Firm’s Financial Performance: Case Study of the Philippine Property Sector

Abstract

This study evaluates the financial performance of Philippine property sector companies. It also aims to help these businesses make informed financing choices that may affect their financial performance. This study is based upon Alexander Wall's (1919) theory of ratio analysis. The researcher employed historical design study. Using 2015–2021 financial data, the research examined all PSE property-related companies. The panel data analysis using a random effect parameter of the Linear Mixed Model was employed to examine time series of cross-section observations. According to this study, the average return on assets (ROA) over the course of six years was 0.05, indicating that the firm earned an average of five cents in profit per peso of assets held. The mean return on equity for the entire period is 0.05. The mean capital gains yield of the companies for the 6 years ranges from 0.12 to 0.19. It can be concluded that the property sector in the Philippines has demonstrated resilience. It is recommended that the PSE listed companies under the Property Sector may find the findings of this study helpful in formulating financing strategies that account for the impact of financial structure on their financial performance.