Carlsberg Case
MSC IN MANAGEMENT
2011-2012
Coursework: Carlsberg Group – Calculation and Interpretation of Ratios
30% of the total grade
Word Count: 4000 ± 10%
Course: Accounting for Managers
Instructor: Dr. Stergios Leventis
October 2011
Table of Contents
Introduction……………………………………………………………………………………………………3
Beer Industry Structure, Dynamics and Profitability……………………..………………3
Beer Drinking Culture…………………………………………………………………………………….5
Porters Five Forces Analysis of Brewery Industry………………………………………….6
Company Background…………………………………………………………………………………….7
RATIOS…………………………………………………………………………………..……………………11Benefits and Limitations………………………………………………………………………………11
Interpretation of Ratios………………………………………………………………………………..12
Red Flags………………………………………………………………………………………………………21
Conclusion…………………………………………………………………………………………………….22
Appendixes……………………………………………………………………………………………………24
Bibliography…………………………………………………………………………………………………27
Introduction
For this assignment, the main task was to choose a company listed on NYSE that belongs to “sin industries”, to calculate the ratios for this company and to interpret them. As brewery industry belongs to “sin industries”, Carlsberg AS Group was chosen. It is the fourth largest brewing group in the world.
In order to be able to comment on the financial position, performance and prospects of the firm, as mirrored by ratio analysis of the financial