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Alcohol Industry Ratios

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Introduction
The three industries that I picked for my financial analysis were: The Food Retail Industry, The Fitness Industry, and the Alcohol Industry. The five companies in the Food Retail Industry are Costco Wholesale Corporation, SpartanNash, Target, Walmart, and Whole Foods Market. The five companies in the Fitness Apparel industry are Lululemon, Nike, Adidas, Gildan and Under Armour. Lastly, the five companies in the Alcohol Industry are ANheuser-Busch, Boston Beer, Constellation, Craft Brew Alliance, and Diageo PLC.
Each company will be analyzed individually based on industry average (average of the five companies chosen) and compared to one another. Based on the financial data collected, the best company in each industry and the …show more content…

Although Boston Beer Company only had the third highest average ROE, I believe it is the strongest and most healthy of all five companies. Both Diageo PLC and Constellation Brands had significantly higher ROE, but both companies had at least double Boston Beer’s equity multiplier which is a technique companies use to boost their ROE. Boston Beer’s ROE is driven by their superior asset management to all other companies in the industry, measured by ROA, and a solid profit margin. As far as market value ratios are concerned, Boston Beer is trading a slightly higher P/E ratio and market/book ratio than the industry average which is a slight concern from an investor’s standpoint because it indicates an overpriced stock; however, it does show that there’s plenty of confidence in the market for the future of the company. Furthermore, cash flows to shareholders has grown exponentially over the past five years for Boston Beer. In 2013, they had a negative 0.665 cash flow to shareholders, compared to this past year where their cash flow to shareholders was 102.96. This is a very good sign for investors because it shows that new equity is not being issued while dividends are also

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