Accounting and Finance for Managers: Ratio Analysis and Investment Opportunities

This report analyzes the financial performance of AG Barr Plc, Britvic Plc, and Coca Cola European Partners PLC, and identifies investment opportunities. It also discusses internal and external long-term sources of finance available for the companies.

Accounting And Finance For
Managers

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
SECTION A ....................................................................................................................................3
These decisions have impacted on the financial performance of the companies .......................3
The performance and financial position of the three companies ................................................4
Best Investment opportunity analysis in all the three companies................................................6
Section B..........................................................................................................................................7
Internal and external long term sources of finance available for the companies ........................7
Equity Capitalization of COCA-COLA EUROPEAN PARTNERS PLC...................................8
CONCLUSION ...............................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Accounting is the process for recording, maintaining as well as financial affairs
for the company which shows about the clear finance position of the company.
Whereas, financial management is the management which established about the
investment and finance. While this both accounting and finance management helps the
company for knowing about what types of operating and various terms are to be
required. This report will examine about the ratio analysis of the given organization and
impacted on the financial performance of the companies. While also explain about
research about the performance of the given companies by having the three years data
and justification about the positive investment opportunities for them in working with
various segments. Along with this also determine financing the business with having the
examples for which the given companies can easily earn high net profits (Plaskova,
2020).
MAIN BODY
SECTION A
These decisions have impacted on the financial performance of the companies
While this have been given for the AG Barr Plc 2020, ratio for working with high
financial performance with 38.0993 having operating profits margin. This could help the
company for knowing about how usually this could make their development and keep
their position high with better operating costs. AG Barr Plc 2019, 41.4234 operating
profit margin that could help the business for taking more high decision with the new
products and make their more investment. Net profit margin for the organization within
2019, 32.7296 would be high rather than other company and in 2020, this could be
having the 29.9169 which could be seems to be low rather than previous year (IFADA
and et.al., 2021). As per having such identification in 2020, AG Barr Plc cannot easily
buy their products and also less investment for their organization. As company can
make their strategic plan for which the sales volume that could be increased and make
their high sources for having the proper market share and increasing some more new
products and services. In 2019, 11.7% within 2020, which could led them for having the

proper sale and make their revenue for working with many more financial (Apte and
Kapshe, 2020).
Britvic Plc net profit margin which could keep the high estimation about the
30.340 in 2019 while for purchasing the better products and investment high rather than
AG Barr Plc and make sure for having their high financial performance. In 2018,
120.510 net profits margin which could give the growth for the organization and make
their sales revenue to be high increasing and also make their resources to be high
financial performance. Britvic Plc having operating profits margin within 2019, for
129.780 which could make their organization for being the analysis with many other
years and make their sufficient working system at performance. In 2018, 16.995
operating margin profits which could keep the organization for having the proper sales
within the given year. As both companies analysis which could required with some high
products and investment within having the connection (Tiedemann, Wikner and
Johansson, 2021). As both company must be required with having the long and short
term and also led them for increasing their market share. Through which having the
financial performance which could keep their many resources available and make sure
about their proper development and growth for which the estimation about their effective
things can be increased.
The performance and financial position of the three companies
Financial performance for the organization which must be important for the
organization as AG Barr Plc ratio about their revenue for 38.0993 which they can
effectively taken place. Along with this also make sure about their current ratio with
having the 11.2% with and this could make the organization performance within high.
Working capital 8.23% for the year for which the proper investment and many other
sales that could be increased. Along with this also keep the estimation about the
operating margin profits within 16.2%, so that could keep them with some better
financial system (Neves and et.al., 2021). Working ratio 2.34% for which the company
can make their growth and make their some business solution for which the profits that
could be increased and keeping the high financial performance. Quick ratio which must

