FINANCIAL MANAGEMENT (AFN10103)

1.1 INTRODUCTION

1.1.1 Company logo

1.1.2 Profile and background of the company

Heineken Malaysia Berhad’s (HEINEKEN Malaysia) history in the country dates back to 1964,
and the Company’s shares have been listed on the Main Market of Bursa Malaysia since 1965.
HEINEKEN Malaysia is 51% owned by GAPL Pte Ltd (GAPL) and 49% by the public. The
Company’s name was changed to Heineken Malaysia Berhad on 21 April 2016 following
Heineken NV’s acquisition of Diageo Plc’s stakes in GAPL in October 2015. GAPL is now a
subsidiary 100% owned by Heineken NV, the world’s most international brewer. HEINEKEN
Malaysia also produces the wholesome, premium quality non-alcoholic Malta. HEINEKEN
Malaysia’s brand portfolio also includes the No. 1 German wheat beer Paulaner and Japan’s
No. 1 100% malt beer Kirin Ichiban.HEINEKEN Malaysia employs approximately 600 people at
our headquarters and brewery in Petaling Jaya, Selangor, as well as 13 sales offices throughout
Peninsular and East Malaysia.

1.1.3 Business activities

The company was incorporated on 24 January 1964 under the name of Guinness Malaysia
Limited (GML). GML operates the Sungai Way Brewery which started operations in 1965.
Located in Selangor, the brewery occupies a land area of 23.72 acres (96,000 m2). On 15 April
1966, its name changed into Guinness Malaysia Berhad (GMB) which was maintained until 15
November 1989. The company evolved from the merger of Guinness Malaysia Berhad and
Malayan Breweries (Malaya) Sdn Bhd (MBM) in 1989, whose parent companies were Guinness
Overseas Ltd and Malayan Breweries Ltd (the present Asia Pacific Breweries Limited)

FINANCIAL STATEMENT ANALYSIS

FINANCIAL MANAGEMENT (AFN10103)

respectively. Following the merger, a new joint venture company was formed with GAPL Pte Ltd
as the holding company of Guinness Anchor Berhad (GAB) whilst MBM became a dormant
wholly owned subsidiary of GAB. Heineken Malaysia Berhad produces, packages, markets and
distributes beer under the Guinness Stout, Anchor Special Beer, Anchor Pilsener Beer, Lion
Stout, Anchor Beer, Anchor Ice Beer, Tiger Beer, Heineken Beer, Anglia Shandy, and Malta.
Through its subsidiaries, the Company also has operation in property holding and land
development.

Competitors

The brewery industry in Malaysia is dominated by two companies. Heineken Malaysia is the
market leader with a 60% market share of the local market. Its closest competitor is Carlsberg
Brewery Malaysia Berhad which distributes popular brands like Carlsberg, Asahi, and Corona.
The two companies share strong similarities: Carlsberg Malaysia also has a long history as a
listed company on Bursa Malaysia. Likewise, it is a subsidiary of Carlsberg A/S, a global
alcoholic beverage powerhouse. However, unlike Heineken Malaysia, Carlsberg Malaysia has a
more international business as it distributes to both Singapore and Brunei

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FINANCIAL MANAGEMENT (AFN10103)

1.2 FINANCIAL ANALYSIS

1.2.1 What is financial analysis?

Financial analysis is assessment of firm’s about past, present and future performance. It is
looking at historical performance to estimate future performance. The analysis based on the
firm’s financial statement.

1.2.2 Explain the objective financial analysis

The objective of financial analysis is to understand and diagnose the information contained in
financial statement with a view of judge the profitability. And also to compare the present
performance with past performance. It also to compare the performance of the company with
other firms.

1.2.3 What are the financial statement involve in preparing the financial analysis?

The preparation of financial statements, such as income statements, balance sheets, and cash
flow statements.

