Diageo Plc Financial Analysis - 1907 Words

Introduction The objective of this analysts report is to whether or not to invest  £1 million in the company â€Å"Diageo plc†. This report is divided into five parts. First, the company profile is introduced. Second, the performance overview of Diageo will be summarized. Third, the financial ratios analysis is presented. Then, I have analysed industry competitors comparing with Diageo. Final, after considering key relevance factors, the conclusion of the investment will be revealed. â€Å"DIAGEO† Company Profile Diageo plc is the world’s leading premium drinks business with an outstanding collection of beverage alcohol brands across spirits, wines and beer categories. These brands include Johnnie Walker, Guinness, Smirnoff, Jamp;B, Baileys,†¦show more content†¦Liquidity Ratio/Year | 2010 | 2009 | 2008 | 1. Current Ratio | 1.76 | 1.52 | 1.17 | 2. Acid or Quick Ratio | 0.93 | 0.75 | 0.60 | Table 3: Diageo’s Liquidity Ratio 1. Current ratio, as table 3 shown, is increasing. It can be assumed that the company overall ability to meet its financial obligations has improved (Lee, 1998). 2. Acid or quick ratio indicates the company’s ability to repay immediate commitments using cash or near-cash (Elliot amp; Elliot, 2006). According to table 3, the company’s quick ratio is growing. Gearing Ratio/Year | 2010 | 2009 | 2008 | Gearing Ratio | 182.46% | 241.75% | 187.53% | Table 4: Diageo’s gearing ratio Gearing ratio represents the contribution of long-term lenders to the long-term capital structure of a business (Atrill amp; McLaney, 2008). A company with high gearing is predominantly financed by debt (Elliot amp; Elliot, 2006). We can see from table 4 that Diageo gearing ratio is rather high, however, this ratio needs to be compared with other companies in the industry to judge the reasonableness (http://bizcovering.com/) Investor Ratio/Year | 2010 | 2009 | 2008 | 1. Dividend Payout Ratio | 0.43 | 0.56 | 0.58 | 2. Dividend Cover Ratio (times) | 2.97x | 3.10x | 3.01x | 3. Dividend Yield (ttm) | 3.5 | - | - | 4. Earning Per Share | 65.5p | 64.6p | 59.0p | 5. PE Ratio | 14.30% | 12.50% | 14.30% | Table 5: Diageo’s Investor Ratio 1. Dividend payout ratio is the proportionShow MoreRelatedDiageo Plc1436 Words   |  6 Pages1. How has Diageo managed its capital structure? Do you agree it is conservative? Diageo was born as the result of merging Grand Metropolitan plc and Guinness plc. Since the beginning the newly formed company maintained conservative financial policies inherited from the two parent companies; and in general from the British financial management style. There are many indications that confirm that Diageo has managed its capital structure using a conservative approach. Firstly, it is worth mentioningRead MoreDiageo Plc1446 Words   |  6 Pages1. How has Diageo managed its capital structure? Do you agree it is conservative? Diageo was born as the result of merging Grand Metropolitan plc and Guinness plc. Since the beginning the newly formed company maintained conservative financial policies inherited from the two parent companies; and in general from the British financial management style. There are many indications that confirm that Diageo has managed its capital structure using a conservative approach. Firstly, it is worth mentioningRead MoreDOW CHEMICALS6171 Words   |  25 Pages9 - 2 0 1- 0 3 3 REV. AUGUST 6, 2003 GEORGE CHACKO PETER TUFANO Diageo plc Ian Cray, Diageo plc’s Treasurer, looked out of his office window onto the busy streets of London in October 2000. The London-based consumer goods company Diageo had recently announced its intention to sell its packaged food subsidiary, Pillsbury, to General Mills. Earlier in the year, Diageo also announced its intent to sell 20% of its Burger King subsidiary through an initial public offering during 2001, toRead MoreDiageo2956 Words   |  12 PagesDIAGEO PLC. SWOT ANALYSIS. 1. Introduction Diageo plc is a British multinational firm that owns some of the most popular alcoholic drinks in the world. The firm boosts a reputation of not only being the largest spirits producer in the world, but also being the world s leading premium drinks company. The company has an extensive portfolio and their most popular drinks include Smirnoff vodka, Baileys, Pimms, Blossom Hill and Guinness. The company owns 312,120 BreweriesRead MoreCapital Structure Of Debt And Equity1607 Words   |  7 Pages debt financing gives an opportunity to save costs, however, the higher the proportion of debt in the capital structure, the higher the risk, because a company might fail on its debt payments. Thus, the risk of too much leverage could lead to a financial distress and bankruptcy. In order words, there is a certain level up to which a company could borrow before it starts to face difficulties to meet its debt payments. On the other hand, equity financing does not carry repayment obligations or interestRead MoreÔà ¸Ã‚ ºÃƒâ€Ãƒ ¸Ã‚ ºÃƒâ€Ãƒ ¸Ã‚ ºÃƒâ€Ãƒ ¸Ã‚ ºGeneral  ¬Ã¢â‚¬  Mills‚Äà ´  ¬Ã¢â‚¬   Acquisition of Pillsbury from Diageo Plc7222 Words   |  29 Pagesï ¿ ¼Ã¯ ¿ ¼Ã¯ ¿ ¼Ã¯ ¿ ¼General   Mills’    Acquisition of Pillsbury