Hey guys! Ever wondered how to figure out if a company is doing well financially? Well, financial ratio analysis is the way to go! It's like having a secret decoder ring for understanding a company's performance. In this guide, we're going to break down financial ratio analysis in Tagalog, so it's super easy to grasp. Tara na, let's dive in!

Ano ang Financial Ratio Analysis? (What is Financial Ratio Analysis?)

Okay, so financial ratio analysis, or pagsusuri ng financial ratio in Tagalog, is all about taking information from a company's financial statements—like the balance sheet, income statement, and cash flow statement—and turning it into ratios. These ratios help us see how well a company is managing its finances. Think of it like this: if you’re cooking, you need the right ratios of ingredients to make a delicious dish, right? Same thing with a company's finances! We use these ratios to evaluate different aspects of a company's performance, such as its liquidity (can it pay its short-term debts?), profitability (is it making money?), efficiency (how well is it using its assets?), and solvency (can it pay its long-term debts?).

Bakit importante ito? (Why is it important?) Well, financial ratio analysis is super important for a bunch of reasons. Investors use it to decide whether to invest in a company. Lenders use it to assess whether to give a company a loan. Managers use it to identify areas where the company can improve. And even employees can use it to understand the financial health of their company. So, whether you’re an investor, a lender, a manager, or just curious, understanding financial ratio analysis can give you a serious edge.

Ngayon, let's talk about the specific types of ratios we'll be looking at. We've got liquidity ratios, which tell us about a company's ability to cover its short-term liabilities. Then there are profitability ratios, which show us how well a company is generating profit. Efficiency ratios help us understand how effectively a company is using its assets. And finally, solvency ratios give us insight into a company's long-term financial stability. Each type of ratio provides a different piece of the puzzle, and when you put them all together, you get a pretty clear picture of the company's overall financial health.

Kaya, stay tuned as we break down each of these types of ratios, step by step, in Tagalog. We'll give you examples, formulas, and everything you need to start analyzing financial statements like a pro. Ready to get started? Let's go!

Liquidity Ratios (Mga Ratio ng Pagkatubig)

Liquidity ratios, or mga ratio ng pagkatubig in Tagalog, are all about measuring a company’s ability to meet its short-term obligations. Basically, can the company pay its bills on time? These ratios are crucial because if a company can't pay its short-term debts, it could face serious problems, like bankruptcy. So, understanding liquidity ratios is essential for assessing a company's financial health.

Isa sa pinaka-importanteng liquidity ratios ay ang current ratio. (One of the most important liquidity ratios is the current ratio.) The current ratio is calculated by dividing current assets by current liabilities. Current assets are things like cash, accounts receivable, and inventory—assets that can be converted into cash within a year. Current liabilities are obligations that are due within a year, such as accounts payable, short-term loans, and accrued expenses. A current ratio of 1 or higher generally indicates that a company has enough current assets to cover its current liabilities. However, a very high current ratio might suggest that the company isn't using its assets efficiently. For example, it might have too much cash sitting around instead of investing it in profitable opportunities.

Ang isa pang mahalagang liquidity ratio ay ang quick ratio, o acid-test ratio. (Another important liquidity ratio is the quick ratio, or acid-test ratio.) The quick ratio is similar to the current ratio, but it excludes inventory from current assets. Why? Because inventory isn't always easy to convert into cash quickly. In some industries, it can take a long time to sell inventory, so the quick ratio gives a more conservative measure of a company's liquidity. The quick ratio is calculated by dividing (current assets - inventory) by current liabilities. A quick ratio of 1 or higher generally indicates good liquidity, but again, it depends on the industry.

Para mas maintindihan, tingnan natin ang isang halimbawa. (To better understand, let's look at an example.) Let's say Company A has current assets of ₱500,000 and current liabilities of ₱250,000. Its current ratio would be ₱500,000 / ₱250,000 = 2. This means that Company A has twice as many current assets as current liabilities, which suggests good liquidity. Now, let's say Company A also has inventory of ₱100,000. Its quick ratio would be (₱500,000 - ₱100,000) / ₱250,000 = 1.6. This is still a healthy liquidity position.

