Financial Statement Analysis - Puregold Price Club

BATANGAS STATE UNIVERSITY
College of Accountancy, Business Economics and International Hospitality Management

GRADUATE SCHOOL
FINANCIAL MANAGEMENT
Analysis of Financial Performance of

PUREGOLD PRICE CLUB INC.
Gabrielle Antonette M. Rubio
INTRODUCTION
Puregold Price Club, Inc. (PGOLD) was incorporated on September 8, 1998 as a

company involved in the business of trading goods such as consumer products on a
wholesale and retail basis. The Company opened its first store in Mandaluyong City in
December 1998. PGOLD's loyalty program, "Tindahan ni Aling Puring", was launched in
2004. The Company conducts its operations through several retail formats and store
brands. Hypermarkets, through "Puregold Price Club", offer a variety of food and non-
food products and generally cater to both retail customers and resellers such as members
of the Company's loyalty program. Supermarkets, through "Puregold Junior", operate as a
neighborhood store which offers a higher proportion of food to non-food products vis-a-
vis the Company's hypermarkets. Discounters, through "Puregold Extra", operate in a
small store format that offers a more limited number of goods. Meanwhile, S&R
Membership Shopping adopts a warehouse club concept where most of the products
offered are in club packs. Majority of the merchandise are imported brand names mostly
sourced from the US. Among others, PGOLD also owns Estenso Equities, Inc., which is
the holding company for two companies, namely, Ayagold Retailers, Inc. and San Roque
Supermarkets. PPCI Subic, Inc. is operating one Puregold branch in Subic Bay, Olongapo
City. In 2018, PGOLD incorporated Purepadala, Inc. mainly to operate the remittance
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operation of the Company. By the end of 2019, PGOLD was operating a total of 229
hypermarkets, 102 supermarkets, 28 extras, 19 minimarts, 18 S&R warehouse clubs, and
38 S&R Quick Service Restaurants, for a total of 434 stores all over the country.
Vision
To be the Most Customer-Oriented Hypermart offering a One-Stop Shopping
convenience and Best Value to our Customers.
Sa Puregold, Always Panalo!
Mission
Our Mission is to provide products, services and business opportunities to every Filipino
Family. We establish lasting relationship with our Suppliers and Business Partners. We
strive to promote the personal and professional development of our Employees.
Sa bawat araw, Puregold kasama mo!
Core Values
 Sense of Belonging
Feeling that one has an essential role to play as part of the PUREGOLD family
 Sense of Service
Providing products and services that meet the demands and expectations of
customers
 Dynamism
Open, adaptive and responsive to the changing environment
 Commitment
Dedicated and conscientious focus on work
 Loyalty and Integrity
Honor, credibility, “palabra de honor”, “walking the talk”
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DISCUSSION
Financial ratios are created with the use of numerical values taken from financial
statements to gain meaningful information about a company. The numbers found on a
company’s financial statements – balance sheet, income statement, and cash flow
statement – are used to perform quantitative analysis and assess a company’s liquidity,
leverage, growth, margins, profitability, rates of return, valuation, and more.
The trend liquidity ratio is increasing throughout the years which indicate that the
company has sufficient funds to meet its bills. The company has sufficient fund to
operate they business.
In the activity ratio, the average collection period for the recent year is 9 days
compared to the last 2 years which have 12 average collection period which means that
the collection period is shorter which reduces the risk of bad debts.
The trend lines on the profitability ratio are decreasing. This may indicate that the
company may either be implementing an inefficient and ineffective method of
management because they spend more money on buying fix asset rather than spending it
on product or the company is purchasing fixed assets to keep up with the technology to
improve its production and customer service.
The trend lines on the solvency ratio are also decreasing which means that they
are incurring more debts are time goes by. Puregold solvency ratios are still on a safe line
and is not really above the suggested optimal ratios, but the decreasing of solvency ratios
can be alarming for some investors.
Liquidity ratio
Liquidity ratios are an important class of financial metrics used to determine a

