1

CHAPTER 1
INTRODUCTION
Background of the Study
The impact and importance of Telecommunication & Media industry is well accepted and
broadly known to public and to the business world. Telecommunication started off by telephones,
enables people to access communication. This industry provides a technological foundation for
societal communication and a very fundamental operation to businesses. In the country, the
Filipino telecommunication services market had total revenues of $6.7bn, with a total of 127.5
million users in year 2017. On the other hand, Media industry had also been leaving an impact to
the economy and business world. Businesses depend upon media to provide them information in
order to make educated decisions. Consumers are affected by the media because it influences
purchase decision which is a great factor to any business. With these significant roles between two
industries in terms of revenue progress, Investors are on stake unto deciding where to invest, with
a goal to ascend their investments.
In this study, the Financial Performance between Telecommunication and Media Industries
are compared by means of financial ratio analysis since the two primary objectives of every
business are profitability and solvency. Profitability is the ability of a business to make profit,
while solvency is the ability of a business to pay debts as they come due. However, according to,
Hermanson et al, 1992: 824, the achievement of these objectives requires efficient management of
resources of the business through planning, budgeting, forecasting, control, and decision –
making. Also, the strengths and weakness of the business need to be identified and necessary
corrective measures applied. Interestingly, accounting provides information that facilitates these
functions.
Basically, accounting measures and communicates economic information needed for
decision –making. Thus, according to Okezie (2002) of the American Accounting Association,
accounting is defined as “the process of identifying, measuring and communicating economic
information to permit informed judgments and decisions by the information”. Income Statement
and Balance Sheet are the Primary Source of economic Information. The Income Statement shows
the profitability or operational result of a business, while the balance sheet shows the solvency or
financial position of a business. Although profiles are often used as the basis for judging the
performance of a business, such profits must be related to the various items of the financial
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statements in order to be meaningful and useful for decision making. Furthermore, owing to the
summarized nature of financial statements, a lot of truths are hidden in them. Thus, they need to
the analyzed and interpreted by means of financial ratios to enable the users understand the
meaning of the absolute amounts shown in them, and make informed business decisions.
Managers want Information because they need to make decisions. The proper use of
information is an important part of decision – making. One of the sources of this information are
financial statements and based on Essien, 2012, Financial statements carry lots of financial
Information that are hidden in the figures. The figures in financial statements become more useful
when they are related to each other or to some other relevant financial data. Therefore, users of
financial information go a further step to establish relationships (or ratios) among selected data in
financial statements. Remarkably, one of the effective ways of providing information needed for
decision-making is ratio analysis and according to According to Igben (1999:423), “Accounting
{or financial} ratio is a proportion or fraction or percentage expressing the relationship between
one item in a set financial statements and another item in the financial statements. Accounting
ratios are the most powerful of all tools used in analyzing and interpreting financial statements”.
Therefore, ratio analysis involves taking stats of number (or items) out of financial statements and
forming ratios with them, to enhance informed judgments and decisions (Lasher, 1997:66).
Decision making calls information based on Bittel et al. (1984:340) observed: “Managers want
information because they need to make decisions. The proper use of information is an important
part of decision-making.” Therefore, business decision can be defined as choices relating to the
allocation and or use of business resources to achieve business goals.
Two of the fastest growing industries in the country are Media and Telecommunications. Media
are the collective communication outlets/tools used to store and deliver information. The popular
media companies in the Philippines are as follows
First GMA Network Inc. Operates in the Television broadcasting stations sector. GMA
Network is the flagship property of publicly traded GMA Network Inc. Its first broadcast on
television was on October 29, 1961, GMA Network (formerly known as RBS TV Channel 7, GMA
Radio-Television Arts then GMA Rainbow Satellite Network) is commonly signified to as the
"Kapuso Network" in reference to the outline of the company’s logo. Next is the Alto
Broadcasting System - Chronicle Broadcasting Network (ABS-CBN) A Filipino commercial
broadcast television network that is the flagship property of ABS-CBN Corporation. The oldest
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television broadcaster in Southeast Asia and one of the oldest commercial television broadcaster
in Asia. It is also the leading television network in the Philippines The network operates across the
Philippine archipelago through ABS-CBN Regional division which controls 80 television stations.
Lastly Manila Broadcasting Company (MBC) is the largest radio network in the Philippines
under the umbrella organization of Fred J. Elizalde Group of Companies. MBC network covers
virtually every city, province, town and municipality in the Philippine archipelago. MBC operates
under 7 different programming formats namely: DZRH, Love Radio, Yes FM, Easy Rock, Hot
FM, Aksyon Radyo and Radyo Natin.
Telecommunication occurs when the exchange of information between communication
participants includes the use of technology. The popular telecommunication. Companies in the
Philippines are as follows
Philippine Telegraph and Telephone Corporation (PTTC) Has three segments: Local
Exchange Carrier, Business Convergence, and Retail Distribution Network. Philippine Telegraph
and Telephone Corporation operates as a subsidiary of Republic Telecommunications Holdings
Incorporated. As of August 25, 2017, Philippine Telegraph and Telephone Corporation operates
as a subsidiary of Menlo Capital Corporation. Next is Philippine Long Distance Telephone Inc.
(PLDT) Largest telecommunications and digital services company in the Philippines and the most
known internet service provider. PLDT and its wireless subsidiary Smart Communications, Inc.
have been cited for being the country’s fastest fixed and mobile networks Business leader and
philanthropist Manuel V. Pangilinan. Lastly Globe Telecom Inc. Is a telecommunications
company and a dynamic organization that continues to work on delivering the best and
personalized products and services to customers and at the same time, bringing happiness to its
employees and shareholders. The Company’s products and services endlessly thrive and remain to
enrich the lives of its millions of subscribers.
Business investors rarely enter industries which have begun an economic decline that’s why in this
study, comparison of these 2 industries in terms of financial performance allows them to estimate
how much profit they can generate from business operations. In this study, the researchers have
used the ratio analysis with the help of financial ratios in order to calculate and be able to compare
the performance of the two industries, whichever of the two performed better for investors to invest
in.
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REVIEW OF RELATED LITERATURE

