Accounting and Finance for decision making of Heineken
This report “Accounting and Finance for decision making of Heineken” aims to evaluate the current performance and certain practices regarding the financial performance and the position of the brand. Determine the large operations and take the greater decision, the current values are reliable to address the cleared roles. Heineken Holding N.V. holds 50.005% of the issued share capital of the company. The object of the company under its Articles of Association is to manage as well as supervise the management of Heineken Goopy. The company provides the services and seeks the promotion of continuity regarding the stability of the manner and pressure of the best values in the sustainable areas of success.
The shares of Heineken holding company are listed on the Euronext Amsterdam. The purpose of the company is to examine the change and take the best values in terms of making clear plans regarding the change. Managing the change and taking the vulnerable parts, the business values can be addressed through the change. Exclusively of the dividends and the takes performance of the values, the current resources are examined in the change.
Income consists of exclusive of dividends and taking the detailed plans, the business operations must be recovered. This assignment represents the financial operations and the performance of the business regards the clear change and addresses the related to the business roles. The financial policies procedures, and organizational strategic roles can be addressed. It is one of the best and most reliable terms that help to raise the organizational directions.
The ratios of the company regarding the change plan can be updated in the detailed or the addressed terms through certain roles and takes the most useful eras of the business plans. The financial ratios of the company directly addressed the policies of using the greater plans and managing the instant operations. For the large growth factors and tackles the instant decisions, Heineken company focuses on higher share prices.
Read More: Accounting and Finance for Decision making of Greggs
Financial ratios:
The financial ratio analysis helps to understand the financial position as well as the performance of the company regards the change. By determining the proper policies and taking the cleared attachments, the organizational roles become applicable toward the change. Examining the change and taking the best resources, the current operations can be analyzed. The investment, liquidity, and the determination of the business resources the financial growth analysis becomes reliable.
Profitability ratios:
Two profit margin ratios:
| Gross profit margin: | 2022 | 2021 |
| Gross profit/revenue = | 28719/ 34676 = 0.828 | 21941 / 26583 = 0.825. |
The gross profit margin of the company depends on the gross profit as well as revenue of the Heineken LTD. In the year 2022, the amount of gross profit margin is higher as compared to the previous year 2021. Because the overall revenue of the company was increase in the current year. Heineken focuses on the generation of effective sales by the key exports that enforce the business policies and certain plans. Addressing the change and taking the valuable plans, the business roles will be addressed in the most useful techniques.
| Net profit margin: | 2022 | 2021 |
| Net income/revenue = | 3039 / 34676 = 0.0876. | 3535 / 26583 = 0.1329. |
The net profit margin of the company indicates the net income as well as the revenue relation towards the instant activities. For the large operations of Heineken and taking valid sources, the current applications will be reliable to take the higher sources. In the year 2021, the net profit margin of the company relates toward 0.1329 as proceeding the values.
Return ratios:
| Return on assets: | 2022 | 2021 |
| Net income / average total asset = | 3039/ 52406 = 0.0579. | 3535 / 48850 = 0.0723. |
In the return ratio, return on assets indicates the profit by the company through the generation of key assets. In the year 2021, the return on assets of Heineken company was higher a comparing to the different processes with the reliable and the specific change. Having the higher total asset amount, the role of the advanced position will be examined till the change as doing the certain values in the cleared parts.
| Return on equity: | 2022 | 2021 |
| Net income / average total equity = | 3039 / 21920 = 0.138. | 3535 / 19,700 = 0.179. |
Return on equity indicates the net income and the average total equity that leads the change and addresses the most reliable terms, to determine the organizational values and examine the financial position, the shareholder’s equity can be tackled with the examined and the most organized roles. Proceeding with the change and interacting with the most useful areas, the current function becomes useful in the cleared changes.
Liquidity ratios:
| Current ratio: | 2022 | 2021 |
| Current assets / current liabilities = | 11015/ 14,190 = 0.776. | 9578 / 12094 = 0.791. |
The liquidity ratio of Heineken company indicates that the current ratio of the business represents the current assets in the current liabilities plans to take valid and advanced forms. Examining the change and taking the most useful era, the business values will be added. Through a certain plan and taking the valid change, the business resources become familiar. Higher the change and the addressed terms, the organizational values will be updated.
| Quick ratio: | 2022 | 2021 |
| Current assets – inventory/liabilities = | 11015 – 3250 / 14,190 = 0.547. | 9578 – 2438 / 12094 = 0.590. |
The quick ratio helps to define the current assets and the inventory term stops the advanced changes. Boosting the most useful areas of success leads the greater forms, the current forms can be updated. The relationship between the asset or liability with the inventory helps to raise the success. In the year 2021, the quick ratio amount becomes higher as leading certain changes and takes the most useful area of success.