debtor's ability to pay off current debt obligations without raising external capital.
Liquidity ratios measure a company's ability to pay debt obligations and its margin of
safety through the calculation of metrics.
Here is the computation for the organization’s current ratio for the years 2015-2019:
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Current Assets
Current Ratio=
Current Liabilities
Year 2019
40040354750
Current Ratio= =2.58
15490808780
Year 2018
36065929942
18247249385
Year 2017
31342646459
19460770299
Year 2016
27801589624
16062347295
Year 2015
23014265923
14606493807
Current Ratios
3.00
2.58
2.50
1.98
2.00
1.73
1.58 1.61
1.50
1.00
0.50
0.00
2015 2016 2017 2018 2019
Year
Figure 1
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Current Ratio for the years 2015-2019

The current ratio is a liquidity ratio which estimates the ability of a company to
pay back short-term obligations. This ratio is also known as cash asset ratio, cash ratio,
and liquidity ratio. A higher current ratio indicates the higher capability of a company to
pay back its debts. Given the structure of the ratio, with assets on top and liabilities on
the bottom, ratios above 1.0 are sought after. A ratio of 1 means that a company can
exactly pay off all its current liabilities with its current assets. A ratio of less than 1 (e.g.,
0.75) would imply that a company is not able to satisfy its current liabilities.
A ratio greater than 1 would suggest that the organization is capable to meet its
current bills just like what is shown at Figure 1. According to what I have understood in
our class the ratio of 2.0 means that a company can cover its current liabilities two times
over. This means that Puregold Price Club Inc. is more capable of paying its obligations
because it has a larger proportion of short-term asset value relative to the value of its
short-term liabilities. This increasing ratio overtime could indicate better collections,
faster inventory turnover, or that the company has been able to pay down debt.
Here is the computation for the organization’s current ratio for the years 2015-2019:
Current Assets−Inventory −Prepaid Expenses

Quick Ratio=
Current Liabilities
Year 2015
40040354750−12983000000−1067000000
Quick Ratio= =0.61
15490808780
Year 2016
36065929942−16488000000−982000000
Quick Ratio= =0.64
18247249385
Year 2017
31342646459−17697000000−621000000
Quick Ratio= =0.67
19460770299
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Year 2018
27801589624−19732000000−820000000
Quick Ratio= =0.85
16062347295
Year 2019
23014265923−19526000000−720000000
Quick Ratio= =1.28
14606493807
Quick Ratios
1.40
1.28
1.20
1.00
0.85
0.80
0.64 0.67
0.61
0.60
0.40
0.20
0.00
2015 2016 2017 2018 2019
Figure 2
Quick Ratio for the years 2015-2019
The quick ratio, also referred as the “acid test ratio” or the “quick assets ratio”,
this ratio is a gauge of the short-term liquidity of a firm. The quick ratio is helpful in
measuring a company’s short-term debts with its most liquid assets. Since most
businesses use their long-term assets to generate revenues, selling off these capital assets
will not only hurt the company it will also show investors that current operations are not
making enough profits to pay off current liabilities.
Higher quick ratios are more favorable because it shows that there are more quick
assets than there are more current liabilities. An organization with a quick ratio of 1
indicates that quick assets equals current assets. In the case of Puregold Price Club Inc,
from 2015 up to 2018, there are more current liabilities than there are current liabilities.
This means that during those years, the organization may not be able to fully pay its
current liabilities during a short period of time. But in 2019, the quick ratio is greater than
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one which indicates that Puregold Price Inc. Club can instantly pay off its current
liabilities. Having low quick ratio may be a little tough for an organization because its
fund may not be sufficient to pay off its short-term liabilities which may give rise to
credit risks.
Activity ratio
An activity ratio is a type of financial metric that indicates how efficiently a

company is leveraging the assets on its balance sheet, to generate revenues and cash.
Activity ratios are most useful when employed to compare two competing businesses
within the same industry to determine how a particular company stacks up amongst its
peers. But activity ratios may also be used to track a company's fiscal progress over
multiple recording periods, to detect changes over time. These numbers can be mapped to
present a forward-looking picture of a company's prospective performance.
Receivables Last Year + Receivables Current Year