Financial Ratios
Financial ratios are categorized according to the financial aspects of the business which the
ratio measures and it simplifies the assessment of a business’ financial data without the need of
looking at very detailed numbers. Based on the article of Tanuaria M. L., she shows that financial
ratio is computed by comparing two data with one another and the financial data comes from the
financial statements of comparative years. Manuel E. (2015), author of Fundamentals of
Accounting book, states that Profitability ratio which is also known as performance ratio is
computed and used to determine if the company is able to derive profit and return on their invested
resources in order to assess if it is over or under spending. Under profitability ratio is the net profit
margin which is according to Kitces, et al. (2015), it is calculated as the ratio between net profit
and net sale that shows how much each dollar earned by a company can be converted into profit
which excludes all expenses deducting all taxes, interest and preferred stock dividends. Financial
Ratio Analysis book written by Robles N. (2014) states that Liquidity Ratio shows if the company
can pay its currently due debts, and still have enough resources to sustain the current operation.
According to Dominguez C. (2015), Basic Accounting Leverage Ratio assess if the business can
get sources of funds from outside of the company and yet keeping the level of control in business.
Financial Reports
Financial statements which contains financial information of an enterprise are also
financial reports in a short and formal document needed to evaluate a firm’s earning ability. The
use of financial statement analysis in investment decision has been addressed by a series of authors.
According to J. A Ohison (2012), Financial statement includes an income statement and balance
sheet or statement of the financial position describing the flow of resources, profit and loss and the
distribution or retention of profit. Financial Statement describes certain attributes of a company
that is considered to fairly represent its financial activities based on Meigns et al. (2013). Meigs
and Meigs (2003) stated that the rate of return on investment (ROI) is a test of management’s
efficiency in using available resources.
Richard Bourley (2013) shows that the key objective of financial analysis is to examine
both quantitative and qualitative data in order to ascertain the quantity of earnings and the quality
and protection of assets. According to Patrick J. et al. (2014), in periods of recession when business
failures are common, the balance sheet takes on increase importance because the question of
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liquidity is uppermost in the minds of many in the business community an when business
conditions are good, the income statement receives more attention since it provides the information
of the transactions occurred in a certain period of time called accounting period.
The article of Frank C. (2016) focuses on a firm’s assets, liabilities and equity which shows
the financial position at a point in time in two sub accounts of balance sheet. Assets account is the
first one, which includes all the current and fixed assets of the company. The other sub account
includes all the liabilities and equity. According to Timothy J. et al. (2016) statement of cash flow
shows the overall net increase or decrease in cash of the firm in terms of operating, investing and
financing activities.
Comparative Financial Local Studies
According to Florenz C. Tugas (2012), the exploratory and quantitative context design used
on the study of three listed firms in the education subsector for three periods (2009 – 2011)
analyzed financial statements using the rule of thumb and ratio trends, and after conducting a
comprehensive financial ratio analysis FEU (44 points) ranked first as the most financially healthy,
followed by Malayan (40 points), then CEU (36 points). The total points for each ratio category
were then computed to arrive at an overall basis for 63 analysis. According to Miralao F. (2015),
The Philippines implemented a nationwide reform in its education system in June 2012. The main
change was an increase of the pre-university education cycle from 10 to 12 years. Financial ratio
analysis contributes in the significant investment in the education system’s human resources and
facilities, which prompted the legislators to increase the education budget in 2014 to 4.3% of the
country’s gross domestic product.
According to Gilberto Lianto (2012) Philippine credit cooperatives have help thousands of
members build up their savings and access low cost credit for diverse needs using ratio analysis
that defined their company’s performance. Systematic risks in the Philippine economy were
heightened in 2013. Nicholas Tan et al. (2013) of the International Monetary Fund Country Report
No.13/102 because the current levels of debt in the economy is still far from the cause of past
financial crises since high leverage levels cause a stir and anxiety in the economic sector of the
Philippines. According to Patrick et al (2014), one rich source of information for financial
statement analysis is the audited financial statements and financial statement analysis from the
standpoint of management relates to all of the questions raised by creditors and investors because
these user groups must be satisfied in order for the firm to obtain capital as needed.
 6

According to Pamela Peterson (2015), there are some reasons that make the result for book
value be less than the market value when computing the equity of a company: the earnings are
recorded according to accounting principles which does not well reflect the economic situation,
and because of inflation, the current value of money does not well reflect. Therefore, when using
the value for denominator in total shareholder’s equity for calculating the D/E ratio, the market
value of equity is more preferable. According to Cadsawan G. et al. (2015), they used three
instruments to analyze and access Banco De Oro’s financial and operational performance, the first
is a financial ratio analysis covering years 2011-2013; the second is the SWOT Analysis; and the
third is Porter’s Five Forces Model. After computing for the ratios, the researchers then interpreted
the findings and shows that in terms of resources, gross customer loans, deposit liabilities, capital
funds and net income, BDO is doing well and improving as all the figures are increasing.
Comparative Financial Foreign Studies
It is important to note that no one measure of financial performance should be taken
on its own. Rather, a thorough assessment of a company's performance should take into account
many different measures. According to, Mohammadi, et al. (2012), this study investigates the
financial performance of an investment company in Malaysia for a three-year period from 2009 to
2011, which is assessed using financial ratios. The findings pointed out that overall company
performance reduced remarkably in the last year of the analysis. This study principally emphasizes
on how accounting information aids budgetary decision-makers to evaluate the company financial
performance, determine its future obligations, and make better investment decisions. According to
a research, the role of profit margin is considered to be important not only about the amount of
profit that the owners can extract from the business, but also about a line of defense for an advisory
firm facing a decline in revenue when a bear market occurs.
According to Krishna Prasad Upadhyay (2012), different measures like return on
investment, return on equity, return on assets, earning per share, dividend per share, and asset
utilization ratio are used to assess the profitability of the companies and he concluded in his study
that the solvency position of their business is not sound and credit creation capacity is good in its
aggregate. BalaRamaswmy, Darrylong and Mattew C.H. Yeung (2012) has found empirical
evidences that firm size and the firm ownership are important determinants of financial
performance in the Malaysian palm oil sector-findings and it lend support to industry analysts who
have highlighted that profitability is higher in privately owned firms. According to
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Kellermann&Schlag (2013), debt coverage ratios or leverage ratios are regarded as the appropriate
instruments to safeguard the system of financial regulation and supervision against failure in risk
assessment (The BCBS 2009).
According to Yahya, F. et al. (2013), Unilever Foods is better corporate than National
Foods (further results are discussed in the Significant Analysis for Financial) since results showed
that horizontal analysis is somehow better analysis than vertical analysis as it shows negative or
positive trend of variables while the other shows the gradual fluctuation of total assets and sales.
However, ratio analysis is seems to be the best analysis as it gives concise and paramount review
of firm’s performance.
According to Jagannadha Rao (2014), by the use of ratio analysis, he found out that the
poor state of financial performance of the company is the cumulative result of unfavourable factors
such as continuous low capacity utilization of the units, fall in sugar recovery in some of the units,
poor operational performance, high cane price advised by the State Government and paid up by
the company, low levy price of sugar. Remedy for the poor financial performance is better the
operational performance of the sugar units particularly the sick units, paying reasonably high cane
price, reducing the cost of production by improving capacity utilization, and taking advantage of
free quota to make good the losses suffered due to low levy price.
According to Phuong'Dao (2016) This research aims to analyze air travel performance of
Finnair and Scandinavian Airlines (SAS) based on financial ratios since the airline company has a
strong relationship with other kinds of business and economic factors; therefore, small changes in
these businesses might lead to a dramatic effect on the airline companies. A comprehensive
investigation into profitability, debt coverage and market value ratios will help stakeholders have
an exact evaluation and broader point of view about two rival airlines in the Nordic region. Two
analyses are conducted based on financial data extracted from financial statements of Finnair and
SAS and other relevant sources. Besides, there are mathematical calculations to support the ratio
analysis. All financial ratio interpretations of the two companies are shown in each ratio analysis
which gives the most correct reflection of the companies’ performances. Finally, measurement of
the overall analyses presents better result of profitability, operational efficiency and decision-
making process to identify the better airline.
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Theoretical Framework
Prospect Theory
According to Andrew Beattie Prospect Theory states that people's perceptions of gain and
loss are skewed. That is, people are more afraid of a loss than they are encouraged by a gain. If
people are given a choice of two different prospects, they will pick the one that they think has less
chance of ending in a loss, rather than the one that offers the most gains. For example, if you offer
a person two investments, one that has returned 5% each year and one that has returned 12%, lost
2.5%, and returned 6% in the same years, the person will pick the 5% investment because he puts
an irrational amount of importance on the single loss, while ignoring the gains that are of a greater
magnitude. In the above example, both alternatives produce the net total return after three years.
Prospect Theory is important for financial professionals and investors. Although the risk/reward
trade-off gives a clear picture of the risk amount an investor must take on to achieve the desired
returns, prospect theory tells us that very few people understand emotionally what they realize
intellectually.
Conceptual Framework

INPUT PROCESS OUTPUT

• Two Industries and • Identify Suitable • Comparison of the

Look for 3 companies Ratios for evaluating industries
under each Financial Performance
• Ratio Analysis
• Choosing of financial • Calculate Identified Presentation
reports in a certain Figures from
Accounting Period for Financial Reports
last 2 Years

The conceptual framework showed how the researchers made use of the input process and
output (IPO) model in order to compare and investigate the difference of Media and
Telecommunication industry on their financial reports on year 2016 and 2017. On input, it
contained the respective respondents and financial statements used. Then, on process phase the
researchers determined what financial ratios to use and calculate the required ratios to compare
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both industries. Lastly on the output the researchers compared and presented the difference on
those industries.

