Final Defense Script

As for the statement of the problem,

Us, researchers sought to answer the following questions.

1. How may the profitability of San Miguel Corporation, our respondent,  be assessed in terms of the following:

1. net margin;
2. return on equity;
3. return on assets;
4. earnings per share?

1. How may the financial leverage of San Miguel Corporation be assessed in terms of:

1. debt to equity;
2. debt to asset;
3. times interest earned?

1. Is there a significant relationship between financial leverage and profitability of San Miguel Corporation?
2. What input may be proposed to enhance the profitability through financial leverage?

The ratios we considered as variables are based on the books of  needles, powers, crosson..and the accounting book of roque. This will be further discussed in our theoretical framework.

Also to answer the mentioned questions, we used several statistical methods. Again, the discussion will be provided in our research methodology.

So upon knowing the relationship, we proposed some inputs which can help San Miguel Corporation, our respondent, to enhance their profitability, which is the dependent variable of the study, through financial leverage, the independent variable.

So these are the results. As what have been discussed earlier, methods are used to answer the questions provided in the statement of the problem. For the questions 1 and 2, trend analysis was used.

So here are the trend analysis of the profitability ratios. The quarters of 2013 and 2014 exhibited the most active movement of net margin. So on the graph, from a minimal decrease from the last quarter of 2012, to the first quarter of 2013, -- the next quarter showed a sudden decreases which resulted to a net margin below 0%. This happened specifically due to the corporation’s investment, particularly in purchasing interest in Northern Cement Corporation. So there are several factors for the movement of the ratio.

 –the revenue contribution of the corporation’s subsidiaries

–the payment of bonds and other debts.

Also, it can be noticed that 2nd quarter of 2016 reported the highest net margin during this study’s selected years of operation. A 10.72% net margin. This is because of the sale of 100% ownership interest of SMC to Vega Telecom.

Return on

As for the ROE, again there is a fluctuating movement. The drastic fall in 2013 is due to the consolidated expenses of SMC’s subsidiaries. The implementation of the new excise tax at the astart of the year affected the beer and liquor businesses negatively.

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