Bagon, Jerome L.

BSBA FMA 3

Globe Telecom, Inc.

Globe Telecom, Inc. (“Globe” or the “company”) is a leading full-service

telecommunications company in the Philippines and is listed in the Philippine Stock
Exchange under ticker symbol GLO. The company serves the telecommunications
and technology needs of consumers and businesses across an entire suite of
products and services including mobile, fixed, broadband, data connectivity,
internet and managed services. It has major interests in financial technology, digital
marketing solutions, venture capital funding for startups, and virtual healthcare.

PLDT, Inc.

PLDT is the Philippines’ largest fully integrated telco company. Through its principal
business groups – from fixed lines to wireless – PLDT offers a wide range of
telecommunications and digital services across the Philippines’ most extensive
fiber optic backbone, and fixed line and cellular networks.

PLDT is listed on the Philippine Stock Exchange (PSE:TEL) and its American
Depositary Shares are listed on the New York Stock Exchange (NYSE:PHI). PLDT
has one of the largest market capitalizations among Philippine listed companies.
 PLDT,Inc.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As at December 31, 2019 and 2018
(in million pesos)

2019 2018
ASSETS
Noncurrent Assets
Property and equipment (Notes 9 and 22) 232,134 195,964
Right-of-use assets (Note 10) 15,890 —
Investments in associates and joint ventures (Note 11) 53,863 55,427
Financial assets at fair value through profit or loss (Note 12) 3,369 4,763
Debt instruments at amortized cost – net of current portion (Note 13) — 150
Investment properties (Notes 6 and 14) 778 777
Goodwill and intangible assets (Note 15) 67,825 68,583
Deferred income tax assets – net (Note 7) 23,623 27,697
Derivative financial assets – net of current portion (Note 28) 1 140
Prepayments – net of current portion (Notes 19 and 25) 48,933 23,338
Financial assets at fair value through other comprehensive income – net of current portion
(Notes 6, 11 and 25) 162 2,749
Contract assets – net of current portion (Note 5) 750 1,083
Other financial assets – net of current portion (Note 28) 1,986 2,275
Other non-financial assets – net of current portion 136 230
Total Noncurrent Assets 449,450 383,176
Current Assets
Cash and cash equivalents (Note 16) 24,369 51,654
Short-term investments (Note 28) 314 1,165
Trade and other receivables (Note 17) 22,436 24,056
Inventories and supplies (Note 18) 3,412 2,878
Current portion of contract assets (Note 5) 1,997 2,185
Current portion of derivative financial assets (Note 28) 41 183
Current portion of debt instruments at amortized cost (Note 13) 150 —
Current portion of prepayments (Note 19) 11,298 8,380
Current portion of financial assets at fair value through other comprehensive income
(Notes 6, 11 and 25) 2,757 1,604
Current portion of other financial assets (Notes 20 and 28) 8,086 7,008
Current portion of other non-financial assets 717 461
Total Current Assets 75,577 99,574
TOTAL ASSETS 525,027 482,750

EQUITY AND LIABILITIES

Equity
Non-voting serial preferred stock (Note 20) 360 360
Voting preferred stock (Note 20) 150 150
Common stock (Note 20) 1,093 1,093
Treasury stock (Note 20) (6,505) (6,505)
Treasury shares under employee benefit trust (Note 26) (394) (854)
Capital in excess of par value (Note 20) 130,312 130,526
Other equity reserves (Note 26) 276 697
Retained earnings (Note 20) 18,063 12,081
Other comprehensive loss (Note 6) (31,368) (25,190)
Total Equity Attributable to Equity Holders of PLDT (Note 28) 111,987 112,358
Noncontrolling interests (Note 6) 4,303 4,308
TOTAL EQUITY 116,290 116,666
See accompanying Notes to Consolidated Financial Statements.
 CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(continued)
As at December 31, 2019 and 2018
(in million pesos)

