Foster's Accounting Assignment

I.EXECUTIVE SUMMARY. Founded in 1888, Fosters group is the consequent of a long history of amalgamations. Nowadays, regarded as a subsidy orbicular multi-beverages company, Fosters group possesses deuce-ace main operating weapons system: 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 million 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 one hundred fifty countries around the world. The report has analyzed the pecuniary performance and financial stability of Fosters Group over a three years period that is from 2002 to 2004 included. The Ratio Analysis technique was utilize to conduct the report. Therefore, comparison with industry averages and Coca Cola Amatil supplemented the digest to complement the results. In 2002, it was found that profitability had increased significantly compared to 2001, this was mainly due to Fosters group policy in expending its distribution and sales worldwide and Forsters European partnership which increased its income.

However, 2003 showed smaller profitability than 2002 mainly due to a non profitable foreign exchange rate, tough competition in California, adverse trading conditions in the US and the impact of worldwide events restricting travels, tourism and leisure activities (Swan, 2003: 5). Fosters group did that generate greater amount of operating cash flows, and do a considerable amount of acquisitions. In 2004, Profitability ratios did yet increase but that was due to the selling off of ALH (Australia unemployed Hospitality) that generated $1.5 billion, Excluding the impact of significant items, net profit after revenue enhancement was $469.4 million, a decrease of 17.4% over the previous years result (Fosters Audit, 2004:61). On the three year basis, when compared to the industry averages,... If you want to trance a full essay, order it on our website: Orderessay

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