Statement of the Problem

Many users of financial statements are not knowledgeable about accounting ratios and how
the ratios can be applied to financial statements. Financial information provided in financial
statements is helpful in decision-making. In view of the summarized nature of the information
contained in financial statements, they need to be analyzed and interpreted by means of financial
ratios to enable management and stakeholders understand them.
The main objective of this research is to compare the financial performance of
Telecommunication industry and Media Industry using Ratio Analysis. The study aimed to answer
the following research questions:

1. What is the Financial Performance of the following selected listed companies:

1.1 PLDT (Philippine Long-Distance Telephone)
1.2 GLOBE (Globe Telecommunication)
1.3 PTTC (Philippine Telegraph and Telephone Corporation)
1.4 ABS-CBN (Alto Broadcasting System – Chronicle Broadcasting Network)
1.5 GMA (Greater Manila Area Inc.)
1.6 MBC (Manila-Broadcasting-Company)

2. What is the Financial Performance of the selected listed companies when categorized
according to:
2.1 Telecommunication Industry
2.2 Media Industry

3. How may the financial performance of the Telecommunication Industry be compared

with that of the Media Industry?

4. Is there a significant difference in the average financial performance of the

Telecommunication and Media Industry?
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Null Hypothesis

Ho: There is no significant difference in the average financial performance of the

Telecommunication and Media Industry

Scope and Limitations

The scope of the study is limited to collecting financial data published in the annual reports
of the company ever year. The study is carried out for 2 years (2016-2017). The present study is
confined only to determine the Current Ratio, Total Asset Turnover, Debt to Asset Ratio, Debt to
Equity Ratio, Net Profit Margin, Return on Total Asset, Return on Common Equity, Gross Profit
Margin, and Operating Profit Margin. Annual Report gathered and used are from Philippine
Telegraph and Telephone Corporation, Philippine Long Distance Telephone Inc., Globe Telecom
Inc., GMA Network Inc., Manila Broadcasting Company and ABS-CBN Corporation

Significance of the Study

Benefiting the study are the various sectors as follows:

For the Management of the Companies, this study could serve as a model, guides. And
reference in Improving their decision – making.
The Investors, may use the results as basis on which industry could provide them better
profit and returns
The Students and other Researchers, this study serves as a model for them to broaden
their knowledge on Ratio Analysis likewise, the researchers on Telecommunication and Media
Industry may use this study as a reference in coming up with their own.
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Definition of Terms
The following are some commonly used terms and concepts included in this research
defined within the context of how they apply to research in the effectiveness of ratio-analysis in
defining financial performance.
Balance sheet is a financial statement, which shows, the financial position of a business
entity of a business. It comprises of balance sheet, profit and loss account, note to the account,
value added statement sources and application of funds.
Current Ratio The current ratio is a liquidity ratio that measures a company's ability to
pay short-term and long-term obligations.
Debt to Asset The debt to total assets ratio is an indicator of financial leverage. It tells you
the percentage of total assets that were financed by creditors, liabilities, debt. The debt to
total assets ratio is calculated by dividing a corporation's total liabilities by its total assets.
Debt to Equity shows the proportion of equity and debt a company is using to finance its
assets and the extent to which shareholder's equity can fulfill obligations to creditors in the event
of a business decline.
Financial Performance a subjective measure of how well a company can use assets from
its primary mode of business and generate revenues.
Income Statement shows the company's revenues and expenses.
Liquidity is the state of possing liquid asset such as cash and other assets that will soon be
converted into cash.
Net Profit Margin is the percentage of revenue left after all expenses have been deducted
from sales. The measurement reveals the amount of profit that a business can extract from its total
sales.
Operating Profit Margin is a measure of profitability. It indicates how much of each
dollar of revenues is left over after both costs of goods sold and operating expenses are considered.
Profitability is the ability to generate income the income statement reflect a company's
profitability.
Ratio Analysis involves the companies of one figure against another to produce a ratio and
assessing whether the financial ratios indicate weakness or strength in the company's affairs.
Solvency the possession of assets in excess of liabilities; ability to pay one's debts.
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CHAPTER 2
METHODS

Research Design
Comparative research design was used to test if there is significant difference in the
average financial performance of the Telecommunication industry and Media industry.
A comparative research design is the act of comparing two or more things with a view to
discovering something about one or all of the things being compared. This technique often utilizes
multiple disciplines in one study.

Population
The researchers chose two of the well-known industries in the Philippines namely
Telecommunication and Media Industry. Under each industry 3 listed companies were selected:
Philippine Telegraph and Telephone Corporation, Philippine Long Distance Telephone Inc., Globe
Telecom Inc. for the Telecommunication Industry and, GMA Network Inc., Manila Broadcasting
Company and ABS-CBN Corporation for the Media industry.

Source of Data
The researchers used the Annual Financial statements for the year 2016-2017 of the
selected listed companies such as: Philippine Telegraph and Telephone Corporation, Philippine
Long Distance Telephone Inc., Globe Telecom Inc. GMA Network Inc., Manila Broadcasting
Company and ABS-CBN Corporation, consulted in Securities and Exchange Commission-(SEC).
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Financial Ratios
 Current Ratio
 Gross Profit Margin
 Operating Profit Margin
 Net Profit Margin
 Total Asset Turnover
 Return on Total Asset
 Return on Common Equity
 Debt to Asset Ratio
 Debt to equity
(CR= Current Asset/ Current Liabilities)
(GPM= Gross Profit/ Net Sales)
(OPM= Operating Profit / Net Sales)
(Profit Margin= Net Income/ Revenue)
(TATO= Revenue/ Total Assets)
(ROA= Net Income/ Total Assets)
(ROE= Net Income/ Capital)
(Debt Ratio= Total Debt/ Total Asset)
(Leverage= Total Liability/ Total equity)

Data Gathering Procedure

Main data for our thesis are the annual financial statements such as Balance Sheet and
Income Statement on every company When we measure the ratio analysis for the company, we
will use annual financial reports otherwise we can’t measure it with accuracy. We have also used
financial statements for ratio analysis of Companies.
Data Analysis
The model consists of six steps: selection of financial statements, identification of income
statement, balance sheets and, ratio analysis, the mathematical and statistical calculation of how it
define the performance of the industries.
The first step involves choosing of financial reports. These reports are produced by the
companies periodically as a regulation to give the company’s performance, fund flow and financial
position in a certain accounting period, the annual financial statements for the last 2 years
The second step of the model is to identify the suitable ratios for evaluating financial
performance of the companies and explain what they measure. There are various ratios such as
asset profitability ratios, debt ratio, liquidity ratio, solvency ratio & etc. Most of the ratios are
important in giving a picture of how a company is well suited to generate assets, manage its debts,
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liquidity levels, efficiency in terms expenses and level of shareholder equity profit or loss among
others.
The third step involves calculating the identified figures from the statements of financial
reports for the companies.
In the fourth step, analysis of the evaluations of the companies is tabulated and making a
separate tabulation according to industry. This is an easy to understand and clear method that can
be used to present the performance for the company for each 2 years. This will be created in
Microsoft Excel to tabulate for the company’s performance.
The fifth step involves the comparison of the industry with regards to liquidity position,
debt coverage facilities and profitability, asset management condition, from the ration analysis.
Based on this comparison, a recommendation can be made and explanations of good or poor
performance could be made.
Sixth, based on the ratio analysis and presentation, the research can conclude on the best
performing industry based on the kind of ratio used and analyzed.
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CHAPTER 3
RESULTS
1. Financial Performance of the Selected Listed Companies

