It can be noted in Centro Escolars Universitys Statement of Financial

Position that there is a 46.9% increase in the current assets, and 29%
increase in current liabilities. The increase in current assets is due to the
46.2% increase in Cash and Cash Equivalents, 81.1% increase in Tuition and
Other Receivables, and 287% increase in other assets.
Take note of the decrease in Inventories of 16.6%, this could be related
to the increase in cash because there are more inventory turnovers during
the year, which might have caused the 31% increase in Miscellaneous
Income. This means that the institution has maximized its inventory for cash
generation purposes. However, the drastic increase in Tuition and Other
Receivables showed that the company had slow conversion into cash.
For the current liabilities, the 29% increase was due to an 80.1%
increase on Dividends Payable, which can be related to the 3.71% increase in
total comprehensive income and 74.7% decrease in the unappropriated
retained earnings, and 41.3% increase in Income Tax Payable, which resulted
from the higher net income before tax reported by the institution.
In totality, it can be inferred that Centro Escolar University and
Subsidiaries are liquid, because its current assets are higher than its current
liabilities, which means that CEU can settle its current obligations.
Focusing on CEUs stability, it can be seen that there is a 24.4%
increase in total liabilities, compared to 3.6% increase in its equity. This can
be related to the company not issuing additional shares, and decrease in the
companys unappropriated retained earnings.
Also, CEUs Property, plant and equipment carried at cost was
increased by 1.2%, which means that the company spends more on
maximizing its fixed assets for income generation.
We can infer that from the results of the analysis of CEUs Long-term
Financial Position, the company is solvent and stable.

On the Income Statement, the total net income change of 15% infers
that CEU is profitable. Also, the increase in service revenue of 6%, even with
a 2% increase in the cost of services, means that the operation of the
institution is efficient for income generation.
Based on the conclusion given, it can be recommended that though
CEU is liquid, solvent, stable, profitable and efficient, if it further maximize
the utilization of its assets, then its performance can double because of
greater return on assets. It shall also maintain its current standing with
respect to its liabilities; this signifies that the institution can continue its
operation because the proportion of the capital owned by the owners is
greater than that of the creditors.