Average Receivables=
2
Average Receivables
Receivables Collection Period =
Net Credit Sales/365
Year 2015
1946000000+2683000000
Average Receivables= =2314500000
2
2314500000
Receivables Collection Period = =9 days
97172000000/365
Year 2016
2683000000+3881000000
2
3282000000
112589000000 /365
Year 2017
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3881000000+ 4569000000
2
4225000000
124703000000/365
Year 2018
4569000000+4790000000
2
4679500000
141139000000 /365
Year 2019
4790000000+2676000000
2
3733000000
154490000000/365
Receivables Collection Period

14
12 12
12
11
10
9 9
8
Days
0
2015 2016 2017 2018 2019
Years
Figure 3
Receivables Collection Period for the years 2015-2019
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Based on the calculation above, I have noted that Puregold took average days of
10 days for the past five years to collect cash from its customers for credit sales. For the
most recent year, 2019, it took 9 days to collect cash from its customer for credit sales.
Although there is no other data for comparison, but 9 days seem quite acceptable.
Considering that for the past 2 years (2017 and 2018) it took them 12 days to collect
receivables from customers. That is quite an improvement.
This is because of failing in the collection of credit sale or convert the credits
sales into cash in a short period of time will adversely affect the company at least two
things. Long outstanding accounts receivable could potentially lead to bad debt and the
effect is adverse than the risk of late collection. The company needs cash not only to pay
to suppliers for the services or products that it purchases for running its operations but
also to pay for its employees. Long collection days of credit sales will lead to insufficient
cash to pay for these things.
Profitability ratio
For most profitability ratios, having a higher value relative to a competitor's ratio
or relative to the same ratio from a previous period indicates that the company is doing
well. Profitability ratios are most useful when compared to similar companies, the
company's own history, or average ratios for the company's industry.
Sales−Cost of Sales
Gross Profit Margin=
Sales
Year 2015
97172000000−80683000000
Gross Profit Margin= x 100=16.97
97172000000
Year 2016
112589000000−93214000000
112589000000
Year 2017
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124703000000−103015000000
124703000000
Year 2018
141139000000−117211000000
141139000000
Year 2019
154490000000−128540000000
154490000000
Gross Profit Margin

17.60
17.39
17.40
17.21
17.20
16.97
17.00 16.95
16.80
16.80
16.60
16.40
2015 2016 2017 2018 2019
Year
Figure 4
Gross Profit Margin for the years 2015-2019
Gross profit margin is a measure of profitability that shows the percentage of

revenue that exceeds the cost of goods sold (COGS). The gross profit margin reflects
how successful a company's executive management team is in generating revenue,
considering the costs involved in producing their products and services.
Usually, the higher the number of gross profit margin, the more it means that the
management is efficient when it comes to generating profit. But as you can see, the trend
on Figure 4 is lowering as years goes by but it does not indicate that company is not
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doing well. A high gross profit means that the company is selling the inventory for a
higher profit. Given that the Puregold is a store that retails groceries, it means that the
company is obtaining less profit from its sales. It does not indicate however that they are
not earning enough. It can mean that they are lowering their prices and increasing the
volumes of shares. That would explain the lowering of the gross profit margin. They are
lowering the costs so that they can increase the volume of share since according to
economics, the lower the price, the higher the demand.
Net Profit
Net Profit Margin= x 100
Sales
Year 2015
5002000000
Net Profit Margin= x 100=5.15
97172000000
Year 2016
5526000000
112589000000
Year 2017
5494000000
124703000000
Year 2018
6200000000
141139000000
Year 2019
6773000000
154490000000
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Net Profit Margin

