Maynilad and Manila Water Financial Analysis
i. BRIEF BACKGROUND
Manila Water Company Inc. is a Philippines-based company engaged in the engaged in providing water, sewerage and sanitation services. It serves a total estimated population of over six million people in the East Zone, which encompasses 23 cities and municipalities that include business districts and residential areas in the eastern part of Metro Manila and the adjacent Rizal Province. The Company also manages and operates the sewerage system that covers a portion of its service area, as well as provides sanitation services to its customers in the East Zone. The Companies subsidiaries include Manila Water Total Solutions, Corporation, Northern Waterworks & Rivers of Cebu, Inc., AAA Water Corporation and others. In 2011, the Company acquired 100% ownership of Clark Water Corporation.[i]
Maynilad Water Services, Inc. is the water and wastewater services provider for the 17 cities and municipalities that comprise the West Zone of the greater Metro Manila area.In 1997, the company was granted a 25-year exclusive concession by the Philippine Government, through the Metropolitan Waterworks and Sewerage System (MWSS), to operate, maintain and invest in the water and sewerage system in Caloocan, Las Piñas, Malabon, Manila, Muntinlupa, Navotas, Pasay, Parañaque, Valenzuela, parts of Quezon City, a part of Makati, Cavite City, and the municipalities of Rosario, Imus, Noveleta, Bacoor, and Kawit in Cavite.[ii]
ii. EXECUTIVE SUMMARY
This comparative study between Maynilad and Manila Water is an overview of both performance and to not directly compare them in terms of profitability as both cater to different consumers in terms of geographical location and socio-economic classes. Based on the numbers presented and computed, Manila Water is more liquid has the higher ability to pay its short term obligations. In terms of efficiency in utilizing its assets to revenue, both have been efficient based on the terms set which is 60 days for Maynilad
Manila Water Company Inc. is a Philippines-based company engaged in the engaged in providing water, sewerage and sanitation services. It serves a total estimated population of over six million people in the East Zone, which encompasses 23 cities and municipalities that include business districts and residential areas in the eastern part of Metro Manila and the adjacent Rizal Province. The Company also manages and operates the sewerage system that covers a portion of its service area, as well as provides sanitation services to its customers in the East Zone. The Companies subsidiaries include Manila Water Total Solutions, Corporation, Northern Waterworks & Rivers of Cebu, Inc., AAA Water Corporation and others. In 2011, the Company acquired 100% ownership of Clark Water Corporation.[i]
Maynilad Water Services, Inc. is the water and wastewater services provider for the 17 cities and municipalities that comprise the West Zone of the greater Metro Manila area.In 1997, the company was granted a 25-year exclusive concession by the Philippine Government, through the Metropolitan Waterworks and Sewerage System (MWSS), to operate, maintain and invest in the water and sewerage system in Caloocan, Las Piñas, Malabon, Manila, Muntinlupa, Navotas, Pasay, Parañaque, Valenzuela, parts of Quezon City, a part of Makati, Cavite City, and the municipalities of Rosario, Imus, Noveleta, Bacoor, and Kawit in Cavite.[ii]
ii. EXECUTIVE SUMMARY
This comparative study between Maynilad and Manila Water is an overview of both performance and to not directly compare them in terms of profitability as both cater to different consumers in terms of geographical location and socio-economic classes. Based on the numbers presented and computed, Manila Water is more liquid has the higher ability to pay its short term obligations. In terms of efficiency in utilizing its assets to revenue, both have been efficient based on the terms set which is 60 days for Maynilad