Financial Analysis
Financial Ratio Analysis
Splash
* Profitability
For the year 2010, Splash Corporation experienced a significant increase in its Operating Profit Margin, Return on Sales, Return on Equity, and Return on Assets because of High Net Income during the year. It is brought about by the large amount of Sales from Direct Selling business and better sales-mix. For the year 2011, the Company’s profitability has declined because of the increase in the cost of raw materials and increased spending on advertising and promotions. * Leverage
The Company’s leverage for the year 2010 improved because there was just a lesser increase in liabilities than the decrease in assets. But in 2011, there is a decline in the leverage because the company has capital expenditures on plant facility expansion and IT application and infrastructure enhancements during this year. * Asset Utilization
For the year 2010 and 2011, the company became more efficient in managing its assets due to its significant improvement in the selling of its inventories and collection of receivables. * Liquidity
The company’s liquidity for the two years has a declining trend due to the decrease in assets and increase in liabilities. This is because the company is financing the on-going expansion of the business.
Conclusion
The Splash Group is composed of wholly-owned Philippine companies with business interests in personal care manufacturing and marketing, international distribution, and recently, health and wellness products development and marketing. Splash carries the brands Extraderm, Maxi-Peel, and Skin White. It also carries one of the fastest growing skin care brands in the Philippines – Biolink. Splash has grown into a multi-billion peso company, with two of its core products, exfoliant and skin whiteners, dominating their segments with market shares of 86% and 41%, respectively, based on an AC Nielsen Philippine Retail Index Report dated June 2007. The Company is ranked sixth in the
Splash
* Profitability
For the year 2010, Splash Corporation experienced a significant increase in its Operating Profit Margin, Return on Sales, Return on Equity, and Return on Assets because of High Net Income during the year. It is brought about by the large amount of Sales from Direct Selling business and better sales-mix. For the year 2011, the Company’s profitability has declined because of the increase in the cost of raw materials and increased spending on advertising and promotions. * Leverage
The Company’s leverage for the year 2010 improved because there was just a lesser increase in liabilities than the decrease in assets. But in 2011, there is a decline in the leverage because the company has capital expenditures on plant facility expansion and IT application and infrastructure enhancements during this year. * Asset Utilization
For the year 2010 and 2011, the company became more efficient in managing its assets due to its significant improvement in the selling of its inventories and collection of receivables. * Liquidity
The company’s liquidity for the two years has a declining trend due to the decrease in assets and increase in liabilities. This is because the company is financing the on-going expansion of the business.
Conclusion
The Splash Group is composed of wholly-owned Philippine companies with business interests in personal care manufacturing and marketing, international distribution, and recently, health and wellness products development and marketing. Splash carries the brands Extraderm, Maxi-Peel, and Skin White. It also carries one of the fastest growing skin care brands in the Philippines – Biolink. Splash has grown into a multi-billion peso company, with two of its core products, exfoliant and skin whiteners, dominating their segments with market shares of 86% and 41%, respectively, based on an AC Nielsen Philippine Retail Index Report dated June 2007. The Company is ranked sixth in the