Investment Management of Jollibee

COMPARATIVE HISTORICAL RATIOS

| Historical Figures forJollibee Foods Corporation |

| 2010 | 2011 |

Liquidity Measures | Current Ratio | 0.991 | 1.096 |

| Working Capital | -121,348,126 | 1,156,570,779 |

| Quick Acid Test Ratio | 0.7499 | 0.747 |

Activity Measures | Accounts Receivable Turnover | 24.06 | 24.81 |

| Inventory Turnover | 23.66 | 20.72 |

| Fixed Asset Turnover | 5.76 | 5.61 |

| Total Asset Turnover | 1.497 | 1.523 |

Leverage Measures | Debt – Equity Ratio | 0.135 | 0.233 |

| Debt Ratio | 0.0709 | 0.1213 |

| Times Interest Earned | 21.67 | 14.96 |

Profitability Measures | Gross Profit Margin | 0.200 | 0.188 |

| Net Profit Margin | 0.064 | 0.055 |

| Return on Equity | 0.182 | 0.161 |

| Return on Asset | 0.095 | 0.084 |

Common Stock Measures | Earnings per share | ₱3.118 | ₱3.138 |

| Dividend per share | ₱2.470 | ₱1.152 |

| Book Value per share | 19.47 | 17.08 |

Interpretation:

Current ratio

Jollibee’s current ratio during 2010 is below 1, meaning Jollibee’s short-term liabilities exceed their short-term assets within this year. Jollibee’s current ratio during 2011 is a fairly good number because it is above 1, meaning Jollibee’s short-term assets exceed their short-term liabilities within this year

Working Capital

Jollibee’s working capital during 2010 is negative. Meaning, they are unable to meet its current obligations. In order for them to improve this number, they should examine their inventory management practices; a backup of goods and the resulting loss in sales can take a toll on their business’s cash resources. Jollibee’s working capital during 2011 is a pretty good year. Since it is positive and it exceeded 125,000,000, it is indeed substantial.

Quick Acid Test Ratio

As you can see, the Quick acid test ratio of Jollibee in 2010-2011 declined from 0.7499 to 0.747, meaning they are investing too much capital in inventory or they may have taken on too much short-term debt....