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ASSET TURNOVER P 0. 94
Average total assets for 2014 (beginning) and 2015 (ending) is:
P282, 239,000 + P269, 053,000 = P 551,292,000
P 551,292,000/2 = P275, 646,000
Based on the given data, Meralcos asset turnover for 2015 is 0.94.
Meaning for every peso in assets, Meralco only generated 0.94 cents.
CURRENT RATIO
YEAR 2014 2015
It is shown above that the resulting current ratio of 2014 is 1.34 and 1.02 for
the year 2015 which signifies that the firm continues to meet it short- term
obligations because the value of the current ratio is above 1.
OPERATING CASH FLOW RATIO
YEAR 2014 2015
CASH FLOW FROM OPERATIONS P 37, 495, 000 P 41, 683, 000
The above operating cash flow ratio for both 2014 and 2015 signifies that the
company generated P 0.45 from operations for every one peso in current
liabilities. Meralcos current liabilities are not covered by the cash generated
from its operations because the value of the operating cash flow ratio is
below 1.
DEBT TO EQUITY RATIO
YEAR 2014 2015