Preview

Ratio Analysis

Satisfactory Essays
Open Document
Open Document
1051 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Ratio Analysis
| JOLLIBEE FOODS CORPORATION | COMMON SIZE FINANCIAL STATEMENTS AND RATIO ANALYSIS | | RUFIN, MA. URIKA C.2008103114FIN102DEAN MAURICE SABIOSY2010-2011 | |

|

RATIO ANALYSIS | 1.) EARNINGS PER SHARE | | | | | | | | | EPS= | NET INCOME - PREFERRED DIVIDENDS | | | | AVE. NO. OF COMMON SHARES OUTSTANDING | | | | | | | | | NET INCOME | OUTSTANDING SHARES | | | 3,637,297,943 | 2010 | 1,053,438,818 | | | | 2009 | 1,051,458,156 | | | | | | | EPS= | 3,637,297,943 | | | | (1,053,438,818 + 1,051,458,156)/2 | | | | | EPS is computed because earnings form the basis for dividend payments and future increases in value of shares | | | EPS= | 3,637,297,943 | | | | | 1052448487 | | | | | | | | | EPS= | PhP 3.46 | | | | | | | | | | | | | | 2.) PRICE EARNINGS RATIO | | | | | | | | | PER= | MARKET PRICE PER SHARE | | | | The price earnings ratio shows the relationship between the market price of a share of stock and the stock’s current earnings per share. The price earnings ratio is 25.69 ; that is the stock is selling for about 25.69 times its current eps.
EARNINGS PER SHARE | | | | | | | | PER= | 88.9 | | | | | 3.46 | | | | | | | | | PER= | 25.69 | | | | | | | | | | | | | | | | | | | 3.) DIVIDEND PAY-OUT RATIO | The dividend payout ratio shows and gauges the portion of current earnings being paid out in dividends. Companies with ample growth opportunities at high rates of return have low pay- out ratios than companies with limited reinvestment opportunities

| | | | | | | | DPOR= | DIVIDENDS PER SHARE | | | | | EARNINGS PER SHARE | | | | | | | | | DPOR= | 0.82 | | | | | 3.46 | | | | | | | | | DPOR= | 24% | | | | | | | | | | | | | | | | | | | 4.) DIVIDEND YIELD RATIO | The

You May Also Find These Documents Helpful

  • Good Essays

    Hershey vs Tootsie Roll

    • 1321 Words
    • 5 Pages

    Earnings per share (EPS) is generally considered to be the single most important variable in determining a share's price. It is also a major component used to calculate the price-to-earnings valuation ratio.…

    • 1321 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Finc2011 Major Assignment

    • 1909 Words
    • 8 Pages

    In which, payout ratio refers to the ratio of dividends to earnings per share (EPS) (Brealey, Myers and Allen 2011).…

    • 1909 Words
    • 8 Pages
    Good Essays
  • Satisfactory Essays

    Case 54 Questions

    • 1477 Words
    • 8 Pages

    Earnings yield is not an appropriate measure of the firms cost of equity because it only shows the current year’s earnings and the current share price. The future growth isn’t considered in the earnings yield.…

    • 1477 Words
    • 8 Pages
    Satisfactory Essays
  • Powerful Essays

    Financial Project

    • 1342 Words
    • 6 Pages

    Price/Earnings Ratio: The P/E ratio, one of the most important ratios to investors, relays to investors the relationship to dividends and the market price. Investors look for higher P/E ratios, but a rate that is too high could indicate that a stock is underpriced, but a rate that is too low could indicate that a stock is overprices.…

    • 1342 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Chapter Two

    • 663 Words
    • 3 Pages

    Earnings per share is equal to: net income divided by the total number of shares outstanding.…

    • 663 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Ratio Analysis

    • 374 Words
    • 2 Pages

    Which users may be interested in each type of ratio? Huffman Trucking are mainly suppliers, other trader creditors and staff such as:…

    • 374 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Tax 2 Study Guide

    • 471 Words
    • 2 Pages

    Earnings & Profit is the ability of a corporation to pay a dividend. Similar to the accounting concept of retained earnings. Both are measures of the firm’s accumulated capital (E&P includes both the accumulated E&P of the corporation since February 28, 1913, and the current year’s E&P).…

    • 471 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Ratio Analysis

    • 385 Words
    • 2 Pages

    What do the profitability ratios reveal about the financial position of the company? Which users may be interested in each type of ratio? What does the collected data reveal about the performance and position of the company?…

    • 385 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    accounting review

    • 6905 Words
    • 80 Pages

    A company has earnings per share of $9.80. Its dividend per share is $.60, its market price per share is $124.46, and its book value per share is $100. Its price-earnings ratio equals:…

    • 6905 Words
    • 80 Pages
    Satisfactory Essays
  • Better Essays

    Earnings, sometimes called profit, net income are the single most important item in the financial statements. They indicate the extent to which a company has engaged in value added activities, they are signals that helps direct resource allocation in capital markets. The theoretical value of a company’s stock is the present value of its future earnings, thus increased earnings represents increased value and decrease in earnings signals a decrease in the company’s value.…

    • 1076 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    IFRS 2008 IFRS 2007 IFRS 2006 IFRS 2005 UK GAAP 2005 UK GAAP 2004 Financial results (£m) Revenue 1 19,287 18,518 17,317 16,573 16,573 18,239 Revenue (inc VAT) - continuing operations 19,287 18,518 17,317 16,364 16,364 15,517 Underlying operating profit Sainsbury’s Supermarkets 535 429 352 308 321 564 Sainsbury’s Bank - 2 (10) 17 13 26 535 431 342 325 334 590 Underlying net finance costs 2 (45) (51) (75) (88) (92) (60) Share of post-tax (loss)/profit from joint ventures (2) – – 1 1 – Underlying profit from continuing operations 3 488 380 267 238 243 530…

    • 462 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    The Restaurant Industry

    • 498 Words
    • 2 Pages

    The driver of both current and future P/E ratios is the sum of the change in abnormal earnings, scaled by the current period’s net income. As change can be positive or negative, only the direction and magnitude of the expected change matters.…

    • 498 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    PE ratio is expected to be affected by various factors include company earnings, payout ratio, growth rate and cost of equity. From the dividend discount model we know that P0=EPS0×Payout ratio×(1+gn)r-gn , thus P0EPS0=PE ratio=Payout ratio×(1+gn)r-gn. Thus we see that the PE ratio is an increasing function of the payout ratio and the growth rate and a decreasing function of the riskiness of the firm.…

    • 649 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    From a financial and shareholder perspective, the price paid for a firm is hard to justify if earnings per…

    • 980 Words
    • 4 Pages
    Satisfactory Essays
  • Powerful Essays

    However the current ratio reflects a lower cash balance due to high capital expenditure and less debt acquisition. Since EPS (Earnings per Share) has risen to 8.5% to 878.9, it…

    • 2716 Words
    • 11 Pages
    Powerful Essays