Delta Beverage Essay

1470 Words6 Pages
Delta Beverage Case Names / student numbers: Bilawal Khan: 2548920 Nikola Stefanov: 2563196 Tsvetan Dimitrov: 2553008 Introduction Delta Beverage Group is a large bottling company, which is an important part of the franchise system of PepsiCo. Delta Beverage has also been an important manufacturer of cans, bottles, and other packaging for several brands. One of the materials which Delta uses to produce cans, is aluminum. Now rising aluminum prices are posing a threat to the firm, so the question is should the CFO of Delta Beverage Mr. Bierbaum engage in buying aluminum futures. We will calculate some ratio’s to understand the financial position of the company, before we start with an analysis of the risks. The variables about the firm’s environment, the governance, the strategy, financial structure and operations are essential the firm. Current financial situation Liquidity ratios: Year Current ratio= Current Assets/Current Liabilities Quick ratio= Cash+Accounts Receivables+Other Assets/Current Liabilities Cash ratio= Cash+Other Assets/Current Liabilites 1989 39254/22733=1,727 5621+22601+3298/22733=1,336 5621+2139/22733=0,341 1990 33196/19233=1,726 3053+20119+3298/19233=1,376 3053+3298/19233=0,330 1991 36204/21998=1,646 4032+17736+4628/21998=1,200 4032+4628/21998=0,394 1992 41349/27291=1,515 11327+14195+5220/27291=1,126 11327+5220/27291=0,606 1993 50192/18147=2,766 17272+17596+5220/18147=2,209 17272+5220/18147=1,239 Current ratio: is the ration to measure whether the firm has enough resources to pay its debt over the next 12 months. We can see that the current ratio is increasing from 1989 till 1993. Quick ratio: is the ratio to ascertain whether a company’s short-term assets are readily available to pay off its short-term liabilities. As we can see from the table the quick ratio is also

More about Delta Beverage Essay

Open Document