2019 2018
Noncurrent Liabilities
Interest-bearing financial liabilities – net of current portion (Notes 21 and 28) 172,834 155,835
Lease liabilities – net of current portion (Note 10) 13,100 —
Deferred income tax liabilities (Note 7) 2,583 2,981
Derivative financial liabilities – net of current portion (Note 28) 25 —
Customers’ deposits (Note 28) 2,205 2,194
Pension and other employee benefits (Note 26) 8,985 7,182
Deferred credits and other noncurrent liabilities (Note 22) 4,557 5,284
Total Noncurrent Liabilities 204,289 173,476
Current Liabilities
Accounts payable (Note 23) 77,845 74,610
Accrued expenses and other current liabilities (Notes 24 and 27) 100,815 95,724
Current portion of interest-bearing financial liabilities (Notes 21 and 28) 19,722 20,441
Current portion of lease liabilities (Note 10) 3,215 —
Dividends payable (Note 20) 1,584 1,533
Current portion of derivative financial liabilities (Note 28) 88 80
Income tax payable 1,179 220
Total Current Liabilities 204,448 192,608
TOTAL LIABILITIES 408,737 366,084
TOTAL EQUITY AND LIABILITIES 525,027 482,750
See accompanying Notes to Consolidated Financial Statements.
 CONSOLIDATED INCOME STATEMENTS
For the Years Ended December 31, 2019, 2018 and 2017
(in million pesos, except earnings per common share amounts which are in pesos)

2019 2018 2017

REVENUES
Service revenues (Note 5)* 161,355 152,369 150,172
Non-service revenues (Note 5) 7,832 10,545 8,761
169,187 162,914 158,933
EXPENSES
Selling, general and administrative expenses (Note 5) 68,230 73,916 68,990
Depreciation and amortization (Notes 9 and 10) 39,656 47,240 51,915
Cost of sales and services (Note 5) 13,429 14,427 13,633
Asset impairment (Note 5) 4,833 8,065 8,258
Interconnection costs* 3,638 5,493 6,626
129,786 149,141 149,422
39,401 13,773 9,511

OTHER INCOME (EXPENSES) – NET (Note 5) (7,065 ) 9,042 5,058

INCOME BEFORE INCOME TAX 32,336 22,815 14,569

PROVISION FOR INCOME TAX (Note 7) 9,550 3,842 1,103

NET INCOME 22,786 18,973 13,466
ATTRIBUTABLE TO:
Equity holders of PLDT (Note 8) 22,521 18,916 13,371
Noncontrolling interests 265 57 95
22,786 18,973 13,466
Earnings Per Share Attributable to Common Equity Holders
of PLDT (Note 8)
Basic 103.97 87.28 61.61
Diluted 103.97 87.28 61.61
For the years ended December 31, 2019 and 2018, the total service and non-service revenues pertains to revenue from contracts with
customers.

* Certain amounts in 2018 and 2017 were adjusted to reflect the effects of matters discussed in Note 5 – Income and Expenses –
Adjustments.

See accompanying Notes to Consolidated Financial Statements.

 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the Years Ended December 31, 2019, 2018 and 2017
(in million pesos)

2019 2018 2017

NET INCOME 22,786 18,973 13,466

OTHER COMPREHENSIVE INCOME (LOSS) – NET OF TAX

(Note 6)
Fair value changes of financial assets at fair value through
other comprehensive income (loss) (Note 25) 127 (29 ) —
Foreign currency translation differences of subsidiaries 23 117 (18 )
Net transactions on cash flow hedges: (256 ) (271 ) (376
) Net fair value losses on cash flow hedges (Note 28) (330 ) (286 ) (411
)
Income tax related to fair value adjustments charged directly
to equity (Note 7) 74 15 35
Net gains on available-for-sale financial investments: — — 3,364
Unrealized gains from changes in fair value
adjustments recognized during the year (Note 12) — — 2,826
Impairment recognized in profit or loss — — 540
Income tax related to fair value adjustments charged directly
to equity (Note 7) — — (2 )
Share in the other comprehensive income of associates and joint
ventures accounted for using the equity method (Note 11) — — 112
Net other comprehensive income (loss) to be reclassified to
profit or loss in subsequent years (106 ) (183 ) 3,082
Revaluation increment on investment properties: (2 ) (2 ) 1
Depreciation of revaluation increment in investment properties
transferred to property and equipment (Note 9) (3 ) (2 ) (2 )
Income tax related to revaluation increment charged directly
to equity (Note 7) 1 — (1 )
Fair value adjustment to property and equipment transferred
to investment properties during the year — — 4
Actuarial losses on defined benefit obligations: (6,074 ) (1,222 ) (1,091 )
Remeasurement in actuarial losses on defined
benefit obligations (Note 26) (8,672 (1,788 (1,566
Income tax related to remeasurement adjustments (Note 7) )2,598 ) 566 ) 475
Share in the other comprehensive income of associates and joint
ventures accounted for using the equity method (Note 11) — — 194
Net other comprehensive loss not to be reclassified to profit or loss
in subsequent years (6,076 ) (1,224 ) (896
) Total Other Comprehensive Income (Loss) – Net of Tax (6,182 ) (1,407 ) 2,186
TOTAL COMPREHENSIVE INCOME 16,604 17,566 15,652
ATTRIBUTABLE TO:
Equity holders of PLDT 16,343 17,504 15,550
Noncontrolling interests 261 62 102
16,604 17,566 15,652

