The Company’s key performance indicators and relevant ratios and how they are computed are listed below:
|December 31, 2016||December 31, 2015|
|Current Ratio1||1.17 : 1||1.14 : 1|
|Debt to Equity-Total2||1.72 : 1||2.09 : 1|
|Return on Equity-Common3||11%||11%|
|Net Book Value Per Share4||6.81 : 1||6.89 : 1|
|Debt to Equity-Interest Bearing5||1.35 : 1||1.69 : 1|
|Earnings Per Share-Adjusted6||0.64||0.60|
1 – Total current assets divided by current liabilities
2 – Total liabilities divided by tangible net worth
3 – Period or Year Net income divided by average total stockholders’ equity
4 –Total stockholder’s equity (net of Preferred) divided by the total number of shares issued and outstanding
5 – Interest Bearing Debts divided by Total stockholder’s equity (net of Preferred)
6 – Period or Year Net income after tax divided by weighted average number of outstanding common shares
These key indicators were chosen to provide management with a measure of the Group’s financial strength (Current Ratio and Debt to Equity) and the Group’s ability to maximize the value of its stockholders’ investment in the Group (Return on Equity, Net Book Value Per Share and Earnings Per Share). Likewise, these ratios are used to compare the Group’s performance with similar companies.
The Group’s debt to equity (DE) ratio for 2016 is lower at 1.72 : 1 due to the sale of the subsidiaries resulting in the deconsolidation of the related accounts of CSC and PPIPC.