Essay on Britvic Plc Financial Analysis - 5074 Words

Alexandra-Gabriela Sirbu Business and Management, year 2, University of Salford 12/17/2010 BRITVIC PLC Table of contents: 1 .Aim pg. 2 2. Company overview pg. 2 3. Short-term assets management pg. 3 4. Liquidity pg. 4 5. Profitability pg. 5 6. Financial structure and cost of capital pg.7 7. Share price behaviour pg. 8 8. Portfolio effect pg. 10 9. Concluding remarks pg 12 10. Bibliography pg 13 Britvic PLC –financial analysis- 1. Aim The aim of the following report is to assess the financial activity of Britvic PLC over a sixty months period, from January 2005 until December 2009, in order to make recommendations for a future investment in the company. 2. Company overview Britvic PLC was founded in 1938, in†¦show more content†¦Britvic PLC was compelled in 2007 to increase with approximately 10 days the period in which credit customers pay their liabilities, so that the impact of economic recession over the organisation’s profit was reduced by maintaining the drop in the level of sales at an acceptable level. One year later, in 2008, an 8 days decrease in his ratio was recorded, followed by a 2 days increase in 2009. As reported by their financial statements, the debtors’ days ratio has been stable for the past two years, a sign of recovery after the economic recession, but not as low as in the economic boom, characteristic for the 2005-2006 period. The third ratio mirroring the company’s efficiency is the creditors’ days ratio, which measures, according to Atrill, the number of days in which the business pays its debts to suppliers. Britvic PLC’s financial statements recorded in 2009 a 20 days increase in the above mentioned ratio compared to the 2005-2008 average that had a value of 149 days. Therefore, Britvic PLC paid in 2009 its debts 169 days after the enclosure of the transactions. Taking into consideration the fact that Britvic PLC is operating in the soft drinks industry, which has a medium pace of generating cash, it may be stated that this ratio’s value is high enough to reflect that Britvic PLC is risking the creditors’ goodwill. On the other hand, the company paid its short-term liabilities in approximately four months after receiving the suppliesShow MoreRelatedCompany s External And Internal Environment Analysis1387 Words   |  6 Pagesinternal environment analysis to evaluate the company in the industry and future developments. Assess the external environment mainly through PESTLE Analysis and Porter s 5 Forces. Strategic Recourses Capability Analysis for internal environmental assessment is conducted. Finally, the company somehow SWOT analysis, concluded †¢Ã¢â‚¬ ¢Ã¢â‚¬ ¢Ã¢â‚¬ ¢ This article mainly refer to the company s annual financial reports, industry reports and official website as references. 1. Introduction Britvic plc is a UK soft drinkRead MoreQuestions On Corporate Finance ( Man4030m )3917 Words   |  16 Pages(MAN4030M) ASSESSED COURSEWORK (SUPPLEMENTARY) TOPIC: VALUATION OF A.G. BARR PLC STUDENT: SHAHID YOUNUS UOB No. 11027691 TUTOR: SEAN FINUCANE GROUP: A Table of Contents List of Figures List of Tables 1. Business Description 1 2. Competitive Positioning in the Industry 1 3. Market Valuation 2 3.1 Recent Stock Performance and Value to Share Holders 2 3.2 Past Stock Performance and Value to Share Holders 2 4. Financial Analysis 5 4.1 Income Statement Review: 5 4.2 Balance Sheet Review: 5 5. ValuationRead MoreMarketing Plan of Coca Cola6005 Words   |  25 PagesCoca-Cola in Great Britain Live On The Coke Side of Life Table of Contents Introduction 3 PESTLE Analysis of the macro-environment 4 SWOT Analysis 5 BCG Matrix 6 SPICC 7 Suppliers 7 Publics 7 Intermediaries 7 Competition 8 Customers, consumers and markets 10 Soft Drinks Market 10 Table 1: Soft Drinks UK Market Segmentation 11 Market for smoothies 12 Table 2 : Forecast of UK retail sales of smoothies, 2001-11 13 Table 3 :Brand manufacturers sales of the smoothiesRead MoreInnocent Drinks5432 Words   |  22 Pagesmarketing industry. Inclusion requires a mix of powerful marketing, a famous brand, a big budget, influence, quality and entrepreneurship. Swot analysis Strengths: Innocent is a leading player in the UK’s smoothie market since 2004, which has total revenue of  £16.7 million during the fiscal year ended December 2004 (Innocent, 2006). Drawing upon Financial Times (2006) it can be suggested that the company’s strong commitment to new product development and its ability to respond quickly to trends in