See accompanying Notes to Consolidated Financial Statements.

 PLDT INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For the Years Ended December 31, 2019, 2018 and 2017
(in million pesos)

Treasury

Shares Total Equity

under Capital in Other Attributable to
Preferred Common Treasury Employee Excess of Other Equity Retained Comprehensive Equity Holders Noncontrolling Total
Stock Stock Stock Benefit Trust Par Value Reserves Earnings (Loss) of PLDT Interests Equity
Balances as at January 1, 2019 (as previously stated) 510 1,093 (6,505 ) (854 ) 130,526 697 12,081 (25,190 ) 112,358 4,308 116,666
Effect of adoption of PFRS 16 (Note 2) — — — — — — (924 ) — (924 ) — (924 )
Balances as at January 1, 2019 (as restated) 510 1,093 (6,505 ) (854 ) 130,526 697 11,157 (25,190 ) 111,434 4,308 115,742
Treasury shares under employee benefit trust (Note 26) — — — 460 (130 ) — — — 330 — 330
Other equity reserves (Note 26) — — — — — (421 ) — — (421 ) — (421 )
Cash dividends (Note 20) — — — — — — (15,615 ) — (15,615 ) (15 ) (15,630 )
Total comprehensive income (loss): — — — — — — 22,521 (6,178 ) 16,343 261 16,604
Net income (Note 8) — — — — — — 22,521 — 22,521 265 22,786
Other comprehensive loss (Note 6) — — — — — — — (6,178 ) (6,178 ) (4 ) (6,182 )
Distribution charges on perpetual notes (Note 20) — — — — — — — — — (236 ) (236 )
Acquisition and dilution of noncontrolling interests — — — — (84 ) — — — (84 ) (15 ) (99 )
Balances as at December 31, 2019 510 1,093 (6,505 ) (394 ) 130,312 276 18,063 (31,368 ) 111,987 4,303 116,290

Balances as at January 1, 2018 (as previously stated) 510 1,093 (6,505 ) (940 ) 130,374 827 634 (19,151 ) 106,842 4,341 111,183
Effect of adoption of PFRS 9 (Note 2) — — — — — — 4,101 (4,627 ) (526 ) — (526 )
Effect of adoption of PFRS 15 (Note 2) — — — — — — 2,553 — 2,553 — 2,553
Balances as at January 1, 2018 (as restated) 510 1,093 (6,505 ) (940 ) 130,374 827 7,288 (23,778 ) 108,869 4,341 113,210
Treasury shares under employee benefit trust (Note 26) — — — 86 — — — — 86 — 86
Other equity reserves (Note 26) — — — — — (130 ) — — (130 ) — (130 )
Cash dividends (Note 20) — — — — — — (13,887 ) — (13,887 ) (15 ) (13,902 )
Total comprehensive income (loss): — — — — — — 18,916 (1,412 ) 17,504 62 17,566
Net income (Note 8) — — — — — — 18,916 — 18,916 57 18,973
Other comprehensive income (loss) (Note 6) — — — — — — — (1,412 ) (1,412 ) 5 (1,407 )
Distribution charges on perpetual notes (Note 20) — — — — — — (236 ) — (236 ) — (236 )
Acquisition and dilution of noncontrolling interests — — — — 152 — — — 152 (80 ) 72
Balances as at December 31, 2018 510 1,093 (6,505 ) (854 ) 130,526 697 12,081 (25,190 ) 112,358 4,308 116,666

