UNIVERSITY/HOSPITAL CENTRO EXCOLAR UNIVERSITY (CEU)

1. Financial Ratios

2017 2016
LIQUIDIY RATIOS
Current ratio 1.36 0.93
Quick ratio 0.43 0.30

ACTIVITY RATIOS
Receivable turnover 16.43 26.08
Asset turnover 0.41 0.47

SOLVENCY RATIOS
Debt-to-asset ratio 0.21 0.23
Debt-to-equity ratio 0.27 0.30
Interest coverage ratio 311.74 83.48

PROFITABILITY RATIOS
Return on assets 0.07 0.09
Return on equity 0.09 0.12
2. Horizontal Analysis

Comparative Balance Sheet

As of March 31, 2017 and 2016

Increase
(Decrease)
2017 2016 Amount %
ASSETS

Current Assets
Cash and cash equivalents 435,796,757 366,434,352 69,362,405 18.93%
Tuition and other
87,039,659 62,377,048 24,662,611 39.54%
receivables
Inventories 8,070,681 9,984,637 (1,913,956) -19.17%
Other current assets 10,621,088 11,301,497 (680,409) -6.02%
Total Current Assets 541,528,185 450,097,534 91,430,651 20.31%

Non-current Assets
Property and equipment
At revalued amount 1,863,505,003 1,863,505,003 - 0.00%
At cost 1,337,278,704 1,314,718,280 22,560,424 1.72%
Goodwill 47,605,695 47,605,695 - 0.00%
Other assets 30,343,434 36,700,365 (6,356,931) -17.32%
Total Non-current Assets 3,278,732,836 3,262,529,343 16,203,493 0.50%
TOTAL ASSETS 3,820,261,021 3,712,626,877 107,634,144 2.90%

LIABILITIES AND
EQUITY

Current Liabilities
Accounts payable and
accrued expenses 280,606,407 332,915,525 (52,309,118) -15.71%
Dividends payable 108,225,615 110,877,745 (2,652,130) -2.39%
Installment Payable - 39,061,511 (39,061,511) -100.00%
Income tax payable 9,953,732 - 9,953,732 100.00%
Total Current Liabilities 398,785,754 482,854,781 (84,069,027) -17.41%

Non-current Liabilities
Deferred tax liabilities -
242,128,875 249,612,373 (7,483,498) -3.00%
net
Retirement Liability 170,302,530 129,998,681 40,303,849 31.00%
Total Non-current
412,431,405 379,611,054 32,820,351 8.65%
Liabilities
TOTAL LIABILITIES 811,217,159 862,465,835 (51,248,676) -5.94%
Equity
Capital stock 372,414,400 372,414,400 - 0.00%
Additional paid in capital 664,056 664,056 - 0.00%
Revaluation increment on
- 0.00%
land - net 1,350,002,971 1,350,002,971
Revaluation reserve on
available-for-sale 112,970 137,018 (24,048) -17.55%
financial assets
Remeasurement loss on
(56,949,473) (26,889,389) (30,060,084) 111.79%
retirement plan -net
Retained earnings
Unappropriated 554,210,386 366,587,058 187,623,328 51.18%
Appropriated 786,000,000 786,000,000 - 0.00%
Noncontrolling interest 2,588,552 1,244,928 1,343,624 107.93%
TOTAL EQUITY 3,009,043,862 2,850,161,042 158,882,820 5.57%
TOTAL LIABILITIES
3,820,261,021 3,712,626,877 107,634,144 2.90%
AND EQUITY

Comparative Income Statement

For The Year Ended March 31, 2017 and 2016

Increase
(Decrease)
2017 2016 Amount %
REVENUES
Sale of services
Tuition and other
1,535,004,059 1,691,890,018 (156,885,959) -9.27%
school fees
Miscellaneous Income 45,349,627 41,766,288 3,583,339 8.58%
Interest income 3,721,167 6,933,117 (3,211,950) -46.33%
Foreign currency
exchange gains (losses) - 535,941 390,562 145,379 37.22%
net
TOTAL REVENUES 1,584,610,794 1,740,979,985 (156,369,191) -8.98%

