SM PRIME HOLDINGS
FINANCIAL RATIO ANALYSIS
December 2021
PROFITABILITY
RATIOS
FORMULA
RESULT
Current
Prior year
year
RETURN ON
EQUITY (ROE)
Net Profit/
Total OE
.07
.06
NET PROFIT
MARGIN
Net
Profit/Sales
.27
.22
INTERPRETATION
The SMPH is able to earn more
money with its investment as the
ROE increases. This means that the
company effectively use equity to
generate income.
As the net profit margin increases
from prior to current, this simply
means that the SMPH is more
efficient at converting sales into
actual profit and its costs control is
good.
LIQUIDITY
CURRENT
RATIO
QUICK RATIO
or ACID TEST
RATIO
Current
Assets/
Current
Liabilities
Quick assets
/current
Liabilities
1.39
1.16
SMPH has sufficient current assets to
pay off its liabilities.
.81
.66
The company don’t have liquid assets
to pay their short term liabilities. The
SMPH current assets are highly
dependent on the inventory.
ASSET UTILIZATION
ASSET
TURNOVER
Sales/Total
Assets
.10
.11
SMPH has a low asset turnover ratio
which means it’s not efficiently using
its assets to generate sales.
OTHER FINANCIAL RATIOS
RATIOS
FORMULA
RESULT
Current
year
Prior year
SOLVENCY RATIO
Net Profit after Tax +
dep’n/Total Liabilities
1.71
1.75
DEBT-TO-EQUITY
RATIO
Total Liabilities/Total
Equity
49 : 51
47 : 53
ASSET-TO EQUITYRATIO
Total Assets/ Total
Equity
2.42
2.34
RETURN ON ASSETS
Net Income/ Total
Assets
INTEREST RATE
COVERAGE RATIO
EBITDA/Interest
Expense
4.61
4.57
DEBT TO EBITDA
Total Interest – bearing
Liabilities/EBITDA
7.28
6.94
Return on
Investment
Property
Net Income/Ave.
Investment properties
6%
5%