MCWD ‘in sound financial health’

THE Metropolitan Cebu Water District (MCWD) ended the year 2022 in a sound financial condition maintaining its total assets of P5.2 billion.

This report contradicts the claim made by the former set of MCWD Employees Union officers that the corporate health of MCWD was deteriorating, with an income plunging by 62 percent.

MCWD board of directors chairman Jose “Joey” Daluz III said the financial statements revealed a very strong year for MCWD in fiscal 2022.

“We maintained the strength of our total assets at P5.2 billion, which is approximately the same amount as the previous year, 2021. Out of the P5.2 billion total assets, the total current assets amount to P2 billion, including P1.2 billion in cash and cash equivalents,” said Daluz.

He added that the debt-to-equity ratio stands at 30-70, demonstrating MCWD’s leverage in funding its operations. The asset turnover for the fiscal year 2022 is P0.35, indicating how efficiently MCWD has utilized its assets to generate sales.

“Compared to 2021, the current ratio has been maintained at 3.5 times for fiscal year 2022. This shows the strong capacity of MCWD to fulfill its financial obligations to our partner suppliers,” Daluz said.

MCWD’s interest coverage ratio for 2022 is 2.2 times, showcasing the water district’s ability to service its loans.

However, Daluz admitted that improvements need to be made in terms of aligning budgeted amounts with actual figures and learning lessons from the fiscal year 2022 to better plan for the fiscal year 2023.

“The soundness of MCWD’s financial condition is a result of the collective effort of the board, the management team and all staff and employees in achieving our corporate mission, vision and goals,” he said.

It is worth mentioning that MCWD’s financial standing was one of the issues raised by the employees’ union in their letter addressed to Mayor Michael Rama dated September 2022. / PR