from Diageo PLC Lauren Sherlock Jason Park JP Zendman 12/9/2009 ï ¿ ¼ ï ¿ ¼General   Mills’   Acquisition   of   Pillsbury   from   Diageo   PLC Situation Analysis: In December 2000, management at General Mills (GM) proposed a plan to acquire Pillsbury, a baked- goods producer, in a stock-for-stock exchange. Pillsbury is currently controlled by Diageo PLC, one of the world’s leading consumer–goods companies. The deal specifies that General Mills is to createRead MoreEssay on Diageo Case Study2402 Words   |  10 PagesExecutive Summary This is a strategic options case regarding Diageo, PLC. Diageo is a conglomerate focusing on premium alcoholic beverages. The firm originated in 1997 with the merger of Guinness and GrandMet. The company began with the mission to be the strongest premium alcoholic beverage producer worldwide. To that end, they have acquired a majority of premium brands in the spirits industry and a large portfolio of premium wines, while at the same time divesting itself of those companiesRead MoreDiageo Case Report2316 Words   |  10 PagesDiageo Case Report Scott Johnsson BMGT495 March 11, 2008 Strategic Issues In 2001, the conglomeration known as Diageo PLC became the world’s largest spirits and wine holding company in the world. This was the outcome of an intense acquisition of Seagram Company’s beverage assets for $8.15 billion. The resulting conglomerate faced complicated strategic issues concerning how it wished to move forward in its beer, wine, and spirits divisions. The subject of their inquiries focused mostly onRead MoreGuinness Essay4035 Words   |  17 Pagesanalyzing main marketing activities of Guinness- Diageo. An examination of the organizations orientation was analysed, strengths, weaknesses, opportunities and threats peculiar to Guinness Diageo was reviewed in comparison with academic literatures. The competitive advantage Guinness Diageo has over its competitors was reviewed and the impact, positive and negative, of the organizations marketing mix was subsequently evaluated. BACKGROUND OF DIAGEO Diageo is the worlds leading premium drinks businessRead MoreGeneral Mills Case3749 Words   |  15 PagesDecember 2000, management of General Mills made a recommendation to its shareholders that they authorize the creation of more shares of common stock and approve a proposal for the company to acquire Pillsbury Company, a producer of baked goods, from Diageo PLC. Company Information General Mills General Mills is one of the leading food companies in the world. It is the largest producer of yogurt and the second-largest producer of ready-to-eat breakfast cereals in the United States. The company is

International Finance And Globalisation ( Mn7574 )

Assignment in the elective module: International Finance and Globalisation (MN7574) Conducted by: ............... Word Count: †¦. Describe the three key institutional bodies established in the Bretton Woods agreement. What was their purpose, and how did they operate? Give an account of the collapse of the agreement and discuss the consequences of this collapse for international finance. This coursework is submitted as part of the requirements for the award of the MSc in Finance University of Leicester – School of Management Leicester July 2014 Table of Contents Introduction 3 Section 2: Bretton Woods Institutions: purpose of establishment and cooperation 4 Section 3: Bretton Woods: The chronology of events 6†¦show more content†¦Opponents of the EU argue that since the formation of the Euro area we have observed an increasing divergence between the northern and southern European countries; with the former enjoying the majority of the benefits of the common currency and the latter facing significant issues with their macroeconomics and struggling to keep up with their northern counterparts. The formation of the EEA, however, was not the first attempt by societies to converge their interests under a common economic policy. Its predecessor, the Bretton Woods system that was formatted in 1944, endeavoured to set up a set of rules that would define the monetary relationships between a number of countries. Its primary feature was the commitment by the member nations to maintain a relatively fixed exchange rate against the dollar, which was tied to gold at a fixed rate. Alongside with the set up of the system, the members agreed to establish two institutional bodies that would oversee the members’ activities, provide assistance when needed and maintain the cooperation between the members. Those were the International Monetary Fund (IMF) and the World Bank of Trade and Development (World Bank). Subsequently, the members aimed to establish the International Trade Organization (ITO) that was replaced by the General Agreement on Tariffs and Trade (GATT). All three

Education Essays †Egypt Education System Free Essays