Table 1.1 Financial Performance of PLDT for the year 2016-2017

RATIO 2016 2017 AVERAGE

Current Ratio 0.47 0.53 0.50

Total Asset Turnover 0.35 0.35 0.35

Debt to Asset Ratio 0.77 0.76 0.77

Debt to Equity Ratio 3.38 3.13 3.26

Net Profit Margin 0.12 0.08 0.10

Gross Profit Margin 0.15 0.06 0.11

Operating Profit Margin 0.13 0.09 0.11

Return on Total Asset 0.04 0.03 0.04

Return on Common Equity 0.19 0.12 0.16

From the table above, PLDT Inc. can cover its short term liabilities by 0.50 times with its
current ratio average. A 0.35 average on total assets turnover indicates that the company has
utilized its assets to generate sales by 35%. In terms of profitability, their gross profit margin and
net profit margin average shows that the company makes profit after paying off its cost of goods
sold and is capable on converting their sales into actual profit, both by 10%. Total revenues made
from their operating income are by 11%. Their return on total asset average, net income produced
by total assets during a period, is by 4% and their return on common equity which is the return of
investments for common shareholders is at 16%. The total assets financed by creditors on their
debt to asset ratio is 77% while the total assets that are financed by debt, showed in their debt to
equity ratio, is by 326%.
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Table 1. 2 Financial Performance of GLOBE for the year 2016-2017

RATIO 2016 2017 AVERAGE

Current Ratio 0.64 0.72 0.68

Total Asset Turnover 0.51 0.49 0.50

Debt to Asset Ratio 0.75 0.76 0.76

Debt to Equity Ratio 2.94 3.17 3.05

Net Profit Margin 0.13 0.11 0.12

Gross Profit Margin 0.17 0.15 0.16

Operating Profit Margin 0.17 0.16 0.17

Return on Total Asset 0.06 0.05 0.06

Return on Common Equity 0.25 0.23 0.24

Globe Telecom Inc., can cover its short term liabilities by 0.68 times with its current ratio
average. A 0.50 average on total assets turnover indicates that the company has utilized its assets
to generate sales by half. In terms of profitability, their gross profit margin and net profit margin
average shows that the company makes profit after paying off its cost of goods sold and is capable
on converting their sales into actual profit, by 16% and 12% respectively. Total revenues made
from their operating income are by 17%. Their return on total asset average, net income produced
by total assets during a period, is by 6% and their return on common equity which is the return of
investments for common shareholders is at 24%. The total assets financed by creditors on their
debt to asset ratio is 76% while the total assets that are financed by debt, showed in their debt to
equity ratio, is by 305%.
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Table 1.3 Financial Performance of PTTC for the year 2016-2017

RATIO 2016 2017 AVERAGE

Current Ratio 0.03 0.06 0.05

Total Asset Turnover 0.14 0.16 0.15

Debt to Asset Ratio 15.75 13.17 14.46

Debt to Equity Ratio -1.07 -1.08 -1.07

Net Profit Margin -0.54 -0.22 -0.38

Gross Profit Margin -0.36 -0.08 -0.22

Operating Profit Margin -0.54 0.21 -0.16

Return on Total Asset -0.08 -0.04 -0.06

Return on Common Equity 0.01 0.01 0.01

Philippines Telegraph and Telephone Corporation (PTTC) can cover its short term
liabilities by 0.05 times with its current ratio average. A 0.15 average on total assets turnover
indicates that the company has utilized its assets to generate sales by 15%. In terms of profitability,
their gross profit margin and net profit margin average shows a loss percentage of 22% and 38%
respectively. Total revenues made from their operating income also showed a loss of 16%. Their
return on total asset average, net income produced by total assets during a period, is by -6% and
their return on common equity which is the return of investments for common shareholders is at
1%. The total assets financed by creditors on their debt to asset ratio is 14.46 or 1446% stating that
the company is over-leveraged, while the total assets that are financed by debt, showed in their
debt to equity ratio, is by -107%.
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Table 1.4 Financial Performance of ABS-CBN for the year 2016-2017

RATIO 2016 2017 AVERAGE

Current Ratio 0.75 0.75 0.75

Total Asset Turnover 0.57 0.54 0.56

Debt to Asset Ratio 0.57 0.55 0.56

Debt to Equity Ratio 1.31 1.23 1.27

Net Profit Margin 0.08 0.08 0.08

Gross Profit Margin 0.12 0.10 0.11

Operating Profit Margin 0.11 0.10 0.11

Return on Total Asset 0.05 0.04 0.05

Return on Common Equity 0.11 0.09 0.10

ABS-CBN Corporation can cover its short term liabilities by 0.75 times with its current
ratio average. A 0.56 average on total assets turnover indicates that the company has utilized its
assets to generate sales by 56%. In terms of profitability, their gross profit margin and net profit
margin average shows that the company makes profit after paying off its cost of goods sold and is
capable on converting their sales into actual profit, by 11% and 8% respectively. Total revenues
made from their operating income are by 10%. Their return on total asset average, net income
produced by total assets during a period, is by 5% and their return on common equity which is the
return of investments for common shareholders is at 10%. The total assets financed by creditors
on their debt to asset ratio is 56% while the total assets that are financed by debt, showed in their
debt to equity ratio, is by 127%.
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Table 1.5 Financial Performance of GMA for the year 2016-2017

RATIO 2016 2017 AVERAGE

Current Ratio 2.83 2.71 2.77

Total Asset Turnover 1.04 1.04 1.04

Debt to Asset Ratio 0.23 0.23 0.23

Debt to Equity Ratio 0.35 0.36 0.36

Net Profit Margin 0.22 0.17 0.20

Gross Profit Margin 0.30 0.23 0.27

Operating Profit Margin 0.31 0.24 0.28

Return on Total Asset 0.23 0.17 0.20

Return on Common Equity 0.35 0.27 0.31

GMA Network Inc. can cover its short term liabilities by 2.77 times with its current ratio
average. A 1.04 average on total assets turnover indicates that the company has utilized its assets
to generate sales by 104%. In terms of profitability, their gross profit margin and net profit margin
average shows that the company makes profit after paying off its cost of goods sold and is capable
on converting their sales into actual profit, by 27% and 20% respectively. Total revenues made
from their operating income are by 28%. Their return on total asset average, net income produced
by total assets during a period, is by 20% and their return on common equity which is the return
of investments for common shareholders is at 31%. The total assets financed by creditors on their
debt to asset ratio is 23% while the total assets that are financed by debt, showed in their debt to
equity ratio, is by 36%.
 20

Table 1.6 Financial Performance of MBC for the year 2016-2017

RATIO 2016 2017 AVERAGE

Current Ratio 1.57 1.30 1.44

Total Asset Turnover 0.96 0.62 0.79

Debt to Asset Ratio 0.30 0.41 0.36

Debt to Equity Ratio 0.42 0.69 0.56

Net Profit Margin 0.15 0.12 0.14

Gross Profit Margin 0.16 0.41 0.29

Operating Profit Margin 0.21 0.17 0.19

Return on Total Asset 0.14 0.07 0.11

Return on Common Equity 0.20 0.12 0.16

Manila Broadcasting Company (MBC) can cover its short term liabilities by 1.44 times
with its current ratio average. A 0.79 average on total assets turnover indicates that the company
has utilized its assets to generate sales by 79%. In terms of profitability, their gross profit margin
and net profit margin average shows that the company makes profit after paying off its cost of
goods sold and is capable on converting their sales into actual profit, by 29% and 14% respectively.
Total revenues made from their operating income are by 19%. Their return on total asset average,
net income produced by total assets during a period, is by 11% and their return on common equity
which is the return of investments for common shareholders is at 16%. The total assets financed
by creditors on their debt to asset ratio is 36% while the total assets that are financed by debt,
showed in their debt to equity ratio, is by 56%.
 21