be important and that could be having the 4.12% and make their business for having
some high sources.
Britvic Plc with the working capital 4.51% that could keep their policies for high
performance and keeping their estimation through which the proper sources can make
their availability. Operating margin 8.4% for which the other companies have less
increasing operating cost within the year. As Britvic Plc have also make sure for
increasing their cost and develop some more huge resources for being high market
share. Net margin 5.2% for 2019 through which the proper estimation about how usually
this could work and led them for working with many other better performance rather
than other given company (Sharma and Aggarwal, 2021). This could also keep their
working condition and make their financial sales for working ratio and also performance
margin. Capital ratio 4.52% which could keep the analysis and make their high position
with share. The cost margin which could indicates that money which operation and
leaving many other expanses. Along with this also led them both types of financial
analysis allows both management and keeping the investors about decent while still
meeting for all other financial obligations. While working capital for given condition for
which the sources and make their business with 4.25% of ratio analysis and make their
business for working with some high resource (Mariano, Izadi and Pratt, 2021).
Operating profits margin vary significant across different sectors and industries. Along
with this could also with high terms and make their average profits margin in the various
sector and keeping lower margins with many business as given time sector.
Coca cola plc is independent coca cola bottling company which focuses on
beverages and syrup. These consist of non-alcoholic ready to drink beverages, bottled
and soft drink juices carbonated waters etc. It is founded in the year 1892 by Atlanta
and Georgia, U.S (Chandra, 2020). The headquarter of coca cola is in Uxbridge,
England and UK. Company has reported financial information which consist revenue,
operating margin, net margin etc. In 2019, company revenue is increased by 4.3% as
compare to previous year. Moreover, company has increased its operating margin from
2018 to 2019 by 11.3% to 12.9%. Further if net profit margin is analysed then it has
increased from 2018 to 2019 by 9.1% to 7.8%. Likewise, company has promoted the
drink within the budget and along with succeeded. Moreover, currently beverages of

coca cola company bearing the trademark of coca-cola or coke has accounted 78% of
approx. total sales of the company.
Best Investment opportunity analysis in all the three companies
Investor always looking forward to investing in the well performed and high
growth potential company. There are three company performance analysed which
include AG Barr plc, Britvic plc and coca cola company. All the three companies has
performed well in terms of financial and non financial information analysis. Firstly, if
revenue growth is analysed then it has shown that Britvic plc has less growth as
compare to other two. Moreover, market capitalization go from high to low as coca cola
to Britivic to AG Barr. Further, if price to earning ratio is compared then it shows in line
as coca cola to Britivic to AG Barr. Coca cola company has performed well as compare
to other too. As it has high growth potential and return opportunity along with less risk
for investor (Madura, 2020). Those investor who has conservative approach can invest
in this company for long term. Moreover, those investors who are ready to take risk for
high return can invest in Britvic plc. This company has less market share but high
growth potential in future as it is continuously increasing their sales. Likewise,
aggressive investor has high opportunity to invest in AG barr because it has very high
risk and high return apprx 20%. From the financial information it can be evaluated that
coca cola company has performed well and also looking forward to more expansion. So
this is the right chance to grab the opportunity to secure its capital. AG Barr has made
lots of investment for expansion in near future.
As Britvic Plc has make sure that it will increase cost and market share with the
helps of financial sources. From the above analysis it can stated that coca cola is one of
the best company because it has large market share that is 8.923 B. Likewise, revenue
is 0.7% higher as compare to other companies. But price to book value of Britvic Plc is
higher then other too. Therefore, it can be interpreted that investor should invest in
coca-cola as it has long growth opportunity (Bulturbayevich and et.al., 2020).
SECTION B
Internal and external long term sources of finance available for the companies
There are many sources of finance options which can be used by the company to
fulfil their needs or to obtain funds from. Coca cola European partners PLC (CCEP) is

large company and used below mentioned sourcing option in order to meet their
objectives.
1. Venture capitalist (VC)- Venture capitalist is the inventor which invests into
innovative businesses and mostly technology based companies. These
companies are highly risky companies. CCEP can take this option into
consideration so that their objectives can be achieved. Before taking this option it
is also important to know its cons like it is expensive, have formal reporting
structure etc. CCEP is also having VC firm which has invested more than $100
million.
2. Retained earnings- under this sourcing method management of the company
reserves the profit in order to meet their future needs or to go for expansion. The
benefits of this option is that owner will remain owner as there is no control
dilution. This method is not costly and that will provide benefits to the company.
In order to avail this option company should keep funds retained and to so is not
easy.
3. Bank loan- this is the most common and highly used option in order to raise long
term funds. It does not only help to raise long term funds but also help company
in providing them liquidity by fulfilling its shorts term fund needs also. CCEP can
take loan from the bank easily and have to pay money into instalments added
rate of interest which will be charged by financial institution. Interest rate of every
banks are different. So company can take loan from that bank whose rate of
interest is low.
Share capital-
1. Capital which is generated by the company by issue shares of the company.
There are two types of shares.
2. Equity share capital— the investment made by the company's owners. They
receive the benefits and are liable to ownership (MICULESCU and LENGHEL).
They are given dividends only when the preferred shareholder pays a dividends
and after fulfilling the organization's long term investment objectives.

