Femsa Analysis

In: Other Topics

Submitted By ccalderonj
Words 1906
Pages 8
Introduction

The principal goal of this assignment is to understand the impact that the use of different set of generally accepted accounting principles (GAAP) in the Analysis of an international company’s financial statements. In this assignment we need to understand and analyze the impact of the Company FEMSA Annual Report with the two variables using on this report; Mexican pesos and U.S. Dollars.

FEMSA, the largest beverage company in Latin America, started operations in 1890. FEMSA work thru three important roots: Coca-Cola FEMSA, FEMSA Cerveza (Heiniken Mexico) and FEMSA Comercio. (See Figure 1.1.) Figure 1.1 Participation of the operations of FEMSA

Coca-Cola FEMSA represents the largest and most important bottler in Latino America and the second largest in the world, which represents the 16% of the volume around the world, this number represents the biggest bottler around the world in terms of volume (See Figure 1.2.)

Figure 1.2 Principals Bottlers in the world for Coca-Cola Company

The company has presence in Latin America, including Mexico, Brazil, Argentina, Colombia, and Venezuela to make and examples. FEMSA has had fusion with other important companies, the last 2010 FEMSA Cerveza make a fusion with Heineken, this Holland is one of the biggest beer company in the world, this fusion represents the rise of volume and presence in countries where FEMSA was not.

Figure 1.3 Presence of FEMSA in Latin America

FEMSA Comercio has had an important increased of revenue in the last years, in the past 5 years from 2,683 million of dollars to 5,028 million of dollars, OXXO it principal self-service for Comercio has risen the numbers of stores from 4,141 to 9,148 which represents the 120% of increased in the last 5 years.

All of these several variables have helped to deliver good performance for the company, as we can see the number…...

Similar Documents

Analysis

...Analysis & interpretation of financial statements – Ratio Analysis 1 Ratio Analysis Application • Ratio analysis is a means to an end. The end being to understand a company’s results for a year using its financial statements. • Ratio analysis may highlight unusual results or clarify trends, enabling various users of accounts to make informed decisions relating to the company. • For ratios to be useful, comparisons must be made - on a year to year basis, or between companies. On their own they are useless for any sensible decision making. 2 Ratio Analysis 1 Lecture example 1 How do the following users of financial statements benefit from ratio analysis? (a) Shareholders (b) Potential investors (c) Bank and other capital providers (d) Employees (e) Management (f) Suppliers (g) Government 3 Ratio Analysis Lecture example 1 (a & b) Shareholders and potential investors will use ratios to help them come to a decision on buying or selling the share of the company. (c) Banks and other providers of loan capital will assess whether further loans should be made to the company. (d) Management will use ratios to highlight weak performing areas in order to focus their attention on these areas. (e) Employees may use them as a basis for wage negotiation. (f) Suppliers may use ratios to assess creditworthiness. (g) Governments may use them for statistics or for assessing the worthiness of a government grant. 4 Ratio Analysis 2 Categories of......

Words: 1991 - Pages: 8

Analysis

...Forecasting and Valuation Analysis Our group is going to use Discounted Discount Method to calculate the value of per share about Medtronic, and we assume that the terminal year is the 6th year. Assumptions According to the 10-K, we can easily get the basic information (shown in the form below), and by using the function of equity value equal to dividend divide require cost of equity(r) minus growth rate and the assumption of the constant growth rate, we can calculate the growth rate to be 15.17%.And we also assume the number of shares outstanding to be constant in the next 6 years. | |2012 |2011 |2010 | |Number of shares outstanding |1053.9 |1077.4 |1106.3 | |Dividend to shareholders | $1,021.00 | $969.00 | $907.00 | |EPS | $3.43 | $2.87 | $2.80 | | ROE |21.14% |19.39% |21.18% | |DPS | $0.97 | $0.90 | $0.82 | |Net earing | $3,617.00 | $3,096.00 | $3,099.00 ...

