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Annual Report for Anheuser Busch Monique DeBusk ACG 2021.080

Annual Report for Anheuser Busch Monique DeBusk ACG 2021.080. Executive Summary.

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Annual Report for Anheuser Busch Monique DeBusk ACG 2021.080

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  1. Annual Report for Anheuser BuschMonique DeBuskACG 2021.080

  2. Executive Summary Anheuser Busch will continue to dominate the beer manufacturing and distributing market in both the U.S. and the rest of the world through their innovation in their products, investing activities, and community projects. Anheuser Busch Annual Report

  3. Introduction • Patrick T. Stokes, President and C.E.O. • Home Office: One Busch Place, St. Louis, Mo. 63118 • End of Fiscal Year: December 31, 2004 • Anheuser Busch is the largest manufacturer and distributor of beer. They also own 12 packaging and distributing centers, 9 amusement parks across the U.S., and real estate development, transportation and communications businesses. • Anheuser Busch products and services can be found in the U.S., Canada, United Kingdom, Mexico, Ireland, Italy, Argentina, and China.

  4. Audit Report • The independent auditors for Anheuser Busch consist of five non-management directors appointed by the board of directors and an outside auditing company, PricewaterhouseCoopers LLP, St. Louis, Mo. • Report of Independent Registered Public Accounting Firm: All reports present Anheuser Busch’s financial position accurately and the Management’s Report on Internal Control Over Financial Reporting was presented truthfully. The company maintained accurate and effective internal control over financial reporting. However, they feel that Internal Management has limitations that may not prevent or detect falsehoods and over time may not be as accurate because of deteriorating policies or procedures.

  5. Stock Market Information • As of 9/23/2005: • Opening Price 44.07 • Closing Price 44.03 • Day’s High 44.25 • Day’s Low 43.74 • Day’s Volume 1,371,100 • Dividend per share 0.27 • As of 9/23/2004: • Opening Price 49.49 • Closing Price 49.86 • Day’s High 49.97 • Day’s Low 49.42 • Day’s Volume 2,384,700 I think you should Hold due to decline in stock price.

  6. Industry Situation and Company Plans Anheuser Busch is looking to increase their growth in their global markets through two objectives; promoting Budweiser as the leading international beer and investing in leading local markets with good volume and profit growth potential (Anheuser Busch Website, October 4, 2005). They are also looking to create new brands and packaging to compete with the increased consumption of flavored liquors, and becoming more involved in the community through promoting responsible drinking, fighting alcohol abuse, and drunk driving (Anheuser Busch Annual Report, October 4, 2005).

  7. Income Statement The income statement is most like the multi-step format. There is an increase in gross profit, operating income, and net income which shows that over the past year, Anheuser Busch has been successful in its attempts to make its company more profitable.

  8. Balance Sheet There was an increase in all current asset accounts with the largest increase occuring in Intangible Assets of 705.3 million. All liabilities, current and longterm, increased while shareholders equity decreased by 43.6 million probably due to the economic hardships felt throughout the US.

  9. Statement of Cash Flows Over the past two years cash flows from operations was more than net income. The company is growing through the purchasing of new businesses and capital expenditures. The company’s most important source of financing is through the acquisition of treasury stock. Overall, cash increased by 37 million over the past two years.

  10. Accounting Policies Anheuser Busch’s accounting policies, relating to revenue, state that the company only recognizes revenue when title transfers or services have been rendered to unaffiliated customers. Notes to Consolidated Financial Statements:Summary of significant accounting policies, international equity investments, derivatives and other financial instruments, Harbin group acquisition, intangible assets, retirement benefits, stock option plans, debt, supplemental cash flow information, accumulated nonowner changes in shareholders equity, income taxes, contingencies, preferred and common stock, employee stock ownership plans, quarterly financial data, and business segments.

  11. Financial AnalysisLiquidity Ratios • Working Capital: 2003 (-226.9million) / 2004 (150.6 million): Anheuser Busch has increased its assets to be greater than its liaibilities. • Current Ratio: 2003 (0.88) / 2004 (0.92): Last year, Anheuser Busch was able to cover its liabilities a little bit better than in 2003. • Receivable turnover: 2003 (21.1 days) / 2004 (21.9 days): on average, it took Anheuser Busch about the same amount of days to turn receivables into cash in 2003 and 2004. • Average days’ sales uncollected: 2003 (17.3 days) / 2004 (16.7 days): it took Anheuser Busch, on average, 0.6 days less to collect on accounts recievable in 2004 than in 2003. • Inventory turnover: 2003 (14.4 days) / 2004 (14.1 days): on average, Anheuser Busch’s inventory was turned over about the same in 2003 and 2004. • Average days’ inventory on hand: 2003 (25.3 days) / 2004 (25.7 days): on average, it took Anheuser Busch the same amount of days to sell its inventory on hand in both 2003 and 2004.

  12. Financial AnalysisProfitability Ratios • Profit margin: 2003 (14.7%) / 2004 (15%): Profit margin increased by .3 cents. • Asset turnover: 2003 (1) / 2004 (1): Asset turnover remained the same. • Return on assets: 2003 (14.5%) / 2004 (14.1%): Return on assets decreased by .4 cents. • Return on equity: 2003 (76.6%) / 2004 (83.3%): Return on equity increased by 6.7 cents.

  13. Financial AnalysisSolvency Ratio • Debt to equity: 2003 (442%) / 2004 (506%): Anheuser Busch gets a large portion of their financing through creditors and in 2004 it increased its debt.

  14. Financial AnalysisMarket Strength Ratios 2004 • Price/earnings per share: 16.31 • Dividend yield: 0.61%

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