I.

ANALYSIS OF LIQUIDITY SHORT TERM SOLVENCY

2011 2010
Current Asset 75,316,642 55,370,899
Current Liabilities 45,629,278 33,214,548
CURRENT RATIO 1.65 times 1.67 times
Quick Asset 46,373,563 35879511
Current Liabilities 45,629,278 33,214,548
QUICK ASSET RATIO 1.01 times 1.08 times
Cash 24,603,213 8,018,807
Marketable securities 191,987 1,434,337
Cash Flow from Operating Activities 12,981,946 9,638,035

37,777,146 19,091,179
Current Liabilities 45,629,278 33,214,548
CASH FLOW LIQUIDITY RATIO 0.83 times 0.57 times
II. ANALYSIS OF ASSET LIQUIDITY AND ASSET MANAGEMENT EFFIENCY
Net sales 44,205,533 37,813,499
Average Accounts Receivable Balance 19002365
ACCOUNTS RECEIVABLE TURNOVER 2.33 times 2.30 times
Days 365 365
Receivable turnover 2.33 2.30
AVERAGE COLLECTION PERIOD 157 days 159 days
Cost of Goods Sold 26517732 23707381
Average Inventory balance 18138621 14368671
INVENTORY TURNOVER 1.46 times 1.65 times
Days 365 365
Inventory turnover 1.46 1.65
AVERAGE SALE PERIOD 250 days 221 days
Net sales 44,205,533 37,813,499
Average net PPE 4781730 4167989
FIXED ASSET TURNOVER 9.24 times 9.07 times
Net Sales 44,205,533 37,813,499
Average Total Asset 138147220.5 121675262
Total Asset Turnover 0.32 times 0.31 times

III. ANALYSIS OF LEVERAGE: DEBT FINANCING AND COVERAGE
Total Liabilities 82,576,667 56,205,134
Total Equity 72,042,512 65,470,128
DEBT-TO-EQUITY RATIO 114.62% 85.85%
Total Liabilities 82,576,667 56,205,134
Total Assets 154,619,179 121,675,262
DEBT RATIO 53.41% 46.19%
Operating Profit 33495805 29953295
Interest Expense 1879770 1539111
TIMES INTEREST EARNED 17.82 times 19.46 times
Operating Profit + Lease Payment 34919204 31193233
Interest Expense + Lease Payment 3303169 2779049
FIXED CHARGE COVERAGE 10.57 times 11.22 times
IV. OPERATING EFFICIENCY AND PROFITABILITY
Gross Profit 17,687,801 14106118
Net Sales 44,205,533 37,813,499
GROSS PROFIT MARGIN 40.01% 37.30%
Operating Profit 33495805 29953295
Net Sales 44,205,533 37,813,499
OPERATING PROFIT MARGIN 75.77% 79.21%
Net profit 7,140,308 5,458,134
Net sales 44,205,533 37,813,499
NET PROFIT MARGIN 16.15% 14.43%
Cash flow for operating activities 12,981,946 9,638,035
Net sales 44,205,533 37,813,499
CASH FLOW MARGIN 29.37% 25.49%
Net Income 8,090,583 6,288,054
Average Total Assets 154619179 121675262
RETURN ON INVESTMENT ON ASSET 5.23% 5.17%
Net income 8,090,583 6,288,054
Average Shareholders Equity 68756320 65470128
RETURN ON EQUITY 11.77% 9.60%

Return on equity 11.77% 9.60%
Return on Asset 5.23% 5.17%
FINANCIAL LEVERAGE INDEX 2.25 1.86
OTHER RATIOS USED TO MEASURE RETURNS ON INVESTMENT
Net Income 7,140,308 5,458,134
Weighted Average Number of Ordinary
Share Outstanding 13017387.5 13022771
BASIC EPS 0.55 0.42
Dividends Per Share 0.15 0.09
Market Value Per Share 0.15 0.19
DIVIDEND YIELD 100% 47.37%
Dividends Per Share 0.15 0.09
Earnings Per Share 0.55 0.42
DIVIDEND PAYOUT RATIO 35% 30%















I. ANALYSIS OF LIQUIDITY OR SHORT-TERM SOLVENCY
CURRENT RATIO
The Companys balance sheet remained strong with sufficient capacity to carry out its
aggressive growth plans in the following years. Strong cash inflows from the successful pre-
sales of various residential launches as well as proceeds from the P10.0 billion notes issued at
the start of 2011 brought Cash and Cash Equivalents to P24.8billion, with a corresponding
Current Ratio of 1.65 times. Total Borrowings stood at P34.53 billion as of December 2011from
P20.97 billion the previous year translating to a Debt-to-Equity Ratio of 0.55: 1 and a Net Debt-
to-Equity Ratio of 0.16: 1.
QUICK ASSET RATIO
The Ayala Lands quick asset ratio indicates drop in the year 2011 & 2010. Forecaster
strength fairly concerned about the alarming trends revealed in rising of the short term debts
and increasing of their land inventory. The figures also compare the relation of Ayala to its
competitors.
CASH-FLOW LQUIDITY RATIO
THE Ayala Land Corporation current ratio and acid test ratio both decline in the year
2011 and 2010 it can interpreted that there is a decline of liquidity. But the cash flow ratio
increase because of the improvement in short-term solvency. Also the firms cash flow from
operating activities turnaround from negative to positive figure, which means that there is a
stronger short-term solvency.