Words: 419 - Pages: 2

Analysis

...Starbucks Strategy Analysis | Business Strategy | Assignement | 24/05/2010 | | | | “Making your organisation fit for purpose” Starbucks Coffe Company is the world leading brand in roasting and distributing coffee. The company owns now more than 15 000 coffee shops around the globe: it is settled in North America, Latin America, Europe, Middle-East and Asia. The diversity and depth of its offer (from smooth to extra roasted coffee, African, Arabian or Latin, and all the muffins, cookies and sandwiches) allow them to count on an international exposure that has last for many years. Still, their business tends to be flattening. And the number of competitors in their core-business market, even if the competition stays way back them, is growing constantly. Considering these facts, the objective of Starbucks is to strengthen its leadership on the market. We were then approached by Starbucks in this particular goal. In this folder, you will find an entire analysis of the external environment of Starbucks Coffee Company: the macro-environment, the competitors and market and the stakeholders’ expectations will lead to being aware of opportunities and threats. Then, we went on the study of the internal capabilities: the resources and competences, the sustained competitive advantage and the diagnosis of strategic capability that will permit us to define Starbucks’ strengths and weaknesses. [Thus, owing to the results obtained, we endeavour to recommend Starbucks......

Words: 285 - Pages: 2

Analysis

...strategy? * And consider the organisation's culture. * How has this influenced past strategies and is it likely to influence future strategy or constrain attempts to change strategy? * Beware of regarding different frameworks of analysis as distinct and separate; they relate to each other. For instance, the results of a value chain analysis could be put in the context of data from a PESTEL and 5-Forces analysis and are likely to provide more insight if they are. * Pull together your analyses and ask: 'What are the major issues that future strategy needs to address?'. * In all of this consider what information is there in all the tables, annexes and appendices? What are they and how do they relate to and inform the questions above? Step 3: Develop and Evaluate Strategic Options (Planning – Assignment B) * Use the results of these analyses as a starting point for developing strategic options. You will have begun to think of what the organisation might do during your analyses. Note these down. * But don't just rely on these. Generate more systematically other options by using some of the frameworks in part II, in particular Chapter 10, of Exploring Corporate Strategy – for example a TOWS matrix builds on a SWOT analysis that you have carried out; and Chapter 10 provides checklists of generic strategic options. * Evaluate the options by asking the following questions: * Which are most suitable in terms of the strategic position of the......

Words: 879 - Pages: 4

You Are an Investment Analysis

...You Are an Investment Analyst Jennifer Nixon Financial Accounting Accounting 557 June 16, 2013 Dr. Alfred C. Greenfield, Jr. Introduction In this paper, I am a representative from Beacon Consulting and Accounting Services. I will be performing a complete evaluation of the Pepsi and Coca Cola companies. I’ve been assigned to complete a stock market analysis that will be presented to a client as part of a professional consultation process. Background information for both companies will included in the analysis in order to provide a summary of each company. Another part of my analysis will include the examination of stock trends for both companies as well as the stock trends that will be based from the initial public offering day to January 1, 2012. I will also display current events that are surrounding both companies to better assist in the analysis. Finally, the financial statements of each company will be analyzed. After all of the information has been gathered, it will be reviewed in order to make a recommendation as to which company will be the best investment opportunity for the client. Analyze each company’s history, product / services, major customers, major suppliers, and leadership and provide a synopsis of each company. Coca Cola was founded in 1886, John Pemberton invented the first prototype of soda.   Over a century later, The Coca-Cola Company has produced more than 10 billion gallons of syrup.   The company is the world’s leading manufacturer...