Table 1.7 Average Ratios of Selected Listed Companies

ABS-
RATIO PLDT GLOBE PTTC MBC GMA CBN
Current Ratio 0.50 0.68 0.05 1.44 2.77 0.75

Total Asset Turnover 0.35 0.05 0.15 0.79 1.04 0.56

Debt to Asset Ratio 0.77 0.76 14.46 0.36 0.23 0.56

Debt to Equity Ratio 3.26 3.05 -1.07 0.56 0.36 1.27

Net Profit Margin 0.10 0.12 -0.38 0.14 0.20 0.08

Gross Profit Margin 0.11 0.16 -0.22 0.29 0.27 0.11

Operating Profit Margin 0.11 0.17 -0.16 0.19 0.28 0.11

Return on Total Asset 0.04 0.06 -0.06 0.11 0.20 0.05

Return on Common Equity 0.16 0.24 0.01 0.16 0.31 0.10

GMA has the highest average current ratio among the six companies having 2.77 which
means that GMA is the best when it comes to covering their obligations. In Total asset turnover,
GMA has 1.04 which indicates that GMA was able to utilize their assets most efficiently. PTTC
has the highest average debt to asset ratio which appears that it has the highest insolvency risk
compared to other companies. In terms of profitability, MBC got 0.29 gross profit average shows
that the company makes profit after paying off its cost of goods sold by 29%. GMA total revenues
made from their operating income is 0.28 or 28% which means that it is most favourable because
the company is making enough money from its ongoing operations to pay for its variable costs as
well as its fixed costs and is capable on converting their sales into actual profit having 0.20 or 20%
net profit margin. It also appears that GMA hast the highest return on total asset and return on
common equity having 0.20 and 0.31 respectively which indicates that GMA was able to utilize
its resources well in generating income compared to other listed companies.
 22

Current Ratio

2.77

1.43

0.75 0.68
0.5 0.05

MBC GMA ABS-CBN PLDT GLOBE PTTC

Current Ratio

Average Current Ratio

1.65

0.41

MEDIA TELECOMMUNICATION

Cuurent Ratio

Average Current Ratio without PTTC

1.65

0.59

MEDIA TELECOMMUNICATION

Current Ratio
 23

Total Asset Turnover

1.04

0.79

0.56
0.5
0.35
0.15

MBC GMA ABS-CBN PLDT GLOBE PTTC

Total Asset Turnover

Average Total Asset Turnover

0.8

0.33

MEDIA TELECOMMUNICATION

Total Asset Turnover

Average Total Asset Turnover without PTTC

0.8

0.43

MEDIA TELECOMMUNICATION

Total Asset Turnover

 24

Debt to Asset

14.46

0.36 0.23 0.56 0.77 0.76

MBC GMA ABS-CBN PLDT GLOBE PTTC

Debt to Asset

Average Debt to Asset

5.33

0.38

MEDIA TELECOMMUNICATION

Debt to Asset

Average Debt to Asset without PTTC

0.77

0.38

MEDIA TELECOMMUNICATION

Debt to Asset
 25

Debt to Equity

3.26
3.05

1.27
0.56 0.36

-1.07

MBC GMA ABS-CBN PLDT GLOBE PTTC

Debt to Equity 0.56 0.36 1.27 3.26 3.05 -1.07

Debt to Equity

Average Debt to Equity

1.75

0.73

MEDIA TELECOMMUNICATION

Debt to Equity

Average Debt to Equity without PTTC

3.16

0.73

MEDIA TELECOMMUNICATION

Debt to Equity
 26

Net Profit Margin

0.2
0.14 0.12
0.08 0.1

MBC GMA ABS-CBN PLDT GLOBE PTTC

-0.38

Net Profit Margin

Average Net Profit Margin

0.14

-0.05

MEDIA TELECOMMUNICATION
Net Profit Margin 0.14 -0.05

Net Profit Margin

Average Net Profit Margin without PTTC

0.14

0.11

MEDIA TELECOMMUNICATION

Net Profit Margin

 27

Gross Profit Margin

0.29 0.27

0.11 0.11 0.16

-0.22

MBC GNA ABS-CBN PLDT GLOBE PTTC

Gross Profit Margin 0.29 0.27 0.11 0.11 0.16 -0.22

Gross Profit Margin

Average Gross Profit Margin

0.22

0.02

MEDIA TELECOMMUNICATION

Gross Profit Margin

Average Gross Profit Margin without PTTC

0.22

0.14

MEDIA TELECOMMUNICATION

Gross Profit Margin

 28

Operating Profit Margin

0.28
0.19 0.17
0.11 0.11

-0.16

MBC GMA ABS-CBN PLDT GLOBE PTTC

Operating Profit Margin 0.19 0.28 0.11 0.11 0.17 -0.16

Operating Profit Margin

Average Operating Profit Margin

0.19

0.04

MEDIA TELECOMMUNICATION

Operating Profit Margin

Average Operating Profit Margin

0.19

0.14

MEDIA TELECOMMUNICATION

Operating Profit Margin

 29

Return on Total Asset

0.2

0.11
0.05 0.04 0.06

-0.06

MBC GMA ABS-CBN PLDT GLOBE PTTC

Return on Total Asset 0.11 0.2 0.05 0.04 0.06 -0.06

Return on Total Asset

AverageReturn on Total Asset

0.12

0.01

MEDIA TELECOMMUNICATION

Return on Total Asset

Average Return on Total Asset without PTTC

0.12

0.05

MEDIA TELECOMMUNICATION

Return on Total Asset

 30

Return in Common Equity

0.31

0.24

0.16 0.16

0.1
0.01

MBC GMA ABS-CBN PLDT GLOBE PTTC

Return in Common Equity

Average Return on Common Equity

0.19

0.14

MEDIA TELECOMMUNICATION

Return on Common Equity

Average Return on Common Equity without

PTTC

0.2

0.19

MEDIA TELECOMMUNICATION

Return on Common Equity

 31

2. Financial Performance of Telecommunication and Media Industry with their

corresponding listed companies

Table 2.1 Financial Performance of the Selected Listed Companies under

Telecommunication Industry

RATIO PLDT GLOBE PTTC AVERAGE

Current Ratio 0.50 0.68 0.05 0.41
Total Asset Turnover 0.35 0.50 0.15 0.33
Debt to Asset Ratio 0.77 0.76 14.46 5.33
Debt to Equity Ratio 3.26 3.05 - 1.07 1.75
Net Profit Margin 0.10 0.12 - 0.38 -0.05
Gross Profit Margin 0.11 0.16 - 0.22 0.02
Operating Profit Margin 0.11 0.17 - 0.16 0.04
Return on Total Asset 0.04 0.06 - 0.06 0.01
Return on Common Equity 0.16 0.24 0.01 0.14

Telecommunication industry can cover its short term liabilities by 0.41 times with its
current ratio average. A 0.33 average on total assets turnover indicates that the company has
utilized its assets to generate sales by half. In terms of profitability, their gross profit margin and
net profit margin average shows that the company does not make enough profit after paying off its
cost of goods sold and is not capable on converting their sales into actual profit, by 2% and -5%
respectively. Total revenues made from their operating income are by 4%. Their return on total
asset average, net income produced by total assets during a period, is by 1% and their return on
common equity which is the return of investments for common shareholders is at 14%. The total
assets financed by creditors on their debt to asset ratio is 533% while the total assets that are
financed by debt, showed in their debt to equity ratio, is by 175%.
 32

