This ratio includes the total assets with the highest accounts such as cash,short-term investments, and accounts receivable and current liabilities.... Current ratioCurrent ratio is also
Trang 1BUSINESS ENVIRONMENT
TOPIC
“FINANCIAL RATIOS ANALYSIS AND COMPARE OF THE KRAFT HEINZ AND OATLY GROUP AB”
Teacher: Nguyen Thi Que Anh
Course code: ACC101
Student: Trần Thái Gia Bảo – SS180981
Lê Quốc Huy - SS180977
Đào Ngọc Vinh Quang – SS180968
Quỳnh – SS
Trang 2Currently, the demand for a company's financial information are diverse, which requiring financial analysis to meet the needs of interested audiences Analyzing financial ratios is an important part of assessing a business's performance, financial health, and forecasting its future financial position Financial ratios allow
us to compare different aspects of a company's financial statements with those
of other businesses across the industry to see its dividend payout and debt serviceability Analysis of financial indicators not only determines the existence and development of enterprises, but it also has a strong impact on the economy From the above practice, the objective of this assignment is "“analyze and compare the financial ratios of The Kraft Heinz Company and Oatly Group AB and
Trang 41 The Kraft Heinz Company
The Kraft Heinz Co engages in the manufacture and market of food and beverage products The firm operates through the following geographical segments: United States, Canada and International The company was founded
on July 2, 2015, and is headquartered in Pittsburgh, PA
2 Oatly Group AB
Oatly Group AB operates as an oat drink firm Its core technical advancements enabled it to unlock the breadth of the dairy portfolio, including alternatives to milk, ice cream, yogurt, cooking creams and spreads The firm’s geographical segments include EMEA, Asia, and Americas The company was founded by Björn Öste in 1994 and is headquartered in Malmö, Sweden
3 Objective
The general objective of this assignment is to analyze the financial and compare the financial ratios of these two companies from the period 2020-2022 In addition to find out the potential, business performance as well as financial risk From there, to give recommendations to relevant stakeholders with their decision in the future In this assignment, we use the method comparing financial statements for the last three years of two companies including: Balance Sheet, Income Statement This method can analyze and evaluate changes in the company's operations, asset structure, capital sources, and grasp financial trends in the future We also use the chart method to reflect financial data, describe trends, and volatility of financial indicators
B Financial analysis ratios
I Liquidity ratios
1 Acid-test ratio
Acid-test ratio tells the financial constraints of a company's good or not In other words, the ratio indicates whether a company has enough current assets to pay off the term of its accounts without having to sell inventory This ratio includes the total assets with the highest accounts such as cash, short-term investments, and accounts receivable and current liabilities
Trang 5Current ratio
Current ratio is also known as short-term payment ratio, is an indicator that shows the ratio between current assets and current liabilities, expressed in times Current ratio will show whether the company's current short-term assets are sufficient to cover short-term liabilities From there, managers can evaluate the efficiency of using assets of the company to make capital mobilization decisions in case current short-term assets are not enough to pay debts
I
Profitability ratios
0
1
2
3
4
5
6
7
8
9
10
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8
Chart Title
Total
Current liabilities (Billions of USD)
Acid-test ratio
0 100 200 300 400 500 600 700 800
0 0.5 1 1.5 2 2.5 3
Chart Title
Total Current liabilities (Millions of USD) Acid-test ratio
2020 2021 2022
0
2
4
6
8
10
12
0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6
The Kraft Heinz Company
Current assets (Billions of USD)
Current liabilities (Billions of USD)
Current ratio
2020 2021 2022 0
100 200 300 400 500 600 700 800 900
0 0.5 1 1.5 2 2.5 3 3.5
Oatly Group AB
Current assets (Millions of USD) Current liabilities (Millions of USD) Current ratio
Trang 6Gross profit margin ratio, also known as gross margin ratio, is an important indicator of the profitability of a business This indicator is calculated as a percentage and shows how much gross profit the business generates for each dollar of revenue generated
Trang 7Net profit margin