1.2.4 Who are the users of financial statement?

The users of financial statement has two which is internal auditor and external auditor. Internal
auditor which is CEO, financial manager, employees, existing shareholder, External auditor
which is potential investors, creditors, governments and auditor. Employees, a company may
elect to provide its financial statements to employees, along with a detailed explanation of what
the documents contain. Secondly, customers. When a customer is considering which supplier to
select for a major contracts, it wants to reviews their financial statements first, in order to judge
the financial ability of a supplier to remain in the business. Thirdly, suppliers. Suppliers will
require financial statements in order to decide whether it is safe to extend credit to a company.
Last but not least, investors. Investors will likely require financial statements to be provided,
since they are the owners of the business, and want to understand the performance of their
investment.

FINANCIAL STATEMENT ANALYSIS

FINANCIAL MANAGEMENT (AFN10103)

1.2.5 Calculate the ratio (HEINEKEN)

Formula 2017 2018

Current Ratio Current Ratio Current Ratio
Current A ssets 582,015 604,199
¿ ¿ ¿
Current Liabilities 477,790 ¿ 535,572 ¿
¿1.22׿ ¿1.13׿
Quick Ratio Quick Ratio Quick Ratio
Current A ssets−Inventory 582,015−66,899 604,199−90,037
¿ ¿ ¿
Current Liabilities 477,790 ¿ 535,572 ¿
¿ 1.08׿ ¿ 0.96׿
Inventory Turnover Inventory Turnover Inventory Turnover
COGS 1,267,191 1,375,871
¿ ¿ ¿
Inventories 66,899 ¿ 90,037 ¿
¿18.94׿ ¿15.28׿
Average Collection Period Average Collection Period Average Collection Period
Account Receivables 483,885 491,986
¿ x 365 ¿ x 365 ¿ x 365
Sales 1,929,963 2,029,672
¿ 91.51days ¿ 88.47 days
Debt Ratio Debt Ratio Debt Ratio
Total Liabilities 507,265 569,176
¿ x 100 % ¿ x 100 % ¿ x 100 %
Total Assets 867,780 940,323
¿58.46 % ¿ 60.53%
Time Interest Earned Ratio Time Interest Earned Ratio Time Interest Earned Ratio
Operating Profit 363,174 380,764
¿ ¿ ¿
Interest Expenses 4294 ¿ 3619 ¿
¿ 84.58׿ ¿105.21׿
Gross Profit Margin Gross Profit Margin Gross Profit Margin
Gross Profit 662,772 653,801
¿ x 100 % ¿ x 100 % ¿ x 100 %
Sales 1,929,963 2,029,672
¿ 34.34 % ¿ 32.21 %
Net Profit Margin Net Profit Margin Net Profit Margin
Net Profit 270,058 282,520
¿ x 100 % ¿ x 100 % ¿ x 100 %
Sales 1,929,963 2,029,672
¿ 13.99 % ¿ 13.92 %
Return OnTotal Assets Return OnTotal Assets Return OnTotal Assets
Net Profit 270,058 282,520
¿ x 100 % ¿ x 100 % ¿ x 100 %
Total Assets 867,780 940,323
¿31.12 % ¿30.04 %
ReturnOn Equity Return On Equity ReturnOn Equity

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FINANCIAL MANAGEMENT (AFN10103)

Net Profit 270,058 282,520

¿ x 100 % ¿ x 100 % ¿ x 100
Total Equity 360,515 371,147
¿74.91 % ¿76.12 %

FINANCIAL STATEMENT ANALYSIS

FINANCIAL MANAGEMENT (AFN10103)

1.2.6 Ratio Analysis (HEINEKEN)

Current Ratio

1.24

1.22

1.2

1.18

1.16

1.14

1.12

1.1

1.08
2017 2018

Current ratio for company Heineken in the year 2017 is 1.22 times, while in the year 2018 is
1.13 times. The differences between the 2 years is 0.09 times. Current ration in the year 2017 is
better than 2018.

