Financial Analysis of Farsons and Heineken

Financial Analysis Management & Enterprise

Table of Contents
INTRODUCTION................................................................................................................................3
MAIN BODY.......................................................................................................................................4
TASK 1............................................................................................................................................4
TASK 2..........................................................................................................................................12
Importance of analysing working capital of the companies before taking decision......................12
TASK 3 .........................................................................................................................................13
CONCLUSION..................................................................................................................................16
REFERENCES...................................................................................................................................17

INTRODUCTION
Financial analysis is a effective process, it assist in evaluating businesses, budgets, projects and
various financial related activities to identify their suitability and performances. It is a process of
analyzing and reviewing business's financial statements. By this we can determine the company's
financial strength and weaknesses by developing strategic relationship with the financial statements,
balance sheet and profit and loss account. Farsons is beverage company is known as Simond
Farsons Cisk plc. The business of Farsons includes production, sales, brewing and distribution of
soft drinks and beer. Heineken is a lager beer company and it includes 5% alcohol. Heineken is sold
their beer in green bottle. This report will include the detailed vertical, horizontal and ratio analysis
of the financial statements of both the companies. This report will also highlight the importance of
analysing working capital of the Farsons and Heineken company before making a decision. This
report will also state the critical analysis of the annual cash flow statement of Heineken and Farsons
over the last two years. (Zeghal and El Aoun, 2016)

MAIN BODY
TASK 1
A detailed vertical, horizontal and ratio analysis of the financial statements of the two companies
Ratio analysis of Heiniken-