I need Someone to make a professional Power Point Presentation from my Financial Reporting and Analysis project. I want it to include all important points in the project. It should include all Ratio calculation. The power point presentation should also include an Objective and include all the important aspects of the project. I want graphs to be created, showing a tread Analysis for the ratios between the 3 years. Thank You.. See Project Below.

University of Technology, Jamaica School of Business Administration Financial Reporting Analysis (Jamaica Broiler's Group) Monday 11-1 Tutor: Mr D. Francis Abigail McBean 1307479 Shanoy Allen 1301301 Shanielle Simpson 1203743 Ramoy Hemmings 1104024 Romario Franks 1302699 This project is submitted in partial fulfilment of the requirements for the Bachelor of Business Administration degree at the University of Technology, Jamaica. Table of Contents The value, purpose and limitations of ratio analysis ........................................ 2 Comparison and Contrast of trend analysis and common-size analysis......................... 4 Company Overview of Jamaica Broilers Group.............................................. 6 Three year Detailed Years Trend Analysis & Ratio Analysis.............................. 9 Common-size analysis of the Statement of Profit and Loss, Balance Sheet and Cash Flow Statement ...................................................................... ................... References ....................................................................................... Appendices ........................................................................................ Project Management Report ................................................................... Declaration of Authorship ..................................................................... Value and Purpose of Ratio Analysis In order to efficiently operate and sustain a business, it is imperative that proper planning and management is carried out. One such way that can be used to execute this is by ratio analysis. Ratio analysis may assist users of the financial information to understand financial results and trends overtime. In addition, users of financial information may also need to look beyond the information presented, hence the purpose of ratio analysis. These particular ratios are used to assess the performance of a business and evaluate its financial position by doing a comparison between the related items from the Income statement along with the Balance Sheet. Business owners and managers may use ratio analysis to identify strengths and weaknesses within the business, from which strategies and initiatives can be formed. Investors may use ratio analysis to measure results against other companies and make important decisions or judgements concerning the effectiveness of the management team. The use of ratio analysis can provide an early warning of a potential improvement or deterioration in a company's financial performance. The five major categories that analysts typically scrutinize in a company's quarterly financial reports are; the ratios of liquidity, profitability, asset management, debt management, and shareholder's fund. Limitations of Ratio Analysis The use of ratio analysis is a good tool to be used in an organization, but it also has its negative effects or impacts. Among these include; historical versus the current cost, accounting policies, interpretation, and inflation.For that of historic versus current costs, the information that is represented or stated on the income statement in current cost, some of those elements may be stated as a historical cost on the balance sheet which could vary substantially from current costs and as such, this can account for unusual ratio results. Interpretation of the ratios can be a limitation as it can be quite difficult to ascertain the reason for the results of a ratio. For example, a current ratio of 3:1 might appear to be excellent, until you realize that the company just sold a large amount of its stock to strengthen its cash position. A more detailed analysis might reveal that the current ratio will only temporarily be at that level, and will probably decline in the near future, hence the interpretation of the ratio initially evaluated would have different from the actual thing. While ratios may signal a problem, they do not indicate the cause of the problem. By themselves, ratios do not give a full indication of the performance and position of the firm. They need non-financial data such as management style, working conditions to give a more in-depth picture. Various