2.Company description
In chapter 2, the company will be described. The chapter is subdivided into three parts. The first general company information will be given. The second products of company will be described. Then the current company situation is summarized.
2.1) General company information
In the following, the company will be explained. To start out, Thai Beverage Public Company Limited was established in 2003 by Mr. Charoen Sirivadhanabhakdi to consolidate a number of leading spirits and beer business in Thailand belonging to founding shareholders and other investors. In 2006, ThaiBev registered on the Singapore Stock Exchange (SGX), and subsequently expanded to the non-alcoholic beverage and food sectors to diversify its product
…show more content…
This is based on the fact that having too much capital implies inefficiency, where as too little cash in hand indicates that the survival of the company is shaky. Most businesses do not hold the right amount of stock, debtors and cash. Due to this reason the firm is unable to meet its maturing short-term obligations and its upcoming operational needs. Lack of adequate working capital also means that a company is unable to undertake expansion projects and increase its sales, therefore limiting the growth and profitability of the businesses. Thai Beverage Public Company Limited is one of largest companies in Thailand, which is ranked up to 10 largest companies by market cap in SGX. Thus, there are many investors who are interested in ThaiBev. However, the investors also need to know the financial KPI analysis in order to make decision in investment in ThaiBev. One of the important KPI is Working Capital Management. This comes the main research question: “ Does Thai Beverage Public Company Limited have the efficiency in working capital management?” But in order to answer this main question, a detailed research has to be implemented. Therefore, this study attempts to answer the following sub-questions:
1. Does Thai Beverage have the efficiency in managing inventories?
2. Does Thai Beverage have the efficiency in managing receivables?
3. Does Thai Beverage have the efficiency in managing cash?
4. Does Thai Beverage have the efficiency in managing trade payables?
These sub-questions will be analyzed and answered whether Thai Beverage Public Company Limited have the efficiency in working capital management.
3.2) Research aim
The aim of the study is to analyze the efficiency of working capital management in Thai Beverage Public Company Limited.
3.3) Research
Net working capital represents organization’s operating liquidity. In order to compute the net working capital, total current assets are divided from total current liabilities. When there is sufficient excess of current assets over current liabilities, an organization might be considered sufficiently liquid. Another ratio that helps in assessing the operating liquidity of as company is a current ratio. The ratio is calculated by dividing the total current assets over total current liabilities. When the current ratio is high, the organization has enough of current assets to pay for the liabilities. Yet, another mean of calculating the organization’s debt-paying ability is the debt ratio. To calculate the ratio, total liabilities are divided by total assets. The computation gives information on what proportion of organization’s assets is financed by a debt, and what is the entity’s ability to pay for current and long term liabilities. Lower debt ratio is better, because the low liabilities require low debt payments. To be able to lend money, an organization’s current ratio has to fall above a certain level, also the debt ratio cannot rise above a certain threshold. Otherwise, the entity will not be able to lend money or will have to pay high penalties. The following steps can be undertaken by a company to keep the debt ratio within normal
Various ratios are used in this analysis. The organization’s WIP and FG inventory turnover ratios from 2009 demonstrate that the firm takes fewer days to sell both inventories (3.64 days and 73.43 days respectively) than the average firm in the industry In 2009, the total asset turnover ratio for Gemini Electronics was 1.37 while the industry average was 1. This is an indication that Gemini Electronics is generating business at a steady pace. Gemini Electronics is utilizing its fixed assets at a higher rate than other firms in the industry. Their utilization shows the Gemini’s ability to use L, P, & E in order to generate sales. Gemini Electronics A/R is 40.16, which is 25% higher than the industry average. This means Gemini Electronics waits about 40 days to receive payment for goods sold. High levels of A/R can negatively affect the firm and their stock
This paper evaluates the key financial challenges facing organizations in Risk Management, Managing International Acquisitions, and Managing Working Capital simulations. Secondly, an evaluation of Southwest Airlines (SWA) management of working capital and the optimal financial strategies employed is presented. Also evaluated are the potential improvements in financial performance along with long-term and short-term strategies. Lastly, considered in this paper is whether a merger or acquisition would affect SWA’s employed strategic outlook.
