Anheuser–Busch Companies, Inc. Kyle DeVane ACG2021 - 080

1. Annual Report Anheuser–Busch Companies, Inc.Kyle DeVaneACG2021 - 080

2. Executive Summary Anheuser – Busch experienced a reasonable growth in both sales and earnings during the 2003 financial year. http://www.anheuserbusch.com/annual/2003/complete_ar.pdf

3. Part A. Introduction • CEO : Patrick T. Stokes • Home Office: One Busch Place, St. Louis, MO 63118 • Recent end of Fiscal Year: Dec. 31, 2003 • Products: Beer, Entertainment, Packaging • Main area of Business: United States

4. Part A. Audit Report • Independent Auditors: PricewaterhouseCoopersLLP • The independent auditors for Anheuser-Busch Companies, Inc. state that all opinions are in guidance with the accounting principles practiced in the US and they state that all information has been presented fairly and accurately.

5. Part A. Stock Market Information • Recent Stock Price: $52.68 • 12 month trading range: $54.74 - $48.51 • Dividend per share: $0.83 • Date of Information: Dec. 31, 2003 • In my opinion I would tell stock holders to sell because the stocks have been vary high over the past year, rising a significant amount of money and the price now is almost as high as its been so it should go down in the near future.

6. Part B. Industry Situation & Company Plans In my opinion, Anheuser-Busch is going to continue to grow and expand all across the world. The company ended 2003 with 21 straight quarters of double-digit earnings-per-share-growth. It is their goal to be “prepared for the challenges” and continue their on going success. http://www.anheuser-busch.com/annual/2003/Letter_Shrhldr.pdf http://www.anheuser-busch.com/annual/2002/abfinalproxy.pdf

7. Part C. Income Statement Anheuser-Busch uses a Multi- step Income Statement 2003(Millions)2002 Gross Sales: $ 16320.2 $ 15686.8 Operating Income: $ 3199.3 $ 2979.7 Net Income: $ 2075.9 $ 1993.8 Gross Sales, Operating Income and Net Income all increased from 2002 – 2003.

8. Part C. Balance Sheet Assets = Liabilities + Owners Equity ALOE (in millions) 2003 14689.5 = 1857.2 + 12262.3 2002 14119.5 = 1787.2 + 12332.3

9. Part C. Statement of Cash Flows Both cash flows from operations and net income have increased from the past year. Anheuser-Busch is growing rapidly through the selling of its product (beer), Entertainment parks (Baseball, Football, Busch Gardens) & different kinds of Real Estate projects. The company’s primary source of income has been through the issue of long term debts. Over the past 2 years, cash has increased.

10. Part D. Accounting Policies All of the accounting policies used by Anheuser-Busch Companies, Inc. are authorized methods that have been approved and backed up by its investors. However, significant policies were not available or could not be found when looking for individual policies.

11. Part E. Financial Analysis Liquidity Ratios 20032002 Working Capital $1489.2 $1362.7 Current Ratio 7.63 times7.14times Receivables Turnover 23.09 times 21.41 times Avg. Days Sales Uncollected 26.38 days 24.31 days Inventory Turnover 1.52 times 1.21 times Avg. Days Inventory on Hand 61.4 days 72.3days

12. Part E. Financial Analysis Profitability Ratios 20032002 • Profit margin 1.5% 1.4% • Asset turnover .96 times .94( t ) • Return on assets 14.3% 13.9% • Return on equity 17.2% 16.4%

13. Part E. Financial Analysis Solvency Ratio Debt to Equity: 20032002 68.5 % 67.4 % or .685 times .674 times

14. Part. E Financial Analysis Market Strength Ratios 20032002 • Price/earnings per share 52.68 49.82 • Dividend yield 8.5% 7%