Mahalaga rin na ikumpara ang mga liquidity ratios ng isang kumpanya sa mga liquidity ratios ng ibang kumpanya sa parehong industriya. (It's also important to compare a company's liquidity ratios to those of other companies in the same industry.) This can give you a better sense of whether a company's liquidity is above average, below average, or about average. Remember, liquidity ratios are just one piece of the puzzle, but they're a crucial piece when it comes to assessing a company's financial health. So, make sure you pay attention to these ratios when you're analyzing financial statements!

Profitability Ratios (Mga Ratio ng Kakayahang Kumita)

Profitability ratios, or mga ratio ng kakayahang kumita in Tagalog, measure how well a company is generating profit from its revenues and assets. These ratios are super important because they tell us whether a company is actually making money and how efficiently it's doing so. Kung walang kita, walang saysay ang negosyo, di ba? (If there's no profit, the business is useless, right?) So, let's dive into some key profitability ratios.

Ang una ay ang gross profit margin. (The first is the gross profit margin.) This ratio measures the percentage of revenue that remains after deducting the cost of goods sold (COGS). COGS includes the direct costs of producing goods or services, such as raw materials and labor. The gross profit margin is calculated by dividing gross profit (revenue - COGS) by revenue. A higher gross profit margin indicates that a company is efficient at managing its production costs. For example, if a company has a high gross profit margin, it means it's able to sell its products or services at a price that's significantly higher than the cost of producing them.

Sunod ay ang operating profit margin. (Next is the operating profit margin.) This ratio measures the percentage of revenue that remains after deducting both COGS and operating expenses. Operating expenses include things like salaries, rent, and marketing expenses. The operating profit margin is calculated by dividing operating profit (gross profit - operating expenses) by revenue. This ratio gives us a sense of how well a company is managing its core business operations. A higher operating profit margin indicates that a company is efficient at controlling its operating costs.

Tapos, meron tayong net profit margin. (Then, we have the net profit margin.) This ratio measures the percentage of revenue that remains after deducting all expenses, including COGS, operating expenses, interest, and taxes. The net profit margin is calculated by dividing net profit (profit after all expenses) by revenue. This is the bottom-line profitability ratio because it shows how much profit a company actually keeps after paying all its bills. A higher net profit margin is obviously better because it means the company is more profitable overall.

Isa pang importanteng profitability ratio ay ang return on assets (ROA). (Another important profitability ratio is the return on assets (ROA).) ROA measures how efficiently a company is using its assets to generate profit. It's calculated by dividing net profit by total assets. A higher ROA indicates that a company is generating more profit for every dollar of assets it owns. This is a good indicator of how well a company is managing its resources.

Finally, we have the return on equity (ROE). This ratio measures how efficiently a company is using its shareholders' equity to generate profit. It's calculated by dividing net profit by shareholders' equity. A higher ROE indicates that a company is generating more profit for every dollar of equity invested by shareholders. This is a key metric for investors because it shows how well a company is rewarding its shareholders.

Para maintindihan nang mas mabuti, tingnan natin ang isang halimbawa. (To understand better, let's look at an example.) Let's say Company B has revenue of ₱1,000,000, COGS of ₱600,000, operating expenses of ₱200,000, and net profit of ₱100,000. Its gross profit margin would be (₱1,000,000 - ₱600,000) / ₱1,000,000 = 40%. Its operating profit margin would be (₱1,000,000 - ₱600,000 - ₱200,000) / ₱1,000,000 = 20%. And its net profit margin would be ₱100,000 / ₱1,000,000 = 10%. These ratios give us a good overview of Company B's profitability.

Efficiency Ratios (Mga Ratio ng Kahusayan)

Efficiency ratios, or mga ratio ng kahusayan in Tagalog, measure how well a company is using its assets and liabilities to generate sales. These ratios are important because they tell us whether a company is managing its resources effectively. Kung maganda ang paggamit ng assets, mas malaki ang kita, di ba? (If the assets are used well, the income is bigger, right?) Let's explore some key efficiency ratios.

Una, meron tayong asset turnover ratio. (First, we have the asset turnover ratio.) This ratio measures how much revenue a company generates for every dollar of assets it owns. It's calculated by dividing revenue by total assets. A higher asset turnover ratio indicates that a company is using its assets efficiently to generate sales. For example, if a company has a high asset turnover ratio, it means it's able to generate a lot of revenue with a relatively small amount of assets.

