Financial Analysis of AG Barr plc, Britvic plc, and Coca Cola plc

Accounting and
Finance for Managers
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Table of Contents
Introduction......................................................................................................................................3
Section A..........................................................................................................................................3
Section B..........................................................................................................................................6
Conclusion.......................................................................................................................................8
REFERENCES..............................................................................................................................10
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Introduction
Financial management is one of the important aspects of every business organisation. For
the purpose of managing such resources it is necessary for different sector organisations to
manage their finances. Present report is based on analysing three organisations financial
statements that includes AG Barr plc, Britivic plc and Coca cola plc. All the organisations are
part of same industry and our competitors of each other. The report is basically divided into two
parts first part analysis is based on long and short term decision making and the way these
decisions impact on financial performance of the organisation. Second part of the report is based
on critical evaluation of the internal and external long term sources of finances that are available
for an organisation.
Section A
AG barr PLC Company: it is an organisation that is working as manufacturing and marketing
of soft drinks. The brand is dealing in products like carbonated soft drinks, fruit juice, energy
drinks and cocktails. .
Britvic plc: BRITVIC is a wholesaler and manufacture of soft drinks and supplying the products
to international food markets. There are different segments that are operating in Central Europe,
Sweden, Australia and Denmark. Britvic plc is one of the best food organisations that are
serving a specific quality food to the customers. The brand is having focus towards maintaining
the satisfaction level of their customers. For which there has been a specific standardization of
quality that is being maintained through years. This aspect has led to creation of high customer
loyalty and organisation is willing to offer quality products as per changing customer demands.
Coca cola plc: Coca cola PLC is providing high quality of food products to customers in terms
of packaging and taste. They are having a unique selling proposition that is helping them to
achieve a competitive advantage as compared to other competitive brands. Coca cola is dealing
in non alcoholic beverages. The overall market share of the organisation can be enhanced by
people getting high quality products and wide range that is offered by this brand.
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 Financial and non-financial ratios:
BARR AG PLC 25-1-2020 26-1-2019 27-1-2018
ROE using Net income (%) 14.31 17.06 18.50
ROCE using Net income (%) 15.97 19.06 20.01
Profit margin (%) 14.52 15.95 17.00
Gross margin (%) 46.52 47.06 47.44
EBIT margin (%) 15.15 19.64 20.07
Collection period (days) 77 70 73
Credit period (days) 20 26 24
Current ratio (x) 1.44 1.62 1.52
Gearing (%) 14.26 12.77 14.07
Net assets turnover (x) 1.08 118 1.15
Table 1: Financial Ratios for BARR AG PLC
Non-financial ratios 25-1-2020 26-1-2019 27-1-2018
Shareholders’ funds per employee (th) 219 219 208
Total assets per employee (th) 313 312 298
 Table 2: Non-Financial Ratios for BARR AG PLC
BRITVIC PLC 25-1-2020 26-1-2019 27-1-2018
ROE using Net income (%) 26.77 38.64 40.91
∟ ROCE using Net income (%) 19.64 31.04 32.89
Profit margin (%) 7.14 9.70 9.70
∟ Gross margin (%) 56.79 58.08 57.97
EBIT margin (%) 11.29 11.51 10.91
Collection period (days) 80 75 71
∟ Credit period (days) 68 64 61
Current ratio (x) 0.81 0.93 0.93
Gearing (%) 163.86 196.85 200.12
Net assets turnover (x) 1.51 1.42 1.44
Non-financial ratios 28-03-2020 30-03-2019 31-03-2018
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