A Five-year strategic financial plan for Team Nery's Host Entity

Executive Summary This study is an analysis of the financial and performance of the entity for five years. This will provide an evaluation, computation, and analysis on the liquidity, stability, profitability, and efficiency among other financial performances of the entity using the Audited Financial Statements from years 2017 to 2021. The host entity subject to this study is the distribution company that was established on January 24, 1990, by Mr. Glenn Ramon Gorostiza. It sells 3M Medical and Sterilization Products to nearby hospitals. The entity was appointed to distribute 3M Cleaning and Workplace Safety Products in food manufacturing companies and food service industry establishments all over the Luzon region and became distributor of Kimberly Clark Philippines in Metro Manila and South Luzon. This report displayed that the entity has inefficient management of its current assets, specifically having a high level of inventory, and limited means of utilizing its cash. It was found that the entity in the areas of vertical analysis had an unfavorable liquidity ratio for the last five years in operations. After a thorough analysis and assessment of the entity's performance by utilizing its Audited Financial Statements from the Securities and Exchange Commission (SEC), the computation of financial ratios paved the way for a clear view of the overall operations of the entity. To hinder and improve the discovered problem, it was recommended for the entity the engagement in public bidding for food safety and equipment in public hospitals to be undertaken. Herewith, this will manage the current assets of the entity by allocating its high level of inventory to government hospitals. Above all this, the established alternative course of action would improve the current asset management of the entity, where it would be able to cover its high level of inventory.

Executive Summary This study is an analysis of the financial and performance of the entity for five years. This will provide an evaluation, computation, and analysis on the liquidity, stability, profitability, and efficiency among other financial performances of the entity using the Audited Financial Statements from years 2017 to 2021. The host entity subject to this study is the distribution company that was established on January 24, 1990, by Mr. Glenn Ramon Gorostiza. It sells 3M Medical and Sterilization Products to nearby hospitals. The entity was appointed to distribute 3M Cleaning and Workplace Safety Products in food manufacturing companies and food service industry establishments all over the Luzon region and became distributor of Kimberly Clark Philippines in Metro Manila and South Luzon. This report displayed that the entity has inefficient management of its current assets, specifically having a high level of inventory, and limited means of utilizing its cash. It was found that the entity in the areas of vertical analysis had an unfavorable liquidity ratio for the last five years in operations. After a thorough analysis and assessment of the entity's performance by utilizing its Audited Financial Statements from the Securities and Exchange Commission (SEC), the computation of financial ratios paved the way for a clear view of the overall operations of the entity. To hinder and improve the discovered problem, it was recommended for the entity the engagement in public bidding for food safety and equipment in public hospitals to be undertaken. Herewith, this will manage the current assets of the entity by allocating its high level of inventory to government hospitals. Above all this, the established alternative course of action would improve the current asset management of the entity, where it would be able to cover its high level of inventory.

Filipiniana

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