Date of Publication
7-2023
Document Type
Master's Thesis
Degree Name
Master of Science in Accountancy
Subject Categories
Accounting
College
Ramon V. Del Rosario College of Business
Department/Unit
Accountancy
Thesis Advisor
Cynthia P. Cudia
Defense Panel Chair
Rodiel C. Ferrer
Defense Panel Member
Aristotle Manuel D. Go
Kenneth Michael A. De Castro
Abstract/Summary
In late 2019 and into 2020, the world experienced the spread of an infectious disease caused by the SARS-CoV-2 virus – the coronavirus disease (COVID-19). The effect of the COVID-19 pandemic is far-reaching – from health concerns to volatility in household consumption, business investments, and international trade. The financial position and performance of various companies did not escape the effect of COVID-19 as the virus affected the financial statements. As an important offshoot of financial statement analysis, the ratio analysis is also affected. Given this backdrop, this paper aimed to assess if there is a significant difference on the average key profitability ratios (gross profit margin, net profit margin, return on assets, return on common equity, and earnings per share) among all Philippine publicly-listed companies (PLCs) before COVID-19 (2015 to 2019) and during COVID-19 (2020 and 2021). While the results vary based on key profitability ratio, there was a significant decrease in the following ratios: average gross profit margin, average return on asset, and average return on equity. However, there was no significant change in the net profit margin and earnings per share. The results also showed that if a PLC is classified as most affected based on profitability, it may also have an effect on the other key financial ratios. However, if a PLC is classified as least affected, it may be concluded that there is also no significant change in the average other ratios during (2020 to 2021) COVID-19 compared with the average other ratios before (2015 to 2019) COVID-19. Finally, although most PLCs were affected by the COVID-19 pandemic, there were also varying degrees of adaptability and creativity. Some were able to bounce back in 2021 while others continued to struggle.
Abstract Format
html
Language
English
Format
Electronic
Keywords
Financial statements; Stock exchanges—Philippines
Recommended Citation
Panopio, E. L. (2023). Key financial ratios of publicly-listed companies in the Philippines before and during COVID-19: An empirical study covering the years 2015-2021. Retrieved from https://animorepository.dlsu.edu.ph/etdm_acc/13
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Embargo Period
8-2-2024
