The profitability ratio of First Farm Corporation (FFC) shows that the Net Profit Margin of the company improved due to the increasing Net Sales and Net Income in the year 1995. The said improvement is due to the increasing sales in the chicken and feeds business as oppose to the fair increase in the cost of goods and operating expenses. Also, this improvement can be directed to the launching of the new line of extruded aquaculture feeds and the company’s entry to the fast food business. Return on Assets (ROA) of the company deteriorated.In 1994, every Php 1. 00 worth of asset earned 21 cents while in 1995 it declined to 15 cents for every 1 peso worth of asset. The data show that the assets are underutilized in relation to their contribution to the income of the company. The Return on Equity (ROE) of the company also deteriorated. The percentage change in the total shareholders’ equity is much greater than the percentage change in the net income of the company. The said effect is due to the fact that in 1995, FFC went public and raised 1. billion pesos from common stock resulted to a 160% increase in the company’s total stockholders’ equity. First Farms Corporation’s Operating Efficiency Ratio also declined. AR turnover declined from 13 to 11 times while Inventory Turnover deteriorated from 5 to 3 times. Age of receivables increased from 27 days to 32 days while age of inventories increased from 70 days to 103 days. Asset Turnover Ratio also declined. Assets were utilized 1. 99 times to generate sales in 1994 while it decreased to 1. 45 times in 1995 specifically the inventories.The Financial Leverage ratio of the companies showed that its interest coverage is in good condition increased from 2. 9 times in 1994 to 12 times in 1995. Majority of the company’s assets (54%) is financed through borrowings (notes payable) while only 46 % is financed through equity. The Liquidity Ratio shows that company is facing liquidity problems. Current ratio is unfavorable being at . 99 in 1994 and 1. 35 in 1995. Quick ratio is also not good being at . 38 in 1994 and . 53 in 1995. The data shows that the company is having difficulties in covering its debt through its current or quick assets.