Financial Analysis of Farsons and Heineken: A Comparative Study

Financial
Analysis
Management &
Enterprise

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
1. Ratio analysis of the financial statements of Farsons and Heineken.....................................4
2. The importance of analyzing the working capital of both companies prior to making a
decision........................................................................................................................................9
3. Critical analysis of the annual cash flow statements of Farsons company and Heineken
company.....................................................................................................................................11
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

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 analyzing 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.

MAIN BODY
1. Ratio analysis of the financial statements of Farsons and Heineken
Ratio analysis of the financial statements of Farsons