企業(yè)狀況分析例文

1、contents1 discussion 2 - 131.1 history of british american tobacco 1.2 how british american tobacco financed1.3 the reason of imperial tobacco choosing the method of financing1.4 the reflect of the operation of efficient capital markets1.5 discussions of dividend policy1.6 analysis of the p/e ratio2

2、 references 143 appendices 15 - 171.1 history of british american tobacco british american tobacco has been in business for more than 100 years, trading through the turbulence of wars, revolutions and nationalisations as well as all the controversy surrounding smoking. the business was formed in 190

3、2, as a joint venture between the uks imperial tobacco company and the american tobacco company founded by james buck duke.1902the uks imperial tobacco company and the american tobacco company of the united states form a joint venture, the british american tobacco company.19041908expansion: to the w

4、est indies, ceylon and egypt, holland, belgium, sweden and norway, finland, indonesia and east africa1910british american tobaccos sales are more than 10 billion cigarettes. profits grow correspondingly very quickly.1911expansion: to malaya (now malaysia)1911the american tobacco company divests its

5、shares in the joint venture. british american tobacco is listed on the london stock exchange and british investors acquire most of its american parent's shares. the company is now free to conduct its business independently throughout the world, except in the uk where territorial agreements remai

6、n with imperial.1913a local tobacco manufacturer in argentina, bozetti & co. is acquired. 1914brazilian company souza cruz is purchased today, one of the groups leading subsidiaries.1915british american tobacco cigarette sales total 25 billion.1921 cigarrera bigott sucs is formed in venezuela an

7、d, in the following few years, acquisitions are made in chile, mexico and central america.1927british american tobacco moves into the us market with the acquisition of a small north carolina company, brown & williamson.1953with new chairman duncan oppenheim, 1953 signals a fresh start for the co

8、mpany. 1956british american tobacco obtains the overseas business of benson & hedges. with state express, benson & hedges becomes one of the cornerstones of the groups predominance in the international brand market.1960british american tobacco begins to diversify into paper and pulp, cosmeti

9、cs and the food industry. stakes in wiggins teape and mardon packaging are among the companys initial moves. 1964acquisitions the uks tonibell ice cream company and the lenthéric fragrance house. brown & williamson and british american tobacco companies in south africa and australia also be

10、gin to invest in the food industry.1966british american tobacco acquires cigar manufacturer henri wintermans and company profits exceed £100m for the first time. 1976the group undergoes radical reorganisation. with a new chairman, peter macadam, operations are coordinated under a new holding co

11、mpany, b.a.t industries.1978industries is the uks third largest company and the largest tobacco manufacturer in the free world with annual sales of 500 billion cigarettes.1992british american tobacco acquires hungarys pecsi dohanygyar.1994acquisition of the american tobacco company 1998bat industrie

12、s divests its financial services businesses. that same year the company acquires cigarrera la moderna, the leading cigarette company in mexico.british american tobacco p.l.c. becomes a separately quoted company on the london stock exchange, with martin broughton as its chairman1999british american t

13、obacco, the second largest tobacco company, announces a global merger with rothmans international, the fourth largest. with the merger, british american tobacco adds to its portfolio several major brands, including dunhill.2001the group announces a series of new investments in countries such as turk

14、ey, egypt, vietnam, south korea and nigeria.2004us business of brown & williamson and rj reynolds tobacco company are combined and reynolds american is formed a stronger, more sustainable business in which british american tobacco has a 42% share.2007sees snus test marketing extended to canada a

15、nd the sale of a number of our pipe tobacco trademarks to danish company orlik tobacco company2009richard burrows takes over as chairman of british american tobacco p.l.c. in november 2009.1.2 how british american tobacco tobacco financedgenerally, company should be financed by a combination of long

16、-term and short-terms.british american tobacco is financed by borrowing which including the non-current and current liabilities. and another financed method is issue of shares.borrowing: this is the mean method to financed for the company. the proportion accounted for 59.29%, total amount is £9

17、712 millions. it's the foundation of the financial structure of a company and mean source of its capital. borrowing capital including the below items.eurobonds: eurobond is an international bond that is denominated in a currency not native to the country where it is issued. this item's total

18、 amount of the company is £5500 millions.uk bonds: this is similar to the eurobonds, they are issued in uk. this item's total amount of the company is £2297 millions.us securities: commission underwriting refers to the method whereby a securities company undertakes to sell securities o

