UNIVERSAL ROBINA CORPORATION

________________________________________

A Research Paper
Presented to
BRIAN HOJAS ALCORDO
Xavier University
Cagayan de Oro City

_______________________________________

In Partial Fulfilment
of the requirements in
Finance 11

By:

Fercita May Waminal

April Joy Barrogo

Ivy Joy Galia

Arnold Davin
Jezel Pongasi
Angelia Parungao
Glykha May Lubas

Date of Submission:
May 18, 2016

Table of Contents

I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.

Purpose
Executive Summary
Corporate Overview
Business Strategy
Quantitative Analysis
Comprehensive Analysis
Recommendation
Conclusion
Bibliography
Appendix

Finance 11 (Basic Finance)

Research paper Outline

I.

II.

PURPOSE:
The objective of financial statements is to provide information about the financial
position, performance and changes in financial position of an enterprise that is useful
to a wide range of users in making economic decisions. Financial statements should
be understandable, relevant, reliable and comparable. Reported assets, liabilities,
equity, income and expenses are directly related to an organization's financial
position. Financial statements are intended to be understandable by readers who have
"a reasonable knowledge of business and economic activities and accounting and who
are willing to study the information diligently.
Financial statements may be used by users for different purposes:
Owners and managers require financial statements to make important business
decisions that affect its continued operations. Financial analysis is then
performed on these statements to provide management with a more detailed
understanding of the figures. These statements are also used as part of
management's annual report to the stockholders.

Employees also need these reports in making collective bargaining agreements

(CBA) with the management, in the case of labor unions or for individuals in
discussing their compensation, promotion and rankings. Prospective investors
make use of financial statements to assess the viability of investing in a
business. Financial analyses are often used by investors and are prepared by
professionals (financial analysts), thus providing them with the basis for
making investment decisions.

Financial institutions (banks and other lending companies) use them to decide
whether to grant a company with fresh working capital or extend debt
securities (such as a long-term bank loan or debentures) to finance expansion
and other significant expenditures.

EXECUTIVE SUMMARY:

Universal Robina Corporation (URC) was founded in 1954 when Mr. John
Gokongwei, Jr. established Universal Corn Products, Inc., a cornstarch manufacturing
plant in Pasig. The Company is involved in a wide range of food-related businesses,
including the manufacture and distribution of branded consumer foods, production of
hogs and day-old chicks, manufacture of animal and fish feeds, glucose and veterinary
compounds, flour milling, and sugar milling and refining. URC operates its food business
through operating divisions and wholly-owned or majority-owned subsidiaries that are
organized into three core business segments, namely, branded consumer foods, agroindustrial products and commodity food products. The Company is also engaged in
consumer product-related packaging business through its packaging division, which is
included in the branded consumer food segment, and through its subsidiary, CFC
Clubhouse Property, Inc. The Company sells its branded food products primarily to
supermarkets, as well as directly to top wholesalers, large convenience stores, large scale
trading companies and regional distributors, which in turn sell its products to other small
retailers and down line markets. Moreover, the products are distributed to approximately
120,000 outlets in the Philippines and sold through URC's direct sales force and regional
distributors. The attached report analyses the financial condition of the company in the
years ended September 30, 2012 and 2011. During the year ended September of 2012,
sales at Universal Robina were 71.20 billion Philippine Pesos (US$1.75billion). This is
an increase of 6.0% versus 2011, when the company's sales were67.17 billion Philippine
Pesos. This was the fifth consecutive year of sales increases at Universal Robina (and
since 2007, sales have increased a total of 89%). Sales of Branded saw an increase of
11.3% in 2012, from 50.56 billion Philippine Pesos to 56.26 billion Philippine Pesos. Not
all segments of Universal Robina experienced an increase in sales in 2012: sales of
Commodity fell 20.5% to 7.57billion Philippine Pesos. The company improved its
financial condition in 2012. Due to the product innovation the company was able to
sustain its financial growth. Also its strategic expansion to the international market
contributed
to
the
healthy
cash
generation
of
the
company.
(https://www.scribd.com/doc/132221743/Universal-Robina-Corporation-A-FinancialAnalysis)

III.