Quick Ratio
1.1

1.05

0.95

0.9

0.85
2017 2018

Quick ratio for company Heineken in the year 2017 is 1.08 times, while in the year 2018 is 0.96
times. The differences between the 2 years is 0.12 times. Quick ratio in the year 2017 is better
than 2018.

Inventory Turnover

20
18
16
14
12
10
8
6
4
2
0
2017 2018

Inventory turnover for company Heineken in the year 2017 is 18.94 times, while in the year 2018
is 15.28 times. The differences between the 2 years is 3.66 times. Inventory turnover in the year
2017 is better than 2018.

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FINANCIAL MANAGEMENT (AFN10103)

Average Collection Period

92

91

90

89

88

87

86
2017 2018

Average collection period for company Heineken in the year 2017 is 91.51days, while in the
year 2018 is 88.47 days. The differences between the 2 years is 3.04 days. Average collection
period in the year 2018 is better than 2017.

Debt Ratio
61

60.5

60

59.5

59

58.5

58

57.5

57
2017 2018

Debt ratio for company Heineken in the year 2017 is 58.46%, while in the year 2018 is 60.53%.
The differences between the 2 years is 2.07%. Debt ratio in the year 2018 is better than 2017.

Time Interest Earned Ratio

120

100

80

60

40

20

0
2017 2018

Time interest earned ratio for company Heineken in the year 2017 is 84.58%, while in the year
2018 is 105.21%. The differences between the 2 years is 20.63%. Time interest earned ratio in
the year 2018 is better than 2017.

FINANCIAL STATEMENT ANALYSIS

FINANCIAL MANAGEMENT (AFN10103)

Gross Profit Margin

35

34.5

34

33.5

33

32.5

32

31.5

31
2017 2018

Gross profit margin for company Heineken in the year 2017 is 34.34%, while in the year 2018 is
32.21%. The differences between the 2 years is 2.13%. Gross profit margin in the year 2017 is
better than 2018.

Net Profit Margin

14

13.98

13.96

13.94

13.92

13.9

13.88
2017 2018

Net profit margin for company Heineken in the year 2017 is 13.99%, while in the year 2018 is
13.92%. The differences between the 2 years is 0.07%. Net profit margin in the year 2017 is
better than 2018.

Return On Total Asset

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FINANCIAL MANAGEMENT (AFN10103)

31.4

31.2

31

30.8

30.6

30.4

30.2

30

29.8

29.6

29.4
2017 2018

Return on total asset for company Heineken in the year 2017 is 31.12%, while in the year 2018
is 30.04%. The differences between the 2 years is 1.08%. Return on total asset in the year 2017
is better than 2018.

Return On Equity
76.5

76

75.5

75

74.5

74
2017 2018

Return on equity for company Heineken in the year 2017 is 74.91%, while in the year 2018 is
76.12%. The differences between the 2 years is 1.21%. Return on equity in the year 2018 is
better than 2017.

1.1 INTRODUCTION

FINANCIAL STATEMENT ANALYSIS

FINANCIAL MANAGEMENT (AFN10103)

1.1.1 Company logo

1.1.2 Profile and background of the company

Founded in December 1969, Carlsberg Brewery Malaysia Berhad (Carlsberg Malaysia) began
brewing Carlsberg Green Label beer locally in 1972. Since then, the brand has become very
popular amongst Malaysian beer consumers and many would say it’s probably the best beer in
the country. Carlsberg Malaysia is an established brewery that manufactures and distributes
beers, stout and other malt-based beverages. Sales and distribution of brands are carried out by
its subsidiaries Carlsberg Marketing Sdn. Bhd. in Malaysia, Carlsberg Singapore Pte. Ltd. in
Singapore and an associated company Lion Brewery (Ceylon) PLC in Sri Lanka.