19、n behalf of the issuer and return all unsold securities to the issuer at the end of the underwriting period. this item's total amount of the company is £620 millions.floating rate notes: a bond on which the coupon is reset periodically in line with a money market reference rate such as libo

20、r. this item's total amount of the company is £467 millions.other notes: out of these bonds, there are other fragmentary bonds. this item's total amount of the company is £119 millions.issue of shares: share is the certificates which is issued to investor when the company to financ

21、ed. it's represents the ownership of the company of shareholders. this the second most important method to financed of the company. the company have collected £7613 millions. the proportion accounted for 40.72%. this is the high specific gravity as well.following the success of the rights i

22、ssue, british american tobacco are comfortable with their current financing position.gearing: is a measure of the ratio of debt to equity. gearing= long-term debt/ equity = non-current borrowings / equitygearing adds the effect of financial risk. the higher gearing the more risky the company is

23、 considered.in 2008,gearing= 9437m/7215m = 1.308in 2009,gearing= 9712m/7912m = 1.228in accordance with the gearing data of british american tobacco, it shows us a slightly high gearing level which represents high financial risk. but overall, this level is in reasonable range.by reference to the grou

24、p cash flow statement, there was two mean changes to british american tobacco as follows. 2008 £m 2009 £mnet cash from investing activities: purchase of bentoel 0 (370) purchase of tekel cigarette assets (873) (12) proceeds from st trademark disposals and purchase of st business (1243) 187

25、 (2386) (589)net cash from financing activities: proceeds from increase in and new borrowings 3518 1447 movements relating to derivative financial instruments (656) (267) purchase of own shares (400) 0 reductions in and repayment of borrowings (731) (1853) (374) (3405)1.3 the reasons of the company

26、has chosen these method of financingthe group mainly adopts the equity and debt finance.from the preceding section, we have got that the gearing level of the group is high which means the debt level is high.equity finance represents the highest level of risk faced by investors. this is due both to t

27、he uncertainty surrounding dividend payments and capital gains. therefore, the group also chooses debt finance.generally, cost of debt is lower than cost of equity, because the interest payment of debt is deducted before tax. that is to say, profit will increase and it will benefit to the equity sha

28、reholders wealth. thus, group raises debt finance more than equity finance. if the group only chooses equity finance, it will carry greater financial risk. moreover, debt finance is good way to solve capital shortage. thus, the group chooses the method of equity and debt finance. thus, the group man

29、ages the capital structure in an efficient way in order to minimise the cost of capital whilst ensuring that british american tobacco group have access to on-going sources of finance such as the debt finance in capital markets.according to the proposition of capital structure states that an optimal

30、capital structure does exist and a company can therefore increase its total value by using the debt finance within its capital structure. thus, bringing into gearing will contribute to the shareholder wealth maximization to the company. as a company starts to replace more expensive equity with cheap

31、er debt finance, shareholders are initially indifferent to the introduction of a small amount of financial risk. the wacc of the company will fall initially due to the benefit of the cheaper debt finance outweighing any increase in the cost of equity finance. hence, wacc will fall until to an optima

32、l capital structure. however, the british american tobacco group continues to gear up, increasing its gearing more, the benefits with using debt finance are outweighed by the increase in the companys equity finance. then, wacc will start to rise till the high level gearing. at very high levels of ge

33、aring, bankruptcy risk causes the cost of equity curve to rise and also cause the cost of debt to start to rise. hence, it will decrease the shareholder wealth. as far as i am concerned, it is not appropriate for british american tobacco group to finance of this type. for the long-term, the higher g

34、earing ratio will not benefit to british american tobacco. once the debt finance level is too high, the group will not get loan from or creditors and bankruptcy risk will rise. interest cover is a measure of the adequacy of a company's profits relative to interest payments on its debt. the lower

35、 the interest cover, the greater the risk that profit will become insufficient to cover interest payments. the interest cover went down from 2008 to 2009. however, the interest cover is more than one. for the short-term, the group also has ability of the debt solvency. in this point, the group can u

36、se debt finance.when earnings are historically stable or low risk, a higher level gearing than normal may be suitable. conversely, when profits are volatile, a prudent gearing policy should be adopted. in line with the profit for the year 2005-2009 in the group, the overall profit gradually has asce

37、nded and stable. for the short-term, it will not have a significant impact on a higher level gearing. then, the company will concern the change of interest cover in the following years. if the profit starts to volatile, the prudent policy will be considered.whereas, the company has faced many risks,