CORPORATE OVERVIEW:
Universal Robina Corporation (URC) is one of the largest branded consumer food
and beverage product companies in the Philippines and has a significant and growing
presence in the ASEAN markets. URC is among the Philippines' pioneers in the industry.
It has been in operations for over 50 years since John Gokongwei, Jr. established
Universal Corn Products, Inc, a cornstarch manufacturing plant in Pasig, in 1954.
URC is engaged in a wide range of food-related businesses, including the
manufacture and distribution of branded consumer foods and is also in commodities
namely sugar million band refining and flour milling and in Agro industrial businesses of
farms mainly hogs and animal feed milling and related products.
URC is the leading branded snack foods and Beverage Company in the
Philippines. URC is the first "Philippine Pan ASEAN Multinational" and has proven
itself to be a trailblazer in manufacturing with a strong and loyal consumer base. The
company has unswervingly showcased its innovation and excellence through its
groundbreaking products, wide distribution network, and effective marketing. This is also
evident in URC's formidable market leadership in snack foods and beverages.
John Gokongwei Jr. established a vision for URC to become one of the leading
pan Asian players in snack foods and beverages. This vision is gradually being realized as
URC has managed to transform itself from a Philippine operation to a recognized Asian
multinational with full scale operations in eight countries outside the Philippines, and
soon in emerging markets like Myanmar, Laos and Cambodia. In addition, URC's
products are already being exported to mainstream markets in the US, Europe, Japan,
Korea the Middle East and frontier markets in West Africa, like Ghana and Nigeria.
URC has built three strong regional brands over the years; "Jack 'n Jill" for snack
foods, "C2" for ready to drink tea, and "Great Taste" for coffee, with these brands
becoming popular across the ASEAN region. URC's key to success is to build very strong
branding through a robust product innovation pipeline, consumer-centric marketing and
world-class manufacturing and supply chain management. URC will continue to
transform itself in line with the changing external dynamics in line with increasing
opportunities in Asia and beyond.

IV.

BUSINESS STRATEGY:
The Company aims to recognize, measure, analyze, monitor, and control all forms
of risk that would affect the Company. Audit Committee: The AC reviews the
effectiveness of risk management systems employed by the Company.
The AC shall assist the Group's Board of Directors in its fiduciary responsibility
for the over-all effectiveness of risk management systems, and both the internal and
external audit functions of the Company. Furthermore, it is also the AC's purpose to lead
in the general evaluation and to provide assistance in the continuous improvements of
risk management, control, and governance processes.
The AC aims to ensure that: Financial reports comply with established internal
policies and procedures, pertinent accounting and auditing standards and other regulatory
requirements; Risks are properly identified, evaluated, and managed, specifically in the
areas of managing credit, market, liquidity, operation, legal, and other risks, and risk
management; Audit activities of internal and external auditors are done based on plan,
and deviations are explained through the performance of direct interface functions with
the external and internal auditors; and the Group's Board of Directors is properly assisted
in the development of policies that would enhance the risk management and control
systems.
Enterprise Risk Management Group (ERMG) The ERMG was created to be
primarily responsible for the execution of the enterprise risk management framework.
The ERMG's main concerns include: Recommending risk policies, strategies,
principles, framework, and limits; Managing fundamental risk issues and monitoring of
relevant risk decisions; providing support to management in implementing the risk
policies

and

strategies;

and

developing

(http://www2.urc.com.ph/enterprise_risk_management)

risk

awareness

program.

V.