Balances as at January 1, 2017 510 1,093 (6,505 ) — 130,488 — 3,483 (20,894 ) 108,175 362 108,537
Treasury shares under employee benefit trust (Note 26) — — — (940 ) — — — — (940 ) — (940 )
Other equity reserves (Note 26) — — — — — 827 — — 827 — 827
Cash dividends (Note 20) — — — — — — (16,479 ) — (16,479 ) (66 ) (16,545 )
Total comprehensive income: — — — — — — 13,807 1,743 15,550 102 15,652
Net income (Note 8) — — — — — — 13,371 — 13,371 95 13,466
Other comprehensive income (Note 6) — — — — — — 436 1,743 2,179 7 2,186
Perpetual notes (Note 20) — — — — — — — — — 4,165 4,165
Distribution charges on perpetual notes (Note 20) — — — — — — (177 ) — (177 ) — (177 )
Acquisition and dilution of noncontrolling interests — — — — (114 ) — — — (114 ) (222 ) (336 )
Balances as at December 31, 2017 510 1,093 (6,505 ) (940 ) 130,374 827 634 (19,151 ) 106,842 4,341 111,183

See accompanying Notes to Consolidated Financial Statements.

F-6
 CONSOLIDATED STATEMENTS OF CASH
FLOWS
For the Years Ended December 31, 2019, 2018 and 2017
(in million pesos)

2019 2018 2017

CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax 32,336 22,815 14,569
Adjustments for:
Depreciation and amortization (Notes 9 and 10)* 39,656 47,240 51,915
Interest on loans and other related items – net (Note 5) 7,275 6,783 7,014
Asset impairment (Note 5) 4,833 8,065 8,258
Equity share in net losses (earnings) of associates and joint ventures
(Notes 5 and 11) 1,535 87 (2,906 )
Accretion on lease liabilities (Notes 5 and 10) 1,061 — —
Pension benefit costs (Notes 5 and 26) 1,018 1,855 1,607
Amortization of intangible assets (Notes 5 and 15) 758 892 835
Incentive plan (Notes 5 and 26) 638 208 827
Losses (gains) on derivative financial instruments – net
(Notes 5 and 28) 284 (1,086 ) (533 )
Accretion on financial liabilities (Notes 5 and 21) 122 145 219
Losses (gains) on disposal of property and equipment (Note 9) 88 (12 ) 159
Impairment of investments (Note 11) 34 172 2,562
Foreign exchange losses (gains) – net (Notes 5 and 9) (424 ) 771 411
Interest income (Note 5) (1,745 ) (1,943 ) (1,412 )
Gains on disposal of investments in subsidiaries – net (Note 11) — (144 ) —
Gains on deconsolidation of subsidiary (Notes 5 and 11) — (12,054 ) —
Gains on disposal of investment property (Note 14) — — (80 )
Gains on disposal of investments in associates – net (Note 11) — — (6,512 )
Others 696 (1,076 ) (2,443 )
Operating income before changes in assets and liabilities 88,165 72,718 74,490
Decrease (increase) in:
Prepayments (28,898 ) (4,318 ) (212 )
Other financial and non-financial assets (198 ) — 162
Trade and other receivables (1,560 ) (12,175 ) (10,674 )
Inventories and supplies 12 26 (542 )
Contract assets 337 390 —
Increase (decrease) in:
Customers’ deposits 12 (250 ) 13
Pension and other employee benefits (7,965 ) (5,733 ) (5,841 )
Other noncurrent liabilities (1,559 ) (11 ) 38
Accounts payable 18,768 7,729 4,622
Accrued expenses and other current liabilities 4,375 5,184 (1,392 )
Net cash flows generated from operations 71,489 63,560 60,664
Income taxes paid (2,097 ) (2,444 ) (4,550 )
Net cash flows from operating activities 69,392 61,116 56,114
* For 2019, this includes the depreciation or amortization of right-of-use assets.
See accompanying Notes to Consolidated Financial Statements.
 CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
For the Years Ended December 31, 2019, 2018 and 2017 (in
million pesos)

