Financial Analysis for Simonds Farson Cisk and Heineken N.V.

Financial Analysis
Management Enterprise

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
........................................................................................................................................................11
TASK 2..........................................................................................................................................14
TASK 3..........................................................................................................................................14
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
Financial analysis is useful in determining the current position of organization by
effectively assessing the current market position. This helps in evaluating the cash stability of
business. It also helps in evaluating debt in relation with the equity (Xie, 2015, November). This
helps in evaluating budget, project and various other finance related activities which is useful in
determining suitability and operations of organization. This study will carry out vertical,
horizontal and ratio analysis of the financial reports of two institution. This study also helps in
analysing the value of net working capital statement and cash flow statements of both the
companies.
Simonds Farson Cisk is food and beverage conglomerate company which is
headquartered in 1928. This company is headquartered in Birkirkara, Malta. Heineken N.V. is a
brewing production company which was established in the year 1864. This company is
headquartered in Amsterdams, Netherlands.
TASK 1
Vertical analysis of the fiscal report is considered to be as effective measure where each
financial item is list out as a % of other items. This method is considered to be very useful in
carrying put trend analysis which helps in determining relative change in the various financial
accounts over a period of time.
Horizontal analysis helps in comparing several financial rations and benchmark over the
particular accounting period. This method is considered to be very useful in carrying put trend
analysis which helps in determining relative change in the various financial accounts over a
period of time. This is very useful in evaluating various trend situations.
Income statement
This statement helps in presenting the financial results of the company for a particular
period. This helps in presenting the amount in a systematic and appropriate manner where they
focus on improving the performance of the company. This is considered to be one of the most
crucial financial approach as it helps in proper classification between the profit and loss of the
company.
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Interpretation: From the above conducted study by the using proper and effective tools of
financial accounting. This help to show the proper result of data in order to give more specific
result of work. As per the horizontal analysis of income statement, revenue in 2018 is higher i.e.
22% as compare to 2016 and 2017. On the other side, company Heineken N.V. Share of profit
of associates and joint ventures which shows the new amount of income tax which will company
pays. Net income tax is lower in 2016 as compare with 2017 and 2018, but in 2018, net income
tax show as per the horizontal analysis is 180%. Income statement of Heineken N.V. Company
as per horizontal analysis, company got profit in 2016 i.e. -19%, 2017 i.e. 24% and 2018 i.e. -
3%. As per that, company is get higher profit in 2017.
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