QUANTITATIVE ANALYSIS:

A. LIQUIDITY
URC

2012

2013

2014

Industry
Average

Time Series

Common Evaluation
Size

Current
Ratio

1.98

2.27

1.90

Poor

Poor

Quick
Ratio

1.49

1.52

1.19

Deteriorating Fair

Poor
Slightly
Poor

Liquidity refers to the ability of an institution to meet demands for funds. Liquidity
management means ensuring that the institution maintains sufficient cash and liquid assets (1) to
satisfy client demand for loans and savings withdrawals, and (2) to pay the to pay the
institutions expenses. (Monnie M. Biety, 2015)
SMFC

2012

2013

2014

Time Series

1.62

Industry
Average
1.7

Current
Ratio
Quick
Ratio

1.68

2.14

0.97

1.56

1.07

0.85

Deterioratin
g

Poor

Common
Size
Poor

Evaluatio
n
Poor

Fair

Slightly
Poor

1. Problem Identification / Potential Threat to Sustainability

Universal Robina Corporation encounters high and low in terms of quick

ratio, so the inventory has a great effect on ratio proportions.

2. Assessment / Analysis / Interpretation

As we review the calculations of ratios lately, based on financial position for the year 2012, the
URCs current ratio is 1.98 and its quick ratio is 1.49. San Miguel Purefoods which is its
competitor has a current ratio of 1.68 and its quick ratio is 0.97. In this sense, we can determine
that URCs Industry safety factor to meet maturing short-term obligations is noticeably good,
better than its competitors. Under quick ratio, we can conclude that the business can meet its
current financial obligations with the available quick funds on hand.
For the year 2013, the URCs current ratio is 2.27, and the quick ratio is 1.52. Its competitor has
a current ratio of 1.52 and a quick ratio of 1.56. The URCs current ratio had increased from
2012 to 2013 by 0.29 and its quick ratio also, increased by 0.03. Though the competitors quick
ratio is higher than URC, it is still in reasonable growing trend. It also shows that the firms
current ratio is capable enough to meet their short-term obligations while, the quick ratio is even
more, it shows that the business can meet its current financial obligations with the available
quick funds on hand, or the company may keep too much cash on hand or have a problem
collecting its accounts receivable.

For the year 2014, based again on the financial position, URCs current ratio is 1.90, and the
quick ratio is 1.19. San Miguel Purefoods has its current ratio of 1.62 and a quick ratio of 1.07.
The URCs current ratio had decreased from 2013 to 2014 rapidly by 0.37 and its quick ratio
also, highly decline by 0.33. Though San Miguels ratio is lower than URC, still the firm needs
to boost its liquidity so that creditors are encourage and secure to devote to the corporation with
confidence that they have a safety margin. This decrease shows that, in the future the company
might encounter problems in paying off its liabilities. The increase of inventory from 2013 to
2014 has quickly affected its ratios; this also would mean that the companys asset cannot be
converted easily into cash. The increase of its receivable may signify that the credit turnover is
poorly managed by the corporation.

3. Recommendation
URC should be conscious in its inventory, because this asset is not easily convertible to
cash and is often sold on credit. The corporation should also be aggressive in terms of
collection, especially in receivables. This decreasing state of ratio in 2013 to 2014 generally
suggest that a companys profitability is also decreasing, which may mean that they are
struggling to maintain or grow sales, paying bills too quickly, or collecting receivables too
slowly. To improve the companys liquidity, the accounts receivable should be monitored and
examined effectively to ensure that it is collected within its average period. The corporation
should also, consider inventory optimization tools tracking essential attribute, providing realtime, accurate and detailed inventory tracking information.