3. Preference share- The capital of preferential share Is the investment made by
preferential shareholders. The stockholders want to pay dividends as the term
indicates. In general, the dividend on such shares is predetermined.
Equity Capitalization of COCA-COLA EUROPEAN PARTNERS PLC
To maintain their business seamless and functioning, every firm requires considerable
operating cash. This capital proves useful when the firm is exposed to financial
constraints to continue to operate regularly. Firms utilize their shares mostly to obtain
the cash they require, known as equity capital. Same There are a lot types of equity
shares such as:
1. Authorized share capital: The authorised share capital is the highest capital
which may be granted by any firm so as CCEP. After they have obtained
authorization via various authorities and paid the appropriate costs, company can
raise their acceptable limit to permit their shares.
2. Issued share capital: the shares offered to its stakeholders by a firm are called
issued share capital.
3. Subscribed share capital: includes the portion that shareholder agrees with and
accepts of the issued share capital.
4. Right shares: since after investing in stocks they are shares given to individuals.
It is given to safeguard present investors' ownership.
5. Sweat shares: organisation award their employees or managers with shares in
recognition of a well-functioning job. Such shares are referred to be sweat
shares.
6. Paid up capital : it is the portion that the firm spends in its business of subscribed
capital.
7. Bonus shares: These securities are traded as a dividend to shareholders.
As equity financing creates an good impact on organization as it helps the company to
increase their number of shares which attracts the interest of other stakeholders. As the
increasing shares can dilute the stocks for the current stakeholders. As for the company
if they are facing the financial issue it will be beneficial for them to sell of their shares.
Equity finance can be seen as beneficial for the company to pay their debts, or because

of this they can invest on their new projects (SHROTRIYA, 2019).0As many other
organization issue equity finance which can not be support by the stakeholder as they
don't like the concept, stakeholder may feel that their involvement is diluted but in other
cases investors can sell of all their stocks altogether. As for the coco cola company if
they issue other stocks than it will increase their shares in the market, therefore for their
many existing stakeholder issued stocks make guide them to dilution. As dilution of the
shares exist due to the extra issued shares decreases the value of shares of the
existing stakeholders (Rayappa and Doss)
CONCLUSION
From the above analysis, it has been concluded that all the three company has
performed well on the basis of revenue, price to earning ratio, market cap etc. Investor
has high opportunity to invest in coca cola company to secure its capital by taking low
risk. Moreover, this report has also analysed the performance of AG Barr, Britvic plc and
coca-cola. It has been studied that company has many financial sources option like
venture capital, bank loan and retain earning for expansion decision. For smooth
functioning of an organization it is required to have operation margin. Further at the end,

this report has studied coca cola equity capitalization in which authorized capital, issued
capital, right shares are included.

REFERENCES
Books and journals
IFADA, L.M. and et.al., 2021. Environmental Performance and Environmental
Disclosure: The Role of Financial Performance. The Journal of Asian Finance,
Economics and Business. 8(4). pp.349-362.
Tiedemann, F., Wikner, J. and Johansson, E., 2021. Understanding lead-time
implications for financial performance: a qualitative study. Journal of
Manufacturing Technology Management.
Neves, M.E.D. and et.al., 2021. What factors can explain the performance of energy
companies in Portugal? Panel data evidence. International Journal of
Productivity and Performance Management.
Sharma, R. and Aggarwal, P., 2021. Impact of mandatory corporate social responsibility
on corporate financial performance: the Indian experience. Social Responsibility
Journal.
Mariano, S.S.G., Izadi, J. and Pratt, M., 2021. Can we predict the likelihood of financial
distress in companies from their corporate governance and
borrowing?. International Journal of Accounting & Information Management.
Bulturbayevich, M. B and et.al., 2020. Modern features of financial management in small
businesses. International Engineering Journal For Research &
Development. 5(4). pp.5-5.
Madura, J., 2020. International financial management. Cengage Learning.
Chandra, P., 2020. Fundamentals of Financial Management|. McGraw-Hill Education.
Apte, P. G. and Kapshe, S., 2020. International Financial Management|. McGraw-Hill
Education.
Plaskova, N. S., 2020. Financial Controlling as a Function of Managing an
Organization’s Strategy. Accounting. Analysis. Auditing. 7(5).pp.24-32.
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A.G. BARR P.L.C. [online]. 2021 Available through
<https://www.dnb.com/business-directory/company-
profiles.ag_barr_plc.6510ade94e4b9192597db0cf97fae180.html>
A.G. BARR p.l.c. [online]. 2021 available through
<https://finbox.com/LSE:BAG/compare/LSE:BVIC,LSE:CCH,LSE:CCR,AIM:GUS,AIM:DIS>
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