COST AND EXPENSES

Cost of services 1,120,358,938 1,227,687,910 (107,328,972) -8.74%
General and
171,389,359 146,716,632 24,672,727 16.82%
administrative expenses
Interest expense 938,489 4,385,740 (3,447,251) -78.60%
Loss on
retirement/disposal of 295,689 447,082 (151,393) -33.86%
assets
TOTAL COST AND
1,292,982,475 1,379,237,364 (86,254,889) -6.25%
SERVICES
Income before income tax 291,628,319 361,742,621 (70,114,302) -19.38%
Provision for income tax 28,178,487 16,570,857 11,607,630 70.05%
NET INCOME 263,449,832 345,171,764 (81,721,932) -23.68%
3. Vertical Analysis

Comparative Balance Sheet

As of March 31, 2017 and 2016

2017 % 2016 %
ASSETS

Current Assets
Cash and cash equivalents 435,796,757 11.41% 366,434,352 9.87%
Tuition and other
87,039,659 2.28% 62,377,048 1.68%
receivables
Inventories 8,070,681 0.21% 9,984,637 0.27%
Other current assets 10,621,088 0.28% 11,301,497 0.30%
Total Current Assets 541,528,185 14.18% 450,097,534 12.12%

Non-current Assets
Property and equipment
At revalued amount 1,863,505,003 48.78% 1,863,505,003 50.19%
At cost 1,337,278,704 35.00% 1,314,718,280 35.41%
Goodwill 47,605,695 1.25% 47,605,695 1.28%
Other assets 30,343,434 0.79% 36,700,365 0.99%
Total Non-current Assets 3,278,732,836 85.82% 3,262,529,343 87.88%
TOTAL ASSETS 3,820,261,021 100.00% 3,712,626,877 100.00%

LIABILITIES AND
EQUITY

Current Liabilities
Accounts payable and
280,606,407 7.35% 332,915,525 8.97%
accrued expenses
Dividends payable 108,225,615 2.83% 110,877,745 2.99%
Installment Payable - 0.00% 39,061,511 1.05%
Income tax payable 9,953,732 0.26% - 0.00%
Total Current Liabilities 398,785,754 10.44% 482,854,781 13.01%

Non-current Liabilities
Deferred tax liabilities -
242,128,875 6.34% 249,612,373 6.72%
net
Retirement Liability 170,302,530 4.46% 129,998,681 3.50%
Total Non-current
412,431,405 10.80% 379,611,054 10.22%
Liabilities
TOTAL LIABILITIES 811,217,159 21.23% 862,465,835 23.23%

Equity
Capital stock 372,414,400 9.75% 372,414,400 10.03%
Additional paid in capital 664,056 0.02% 664,056 0.02%
Revaluation increment on
1,350,002,971 35.34% 1,350,002,971 36.36%
land - net
Revaluation reserve on
available-for-sale 112,970 0.00% 137,018 0.00%
financial assets
Remeasurement loss on
(56,949,473) -1.49% (26,889,389) -0.72%
retirement plan -net
Retained earnings
Unappropriated 554,210,386 14.51% 366,587,058 9.87%
Appropriated 786,000,000 20.57% 786,000,000 21.17%
Noncontrolling interest 2,588,552 0.07% 1,244,928 0.03%
TOTAL EQUITY 3,009,043,862 78.77% 2,850,161,042 76.77%
TOTAL LIABILITIES
3,820,261,021 100.00% 3,712,626,877 100.00%
AND EQUITY

Comparative Income Statement

For The Year Ended March 31, 2017 and 2016

2014 % 2016 %
REVENUES
Sale of services
Tuition and other
1,535,004,059 96.87% 1,691,890,018 97.18%
school fees
Miscellaneous Income 45,349,627 2.86% 41,766,288 2.40%
Interest income 3,721,167 0.23% 6,933,117 0.40%
Foreign currency exchange
535,941 0.03% 390,562 0.02%
gains (losses) - net
TOTAL REVENUES 1,584,610,794 100.00% 1,740,979,985 100.00%

COST AND EXPENSES

Cost of services 1,120,358,938 70.70% 1,227,687,910 70.52%
General and administrative
171,389,359 10.82% 146,716,632 8.43%
expenses
Interest expense 938,489 0.06% 4,385,740 0.25%
Loss on
retirement/disposal of 295,689 0.02% 447,082 0.03%
assets
TOTAL COST AND
1,292,982,475 81.60% 1,379,237,364 79.22%
SERVICES
Income before income tax 291,628,319 18.40% 361,742,621 20.78%
Provision for income tax 28,178,487 1.78% 16,570,857 0.95%
NET INCOME 263,449,832 16.63% 345,171,764 19.83%