Anheuser-Busch Companies

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From the time when August Busch III, delivered a case of Budweiser to Franklin Roosevelt in 1933, to the present year of 2005, Anheuser Busch has been one of the largest brewers. They have been named one of "America's Most Admired Companies" by Fortune Magazine and are ranked 142 in the Fortune 500. August Busch III is the President and CEO of the company. When he resigns, Patrick Stokes will take his place as the first President and CEO to be a non-family member. This company not only owns international breweries, but also own amusement parks and manufactures cans. They are continuously seeking better sales by investing in top breweries and introducing new products. Their Budweiser Select and B to the E have not yet improved sales as hoped. Anheuser-Busch experienced a successful year in 2004. The company managed to increase shareholders equity and its total assets by about $1.5 billion. This included a $37 million increase in cash, which is used in capital expenditures, dividends, and other business investments. Looking at the statement of cash flows, it shows that the company paid out $57.4 million more in dividends to its shareholders, which increased annual dividends to $.83 per share to $.93 per share. Also capital expenditures increased from $993 million in 2003 to $1.1 billion in 2004. The continued improvement that the company is experiencing with all of its business segments, and higher revenue per barrel and higher beer sales volume are reasons for the increase of $175 million in income before taxes. Along with this increase, Anheuser-Busch also experienced an increase of $59 million in equity income, net tax; due to the implementation of successful price increases. In 2004, both gross and net sales inc... ... middle of paper ... ... = 21.46 times Days' Sales in Receivables = 365 Days divided by Receivables Turnovers = 17 Days Total Asset Turnover = Sales divided by Total Assets = 0.96 Profit Margin = Net Income divided by Sales = 12.30 Return on Assets = Net Income divided by Total Assets = 14.5% Return on Equity = Net Income divided by Total Equity = 83% Earnings per Share (EPS) = Net Income divided by Shares Outstanding = 2.77 PE Ratio = Price per Share divided by Earnings per Share = 17.04 Market-to-Book-Ratio = Market Value per Share divided by Book Value per Share =13.93

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