Preview

Comparative Financial Statements (ALI vs DMCI)

Powerful Essays
Open Document
Open Document
1148 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Comparative Financial Statements (ALI vs DMCI)
AYALA LAND, INC. vs DMCI HOLDINGS, INC.
Comparative Financial Analysis
Financial analysis is the best way the gauge the viability, stability and profitability of business. The ratios and analysis present us the key strengths and weaknesses of a certain company. Through this ratios and analysis, companies are able to maximize their key strengths and remedies if not eliminate their key weaknesses. Financial analysis and ratios aid stakeholders assess financial health of the companies.
In light of this topic, we are going to compare the two largest real estate company in the Philippines: Ayala Land, Inc. (ALI) and DMCI Holdings, Inc. (DMCI)
Ayala Land, Inc. is the Philippines' largest, most diversified and fully- integrated property developer. It offers a full line of end-to-end real estate products – ranging from residential, retail and office developments, as well as hotels and island resorts, to construction and property management services.

Their real estate portfolio include:
Residential (Ayala Land Premier, Alveo, Avida, Amaia, BellaVita)
Townships (Nuvali, Bonifacio Global City, FTI, Laguna Technopark, etc.)
Malls (Glorietta, Greenbelt, Trinoma, ATC, BHS, Marquee, Market Market, Abreeza, etc.)
Hotels and island resorts (El Nido Resorts, Holiday Inn, Seda, Marriott, Fairmont)
Construction and property management services (Ayala Property Management Corporation, Makati Development Corporation)

DMCI, a wholly owned subsidiary, is engaged in general construction services – the Company’s core business. It is also engaged in various construction component businesses such as production and trading of concrete products, and electrical and foundation works. It is one of the Philippines’ leading construction companies.

Their real estate portfolio include:
Residential (Rockwell Center Condominium Towers)
Malls & Commercial Bldgs (SM Megamall, Fareast Bank Headquarters, Ayala Triangle Tower I, Citibank Tower)
Hotels and island resorts (Shangrila

You May Also Find These Documents Helpful

  • Good Essays

    JET Task 1

    • 3064 Words
    • 13 Pages

    Financial analysis is the process of evaluating a business’s liquidity, viability, stability, and profitability. It is typically used during audits, to determine if a business is suitable to be invested in, comparison to other companies, and to analyze overall financial status. The typical items reviewed during financial analysis are income statements, balance sheet, and cash flow statements. Once the documents have been reviewed a report is formed and presented to management for decision making purposes.…

    • 3064 Words
    • 13 Pages
    Good Essays
  • Good Essays

    Cango Financial

    • 1115 Words
    • 5 Pages

    The success of a business depends on its ability to remain profitable over the long term, while being able to pay all its financial obligations and earning above average returns for its shareholders. This is made possible if the business is able to maximize on available opportunities and very efficiently and effectively use the resources it has to create maximum value for all involved stakeholders. One way the performance of a company can be measured on critical areas such as profitability, its ability to stay solvent, the amount of debt exposure and the effectiveness in resource utilization, is performing financial analysis where a set of ratios provides a snapshot of company performance and future prospects. Financial analysis is also a very useful technique that forms a basis for making key decisions about company operations. In addition to internal company members, these ratios are used by potential investors and shareholders to make investment decisions about the company.…

    • 1115 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Acc/291 Weekly Reflection

    • 305 Words
    • 2 Pages

    Financial statements are prepared to meet internal and external reporting obligations, mainly for decision making purposes. Financial statement analysis is the process of identifying financial strengths and weaknesses of the company by establishing relationships between financial statements. Such analysis shows changes between years in both dollar and percentage forms. Analyzing financial statements involves evaluating three characteristics: a company's liquidity, profitability, and solvency.…

    • 305 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    When analyzing a business, financial statements provide a detailed look into the company and the success or failure which lies within in. Financial ratios are calculated to determine these numbers and to identify other number related variables that have an impact on the company and those investing in the business. Once determined they offer information concerning the businesses return on investment and the ability of the business to pay its bills on time, as well as what their projected future earnings will be. The following depicts the financial status of ABC SDN. BHD with financial ratio analysis.…

    • 833 Words
    • 4 Pages
    Satisfactory Essays
  • Powerful Essays

    Lowe's Research Paper

    • 5203 Words
    • 21 Pages

    Financial analysis is used to assess the financial stability of a company. Creditors are interested in the short-term liquidity of a company and whether the company can repay its debts on time. So creditors use financial statements to determine whether a company is creditworthy. Stockholders are interested with future earning and dividend payouts and use the financial statements to determine whether a company is worth investing in. Creditors and stockholders seek prior and current financial information on prospective companies before entering a business relationship with them. The information obtained from financial statements will give a quick snapshot of whether the company is financially stable.…

