Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd
Upload
35 views

Assignment Sir Ram

- ABS-CBN and GMA are two major broadcast networks in the Philippines. In 2018, ABS-CBN had better accounts receivable, collection period, accounts payable, and age of payables ratios, while GMA had better inventory turnover and age of inventory ratios. In 2019, ABS-CBN maintained better accounts receivable and collection period ratios, while GMA maintained better inventory turnover and age of inventory ratios. GMA had higher total asset and fixed asset turnover ratios than ABS-CBN in both years.

Uploaded by

Lindbergh Sy
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
35 views

Assignment Sir Ram

- ABS-CBN and GMA are two major broadcast networks in the Philippines. In 2018, ABS-CBN had better accounts receivable, collection period, accounts payable, and age of payables ratios, while GMA had better inventory turnover and age of inventory ratios. In 2019, ABS-CBN maintained better accounts receivable and collection period ratios, while GMA maintained better inventory turnover and age of inventory ratios. GMA had higher total asset and fixed asset turnover ratios than ABS-CBN in both years.

Uploaded by

Lindbergh Sy
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

ABS-CBN and GMA Comparison 2018

Accounts
Abs CBN is better because they can turn their receivables into cash 3.62 times which is
Receivable
more often than GMA can (2.47 times) during the year.
Turnover Ratio
Average Collection ABS-CBN has a better collection period because their collection period of 99.36 days is
Period shorter than GMA which is 145.56 days.
Inventory turnover of GMA is much better than ABS-CBN because they can sell their
Inventory Turnover
inventory 445.40 times each year which is more than ABSCBN (43.09 times each year
Ratio
only)
The average age of inventory of GMA is much better than ABSCBN because it shows
Average Age of
that they can sell their inventory daily. Data shows that GMA holds its inventory for 0.81
Inventory
days only as compared to its rival network which is 8.35 days.
Data shows that ABS-CBN has a better accounts payable ratio because it is able to pay
Accounts Payable
its debts 15.93 times each year which is more often as compared to GMA which pays its
Ratio
debts 8.51 times a year.
ABSCBN has a shorter age of payables which shows that they are able to pay their
Average Age of
debts much earlier than GMA. It takes ABS-CBN 22.60 days to pay its short term debts
Payable
while it takes GMA 42.31 days to pay its short term debts.
ABS CBN has a shorter operating cycle of 107.72 days as compared to GMA which
Operating Cycle
shows that it is slightly better overall when it comes to its operations.
ABS CBN has a shorter cash conversion cycle than GMA which means that it is better
Cash Conversion
at collecting cash than its rival network. ABS-CBN can convert assets into cash im
Cycle
85.11 days while GMA can do it in 104.07 days.
Total Asset GMA has a better total asset turnover of 1.01 than ABS CBN which is 0.50 . Its higher
Turnover Ratio turnover shows that GMA can more efficiently produce sales as compared to ABS CBN.
Fixed Asset GMA has a higher fixed asset turnover ratio of 2.11 as compared to 1.50 for ABSCBN
Turnover Ratio which shows that its fixed assets can generate more sales than ABSCBN

ABS-CBN and GMA Comparison 2019


Accounts ABS CBN has a higher Accounts Receivable turnover ratio which is better than GMA
Receivable because it shows that ABS-CBN can collect its receivables 3.99 times which is slightly
Turnover Ratio more often than that of GMA which is 3.28 times in a year.
Average Collection The average collection period of 92.73 days for ABS CBN is shorter than GMA (109.59
Period days) which shows that ABS-CBN can collect its receivables much faster than GMA.
GMA has a higher inventory turnover than ABS-CBN which shows that it can sell its
Inventory Turnover inventory more often than ABS-CBN during the year. According to the data, GMA can
Ratio sell its inventory 491.66 times in a year while ABS-CBN can only sell its inventory 38.76
times during the year.
GMA has a lower average age of inventory than ABS-CBN which means that it holds its
Average Age of
inventory much less than ABS-CBN. GMA holds its inventory for as long as 0.73 days
Inventory
before it can sell its inventory while ABS-CBN holds its inventory for 9.29 days.
ABS-CBN has a higher accounts payable turnover ratio which means that ABS CBN is
Accounts Payable able to pay its debts more often than GMA. The data shows that ABS CBN can pay its
Ratio Accounts Payable 14.94 times as compare to GMA which is 10.64 times during the
year.
ABS-CBN has a lower average age of payables than GMA which shows that ABS CBN
Average Age of
is able to pay its debts on time. It takes ABS-CBN 24.10 days to settle its accounts
Payable
payable while it takes GMA 33.84 days.
ABS CBN has a shorter operating cycle of 102.01 days as compared to GMA’s 110.33
Operating Cycle
days which shows that it is slightly better overall when it comes to its operations.
ABS CBN has a shorter cash conversion cycle than GMA which means that it is better
Cash Conversion
at collecting cash than its rival network. ABS-CBN can convert its assets into cash
Cycle
within 77.92 days while GMA can do it in 76.58 days.
GMA has a better total asset turnover of 1.04 than that of ABS-CBN which is 0.52. Its
Total Asset
higher turnover shows that GMA can more efficiently produce sales as compared to
Turnover Ratio
ABS CBN
Fixed Asset GMA has a higher fixed asset turnover ratio of 3.01 than ABSCBN (1.55) which shows
Turnover Ratio that its fixed assets can generate more sales than ABSCBN

You might also like