2019 2018 2017

CASH FLOWS USED IN INVESTING ACTIVITIES
Interest received 1,723 1,115 1,217
Proceeds from:
Collection of notes receivable 1,771 11,707 2,001
Maturity of short-term investments 1,415 6,102 20,254
Disposal of financial assets at fair value through profit or loss
(Note 12) 1,023 11,643 —
Disposal of property and equipment (Note 9) 224 345 484
Disposal of investment properties (Note 14) 11 — 290
Disposal of investments in associates and joint ventures (Note 11) — 1,710 14,884
Redemption of investment in debt securities — 105 456
Disposal of investments available-for-sale — — 1,000
Dividends received (Note 11) — — 833
Payments for:
Acquisition of investments in associates and joint ventures (Note 11) (20 ) (111 ) (5,633 )
Acquisition of investments in subsidiaries – net of cash acquired (80 ) (2,814 ) (266 )
Purchase of short-term investments (572 ) (5,992 ) (18,424 )
Interest capitalized to property and equipment (Notes 5 and 9) (1,455 ) (1,524 ) (816 )
Purchase of property and equipment (Note 9) (88,246 ) (47,247 ) (36,616 )
Acquisition of intangible assets (Note 15) — (21 ) (137 )
Purchase of investments available-for-sale — — (76 )
Net additions to right-of-use assets (Note 10) (145 ) — —
Decrease (increase) in other financial and non-financial assets 35 (72 ) (511 )
Net cash flows used in investing activities (84,316 ) (25,054 ) (21,060 )
CASH FLOWS USED IN FINANCING ACTIVITIES
Proceeds from:
Availments of long-term debt (Notes 21 and 29) 37,500 20,500 26,255
Derivative financial instruments (Notes 28 and 29) — 886 218
Issuance of perpetual notes (Note 20) — — 4,165
Payments for:
Derivative financial instruments (Notes 28 and 29) (50 ) — —
Debt issuance costs (Notes 21 and 29) (195 ) (38 ) (153 )
Distribution charges on perpetual notes (Note 20) (236 ) (236 ) (177 )
Obligations under lease liabilities (Notes 10 and 29) (5,399 ) — —
Interest – net of capitalized portion (Notes 5, 21 and 29) (7,143 ) (6,614 ) (7,076 )
Cash dividends (Notes 20 and 29) (15,592 ) (13,928 ) (16,617 )
Long-term debt (Notes 21 and 29) (20,494 ) (18,740 ) (39,199 )
Long-term financing for capital expenditures (Note 29) — — (7,735 )
Decrease (increase) in treasury shares under employee benefit trust (4 ) 26 —
Net cash flows used in financing activities (11,613 ) (18,144 ) (40,319 )
NET EFFECT OF FOREIGN EXCHANGE RATE
CHANGES ON CASH AND CASH EQUIVALENTS (748 ) 831 (552 )
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (27,285 ) 18,749 (5,817 )
CASH AND CASH EQUIVALENTS AT BEGINNING
OF THE YEAR (Note 16) 51,654 32,905 38,722
CASH AND CASH EQUIVALENTS AT END OF THE YEAR
(Note 16) 24,369 51,654 32,905
See accompanying Notes to Consolidated Financial Statements.
 Globe PLDT
Net Income 22,283,757 22,786,000
Total Revenue 166,660,337 169,187,000
Net Sales Revenue 17,650,374 7,832,000
Cost of Goods Sold 18,554,814 13,429,000
Average Net Fixed Asset 201,781,905 319,218,000
Average Stockholders Equity 81,246,997 116,290,000
Average Number of Common 133,619,207 216,000,000
Shares Outstanding
Stock Price 1986.44 1165.59
Average Net Receivables 21,138,950 22,436,000
Average Inventory 572,350 12,000,000
Current Assets 61,739,472 75,577,000
Current Liabilities 84,577,181 204,448,000
Cash 8,298,092 24,369,000
Short Term Investment 19,508.11 314,000
Total Liabilities 223,043,740 408,737,000
Total Assets 304,290,737 525,027,000
Interest Expense 7,232,591 8,598,000
Income Tax Expense 10,543,619 77,598,000

