Financial Analysis of Ab Inbev Essay

2947 Words Jul 28th, 2013 12 Pages
Financial Analysis of AB InBev
Debra Griffin
Shorter University
Managerial Accounting
ACCT 5300
Dr. Amy Austin-Savage
October 31, 2012

Financial Analysis of AB InBev
A Brief History of Anheuser-Busch
The Anheuser-Busch InBev Company (AB InBev) was established throughout the years through mergers and acquisitions. AB InBev is the largest brewery in Jupille, Belgium. They operate in North America, Latin America, South America, Europe, and Asia Pacific.
Due to political upheavals in Germany and Bohemia in 1848, many German immigrants settled in St. Louis, Missouri (“Anheuser-Busch,” 2011). Eberhard Anheuser was a trained soap maker and became part owner of the Bavarian Brewery. By 1860, he bought the investors’ shares
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The balance sheet is set up with the assets listed and tallied on the left side, while liabilities and shareholders’ equity on the right. The assets are usually listed in order of how quickly they can be converted into “real” cash. Current assets are things that the company plans to convert to cash within one year, i.e. inventory. Noncurrent assets are things that are expected to be converted to cash longer than a year. Noncurrent assets include fixed assets (not available for sale, i.e. office furniture). Liabilities are usually listed according to their due dates. Liabilities are either current or long-term. Current liabilities are debts that the company expects to pay off within a year; on the other hand, long-term liabilities are due in more than a year. Shareholders’ equity (SE) is the amount invested by the owners. SE is calculated by subtracting the company’s earnings or losses from the owner’s investment in the company’s stock (Garrison, Noreen, & Brewer, 2010). In assessing AB InBev’s balance sheet for 2011, the company had $39,046 million in revenues, a 4.6% increase, and a gross profit of $22,412 million. It is stated in the annual report that a selective price increase was taken in the last quarter in anticipation of higher commodity costs. Cost of Sales (CoS) increased by 1.6%. This increase was due; according to AB InBev in part to

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