Words: 3117 - Pages: 13

Analysis of the Anheuser-Busch Company

...Analysis of the Anheuser-Busch Company Report by Valanium Analysts: Chris Rigopulos, John Schneider, Jayne Tan Investment Recommendation: MARKET PERFORM December 5, 2001 BUD – NYSE (11/30/01) 52 week range Revenue (2001E) Market Capitalization Share Outstanding $43.10 $36.75 – $49.00 $14.9B $38.2 B 884.3M EPS Forecast (FYE 12/30) EPS Ratios Trailing P/E Forward P/E Leading PEG M/B Price/Sales 1999A 2000A 2001E 2002E $1.49 $1.71 $1.89 $2.09 Dividend Yield 1.67% Avg. Daily Trading Volume (3mo) 2.13M Book Value per Share (mrq) Return of Equity (ttm) Return on Assets (ttm) Est. 5 Years EPS Growth Rate Sector: Consumer/Non-Cyclical Industry: Beverages (Alcoholic) $4.83 40.39% 10.71% 11.0% BUD 23.2 20.6 1.87 8.93 3.11 Competitors Avg. 17.4 15.9 1.37 3.10 1.21 Valuation Predictions Actual Current Price Trailing P/E Valuation Leading P/E Valuation PEG Valuation M/B Valuation Price/Sales Valuation EBO (Abnormal Earnings) Valuation DCF Valuation Performance (Trailing, Annualized) Return on BUD Return on S&P 500 Return on Competitors $43.10 $32.38 $33.24 $31.48 $14.95 $16.73 $19.25 $46.87 6 mo -2.1% 18.3% - 2.9% 12 mo 24 mo -7.4% 9.9% -13.4% -10.3% 2.1% 8.9% Source: finance.yahoo.com, Valanium analysis • • Our valuations reflect a range of predictions, all falling below the current price point with the exception of the DCF estimate. However, we believe that A-B’s brand value and domestic presence are not captured within the accounting......

Words: 8333 - Pages: 34

Analysis

...purpose of this analysis is to examine a case that I have chosen written by one of my cohorts. While analyzing this case I will focus on key points from the readings to highlight how this case does, in fact, pertain to this reading and other articles that are relevant to the class. Upon conclusion of this analysis, my hope is that the reader will have a better insight of different aspects of management and management conflicts in this workplace. Case Synopsis The particular case at hand involves change in management in the workplace. When a new manager replaces a manger that has been a part of an organization for a while, conflicts can and almost always occur for the manager. The new manager in the particular case simply came in and tried to do his job. He tried to enforce the rules that were in place, but before he was there, these rules were not enforced as much. Once the rules were enforced, conflicts began to arise. After such conflicts arose, a large number of employees left. When the employees left, the star employees that stayed decided to give advice to the mew manager on his working skills and he listened. He implemented what the employees told him and there was almost an immediate change. The branch started performing even better than they were before the other employees left and even became one of the highest performing branches in the company. This case highlights several factors discussed in the readings related to this course. In this analysis I will......

Words: 1925 - Pages: 8

Analysis

...and Quantas Airways ltd. Report Review analysis the Topic Frame is: Introduction The presented report is aimed to present understanding and interpretation of different financial ratios in the context of judging the financial performance of an organization. The financial ratio revealed on the basis of different financial records and figures for a particular organization, indicates the existing status of the company. In addition to this, there are a number of different types of financial ratios for a company which are aimed to show different aspects of financial performance of the organization namely profitability, Efficiency, and financial stability of the organization for a long term. From the perspective of an investor or a share holder, it is quite crucial to have proper information regarding existing financial ratio of the company before making worthy investment within an organization (Gitman, and McDaniel 2008). In context to this, the paper shade some intensive lights over thorough interpretation of different ratios of two prominent airlines companies namely Virgin Australia Holdings Ltd, QANTAS Airways Ltd. The primary objective of the paper is to reflect financial performance of both the organizations for last two financial years (i.e. 2010 and 2011) on the basis of the interpretation and review of financial ratio of both the organizations. Analysis of financial performance The analysis of financial performance of both the......