5.40
5.20
5.15
5.00
4.91
4.80
4.60
4.41 4.39 4.38

4.40
4.20
4.00
2015 2016 2017 2018 2019
Figure 5
Net Profit Margin for the years 2015-2019
The net profit margin is a number which indicates the efficiency of a company at
its cost control. The net profit margin is the ratio of net profits to revenues for a company
or business segment. Expressed as a percentage, the net profit margin shows how much
of each dollar collected by a company as revenue translates to profit.
A higher net profit margin shows more efficiency of the company at converting
its revenue into actual profit. A low net profit margin just like what happens in Figure 5
means that the company maybe using an ineffective cost structure and/or poor pricing
strategies. This ratio is a good way of making comparisons between companies in the
same industry because profit margins can vary depending upon its industry. Retail
companies such as Puregold Price Club Inc. may have lower net profit margin but
usually, those that are in the same industry make up for their low profit margin with
higher sales volume.
Total Asset Last Year+Total Asset Current Year

Average Total Assets=
2
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Net Profit
Return on Assets= x 100
Average Total Assets
Year 2015
5002000000
Return on Assets= x 100=8.9
(53666395695+58843541318) 2
Year 2016
5526000000
58843541318+65382713754
Year 2017
5494000000
65382713754+71464093216
Year 2018
6200000000
71464093216+100849854570
Year 2019
6773000000
100849854570+108634797758
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Return on Assets
10.0
8.9 8.9
9.0
8.0
8.0
7.2
7.0 6.5
6.0
5.0
4.0
3.0
2.0
1.0
0.0
2015 2016 2017 2018 2019
Figure 6
Return on Assets for the years 2015-2019
Return on assets (ROA) is an indicator of how profitable a company is relative to

its total assets. ROA gives a manager, investor, or analyst an idea as to how efficient a
company's management is at using its assets to generate earnings. Return on assets is
displayed as a percentage.
One of management's most important jobs is to make wise choices in allocating
its resources, and it appears Puregold Price Club Inc. management is adept. We can
observe on Figure 6 that the trend in ROA is decreasing. This means that the organization
is spending more money on asset than making profit. This may look bad at the beginning
but there can be an explanation for this. The technology when it comes to supermarket
has been continuously improving, this may indicate that the organization is spending its
money to keep up with the technology in order to have a more efficient operation and
customer service.
Total Equity Last Year+Total Equity Current Year

Average Total Assets=
2
Net Profit
Return on Equity= x 100
Average Total Equity
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Year 2015
5002000000
Return on Equity= x 100=13.8
(34233494669+38413216763)2
Year 2016
5526000000
(38413216763+43173007872)/2
Year 2017
5494000000
( 43173007872+ 47961856151)/2
Year 2018
6200000000
( 47961856151+53011821729)/2
Year 2019
6773000000
(53011821729 +61899349933 ) /2
Return on Equity
14.0
13.8
13.5
13.5
13.0
12.5
12.3
12.1
12.0 11.8
11.5
11.0
10.5
2015 2016 2017 2018 2019
Figure 7
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Return on Equity for the years 2015-2019
The return on equity is the amount of net income returned as a percentage of

