Financial Status Of Anheuser-Busch
EXECUTIVE SUMMARY
The purpose of this document is to study the financial status of Anheuser-Busch for calendar year (CY) 2002 as compared to CY 2003. The study entailed horizontal analysis as well as other analytical measures identified in the Warren, Reeve and Fess Accounting textbook.
The company had net revenues of nearly $14.2 billion (B) for 2003, an increase of over $580 million (M) over 2002. Net income was $2.1 B, over $140 M higher than in 2002. The company's return on investment was 12.3%, significant considering an S&P 500 estimated rate was only 6% (Anheuser Busch, 2003).
The solvency of the company had equally positive indicators. Both the ratio of liabilities to stockholders' equity and inventory turnover as well as the acid-test ratio and number of days' sales in inventory were stronger in 2003.
However the profitability of the company had mixed indicators. The rate of return on assets decreased while the rate earned on stockholders' equity and earnings per share of common stock increased in 2003. However, the price-earnings (P/E) ratio decreased from 25.0 to 21.6. Although these indicators contradict, the company grew and earnings increased.
Anheuser-Busch has grown as a company from 2002 to 2003. Financial indicators show the company continues to grow in a positive direction as revenues continue to climb.
TABLE OF CONTENTS
Introduction
.. 1
Data Analysis
.. 2
Conclusion
9
References
. 10
Horizontal Analysis of Consolidated Income Statement
Attachment 1
Horizontal Analysis of Consolidated Balance Sheets
. Attachment 2
Horizontal Analysis of the...
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