1.1.3 Business activities

Carlsberg Malaysia offers a wide range of interesting and international brands, such as
Carlsberg Smooth Draught, Carlsberg Special Brew and SKOL. It also offers premium brands
such as Kronenbourg 1664 Blanc, Somersby Apple and Blackberry Cider, Asahi Super Dry, and
Corona Extra, as well as stouts such as Connor’s Stout Porter and Royal Stout. Jolly Shandy
and the non-alcoholic Nutrimalt, are also favourites in the Carlsberg Malaysia portfolio. This
Carlsberg trio is complemented by a comprehensive range of international premium brews
including France’s premium wheat beer Kronenbourg 1664 Blanc, Japan’s No.1 premium beer
Asahi Super Dry, European cider Somersby, British-inspired Connor’s Stout. At Carlsberg
Malaysia Group, we are constantly guided by the ‘Golden Words’ of our founder J.C. Jacobsen:
to pursue perfection in all that we do each and every day. This sets the foundation of our
Purpose which is BREWING FOR A BETTER TODAY AND TOMORROW.

1.1.4 Competitors

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FINANCIAL MANAGEMENT (AFN10103)

Guinness Stout (Guinness Anchor Bhd) and Tiger Beer (Asia Pacific Breweries (S) Pte Ltd) are
Carlsberg Green Label’s main competitors. These two companies are ranked second and third
following competition. Carlsberg Green Label, and are considered the key competitors, as the
other beer brand shares are too far different to be comparable as Carlsberg Green Label
Malaysia is the leading brand, and has two major competitors. The key competitors that Green
Label is closely competing with are Guinness Stout (Guinness Anchor) and Tiger Beer (Asia
Pacific Breweries).

1.2.5 Calculate the ratio (CARLSBERG)

FINANCIAL STATEMENT ANALYSIS

FINANCIAL MANAGEMENT (AFN10103)

Formula 2017 2018

Current Ratio Current Ratio Current Ratio
Current A ssets 403,202 409,994
¿ ¿ ¿
Current Liabilities 319,370 ¿ 485,420 ¿
¿1.26׿ ¿ 0.85׿
Quick Ratio Quick Ratio Quick Ratio
Current A ssets−Inventory 403,202−68,412 409,994−96,723
¿ ¿ ¿
Current Liabilities 319,370 ¿ 485,420 ¿
¿ 1.05׿ ¿0.65׿
Inventory Turnover Inventory Turnover Inventory Turnover
COGS 1,148,67 1,318,062
¿ ¿ ¿
Inventories 68,412 ¿ 96,723 ¿
¿16.79׿ ¿13.63׿
Average Collection Period Average Collection Period Average Collection Period
Account Receivables 248,199 207,633
¿ x 365 ¿ x 365 ¿ x 365
Sales 1,768,223 1,982,342
¿51.23 days ¿38.23 days
Debt Ratio Debt Ratio Debt Ratio
Total Liabilities 338,959 501,526
¿ x 100 % ¿ x 100 % ¿ x 100 %
Total Assets 651,425 682,523
¿52.03 % ¿73.48 %
Time Interest Earned Ratio Time Interest Earned Ratio Time Interest Earned Ratio
Operating Profit 295,033 340,305
¿ ¿ ¿
Interest Expenses 6437 ¿ 8079 ¿
¿ 45.83׿ ¿ 42.12׿
Gross Profit Margin Gross Profit Margin Gross Profit Margin
Gross Profit 619,656 664,280
¿ x 100 % ¿ x 100 % ¿ x 100 %
Sales 1,768,223 1,982,342
¿ 35.04 % ¿ 33.51 %
Net Profit Margin Net Profit Margin Net Profit Margin
Net Profit 232,378 286,757
¿ x 100 % ¿ x 100 % ¿ x 100 %
Sales 1,768,223 1,982,342
¿ 13.14 % ¿ 14.47 %
Return OnTotal Assets Return OnTotal Assets Return OnTotal Assets
Net Profit 232,378 286,757
¿ x 100 % ¿ x 100 % ¿ x 100 %
Total Assets 651,425 682,523
¿35.67 % ¿ 42.01 %
Return On Equity Return On Equity Return On Equity
Net Profit 232,378 286,757
¿ x 100 % ¿ x 100 % ¿ x 100
Total Equity 312,466 180,997
¿74.37 % ¿158.43 %