B. PROFITABILITY
A profitability ratio is a measure of profitability, which is a way to measure a company's
performance. Profitability is simply the capacity to make a profit, and a profit is what is left over
from income earned after you have deducted all costs and expenses related to earning the
income. The formulas you are about to learn can be used to judge a company's performance and
to compare its performance against other similarly-situated companies.
URC

2012

2013

2014
30.7%

Industry
Average
31.6%

TimeSeries
Good

Common
Size
Good

Evaluatio
n
Good

Gross
Profit
Margin
Operating
Profit
Margin
Net Profit
Margin
Earnings
per Share

25.9%

28.7%

11.02%

12.7%

15.3%

15.7%

Good

Good

Good

11.5%

12.5%

13%

12.1%

Good

Good

Good

P3.69

P4.60

P5.30

P23.71
(TTM)

Good

Good

Good

Return on 11.6%
Total
Asset
Return on 15.50%
Common
Equity

15.2%

15%

14.2%

OK

OK

OK

19.90%

20.80%

21.9%

Good

Good

Good

SMFC

2012

2013

2014

Gross
Profit
Margin
Operating
Profit
Margin
Net Profit
Margin
Earnings
per Share
Return on
Total
Asset
Return on
Common
Equity

18.6%

20.2%

19.9%

Industry
Average
20.4%

TimeSeries
Poor

Common
Size
Poor

Evaluatio
n
Poor

6.7%

6.2%

5.9%

5.5%

Poor

Poor

Poor

4.5%

4.1%

3.7%

3.8%

Poor

Poor

Poor

P16.11

P17.38

P17.83

-P1.67

Good

Good

Good

6.2%

5.6%

5.8%

6.3%

OK

OK

OK

10.3%

9.03%

10.7%

8.2%

OK

OK

OK

1.) Problem Identification / Potential threat to Sustainability

Universal Robina Corporation experiences good standings of Profitability ratios
every year and a minimal, just very minimal change in its Return in Assets.
2.) Assessment / Analysis / Interpretation
As we compute Universal Robinas Profitability ratio it has good percentage changes
through the years from 2012-2014. As we see in its Gross profit margin, the company is
selling its inventories/goods higher every year. From 25.9% in 2012 to 30.7% in 2014. Going
to its operations, the company is also having good status because it also increases every year.
This means that URC has good operations every year and the company is doing well making
money from its operations. In its net profit margin, the company is also doing well in its
profits every year, although, it has a very small increasing changes, but still doing great
compared having some decreases every year. Looking in San Miguel foods net profit
margin, URC has the best Net profits they received through their sales every year.
The firms earnings per share and return on total equity also gives the company a good
status every year. While its Return in Assets dropped at 2014 by 0.2%... Overall the company

has a good status every year and the company is experiencing good flow of running the
business and taking care of the business very well.
When we compared both companies, URC and San Miguel foods corp. URC is already
favorable compared to SMFC. San Miguel foods is experiencing some ups and downs every
year. But although theyre experiencing some downs, their EPS is also quite doing good
through 2012 to 2014. We cannot really say that URC has the advantage because even if they
are competitors, they have different focuses on what they really sell products. And making
its company maintaining good status every year.
3.) Recommendation
The firms profitability through the years has very good standings because through the
years it increases and increases. Even though they have good statuses, they slightly didnt
effect in generating profits through their assets from years 2013-2014. We recommend URC
to keep up what they used do during the years and make changes to aim higher in its return
on assets so that the company would be above the better.

C. Activity Ratios
Activity ratios measure the speed with which various accounts are converted into sales or
cash inflows or outflows. In a sense, activity ratios measure how efficiently a firm operates
along a variety of dimensions such as inventory management, disbursements, and collections. A
number of ratios are available for measuring the activity of the most important current accounts,
which include inventory, accounts receivable, and accounts payable. The efficiency with which
total assets are used can also be assessed.
URC

2012

2013

2014

Industry
Average

Times-Series

Common
Size

Evaluation

Inventory
Turnover
Average
Collection
Period
Average
Payment
Period
Total
Asset
Turnover

