2Go Group Inc.

Statement of Financial Position

For the Fiscal year ended December 31, 2013 and 2014
PHP Millions

ASSETS
Current Assets

2014

2013

Php1,2
35

Php9
19

Total Accounts Receivable

5,013

4,870

Accounts Receivables, Net

3,074

2,504

Other Receivables

1,939

2,365

Inventories

878

422

Other Current Assets

170

134

7,295

6,345

Net Property, Plant & Equipment

5,404

5,055

Total Investments and Advances

259

199

Long-Term Note Receivable

Intangible Assets

81
280

109
266

Cash & Short Term Investments

Total Current Assets

Chang
e%
34.39
%
2.94%
22.76
%
18.01
%
108.06
%
26.87
%
14.97
%

Increase
or
Decrease
%

25.59%
2.85%
18.54%
-21.97%
51.94%
21.18%
13.02%

Non-Current Assets

Other Non-current Assets

Total Non-Current Assets

6,033

72
5,701

TOTAL ASSETS

13,918

12,527

1,540

1,381

Accounts Payable

2,439

2,167

Income Tax Payable

Other Current Liabilities

18
2,173

6
2,023

Total Current Liabilities

6,171

5,576

Liabilities & Shareholders' Equity

Current Liabilities
ST Debt & Current Portion LT Debt

6.90%
30.15
%
25.69
%
5.26%
87.50
%
5.82%
11.10
%

11.51
%
12.55
%
200.00
%
7.41%
10.67
%

6.46%
23.17%
-34.57%
5.00%
-700.00%
5.50%
9.99%

10.32%
11.15%
66.67%
6.90%
9.64%

Non-Current Liabilities

3,622

3,687

218

167

-589

-477

591

482

14

3,856
10,026

3,868
9,444

2,485
911

2,485
911

Long-Term Debt
Provision for Risks & Charges
Deferred Taxes
Deferred Taxes - Debit
Other Non-Current Liabilities

Total Non-Current Liabilities

TOTAL LIABILITIES
Equity
Common Stock Par/Carry Value
Additional Paid-In Capital/Capital Surplus

639

Retained Earnings
Cumulative Translation Adjustment/Unrealized For. Exch.
Gain
Unrealized Gain/Loss Marketable Securities
Other Appropriated Reserves
Treasury Stock
TOTAL SHAREHOLDERS' EQUITY
Accumulated Minority Interest
TOTAL EQUITY
LIABILITIES & SHAREHOLDERS' EQUITY

0.00%
0.00%
438.10
%
-189

-126
-3
-59

-92

-3
-59

3,852

3,058

40

25

3,892

3,083
12,52
7

13,918

1.76%
30.54
%
23.48
%
22.61
%
55.56
%
0.31%
6.16%

0.00%
36.96
%
0.00%
0.00%
25.96
%
60.00
%
26.24
%
11.10
%

2Go Group Inc.

Financial Ratios
For the Fiscal year ended December 31, 2014
Financial Health Ratio
Current ratio

1.18

Quick ratio

0.84

Debt total capital ratio

0.48

-1.79%
23.39%
19.02%
18.44%
35.71%
-0.31%
5.80%
0.00%
0.00%
129.58%
0.00%
26.98%
0.00%
0.00%
20.61%
37.50%
20.79%
9.99%

Debt equity ratio

0.94

Financial leverage

3.61

Total debt to equity

1.34

Efficiency Ratio
Days in sales

100.22

Days in inventory

19.51

Days in payment

132.11

Cash conversion cycle

-12.38

Receivable turnover

3.64

Inventory turnover

18.71

Payable turnover

2.76

Fixed assets turnover

2.76

Assets turnover

1.09

Gross margin

0.25

Operating margin

0.06

EBT margin

0.06

Tax rate

0.05

Net margin

0.06

Sales per employee

20,262,633.43

EBIT margin

0.06

EBITDA margin

0.06

Normalized net profit margin

0.06

2Go Group Inc.

SWOT Analysis
For the Fiscal year ended December 31, 2013 and 2014
Strengths
One of the companys strengths was Cash and Short Term investments. This
account has a change of 34.39% from 2013 to 2014 and it increased by 25.59% in
the current year.
Another strength is the companys other current assets. For the years 2013 to
2014, the company made a change of 26.87% and an increase of 21.18% from the
years respectively.

