Fs Analysis on Rfm

Financial Statement Analysis on RFM Corporation and Subsidiaries for 2005-2009

RFM Corporation is one of the leading brands in the Food, Beverage and Tobacco industry. Aside from its food products, the company has also ventured into non-food business enterprises such as financial services and investment holdings. This study was conducted to review the said company’s performance for 2005-2009. Taking a stakeholder’s point of view, figures from the financial statements were utilized to derive ratios such as Return on Equity, Return on Assets and Current Ratio. These ratios are expected to reveal the behavior exhibited by the company in the span of five (5) fiscal years. These measurements are also used to evaluate trends and even make forecasts.

RFM’s group has continually showed a moderate to good figure of Stockholder’s return. There has not been sharp drops or rises among the five years analyzed. It seems that the company has been keeping its stockholders satisfied. A problem arises with earning per share, though. Its fluctuating nature may not be too attractive to potential investors. Managers should monitor the variables affecting this success marker. Stockholders are primarily concerned with the company’s profitability. Specifically, they see return on equity as the most important because it indicates exactly how much goes back to the stockholder for his investments in the company. Earnings per share and its growth rate are also important, especially for prospective investors as these measurements point out the portion of the net income that belongs to them.

Fig.1 Net Income is at its highest in 2009

Fig.2 Level of Cash has always been at least twice as Debt

Fig.3 ROE increased from 5% in 2005 to 7% in 2009

Fig.2 EPS experienced a -15% growth between 2005 and 2006

Year Ended December 31, 2006 vs. 2005

The year 2006’s net income of P202 million incurred a 5% decrease in relation to the previous year. Although its’ revenues was 2% higher, its...