FINANCIAL STATEMENT ANALYSIS

FINANCIAL MANAGEMENT (AFN10103)

1.2.6 Ratio Analysis (CARLSBERG)

Current Ratio

FINANCIAL STATEMENT ANALYSIS

FINANCIAL MANAGEMENT (AFN10103)

1.4

1.2

0.8

0.6

0.4

0.2

0
2017 2018

Current ratio for company Carlsberg in the year 2017 is 1.26 times, while in the year 2018 is
0.85 times. The differences between the 2 years is 0.41 times. Current ratio in the year 2017 is
better than 2018.

Quick Ratio
1.2

0.8

0.6

0.4

0.2

0
2017 2018

Quick ratio for company Carlsberg in the year 2017 is 1.05 times, while in the year 2018 is 0.65
times. The differences between the 2 years is 0.4 times. Quick ratio in the year 2017 is better
than 2018.

Inventory Turnover
18

16

14

12

10

0
2017 2018

Inventory turnover for company Carlsberg in the year 2017 is 16.79 times, while in the year
2018 is 13.63 times. The differences between the 2 years is 3.16 times. Inventory turnover in
the year 2017 is better than 2018.

Average Collection Period

FINANCIAL STATEMENT ANALYSIS

FINANCIAL MANAGEMENT (AFN10103)

60

50

40

30

20

10

0
2017 2018

Average collection period for company Carlsberg in the year 2017 is 51.23 days, while in the
year 2018 is 38.23. The differences between the 2 years is13 days. Average collection period in
the year 2018 is better than 2017.

Debt Ratio
80

70

60

50

40

30

20

10

0
2017 2018

Debt ratio for company Carlsberg in the year 2017 is 52.03%, while in the year 2018 is 73.48%.
The differences between the 2 years is 21.45%. Debt ratio in the year 2018 is better than 2017.

Time Interest Earned Ratio

47

46

45

44

43

42

41

40
2017 2018

Time interest earned ratio for company Carlsberg in the year 2017 is 45.83%, while in the year
2018 is 42.12%. The differences between the 2 years is 3.71%. Time interest earned ratio in the
year 2017 is better than 2018.

Gross Profit Margin

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FINANCIAL MANAGEMENT (AFN10103)

35.5

35

34.5

34

33.5

33

32.5
2017 2018

Gross profit margin for company Carlsberg in the year 2017 is 35.04%, while in the year 2018 is
33.57%. The differences between the 2 years is 1.47%.Gross profit margin in the year 2017 is
better than 2018.

Net Profit Margin

15

14.5

14

13.5

13

12.5

12
2017 2018

Net profit margin for company Carlsberg in the year 2017 is 13.14%, while in the year 2018 is
14.47%. The differences between the 2 years is 1.33%. Net profit margin in the year 2018 is
better than 2017.

Return On Total Asset

FINANCIAL STATEMENT ANALYSIS

FINANCIAL MANAGEMENT (AFN10103)

44

42

40

38

36

34

32
2017 2018

Return on total asset for company Carlsberg in the year 2017 is 35.67%, while in the year 2018
is 42.01%. The differences between the 2 years is 6.34%. Return on total asset in the year 2018
is better than 2017.

Return On Equity
180

160

140

120

100

80

60

40

20

0
2017 2018

Return on equity for company Carlsberg in the year 2017 is 74.37%, while in the year 2018 is
158.43%. The differences between the 2 years is 84.06%. Return on equity in the year 2018 is
better than 2017.