Egypt Education System The extension of the free compulsory instruction jurisprudence in 1981 was one of the grounds to unite the Preparatory Stage, both Primary and Preparatory stages ( Ages 6 through 14 ) together under the label Basic Education, as instruction beyond this phase depends on the pupil ‘s ability. Egypt operates two corresponding instruction systems: the secular system and the spiritual, or Al-Azhar system. The secular system consists of basic instruction which covers the first 8 eight old ages of schooling. We will write a custom essay sample on Education Essays – Egypt Education System or any similar topic only for you Order Now The 2nd degree divides pupils between three-year general academic secondary schools and three or five-year vocational schools, as there are three different types of secondary instruction which are general, proficient, and vocational Technical instruction. These types of instruction are provided in three-year and five-year plans, and include schools in three different Fieldss: industrial, commercial and agricultural. The 3rd degree is universities. The Al-Azhar system, which maintains separate installations for male and female from primary to university degree, enrolls 4 per centum of the country’s entire pupils, and is responsible for conveying the mission of Islam and uncovering its part to humanity’s public assistance and advancement. In this system, primary school extends over the first 6 old ages, and preparative school for the following three old ages. Students who successfully complete 4 old ages of secondary school can inscribe at Al-Azhar University.2 Al-Azhar University, which is considered to be the bastion of Islamic cognition in Egypt, was founded in AD 970. There are two sorts of authorities schools in Egypt which are Arabic Schools and Experimental Language Schools. Arabic Schools provide the governmental national course of study in the Arabic Language ; nevertheless, experimental Language Schools teach most of the authorities course of study in English, and add Gallic as a 2nd foreign linguistic communication. Furthermore, there are three sorts of private schools. As Government schools, private schools besides has different types such as ordinary schools, linguistic communication schools, and spiritual schools. First, Ordinary schools have the same manner of instruction of the authorities schools with more concentration on the pupils want and services provided to them. Second, linguistic communication schools have the same educational stuffs as the authorities with the exclusion that all those stuffs are taught in different linguistic communications ; this is beside the high fees those schools requires. The 3rd type of private instruction is spiritual that are established or controlled by Muslim Brotherhood. Their educational course of study is wholly unlike the authorities and Azhar schools. Private schools on Egypt are considered the best instruction because of high and assorted installations offered by those schools. This educational system is supervises by the ministry of instruction However, the Azhar instruction system is supervised by the Supreme Council of the Al-Azhar Institution and considered to be independent from the Ministry of Education, but is finally under supervising by the Egyptian Prime Minister. The Azhar schools are named â€Å" Institutes † and besides portion the same phases as the normal educational system which both include primary, preparatory, and secondary instruction. The Azhar schools in all stages teach non-religious topics, to a certain grade ; nevertheless, the bulk of the course of study consists of spiritual topics. All the pupils are Muslims, and males and females are separated in all stages. The Azhar schools are spread all over the state, but overly in rural countries. The alumnuss of the Azhar secondary schools are eligible to go on their surveies merely at the Al-Azhar University. In the early 2000s, the Azhar schools accounted for less than 4 % of the entire registration. There are both private and public universities of higher instruction in Egypt. The difference between them is that Public higher instruction is free in Egypt, and Egyptian pupils merely pay enrollment fees, but Private instruction is much more expensive and is considered to b for the elite, as alumnuss of such schools by and large do really good on their concluding secondary school scrutinies, which ensures them entree to what are considered as elect modules. Presently 98 per centum of alumnuss from secondary schools enter higher instruction. The higher instruction sector in Egypt is comprised of universities and establishments of proficient and professional preparation. The system is made up of 12 public universities, 51public non-university establishments, and 4 private ( for net income ) universities. In May 2000, there were 18 pending applications to open extra private for net income higher instruction establishments. Of the 51 non-university establishments, 47 are biennial in-between proficient institutes ( MTI ) , and 4 are four or five-year higher proficient institutes ( World Bank, 2000:1 ) . The major public universities are Cairo University ( 100,000 pupils ) , Alexandria University, Ain Shams University, and the 1,000-year-old Al-Azhar University. While the American University in Cairo, the German University in Cairo and the Universite Francaise d’Egypte is of the taking private universities