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    Cashflow Coverage Ratio of Mga Likha Ni Inay Corporation

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    Kcann Reyes
    The document discusses financial ratios for two companies, Mga Likha ni Inay Corporation and All Homes Corporation, for the years 2015-2016 and 2019-2020 respectively. It provides the cashflow coverage ratio, current liability coverage ratio, net profit margin, gross profit margin, rate of return on assets, and rate of return on equity for each company and year. The ratios show that Mga Likha ni Inay Corporation's profitability increased from 2015 to 2016 while All Homes Corporation's current liability coverage ratio declined from 2019 to 2020.

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    Cashflow Coverage Ratio of Mga Likha Ni Inay Corporation

    Uploaded by

    Kcann Reyes
    45 views3 pages
    The document discusses financial ratios for two companies, Mga Likha ni Inay Corporation and All Homes Corporation, for the years 2015-2016 and 2019-2020 respectively. It provides the cashflow coverage ratio, current liability coverage ratio, net profit margin, gross profit margin, rate of return on assets, and rate of return on equity for each company and year. The ratios show that Mga Likha ni Inay Corporation's profitability increased from 2015 to 2016 while All Homes Corporation's current liability coverage ratio declined from 2019 to 2020.

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    The document discusses financial ratios for two companies, Mga Likha ni Inay Corporation and All Homes Corporation, for the years 2015-2016 and 2019-2020 respectively. It provides the cashflow coverage ratio, current liability coverage ratio, net profit margin, gross profit margin, rate of return on assets, and rate of return on equity for each company and year. The ratios show that Mga Likha ni Inay Corporation's profitability increased from 2015 to 2016 while All Homes Corporation's current liability coverage ratio declined from 2019 to 2020.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    45 views3 pages

    Cashflow Coverage Ratio of Mga Likha Ni Inay Corporation

    Uploaded by

    Kcann Reyes
    The document discusses financial ratios for two companies, Mga Likha ni Inay Corporation and All Homes Corporation, for the years 2015-2016 and 2019-2020 respectively. It provides the cashflow coverage ratio, current liability coverage ratio, net profit margin, gross profit margin, rate of return on assets, and rate of return on equity for each company and year. The ratios show that Mga Likha ni Inay Corporation's profitability increased from 2015 to 2016 while All Homes Corporation's current liability coverage ratio declined from 2019 to 2020.

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     Cashflow coverage ratio of Mga Likha ni Inay Corporation

      2016: 6,505,326 / 14,249,101 = 0.46


     Interpretation: for every PhP 1.00 of total liabilities, MLIC has 0.46net cashflow
    from operating activities as of Dec. 31, 2016
     2015: 343,646/ 3,397,818= 0.10
     Interpretation: for every PhP 1.00 of total liabilities, MLIC has 0.10 net cashflow
    from operating activities as of Dec. 31, 2015

      Current liability coverage ratio of All Homes Corporation


     2020: 233,463,750 / 3,855,424,513 = 0.06
     Interpretation: for every PhP 1.00 of current liabilities, All Homes has 0.06 net cashflow
    from operating activities as of Dec. 31, 2020
      2019: 2,554,946,080 / 2,465,483,571 = 1.04
     Interpretation: for every PhP 1.00 of current liabilities, All Homes has 1.04 net cashflow
    from operating activities as of Dec. 31, 2019

    Net Profit Margin 2016


    2, 966, 432 / 37, 988, 804 = 0.08
    Interpretation: For every PhP 1.00 of net sales of MLIC Corporation, they has 0.08 net profit as
    of Dec 31, 2016
    Net Profit Margin 2015
    167,627 / 9,531,439= 0.02
    Interpretation: For every PhP 1.00 of net sales of MLIC Corporation, they has 0.02 net profit as
    of Dec 31, 2015

    GROSS PROFIT MARGIN 2016


    12,131,502 / 37,988,804 = 0.32
    Interpretation: For every PhP 1.00 of net sales of MLIC Corporation, they has 0.32 gross profit
    as of Dec 31, 2016
    GROSS PROFIT MARGIN 2015
    1,378,197 / 9,531,439 = 0.14
    Interpretation: For every PhP 1.00 of net sales of MLIC Corporation, they has 0.14 gross profit
    as of Dec 31, 2015

    RATE OF RETURN ON ASSETS 2016


    2,966,432 / 11,017,034.5 = 0.27
    Interpretation: For every PhP 1.00 of average total assets of MLIC Corporation, they has 0.27
    net profit as of Dec 31, 2016

    RATE OF RETURN ON ASSETS 2015


    167,627 / 11,017,034 =0.02
    Interpretation: For every PhP 1.00 of average total assets of MLIC Corporation, they has 0.02
    net profit as of Dec 31, 2015

    RATE OF RETURN ON EQUITY 2016


    2,966, 432 / 2,193,575 = 1.35
    Interpretation: For every PhP 1.00 of average total equity of MLIC Corporation, they has 1.35
    net profit as of Dec 31, 2016

    RATE OF RETURN ON EQUITY 2015


    167, 627 / 2,193,575 = 0.08
    Interpretation: For every PhP 1.00 of average total equity of MLIC Corporation, they has 0.08
    net profit as of Dec 31, 2015

     Current liability coverage ratio of Mga Likha ni Inay Corporation


     2016: 6,440,844 /14,100,373 = 0.46
     Interpretation: for every PhP 1.00 of current liabilities, MLIC has 0.46 net cashflow from
    operating activities as of Dec. 31, 2016

     2015: (342,183)/ 2,801,276 = 0.12

     Interpretation: for every PhP 1.00 of current liabilities, MLIC has 0.12 net cashflow from
    operating activities as of Dec. 31, 2015
    NET CASHFLOW USING OPERATING ACTIVITIES – 2016- 6,440,844 2015- (342,183)
    CURRENT LIABILITIES - 2016- 14,100,373 2015- 2,801,276

    TOTAL LIABILITIES – 2016 -14,249,101 2015- 3,397,818

    DEPRECIATION - 2016 - 189,848 2015- 50,638

    NET CASHFLOW FROM OPERATIONS – 2016 - 6,505,326 2015-(343,646)


    net profit margin measures how much net profit a company makes with net sales. The greater the net
    profit margin, the more efficient a company is when it comes to converting sales into actual profit. While it
    is desirable for most companies to have a high net profit margin, it will vary between and within industries
    due to competitive factors, economic conditions, debt financing, and operating features such as high fixed
    expenses. Now, for the Mga Likha ni Inay Corporation, their net profit, and net profit margin increased for
    the year 2016 compared to the year 2015 due to fixed operating expenses that were incurred during the
    closure of stores in the second quarter. As a result of the foregoing, their net income increased from PHP
    9.5 million for the year 2015 to ₱37.9 million for the year 2020. This analysis shows that All Homes net
    profit margin declined moderately but would still be considered high

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