Words: 3139 - Pages: 13

Analysis

...Harley-Davidson Case Analysis Harley-Davidson Case Analysis Rayzhaun Jones Mississippi Valley State University Strategic Management Dr. Jimmie S. Warren Abstract With the growing global economy, companies are looking for ways to improve their market share. Many excellent firms have learned how to beat their competitors through the implementation of new management, marketing, and manufacturing techniques. Harley-Davidson is one of those excellent companies whom have challenged traditional ideas. We intend to show through this case study that any company can follow Harley-Davidson’s techniques and lead them to excellence. Mission Statement “We fulfill dreams through the experiences of motorcycling by providing to motorcyclists and too the general public an expanding line of motorcycles, branded products, and services in selected market segments.” Vision Statement “Harley-Davidson is an action-oriented, international company, a leader in its commitment to continuously improve its mutually beneficial relationships with stakeholders. Harley-Davidson believes the key to success is to balance stakeholders’ interests through the empowerment of all employees to focus on value-added activities. Company Profile and Case Analysis Harley-Davidson Inc. is an American motorcycle manufacturer. Harley-Davidson specializes in the sales of heavyweight motorcycles that are designed for cruising on highways. Harleys have a distinct design and exhaust sound that have......

Words: 1011 - Pages: 5

Analysis

...CHAPTER IX STRENGTHS, WEAKNESS, OPPORTUNITIES, AND THREATS ANALYSIS Strategic planning is a tool for organizing the present on the basis of the projections of the desired future. A strategic plan is a road map to lead an organization from where it is now to where it would like to be in five or ten years.It is necessary to have a strategic plan for your organization. In order to develop a comprehensive plan for your organization which would include both long- range and strategic elements.One of the most important parts of the strategic planning process is the examination of the internal and external environment of the business. The strengths or weaknesses of the business can be seen by considering its internal environment. On the other hand, the external environment factors of the business define the threats and opportunities it will face. Strengths, Weaknesses, Opportunities, and Threats analysis can be used for all sorts of decision making and proactive thinking rather than relying in habitual or instinctive reactions in the business. Specifically, SWOT analysis is basic straight-forward model that assesses what an organization can and cannot do as well as its potential opportunities and threats. SWOT analysis is essential in a business in accomplishing its objectives and what obstacles must be overcome or minimized to achieve the desired result. It is but inevitable for business enterprises to be faced with serious problems and be burdened with critical decision......

Words: 380 - Pages: 2

Heineken Case Analysis

...International Case Analysis – Heineken Ronald J. McIntosh MG 495 Strategic Management - Winter 2014 City University of Seattle Abstract Heineken begins it story as a company in 1864 when its founder, Gerard Adrian Heineken purchased a small brewery in Amsterdam, Netherlands. Since that time, multiple generations have expanded the Heineken brand to be the third largest brewer in Europe and expanded its branding reach globally.  The company’s portfolio includes 170 international premium, regional, local and specialty beers to date and is considered one of the world’s great brewers. These premier brands are available in just about every country globally as well as being recognized as an international premium beer brand (Euromonitor International, 2012). In its branding expansion efforts, the company offers international premium, along with local, regional, specialty beers and ciders. Examples of this can be demonstrated by the acquisition of Scottish & Newcastle followed by the acquisition of FEMSA, Mexico’s second largest brewer and merging its position in the Middle East and Africa with purchases in Nigeria and Ethiopia (Euromonitor International, 2012). Key Learning Points External......

Words: 1700 - Pages: 7

Analysis

...1. EXECUTIVE SUMMARY Financial analysis is the starting point for making plans, before using any sophisticated forecasting and planning procedures. Understanding the past is a prerequisite for anticipating the future. Financial analysis is the process of identifying the financial strength and weakness of the firm by properly establishing relationship between the items of the balance sheet and the profit and loss account. Financial analysis can be undertaken by management of the firm, or by parties outside the firm, viz. owners, creditors, investors and others. The nature of analysis will differ depending on the purpose of the analyst. 1. Investors: Who invested their money in the firm’s shares, are most concerned about the firm’s earnings. They more confidence in those firm’s that show steady growth in earnings. As such, they concentrate on the analysis of the firm’s present and future profitability. They are also interested in the firm’s financial structure to that extent influence the firm’s earning ability and risk. 2. Trade creditors and financial institution: they are interested in firm’s ability to meet their claims over a very short period of time. Their analysis will, therefore, confine to the evolution of the firms liquidity position. And the financial institutions are interested in the financial statements of the borrowing concern to ascertain its short- term as well as long-term solvency and also it profitability. 3. Suppliers: On the other hand, are......