Table 2.2 Financial Performance of the Selected Listed Companies under

Media Industry

RATIO MBC GMA ABSCBN AVERAGE

Current Ratio 1.44 2.77 0.75 1.65
Total Asset Turnover 0.79 1.04 0.56 0.80
Debt to Asset Ratio 0.36 0.23 0.56 0.38
Debt to Equity Ratio 0.56 0.36 1.27 0.73
Net Profit Margin 0.14 0.20 0.08 0.14
Gross Profit Margin 0.29 0.27 0.11 0.22
Operating Profit Margin 0.19 0.28 0.11 0.19
Return on Total Asset 0.11 0.20 0.05 0.12
Return on Common Equity 0.16 0.31 0.10 0.19

Media industry can cover its short term liabilities by 1.65 times with its current ratio
average. A 0.80 average on total assets turnover indicates that the industry has utilized its assets
to generate sales by 80%. In terms of profitability, their gross profit margin and net profit margin
average shows that the industry makes profit after paying off its cost of goods sold and is capable
on converting their sales into actual profit, by 22% and 14% respectively. Total revenues made
from their operating income are by 19%. Their return on total asset average, net income produced
by total assets during a period, is by 12% and their return on common equity which is the return
of investments for common shareholders is at 19%. The total assets financed by creditors on their
debt to asset ratio is 38% while the total assets that are financed by debt, showed in their debt to
equity ratio, is by 73%.
 33

3. Comparison of the Financial Performance of the Telecommunication and

Media Industry

Table 3.1 SPSS Comparison of Telecommunication and Media Industry Financial Ratios

The Current assets of Media industry can cover their short and long term obligations by
1.65 times while 0.41 in Telecommunication industry. It also appears that Media is better than
Telecommunication when it comes to covering their obligations.
The total Asset turnover of Media industry is .80 or 80% while 0.33 or 33% in
Telecommunication which means that Media utilize their assets more efficiently than
Telecommunication industry.
The Debt to asset ratio of Media industry is 0.38 or 38% while 5.33 or 533% in
Telecommunication which indicates that Telecommunication industry has a higher insolvency risk
and the creditors has more claims on its assets compared to Media industry.
The Debt to equity ratio of Media industry is 0.73 or 73% while 1.75 or 175% in
Telecommunication which shows that the Telecommunication industry has a higher ratio resulting
to an interference of lenders in the management as they have higher stake in the business.
The Net profit margin of Media industry is 0.14 or 14% which means the industry is
efficient at converting sales into actual profit than Telecommunication which has -0.05 or 5% net
loss.
The Gross profit margin of Media industry is 0.22 or 22% while 0.02 or 2% in
Telecommunication which appears that Media industry has a higher gross profit margin that means
 34

the industry did well in managing its cost of sales it also shows that the industry has more to cover
for operating, financing and other costs.
The Operating profit margin of Media industry is 0.19 or 19% while 0.04 or 4% in
Telecommunication industry, which may infer that Media industry is more favourable because the
industry is making enough money from its ongoing operations to pay for its variable costs as well
as its fixed costs.
The Return on Total Asset of Media industry is 0.12 or 12% while 0.01 or 1% in
Telecommunication which indicates that Media industry was able to utilize its resources well in
generating income compared to Telecommunication industry.
The Return on Common Equity of Media industry is 0.19 or 19% while 0.14 or 14% in
Telecommunication industry which implicates that Media industry is more successful in
generating cash internally.

Table 3.2 SPSS Comparison of Telecommunication and Media Industry Financial Ratios
(excluding PTTC)

The Current assets of Media industry can cover their short and long term obligations by 1.65 times
while 0.59 in Telecommunication industry. It also appears that Media is better than
Telecommunication when it comes to covering their obligations.
The total Asset turnover of Media industry is .80 or 80% while 0.43 or 43% in
Telecommunication which means that Media utilize their assets more efficiently than
Telecommunication industry.
 35

The Debt to asset ratio of Media industry is 0.38 or 38% while 0.77 or 77% in
Telecommunication which indicates that Telecommunication industry has a higher insolvency risk
and the creditors has more claims on its assets compared to Media industry.
The Debt to equity ratio of Media industry is 0.73 or 73% while 3.16or 316% in
Telecommunication which shows that the Telecommunication industry has a higher ratio resulting
to an interference of lenders in the management as they have higher stake in the business.
The Net profit margin of Media industry is 0.14 or 14% which means the industry is
efficient at converting sales into actual profit than Telecommunication which has 0.11or 11%.
The Gross profit margin of Media industry is 0.22 or 22% while 0.14 or 14% in
Telecommunication which appears that Media industry has a higher gross profit margin that means
the industry did well in managing its cost of sales it also shows that the industry has more to cover
for operating, financing and other costs.
The Operating profit margin of Media industry is 0.19 or 19% while 0.14 or 14% in
Telecommunication industry, which may infer that Media industry is more favourable because the
industry is making enough money from its ongoing operations to pay for its variable costs as well
as its fixed costs.
The Return on Total Asset of Media industry is 0.12 or 12% while 0.05 or 5% in
Telecommunication which indicates that Media industry was able to utilize its resources well in
generating income compared to Telecommunication industry.
The Return on Common Equity of Media industry is 0.19 or 19% while 0.20 or 20% in
Telecommunication industry which implicates that Telecommunication industry is more
successful in generating cash internally.
 36

Table 4.1 SPSS T- test of the Telecommunication and Media Industry

As reflected in the SPSS output the p-value is 0.004 which is less than 0.05. Hence, there
is sufficient evidence to conclude that there is significant difference in the average financial
performance of the Telecommunication and Media Industry.(PTTC included)
 37

Table 4.2 SPSS T- test of the Telecommunication and Media Industry

(excluding PTTC)

As shown above, the p-value is 0.00012 which is less than 0.05. This Implies there is a
strong evidence against the null hypothesis it can be concluded that there is significant difference
in the average financial performance of the Telecommunication and Media Industry. (PTTC
excluded)
 38

CHAPTER 4
DISCUSSION

Summary of Findings
This section summarizes the findings on analysis made by the researchers, it is clear that
there is sufficient evidence to believe that there is significant difference in the financial
performance of the media and telecommunication industry.

1. Financial Performance of the selected listed companies categorized under Media and
Telecommunications Company.

1.1 PLDT
The average current ratio of PLDT which is .50 is their strength while their weakness is the
average return on total asset which is .04. The debt to asset ratio is .77 which is good for the
company. However, their average debt to equity is 3.26 which shows that debt is higher than
the equity of the company.
1.2 Globe
The highest ratio of Globe is .68 which is under the average current ratio while the lowest
ratio is .06 which is under return on total asset. Globe has more assets than liabilities based on
debt to asset of .76. Hence, more creditor financing is used than investor financing based on
debt to equity ratio of 3.05.
1.3 PTTC
The total asset turnover of PTTC which is .15 is their strength while their weakness is the net
profit margin which is -.38. The debt to asset ratio is 14.46 which is means that the company
as more liabilities than assets. However, their average debt to equity is -1.07 which shows that
equity is higher than debt of the company.
1.4 ABS-CBN
The highest ratio of ABS-CBN is .75 which is under the average current ratio while the lowest
ratio is .05 which is under return on total asset. ABS-CBN has more assets than liabilities
based on debt to asset of .56. Hence, more creditor financing is used than investor financing
based on debt to equity ratio of 1.27.
 39

1.5 GMA
The average current ratio of PLDT which is 2.77 is their strength while their weakness are net
profit margin and average return on total asset which is .2 respectively. The debt to asset ratio
is .23 which is good for the company. However, their average debt to equity is .36 which
shows that equity is higher than debt of the company.
1.6 MBC
The highest ratio of MBC is 1.44 which is under the average current ratio while the lowest
ratio is .11 which is under the average return on total asset. MBC has more assets than
liabilities based on debt to asset of .36. Hence, more investor financing is used than creditor
financing based on debt to equity ratio of .56.

