Financial Analysis of Farsons & Heineken

FINANCIAL ANALYSIS
MANAGEMENT & ENTERPRISE
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Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Explanation of financial position and performance of finance of Farsons & Heineken.............3
Brief description of working capital............................................................................................3
Brief description of Cash flow.....................................................................................................3
CONCUSION..................................................................................................................................3
REFRENCES...................................................................................................................................3
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INTRODUCTION
Every business organization run their business activities with the use of financial analysis. It
is a procedure where corporation measure business in fiscal details in attempt to assess and
scrutinize actual position of business organization within economy. Theses analysis also use full
in identifying the liquidity and profitability value and level of the organization. To understand
this concept Farsons and Heiniken has been taken. Both are deal in manufacturing high quality of
drinks product. This report has been include the importance of financial statement and use of
ratio ,working capital and cash flow for taking decision and analysis the performance of the
business organization in brief manner.
PART 1
Explanation of financial position and performance of finance of Farsons & Heineken
Financial analysis: Financial review is the method of reviewing companies, programs,
expenditures and other activities relevant to finance to assess their efficiency and
appropriateness. Financial analysis is usually used to determine how an enterprise is adequately
secure, viable, liquid or competitive to justify a capital expenditure. In detailed manner it is the
evaluation and measurement of business financial activities through which manager can identify
the performance of business and easily evaluate their profit and loss incurred during particular
time period. (Fulton and et .al. 2015). About Farsons: It is retail organization which is situated in
Malta and established in 1928. The organization work for providing beer, soft drink cold drinks
wines and other beverage product to their customers. Farsons is private sector organization
which offer many products, Kine soft drink, Blue Label any etc. The organization is also a listed
company of Malta stock exchange.
About Heiniken: This is one most popular Dutch organizations that is producer and leading
distributor of beer across the globe. The organization provides more than 300 products in the
world. Heiniken has employed more than 85000 personals in their organization which prodded
best serves of beers in the world. The organization at present run their business in more than 70
countries. The organization is focus on provide best service to their customers and on the basis of
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their satisfaction level they enhance their market. They are use customers situation as their
organizations core competences.
Following are the ways through which manager identify the financial performance of theses
organization which are describe below
Vertical Analysis: Vertical assessment is a form of review of the financial report, where each line
element is described as a proportion of a reference number in the document. Therefore, line
items on a net income should be reported as a percentage of profits revenue, while column
headings on a balance sheet should be mentioned as a proportion of gross assets or liabilities, and
lateral review on a financial statements reveals either cash flow over time as a proportion of all
future cash flows. In other words, it is one of the most useful analysis which is based on the
profit and loss statement where they analyse total proportion and contribution of each income
statement ‘s item. Analysis should be premised on the proportion of sales risen by form of the
specific percentage. On other hand, income statement would be regarded as the proportion of
total gross revenues while balance sheet component expressed in the monetary worth of the
aggregated assets. The accompanying is vertical analysis of respective corporation.
Heiniken ‘s income statement: It is formatted to determine the value of profit earned by the
organization during specific period of time. The Heiniken organization’s profit has been
increase since 2015 to 12017 but in the year 2018 it has been goes down at 51 % due to
lack of managerial policies. However the value of net profit in 2015 was 4.67 % which is
reduce in 2016 at 3.75 % as well as the value of net profit in 2017 increase at the
organization earn 4.46 % of profit but is decrease in 2018 from some rate (Huotari, 2015).
Financial position statement: Value of noncurrent asset of the Heiniken in 2015 was 84.32
%, in 2016 it was decrease and the value is 79.31 % in 2017 it is 79.90% and in 2018 the value
measured of the no current assets was 78.38 %.It shows that the value of noncurrent of this
organization has been decrease with the changes in times. The value of the cash of Heiniken was
increase since 2015 as the value measure by the department of cash was 5.95 % in 2016 and it
was 6.92 % in the year 2018.The value of current asset of this organization was 1.68%, 20.69 %
and 21.62 %.The value of shareholders find of the Heiniken has been measured at 17.06 % of the
asset it has been reduce since 2015 as in that year the worth of shareholder fund as compare with
their assets was 17.90%.Its value in 2016 was 16.68%.The value of liabilities has been increase
as there was 2644 % observed in 2016 and in2-18 it was 26.99 %.
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