Fosters Accounting Assignment :: essays research papers

I.     EXECUTIVE SUMMARY.Founded in 1888, sustains mathematical group is the proceeds of a long history of amalgamations. Nowadays, regarded as a amplitude planetary multi-beverages company, Fosters group possesses three main operating munition Beringer Blass Wine Estate, Carlton and United Beverages, Fosters Brewing International. The group delivers premium branded beers, wine spirits and entertainment products. With US$5.2 billion in total operating revenue, Fosters groups operates in Australia, New Zealand, China, California, Italy, Chile, Vietnam, India and Fiji. Besides, its products are sold in over 150 countries round the world.The report has analyzed the financial performance and financial stability of Fosters Group over a three socio-economic classs flowing that is from 2002 to 2004 included.The Ratio Analysis technique was used to conduct the report. Therefore, comparison with assiduity averages and Coca dummy Amatil supplemented the analysi s to complement the results.In 2002, it was found that favorableness had increased significantly compared to 2001, this was mainly collectable to Fosters group policy in expending its distribution and sales worldwide and Forsters European partnership which increased its income.However, 2003 showed smaller receiptsability than 2002 mainly collectible to a non profitable foreign exchange rate, tough competition in California, adverse trading conditions in the US and the impact of global events confine travels, tourism and leisure activities (Swan, 2003 5). Fosters group did however bring greater amount of operating cash flows, and made a great amount of acquisitions.In 2004, Profitability ratios did however increase but that was due to the selling off of ALH (Australia Leisure Hospitality) that fork overd $1.5 billion, Excluding the impact of significant items, net profit after tax was $469.4 million, a decrease of 17.4% over the previous years result (Fosters Audit, 200461).O n the three year basis, when compared to the industry averages, the stability ratios are actually lower, but when they are compared to Coca Cola Amatil the ratios are actually similar and even a bit higher. due to the accumulation of consistent profits over the years, both companies do non need as much financial leverage as separate companies would, which reflects the stability of the company. In fact, those companies rely more on equity than debt to generate their assets.Overall, Fosters group is a relatively stable and performing enterprise. The results show that Fosters performance and stability have go in accordance to outside world events. However, the company continues to maintain its correct as a leading group in the beverages industry.II.     QUALITY, SCOPE, USEFULNESS,FORMAT AND READABILITY OF THE nigh RECENT ANNUAL REPORT.