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Globe: Consolidated Financial Statement 2014 to 2016

4. How would you rank the firms in terms of financial performance? Look at ROS, ROA, ROE,
and P/E. What economic factor or market factors might account for big differences in P/E ratio.

Ratios and formulas


ROS= Net Income (BEFORE Interest and Tax)/Sales
Return on sales (ROS) is a ratio used to evaluate a company's operational efficiency; ROS is also known
as a firm's operating profit margin.

This measure provides insight into how much profit is being produced per dollar of sales. An increasing
ROS indicates that a company is growing more efficient, while a decreasing ROS could signal looming
financial troubles

ROA= PROFIT MARGIN * TOTAL ASSET TURNOVER


=Net Income/ Sales * Sales/ Total Assets

ROE= ROA * EQUITY MULTIPLIER


=Net Income/ Sales * Sales/ Total Assets * Total Assets/ Total Common Equity

P/E= Price Per Share/ Earnings Per Share


1)ROS = Net Income (BEFORE Interest and Tax)/Sales
2016 2015 2014

EBIT 26,129,750.00 24,828,157.00 21,372,114.00

Sales 126,183,203.00 119,969,194.00 103,235,713.00

Return on Sales 20.71% 20.70% 20.70%

2) ROA= PROFIT MARGIN * TOTAL ASSET TURNOVER OR NET INCOME/TOTAL


ASSETS
Return on Assets 2016 2015 2014

Profit Margin 12.59% 13.74% 12.95%

Total Asset Turnover 50.50% 61.31% 57.51%

Return on Assets 6.36% 8.42% 7.45%

Profit Margin = Net Income/Sales


2016 2015 2014

Net Income 15,888,499 16,484,450 13,372,192


Sales 126,183,203.00 119,969,194.00 103,235,713.00

Profit Margin 12.59% 13.74% 12.95%

Total Asset Turnover = Sales/ Total Assets


Total Asset Turnover 2016 2015 2014

Sales 126,183,203.00 119,969,194.00 103,235,713.00

Total Asset 249,863,110 195,679,751 179,506,952


Profit Margin 50.50% 61.31% 57.51%
3) ROE= ROA * EQUITY MULTIPLIER
ROA= PROFIT MARGIN * TOTAL ASSET TURNOVER OR NET INCOME/TOTAL ASSETS
2016 2015 2014

Profit Margin 12.59% 13.74% 12.95%

Total Asset Turnover 50.50% 61.31% 57.51%

Return on Assets 6.36% 8.42% 7.45%

Equity Multiplier = Total Assets/ Total Common Equity


2016 2015 2014

Total Asset 249,863,110 195,679,751 179,506,952


Total Common Equity 63,476,302 59,397,782 54,537,666
Equity Multiplier 3.94 3.29 3.29

ROE= ROA * EQUITY MULTIPLIER


2016 2015 2014

Return on Assets 6.36% 8.42% 7.45%

Equity Multiplier 3.94 3.29 3.29

ROE 25.06 27.70 24.51

4) P/E= Price Per Share/ Earnings Per Share


2016 2015 2014

Price per Share

Earnings per Share 88.00 83.00 75.00


P/E Ratio

PLDT: Consolidated Financial Statement 2014 to 2016


1) ROS = Net Income (BEFORE Interest and Tax)/Sales
Profit Margin/Return on 24,703 14.95% 22,075 12.90% 40,378 23.64%
Sales: Net Income/Sales 165,262 171,103 170,835
2016 2015 2014

2) ROA= Net Income/ Total Assets


2016 2015 2014
Return on Assets: 20,162 4.24% 22,075 4.85% 34,090 7.81%
Net Income/Total Assets 475,199 455,095 436,295

Profit Margin = Net Income/Sales


2016 2015 2014
Gross Profit Margin: 148,689 89.97% 154,489 90.29% 157,323 92.09%
Sales-COGSS/Sales
165,262 171,103 170,835

Total Asset Turnover = Sales/ Total Assets


2016 2015 2014
Total Asset Turnover: 165,262 0.35 171,103 0.38 170,835 0.39
Sales/Total Assets
475,119 455,095 436,295

3) ROE= Net Income/ Stockholders Equity


2016 2015 2014
Return on Equity: 20,162 18.58% 22,075 19.38% 34,090 25.31%
Net Income/Total 108,537 113,898 134,668
Stockholder's Equity

4) P/E= Price Per Share/ Earnings Per Share


2016 2015 2014
P/E Ratio: Price per 1,365 10.60 2,060 12.60 2,906 16.80
Share/Earnings per 128.68 162.70 172.88
common share

Rankings:

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