6.80

5.2

4.2

Poor

38 days

38 days

37 days

Slightly
Improving

Fair

Slightly
Ok

75 days

85 days

91 days

Poor

Poor

Poor

1.02

1.2

1.2

Fair/Maintanin
g

Fair

OK

Poor

SMFC

2012

2013

2014

Inventory
Turnover
Average
Collection
Period
Average
Payment
Period
Total
Asset
Turnover

5.4

5.02

42 days

94 days

96 days
1.4

Industry
Average

TimeSeries
Poor

Common
Size
Poor

Evaluatio
n
Slightly
Poor
Slightly
Ok

38 days

Improvin
g

Fair

104 days

102 days

Fair

Slightly
Poor

1.4

1.54

Slightly
Improvin
g
Improvin
g

Fair

Good

1.) Problem Identification / Potential threat to Sustainability

Universal Robina Corporation experiences good standings of Activity ratios
every year but in the Average Payment Period the company may be
experiencing a bit bad in terms of the payment.
2.) Assessment / Analysis / Interpretation
As we review the computations in the Activity ratio of Universal Robina Corporation, in
the Inventory Turnover where in the year 2012 we have a 6.80 and in the year 2013 we also have
5.2 and lastly in the year 2014 we have 4.2 and as we can see the Inventory Turnovers are
decreasing and thats not a good sign because it indicates that they are not selling their products
quickly well. Same case in San Miguel Foods Corporation they are experiencing decreasing
Inventory Turnover from 2013-2014 but not compared to URC where every year they decrease.
The firms Average Collection Period and in Average Payment Period wherein the Average
Collection Period in the year 2012 and 2013 the collection takes place in 38 days and in the year
2014 is in 37 days, as we can see the collection period is decreasing and this is slightly good
because it indicates that it is being well managed credit or collection department or both. It is
also possible that the lengthened collection period resulted from an intentional relaxation of
credit term enforcement in response to competitive pressures. While in San Miguel Foods
Corporation their collection period is improving wherein in the year 2012-42 days, 2013-94 days
and lastly in 2014-38 days. The Universal Robina Corporations Average Payment Period is
indicating that the payment period are taking too long and this is a bad sign of the firms standing
wherein the payment period in the year 2012 is in 75 days and in the year 2013 is in 85 days and
lastly in the year 2014 is in 91 days in the payment period. While in San Miguel Foods
Corporation it is the same in Universal Robina Corporation but they are more bad in result of the
payment period because in their year 2012 is in 96 days and in the year 2013 is in 104 days and
lastly is in the year 2014 is in 102 days indicates that its a bad sign cause it takes too long to pay.

The Universal Robina Corporations Total Asset Turnover is increasing where it results to a
good usage of their assets. In the year 2012 it has 0.75 and in the year 2013 it has 1.21 and lastly
in the year 2014 it also has 1.2 where it is increasing
And this measure is probably of greatest interest to management because it indicates whether the
firms efficiency use of its asset to generate profits. While in San Miguel Foods Corporation in
their year 2012 it has 1.40 and in their year 2013 it has 1.4 and in their year 2014 it has 1.54 in
their total asset turnover.
When we compared the both companies, Universal Robina Corporation and San Miguel
Foods Corporation, URC is the most favorable than the SMFC because San Miguel Foods
Corporation is experiencing ups and downs every year except for their Total Asset Turnover and
also the Universal Robina Corporation in their average payment period is also experiencing low
result but all in all they have a very good result in their firm.
3.) Recommendation
As we can see URCs Activity ratios, in their Average payment and collection
period its a big issue because it takes long for the firm to collect its accounts
receivables and pay its payables. So we recommend to improve and collect/pay on
time on the given credit terms.
D. Debt Ratio
A debt is a financial ratio that indicates the percentage of a company's assets that are
provided via debt.
URC

