This paper will analyze the financials of two businesses in the in the consumer staples segment, more specifically the alcoholic beverage industry. The alcoholic beverage industry consists of beer, wine, and distilled spirits. Within each category there are many different distributors. Some of these companies are small and only serve a small region. While others have a diverse product line and serve their product not only nationally but globally. Molson Coors Brewing Co. is the second largest beer distributor and has just over 30% market Share. Castle Brands, Inc. is one of the smallest in the industry that is publicly traded. The financials of both companies will be compared to the industry benchmark to determine their current financial condition. …show more content…
is the seventh largest beer brewer by volume in the world and has over 20 brands of beer. Castle Brands Inc. produces premium and super premium rum, vodka, whiskey, wine, beer, and liqueurs. These two businesses are very different in size, type, and financial stability. Before analyzing the financial it is important to note that the industry benchmark was not available for the current ratio, accounts payable turnover, as well as the debt to equity ratio. The current ratio shows the companies ability to pay short-term debt; it compares amount of assets to liabilities. Molson Coors Brewing has a current ratio of .68, this indicated that the company has more current liability than assets. This may appear to be a red flag, but we notice that Molson Coors has a turnover rate of 9.76, this is almost double the industry benchmark. In this case it is very possible that the current ratio is low because inventory is turning over very quickly, before accounts payable becomes due. Castle Brand has a current ratio of 3.91. This is more than double the industry benchmark. However, inventory turnover is very low; this indicates the company might not be using assets wisely. By excluding the inventory we are able to calculate the quick ratio. We notice even without the inventory Castle Brands is dramatically exceeding the benchmark of .22 at 1.52. This shows the company is in a very good liquidity
The objective of this research is to propose strategies to investigate the possible solutions for the decrease of the revenue that Publix is suffering from and implement more efficient marketing strategies to improve the financial situation the company is encountering. Throughout the last three years, the company has been increasingly struggling. Due to the heavy competition that is present in the Southeastern part of the country, Publix must explore all possible options for this situation, and address issues that are preventing the revenue increase that is essential for Publix to maintain as a competitor. - To determine important information about the industry, the marketing research must analyze, the main target of the company, the individual market share of the industry or market, and the strategies of other competitors.
Their current ratio improved from 1.59 to 2.44 which shows the ability to cover current liabilities has improved. Massachusetts Stove Company strategically made decisions to not only increase their current assets quickly but also managed their liabilities to keep them from growing out of control. This means that the company could cover current liabilities at any time relatively easily with their cash, receivables, or other current assets. In terms of the market, Massachusetts Stove Company does have the demand of 220,000 active prospects they could try to sell stoves too if a dire need arose for quick cash. Management even brought their quick ratio to 1.08.
The lower debt to equity ratio usually indicates a more financially stable business. Cracker Barrel’s three-year average total debt to equity was 1.84, in comparison to Cheesecake Factory three-year average total debt to equity was .83. Cracker Barrel’s debt equity ratio shows reliable debt they are running with compared to Cheesecake Factory they are running with .83 debts to equity ratio. Demonstrating Cracker Barrel with a higher average debt to equity ratio meaning its running mostly on finance assets. Return on Investment Return on Assets Return on Assets is when a company makes itself profitable in relation to its total assets giving an idea of how Cracker Barrel in this case is using assets to produce revenue.
C. Penney demonstrates good position. Current ratio is maintained at very good levels of above 1.5, while low quick ratio highlights some concerns because low quick ratio indicates that J. C. Penney is exposed to high inventory levels which pose great risk to liquidity. Financial leverage also highlights some concerns because it is continually increasing which is increasing the risk of bankruptcy. Debt/Equity ratio also indicates the increasing reliance on debt. Overall, J. C. Penney’s position in terms of liquidity and financial health is not very good and the company may face liquidity crunch in the foreseeable
Rawhide Brewery is a Canadian base bottling works with yearly deals $5.3 million out of 2011. Rawhide brewery is confronting some downturn in the market and it is present CEO Andrew Upson is confronting some inconvenience in his organization turning a benefit. This is not by any means the only issue that the organization is confronting, they have a noteworthy circumstance which is the obligation to proportion the organization is conveying which is a 10-year advance and the organization's obligation to proportion is over the ordinary normal for the business. Deals projections are not searching useful for the organization, and with low deals meaning the obligation is not going to get paid off sooner.