companies may have different accounting policies for recording the same accounting transaction. As a result, comparing the ratio results of different companies may differ. For example, one company might use accelerated depreciation while another company uses straight-line depreciation, or one company records a sale at gross while the other company does so at net. In other instances, one may use the First in First out (FIFO) method of evaluating the value of its inventories while the other may use Last in First out (LIFO). Inflation may have badly distorted a company's balance sheet. In this case, profits will also be affected. Thus a ratio analysis of one company over time or a comparative analysis of companies of different ages must be interpreted with judgment. If the rate of inflation has changed for any of the years being reviewed, this can mean that the numbers are not comparable across periods. For instance, if the inflation rate was 80% in 2013, sales would appear to have doubled over the preceding year, when in fact sales did not change at all. Comparison and Contrast of Trend Analysis and Common Size Analysis Before comparing each term, it is important to note what each term refers to. Trend analysis as stated by [ CITATION Gib12 \\l 9225 ] \"studies the financial history of a firm for comparison. By looking at the trend of a particular ratio, one sees whether that ratio is falling, rising or remaining relatively constant. This helps detect problems or observe good management.\" Trend analysis attempts to predict future movement of a stock based on previous information. This method involves collecting information from multiple time periods and plotting the information on a trend line to facilitate further analysis. Trend analysis intends to spot patterns in the information presented. On the other hand, common size analysis [ CITATION Rya13 \\l 9225 ] \"is simply one that is created to display line items on a statement as a percentage of one selected or common figure. Creating common-size financial statements makes it easier to analyse a company over time and compare it with peers. Using common-size financial statements helps investors spot trends that a raw financial statement may not uncover.\" There are two main reasons to use common-size analysis' to evaluate information from one period to the next within a company and to evaluate a company relative to its competitors. Trend Analysis Common Size Analysis Horizontal Analysis Vertical Analysis Presents amounts as a percentage of the base All the amounts for a given year are converted year. into percentages of a key financial component. Common size ratios are used to compare A trend analysis facilitates effective financial statements of different-size comparative study of the financial performance companies or of the same company over over a period of time. different periods. For trend analysis at years financial data least three For is essential.Broader vertical financial analysis and the comparison of two business enterprises or base the more reliable is the data and analysis two years financial data. Company Overview Jamaica Broilers Group Limited is one of the leading agricultural producers in Jamaica, with its head office located at Content, McCook's Pen, St. Catherine. The company began its operations in 1958 and for 58 years provided home-grown products at international standards through a commitment to innovation, embracing technology & on-going research. The JBG together with its subsidiaries is involved in the production and distribution of poultry products, ethanol, animal feeds, and agricultural items. The company's brands have grown exponentially over the past years to include The Best Dressed Chicken, Reggae Jammin', Hamilton's Smokehouse, Le Chic Poulet, Jamaica Egg Services, HB Oeufs, Hi-Pro, International Poultry Breeders and Wincorp International. The Jamaica Broilers Group has built a progressive, vertically-integrated company, with operations that span three countries, Jamaica, USA and Haiti. This structure ensures that they can continue to improve efficiency and quality in ways that impact the bottom line for all stakeholders. \"With God's guidance, we will efficiently manage the company to fulfill our obligations to our customers, shareholders, employees, contractors and the community at large, with an attitude of service and a commitment to truth, fairness and the building of goodwill\" is the mission of the JBG. Approach to Corporate Social Responsibility According to Baker (n.d), corporate social responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. This