Most financial statement analyses focus on firms belonging to industries
that either contribute significantly to economic figures or posit in a highly
competitive business environment. Whatever
the motivation may be, financial statement
analysis should be made available to all industries for reasons of comparability and benchmarking. So much so to industries that silently propel economic development and growth, which the
media subsector is. This research paper aims to analyze the financial
statements of two publicly listed companies in the Securities and Exchange Commission of the Philippines in the media subsector’s financial statements for the years 2016-2020 using profitability ratios, such as net profit margin return
on total assets, return on equity, and basic earnings power ratio.The research employed a quantitative research design that focused on the comparative analysis of the financial statements of the two companies. The data were lifted from the
published financial statements of two companies in media subsector. In the analysis of data, mean and standard
deviations which were presented using tables and graphs were used to describe the
profitability ratios of the two companies. Further analysis was performed using independent t-test to examine
significant differences between the profitability ratios of the two companies
with the aid of Statistical Package for Social Sciences (SPSS) version 25.
References
[1]
Bayer, N. (2016). Corporate Finance: Theory and Practice. Cengage Learning.
[2]
Bojare, K., & Romanova, I. (2017). The Factors Affecting the Profitability of Banks: The Case of Latvia. International Journal of Economics and Business Administration, 5, 78-95. https://doi.org/10.35808/ijeba/143
[3]
Branch, B. (2014). Research and Development Activity and Profitability: A Distributed Lag Analysis. Journal of Political Economy, 82, 999-1011. http://www.jstor.org/stable/1879180 https://doi.org/10.1086/260252
[4]
Brigham, E., & Houston, J. (2019). Fundamentals of Financial Management. Cengage Learning.
[5]
Crisues, J. (2019). Contemporary Financial Management. Cengage Learning.
[6]
Drake, H. W. (2019). Connected Strategy, Building Continuous Customer Relationships for Competitive Advantage. Harvard Business Review Press.
[7]
Fidanoski, F., Choudhry, M., Davidovic, M., & Sergi, B. S. (2018). What Does Affect Profitability of Banks in Croatia? Competitiveness Review, 28, 338-367. https://doi.org/10.1108/CR-09-2016-0058
[8]
Garcia, M. T. M., & Guerreiro, J. P. S. M. (2016). Internal and External Determinants of Banks’ Profitability: The Portuguese Case. Journal of Economic Studies, 43, 90-107. https://doi.org/10.1108/JES-09-2014-0166
[9]
Haar, J. (2019). A Comparative Analysis of the Profitability Performance of the Largest U.S., European and Japanese Multinational Enterprises. Management International Review, 29, 5-18.
[10]
Hall, C. D. (2019). Financial Statements Demystified. Allen & Unwin.
[11]
Hall, J. (2020). Essentials of Financial Management. Cengage.
[12]
James, J. (2017). International Financial Management. McGraw-Hill Education.
[13]
Kartikasari, D. (2016). The Effect of Leverage and Firm Size to Profitability of Public Manufacturing Companies in Indonesia. International Journal of Economics and Financial Issues, 6, 409-413
[14]
Koradia, V. C. (2013). Profitability Analysis—A Study of Selected Oil Companies in India. Indian Journal of Applied Research, 3, 8-12.
[15]
Lopez, E. (2018). Crystallizing the Strategic Business Landscape. Wiley and Sons.
[16]
Luo, X. M. (2003). Evaluating the Profitability and Marketability Efficiency of Large Banks: An Application of Data Envelopment Analysis. Journal of Business Research, 56, 627-635. https://doi.org/10.1016/S0148-2963(01)00293-4
[17]
Madura, J. (2018). International Financial Management. Cengage Learning.
[18]
Millan, C. (2020). Conceptual Framework for Accounting Standards. NCPAR Publishing
[19]
Mulhern, F. (2000). Customer Profitability Analysis: Measurement, Concentration, and Research Directions. Journal of Interactive Marketing, 13, 25-40. https://doi.org/10.1002/(SICI)1520-6653(199924)13:1<25::AID-DIR3>3.0.CO;2-L
[20]
Ortiz, J. (2018). Mergers and Acquisitions Basics: The Key Steps of Acquisitions, Divestitures, and Investments. John Wiley & Sons.
[21]
Pacisto, R. (2019). Contemporary Financial Management. Cengage Learning.
[22]
Perreault, E. J. (2019). Essentials of Marketing: A Marketing Strategy Planning Approach. McGraw-Hill Education.
[23]
Pickvance, N. (2021). The 30 Most Useful Models for Strategic Decisions. Cambridge University Press.
