Key Financial Ratios : Company's Liquidity, Profitability, And Other Investment Related Ratios

• Due to the long term contracts from the government it is impacting the company’s cash flow in a negative trend.

     The brewing industry was once held to competition among many breweries in small geographic areas. That was almost a century ago. The U.S. brewing industry today is characterized by the dominance of three brewers, which I will talk about in this paper. There are many factors today that make the beer industry an oligopoly. Such factors include various advancements in technology (packaging, shipping and production), takeovers and mergers, economies of scale, barriers to entry, high concentration, and many other factors that I will cover in this paper. Over the course of the paper I will try to define an oligopoly, give a brief history of the brewing industry, and finally to show how the brewing industry today is an

Strives to be the leader in micro brewing while maintaining the core values it started with and had employee buy in even before it went” 100 % employee owned in2013” (Gorski, 2013).

The following report is a brief comparative analysis of two of Australia’s largest deposit-taking financial institutions (FI), Australia and New Zealand Banking Group Ltd. (ANZ) and Westpac Banking Corporation (Westpac). This report seeks to identify which of the FIs has a greater aggregate return per dollar of equity and thus establish the highest performer, or most profitable, of the two. The Return on Equity Model (ROE) (Koch & MacDonald,

2. List the four basic types of financial ratios used to measure a company’s performance, give an example of each type of ratio and explain its significance.

New Belgium is, however, the third-largest craft brewery in the nation, with estimated sales of over $100 million, equaling approximately 700,000 barrels of beer per year. An analysis of the craft beer industry as a whole suggests that there is continued growth potential for New Belgium. Exhibit 5.1 of the New Belgium Brewing (B) case shows that craft beer is the fastest growing segment of the U.S. alcoholic beverage market, with an increase in market share of over 100 percent from 1999-2011. It is also an industry whose customers tend to be extremely loyal, making them less likely to view craft beer as a commodity. Consequently, craft beer has a higher probability of being immune to competition from inferior goods and substitutes. This is particularly applicable to New Belgium’s target market of “beer connoisseurs” that appreciate the high quality and taste of craft beer and who include “executives, lawyers, and accountants” with the continued ability to pay higher prices for craft beer, enabling the craft beer industry to achieve gross margins of up to 30 percent (Clark & Rogler, 2013).

Compared to 2011, in 2012, interest expense increased to $360.9M (cells D33 and D34 in exhibit B). The increase was due primarily to the additional debt issued in connection with the acquisition of Pharmasset.

New Belgium harmonizes the need of the company, employees, and their families (New Belgium Brewery, 2017b). Barley, yeast, and grains are used to make beer, and the byproduct is typically discarded by other breweries. However, New Belgium collects all their spent grain and yeast and sells it to local farmers to feed livestock for $30 per semi-truckload, seven times a day (Personal Communication, 2017). This is very beneficial to the local farmers who reuse grains and yeast to feed their livestock so that money is kept within the community. Also, New Belgium points out that they are, “incredibly lucky to create something fine that enhances people’s live while surpassing [their] consumers’ expectations,” (New Belgium Brewery, 2017b). Thus, New Belgium is benefiting locals by providing world-class beer close to home.

Our corn mill and our oil-press plant primarily manufacture stock for the food industry (brewing, corn flakes production, breakfast cereals, child nutrients) but the pharmaceutical industry, and the pet food production also make use of our products.

In both cases, the need for borrowing grows rather dramatically. While the base case cumulative maximum is $99,000 in February, the 20% case is $214,752 and the 50% case is a whopping $699,252. In these latter two cases, the cumulative maximums occur in June, but the negative balances are building month by month. Not one month in the 20% and 50% scenarios has a cumulative cash surplus, although the 20% case shows a couple of months with positive cash flows.

Current Industry Analysis The Boston Beer Company’s product is a “better” beer. A better beer is defined as either a craft beer or an import, and is characterized by higher prices and quality. A craft beer is defined as one which is brewed with 100% malted barley as its grain. The major American beer companies typically use a mixture of malted barley along with other grains such as rice or corn, since these are less expensive and have less full-bodied flavors. Rivals in the better beer industry include such foreign companies as Corona, Heineken, and Guinness, as well as domestic companies such as Sierra Nevada, Pete’s, and a number of microbreweries around the country. While the beer industry overall is very rivalrous, the better beer industry is not so, as evidenced by high profit margins (the Boston

The change of the contributed capital accounts was mainly due to the repurchase of common stock which decreased the additional paid-in capital by $555.9 million and the stock-based compensation expense and exercise of stock option which increased the additional paid-in capital by $459.7 million totally.

growing cash position, absence of debt finance, and large equity balance made it difficult for a

Financial results and conditions vary among companies for a number of reasons. One reason for the variation can be traced to the characteristics of the industries in which companies operate. For example, some industries require large investments in property, plant, and equipment (PP&E), while others require very little. In some industries, the competitive productpricing structure permits companies to earn significant profits per sales dollar, while in other industries the product-pricing structure imposes a much lower profit margin. In most low-margin industries, however, companies often experience a relatively high rate of product throughput. A second reason for some of the

Beer Company 2 is a brewer of “seasonal and year-round beers with smaller production volume and higher prices” that “outsources most of its brewing activity” (pg. 120). It is financially conservative, and has undergone a “major cost-savings initiative to counterbalance the recent surge in packaging and freight costs” (pg. 120).