Net profit margin measures how much net income is generated relative to the revenue received, expressed as a percentage This metric helps investors gauge the performance of a business that it is generating enough profit from sales In other words, net profit margin helps to reflect the financial health of the business that how much profit after tax for a dollar of sales
3 Return on asset
Return on assets, also known as ROA, is the ratio of
net return on total assets, expressed as a percentage
It represents the ratio of net profit after tax to the
average value of assets of the business The manager
can evaluate with 1 VND of initial investment how
much profit the company can generate after tax as
well as how they can evaluate the efficiency of using
assets of the business
2020 2021 2022
-0.8 -0.6 -0.4 -0.2 0 0.2 0.4 0.6
-300.00 -250.00 -200.00 -150.00 -100.00 -50.00 0.00
Oatly Group AB
Net Income (Billions of USD) Average Total Asset
2020 2021 2022 0
0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8
0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00
Oatly Group AB
Gross profit (Billions of USD) Revenue (Billions of USD) Gross profit margin
2020 2021 2022
0
5
10
15
20
25
30
28.00 29.00 30.00 31.00 32.00 33.00 34.00 35.00 36.00
The Kraft Heinz Company
Gross profit (Billions of USD)
Revenue (Billions of USD)
Gross profit margin
Trang 8Return on equity, or ROE, is the rate of profit on equity, expressed as a percentage This is a measure of how much profit each dollar spent This index shows the effectiveness of investors' investments in the company and its ability to compete with its competitors in the same industry
Growth rate
1 Asset growth
Asset growth rate is the change in assets of the current year compared to the previous year as a percentage Asset growth rates can gauge a company's performance and predict future performance
2020 2021 2022
-0.8 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8 1
-200.00 -180.00 -160.00 -140.00 -120.00 -100.00 -80.00 -60.00 -40.00 -20.00 0.00
Oatly Group AB
Net Income (Billions of USD) Equity (Billions of USD) Return On Equity
2020 2021 2022
0
10
20
0.00 1.00 2.00
Net Income (Billions of USD)
Equity (Billions of USD)
Return On Equity
2020 2021 2022
0
20
40
60
80
100
120
0.00 0.50 1.00 1.50 2.00 2.50 3.00
The Kraft Heinz Company
Net Income (Billions of USD)
Average Total Asset
Return On Asset
Trang 9Revenue growth
Revenue growth refers to the increase in a company's sales between periods and years, expressed as a percentage This ratio shows how much a company has increased its revenue over a period compared
to the previous period
2020 2021 2022 0
0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8
-1 -0.5 0 0.5 1 1.5
Oatly Group AB
Beginning Assets (Billions of USD) Ending Assets (Billions of USD) Assets Growth rate (%)
2020 2021 2022
84
86
88
90
92
94
96
98
100
102
104
-0.07 -0.06 -0.05 -0.04 -0.03 -0.02 -0.01 0
The Kraft Heinz Company
Beginning Assets (Billions of USD)
Ending Assets (Billions of USD)
Assets Growth rate (%)
Trang 10Net profit growth
The growth rate of net profit is the percentage of net profit earned by the company; in other words, this ratio is an indicator of the true profitability of a business It compares profit growth over periods
or years, to gauge the company's business performance
IV
IV
IV
IV
IV
IV
IV
IV
IV
Turnover ratios
1 Receivable turnover and Days sales receivable
Asset turnover ratio, also known as total asset turnover ratio, is a financial cycle and is a measure of the efficiency in operating and developing a business When enterprises invest assets in production and business activities, this ratio will show how much cash flow the business invests in each cash flow will generate revenue
2020 2021 2022 0
0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8
0 0.2 0.4 0.6 0.8 1 1.2
Oatly Group AB
Beginning Revenue (Billions of USD) Ending Revenue (Billions of USD) Revenue Growth rate (%)
2020 2021 2022
24
24.5
25
25.5
26
26.5
27
-0.02 -0.01 0 0.01 0.02 0.03 0.04 0.05 0.06
The Kraft Heinz Company
Beginning Revenue (Billions of USD)
Ending Revenue (Billions of USD)
Revenue Growth rate (%)
2020 2021 2022 0
0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8
0 0.2 0.4 0.6 0.8 1 1.2
Oatly Group AB
Beginning Revenue (Billions of USD) Ending Revenue (Billions of USD) Revenue Growth rate (%)
2020 2021 2022
24
24.5
25
25.5
26
26.5
27
-0.02 -0.01 0 0.01 0.02 0.03 0.04 0.05 0.06
The Kraft Heinz Company
Beginning Revenue (Billions of USD)
Ending Revenue (Billions of USD)
Revenue Growth rate (%)