Other non-current liabilities is an account in this company that can be

considered as strength. The account had a change 55.56% and an increase of
35.71% from the years 2013 to 2014.

Weaknesses
Inventories is one of the accounts that I considered weaknesses. We can see
in the balance sheet that the company made an increase of 51.94% from 2013 to
2014 and made a change of 108.06% of the inventories from the current year.
I also considered Total Investments and advances as one of the companys
weaknesses. Investments showed an increase of 23.17 and had a change of 30.15%
from the year 2013 to 2014.
Another weakness of this company is their Income tax payable. The
companys income tax payable accumulated an increase of 66.67% and had an
abrupt change of 200% over the year of 2013 to 2014.
Another account under weaknesses for this company is the Intangible assets.
The company Intangible assets showed an increase of 5% and a change of 5.26%
from years 2013 to 2014.
Other current liabilities is also an account I consider as a weakness for this
company. Other current liabilities presented an increase of 6.9% and a change of
7.41% from the year 2013 to 2014.

Opportunities
Cash and Short Term Investments being part of the strengths correspond with
opportunities. Being an opportunities, this account has given the company a high
liquidity capability considering that cash and short term investments has a high
value, and seeing that its value is higher than the companys accounts payable, it
gives the company a high capability to meet companys current obligations. Quick
ratio of 0.84 could testify to that. And lastly seeing the change and increase
percentage, we can say that the company had amassed a better management on
the current year than the previous year.

Another account that has been part of the strength of the company was other
current assets. As strength, the account has given the company an opportunity of
having other source of more liquid properties that can also capable of paying the
companys short term obligations. And that is proved by the current ratio of 1.8 on
the current year. Seeing the increase and change percentage from the previous
year, we can see that the company acquired more current assets compared to the
previous year.
Other non-current liabilities are an account I considered strength on this
company. The account has given the company an opportunity to be able to buy and
pay up on a longer period of time and since this payables are payable for a long
time the money to payment can still be used on the companys operations or it can
also be used for investments or for acquiring more properties for operations
improvements.

Threats
Inventories is an account that I considered as a weakness of this company. As
the balance sheet above show, we can see an increase of 51.94% and a change of
108.06% from the year 2013 to 2014. Inventories is a significant asset that needs to
be managed properly. In this company, there is too much increase on inventories
and too much inventories can result additional expenses. It may be expenses for the
storage or may be for insurance. It also gives losses if the materials are perishable
or it became obsolete.
I considered Total Investments and Advances as a weakness. Investments is
the money that the company contributed in other business for the purpose of
receiving return on the investment and since it is under the non-current assets, the
return on the investment may be over a long period of time. Investment most often
refers to investments used to make capital expenditures instead of funding the
companys daily operations. And those expenditures includes include purchase of
asset that may depreciates over a time. In this company, they have an increasing
investments and advances meaning they have high costs for expenditures rather
than the costs of companys daily operations.
Another account under weaknesses in this company is the Income tax
payable account. The account had an increase of 66.67% and had a change of
200% from the previous to the current year. The income tax payable has low value
of 6M and 18M on the years respectively but then if the habit continues for the next
years, the account may increase in the next succeeding years, that makes more and
more expenses to come.
Intangible assets in this company showed an increase of 5% and a change of
5.26% for the year 2013 to 2014. I considered Intangible Assets in this company a

weakness the company shouldnt have an increase on this account because, yes,
these asset provides economic rights and advantages but then these have a high
degree of uncertainty to whether the future benefits will be realized. Also, the cost
net of accumulated depreciation is reported lowering the companys financial value.
Another weakness of this company is the Other Current Liabilities. The
account made an increase of 6.9% and change of 7.41% for the years respectively.
The company has small value of another short term of obligations but then current
liabilities are payable under a short period of time so I guess it is better to have
much better to have a decrease on this one or the company can engage more on
non-current liabilities than current liabilities since non-current liabilities are payable
on a long period of time and the money that can be paid will be able to cover up
companys operations.