rl"->(! i/'"- {o,,we.+, .jJ"nnd of A".-^^7*,.

*7 MAS-12
f:iNAnl(-"]l\l !i rA f E'Mf:N-l' Al\AtYSIS

" il:'.1 i t.)i: FRQ{IIA*IJI"J'ilY

l:leiLtrfi on $ttIt-:: I!!-oin,e,

Net Sales
i

Iltllr"rrrr r:n Assets .ltlcqry:q

Average Assets

lssi.ie r',1-r.ii. IIJCOMI fiqLire sirorrld be i-rs*d?

* Ii'llte rnlsrrtion is t<.: i'ntasi-rre ap,erat'ianal perfrtrmar?ce, income is expressed as,i?.9&Ig_u,t,!g{$qt*AlE-Jax;
aiterrtetiveiy, irrcr:rrrr bqfqrplAftgr;;XaXl.ilt,e_IgF[ may be used to exclude the effect of capitai structure.
. If tite inteilt.ion is lo evaluate total rnanagerial effort, income is expressed aftqf inte!'gSt and tax.
, '!
ire fJractice ol i:xrrressrrg ir)corn(l ?flig.r.ln,te-Ig1l .pq,t-b-elqrcjg; is now rarely applied in business.
n Irr{cLnre shoLrl<l irrcltrr-ir: c.livrdends and interest earned if the said investments are included in asset base"
n If useri in the contexl: of "DuPont" technique, then income must be expressed a&e-fjnle.rc_sts-taxesgnd
preier red stA!-k dlyidg[]!!,!.

--. Rerturn on Sales x Assets Turnover.x Equity Multiplierj

L'r-,y,:r,,1,::::
Irlqsryla
llr:tt.L rrt tt n t:t1 ts itt7
Average Equity

ir'drrlillqr f:'er 5lta rt: r Nqt l,r'rcqrtle_: P,relerrqd-Diyl{eld-s

I lVtct Ave. Cornmon Shares Outstanding

MARKET :f {; II:
..'l
;,i r.e p_qr
SiLare It indicates the number of pesos
:;'.-:.gS Pg: Share required to buy P 1 of earnings
i
I

-
Mejsures-tt-,u ,aie-of returl in t[J]
Dtt,tdend I teld -,, , iCe:r(i Per Share
. investor's common stock
i
i!lyes!Ug!ti:- .. . ...
;..ti.'i, (.)iii Dlvidqld pqr Share : It indicates the proportron
,r /j'.ir
i, arnings Per Share earnings distributed as dividends

OTHER MEANINGFUL RATIOS

o i.'.i: r,)-., |;SIi-) i(,\ iVALUA./-L- LONG-Tt.R!"1 f'INANCIAL POSITION OR STABILITY
ll"air."s
It"-----'--- ine propo.tion of
oixqd Ass'ets I owners', equity to fixed assets'
;
i
i:'ireri4:<;sers kt [<tt,t! [cluriy , raiJ Eq;iry I lxj::?l,,::.
of
byou":*#,
,,,j;J
i -l
i I /Ar^!\
Acca+. (Net)
tri*a; Assets lI ,--r;--+^-
r .Ai reri l1ssr,l.s rc; l.tttatlsri,rr,
! \)ta! /1r1''t:
Fixed tndicates possible
^^--ilr^ over-expansion
^..
L _ Total Asseis I of plant and equipment
I - - .i ..,....-. -.- I
| -

I -.;.,i u ,, t t) !: r t e{1A.sso' rs , saies

ruet
roughly the efficiency of
Tests
Ilff---^^,-^^r
lurnover) II |i rrrorr€gcrrrcrrl rrr l-,-^^:^^ pldlll
plant
Ksei,rrrg -.1--!
I I i-

iir - ir)iant lurrlOver'}

i{)ittrlt Fixed trnret;
[ssers (Net)
ri*eci ASSetS
I iliiffl":j -,'l -,keeping
.,ProPerti-esemPloY-e-d. -
I , I Measures recoverable amouni-_uv
I fl,','L u'..rlut.'Pt'r "$/r.:rE: I Cqnm-ql.Stiereho,LdeGl Egui-ty I common stockholders in the event
("on)tnor) $lor1<
acr,rlr;nr:n $rc.,e"( , i;;i*;";Gr*i"ffiitr;;id
Conrmon Shares Outstanding ;';;;;;;;';';;;'r.-"r.",'r"i
i of liquidation if assets are realized
:t-.----.- I at their book values
t"
'ti*tes prefr:rred !)ivirt*rri {:;ttrt:rl I
,

N*rt-I?sqiaa
preferred Dividends
jftei l1:"t i :i"'Jixff*t "?l't', o.[|:#;
ij slgc-blolqclS: - _
II ,ni.rr Acca*c Measures efficiency of the firm to
c.r1-ril;:l Inler;slry /tailrr r
Istal-4,559!$
Net $aies i generate
laleqthrough
-

i ,,,,..,", r,",r,i t h-t,t,,< r.:a.t-t,t Net lnceme bgfclre t4xes & fixed ctlarqes I Measures abillty to meet fixed
' (/( *: L(Jr I't(:u (Fixerl < harqes + sinking furrd payment)** j charges.
il,r
'Tr;rdinq nn the eqr.rity'is *noitjei name foi teGraaa:'.-
i:ixt."tl charqes i;h;r1l ir;e.lr"lde r*nt, inteiests and other relevant.fixed exFlenses; sinking fund payment
fltL.rlt lre cxl)rc-.:;seil ilrFor{i Iax^

PaqeSofSpaoes "td.r
; /&s{\ 1