1.2.7 Compare the company’s performance through the ratio

FINANCIAL STATEMENT ANALYSIS

FINANCIAL MANAGEMENT (AFN10103)

Cross Section Analysis

Current Ratio
1.4

1.2

0.8

0.6

0.4

0.2

0
2017 2018

Carlsberg Heineken

Current ratio of Carlsberg was decreased by 0.41 times from 2017 to 2018. Which is 1.26 times
in 2017 and 0.85 times in 2018. Current ratio of Heineken was decreased by 0.09 times from
2017 t0 2018. Which is 1.22 times in 2017 and 1.13 times in 2018. Current ratio in 2017 of
Carlsberg is 0.04 times higher than Heineken. Current ratio in 2018 of Heineken is 0.28 times
higher than Carlsberg.

Quick Ratio
1.2

0.8

0.6

0.4

0.2

0
2017 2018

Carlsberg Heineken

Quick ratio of Carlsberg was decreased by 0.4 times from 2017 to 2018. Which is 1.05 times in
2017 and 0.65 times in 2018. Quick ratio of Heineken was decreased by 0.12 times from 2017
t0 2018. Which is 1.08 times in 2017 and 0.96 times in 2018. Quick ratio in 2017 of Heineken is
0.03 times higher than Carlsberg. Quick ratio in 2018 of Heineken is 0.31 times higher than
Carlsberg.

FINANCIAL STATEMENT ANALYSIS

FINANCIAL MANAGEMENT (AFN10103)

Inventory Turnover
20
18
16
14
12
10
8
6
4
2
0
2017 2018

Carlsberg Heineken

Inventory turnover of Carlsberg for year 2017 is 3.16 times higher than 2018 which is 16.79
times in 2017 and 13.63 times in 2018. Inventory turnover of Heineken for year 2017 is 3.66
times higher than 2018 which is 18.94 times in 2017 and 15.28 in 2018. Heineken better
performance in 2017 and 2018 compare with Carlsberg which is 2.15 higher in 2017 and 1.65 in
2018.

Average Collection Period

100
90
80
70
60
50
40
30
20
10
0
2017 2018

Carlsberg Heineken

Average collection period of Carlsberg is decreased by 13 days from 2017 to 2018 which is
51.23 days in 2017 and 38.23 days in 2018. Average collection period of Heineken is decreased
by 3.08 days from 2017 to 2018 which is 91.51 days in 2017 and 88.47 in 2018. Carlsberg
better performance for 2017 and 2018 compare with Heineken which is 40.28 lower in 2017 and
50.24 lower in 2018. A lower average collection period is generally more favourable than a
higher average collection period.

FINANCIAL STATEMENT ANALYSIS

FINANCIAL MANAGEMENT (AFN10103)

Debt Ratio
80

70

60

50

40

30

20

10

0
2017 2018

Carlsberg Heineken

Debt ratio of Carlsberg is increased by 21.45 percent from 2017 to 2018 which is 52.03 percent
in 2017 and 73.48 percent in 2018. Debt ratio of Heineken is increased by 2.07 percent from
2017 to 2018 which is 58.46 percent in 2017 and 60.53 percent in 2018. Carlsberg is better
performance in 2017 which is 6.43 lower than Heineken. Then, Heineken better performance in
2018 which is 12.95 percent lower than Carlsberg. Low debit ratio suggests greater
creditworthiness.

Time Interest Earned Ratio

120

100

80

60

40

20

0
2017 2018

Carlsberg Heineken

Times interest earned ratio of Carlsberg is decreased by 3.71 times from 2017 to 2018 which is
45.83 times in 2017 and 42.12 times in 2018. Times interest earned ration of Heineken is
increased by 20.63 times from 2017 to 2018 which is 84.58 times in 2017 and 105.21 times in
2018. Heineken is better performance in 2017 and 2018 compare to Carlsberg which is 38.75
times higher in 2017 and 63.09 times higher in 2018.

FINANCIAL STATEMENT ANALYSIS

FINANCIAL MANAGEMENT (AFN10103)

Gross Profit Margin

35.5
35
34.5
34
33.5
33
32.5
32
31.5
31
30.5
2017 2018

Carlsberg Heineken

Gross profit margin of Carlsberg is decreased by 1.53 from 2017 to 2018 which is 35.04 in 2017
and 33.51 in 2018. Gross profit margin of Heineken decreased by 2.13 percent from 2017 to
2018 which is 34.34 percent in 2017 and 32.21 percent in 2018. Carlsberg is better performance
in 2017 and 2018 which is 0.7percent and 1.3 percent higher than Heineken. A higher gross
profit margin indicates that a company can make a reasonable profit on sales.