simply means \"how businesses give back to society by improving the life of the local community and protecting the environment\". The Jamaica Broilers Group Three Year Trend Analysis for Jamaica Broilers Group Limited Liquidity Ratios Liquidity ratio indicates a company's short term liquidity position which is the ability to meet its current obligations or the extent to which the firm can repay its current liabilities from current assets. There are three types of liquidity ratio, which includes: current, quick and operating cash flow to current liabilities. a. Current Ratio Formula Current Asset Current Liabilities Current Ratio 2013 8,332,420 4,307,308 = 1.93 2014 8,845,044 5,264,336 = 1.68 2015 10,479,569 5,564,149 = 1.88 The assessment of Jamaica Broilers current ratio for a three year period from 2013 to 2015 shows that the company has sufficient assets to meet their liability obligations because the results are above 1; even though there has been a slight decrease from 2013 to 2014 of 0.25, which increased in 2015 by 0.20. Hence, JBG is relatively liquid. b. Quick Ratio Formula Current Asset - Inventory Current Liabilities 2013 8,332,420 - 2,540,585 4,307,308 2014 8,845,044- 3,318,526 5,264,336 2015 10,479,569- 3,434,202 5,564,149 Quick Ratio = 1.34 = 1.05 = 1.26 The quick ratio, also known as acid ratio shows how current assets can be readily converted into cash without the company's inventory being considered. These results indicate that the company is in a good position to cover its liabilities using the other components of assets excluding its inventory because they are greater than 1, despite the decrease in 2014 from 1.34 to 1.05; it then increased in 2015 to 1.26. c. Operating Cash Flow to Current Liabilities Formula 2013 2014 2015 Net Cash Flow from Operating Activities Average Current Liabilities Operating Cash Flow 520,644 (4,307,308+ 4,030,825)/2 355,501 (5,264,336+ 4,307,308)/2 1,451,928 (5,564,149+ 5,264,336)/2 = 0.12 = 0.07 = 0.27 The operating cash flow ratio shows how a business's cash can pay its debts. However, Jamaica Boilers cash flow is relatively low compared to its liabilities; therefore it is seen that the company has not had enough cash to cover its liabilities during this three year period because its net cash flow from operating activities must be greater than its current liabilities. Profitability Ratios Profitability ratios are used to measure the performance of a business. The types of profitability ratios includes: profit margin, gross profit margin, operating profit, return on capital employed and return on total assets ratio. a. Net Profit Ratio/ Profit Margin Formula 2013 Profit before Tax Sales Net Profit Ratio 723,831 23,363,626 = 0.03 2014 2015 1,367,247 25,286,157 = 0.05 2,223,123 26,732,162 = 0.08 The net profit ratio also known as the profit margin ratio determines how much of sales are generated from net income before interest and tax. This ratio is used by management and creditors. Managers seek to find out where improvement is needed in order to attain upcoming goals, while creditors use the ratio to find out how much of sales can be converted to net income. As it related to Jamaica Broilers only 3%, 5% and 8% of their sales can be converted into income during 2013, 2014 and 2015, respectively. The increase over the three year period was due to the increase in both sales and net profit after 2013; however, future improvement is necessary. b. Gross Profit Margin Formula Gross Profit Sales Gross Profit Margin 2013 2014 2015 4,284,598 23,363,626 = 0.18 4,636,091 25,286,157 = 0.18 5,425,768 26,732,162 = 0.20 Gross Profit Margin is used by investors in comparing companies' ability to control their expenses. Jamaica Broilers' gross profit margin was 18% in 2013 and 2014, while 20% in 2015. The company has a stable gross profit margin which is good for the business. c. Operating Profit Ratio Formula 2013 2014 Operating Profit Sales Operating Profit Ratio 1,145,732 23,363,626 = 0.05 1,493,292 25,286,157 = 0.06 2015 2,511,117 26,732,162 = 0.09 Operating margin provides a percentage that represents the dollar amount of sales/revenue that the company has made before interest and tax. The operating margin for 2013 was 5%, and 2014 it rose by 1% to 6% then in 2015 it was 9%. This means that for every $1 of sale the business has $0.05, $0.06 and $0.09 for 2013, 2013 and 2015 to cover all non-operating expenses or fixed cost, respectively. d. Return on Capital Employed Formula 2013 Operating Profit Capital Employed 1,145,732 9,405,423 2014 2015 1,493,292 10,820,039 2,511,117 12,161,612 Return on Capital Employed = 