2. Financial Performance of Telecommunication and Media Industry

Average Current Ratio of Media industry is 1.65 while Telecommunication
industry is 0.41. Average Asset turnover Ratio of Media industry is 80%. Hence,
Telecommunication industry has 33% of Asset Turnover. Average Debt to asset ratio of
Media industry is 38% while Telecommunication industry has 533% Debt to Asset Ratio.
Average Debt to equity ratio of Media industry is 73%. However, Telecommunication
industry has 175% debt to equity ratio. Average Net profit margin is 14% in Media industry
while 5% in Telecommunication industry. Average Gross profit margin of Media industry
is 22%. However, Telecommunication industry has 2% average Gross Profit Margin.
Average Operating profit margin of Media industry is 19% while Telecommunication
industry is 4%. Average Return on Total Asset of Media industry is 12%. However,
Telecommunication has 1% Return on Total Asset. Average Return on Common Equity of
Media industry is 19% while Telecommunication industry has 14%.

3. Comparison of Financial Performance of Media and Telecommunication Industry

Based on the nine financial ratios used, Media industry has a higher average result
than Telecommunication industry which indicated that Media industry performed better
than Telecommunication industry.
 40

The Current assets of Media industry can cover more of their short and long term obligations
than Telecommunication industry. In Total Asset turnover Media utilize their assets more
efficiently than Telecommunication industry. Debt to asset ratio Telecommunication industry
has a higher insolvency risk and the creditor has more claims on its assets compared to Media
industry. Debt to equity ratio Telecommunication industry has a higher ratio resulting to an
interference of lenders in the management as they have higher stake in the business. The Net
profit margin of Media industry is 0.14 or 14% which means the industry is efficient at
converting sales into actual profit than Telecommunication which has -0.05 or 5% net loss.
Gross profit margin Media industry has a higher gross profit margin that means the industry
did well in managing its cost of sales it also shows that the industry has more to cover for
operating, financing and other costs. Operating profit margin Media industry is more favorable
because the industry is making enough money from its on-going operations to pay for its
variable costs as well as its fixed costs. Return on Total Asset Media industry was able to
utilize its resources well in generating income compared to Telecommunication industry.
Return on Total Asset Media industry was able to utilize its resources well in generating
income compared to Telecommunication industry. Return on Common Equity Media industry
is more successful in generating cash internally.
4. Test of Significant difference in the average financial performance of Telecommunication
and Media industry.

The p-value is less than 0.05, hence there is sufficient evidence against the null hypothesis.

Conclusion
Generally, these findings are consistent with research showing that the media industry is
performing well than the telecommunication industry. Telecommunication industry needs to make
a way to develop and to improve their status to gain more investors. The researchers concluded
that:

1. All selected listed companies except PTTC is profitable as reflected in their average
financial ratios.
 41

2. The Financial performance of ABS-CBN, GMA and MBC which are categorized under
Media industry can use their assets from it’s primary mode of business and can generate revenue.
Hence, PLDT, Globe and PTTC which are under Telecommunication industry need a lot of
improvement in terms of asset and liabilities management in order to generate revenue.

3. Financial performance of Media industry is better than Telecommunication industry

because companies under it has a growing revenue, low debt ratios and high profitability, liquidity
and solvency.

4. There is a significant difference in the financial performance between Media and

Telecommunication Industry. The assessment of their financial status was done through the
computation of their average financial ratios. It indicated that Media industry performed better
than Telecommunication industry.

Recommendation
This study can help some business to know their current status by using ratio analysis. In
addition, this might prove an important area for future research. A number of recommendations
for further study and recommendations for change.

1. Investors may consider investing in the selected listed companies such as ABS-
CBN, GMA, MBC, PLDT and Globe except PTTC. This is a great help for them to begin
incorporating their capital or market investments into their financial plan.

2. Both industries may evaluate and review every aspects of their business.
Telecommunication industry should recover and consolidate their outstanding debt and by means
of using new marketing techniques to increase sales. On the other hand, Media industry should
monitor and consistently manage their assets, liabilities and equity.

3. It would be better for the investors to invest in the Media industry than in the
Telecommunication industry.
 42

4. Investors may use financial ratio analysis to assess and evaluate the financial performance
of other industries they want to invest in. To future researchers and students, they may use this
study as a guide and future reference and consider other types of Financial Ratio Analysis in
comparing the financial performance of various companies and industries.

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 44

September 20, 2018

MR. GERARDO F. DEL ROSARIO

Director – Human Resource and Administrative Department
Securities and Exchange Commission
3/F PICC Secretariat Building
PICC Complex, Pasay City

Dear Mr. Del Rosario

Good day!

In partial fulfillment of our requirement in Research 2 (Thesis Writing), we, BS Accounting

Technology students of New Era University, are conducting a research entitled
“A COMPARATIVE STUDY OF FINANCIAL PERFORMANCE USING RATIO
ANALYSIS BETWEEN TWO INDUSTRIES: TELECOMMUNICATION AND MEDIA”.
We would like to ask for your permission if we could have Philippine Telegraph and Telephone
Corporation, Philippine Long Distance Telephone Inc., Globe Telecom Inc., GMA Network
Inc., Manila Broadcasting Company and ABS-CBN Corporation as our chosen companies for
the said requirements.

In connection with this, we would also like to ask your good office to allow us to gather data
particularly financial statements at reports needed for our study. Please rest assured that the data
gathered will remain absolutely confidential and to be used for academic purposes only.
We believe that you are with us in our enthusiasm to finish this requirement in compliance for our
Thesis Writing course and to develop our research capability. We hope for your positive response
on this humble request. Your approval will be greatly appreciated.

Thank you very much.

Very respectfully yours

 45

PLDT FINANCIAL STATEMENTS

GLOBE FINANCIAL STATEMENTS

 46

PTTC FINANCIAL STATEMENTS

ABS-CBN FINANCIAL STATEMENTS

 47

GMA FINANCIAL STATEMENTS

MANILA BROADCASTING FINANCIAL STATEMENTS

 48

PLDT STOCK DATA

GLOBE STOCK DATA

 49

PTTC STOCK DATA

ABS-CBN STOCK DATA

 50

GMA STOCK DATA

MBC STOCK DATA

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EDSON KARL NGO

78 CHERRY BLOSSOM ST. PAYATAS A. Q.C
+639367181142
Karlsonu38@gmail.com

EDUCATIONAL BACKGROUND

 Tertiary Education: New Era University

Address: No. 9 Central Ave. New Era Quezon City
Degree Program: BS Accounting Technology

 Secondary Education: Batasan Hills National High School

(Engineering and Science Education Program/ ESEP )
Address: IBP Road, Batasan Hills, Quezon City
Year Graduated: 2015

ORGANIZATIONAL AFFILIATIONS

 National Federation- Junior Philippine Institute of Accountants

Member
2015-Present

 New Era University- Junior Philippine Institute of Accountants

Communications Committee
2018-2019

 Sight Camera Club-New Era University

Member
2017-Present
 Air Force of the Philippines Educational Benefit System Office
Scholar 2015-2016

 Philippine Air Force Educational Fund Inc.