However, this what Aeropostale Corporation started with at the beginning of 2015. B. Current Ratio: Loss Current Asset 213.138 - Current Liabilities: 3.944 = -0.56Aeropostale company ratio is at -0.52 and the company has loss 56. Cents per dollar. This is not looking good for the company
. What industry(s) does CNR operate in? (3 marks) Canadian National Railway (CNR) is publicly traded company since 1995. It operate in service sector force on railway and transportation industry. CN is currently the largest railway in Canada, in term of both revenue and rail network.
Financial ratio analysis is used by both managers and investors to evaluate how well an organization is performing. Managers use these ratios to analyze both operating and financial performance through various components of the firm to determine its solvency (liquidity and leverage), efficiency (activity) and profitability (growth and profitability) (SLU, 2014). The ratios assist in identifying areas where improvements can be made as well as to identify trends (improving or deteriorating) and to make comparative valuations within the industry. Investors on the other hand, use these ratios by comparing various aspects between companies to determine if the firm is a good investment. Samplings of financial ratios (Appendix A) for Target Corporation are
Boston Beer Company, aka, Sam Adams is the largest US craft brewer. With annual sales estimated to be 4.2 million barrels, and an annual revenue of $906.446 million dollars. The top competitors are Heineken, and macrobrewers, Anheuser-Busch, and Millercoors. (The Boston Beer Company Inc Competition, n.d.)
The argument states that the consumption of coffee decreases with an increase in the age of the consumer while the consumption of cola decreases. This statement is further taken as a premise, to consider a transfer of investments from Cola Loca to Early Bird Coffee. However, there are a few concerns that the author does not address, and which may result in losses due to the transfer of investments to Early Bird Coffee. The author assumes that the statics of consumption of coffee and cola, within the age groups mentioned, is sufficient to predict the profitability of the respective businesses for the next 20 years. The author fails to consider other factors that might affect the consumption of coffee and cola.
Both ratios of McDonald’s Corporation are larger than 1, showing a more fluid liquidity with current assets and quick assets both exceeding the amount of current liabilities. In contrast, ratios of Yum are both less than 1, indicating a limited ability to pay short-term liabilities which may cause difficulty in paying short-term debts. McDonald’s Corporation also behaves stable and has an increasing trend with respect to future development, while Yum shows a decreasing trend. This fact is a reminder for Yum to adopt some cautious actions to lower its future
Their current ratio is 1.4% (total current assets/total current liabilities). According to the Risk Management Association of Financial Ratio Benchmarks, the current average ratio is 1.5%. In 2014, the current ratio for the firm was 1.46% while the average ratio in the industry (NAICS 311330) was 1.6%. The company’s net property and equipment in 2015 is worth 2.6 million dollars, a slight increase from 2014, which was 2.3 million. The company is considering taking on some debt to increase their production capabilities.
It is resilient, as exhibited by its creativity in packaging, branding, and products. One recent projection forecasted craft beer to be a $92 billion industry by 2025, up from $76 billion in 2021. The owners of macro breweries have, in recent years, acquired craft breweries, albeit with mixed results. It appears that these forays have highlighted the fact that micro-operations have a unique set of challenges.
Analysis of Financial Statements Student number: 10221450 Word count: 2993 words Excluding Bibliography Course code: B9AC106 Course title: Financial Analysis Lecturer: Mr. Enda Murphy Company: Whitbread PLC Table of Contents 1. Whitbread plc 3 Financial Ratio Comparison 6 1.1 Profitability Ratio 6 1.2 Liquidity Ratio 9 1.3 Efficiency Ratio 11 2. Intercontinental hotels group plc and Ratio Comparison with Whitbread 12 3. 10% Stake in Intercontinental Hotels Group PLC 13 Conclusion 16 Market Value and Book Value
Kraft Heinz Company the 5th largest food and beverage company with revenues over $26.5 billion and 26 popular brands under its umbrella has recently seen sales disintegrate from competitors that are associated with natural and organic brands (Kraft Heinz Company, 2017). This analysis studies Kraft Heinz Company’s strategy, competitive position in the market, problems being faced, and the company’s financials. KHC, an established company in the packaged-food industry, has dominated the market share with a 3.7% dividend yield, but can soon face destruction to their profitability and impose losses among competitors (KHC: Dividend Date & History for the Kraft Heinz Company, 2018). In order for KHC to remain an industry leader, they must first have a deep understanding of the pertinent factors surrounding the company’s situation (Thompson,