0.12 = 0.14 = 0.21 This ratio indicates the efficiency and profitability of a company's capital investment and how much profit each dollar of capital employed generates. In 2013, capital employed was $12, it increase in 2014 to $14, then in 2015 it increased significantly by $7 which yield an outcome of $21. The continuous increase in its capital employed throughout the three years shows that Jamaica Broilers is effectively and efficiently using its capital employed and long term financing strategies to gain profits for the business. e. Return on Total Asset Formula Profit After Tax Average Total Assets Return on Total Asset 2013 2014 2015 620,082 (13,712,731+ 12,831,687)/2 = 0.05 1,306,061 (16,084,375+ 13,712,731)/2 = 0.09 1,931,475 (17,725,761+ 16,084,375)/2 = 0.12 ROA is an indication of the average return the company makes on its assets. Therefore, it measures how efficiently a company manages its assets to generate profit periodically. The result of the ROA is positive and has increased each year of the three year period, which the higher the ROA the better for the company. Jamaica Broiler ROA in 2015 had risen to 12% from its initial 5% in 2013. Cash Flow (Profitability) Formula 2013 2014 2015 Net cash flow from operating expenses/ Revenue 520,644 23,363,626 355,501 25,286,157 1,451,928 26,732,162 Cash Flow to Revenue = 0.02 = 0.01 = 0.05 Net cash flow from operating expenses/ Net Profit 520,644 620,082 355,501 1,306,061 1,451,928 1,931,475 Cash Flow Yield = 0.82 = 0.27 = 0.75 Net cash flow from operating expenses/ Average Total Assets Cash Flow to Assets 520,644 (13,712,731+ 12,831,687)/2 = 0.04 355,501 (16,084,375+ 13,712,731)/2 = 0.02 1,451,928 (17,725,761+ 16,084,375)/2 = 0.09 Net cash flow from operating expenses/Average shareholders' equity 520,644 (6,028,927+ 5,871,924)/2 3,195,984 355,501 (10,820,929+ 6,028,927)/2 8,424,928 1,451,928 (12,161,612+ 10,820,929)/2 11,491,270.5 Cash Flow on Equity = 0.09 = 0.04 = 0.13 Net cash flow from operating expenses - preference share)/ # of Ordinary Share Cash Flow per share 520,644 - 95,942 1,199,277 355,501 - 191,884 1,199,277 1,451,928 - 203,877 1,199,277 = 0.35 = 0.14 = 1.04 2.5 2 1.5 1 0.5 0 2013 2014 2015 0.25 0.2 0.15 0.1 0.05 2013 2014 2015 0 Asset Management/Activity Ratios Asset Management/Turnover/Activity ratios indicate how successfully a company is utilizing its assets to generate revenues. These ratios measure how efficiently and effectively a company is using its assets in the generation of revenues. They indicate the ability of a company to translate its assets into the sales. The Asset Management/Turnover/Activity ratios are as follows: Debtor Turnover = Credit Sales Average Debtors Day Sales Outstanding (DSO)/ Collection Period (days) = Creditors Turnover = Credit Purchases Average Creditors Payment Period (days) = Average Creditors x 360 Average Debtors x 360 Credit Sales Credit Purchases Stock Turnover = Cost of Sales Average Stock Stock Period (days) = Average Sock x 360 Cost of Sales Net Asset Turnover = Sales Revenue Total Assets - Current Liabilities The Workings for Jamaica Broilers Group Asset Management/Turnover/Activity Ratios Years Ratio 2015 2014 2013 $ 34570050 30851350 26522970 Debtors Turnover 1808569 1738452.5 1603502.5 Day Sales Outstanding(DSO)/Collectio n Period Creditors Turnover 1808569 34570050 Payment Periods(days) 3765746.5 21378688 Stock Turnover x 360 x 360 26548665 3821126 3821126 26548665 Net Asset Turnover 26732162 15674853 x360 21378688 3765746.5 21561881 5079618.5 Stock Period(days) 1738452.5 30851350 3765746.5 21378688 x 360 18668940 2974559.5 x 360 23343646 3329071 x 360 1603502.5 26522970 2974559.5 18668940 x 360 19079028 2787676 3329071.5 23343646 x 360 2787676 19079028 25286157 14741512 23363626 14741512 x 360 Jamaica Broilers Group Asset Management/Turnover/ActivityRatios Years Ratio 2015 2014 Debtors Turnover 19.11 times 17.75 times Day Sales Outstanding(DSO)/Collection Period Creditors Turnover Payment Periods(days) Stock Turnover Stock Period(days) Net Asset Turnover 2013 16.54 times 19 days 20 days 21 days 4.24 times 85 days 6.94 times 52 days 1.71 times 5.67times 63 days 7.01 times 51 days 1.72 times 6.27times 57days 6.84 times 53 days 1.77 times Analysis of Asset Management/Turnover/Activity The debtors turnover ratio shows the efficiency of a firm in collecting their credit sales. A high turnover ratio indicates that the company either operates on a cash basis or they have a very effective collection tactic. Nevertheless, a low ratio would mean the collection has a longer time frame. For the financial period of 2015 ,it can be said that