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
2016 2015 2014
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
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:
1. Return on sales:
2016 Percentage 2015 Percentage 2014 Percentage
Rank 1 Globe 20.71% Globe 20.70 PLDT 23.64
Rank 2 PLDT 14.95% PLDT 12.90% Globe 20.70
In the return on sales for 2016, Globe has a higher return on sale compared to PLDT. During 2015,
Globe has a much higher return on sales, while on 2014, PLDT has a much higher return on sale rather
than Globe.
2. Return on Assets
2016 Percentage 2015 Percentage 2014 Percentage
Rank 1 Globe 6.63% Globe 8.42% PLDT 7.81%
Rank 2 PLDT 4.24% PLDT 4.85% Globe 7.45%
For the Return on Assets, during 2016 and 2015, Globe ranks 1 in the return on assets, while on 2014,
PLDT has a higher percentage.
Profit margin
2016 Percentage 2015 Percentage 2014 Percentage
Rank 1 PLDT 89.97% PLDT 90.29% PLDT 92.09%
Rank 2 Globe 12.59% Globe 13.74% Globe 12.95%
For the Profit Margin, PLDT has ranked the highest during 2014-2016, having a higher operating
margin.
Total Asset Turnover:
2016 Percentage 2015 Percentage 2014 Percentage
Rank 1 Globe 50.50% Globe 61.31% Globe 57.51%
Rank 2 PLDT 35% PLDT 38% PLDT 39%
For the asset turnover ratio, Globe has ranked the highest for the past three years during 2014-2016.
3. Return on Equity
2016 Percentage 2015 Percentage 2014 Percentage
Rank 1 Globe 25.06% Globe 27.70% PLDT 25.31%
Rank 2 PLDT 18.58% PLDT 19.38% Globe 24.51%
In the return on equity during 2016 and 2015 Globe has ranked the number one however, on 2014,
PLDT has ranked higher than Globe on 2014.
4. P/E Ratio
2016 Percentage 2015 Percentage 2014 Percentage
Rank 1
Rank 2