in Egypt. Entry into the secular university system is based on the consequences of the Secondary Educational stage. Harmonizing to the article â€Å"Egypt, † â€Å"only pupils go toing general academic secondary schools were eligible to matriculate ; nevertheless since 1970 universities have been inscribing some pupils from vocational schools. The Placement Bureau of the Ministry of Higher Education controls admittance, and there is alegion clausesimposed by the Supreme Council of Universities ( SCU ) on admittance at institutional and province levels† . Al-Azhar University system, unlike other systems, requires certain certifications like a Secondary School Certificate from the Al-Azhar instruction system and a Certificate of Koran Recitation from a Koran Recitation Institute or keep an Al-Azhar sheepskin. Non-university instruction is offered by industrial, commercial, and proficient institutes which provide 2-year classs taking to diplomas in accounting, secretarial work, insurance, computing machine or wellness scientific disciplines and electronics. Technical instruction schools provide 5-year classs taking to progress proficient instruction sheepskin in commercial, industrial, and agricultural Fieldss. Although the American University in Cairo ( AUC ) has existed since 1919 as a private university, Egypt merely legalized Egyptian private universities in 1992 when the People’s Assembly passed a Law # 101 leting the constitution of private universities. The most indispensable consideration is that the Minister for Education must O.K. the assignment of private university, as presidents, and non-Egyptians can non busy taking places in private universities without the ministry’s blessing. The 2nd critical facet is that the Supreme Council of Universities indirectly supervises private universities and is responsible for monitoring criterions to guarantee that graduation certifications from province and private universities represent an equal instruction degree compared with the governmental certifications. â€Å"In May 2002, the private universities’ commission was replaced with theprivateuniversities’ council.The council has the same powers as the Supreme Council of Universities, which regulates public universities.† Many Peoples assume that private higher instruction establishments in Egypt are s establishments that â€Å"sell†grades to those who can afford the university expanses. Critics of private higher instruction in Egypt besides argue that private higher instruction is at odds with the rules of the1952 Revolution, which called for equal entree to educational chances for all citizens. Egypt is considered the state that has the largest higher instruction systems in the 3rd universe as it contains about 1.670 million pupils. Egypt relies in its instruction on biennial proficient institutes to go on supplying entree to all secondary school alumnuss while protecting the already overfed universities. Technical institutes enroll 40 per centum of all secondary school alumnuss. This deficiency of fiscal, human, and material resources consequences in hapless quality instruction in most universities and is considered by many people as non academic establishment. The figure of higher instruction pupils per 100,000 dwellers is 1,900 in Egypt compared to 1,132 in Morocco ; 1,236 in Algeria ; and 1,253 in Tunisia. Surveies on the societal category and educational backgrounds of province university pupils have revealed inequalities of entree to what are considered as high status/elite modules. To better the educational system in Egypt administration and control of higher instruction should be obtained by the Ministry of Higher Education, the Supreme Council of Universities ( SCU ) , and the Central Administration of Al-Azhar Institutes. The Ministry of Higher Education has a legal authorization over higher instruction by oversing and commanding the instruction, planning, policy devising, and quality control on primary and preparative schools and developing for basic instruction for instructors. The Supreme Council of Universities formulates is the 1 responsible for policy devising and decision making or commanding the figure of pupils to be admitted to each module in each university. Furthermore, supervising and disposal of the Al-Azhar higher instruction system is the duty of theCardinal Administration of Al-Azhar Institutes, which is a section of the Supreme Council of Al-Azhar that is responsible for the development of the general policy and planning to enable the spread of Islamic civilization and Arabic linguistic communication. In official discourse, instruction in Egypt is â€Å"free† from basic to higher instruction. While officially the province is responsible for funding higher instruction in Egypt, the state’s portion of higher instruction finance for universities was reduced to 85 per centum in 1994-1995, go forthing the universities to bring forth the staying 15 per centum through assorted gross variegation schemes. Sanyal ( 1998:16 ) , and the World Bank ( 2000:40-41 ) place the undermentioned gross variegation schemes adopted by Egyptian universities: ( a ) Charging