Scholar 2017- Present
 52

AWARDS AND RECOGNITIONS

 Certified Bookkeeping NC III – passer
TESDA – NCR, Quezon City District Office
October 2018

 Civil Service Examination – Pen and Paper test

Professional Level Passer
November 2018

 Academic Excellence Award

NSTP - CWTS
New Era University
2015-2016

 President’s Lister Award

College of Accountancy
1st semester 2017-2018

 Dean’s Lister Award

College of Accountancy
1st semester 2015-2016
2nd semester 2017-2018
1st semester 2018-2019

 With Honors
Batasan Hills National High School - (ESEP)
2014-2015

 4th Honorable Mention

Payatas A. Elementary School
2010-2011

SEMINARS AND TRAININGS

ATTENDED
 SAP Business One- Fundamentals of Accounting
New Era University
No. 9 Central Ave. New Era Quezon City
2015
 SAP Business Two- Cost Accounting
New Era University
 53

No. 9 Central Ave. New Era Quezon City

2017

 Debit Love Credit Depression

New Era University
No. 9 Central Ave. New Era Quezon City
2017

 Entrepreneurs Circle Introductory Seminar: Entrepreneurial Basics

Brgy. New Era Multipurpose Hall
September 2017

 Financial Statement Analysis

New Era University
2018

SKILLS

 Comprehensive Knowledge in SAP

 Proficient with Microsoft Word
 Good communication and interpersonal skill
 Confident public speaker
 Capable of working under pressure

CHARACTER REFERENCES
 Precious Gem Mendoza, CPA
Professor, College of Accountancy
New Era University
+639178056689
 Christopher Figueroa
Professor, College of Arts and Sciences
New Era University
+639052421981
 Adrian Bustamante
Marketing Supervisor
Quezon City
+6390661973
CAMILLE CUENTO
B3 L5 Recoletos St., Metropolis Vill. 1, Pasig City
+639277245825
cuento.business@gmail.com

EDUCATIONAL BACKGROUND

 Tertiary Education: New Era University

Address: No. 9 Central Ave. New Era Quezon City
Degree Program: BS Accounting Technology

 Secondary Education: Sta. Lucia High School

(Engineering and Science Education Program/ ESEP )
Address: Tramo St., Rosario Village, Pasig City
Year Graduated: 2014

ORGANIZATIONAL AFFILIATIONS

 National Federation- Junior Philippine Institute of Accountants

Member
2015-Present

 New Era University- Junior Philippine Institute of Accountants

Communications Committee
2018-2019

 Accounting Department New Era University

Student Assistant
2017-Present

 Division Federation of Supreme Student Government, Pasig City

Treasurer
2013-2014

 Supreme Student Government, Sta. Lucia High School

President 2013-2014
AWARDS AND RECOGNITIONS
 Certified Bookkeeping NC III – passer
TESDA – NCR, Quezon City District Office
October 2018

 Excellence in Leadership Awardee

Sta. Lucia High School
2013-2014

 2nd Honorable Mention

Sta.Lucia High School
2013-2014

SEMINARS AND TRAININGS

ATTENDED
 SAP Business One- Fundamentals of Accounting
New Era University
No. 9 Central Ave. New Era Quezon City
2015
 SAP Business Two- Cost Accounting
New Era University
No. 9 Central Ave. New Era Quezon City
2017

 Debit Love Credit Depression

New Era University
No. 9 Central Ave. New Era Quezon City
2017

SKILLS

 Comprehensive Knowledge in SAP

 Proficient with Microsoft Word
 Good communication and interpersonal skill
 Confident public speaker
 Capable of working under pressure
CHARACTER REFERENCES

 Levi Bondoc
University Accountant
New Era University
+639162318153
 Christopher Figueroa
Professor, College of Arts and Sciences
New Era University
+639052421981
 Precious Gem Mendoza, CPA
Professor, College of Accountancy
New Era University
+639178056689
JERICO JUANGCO
08 Jovan St. Villa Corrina Pasong Tamo Q.C.
+639206827490
jerico.jj.juangco@gmail.com

EDUCATIONAL BACKGROUND

 Tertiary Education: New Era University

Address: No. 9 Central Ave. New Era Quezon City
Degree Program: BS Accounting Technology

 Secondary Education: St. Claire School

Address: 26 Masbate, Quezon City, 1104 Metro Manila
Year Graduated: 2015

ORGANIZATIONAL AFFILIATIONS

 New Era University- Junior Philippine Institute of Accountants

Member
2018-2019

 National Federation- Junior Philippine Institute of Accountants

Member
2017-Present

AWARDS AND RECOGNITIONS

 Certified Bookkeeping NC III – passer
TESDA – NCR, Quezon City District Office
October 2018
  With Honors
St. Claire School
2014-2015

 Deputy Corps Commander

C.A.T. officer St. Claire School
2015

 5th Honorable Mention

Coronados’ School of Quezon City
2010-2011

SEMINARS AND TRAININGS

ATTENDED
 SAP Business One- Fundamentals of Accounting
New Era University
No. 9 Central Ave. New Era Quezon City
2015
 SAP Business Two- Cost Accounting
New Era University
No. 9 Central Ave. New Era Quezon City
2017

 Debit Love Credit Depression

New Era University
No. 9 Central Ave. New Era Quezon City
2017

 Financial Statement Analysis

New Era University
2018

SKILLS

 Comprehensive Knowledge in SAP

 Proficient with Microsoft Word
 Proficient with Excel
  Digital audio engineer
 Capable of working under pressure

CHARACTER REFERENCES
 Jay R Malubay, CPA
Professor, College of Accountancy
New Era University
+6399063991017

 Isagani T. Sabado, CPA, MBA, CIA

Dean, College of Accountancy
New Era University
+639178562980

 Precious Gem Mendoza, CPA

Professor, College of Accountancy
New Era University
+639178056689
GLYVEN MAE VITALE
B10 L21 Sampaguita St.,Villa Adelina II
Brgy Pulo, Cabuyao, 4025
+639156423683
glyvzzz@gmail.com

EDUCATIONAL BACKGROUND

 Tertiary Education: New Era University

Address: 9 Central Ave, New Era, Quezon City, 1107 Metro Manila
Degree Program: Bachelor of Science Major in Accounting Technology

 Secondary Education: Kibia National High School

Address: Brgy. Kibia, Matalam, North Cotabato
Year Graduated: 2015

ORGANIZATIONAL AFFILIATIONS
 New Era University - Junior Philippine Institute of Accountants
Member
2016-Present

 National Federation- Junior Philippine Institute of Accountants

Member
2015-Present

AWARDS AND RECOGNITIONS

 Certified Bookkeeping NC III – passer

TESDA – NCR, Quezon City District Office
October 2018
  2nd Honorable Mention
Kibia National High School
2014-2015

 With Honors
Kibia Central Elementary School
2010–2011

SEMINARS AND TRAININGS

ATTENDED
 SAP Business One – Fundamentals of Accounting
New Era University
Central Ave, Diliman, Quezon City
2016

 Entrepreneurs Circle Introductory Seminar: Entrepreneurial Basics

Brgy. New Era Multipurpose Hall
September 2017

 SAP Business One – Cost Accounting

New Era University
Central Ave, Diliman, Quezon City
2018

SKILLS
 Knowledgeable in MS Office and MS Excel as well as in Systems Applications and
Products (SAP)
 Ability to work independently and as a part of a team
 Fast learner and works well under pressure
 Exceptional interpersonal skills

CHARACTER
 REFERENCES
 Winson G. Liwanag, CPA
Professor, College of Accountancy
New Era University
+639756904002
 Dr. Irene P. Solano
Professor, College of Business Administration
New Era University
+639179501972

 Isagani T. Sabado, CPA, MBA

Dean and Professor, College of Accountancy
New Era University
+639178562980
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