Net Profit Margin

15

14.5

14

13.5

13

12.5

12
2017 2018

Carlsberg Heineken

Net profit margin on Carlsberg is increased by 1.33 percent from 2017 to 2018 which is 13.14 in
2017 and 14.47 in 2018. Net profit margin on Heineken is decreased by 0.07 percent from 2017
to 2018 which is 13.99 percent in 2017 and 13.92 in 2018. Heineken is better performance in
2017 which is 0.85 percent higher than Carlsberg. Then, Carlsberg is better performance in
2018 which is 0.55 percent higher than Heineken.

FINANCIAL STATEMENT ANALYSIS

FINANCIAL MANAGEMENT (AFN10103)

Return On Total Asset

45

40

35

30

25

20

15

10

0
2017 2018

Carlsberg Heineken

Return on total asset of Carlsberg is increased by 6.34 percent from 2017 to 2018 which is
35.67 percent in 2017 and 42.01 percent in 2018. Return on total asset of Heineken is
decreased by 1.08 percent which is 31.12 percent in 2017 and 30.04 percent in 2018. Carlsberg
is better performance in 2017 and 2018 which is 4.55 percent and 11.97 percent higher than
Heineken. Higher return on assets value indicates a business is more profitable.

Return On Equity
180

160

140

120

100

80

60

40

20

0
2017 2018

Carlsberg Heineken

Return on equity of Carlsberg is increased by 84.06 percent from 2017 to 2018 which is 74.37
percent in 2017 and 158.43 percent in 2018. Return on equity of Heineken is decreased by 1.21
percent from 2017 to 2018 which is 74.91 percent in 2017 and 76.12 percent in 2018. Heineken
is better performance in 2017 which is 0.54 percent higher than Carlsberg. Then, Carlsberg is
better performance in 2018 which is 82.31 percent higher than Heineken.

FINANCIAL STATEMENT ANALYSIS

FINANCIAL MANAGEMENT (AFN10103)

1.3 CONCLUSION

1.3.1 Conclusion of the analysis

In a conclusion, current ratio for company HEINEKEN in the year 2017 is 1.22 times, while in
the year 2018 is 1.13 times. The differences is 0.09 times. Current ratio for company
CARLSBERG in the year 2017 is 1.26 times, while in the year 2018 is 0.85 times. The
differences is 0.41 times. But the analysis shows that HEINEKEN performing better than
CARLSBERG. The second is quick ratio. Quick ratio for company HEINEKEN in the year 2017
is 1.08 times, while in the year 2018 is 0.96 times. The differences is 0.12 times. Quick ratio for
company CARLSBERG in the year 2017 is 1.05 times, while in the year 2018 is 0.65 times. The
differences is 0.4 times. HEINEKEN is performing better than CARLSBERG.

Inventory turnover for company HEINEKEN in the year 2017 is 18.94 times, while in the
year 2018 is 15.28 times. The differences is 3.66 times. Inventory turnover for company
CARLSBERG in the year 2017 is 16.79 times, while in the year 2018 is 13.63 times. The
differences is 3.16 times. HEINEKEN is performing well compared to CARLSBERG. Average
collection period for company HEINEKEN in the year 2017 is 91.51days, while in the year 2018
is 88.47 days. The differences is 3.04 days. Average collection period for company
CARLSBERG in the year 2017 is 51.23 days, while in the year 2018 is 38.23. The differences
is13 days. CARLSBERG is performing well compared to HEINEKEN.