nominal tuition fees for alternate academic plans that are perceived to be of high quality and presenting other relevant fees. For illustration, province universities have introduced foreign linguistic communication plans for which they charge tuition. Some public universities charge ?E1,000 as tuition for a degree plan in Commerce which uses English as a medium of direction. The figure of appliers in some degree plans in public universities exceeds available infinites, a phenomenon which gives room for universities to bear down tuition. While the tuition charged in this instance is still merely about 33 per centum of the existent cost of the plan, this agreement sets a case in point towards cost recovery in public establishments ( World Bank, 2002:40 ) . Besides, in recent old ages, a new system of admittance to the modules of Law, Commerce, and Humanistic disciplines allows a less qualified pupil to obtain a topographic point on paying an admittance fee of ?E 360 ( Sanyal, op cit ) . The impact of this pattern on the quality has been negative as manifested by a high figure of reiterating pupils in universities. Egyptian pupils pay between ?E30-?E150 per twelvemonth as a nominal tuition fee in authorities funded universities. In add-on, they besides pay necessary equipment, books, transit, and abode fees. The pattern of bear downing nominal tuition fees in Egyptian public universities goes as far back as 1924 when the Egyptian University ( now Cairo University ) started bear downing ?E30 per twelvemonth for all modules with the exclusion of the pharmacological medicine section that charged ?E20 per twelvemonth. This university besides imposed a non-refundable scrutiny fee of ?E1.16 Tuition fee in private universities range from E15,000-25,000. The American University in Cairo-the oldest private university in Egypt, charges a tuition fee of US $ 2,813 for 6 credits and US $ 469 for each extra recognition. ( B ) Income coevals by specialised university centres from: ( 1 ) Cooperation with industry ; ( 2 ) Patent rights ; ( 3 ) Provision of go oning instruction to industrial employees ; ( 4 ) Entree to research lab and scientific equipment ; ( 5 ) Manufacturing intermediate industrial merchandises ; In add-on, In 1998, theInternational Finance Corporation ( IFC) conducted an extended feasibleness survey onthe market for pupil loans in post-secondary instruction in Egypt.This survey recommendedagainstestablishing a pupil loan plan due to the undermentioned grounds: ( a ) limited market size ; ( B ) underdeveloped debt/credit market ; ( degree Celsius ) cultural attitude uncomfortable with personal debt and loans ; and ( vitamin D ) deficiency of a consumer recognition bureau ( World Bank, 2000 op cit: 41 ) . As a consequence of the above recommendations, the Egyptian Government by 2000 was be aftering to set upa ?E100 million-loan planfor destitute university pupils. Under this proposed loan strategy, pupils who canprovethat they are in demand of fiscal aid for education-related disbursals will be eligible to have up to?E1000 pertwelvemonthin authorities loans. The loans are to be involvement free and refund will be spread out over a period of 40 old ages after graduation. Problems and challenges in Egyptian higher instruction system are analyzed in the World Bank’sHigher Education Enhancement Project,which is a portion of a comprehensive reform scheme for higher instruction in Egypt. The higher instruction reform docket was influenced by the National Conference on Higher Education, held in February 2000, and aims to turn to Egypt’s demand to upgrade educational quality in the university sector. Egyptian higher instruction sector faces a figure of challenges including: ( I ) antiquated system-wide administration and direction ; ( two ) low quality and relevancy at the university degree ; ( three ) low quality and relevancy at the in-between proficient degree ; and ( four ) limited financial sustainability of publically financed registrations ( World Bank, 2000:1 ) . The job of financially weak registrations is related to the dramatic addition in registrations in university instruction.For illustration, registrations increased by 42 per centum between 1997/98 and 1998/99 taking to an 8 per centum diminution in per -student disbursement that exacerbated disparities in resource allotment between modules ( World Bank, 2002:41 ) . While the overall outgo on instruction as a proportion of GDP has grown from 3.9 per centum in 1991 to 5.9 per centum in 1998 with higher instruction having a 28 per centum portion of entire outgo in 1998, the dramatic growing of the higher instruction pupil population in Egypt creats a serious job in funding higher instruction. Given the high population growing in higher instruction, to merely keep the portion of 18-22 age group at its present 20 per centum degree ( this is an official policy ) would necessitate on norm an extra 60,000 new registrations in higher instruction for the following 10 old ages ( World Bank, 2000:2 ) . The authorities has no fiscal ability to make this. How to cite Education Essays – Egypt Education System, Essay examples