shareholders equity. Moreover, the return on equity estimates the profitability of a
corporation by revealing the amount of profit generated by a company with the money
invested by the shareholders
ROE does not only measure profit, but it also measures the efficiency of an
organization. Since on Figure 7, we can observe that the trend is declining, this suggests
that the organization is becoming a little less efficient in making profits but continuously
increasing the shareholder value. If you will observe from the graphs below, you can see
that Puregold Price Club Inc. is increasing their leverage. This can be an indicator that
they are trying to give rise to the ROE by taking debt.
Solvency ratio
A solvency ratio is a key metric used to measure an enterprise’s ability to meet its
long-term debt obligations and is used often by prospective business lenders. A solvency
ratio indicates whether a company’s cash flow is sufficient to meet its long-term
liabilities and thus is a measure of its financial health. It can indicate the likelihood that a
company will default on its debt obligations.
Total Asset
Solvency Ratio=
Total Liabilities
Year 2015
58843541318
Solvency Ratio= =2.88
20430324555
Year 2016
65382713754
22209705882
Year 2017
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71464093216
23502237065
Year 2018
100849854570
47838032841
Year 2019
108634797758
46735447825
Solvency Ratio
3.50
3.04
2.88
3.00 2.94
2.50 2.32
2.11
2.00
1.50
1.00
0.50
0.00
2015 2016 2017 2018 2019
Figure 8
Fixed Asset-to-Total Asset ratio for the years 2015-2019
Fixed-assets-to-net-worth ratio is a financial analysis technique that shows in
percentage terms the portion of your company's total assets that is tied up with fixed
assets. It shows the extent to which the company funds are frozen in the form of fixed
assets, such as property, plant, and equipment.
To analyze this ratio, you have to compare the fixed-asset-total-asset ratio of other
companies in the same industry in order to analyze whether the organization is in a safe
position. There is no ideal ratio to consider that one’s fixed asset to total asset ratio is
more preferable than not. But an increasing trend in this aspect is desirable because that
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will indicate that the company has less money tied up for each unit of sales. Based on
Figure 8, Puregold Price Club Inc.’s ratio is declining. This suggests that the company is
investing more in property, plant, and equipment. This does not necessarily indicate that
the company is making less sale. Because based on the financial position of the company,
their sales in continuously increasing each year. The company may then have been
investing to PPEs for modernization purposes and spending money for technology to
improve their operation.
Net Fix Asset

Fix Asset ¿ Net Worth Ratio=
Tangible Net Worth
Tangible Net Worth=Total Assets−Intangible Assets−Total Liabilities
Year 2015
15712000000
58843541318−19521000000−20430324555
Year 2016
17696000000
65382713754−19561000000−22209705882
Year 2017
19737000000
71464093216−19737000000−23502237065
Year 2018
19489000000
100849854570−19736000000−47838032841
Year 2019
21162000000
108634797758−19731000000−46735447825
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Fix Asset to Net Worth Ratio

0.90
0.83
0.80 0.75
0.70
0.70
0.60 0.59
0.50
0.50
0.40
0.30
0.20
0.10
0.00
2015 2016 2017 2018 2019
Figure 9
Fixed Asset-to-Net Worth ratio for the years 2015-2019
Fixed-assets-to-net-worth ratio is a financial analysis technique that shows in

percentage terms the portion of your company's total assets that is tied up with fixed
assets. It shows the extent to which the company funds are frozen in the form of fixed
assets, such as property, plant and equipment.
From the data on Figure 9, we can observe that the trend is decreasing. But this is
not a bad at all. A low ratio is in indication that the organization have greater solvency.
Meaning, more funds is available to meet current obligations.
Total Liability
Debt ¿ Equity Ratio=
Total Shareholde r ' s Equity
Year 2015
20430324555
Debt ¿ Equity Ratio =0.35
58843541318
Year 2016
22209705882
Debt ¿ Equity Ratio= =0.34
65382713754
Year 2017
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23502237065
71464093216
Year 2018
47838032841
100849854570
Year 2019
46735447825
108634797758
Debt to Equity Ratio

1.00
0.90
0.90
0.80 0.76
0.70
0.60
0.53 0.51
0.49
0.50
0.40
0.30
0.20
0.10
0.00
2015 2016 2017 2018 2019
Figure 10
Debt to equity ratio for the years 2015-2019
The debt-to-equity ratio is a quantification of a firm’s financial leverage estimated
by dividing the total liabilities by stockholders’ equity. This ratio indicates the proportion
of equity and debt used by the company to finance its assets.
The optimal debt-to-equity ratio should be above 2.0 because this usually
indicates that the company derives 2/3 of its capital financial from debt and 1/3 from
shareholders equity. Based on Figure 10, the trend of the debt-to-equity ratio of Puregold
is at optimal status. This will allow the organization to leverage small amount of money
into a larger sum and repay it overtime. Through optimal debt-to-equity ratio the
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company may make use of the leverage for financing and it will have the ability of
maximize its profit by having for money to fund the whole operation of the organization.
Total Liability
Debt Ratio=
Total Asset
Year 2015
20430324555
Debt Ratio= =0.35
58843541318
Year 2016
22209705882
Debt Ratio= =0.34
65382713754
Year 2017
23502237065
Debt Ratio= =0.33
71464093216
Year 2018
47838032841
Debt Ratio= =0.47
100849854570
Year 2019
46735447825
Debt Ratio= =0.43
108634797758
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Debt Ratio
0.50 0.47
0.45 0.43
0.40
0.35 0.34
0.35 0.33
0.30
0.25
0.20
0.15
0.10
0.05
0.00
2015 2016 2017 2018 2019
Figure 11
Debt ratio for the years 2015-2019
The debt ratio is a financial ratio that measures the extent of a

