ALL: A pleasant afternoon to all you

**each member will introduce their name**

Ledayl: Today we will be discussing our research entitled
Relationship of Financial Leverage and Profitability of San
Miguel Corporation.
**discuss: FINANCIAL RATIOS
Financial ratios are useful indicators of a firms
performance and financial situation.
Financial ratios can be used to analyze trends and to
compare the firms financials to those of other firms.
Most ratios can be calculated from figures provided by the
financial statements.
They can be classified according to the information they
provide.
Liquidity, Asset Turnover, Financial Leverage, Profitability,
and Dividend Policy Ratios are the types of financial ratios
that are frequently used.
The study will focus on the relationship of financial
leverage and profitability.
Financial leverage ratios measures the extent to which the firm
is using long term debt
Ratios related are debt to equity, debt to asset and times
interest earned.
Profitability Ratios include net margin, return on assets, return
on equity and earnings per share.
These ratios measure the overall efficiency of the firm in
managing its total investment in assets and in generating return
to shareholders.

~ Secondary data was used in the study since the data

used in computing these ratios can be found on a firms balance
sheet or income statement.

So, certainly the study focuses on three objectives.

First, the determination of the profile of San Miguel
Corporation
Second one, is to determine the financial leverage of the
company as well as its profitability.
And the last one is to assess if there is a significant
relationship between financial leverage and profitability of
San Miguel Corporation
**discuss: San Miguel Corporation
The specific company studied is San Miguel Corporation.
San Miguel Corporation also known as SMC, together with its
subsidiaries which are collectively referred to as SMC group, is
one of the largest and most diversified conglomerates in the
Philippines by revenues and total assets.
The Corporation is Southeast Asias oldest and largest brewer
established in 1890 by Don Enrique Barretto.
It is known for its flagship, its brewery.
However, SMC didnt settle in the brewery alone, it diversified
into market leading businesses and investments in the fuel and
oil, energy, infrastructure, telecommunications and banking.
In its most recent year, San Miguel Corporation showed an
outstanding financial performance, with all its businesses
executing well in the growth strategies.
Throughout the years SMC continued to expand into industries
that underpin the development and growth of the Philippine
Economy.

~~ maintaining sound financial performance is essential for

businesses such as San Miguel Corporation.
It is certain that the heart of most business is to grow and
acquire greater profit.
They constantly strive to have an efficient and effective
operation to build a strong foundation to maintain their long-
range operation in the business industry.
This tend to make the company survive in the long run, where
in financial leverage is needed and the analysis of financial
leverage on profit profiles of firms occupies a portion in the
financial literature.
~this is in relation to the importance of profitability as an index
of assessing the business efficiency and controversy
surrounding the relationship between financial leverage and
profitability.
Carmela: Statement of the Problem
Florence: Theoretical Framework and conceptual Framework
Ledayl: Research Methodology
deals with the methods used by the researchers in conducting
the study.
~ Correlational research design was used in the study since it is
one of the most applicable research design for the study,
it is used to describe and measure the degree of relationship
between two or more variables or sets of scores according to
CRESWELL
~ for the data analysis. Trend analysis and Pearson Correlation
analysis were used
~trend analysis
Trend analysis involves the collection of information from
multiple time periods and plotting the information on a
horizontal line for further review.
The intent of this analysis is to spot actionable patterns in the
presented information.
it is the process of trying to look at current trends in order to
predict future ones and is considered a form of comparative
analysis.
This can include attempting to determine whether a current
market trend, such as gains in a particular market sector, is
likely to continue, as well as whether a trend in one market
area could result in a trend in another. Though an analysis may
involve a large amount of data, there is no guarantee that the
results will be correct.

~ Pearson Correlation Analysis was performed to determine

significant relationships.
It is a technique for investigating the relationship between two
quantitative, continuous variables, for example, age and blood
pressure. Pearson's correlation coefficient (r) is a measure of
the strength of the association between the two variables.
~Pearson R was used as a basis to establish the strength and
direction of correlation between two variables.
~ a table of interpretation of R-value is presented on page 43 of
the study