Sunod, tignan natin ang inventory turnover ratio. (Next, let's look at the inventory turnover ratio.) This ratio measures how many times a company sells its inventory during a period. It's calculated by dividing the cost of goods sold (COGS) by average inventory. A higher inventory turnover ratio indicates that a company is managing its inventory efficiently. It means the company is selling its inventory quickly, which reduces the risk of obsolescence and storage costs.

Meron din tayong accounts receivable turnover ratio. (We also have the accounts receivable turnover ratio.) This ratio measures how quickly a company collects its accounts receivable (money owed by customers). It's calculated by dividing revenue by average accounts receivable. A higher accounts receivable turnover ratio indicates that a company is efficient at collecting its receivables. It means the company is getting paid quickly by its customers, which improves its cash flow.

Isa pang mahalagang efficiency ratio ay ang accounts payable turnover ratio. (Another important efficiency ratio is the accounts payable turnover ratio.) This ratio measures how quickly a company pays its suppliers. It's calculated by dividing COGS by average accounts payable. A higher accounts payable turnover ratio indicates that a company is paying its suppliers quickly. While it's important to maintain good relationships with suppliers, paying too quickly might mean the company isn't taking full advantage of available payment terms.

Para mas maintindihan natin, tingnan natin ang isang halimbawa. (To understand better, let's look at an example.) Let's say Company C has revenue of ₱2,000,000 and total assets of ₱1,000,000. Its asset turnover ratio would be ₱2,000,000 / ₱1,000,000 = 2. This means that Company C generates ₱2 of revenue for every ₱1 of assets it owns, indicating good asset utilization.

Solvency Ratios (Mga Ratio ng Katatagan)

Solvency ratios, or mga ratio ng katatagan in Tagalog, measure a company’s ability to meet its long-term obligations. These ratios are crucial because they tell us whether a company can survive in the long run. Kung kaya bayaran ang mga utang sa mahabang panahon, stable ang negosyo, di ba? (If the debts can be paid in the long term, the business is stable, right?) Let's explore some key solvency ratios.

Ang debt-to-equity ratio ang isa sa pinaka-importante. (The debt-to-equity ratio is one of the most important.) This ratio measures the proportion of a company’s financing that comes from debt versus equity. It's calculated by dividing total debt by shareholders' equity. A higher debt-to-equity ratio indicates that a company is using more debt to finance its operations, which can increase its financial risk. However, using debt can also increase returns if the company is able to generate more profit than the cost of the debt.

Sunod, meron tayong debt-to-asset ratio. (Next, we have the debt-to-asset ratio.) This ratio measures the proportion of a company’s assets that are financed by debt. It's calculated by dividing total debt by total assets. A higher debt-to-asset ratio indicates that a larger portion of a company’s assets is financed by debt, which also increases its financial risk.

Isa pang mahalagang solvency ratio ay ang interest coverage ratio. (Another important solvency ratio is the interest coverage ratio.) This ratio measures a company’s ability to pay its interest expenses. It's calculated by dividing earnings before interest and taxes (EBIT) by interest expense. A higher interest coverage ratio indicates that a company has plenty of earnings to cover its interest payments, which reduces the risk of default.

Para mas maintindihan, tingnan natin ang isang halimbawa. (To understand better, let's look at an example.) Let's say Company D has total debt of ₱500,000 and shareholders' equity of ₱1,000,000. Its debt-to-equity ratio would be ₱500,000 / ₱1,000,000 = 0.5. This means that Company D has ₱0.50 of debt for every ₱1 of equity.

Conclusion (Konklusyon)

So there you have it! A breakdown of financial ratio analysis in Tagalog. Sana nakatulong ito para mas maintindihan ninyo ang financial health ng isang kumpanya. (I hope this helped you better understand the financial health of a company.) Remember, financial ratio analysis is a powerful tool that can help you make informed decisions as an investor, lender, manager, or employee. Keep practicing and you'll be analyzing financial statements like a pro in no time! Good luck, mga kaibigan!