company’s leverage. The debt ratio is defined as the ratio of total debt to total assets,
expressed as a decimal or percentage. It can be interpreted as the proportion of a
company’s assets that are financed by debt.
Usually, if you are a person who really look out for risks, lower ratios such as
ratios below .40 are consider better debt ratios. This perspective comes from the concept
that interest in debt must be paid despite the profitability status on an organization. Since
we can observe that the debt ratios of Puregold Price Club Inc. for the last five years did
not increased drastically, this is a good indicator. A higher risk debt ratio as such those
that have ratios of 0.60 and higher makes it more difficult to borrow money.
We can conclude that Puregold Price Club Inc. is in a safe line when it comes to
debt. Because although having lower ratio indicates you are a credit worthy organization,
there are also risks that are associated with a company that carries small debts.
Shareholde r ' s Equity

Equity Ratio=
Total Asset
Year 2015
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38413216763
Equity Ratio= =0.64
58843541318
Year 2016
43173007872
Equity Ratio= =0.67
65382713754
Year 2017
47961856151
Equity Ratio= =0.66
71464093216
Year 2018
53011821729
Equity Ratio= =0.67
100849854570
Year 2019
61899349933
Equity Ratio= =0.53
108634797758
Equity Ratio
0.80
0.70 0.65 0.66 0.67
0.64
0.60
0.53
0.50
0.40
0.30
0.20
0.10
0.00
2015 2016 2017 2018 2019
Figure 12
Equity ratio for the years 2015-2019
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The shareholder equity ratio indicates how much of a company's assets have been
generated by issuing equity shares rather than by taking on debt. The lower the ratio
result, the more debt a company has used to pay for its assets.
When it comes to equity ratios, those that are .50 or lower are considered
leveraged. Those that are have .50 and above are called to be conservative since they are
own more equity that debt. Based on the given graph from above, we can observe that
throughout the years, Puregold Price Club has maintained their equity ratio above .50 and
we can conclude that they are conservative when it comes to their equity and debt.
Meaning, they are having more capital than debt.
By having this kind of conservatism, investors will most like consider investing
because this type or organization is less risky because Puregold Price Club Inc. must
know how to collect and fund their operation requirements without incurring any
substantial debt. Even financial institution will consider lending to this type of
organization because companies with ratios above .50 is an indication they manage their
funds effectively while they can pay off the debt in a timely manner since gathering fund
will not be a problem.
Price per share

Earnings per Share Ratio=
Earnings per share
Earnings Ratio
25 23.68
19.19
20 19.52 19.18
16.79
15
10
0
2015 2016 2017 2018 2019
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Figure 13
Earnings ratio for the years 2015-2019
Earnings per share (EPS) is calculated as a company's profit divided by the

outstanding shares of its common stock. The result of this computation will determine the
company’s profitability. The higher the among of the earnings per share of the company,
the more profitable it is considered to be.
Looking at the earnings per share of the Puregold Price Club Inc. it will not look
as appealing to the investors. Since the organization hit its highest point during 2017, it
continuously went down until 2019. If this trend will continue, the organization will find
it hard to look for investors. Given that 16.79 (the earning per share during 2019) does
still look profitable, its previous performance will affect the desire of the investors
because if this will continue, it is only a matter of year before the trend becomes negative.
This trend will alarm the investors.
CONCLUSION AND RECOMMENDATION

