FINANCIAL REPORTING REGULATIONS

Financial Reporting Regulations

PART ONE: FINANCIAL ANALYSIS OF BRITVIC PLC WITH COCA COLA

Brief Introduction of Britvic Plc

Britvic is a branded soft drinks business group based in the United Kingdom. Co. and its subsidiaries are engaged in the soft drinks manufacturing and distribution industry. Co. maintains a manufacturing base both in the United Kingdom and Ireland, producing carbonates, stills and plain water in both countries. Co.'s core brands include: Robinsons, Tango, Drench, J2O and Fruit Shoot as well as PepsiCo brands such as Pepsi and 7UP. Co. produces soft drinks in the island of Ireland with brands such as MiWadi and Ballygowan, and in France with brands such as Teisseire and Fruite. Co. maintains its principal executive office in Chelmsford, United Kingdom. In addition, Co. has offices in Chelmsford, Dublin, Solihull and Tamworth. Co. also has factories in Ballygowan, Beckton, Dublin, Huddersfield, Leeds, Norwich, Rugby and Widford. Co. also has a distribution center in Lutterworth. Co. has production sites in Crolles, La Roche Sur Foron, Chateau Thebaud and Nissan Lez Enserune, France.

Brief Introduction of Coca-Cola Plc

Coca-Cola is a bottler of carbonated soft drinks. The principal activity of the Group is to prepare and package, for exclusive distribution and sale, specified trademarked beverages of The Coca-Cola Company.

Ratio Analysis of Britvic Plc and Comparison with Coca-Cola Plc

Profitability Ratios Analysis

Profitability Ratios

Britvic Plc

Coca-Cola Plc

Gross Margin

55.07

34.45

Operating Margin

-0.22

2.2

EBITDA Margin %

-2.53

1.8

ROA %

-4.99

-0.31

ROI %

-0.5

-0.99

Profitability ratios explain the performance of an organization in terms of the profit it earns. They include ROA, ROI, Gross Margin Operating Margin and EBITDA Margin %. The profitability ratio analysis of Britvic Plc shows worst position of the company in terms of profitability a comparison with Coca-Cola Plc.

Asset Management Ratios Analysis

Asset Management Ratios

Britvic Plc

Coca-Cola Plc

Total Asset Turnover

1.18

0.56

Receivables Turnover

6.46

4.72

Inventory Turnover

7.52

11.07

Property Plant & Equip Turnover

4.72

1.29

Cash & Equivalents Turnover

23.91

17.98

Asset management ratios, explain the performance of an organization, they include Total Asset Turnover, Receivables Turnover, Inventory Turnover, Accounts Payable Turnover, Accrued Expenses Turnover, Cash & Equivalents Turnover and Property Plant & Equip Turnover. The Asset management ratios o of Britvic Plc shows the better performance of company in terms of asset management as comparison with Coca-Cola Plc.

Debt Management Ratios Analysis

Debt Management Ratios

Britvic Plc

Coca-Cola Plc

Long Term Debt/Equity

Equity<0

0.34

Long Term Debt as % of Invested Capital

105.69

23.47

Accounts Payable Turnover

5.34

7.38

Accrued Expenses Turnover

48.18

15.25

Debt management, also termed as leverage, portrays the organizational financing policies. It reflects the way an organization raises funds for investments and other organizational purposes. They Include LT Debt to Equity, Total Debt to Equity and Interest Coverage. The Debt Management ratio of Britvic Plc shows bad performance of the company in terms of debt management as a comparison with Coca-Cola Plc.

Liquidity Ratios Analysis

Liquidity Ratios

Britvic Plc

Coca-Cola Plc

Quick Ratio

0.67

0.83

Current Ratio

1

1.16

Net Current Assets as % of Total Assets

-0.03

2.54

Free Cash Flow per Share

0.39

 

Revenue to Assets

1.09

0.59

Liquidity ratios enable the organizational management to analyze their position to meet the day-to-day requirements of the organization and to pay off its short-term debts. They include Quick Ratio, Current Ratio, Net Current Assets % TA. The liquidity ratios of Britvic Plc show a bad performance of the company ...