Efficiency ratios:
| Inventory turnover ratio: | 2022 | 2021 |
| Cost of goods sold / average inventory = | (5957) / 3250 = (1.832). | (4642) / 2438 = (1.904) |
The development of efficiency ratios depends on the cost of goods sold, average inventory, and the determination of certain plans as leads the change in the most useful areas of success. From the year 2022, the current operations can be examined to lead the success and take the advanced operations. Heineken company’s inventory turnover ratio increases in the year 2022 due to the growth of inventory operations.
| Asset turnover ratio: | 2022 | 2021 |
| Net sales / average total assets = | 34676 / 52406 = 0.661 | 26583 / 48850 = 0.544. |
The asset turnover ratio indicates Heineken’s net sales and the average total assets. Determining the change and leading the active parts, the organizational records will be addressed. By implementing the change and taking the cleared forms, the organizational change can proceed. The total; asset amount can be improved through the use of advanced and certain changes.
Solvency ratios:
| Debt to equity ratio: | 2022 | 2021 |
| Total debt / total shareholder’s equity = | 30486 / 21920 = 1.390. | 29150 / 19,700 = 1.479. |
The development of the solvency ratio depends on the total debt as well as the total shareholder’s equity. It proceeds the change and the entire values through the applicable terms. Managing the change and addressing the familiar parts, of the business roles can be valuable in the change. In the year 2021, the amount of debt to inquiry ratio was higher as compared to the next year due to the lower amount of the total debt.
| Debt to asset ratio: | 2022 | 2021 |
| Total debt / total assets = | 30486 / 52406 = 0.581. | 29150 / 48850 = 0.596. |
The debt-to-asset ratio indicates the business plans and the most reliable terms regarding the change through actionable and sustainable values. To gain success and address the change, the management of the business becomes valued. In the year 2021, the total debt of Heineken company was less which is why the ratio of debt to asset company decreased as the valid or the most affected terms in the cleared plans.
Investment ratio:
| Working capital ratio: | 2022 | 2021 |
| Current assets / current liabilities = | 11015/ 14,190 = 0.776. | 9578 / 12094 = 0.791. |
The ratio of working capital depends on the current assets and current laities. In the year 2022, the value of the current assets will decrease. Because it depends on certain changes and taking the detailed progress by the core actions. Evaluating the change and referring to the plan, the business role becomes valid.
| Price-earnings ratio: | 2022 | 2021 |
| Share price/earnings per share = | 81 / 4531 = 0.017. | 143 / 3662 = 0.039. |
The share price and earnings per share of Heineken LTD show the price-earning ratio of the firm. In the year 2021, the share price was 143 but in the next year, it decreased to 81 in amount. It is not a good situation for the company’s financial and reliable position in these areas. So, by developing the most updated plan and proceed the relationship with the business, the organizational changes can be reliable. It is one of the most effective and the most reliable terms to get the change.
Conclusion – Accounting and Finance:
Heineken is a company that runs its operations all over the world. From the annual report of Heineken company, it is analyzed that the current operations and the financial performance of the business are reliable to take the better changes and proceed the instant plans. For the determination of the best roles and taking the financial response, the organizational core values will be diverse. In this modern world, the management of the business will take the specific and the reliable terms as leads the greater decision.
For the collaboration of the change and to examine the success, the business decisions must be valuable. Heineken company’s income statement, balance sheet, and cash flow statement help to understand the large operations through the valuable and applicable terms. The financial ratios define the internal environment and the financial position of the company in the global market. The evaluation of sales, assets, and overall profitability affects the large intentions that take the valid resources of the business. It is one of the best and the very reliable areas for higher achievements in the future. Share price and the earnings per share are the core value that; leads to the greater position of the brand.
The evaluation of certain financial positions helps to organize the change and make the best decisions in terms of taking certain roles. Share price or earnings per share are two different elements that address the key policies and maintain the large sicario of the business. It is one of the best and the most reliable terms to add the change and take the best practices in the future. The evaluation of financial performance and determining the internal areas of success to take the valid areas toward the change in the cleared or the applicable plans. Heineken company generates a higher plan by using strong financial operations and taking the valid areas in the future.