The organization must do its best to maintain its debt ratio to minimal because
based on the graphs, it is increasing as time goes by, they must avoid reaching the
threshold of 0.60 debt ratio by avoiding borrowing more money and lessen the purchases
they make using credit. But given that their ROE is also decreasing, they must also make
credits to help it rise again. They must then ensure to remain at optimal ratio to keep their
investors from worrying about their method of managing their operation.
When it comes to the equity per share ratio, since the trend is going down,
expanding their margin will help them increase the ratio and therefor it will be appealing
to more investors. This is will also give the current shareholders peace of mind when it
comes to their investment. This can happen if Puregold Price Club Inc. will lower their
cost. They can lower the amount of shares that can be bought but they have to make sure
that their profit remains stable. This will turn raises in the EPS.
REFERENCES
For assessment of financial ratios:
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Brigham, E. F., Houston, J. F. (2019). Fundamentals of Financial Management 15th

Edition. Dryden Press. Chicago
Chandra, Prasanna (2014). Fundamentals of Financial Management. McGraw Hill
Education Private Limited. India
For financial report of organizations:
https://edge.pse.com.ph/financialReports
https://www.investopedia.com/
APPENDIX
Print out of Statement of Financial Position (balance sheet) and Statement of
Financial Performance (income statement) for the period 2015 to 2019 which you used in
computing for the above ratios.
Please note that all information given below can be downloaded from
edge.pse.com.ph. I have used the most recent version of each year’s financial statements
because each reporting period, the statements are adjusted.
Statement of Comprehensive Income

Basis for year 2014
Basis for year 2015
Page 26 | 32
GRADUATE SCHOOL
Basis for Year 2016
Basis for year 2017, 2018, & 2019
Page 27 | 32
GRADUATE SCHOOL
Statement of Financial Position

Basis for year 2014
Page 28 | 32
GRADUATE SCHOOL
Basis for year 2015
Page 29 | 32
GRADUATE SCHOOL
Page 30 | 32
GRADUATE SCHOOL
Basis for Year 2016
Basis for year 2017, 2018, & 2019
Page 31 | 32
GRADUATE SCHOOL
Page 32 | 32

Financial Statement Analysis - Puregold Price Club

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Financial Statement Analysis - Puregold Price Club

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BATANGAS STATE UNIVERSITY

College of Accountancy, Business Economics and International Hospitality Management

Analysis of Financial Performance of

Puregold Price Club, Inc. (PGOLD) was incorporated on September 8, 1998 as a

Liquidity ratios are an important class of financial metrics used to determine a

Current Ratio for the years 2015-2019

Current Assets−Inventory −Prepaid Expenses

An activity ratio is a type of financial metric that indicates how efficiently a

Receivables Last Year + Receivables Current Year

Receivables Collection Period

Gross Profit Margin

Gross profit margin is a measure of profitability that shows the percentage of

Net Profit Margin

4.41 4.39 4.38

Total Asset Last Year+Total Asset Current Year

Return on assets (ROA) is an indicator of how profitable a company is relative to

Total Equity Last Year+Total Equity Current Year

Return on Equity for the years 2015-2019

The return on equity is the amount of net income returned as a percentage of

Net Fix Asset

Tangible Net Worth=Total Assets−Intangible Assets−Total Liabilities

Fix Asset to Net Worth Ratio

Fixed-assets-to-net-worth ratio is a financial analysis technique that shows in

Debt to Equity Ratio

The debt ratio is a financial ratio that measures the extent of a

Shareholde r ' s Equity

Price per share

Earnings per share (EPS) is calculated as a company's profit divided by the

CONCLUSION AND RECOMMENDATION

Brigham, E. F., Houston, J. F. (2019). Fundamentals of Financial Management 15th

Statement of Comprehensive Income

Basis for year 2015

Basis for Year 2016

Basis for year 2017, 2018, & 2019

Statement of Financial Position

Basis for year 2015

Basis for Year 2016

Basis for year 2017, 2018, & 2019

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