Bba Assignment1

Topics: Net present value, Internal rate of return, Discounted cash flow Pages: 16 (4852 words) Published: April 13, 2015
1. Introduction
Beer is the most widely consumed alcoholic beverage and it is oldest prepared beverage in the world; the beer is third most popular after water and tea. The big two breweries that are Carlsberg Brewery Malaysia Berhad(CBMB) and Guinness Anchor Berhad(GAB) in malaysia.

Strengths and weakness of Carlsberg Brewery Malaysia Berhad
The strengths of Carlsberg Malaysia are that brand image, strong financial position quality and distribution network. The Carlsberg Group has a long tradition for sponsorships that can be positively associated with Carlsberg brands. The Carlsberg Malaysia has financially powerful to be protected from the fluctuating fortunes of the Malaysian market. The weakness of Carlsberg brewery is face a largely Muslim population in Malaysia so the government has used the alcoholic drinks industry as a source of revenue generation and accordingly excise hikes are large and frequent. The cost of beer brands in Carlsberg Malaysia is getting higher, due to the consumption tax.

Strengths and weakness of Guinness Anchor Berhad
The strength of Guinness Anchor Berhad is the joint venture of the winning brands companies such Guinness, Tiger, Anchor and Heineken. In Malaysia There are five popular brands in the market which are tiger, Carlsberg, Heineken, Anchor, and Guinness. In this five brands have four is come from Guinness Anchor Berhad. Based on the pie chart below, it shows the market share for beer brewer in Malaysia. As GAB claims 59% of market share and is obviously ahead of Carlsberg, which is estimated to be at 41%.

Page 1 of 16

The weakness of Guinness Anchor Berhad and Carlsberg shared the same weaknesses which are government interference of tax control and face a largely Muslim population in Malaysia and the government has used the alcoholic drinks industry as a source of revenue generation.

2. Financial analysis

No
1
2

Financial analysis

3
4

Quick assets ratio
Average collection
period
Inventory turnover
Gross profit margin

5

Operating profit margin

6

Operating income

7
8

Total asset turnover ratio
Non-current asset
turnover ratio
Debt ratio

9
10
11

Long term debt to total
capitalization
Net profit margin

12

Return of total assets

13

Return on equity ratio

YEARS
Carlsberg Brewery Malaysia
Guinness Anchor
Berhad(CBMB)
Berhad(GAB)
2009
2010
2010
2011
0.95 :1
1.13 :1
2.17 :1
2.84 :1
75 days

55 days

50 days

52 days

16 times
0.098 or
9.8%
0.0929 or
9.29%
0.1028 or
10.28%
1.106 times

24 times
0.129 or
12.9%
0.127 or
12.7%
0.1859 or
18.59%
1.457 times

15 times
0.1508 or
15.08%
0.1511 or
15.11%
0.3099 or
30.99%
2.05 times

19 times
0.1631 or
16.31%
0.1634 or
16.34%
0.3551 or
35.51%
2.172 times

0.19 times

0.23 times

0.56 times

0.63 times

0.4533 or
45.33%
0.0828 or
8.28%
0.0733 or
7.33%
0.0811 or
8.11%
0.1485 or
14.85%

0.3739 or
37.39%
0.0856 or
8.56%
0.0980 or
9.8%
0.1428 or
14.28%
0.2278 or
22.78%

0.2892 or
28.92%
0.380 or
38%
0.1123 or
11.23%
0.2304 or
23.04%
0.3243 or
32.43%

0.2459 or
24.59%
0.3574 or
35.74%
0.0121 or
1.21%
0.0264 or
2.64%
0.3302 or
33.02%

Comparison
Financial analysis is used to analyze whether an entity is stable, solvent, liquid, or profitable enough to be invested in. When looking at a specific company, financial analysis involves extrapolating the company's past performance into an estimate of the company's future performance. I will compare 12 months ended 31 December 2010 between Carlsberg Brewery Malaysia Berhad(CBMB) and Guinness Anchor Berhad(GAB).

Page 2 of 16

1. Quick assets ratio


GAB is RM2.17 quick assets to meet every RM1.00 and CBMB is RM1.13 quick assets to meet every RM1.00 of current liabilities. That means GAB have enough cash on hand to meet accounts payable, interest expenses and other bills when they become due. The higher the ratio, the more...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Assignment1 Essay
  • Assignment1 Essay
  • Assignment1 Research Paper
  • Assignment1 Essay
  • Assignment1 Research Paper
  • Assignment1 Essay
  • BBA 6th ESBM Franchising Research Paper
  • Essay about Assignment1

Become a StudyMode Member

Sign Up - It's Free