38、 such as financial risk, interest rate risk, liquidity risk, capital risk and credit risk on the borrowings. the group has taken measure of these risks which control the risk efficiently. for the long-term, the group still should pay more attention to these risks in order to decrease the gearing lev

39、el and to achieve desirable debt solvency. 1.4 the reflect of the operation of efficient capital marketsthe record the companys share price and the values of the appropriate sector index and the ftse 100 index as belows:ref :in prosperous economic market, all kinds of markets play a fundamental role

40、 in resource allocation, these markets combine into an unified and interrelated system. financial market is an important part of this unified market system.the fluctuations in financial market reflect the operating performance of the listed companies in the entity economy market. in general, the mor

41、e developed the financial market are, the quicker and the more accurate the market reactions are.according to records, we found that the stock price of bat fluctuated largely for several times. we now focus our analysis on the big jump and drop on dec. 16th 2010 and jan. 13rd 2011.as shown in the ta

42、ble above, the stock price went up 0.68% and 1.28% on dec. 16th 2010 and dec. 17th 2010, respectively. why? this is largely due to the great success of bats new product, kent convertibles cigarettes in korean market. kent convertibles cigarette consists of two parts: the charcoal and a small cellulo

43、se cigarette filter tip containing a fluid-filled spices capsule. when the consumers tap the filter tip while smoking, the smell of spices release from the spices capsule, which brings the consumers a totally different smell and experience. this new product gained large popularity among the korean c

44、onsumers and gained 2.3% market share in big seoul (including urban and suburban) in the first month after introducing. the big success of bats new product in korean market definitely increased investors confidence on the future prospect of the company. this kind of good news helped the company attr

45、act favorable attention and more investors chose to invest in the company. in the meanwhile, the existing shareholders continued to hold their shares or bought more shares also contributed to the big jump of the stock price.the huge drop on jan. 13rd 2011（3.47%）was because bat was rating from "

46、buy" down to "neutral" by merrill lynch. the downward rating affected the investors investment psychological largely, to be more exact, it was a blow to investor confidence on the company. to react to this negative news, the prospective buyers changed their minds and gave up buying ba

47、ts share or postponed the investment, which had a pressure on the stock price. in addition, the existing shareholders began to worried about the companys prospect, and this led to some shareholders withdraw their money, thus the stock price dropped.according to the analysis above, we can conclude th

48、at the fluctuations in financial market reflect the operating performance of the listed companies in the entity economy market and the market reaction is quick, almost on the same day of the news released. after referring to the overall market performance, we can see that the overall market has litt

49、le influence on these big fluctuations of bat. 1.5 discussions of dividend policy earnings per share are calculated by using the weighted average shares in issue .the group management believes that the level of eps provides a useful comparison of business performance.the adjusted eps of british amer

50、ican tobacco as follows：yearadjusted epschange31/12/200590.06p+17%31/12/200698.93p+10%31/12/2007108.53p+10%31/12/2008129.60p+19%31/12/2009153.80p+19%ref:based on the consolidated income statement for 5 years, the eps has gradually and steady increased from 2005 to 2009. eps measures the amount of pr

51、ofit earned during the financial year attribute to each ordinary share which is an index of profitability. the higher eps, the greater profitability for the company. it is a very important component to consider the share price. therefore, the growth in eps for the group is advantaged, which can attr

52、act more investors to invest the group.many factors should be considered for dividend policy, such as dividend cover and liquidity.i) dividend cover- dividend cover measures the amount by which current year profits available for dividend exceed the cost of the dividend paid. the higher the cover, th

53、e better the ability to maintain dividends if profit drops. generally speaking, a ratio of 2 or higher is considered safety. in the british american tobacco, the profits and dividend cover figure from 2005 to 2009 are as follows,year20092008200720062005profit after tax2956m2659m2287m2048m1894mdivide

54、nd cover1.551.551.641.771.92ref :according to these data, dividend cover is decreased from 2005 to 2009. this may be a good news for company. because that a relatively smaller dividend cover will remain more money for the company in next year. but on the other hand, it also can lead reduction of its

55、 investors. therefore, when the company management make dividend policy, should fully consider these two factors, carefully weighing these factors to provides a good decision for the company.ii) liquidity liquidity is cash transaction, so the company should consider carefully the effect on the compa

56、nys liquidity position of dividends. the group would be exposed to liquidity risk from having insufficient funds to meet the financing needs of the group due to the debt finance of acquisition.there are a number of different dividend policies or payout strategies that companies can adopt.·fixed pe