3. Analyzing the financial results in Exhibits 1 and 4, give an assessment of how well the company is executing its strategy. How has the company’s stock price performed over the past four
The marketing mix, which is basic to any organization, can be considered the ‘controllable’ variables that every business encounters. These controllable variables can be modified based on the uncontrollable variables (external factors found in Environmental Scan) that directly affect business operations. A company focuses on four elements in the marketing mix: Product, Price, Place, and Promotion, which are managed and coordinated through marketing programs in efforts to appeal to their target market. Marketers strive to understand what motivates consumers to purchase certain products. The marketing mix helps to break down some of these questions: What will consumers buy? How much will they spend? Where will they buy? And will they buy again?
Keda Industrial Company Ltd. (Keda) is a world leader in building materials machinery. Established in 1992 as a small ceramics machinery manufacturer, rapid growth in the past decade has granted Keda recognition as one of China’s top 500 national machinery manufacturers as well as one of the world’s top 10 building materials machinery enterprises. Recognizing their current systems were no longer sufficient, Keda recently underwent a remarkable, successful SAP enterprise resource planning (ERP) implementation.
Financial statements are a vital factor of any business organization; they show where a company’s money came from, where it went, and where it is now, according to Securities and Exchange Commission website (2008). In addition, four main financial statements consist of the balance sheet, income statement, cash flow statement, and statement of shareholders’ equity. These four financial statements will be evaluated from Nike Inc. and more in depth information will be included from information on the previous paper which will be link to the working capital strategies. Furthermore, a detail working capital recommendation to senior management will be included and the impact of Nike Inc. revenue increase of their working capital.
CSR is a concept where company involves in social and environmental in their business operations. This is done to achieve a balance of economic, environmental and social obligations.in simple terms giving a hand for those who are not capable of achieving with their objectives and attending to them so that they could make those objectives a reality. This could improve organizations cooperate image which would also leads to attain a high market share.
As a leader of online shopping within the retail outlet industry, Tesco Malaysia is light-years ahead of its competition and it is no surprise that it has more than half of the ecommerce grocery market in Malaysia and is doing so well in the online shopping channel as its search positions dominate the sector. It is hard to pick any flaws with its ecommerce practices, but of course, there is always room for improvement. The following are some of the suggestions that could be tweaked to generate even more of the green stuff for the retailer.
Cocoa production is predicted of getting shortage of supply in 2020 (Nelson, 2017). The famous chocolate drink that Malaysian drink daily, Milo contains cocoa. Other than Milo, Koko Krunch, Nestle Crunch Wafer, KitKat are also mainly made from cocoa. Nestle as a company which largely depends on cocoa bean for its products, will become one of the victim of this cocoa supply risk. The biggest cocoa producer in the world, Ivory Coast, is facing the problem of diseases infected in cocoa plant, frequent rain, and buyers forcing producers to sell cocoa at very low price (The Guardian, 2014). In Malaysia and Indonesia, cocoa plantations are threatened by a tiny moth named as cocoa pod borer which eat the seed (Nelson, 2017).. These pests has cost cocoa
Many organizations have maximized the use of cash on hand by effective cash management techniques and the use of short-term financing. This paper will discuss various cash management techniques and short-term financing methods used by organizations.
The Kanpur Confectionaries Private Limited (KCPL) was a family business started by Mohan Kumar Gupta in 1945, and was the second largest biscuit manufacturing company in the north India. The KCPL was manufacturing glucose biscuit using maida, sugar and Vanaspati which they bought from the local market. In the year 1980-81 KCPL doubled its capacity from 120 tonne per month to 240 tonnes per month. The same year turnover was Rs. 2 crores, an increase of 17 over 1979-80. Its net profits were Rs. 20 lakh, an increase of 12 per cent over the previous year.
Have a very long history over 140 years Operated factories in 77 countries in all six continents, a truly global company Considered the innovation leader in the global food and nutrition sector with 3500scientists in company R&D network Offering thousands of local products, research and development capabilities.
The capital structure of a firm is the way in which it decides to finance its operations from various funds, comprising debt, such as bonds and outstanding loans, and equity, including stock and retained earnings. In the long term, firms seek to find the optimal debt-equity ratio. This essay will explore the advantages and disadvantages of different capital structure mixes, and consider whether this has any relevance to firm value in theory and in reality.
If there is sufficient working capital than we can assume that it has sound financial position and if the business is under trading than there will be increment in liquid assets which shows that the funds are not been utilized and kept ideal.