Filinvest
Case Context
Filinvest Land Inc. (FLI) is one of the leading real estate developers in the country. It provides a wide range of real estate products to residential and commercial customers.
As a listed company in Philippine Stock Exchange, shares of FLI can be bought and sold to potential investors. From the point of view an investor, we are to provide facts that can be used for decision making.
Problem Definition
Investing in FLI can be rewarding because of the potential income it can provide to its shareholders. It can also pose threats due to the uncertainties in real estate sector and how management run the business.
The intention of this paper is to expose the threats in investing in FLI. This will give key informations that investors can use to weigh the risks in investing in this real estate company.
Description of your framework for analysis
As a critic of FLI, we are tasked to provide details on the financial status of the company. We are to give an analysis based on its annual reports and financial statements.
To provide an overview of the financial status of the company, we will study its income statements and balance sheets. We will present a trend analysis and common size analysis for both statements.
After the overview, we will also study and try to understand how the company do its business using dupont analaysis.
Analysis
Trend Analysis
Analysis of the company’s assets provided a usual predictable increasing trends for all of its accounts except for cash, investment in an associate, AFS assets which increased dramatically in 2009 and 2010 while goodwill decreased starting 2010. The decrease in goodwill was due to re-measurement of the value of Cyberzone Propety Inc.
The company’s liabilities also exhibit same upward trend except for income tax payable which decrease to 90% of its previous year. It was due to the application of creditable withholding taxes on the tax due for the year.
The company
Filinvest Land Inc. (FLI) is one of the leading real estate developers in the country. It provides a wide range of real estate products to residential and commercial customers.
As a listed company in Philippine Stock Exchange, shares of FLI can be bought and sold to potential investors. From the point of view an investor, we are to provide facts that can be used for decision making.
Problem Definition
Investing in FLI can be rewarding because of the potential income it can provide to its shareholders. It can also pose threats due to the uncertainties in real estate sector and how management run the business.
The intention of this paper is to expose the threats in investing in FLI. This will give key informations that investors can use to weigh the risks in investing in this real estate company.
Description of your framework for analysis
As a critic of FLI, we are tasked to provide details on the financial status of the company. We are to give an analysis based on its annual reports and financial statements.
To provide an overview of the financial status of the company, we will study its income statements and balance sheets. We will present a trend analysis and common size analysis for both statements.
After the overview, we will also study and try to understand how the company do its business using dupont analaysis.
Analysis
Trend Analysis
Analysis of the company’s assets provided a usual predictable increasing trends for all of its accounts except for cash, investment in an associate, AFS assets which increased dramatically in 2009 and 2010 while goodwill decreased starting 2010. The decrease in goodwill was due to re-measurement of the value of Cyberzone Propety Inc.
The company’s liabilities also exhibit same upward trend except for income tax payable which decrease to 90% of its previous year. It was due to the application of creditable withholding taxes on the tax due for the year.
The company