HOLDING COMPANIES
Comparative Financial Ratios
For Holding Companies in the Philippines
Prepared by:
Submitted to:
Prof. Redentor Caguioa
Financial Management 1
Second Semester A.Y. 2014-2015
Table of Contents
Introduction
Industry Background
Summary of Financial Ratios
Common Size Analysis
Review of Ratios and Analysis
Conclusion
Appendices
INTRODUCTION
Financial analysis is the examination of a business from a variety of perspectives in order to fully understand the greater financial situation and determine how best to strengthen the business. A financial analysis looks at many aspects of a business from its profitability and stability to its solvency and liquidity. The key source of information for financial analysis is the financial statements of a business. The financial analyst uses these documents to derive ratios, create trend lines, and conduct comparisons against similar information for comparable firms. Financial analysis is one of the key tools needed by the managers of a business to examine how their organization is performing. For this reason, they are constantly querying the financial analyst about the profitability, cash flows, and other financial aspects of their business. Through comparative financial analysis of top holding companies in the Philippines namely, JG Summit Holdings, Inc (JGS), GT Capital Holdings, Inc. (GTCAP) and Ayala Land Inc./ Cebu Holdings, Inc., this study aims to know the following: 1. To compare and asses the 2013 performance of each entity This objective where investors or creditors are interested in the trend of past sales, cost of goods sold, operating expenses, net income, and return on investment. These trends offer a means for judging management 's past performance and are possible indicators of future performance. 2. To know and asses its profitability and growth prospects Financial statement analysis helps in assessing and predicting the earning prospects and growth rates in earning which are
For Holding Companies in the Philippines
Prepared by:
Submitted to:
Prof. Redentor Caguioa
Financial Management 1
Second Semester A.Y. 2014-2015
Table of Contents
Introduction
Industry Background
Summary of Financial Ratios
Common Size Analysis
Review of Ratios and Analysis
Conclusion
Appendices
INTRODUCTION
Financial analysis is the examination of a business from a variety of perspectives in order to fully understand the greater financial situation and determine how best to strengthen the business. A financial analysis looks at many aspects of a business from its profitability and stability to its solvency and liquidity. The key source of information for financial analysis is the financial statements of a business. The financial analyst uses these documents to derive ratios, create trend lines, and conduct comparisons against similar information for comparable firms. Financial analysis is one of the key tools needed by the managers of a business to examine how their organization is performing. For this reason, they are constantly querying the financial analyst about the profitability, cash flows, and other financial aspects of their business. Through comparative financial analysis of top holding companies in the Philippines namely, JG Summit Holdings, Inc (JGS), GT Capital Holdings, Inc. (GTCAP) and Ayala Land Inc./ Cebu Holdings, Inc., this study aims to know the following: 1. To compare and asses the 2013 performance of each entity This objective where investors or creditors are interested in the trend of past sales, cost of goods sold, operating expenses, net income, and return on investment. These trends offer a means for judging management 's past performance and are possible indicators of future performance. 2. To know and asses its profitability and growth prospects Financial statement analysis helps in assessing and predicting the earning prospects and growth rates in earning which are
References: http://www.accountingtools.com/financial-statement-analysis http://www.jgsummit.com.ph/ http://www.gtcapital.com.ph/ http://www.cebuholdings.com/ http://journals.upd.edu.ph/index.php/pmr/article/viewFile/1794/1711 http://investinginphilippines.com/what-are-holding-companies-understanding-parent-and-subsidiary-corporate-relationship/ APPENDICES