2012

2013

2014

Debt
Ratio
Times
Interest
Earned
Ratio

33.4%

23.6%

9.7

SMFC
Debt
Ratio
Times
Interest
Earned
Ratio

Industry
Average

Common
Size
Good

Evaluation

28.1%

TimesSeries
Good

35.8

118.3

Good

Good

Good

2012

2013

2014

41.8%

46%

Common
Size
Good

Evaluation

39.4%

TimesSeries
Good

11.1

11.2

14.5

Good

Good

Good

Industry
Average

Good

Good

1. Problem Identification:
Universal Robina Corporation encounters high and low in terms of Debt Ratio which is the
company poses a greater risk.
2. Analysis:
As we review the calculations of ratios lately, based on financial position for the year
2012, the URCs debt ratio is 33.39% and the times interest earned ratio is 9.7. Their competitor
which is San Miguel has 39.4% debt ratio and their times interest earned ratio is 11.10. As we
can see, URCs debt ratio is lower than San Miguel, the lower the percentage is the better. That
means that URC implies a more stable with a potential of longevity. They have an opportunity
for business growth. In times interest earned ratio, San Miguel has higher ratio than URC which
means that they are better than URC when it comes to handling income. URC may have to face
difficulties in raising funds for their operation.
For the year 2013, the URCs debt ratio is 23.62% and the times interest earned ratio is
35.8. Its competitor has a debt ratio of 39.4% and the times interest earned ratio is 11.18. URC is
still better than the competitor. URC has a lower debt ratio than the year 2012 as a source of long
term finance. That means that they are improving on how they manage their company. In times
interest earned ratio, URC has a higher ratio than San Miguel, compared before in the year 2012
which is the competitor was higher. The URC protect the creditors interest in the firm
Finally, for the year 2014, the URCs debt ratio is 28.10% and the times interest earned
ratio is 118.3. San Miguels debt ratio is 46% and the times interest earned ratio is 14.52. On
what we have observed, URC got higher percentage of debt ratio compared last year but it has a
great impact in times interest earned ratio. It is because URC has greater risk. The results of our
calculations of ratio, it shows that URC is better than San Miguel. They are able to overcome,
able to improve their company and they ensures a periodical interest income for lenders.
3. Recommendation
URC should maintain it and find a way to look for more equity financing to grow their
operations. They should always seek professional consultation whenever possible before making
any investment decision in order for them to have a stable business. It would help them improve
their company. They should increase the times interest earned ratio so that it could repay
amortized payments and operating expenses.

E. MARKET / BOOK VALUE

A Market Ratio give insight into how investors in the marketplace feel the firm is doing
in terms of risk and return. It gives an idea of the firms performance and future prospects. As to
the performance of the Universal Robina Corporation in 2012, 2013 and 2014 it shows constancy
growing.
URC

2012

2013

2014

Price/Earning
s
Market/Book

10.8

13.8

1.9

2.7

Industry
Average

33.6

TimeSeries
Good

Common
Size
Good

Evaluatio
n
Good

6.9

Good

Good

Good

1. Problem Identification / Potential threat to Sustainability

Universal Robina Corporation shows increasing Market Ratio from 2012, 2013
and 2014. As to its companys good standing it maintain higher market value.
Through this we dont see a problem and threat for its sustainability.
2. Assessment / Analysis / Interpretation
As we compute the Price Earnings Ratio it shows high P/E means investors are
expecting growth in earnings which URC maintains its stability of 15.22% increase in
growth.
The Marke/Book Value by 2014 indicates the company has been earning a very
high return on its asset by 10.18% increase in growth.
3. Recommendation
Universal Robina Corporation stability in performance for the year 2012, 2013
and 2014 entices more investors. With this, we recommend that the company continue
its goal the double digit topline growth trajectory in the coming years for them to
expand more there operating margins.
VI.