RATIO ANALYSIS
Profitability Ratios
1. Net Profit Margin= Net Income / Total Revenue X 100
 Globe
22,283,757/166,660,337 X 100 = 13.37%
 PLDT
22,786,000/169,187,000 X 100 = 13.47%
2. Gross Profit Percentage= Net Sales Revenue – Cost of Goods Sold / Net Sales Revenue X
100
 Globe
17,650,374 – 18, 554, 814/ 17,650,374 X 100 = 5.12%
 PLDT
7,832,000- 13,429,000/ 7,832,000 X 100 = 71.46%
3. Asset Turnover= Total Revenue / Average Net Fixed Assets
 Globe
166,660,337/201,781,905 = 0.83
 PLDT
169,187,000/319,218,000 = 0.53
 4. Fixed Asset Turnover = Total Revenue / Average Net Fixed Assets
 Globe
166,660,337/ 201,781,905 = 0.83
 PLDT
169,187,000/ 319,218,000 = 0.53
5. Return on Equity (ROE) = Net Income / Average Stockholders’ Equity X 100
 Globe
22,283,757 / 81,246,997 X 100 = 27.42%
 PLDT
22,786,000 / 116, 290, 000 X 100 = 19.59%
6. Earnings per Share (EPS)= Net Income / Average Number of Common Shares
Outstanding
 Globe
22,283,757 / 133,619,207 = 0.17
 PLDT
22,786,000 / 216,000,000 = 0.11
7. Price/Earnings Ratio= Stock Price / EPS
 Globe
1986.44/0.17 = 11,684.94
 PLDT
1165.59 / 0.11 = 10,596.27

Liquidity Ratios
8. Receivables Turnover= Net Sales Revenue / Average Net Receivables
 Globe
17,650,374 / 21,138,950 = 0.83
 PLDT
7,832,000 / 22,436,000 = 0.35

Days to Collect = 365 / Receivables Turnover Ratio

 Globe
365 / 0.83 = 439.76
 PLDT
365 / 0.35 = 1,042.86
9. Inventory Turnover= Cost of Goods Sold / Average Inventory
 Globe
18,554,814 / 572,350 = 32.42
  PLDT
13,429,000 / 12,000,000 = 1.12
Days to Sell= 365 / Inventory Turnover Ratio

 Globe
365 / 32.42 = 11.26
 PLDT
365 / 1.12 = 325.89
10. Current Ratio= Current Assets / Current Liabilities
 Globe
61,739,472 / 84,577,181 = 0.73
 PLDT
75,577,000 / 204,448,000 = 0.37
11. Quick Ratio= Cash +Short term Investments + Accounts Receivable, Net / Current
Liabilities
 Globe
8,298,092 + 19,508.11 +21,138,950 / 84,577,181 = 0.35
 PLDT
24,369,000 +314,000 + 22,436,000 / 204,448,000 = 0.23
Solvency Ratios
12. Debt to Assets= Total Liabilities / Total Assets
 Globe
223,043,740 / 304,290,737 = 0.73
 PLDT
408,737,000 / 525,027, 000 = 0.78
13. Times Interest Earned= Net Income + Interest Expense +Income Tax Expense / Interest
Expense
 Globe
22,283,757 + 7,232,591 + 10,543,619 / 7,232,591 = 5.54
 PLDT
22,786,000 + 8,598,000 + 77,598,000 / 8,598,000 = 12.68
Globe PLDT
Profitability Ratio
Net Profit Margin 13.37% 13.47%
Gross Profit Percentage 5.12% 71.46%
Asset Turnover 0.83 0.53
Fixed Asset Turnover 0.83 0.53
Return on Equity (ROE) 27.42% 19.59%
Earnings per Share (EPS) 0.17 0.11
Price/ Earnings Ratio 11,684.94 10,596.27
Liquidity Ratio
Receivables Turnover 0.83 0.35
Days to Collect 439.76 1042.86
Inventory Turnover 32.42 1.12
Days to Sell 11.26 325.89
Current Ratio 0.73 0.37
Quick Ratio 0.35 0.23
Solvency Ratio
Debt to Assets 0.73 0.78
Times Interest Earned 5.54 12.68

