1

GMA NETWORK, INC.

RATIO ANALYSIS
CATEGORY DESCRIPTION COMPUTATION RATIO REFERENCE INTERPRETATION
LIQUIDITY RATIOS

GMA NETWORK INC. has a good degree of
liquidity. Based on its current ratio, it has
2.15pesos of current assets for every peso
of liability. It's quick ratio points to adequate
liquidity even after excluding pre-payments,
with 2.10 pesos in assets that can be
converted rapidly to cash for every peso of
current liabilities. A material change that
leads to the increase of the computed ratio
is the increase in cash and short-term by 5%
which is equivalent to P1, 758 million at
year-end which is directly attributed to this
years result of operation.
1. Liquid/ Acid Test
Ratio
(Cash and Cash
Equivalents +
Short-Term
Investments
Trade and Other
Receivables)/Curr
ent Liabilities
(1,749,631,196+7,874,00
2+3,521,430,443)/3,314,3
37,516 1.59
Financial
Position, page
2
2. Cash Ratio
Cash and Cash
Equivalents/
Current Liabilities
1,749,631,196/3,314,337,
517 0.582
Financial
Position, page
2
3. Current Ratio
Current
Assets/Current
Liabilities
7,123,258,726/3,314,337,
516 2.15
Financial
Position, page
2


ACTIVITY/EFFICIENCY
RATIOS

1. Accounts Receivable
Turnover
Sales on
Account(Net
Income)/Average
Accounts
Receivable*
12,950,879,332/3,681,905
,190
3.5174396
55
Accounts
Receivable=Fi
nancial
Position, page
2; Net
Income=
Comprehensiv
e Income,
page 2
GMA NETWORK INC. has a better
Accounts Receivable turnover compared to
last year which is 3.020077558 which
means that the company maybe had extra
efforts during 2013 than 2012 which
eventually improved their accounts
receivable turnover by approximately 0.49
times which is significant. This also indicates
that they had collected on an average of 104
days their accounts receivable during the
years as compared to last year which took
them approximately 121 days with their
collection of accounts receivable.

*Average
Accounts
Receivable=
(Accounts
Receivable, beg
+Accounts
Receivable, end
)/2
3,512,420,443+3,842,389
,937)/2=3,681,905,190


2
GMA NETWORK, INC.
RATIO ANALYSIS
2. Average Collection
Period
365
days/Accounts
Receivable
Turnover 365dats/3.517439665
103.76866
01days



SOLVENCY RATIOS

1. Debt to Equity Ratio
Total Liabilities/
Average
Shareholder's
Equity
1,106,875000/8,788,423,8
23 0.13
Financial
Position, page
2
Financial leverage based on its solvency
ratio appears to be at comfortable levels
with debt at only 13% equity and only 33%
of assets are financed by debt. Since we are
comparing short-term loans over total equity,
the decrease of debt-to-equity ratio is
caused by decrease of short term loans by
35% as payments made are higher P2,
5000M versus payment of only P1, 825M
during 2012. Moreover interest expense can
be covered by earnings before income tax
and interest expense by 4.95 times.
Although it was a decrease from 2012 ratio it
is still good because we have greater
earnings in 2013-2012.
2.Times Interest-Earned
Ratio
EBIT/Interest
Expense 2,440,421,287/53,115,234 45.95
Comprehensiv
e Income,
page 2
3. Debt to Asset Ratio
Total
Liabilities/Averag
e Total Assets
4,258,863,770/[(13,083,9
36,951+12,682,283,099)/
2] 0.33
Financial
Position, page
2


PROFITABILTY
RATIOS

1.Gross Profit Margin Gross Profit/Sales
6,994,497,617/12,950,879
,322 54.00%
Comprehensiv
e Income,
page 2
A 54% gross margin ratio means that the
company is profitable. It has a positive
investment quality meaning it has a high
earning that drives up its stock price. The
company management is also effective and
flexible in adapting trends, events, demands
or uncertainties that have or which are
reasonably expected to have a material
impact on their revenue or income. The
company management is also efficient and
effective in employing and utilizing its
assets. Because the company is profitable,
2. Return on Sales
Net Income/Net
Sales
1,674,975,012/12,950,879
,322 12.93%
Comprehensiv
e Income,
page 2
3. Total Asset Turnover
Net Sales
/Average Total
Assets1,674,975,
013/12,950,879,3
22
12,950,879,332/3,681,905
,190 1.005x
Net
Income=Comp
rehensive
Income, page
2; Total
Assets=Financ

3
GMA NETWORK, INC.
RATIO ANALYSIS
ial Position,
page 2
shareholders earned 19.74% for their
investment in the company.
4. Return on Total
Assets
(Net
Income+[Interest
Expense(1-Tax
Rate)]/Average
Total Assets
1,674,975,012+[53,115,2
34(1-
30%)]/[(13,083,936,9510+
12,682,283,099)/2] 13.29%
Net Income
and Interest
expense,=Co
mprehensive
Income page
2; Average
Total
Assets=Financ
ial Position,
page 2
5. Return on Equity
Net Income/
Average Total
Equity
1,674,975,012/[(8,825,07
3,181+8,149,431,500)/2] 19.74
Net
Income=Comp
rehensive
Income page
2; Average
Total
Equity=Financi
al Position,
page 2
6. Earnings per share
Net Income-
Preferred
Dividends/
Average Number
of Ordinary Share
Outstanding
1,666,949,855-
514,435,885/3,360,297,00
0 0.343
Note 29 pages
60-61

7. Dividend Payout Ratio
Dividend per
share/EPS 0.25/0.343 0.73
Notes 19 page
50
8.Book value per share
Ordinary
Shareholder's
Equity/ Number of
Ordinary Shares
Outstanding, end
5,000,000,000/3,361,047,
000 1.49
Independent
Report on
Supplementary
Schedules,
Schedule H
9. Working Capital
Current Assets-
Current Liabilities
7,123,258,726-
3,314,337,516
38089212
10
Financial
Position, page
2

4
GMA NETWORK, INC.
RATIO ANALYSIS


ADDITIONAL RATIOS

1. Asset to Equity
Total Asset/Total
Equity
13,083,936,951/8,825,073
,181 1.48
Financial
Position, page
2

2. Net Income Margin
Net Income/Net
Revenue
1,674,975,012/12,950,879
,322 12.93
Comprehensiv
e Income,
page 2

P/E RATIO AS OF SEPTEMBER 19, 2014= 21.98