COMPREHENSIVE ANALYSIS:

As what we observed, URC has a poor result in terms of Current Ratio because
industry average which is 2 is greater than URCs Current Ration in 2012 and
2014 which is 1.98 and 1.90 respectively. Through year 2013 gets higher than the
industry average but still it gets low/down in the next year. They also have a
problem in paying their depts. Their average payment period is 96 days in 2012,
104 in 2013 and 102 days in 2014 and t seems that they pay their debts much
longer which means that their creditor can hardly lend them money next time they
barrow. And it gives a risk to the creditors because they dont have a collection
during long period. And it may lead to the point that their creditor will not trust
them anymore in terms of barrowing money.
VII.

RECOMMENDATION:
We would like to recommend:

URC should maintain the stableness of their industry average, which it can greatly affect the
current ratio. If they cant maintain the stability of the industry average, theres a chance that
the current ratio will fall. Current ratio is a liquidity and efficiency ratio that measures a
firms ability to pay off its short-term liabilities with its current assets. If the company fails
to heighten the current ratio, that just shows that the firm is not so adept on paying their
short-term liabilities with its current assets.
URC should also monitor in paying off their debts. Delayed paying of debts can create a
stress between the debtor and creditor because the more delayed the payment of debt is, the
more the creditor wont have a collection of cash. If that happens, chances are the creditors
will doubt the firms ability to pay off their debts on the designated time, which can lead to
creditors not allowing them to borrow money.
VIII.

CONCLUSION:

Universal Robina Corporation operates its food business through operating divisions and whollyowned or majority owned subsidiaries that are organized into three core business segments:

branded consumer foods, agro-industrial products and commodity food products. The Company
has a strong brand portfolio created and supported through continuous product innovation,
extensive marketing and experienced management. Its brands are household names in the
Philippines and a growing number of consumers across Asia are purchasing the Companys
branded consumer food products. The companys overall financial condition improved in 2012.
The companys liquidity ratios reveal that the company was able to meet its short term
obligations as per the16% or 0.27 increases in its current ratio. The companys solvency also
improved in 2012. URCs Times interest earned improved tremendously by 5 times from 7 times
in 2011 to 12 times in 2012. Furthermore, the companys debt to total asset ratio favorably
decreased by 6% from 39% in 2011 to 33% in 2012. The companys overall profitability
improved in 2012. . It is evident in the companys 4% increase in profit margin from 7% in 2011
to 12% in 2012. The strong growth in the companys full year profit was driven by its domestic
branded consumer food group (BCFG), which more than offset the weak performance of the
commodity food group. The company is also benefiting from its successful expansion
internationally.

IX.

REFERENCE

Verallo,M.( 2012. September 30). Universal Robina Corporation: A

Financial Analysis. Retrieved from
https://www.scribd.com/doc/132221743/Universal-Robina-Corporation-AFinancial-Analysis
Universal Robina Corporation: Risk Management System. ( 2015. June).
Retrieved from http://www2.urc.com.ph/enterprise_risk_management

 https://www.scribd.com/doc/132221743/Universal-Robina-Corporation-AFinancial-Analysis
http://www2.urc.com.ph/company_profile
http://www2.urc.com.ph/enterprise_risk_management

X.

APPENDIX:

Compan
y

URC

FORMULA

PROFITABILITY
a. Gross Profit margin
2012
2013

2014

Gross profit
sales

18,471,123,38
5
71,201,677,77
9

23,219,211,357
80,995,215,642

28,370,918,56
5
92,376,296,51
2

ANSWERS

25.9%

28.7%

30.7%

ANSWERS

17,837,633
95,787,365
18.6%

20,188,336
99,772,930
20.2%

20,449,610
102,999,401
19.9%

SAN
MIGUEL

Company
URC

FORMULA
Operating
profit
Sales

b. Operating profit margin

2012
2013
7,849,551,166 10,279,047,492
71,201,677,77 80,995,215,642
9

2014
14,119,171,348
92,376,296,51
2

ANSWERS

11.02%

12.7%

15.3%

Operating
profit
Sales

6,382,599
95,787,365

6,145,644
99,722,930

6,095,611
102,999,401

6.7%

6.2%

5.9%

c. Net Profit Margin

2012
2013

2014

San Miguel

Company
URC

San Miguel

Dupont Analysis

FORMULA
Earnings
available for
common
stockholders
Sales
ANSWERS
Earnings
available for
common
stockholders
Sales