Words: 2052 - Pages: 9

Portfolio Analysis

...FINANCE PORTFOLIO ANALYSIS FINAL WORK DESCRIPTIVE ANALYSIS AND APPLICATION OF THE PORTFOLIO THEORY Abstract The main objective of the work is to construct, through application of the Portfolio theory, an efficient frontier which represents a set of portfolios with optimum risk-return ratio for ten companies from Mexican IPC. The sample used in this work is composed of the most representative companies in this index. A descriptive analysis of the behavior of the stocks included in this study is carried out using the binomial risk-return, which significantly contributes in selecting the most suitable stocks to be included in the portfolio. The work is concluded with finding an optimal portfolio for a risk adverse investor. The main conclusions from study are the poor performance of the construction sector, which holds the lowest returns, the highest risk and negative performance ratios, and the usefulness of the theory of portfolios to get a set of portfolios with higher returns and lower risk than the general Mexican IPC index that represents the market. The importance of diversification of assets is also noted. Keywords: Portfolio theory, Efficient Frontier, Risk-Return, Minimum Variance, Portfolio Contents 1. Introduction 6 1.1 Introduction 6 1.2 Goals 7 1.3 Methodology 7 1.4 Structure 9 2. Theoretical Framework 11 2.1 Risk and Return 11 2.1.1 Portfolio’s Expected Return 12 2.1.2 Portfolio Risk (Standard Deviation) 13 2.2......

Words: 17742 - Pages: 71

Analysis

...Topic Gateway Series Strategic Analysis Tools Strategic Analysis Tools Topic Gateway Series No. 34 Prepared by Jim Downey and Technical Information Service 1 October 2007 Topic Gateway Series Strategic Analysis Tools About Topic Gateways Topic Gateways are intended as a refresher or introduction to topics of interest to CIMA members. They include a basic definition, a brief overview and a fuller explanation of practical application. Finally they signpost some further resources for detailed understanding and research. Topic Gateways are available electronically to CIMA Members only in the CPD Centre on the CIMA website, along with a number of electronic resources. About the Technical Information Service CIMA supports its members and students with its Technical Information Service (TIS) for their work and CPD needs. Our information specialists and accounting specialists work closely together to identify or create authoritative resources to help members resolve their work related information needs. Additionally, our accounting specialists can help CIMA members and students with the interpretation of guidance on financial reporting, financial management and performance management, as defined in the CIMA Official Terminology 2005 edition. CIMA members and students should sign into My CIMA to access these services and resources. The Chartered Institute of Management Accountants 26 Chapter Street London SW1P 4NP United Kingdom T. +44 (0)20 7663 5441 F.......

Words: 3971 - Pages: 16

Femsa, Financial Statement Analysis

...FEMSA 2007: THE FINANCIAL STATEMENT ANALYSIS IMPACT OF DIFFERENCES IN MEXICAN AND US GAAP 1. Compute the following ratios for 2007 using the financial statements prepared using Mexican FRS and expressed in pesos. [Assume the weighted average number of shares outstanding is 17,891,000] a. Current Ratio: Current assets/Current liabilities b. Inventory Turnover: Cost of Goods Sold/Average Inventory c. Profit Margin on Sales: Net Income/Net Sales d. Debt to Assets Ratio: Total Liabilities/Total Assets e. Book Value per Share: Common Stockholders’ Equity/Outstanding Shares 2. Compute the same ratios listed in 1 using the amounts expressed in US$. What are the implications for international financial statement analysis? The importance for credit analysts to consider in reviewing Mexican financial statements is because the net effect of inflation accounting will be to produce financial statements that will not have the conservative bias of statements produced under U.S. GAAP. For example, some of the differences will show on the balance sheet where in Mexican statements all non-monetary assets are restated at current value and the disclosure requirements on Mexican statements are not as comprehensive as in the U.S. When considering the notes to the financial statements in Mexico these notes may contain information about contingent liabilities, debt maturities, and loan covenants - information of vital importance to determining the......

Words: 2287 - Pages: 10

Orphan Black | Prensa Deportiva España... | Magnet link