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Analysis of Britvic (financially and non-financially)

Analysis of Britvic (financially and non-financially) KwmoR
Non-financial – We can generalize Britvic's non-financial performance from various aspects. First, Britvic's products are sold in more than fifty countries, and it is the number one of branded soft drink produces and number two of branded carbonated drink in Great Britain market. Britvic is the industry leader in the Ireland market as well. The company is bottling in agreement with one of the beverage industry leader PepsiCo since 2017 and produce and sell in GB and Ireland under exclusive PepsiCo brands. The contract with a brand with a strong market presence and customer satisfaction affect the company in an effective way both financially and non-financially. On the other hand, we can look at employee satisfaction rates or wellbeing rates of a company to analyze how it goes non-financially. The annual employee satisfaction rate in 2019, rose to 77% from 73% in 2018. If we compare it with the industry average customer satisfaction index (76. 96) in the UK, we can say that the company is performing well. Financial – Overall, the company’s position is not bad from the short-term aspects. As stated in our analysis, the company is good at managing working capital that is enhancing year by year. It could get money from its credit customers and sell its inventory in a short period in 2019. Besides that, it has reduced the period to pay its short-term debts to the suppliers. Britvic’s current ratio is less than the previous years in 2019. Also, it is consequently lower compared to the industry average. This means the company can suffer to pay its short-term liabilities. However, as long as we analyze the industry the changes in current ratios over three years are in line with the changes in the industry average. As long as we generalize the long-term position of the company, we can see that in 2019 the size of equity has improved. On the other hand, the company has paid more parts of its long-term debts. This can be good if the company can use its equity efficiently in the future. The company’s performance has raised from the gross profit point of view. On the other hand, operating profit is less than previous years. Thus, it can mean that the company couldn’t manage its expenditures in 2019 very well. However, if we analyze this deeply, we can see that the higher number of operating expenses are due to the one-off transaction (Asset held for sale – impairment charge). Therefore, the company’s net profit is less than in this period. From the outlook of the position of the company, we can say that Britvic (as a stand-alone company) has been suffering the lack of fixed assets. As long as we examine the statement of financial positions (both – stand-alone and consolidated), we have seen that Britvic doesn’t have fixed assets itself. This kind of company needs to have fixed assets to make production. On the contrary, due to the lack of information, we don’t know exactly how subsidiaries depend on Britvic. Overall, the shareholder should be reassured that Britvic CO is profitable and expanding. On the other hand, the company ought to focus on enhancing its fixed assets, as well as endeavor to solve its short-term liquidity issues.
Non-financial
We can generalize
Britvic
's non-financial performance from various aspects.
First
,
Britvic
's products
are sold
in more than fifty countries, and it is the number one of branded soft drink produces and number two of branded carbonated drink in Great Britain market.
Britvic
is the
industry
leader in the Ireland market
as well
. The
company
is bottling in agreement with one of the beverage
industry
leader PepsiCo since 2017 and produce and sell in GB and Ireland under exclusive PepsiCo brands. The contract with a brand with a strong market presence and customer
satisfaction
affect the
company
in an effective way
both
financially
and non-
financially
.

On the
other
hand
, we can look at employee
satisfaction
rates or
wellbeing
rates of a
company
to analyze how it goes non-
financially
. The annual employee
satisfaction
rate in 2019, rose to 77% from 73% in 2018.
If
we compare it with the
industry
average customer
satisfaction
index (76. 96) in the UK, we can say that the
company
is performing well.

Financial
Overall
, the
company’s
position
is not
bad
from the
short-term
aspects. As stated in our analysis, the
company
is
good
at managing working capital
that is
enhancing
year
by
year
. It could
get
money from its credit customers and sell its inventory in a short period in 2019.
Besides
that, it has
reduced
the period to pay its
short-term
debts to the suppliers.

Britvic
’s
current
ratio is less than the previous years in 2019.
Also
, it is
consequently
lower compared to the
industry
average. This means the
company
can suffer to pay its
short-term
liabilities.
However
, as long as we analyze the
industry
the
changes
in
current
ratios over three years are in line with the
changes
in the
industry
average.

As long as we generalize the long-term
position
of the
company
, we can
see
that in 2019 the size of equity has
improved
. On the
other
hand
, the
company
has paid more parts of its long-term debts. This can be
good
if the
company
can
use
its equity
efficiently
in the future.

The
company’s
performance has raised from the gross profit point of view. On the
other
hand
, operating profit is less than previous years.
Thus
, it can mean that the
company
couldn’t manage its expenditures in 2019
very
well.
However
, if we analyze this
deeply
, we can
see
that the higher number of operating expenses are due to the one-off transaction
(Asset
held for sale
impairment charge).
Therefore
, the
company’s
net profit is less than in this period.

From the outlook of the
position
of the
company
, we can say that
Britvic
(as a stand-alone
company)
has been suffering the lack of
fixed
assets. As long as we examine the statement of financial
positions
(both
stand-alone and consolidated), we have
seen
that
Britvic
doesn’t have
fixed
assets itself. This kind of
company
needs to have
fixed
assets to
make
production.
On the contrary
, due to the lack of information, we don’t know exactly how subsidiaries depend on
Britvic
.

Overall
, the shareholder should
be reassured
that
Britvic
CO is profitable and expanding. On the
other
hand
, the
company
ought to focus on enhancing its
fixed
assets,
as well
as endeavor to solve its
short-term
liquidity issues.
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IELTS essay Analysis of Britvic (financially and non-financially)

Essay
  American English
8 paragraphs
539 words
5.5
Overall Band Score
Coherence and Cohesion: 5.5
  • Structure your answers in logical paragraphs
  • ?
    One main idea per paragraph
  • Include an introduction and conclusion
  • Support main points with an explanation and then an example
  • Use cohesive linking words accurately and appropriately
  • Vary your linking phrases using synonyms
Lexical Resource: 5.0
  • Try to vary your vocabulary using accurate synonyms
  • Use less common question specific words that accurately convey meaning
  • Check your work for spelling and word formation mistakes
Grammatical Range: 5.5
  • Use a variety of complex and simple sentences
  • Check your writing for errors
Task Achievement: 6.0
  • Answer all parts of the question
  • ?
    Present relevant ideas
  • Fully explain these ideas
  • Support ideas with relevant, specific examples
Labels Descriptions
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    Currently is not available
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