the collection period was in favor of Jamaica Broilers as it was collecting its sales revenue of 19.11 times. However for 2014 and 2013 the turnover rate was much lower which showed that Jamaica Broilers took a longer time to collect their revenue, But over the 3 year period they however was able to fix that issue. The Day sales outstanding or collection period shows the average collection period in days for the accounts receivables. In 2015 Jamaica Broilers DSO was 19 days which is a decrease from 20 days in 2014 and 21 days in 2013. These therefore show that it is becoming much easier for Jamaica Broilers to collect it money owing from their debtors. Creditors turnover ratio is mainly used to show the rate by which a company is able to pay back its supplier (creditors). This ratio however tends to be of relevance to its investors as they would be able to know how frequently the company would be able to pay of its average creditor. In 2015 the amount for payments were 4.24 times while in 2014 it was 5.67 times and 2013 6.27 times. This therefore signifies that that for 2015 the company was able to increase the amount of times it pays of its suppliers , while in relation to 2014 and 2013 they took a much longer time to pay off its suppliers. Payment period in days shows the accounts payables turnover. In 2013 the payment period was 57 days while in 2014 and 2015 it was 63 and 85 days respectively. It can be said therefore that over the 3 year period there have been significant increases which means that Jamaica Broilers does not have control over its account payable payment period. Stock turnover measures the frequency at which a company's stock is used or sold with a particular period. The higher the turnover ratio the better it is this means that the company does not have stock being stored for long periods of time. For the three year period being examined in 2015 the turnover ratio was 6.94 in relation to 7.01 and 6.84 for 2014 and 2015 respectively. This therefore shows that Jamaica Broilers is able to control the movement of its stock and is replenishing stock when needed very well. Also based on calculation and analysis it also shows that for stock period it has also been held steady with it being 52, 51 and 53 for the years 2015, 2014 and 2013 respectively. The net asset turnover of a company measures how well the company is able to use its assets to produce revenue. For the three year period there has been a constant rate in the net asset turnover. For 2015 it was 1.71,2014 was 1.72 and for 2013 it was 1.77. This also means that there has been a constant rate for sales based on the net assets of the company (Jamaica Broilers) Shareholder funds / Market Value Ratios Ratios Names 2013 2014 2015 Dividen d Yield Dividend per Share Market Price per Share 167899/119927 7 4.55 = 1,095,064 / 1199277 = 91.31 191884/119927 7 5.00 203877 / 1199277 4.75 Earnings per Share Profit after Tax - Preference Share Dividend # of Ordinary Shares 957283 / 1199277 = 79.82 1,036,168 / 1199277 = 86.40 Dividen d Cover Profit after Tax - Preference Share Dividend Ordinary Dividend 1,095,064 / 167899 = 6.52 957283 / 191884 = 4.99 1,036,168 / 203877 = 5.08 Price Earnings Market Price per Share Earnings per Share 4.55 91.31 5.00 79.82 4.75 86.40 Market to Book Value Market Price per Share Book Value per Share 4.55 9,526,169 / 1199277 5.00 10,521,218 / 1199277 4.75 11,396,414 / 1199277 Market value ratios evaluate the economic status of the company in the wider marketplace. Market value ratios give management an idea of what the firm's investors think of the firm's performance and future prospects. Earnings per share has decreased from 2013 to 2014 by 11.42 and again increased from 2014 to 2015 by 6.58 which indicates that the higher amount of profit is available for common stockholders. Dividend Coverage ratio has decreased from 6.52 to 4.99 and then increased from 4.99 to 5.08 which indicate that the company has enough profit for paying the dividend to their shareholders. Note; Other ratios cannot be explained as the market value or the current value of the share is not given. Solvency Ratios Solvency ratios are used to measure a company's ability to meet its long term obligations by comparing debt levels with equity. In general, a solvency ratio measures the size of a company's profitability and compares it to its obligations. (Fuhrmann, 2013). Solvency Ratios are basically a determination of a company's ability to cover debts. For the solvency ratios, we will be looking at solvency /debt ratios and solvency coverage ratios. Ratios TimesInterestEarned Details/ Formulae