International Finance InTRODUCTION 1 TASK 11

INTERNATIONAL
FINANCE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
a) To analyse financial position by using key ratios ...................................................................1
b) Give recommendations on the basis of financial analysis ......................................................4
TASK 2 ..........................................................................................................................................4
a) Identify various risk exposures and how it can be mitigated by the company .......................4
b) Company's current trading and financial environment in context to the Brexit .....................5
TASK 3 .......................................................................................................................................6
Financial management models ....................................................................................................6
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................8
Appendix .........................................................................................................................................9

INTRODUCTION
International finance is a monetary transaction what occurs between two or more nations.
It consider the following things such as: Foreign direct investment, exchange rate of currencies,
monetary systems and other problems which are associated towards international financial
management and it is also known as international macroeconomics. To perform a business
activity finance is essential thing. To better understand this concept Associated British Foods has
been chosen which is a British Multinational food processing & retailing company. There are
various topics has been covered in this report such as: to analyse different types of ratios which
involves profitability, liquidity, investor and gearing ratio, identity the risk and how it will be
mitigate and evaluate the company's current trading & financial environment in context to Brexit.
Along with this, report discuss about dividend valuations model, discounted cash flow model and
capital asset pricing model.
TASK 1
a) To analyse financial position by using key ratios
Financial information denotes those information which associated with individual's
assets, liabilities, balances and other transactional information. With the help of it financial
position of an organisation can be determine and the financial statements of a firm provides the
financial information and it involves: income statement, cash flow statement, balance sheet etc.
With the help of these statements performance of business can be analysed that how much it is
earning currently as compare to the previous year. As Associated British Foods is basically a
retailing company and its ingredients division is the world's second largest producer of both
sugar & baker's yeast. The financial position of an organisation can be identified with the help of
profitability, liquidity, investor and gearing ratio (Waemustafa and Sukri, 2015).
Ratio Formula 2017 2018
Asset Turnover ratio Net sales/ Average
total assets
1.27 1.18
Current ratio Current assets/
currents liabilities
1.65 1.63
1