II. ANALYSIS OF ASSET LIQUIDITY AND ASSET MANAGEMENT EFFIENCY
ACCOUNTS RECEIVABLE TURNOVER
The Ayala land corporation converted 2.33 times in the year 2011 up from 2.30 times in
the year 2010. The turn over if receivable has been collected or improve this means that there
is a better quality receivable and firms collection and credit policies. Having a high turnover is
good because this mean that there is a collection of receivable but it could be unfavourable
because it may conclude that credit and collection policies are over provisional.

AVERAGE COLLECTION PERIOD
The Ayala land Corporation during the year 2011 the firm collected its receivables in
157 days on average, but on 2010 there is 159 days, so there for there is an improvement in
collection compare to the previous year.
INVENTORY TURNOVER
During 2010 there is a decrease in the inventory turnover, having high turnover is
favourable because it is a sign of efficient inventory management and profit for the firm. High
turnover could also mean other investment in inventories and lost orders. 2010 turnover could
mean that the company is carrying many inventories or it is out of date and inferior inventories
stock.
AVERAGE SALE PERIOD
The faster the inventory sale, the fewer funds are raise up in the inventory and there is a
chances of a more income generated. The average sale period decrease from 221 days for 2010
to 250 days in 2011, it can conclude that there is a effective and efficient control in inventories.

FIXED ASSET TURNOVER
For Ayala land Corporation its fixed assets turnover is improved compared to average
fixed asset. This occurrence should be further tested within the frame work company as well as
that of the industry.
TOTAL ASSET TURNOVER
For Ayala Land Corporation the total assets turnover has improved primarily because of
the improvement of fixed asset, accounts receivable turnover and inventory.

III. ANALYSIS OF LEVERAGE: DEBT FINANCING AND COVERAGE
DEBT RATIO
In 2011 and 2012 debt ratio indicates a high borrowed capital. Too much debt would
paralyzed in obtaining additional debt financing when the company needed it at most or that
credit is available only at very high interest and terms.

DEBT TO EQUITY RATIO
The Ayala Land Corporation ratio has increase between 2011 and 2010, it shows riskier
capital structure.
TIMES INTEREST EARNED
While Ayala Land Corporation increases the use of their debt in the current year to
corporation also enhance its capacity to cover interest payment from operating incomes.
FIXED CHARGE COVERAGE
Ayala Land Corporation experienced a decrease in the amount of the annual list
payment in the current year, so there is no more need to improve its fixed charge.
IV. OPERATING EFFICIENCY AND PROFITABILITY
GROSS PROFIT MARGIN
The gross profit margin of the Ayala land for both 2011 to 2010 have been stables in fact
there is a 2.99% increase in the gross profit margin which is consider a positive sign for the
company.
OPERATING PROFIT MARGIN
Ayala operating profit margin decrease by 3.44%, 2011 having a operating profit margin
of 75.77% and 79.21This is not good for a company because this indicates that company
doesnt have the ability to control it operating expense while increasing in sales. The sales do
increase but it increases with the operating expenses.
NET PROFIT MARGIN
Ayalas net profit margin slightly increased despite the increase in interest and tax
expenses and a reduction in interest revenue for marketable security investments.
CASH FLOW MARGIN
Cash flow margin of Ayala Land Corporation is high, so this means that there is a positive
generation of cash. Therefore there is a high ability to transform sales into cash to enable it to
service debt, payment dividends.

RETURN ON INVESTMENT ON ASSET/ RETURN ON EQUITY/ FINANCIAL LEVERAGE
INDEX
Ayala return on equity is higher that return on asset which result to a Financial leverage
index that is higher than 1. It indicates that Ayala Land use their financial leverage successfully
although their debt increased. The firm has generated enough operating return to more than
cover the interest payments on borrowed funds.

V. OTHER RATIOS USED TO MEASURE RETURNS ON INVESTMENT
BASIC EPS
The Ayala Land Corporation earnings for ordinary share show an increase, which is a
clear implication in the improvement on the investment return of ordinary shareholders.
DIVIDEND YIELD
2011 shows a low dividend yield that the investor would choose Ayala land Corporation,
as an investment for long term capital than for its dividend yield.
DIVIDEND PAYOUT RATIO
The Ayala Land Corporation paid out a total of P1.9 billion in cash dividends last year,
representing a dividend payout ratio of 35% of our net income in 2010 5%-points higher than
the 30% payout of the previous year. Together with net income growth resulting from margin
improvement and higher asset turnover as well as increased leverage, our return on equity
(ROE) increased to 12% in 2011, 2%-points higher than the 10% ROE recorded in 2010.









In Partial Fulfilment of
Requirements in
Financial Management


FINANCIAL STATEMENT ANALYSIS
AYALA LAND CORPORATION



Submitted by:
Ambat, Geri V.
Hernandez, Joanne D.
Nicomedez, Jenica L.
Pineda, Mary Claire F.


Submitted to:
Mr. Laynard Villanueva


March 31, 2014