Operating Profit/Interes t Charges 2013 2014 2015 1,632,132/ (463,752) =3.52 1,365,084/ (592,076) =2.31 2,120,772/ (704,701) =3.01 590101 + (339954) + (299926) / (339954) =0.15 1,416,115+(468,138) +(131,195) /468,138 = 1.74 2,801,790+ (665643) + (195,420)/665643 = 2.92 Cash Flow to interest Net Cash Flow from Operating Activities + Interest Paid + taxes Paid/ Interest Paid Gearing Ratio = Long-Term Debt/Capital Employed 3711040/13359059 =0.28 4220294/14741512 =0.29 4278439/1567485 3 =0.27 Debt Ratio = Total Debt/Total Assets 7908957/17556976 =0.45 9837533/20358751 =0.48 11171634/ 22568048 =0.50 Debt to Equity = Total Debt/ Common Equity 7908957/ 9703896 =0.82 9837533/ 10557241 =0.93 11171634/ 11432039 =0.98 It can be observed from the figures above that the Times Interest Earned are approximately the same, showing that there is not a vast improvement in how well the company is able to honour its debt payments. However, 2013 was the year in which the company was better able to pay off debts. Jamaica Broilers Group ability to repay its interest were greater in 2013 and 2015 which were 3.52 and 3.01 respectively when compared to 2014 2.31. This shows that in the year of 2014, the company was having more difficulty paying off debts. Although, there was a decline in 2014 the company manage to increase its debt payment from 2.31 to 3.01 in 2015. After computing the Cash Flow to Interest, it is seen that the company as a high risk of default in 2013, therefore unable to cover their interest, with a time of 0.15. The concept is that any company with a Cash Flow to interest less than 1, cannot pay off interest. However, the company's growth steadily increases in 2014 and 2015, with a value of 1.74 and 2.92 respectively. The Gearing Ratio of Broilers is said to be normal because it ranges between 25-50%. A low Gearing Ratio would be classified as anywhere below 25% and a high gearing ratio is anywhere above 50%. The lower the gearing ratio, the more financially stable the company is, therefore the company is more Financially stable in 2015 with a gearing ratio of 27%, in regards to 2013 and 2014 with a gearing ratio of 28% and 29% respectively. Debt Ratio is a ratio that measures a company's total debts to its total assets. It can be further analysed, that it's the portion of the company's asset that is financed by debt. Broilers Group Limited Debt Ratio in 2013,2014, 2015 is 0.45, 0.48, 0.50 respectively. This means that as the year's progress, the company is in more leverage. Moreover, Broilers Group has the highest Financial Risk in 2015. The effect of high debt ratio would not be in favour to the company as it would be more expensive to borrow. However, this does not mean Broilers is performing poorly, because it all depends on the industry but both potential and current investors want to know whether or not the company is making enough cash from cash flows and how many times the company will be able to cover the interest paid. Investopedia defines Debt to Equity Ratio as a solvency ratio used to measure a company's financial leverage, calculated by dividing a company's total liabilities by its stockholders' equity. Based on the above table, Boilers Group in 2015, is taking on the most debt. In 2015 their debt to equity was at 98% thus taking on higher risk than in 2013 and 2014 with ratios of 82% and 92% respectively. Coverage (Solvency) Ratios Ratios Details/Formulae 2013 2014 2015 Debt coverage = Net Cash Flow from Operating Activities Total debt 590101 /7908957 =0.07 1,416,115/ 9837533 =0.14 2,801,790/ 11432039 = 0.25 Debt payment =Net Cash Flow from Operating Activities Cash paid for long-term assets =Net Cash Flow from Operating Activities Dividends paid 590101/1424684 =0.41 1416115/ 1131891 =1.25 2801790/ 1060948 =2.64 590101/ 167899 =3.51 1416115/191884 = 7.38 2801790/ 203877 =13.74 590101/ 3058325 =0.19 1416115/ 3688330 =0.38 2801790/ 3269609 =0.86 Dividend payment Investing and financing =Net Cash Flow from Operating Activities Cash outflows for investing and financing activities Debt Coverage is a ratio of a company's cash flow from operating activities to its total debt. Investopedia states that, Debt coverage is an estimate of the amount of time it would take a company to repay its debt if the company devoted all of its cash flow to debt repayment. Based on the above table, Broilers Group is able to better pay off its debt of 0.25 in 2015, more than all three years. This is showing growth, because 2013 and 2014 was 0.07 and 0.14 respectively. Debt Payment in 2015, is the most favourable outcome as the assets are performing much better in that