Debt ratio for company HEINEKEN in the year 2017 is 58.46%, while in the year 2018 is
60.53%. The differences is 2.07%. Debt ratio for company CARLSBERG in the year 2017 is
52.03%, while in the year 2018 is 73.48%. The differences is 21.45%. HEINEKEN has a lower
debt ratio compared to CARLSBERG. Time interest earned ratio for company HEINEKEN in the
year 2017 is 84.58%, while in the year 2018 is 105.21%. The differences is 20.63%. Time
interest earned ratio for company CARLSBERG in the year 2017 is 45.83%, while in the year
2018 is 42.12%. The differences is 3.71%.

Last but not least, gross profit margin for company HEINEKEN in the year 2017 is
34.34%, while in the year 2018 is 32.21%. The differences is 2.13%.Gross profit margin for
company CARLSBERG in the year 2017 is 35.04%, while in the year 2018 is 33.57%. The
differences is 1.47%. So, CARLSBERG is performing well compared to HEINEKEN. Net profit
margin for company HEINEKEN in the year 2017 is 13.99%, while in the year 2018 is 13.92%.
The differences is 0.07% .Net profit margin for company CARLSBERG in the year 2017 is

FINANCIAL STATEMENT ANALYSIS

FINANCIAL MANAGEMENT (AFN10103)

13.14%, while in the year 2018 is 14.47%. The differences is 1.33%. So, CARLSBERG
increased in net profit margin. Return on total asset for company HEINEKEN in the year 2017 is
31.12%, while in the year 2018 is 30.04%. The differences is 1.08%. Return on total asset for
company CARLSBERG in the year 2017 is 35.67%, while in the year 2018 is 42.01%. The
differences is 6.34% So, CARLSBERG is performing better than HEINEKEN. Return on equity
for company HEINEKEN in the year 2017 is 74.91%, while in the year 2018 is 76.12%. The
differences is 1.21%. Return on equity for company CARLSBERG in the year 2017 is 74.37%,
while in the year 2018 is 158.43%. The differences is 84.06%.So, CARLSBERG perform better
than HEINEKEN.

1.3.2 Recommend which company is the best company to invest

The best company to invest is CARLSBERG. Why we choose the company to invest
because CARLSBERG is performing better. CARLSBERG and HEINEKEN is tally performed.
But in average collection period CARLSBERG have a low collection days. So it performed well.
We hope that CARLSBERG company will performed better and have a leading company in the
future.

TABLE OF CONTENT (HEINEKEN)

FINANCIAL STATEMENT ANALYSIS

FINANCIAL MANAGEMENT (AFN10103)

NO CONTENT PAGE
1.1 INTRODUCTION
1.1.1 Company logo 1
1.1.2 Profile and background of the company 1
1.1.3 Business activities 1-2
1.1.4 Competitors 2
1.2 FINANCIAL ANALYSIS
1.2.1 What is financial analysis? 3
1.2.2 Explain the objective financial analysis 3
1.2.3 What are the financial statement involve in preparing the 3
financial analysis?
3
1.2.4 Who are the users of financial statement?
4-5
1.2.5 Calculation of ratio
6-9
1.2.6 Ratio analysis

TABLE OF CONTENT (CARLSBERG)

NO CONTENT PAGE
1.1 INTRODUCTION
1.1.1 Company logo 10
1.1.2 Profile and background of the company 10
1.1.3 Business activities 10
1.1.4 Competitors 11

FINANCIAL STATEMENT ANALYSIS

FINANCIAL MANAGEMENT (AFN10103)

1.2 FINANCIAL ANALYSIS

1.2.1 What is financial analysis? 12
1.2.2 Explain the objective financial analysis 12
1.2.3 What are the financial statement involve in preparing the 12
financial analysis?
12
1.2.4 Who are the users of financial statement?
13-14
1.2.5 Calculation of ratio
14-17
1.2.6 Ratio analysis
18-22
1.2.7 Cross section analysis

1.3 CONCLUSION
1.3.1 Conclusion of the analysis 23-24
1.3.2 Recommend which company are the best company to invest 24

FINANCIAL STATEMENT ANALYSIS