1. Net Profit Margin- Net profit margin measures how much net income is generated
as a percentage of revenues received. Net profit margin helps investors assess if
a company's management is generating enough profit from its sales. PLDT, Inc.
has higher NPM than Globe Telecom Inc.
2. Gross Profit Percentage- indicates how much profit was made on each peso of
sales after deducting the Cost of Goods Sold. PLDT, Inc, has a healthy Gross
Profit margin with 71.46%
3. Asset Turnover- Based on Asset Turnover Globe Telecoms, Inc. operates more
efficiently than PLDT, Inc. The ratio measures the efficiency of how well a
company uses assets to produce sales. A higher ratio is favorable, as it indicates
a more efficient use of assets. Conversely, a lower ratio indicates the company is
not using its assets as efficiently. This might be due to excess production
capacity, poor collection methods, or poor inventory management.
4. Fixed Asset Turnover indicates how much revenue the company generates in
sales for each peso invested in fixed assets, Globe, Inc. has higher Fixed Asset
Turnover Ratio.
5. Return on equity (ROE) is a measurement of how effectively a business uses
equity or the money contributed by its stockholders and cumulative retained
profits to produce income. In other words, ROE indicates a company’s ability to
turn equity capital into net profit. Globe Telecoms Inc. has higher Return on
 Equity (ROE) we might assume that Globe Telecoms Inc. management team is
better than at utilizing company equity to generate profits.
6. Earnings per Share is a figure describing a public company's profit per
outstanding share of stock. Globe Telecoms has higher Earnings per Share
indicates that the company is more profitable and has more profits to distribute to
shareholders that PLDT, Inc.
7. Price/Earning Ratio- companies that grow faster than average typically have
higher P/Es, such as technology companies. A higher P/E ratio shows that
investors are willing to pay a higher share price today because of growth
expectations in the future. Globe Telecoms has higher price/earning Ratio than
PLDT, Inc.
8. Receivables Turnover- The receivables turnover ratio is an accounting measure
used to quantify a company's effectiveness in collecting its accounts receivable,
or the money owed by customers or clients. Globe Telecomm, Inc. has higher
Receivables Turnover, a high receivables turnover ratio can indicate that a
company’s collection of accounts receivable is efficient and the company has a
high proportion of quality customers that pay their debts quickly.

Days to Collect is lower and is favorable than the other company.

9. Inventory Turnover- Globe Telecom, Inc. has higher inventory turnover, a higher
ratio tends to point to strong sales. With shorter days to sell which is more
favorable than PLDT, Inc.
10. The current ratio is a liquidity ratio that measures a company's ability to pay
short-term obligations or those due within one year. Both has current ratio lower
than 1.00 but Globe Telecom is higher than PLDT, Inc. A ratio under 1.00
indicates that the company’s debts due in a year or less are greater than its
assets—cash or other short-term assets expected to be converted to cash within
a year or less.
11. The quick ratio represents the extent to which a business can pay its short-term
obligations with its most liquid assets. Globe telecom has higher quick ratio than
PLDT, Inc. The higher the ratio result, the better a company's liquidity and
financial health.
12. Debt to Assets ratio- If the debt-to-assets ratio is greater than one, a business
has more debt than assets. If the ratio is less than one, the business has more
assets than debt. Both has debt to asset ratio lower than 1. Globe Telecom has
lower debt to asset ratio than PLDT, Inc.
13. Times interest earned ratio measures a company's ability to continue to service
its debt. A high ratio means that a company is able to meet its interest obligations
because earnings are significantly greater than annual interest obligations.
PLDT, Inc. has higher times interest earned ratio than Globe Telecom, Inc.
Based on the data above we can say that PLDT, Inc. is more profitable than Globe
Telecom, Inc. but Globe Telecom Inc. has higher Return on Equity (ROE). It also shows
that Globe Telecom, Inc. operates more efficiently than PLDT, Inc. based on the liquidity
ratio. It indicates that the company is in good financial health and is less likely to face
financial hardships. If I were the investor, basing on the data above I will choose to
invest to Globe Telecom, Inc.