year. In 2013, 2014, 2015 the Company dividend payment to shareholders is 3.51, 7.28 and 13.74 Respectively. When it comes on to Investing and Financing, 2015 is performing better because the cash outflows are not affecting the cash inflows as much as in 2013 and 2014 with ratios of 0.19 and0.38 respectively. Common-size analysis of the Statement of Profit and Loss, Balance Sheet and Cash Flow Statement JAMAICA BROILERS Statement of Profit and Loss for the Year Ended May 3, 2013-2014-2015 2013 $'000 26,522,970 Cost of Sales Gross Profit Other Gains/Losses Distribution Cost Administrative and other expenses Operating profit Finance income Finance costs Profit before Taxation Taxation Net profit Re-measurement of post-employment/pension benefits Exchange differences on translating foreign operations total other comprehensive income Total comprehensive income 100% $'000 30,851,350 % 100% -21,054,291 Revenue Earning per Stock Unit 2014 -79.4 -24,343,646 -78.9 5,468,679 132,598 -795,938 -3,191,407 1,613,932 22,504 -463,752 1,172,684 -144,691 1,027,993 -330,600 418,957 88,357 1,116,350 20.6 0.5 -3 -12 6.1 0.1 -1.7 4.4 -0.5 3.9 -1.2 1.6 0.3 4.2 6,507,704 203,304 -863,079 -4,482,845 1,365,084 300,088 -592,076 1,073,096 -153,987 919,109 -103,750 317,800 214,050 1,133,159 21.1 0.7 -2.8 -14.5 4.4 1 -1.9 3.5 -0.5 3 -0.3 1 0.7 3.7 91.11c % 79.82c JAMAICA BROILERS Group Statement of Financial Position for the Year Ended May 3, 2013-2014-2015 2015 $'000 34,570,05 0 26,548,66 5 8,021,385 174,117 -1,033,495 -5,041,235 2,120,772 145,781 -704,701 1,561,852 -552,198 1,009,654 -112,225 155,624 43,399 1,053,053 86.40c % 100 -76.8 23.2 0.5 -3 -14.6 6.1 0.4 -2 4.5 -1.6 2.9 -0.3 0.5 0.1 3 2013 $'000 Non-current Assets Property,plant and equipment Intangible Assests Investment property Investments 8,308,510 105,702 58,988 60,289 2014 % $'000 63 0.8 0.4 0.5 9,395,304 931,016 58,098 65,669 % 63.7 6.3 0.4 0.4 2015 $'000 9,939,598 890,602 23,315 68,749 % 63.4 5.7 0.1 0.4 Deferred income taxes Post-employment benefit assets Affiliate Current Assets Inventories Biological Assets Recievables Taxation recoverable Financial assets at fair value through profit and loss Cash and short term investments Current Liabilities Payables Taxation payables Borrowing Net Current Assets Stockholders, Equity Share capital Capital reserves Retained earnings Non-controlling interest Non-Current Liabilities Shareholders loan payable Borrowings Deferred income taxes Pension scheme benefit liabilities post-employment benefit obligations 16,643 62,300 86,004 8,698,436 0.1 0.5 0.7 65.9 14,510 0 123,018 10,587,615 0.1 0 0.8 71.8 0 0 18,683 10,940,947 0 0 0.1 69.8 2,964,774 1,344,672 2,127,522 3,655 741,048 1,511,999 8,693,670 22.5 10.2 16.1 0.03 5.6 11.5 65.9 3,693,396 2,267,869 2,699,011 4,057 436,046 670,757 9,771,136 25.1 15.4 18.3 0.03 3 4.6 66.3 3,948,883 2,569,781 2,789,062 18,447 472,482 1,828,466 11,627,101 25.2 16.4 17.8 0.1 3 11.7 74.2 1,879,759 116,024 2,202,134 4,197,917 4,495,753 13,194,189 14.2 0.9 16.7 31.8 34.1 100 2,825,867 155,523 2,635,849 5,617,239 4,153,897 14,741,512 19.2 1.1 17.9 38.1 28.2 100 3,666,685 463,486 2,763,024 6,893,195 4,733,906 15,674,853 23.4 3 17.6 44 30.2 100 765,137 1,432,828 7,384,081 9,582,046 55,877 9,526,169 5.8 10.9 56 72.6 0.4 72.2 765,137 1,746,374 8,045,730 10,557,241 36,023 10,521,218 5.2 11.8 54.6 71.6 0.2 71.4 765,137 1,850,181 8,816,721 11,432,039 35,625 11,396,414 4.9 11.8 56.2 72.9 0.2 72.7 43,643 3,241,562 367,715 0 15,100 13,194,189 0.3 24.6 2.8 0 3,568,071 530,823 105,900 15,500 14,741,512 0 24.2 3.6 0.7 0.1 100 0 3,591,907 567,032 94,700 24,800 15,674,853 0 22.9 3.6 0.6 0.2 100 0.11 100 Addressing Issues from Specific Users of Jamaica Broilers Group The strength of the framework suggested by the IASB is based on the required qualitative characteristics of the principal stakeholder group, that is, investors. This is because of the investors risk in investing in the company. The specific issues that need to address are the primary qualitative characteristics relating to content and presentation of the report. These are relevance, reliability, comparability and understandability. Relevance The report must be relevant to the decision making needs of the investors. Information has the quality of relevance when it influences the economic decisions of the investors by helping to evaluate past, present or future events or confirming or correcting their past evaluations. Information in the report should have predictive value to help the investors to predict about the future also, provide feedback to confirm or correct expectation. Reliability The quality