8,185,048,099
71,201,677,779

10,117,329,610
80,995,215,642

11,655,292,014
92,376,296,512

11.5%
262,566
95,787,365

12.5%
4,096,989
99,722,930

13%
3,843,475
102,999,401

4.5%

4.1%

3.7%

URC
2012
*(Earnings available for common stockholders) 8,157,886,257 / (Sales) 71,201,677,779
= Net profit margin of 11.5%
*(Sales) 71,201,677,779 / (Total Assets) 69,987,315,242 = Total Asset Turnover of
11.02
*(Net profit margin) 11.5 times (Total Asset Turnover) 11.02 = Return of total assets of
1.27%
*(Total Assets) 69,987,315,242 / (Common Stock Equity) 46,616,551,604 = Financial
Leverage of 1.50
*(ROA) 1.27 times (FLM) 1.50 = Return on common equity of 1.91%
2013
*(Earnings available for common stockholders) 10,117,329,610 / (Sales)
80,995,215,642 = Net profit margin of 12.49%
*(Sales) 80,995,215,642 / (Total Assets) 66,654,967,530 = Total Asset Turnover of
1.22%
*(Net profit margin) 12.49 times (Total Asset Turnover) 1.22% = Return of total assets of
15.24%
*(Total Assets) 66,654,967,530 / (Common Stock Equity) 50,830,029,642 = Financial
Leverage of 1.31
*(ROA) 15.24 times (FLM) 1.31 = Return on common equity of 19.96%
2014
*(Earnings available for common stockholders) 11,655,292,014 / (Sales)
92,376,296,512 = Net Profit Margin of 12.62%
*(Sales) 92,376,296,512 / (Total Assets) 77,921,206,990 = Total Asset Turnover of
1.19%
*(Net profit margin) 12.62 times (Total Asset Turnover) 1.19% = Return of total assets of
15.02%
*(Total Assets) 77,921,206,990 / (Common Stock Equity) 56,026,996,300 = Financial
Leverage of 1.39

*(ROA) 15.02 times (FLM) 1.39 = Return on common equity of 20.88%

San Miguel Foods
2012
*(Earnings available for common stockholders) 4,262,566 / (Sales) 95,787,365 = Net
Profit Margin of 4.45%
*(Sales) 95,787,365 / (Total Assets) 68,571,587 = Total Asset Turnover of 1.40%
*(Net profit margin) 4.45 times (Total Asset Turnover) 1.40 = Return of total assets of
6.23%
*(Total Assets) 68,571,587 / (Common Stock Equity) 41,436,045 = Financial Leverage
of 1.65
*(ROA) 6.23 times (FLM) 1.65 = Return on common equity of 10.28%
2013
*(Earnings available for common stockholders) 4,096,989 / (Sales) 99,772,930 = Net
Profit Margin of 4.11%
*(Sales) 99,772,930 / (Total Assets) 72,844,280 = Total Asset Turnover of 1.37%
*(Net profit margin) 4.11 times (Total Asset Turnover) 1.37 = Return of total assets of
5.63%
*(Total Assets) 72,844,280 / (Common Stock Equity) 42,359,925 = Financial Leverage
of 1.72
*(ROA) 5.63 times (FLM) 1.72 = Return on common equity of 9.68%
2014
*(Earnings available for common stockholders) 3,843,475 / (Sales) 102,999,401 = Net
Profit Margin of 3.73%
*(Sales) 102,999,401 / (Total Assets) 66,654,955 = Total Asset Turnover of 1.55%
*(Net profit margin) 3.73 times (Total Asset Turnover) 1.55 = Return of total assets of
5.78%