whenever the corporation is not doing well as compared with its competition.
A possessing company is a company or firm that possesses other companies excellent stock. The idea refers to a firm which does not produce services or goods itself; rather, its purpose is to own shares of other companies. Keeping companies permit the reduction of risk for the owners and can allow the title and charge of a number of different firms.
The Philippine Stock market has an index named Keeping Firms. This kind of index mainly has the whole conglomerate that has shareholdings in businesses of numerous industries. В To name a few the likes of JGS(JG Summit) of the Gokingwei's, AC(Ayala Corp. ) of the Ayala's, SM(SM Investments) in the Sy's, LPZ(Lopez Group) of the Lopez's, and MPI(Metro Pacific Investments) of Manny Versus. Pangilinan of First Pacific cycles are the known holding firms in the Korea.
JG Summit Holdings, Incorporation. В is one of the main conglomerates in the Philippines, with business passions in Food and Drinks, Real Estate and Hotels, Air Transportation, Bank and Petrochemicals, as well as main investments in Real estate property, Telecommunications in addition to Power Division.
The business of JG Summit started in 1957 when Common Corn Goods, Inc. (now...