of the report must be reliable so that investors can depend on it with assurance. This means it is verifiable, has faithful representation and is reasonable free of errors and bias. The major characteristics of reliable information are: Prudence, the amount of revenues must not be overstated or underestimate the amount of expenses. The report should be conservative in recording the amount of assets and not underestimate liabilities. Completeness, information must be complete within the bounds of materiality and cost. Representational faithfulness, when there is agreement between the information reported and the actual result of economic activity being measured. Neutrality, information in the report should be communicated in an unbiased manner. Comparability The investors must be able to compare the financial statements of the Jamaica Broilers Group overtime to identify trends in its financial position and performance along with other financial statements of different enterprises. Comparability results when different enterprises apply the same accounting management to similar events. It must be compliant with international accounting standards, which helps to enhance comparability. Understandability The report must be understandable to the investors, who assumed to have a reasonable knowledge of the business, economy and accounting and to be willing to study information to gain a reasonable level of financial expertise. Desnoes and Geddes (D&G) is a beverage company incorporated and domiciled in Jamaica. Its principal activities include the brewing, bottling and distribution of beers, stouts and spirits. Therefore, potential investors would have less risk in investing in the company as it is on track to maximise the revenue benefits of effective product line diversification, and is also actively working to improve its cost-efficiency. Due to Desnoes and Geddes diversification, it would be great to invest in the company. In addition to carbonated beverages, D&G also brews and distributes the following brands: Red Stripe Beer, Dragon Stout, Malta, Smirnoff Ice, Guinness, and Heineken. Notably, D&G is a publicly listed company on the Jamaica Stock Exchange. The Sweden-based company Udiam Holdings AB owns a 58%, but its ultimate parent company is the UK-based Beverage Company, Diageo PLC. D&G has indicated that "Cost of sales\" was impacted by the depreciating dollar on foreign currency denominated inputs, local inflation and the cost of direct distribution fees under the new outsourced selling and distribution model involving the joint venture business, Celebration Brands Limited. Consequently, barring any major unforeseen adverse events, it is likely that D&G's profitability will continue to grow, especially against a gradually improving economic background. They were affected by a loss of market but were still driven for strong growth of brewed products and spirit portfolios, which included the new innovation on 1 litre Red Stripe and Guinness brands." Debt to equity and Brand Recognition also creates new investment as such D&G is gradually growing to be a self-sufficient company. On the other hand, Brand recognition allows investors to be aware of the company and its Goodwill, therefore investors would not deem it as a risky investment and as such an investment plan would be good as they look beyond the losses and create opportunities. References Accounting Tools. (n.d.). Retrieved April 4, 2016, from http://www.accountingtools.com/questions-and-answers/what-are-the-limitations-of-ratioanalysis.html Fuhrmann, R. C. (2013). The Common Size Analysis of Financial Statements. Investopedia. Gibson, C. H. (2012). Financial Reporting and Analysis. Ohio: Cengage Learning. Project Management Report Task Complete by Each Group Member: Abigail McBean Compiled and edited Word Document (Group Leader) Question #3 - Company Overview Question #6- Issues faced by specific users Created PowerPoint Presentation Questions #1&2 Shanoy Allen Asset Management Ratios (computation and analysis) Shanielle Simpson Liquidity Ratios (computation and analysis) Profitability Ratios (computation and analysis) Romario Franks Market Value Ratios (calculation and analysis) Solvency Ratios (calculation and analysis) Ramoy Hemmings Common-size analysis of the Statement of Profit and Loss, Balance Sheet and Cash Flow Statement for EACH of the three years under review Group Meetings Date and Time: Group Members Day of the Week and the Date Time Place All Group Members Monday, April 4, 2016 1:15 pm - 2:30 pm SOBA Gazebo All Group Members Friday, April 8, 2016 2:00 pm - 4:50 pm Utech Library