    • 5203 Words
    • 21 Pages
    Powerful Essays
  • Better Essays

    It is important for every internal and external stakeholder in a company to understand if a company is being profitable or not. A company that is failing or not growing can often come from poor financial planning and analysis. The difference between failure and success come from analyzing financial information. Analyzing financial information such as balance sheet, income statement and cash flow statement companies can predict and control their future. Financial statements are the primary documents used in reporting financial information to banks, investors, suppliers and others. Along with financial information, financial ratios can help stakeholders evaluate the business performance. They can deliver a better understanding of a variety of things going on in the company. Financial information and ratios are important tools to help predict the growth of a company and to compare them to other companies.…

    • 2269 Words
    • 7 Pages
    Better Essays
  • Better Essays

    Financial ratios are designed to extract important information that might not be obvious simply from examining a firm’s financial statements. Financial statement analysis involves comparing a firm’s performance with that of other firms in the same industry and evaluating trend in the firm’s financial position over time.…

    • 1372 Words
    • 6 Pages
    Better Essays
  • Satisfactory Essays

    Ayala Land Case

    • 373 Words
    • 2 Pages

    Ayala Land is the largest and most diversified company in the real estate sector, with businesses in residential development, commercial leasing and other services. This report provides an analysis and evaluation of ALI’s financial, stock, and industry performance in order to arrive at a decision whether to hold or sell existing ALI shares, or buy new shares (based on closing price of Php17.98). This report is based on a long-term investment plan of at least 10 years.…

    • 373 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    By use of financial statements, a company can evaluate performance, activity, financing and liquidity. Some common ratios include the price-earnings ratio, debt-equity ratio, earnings per share, asset turnover and working capital” (“Investopedia”, 2012). Ratio analysis helps a business see its progress or failures across the board, it helps them figure out where they need to make improvements financially and business-wide. Ratio analysis is a useful management tool that will improve the understanding of financial results and trends over time, and provide key indicators of organizational performance” (Financial Ratio Analysis;…

    • 1367 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Financial Analysis involves evaluation of business, budgets, projects etc to ensure stability, liquidity, and solvency and at last profitability of the business in presence of domestic and global macro-economic environment to determine suitability of investment. This evaluation is not completely objective and gets impacted by personal biases of the analysts which result into misleading outputs for investors. Many analysts get influenced by herd mentality and try to follow the presently accepted mood of the people.…

    • 1734 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Land Lease

    • 1990 Words
    • 8 Pages

    LandLease (Asia) Property Limited (LL) wants to infiltrate the Hong Kong real estate sector. Louisa Martin and her senior advisor Marco Li have two main possibilities to achieve this goal, direct and/or indirect investment. By investigating the different investment possibilities they want to understand the merits and demerits, including risk and return of the possible investments. Bearing these outcomes in mind, they can form a new strategy for the company.…

    • 1990 Words
    • 8 Pages
    Good Essays
  • Satisfactory Essays

    Final Analysis

    • 906 Words
    • 4 Pages

    Financial analysis has an important role in the changing economic environment. It helps in understanding of the correctness and efficiency of the use of financial resources in generating company earnings. It gives company’s an opportunity to evaluate its financial operations and market position, to identify possible risk, to notice mistakes and make plans for the future. The evaluation of a company’s financial position and operating efficiency can be regarded as part of financial policy. With that being said, a skillful management of resources must be based on the results of financial analysis.…

    • 906 Words
    • 4 Pages
    Satisfactory Essays
  • Powerful Essays

    Ratio Analysis

    • 3507 Words
    • 15 Pages

    Financial statement analysis is the study of relationships between the elements of the same statement or different financial statements and the trend of these elements. The purpose of financial statement analysis is to determine the meaning and significance of the data contained in the statements so that a forecast may be made of the prospects for future earnings, expected dividends and the ability of the business to pay interest and debt as it matures. Financial statement analysis involves rearrangement of financial information, comparison, analysis and interpretation of that information.…

    • 3507 Words
    • 15 Pages
    Powerful Essays
  • Powerful Essays

    SM WHOLE REPORT 1

    • 7085 Words
    • 35 Pages

    A & M Realty Berhad, an investment holding company, engages in the development, construction, and management of properties, as well as involves in property investment activities in Malaysia. The company also engages in the construction and development of residential, commercial, and industrial properties; the manufacture and trade of automotive parts and related products, including automotive brake lining products; and the trade of spark plugs, automotive products, automotive horns, and industrial lubricants. It also engages in the operation and management of hotels and golf resorts; the plantation of oil palm, bananas and pineapples; managing and operating food and beverage businesses.…

    • 7085 Words
    • 35 Pages
    Powerful Essays
  • Good Essays

    Meralco

    • 1896 Words
    • 8 Pages

    Meralco also has majority ownership on Rockwell Land Corporation, known for its upscale real estate developments in Makati City, Pasig and Ortigas. Other subsidiaries of include Meralco Industrial Engineering Services Corporation, Corporate Information Solutions, Inc., Meralco Energy, Inc., e-Meralco Ventures, Inc., Meralco Financial Services Corporation, and Clark Electric Distribution Corporation, all of which play a supporting role on the distribution business.…

    • 1896 Words
    • 8 Pages
    Good Essays