Fyffes Ratio Analysis
Fyffes Plc
EXECUTIVE SUMMARY
One way of determining if a company is doing well is through the use of financial ratio analysis.
Not only are they used by management to measure the firm’s performance, but are used by other people interested in the performance of the company such as stockholders, bankers and investors.
For the purpose of this assignment, we are going to analyze financial ratios of Fyffes plc (ISEQ: FFY), a leading international importer and distributor of tropical produce.
As the interpretation as well as an understanding of financial ratios is crucial when calculating ratios, we are analyzing Fyffes from different angles. * The company’s history and recent development of the company (2006-2010) help us to understand decisions that were made through the period as well as to understand company’s financial statements at the time. * Researching about the company’s products and market position and analyzing the company’s strengths, weaknesses, opportunities and threats help us to not only place company within the right industry but also asses its chief competitors and its advantage/disadvantage over those. * Recognizing and analyzing chief competitors, Chiquita Brands International, Dole Foods Company, and Fresh Del Monte Produce, is crucial when calculating ratios as comparison with competitors is one of most popular methods when interpreting results. * The strategic group map shows that Chiquita Brands International (CQB) has the closest product range. Therefore, ration analysis data is based on the Fyffes plc’s and Chiquita Brands International, Inc.’s Consolidated Income Statement and Consolidated Balance Sheet. * At the end of this assignment, we have predicted the future share price of Fyffes plc is going to rise based on the analysis of its revenue growth trend and current health financial performance.
TABLE OF CONTENTS INTRODUCTION…………………………………………………………………….. | 4 | 1. COMPANY OVERVIEW…………………………………………………….. |
EXECUTIVE SUMMARY
One way of determining if a company is doing well is through the use of financial ratio analysis.
Not only are they used by management to measure the firm’s performance, but are used by other people interested in the performance of the company such as stockholders, bankers and investors.
For the purpose of this assignment, we are going to analyze financial ratios of Fyffes plc (ISEQ: FFY), a leading international importer and distributor of tropical produce.
As the interpretation as well as an understanding of financial ratios is crucial when calculating ratios, we are analyzing Fyffes from different angles. * The company’s history and recent development of the company (2006-2010) help us to understand decisions that were made through the period as well as to understand company’s financial statements at the time. * Researching about the company’s products and market position and analyzing the company’s strengths, weaknesses, opportunities and threats help us to not only place company within the right industry but also asses its chief competitors and its advantage/disadvantage over those. * Recognizing and analyzing chief competitors, Chiquita Brands International, Dole Foods Company, and Fresh Del Monte Produce, is crucial when calculating ratios as comparison with competitors is one of most popular methods when interpreting results. * The strategic group map shows that Chiquita Brands International (CQB) has the closest product range. Therefore, ration analysis data is based on the Fyffes plc’s and Chiquita Brands International, Inc.’s Consolidated Income Statement and Consolidated Balance Sheet. * At the end of this assignment, we have predicted the future share price of Fyffes plc is going to rise based on the analysis of its revenue growth trend and current health financial performance.
TABLE OF CONTENTS INTRODUCTION…………………………………………………………………….. | 4 | 1. COMPANY OVERVIEW…………………………………………………….. |
Bibliography: Company Overview 1.) Data Monitor Research Store: Fyffes Plc; Date:August 5, 2011;Accessed March 5, 2012 from: http://www.datamonitor.com/store/Product/fyffes_plc?productid=195B4AA3-2879-48F5-9273-0E3B3D521293 2.) Funding Universe :Fyffes Plc; Date:February 2000, Accessed February 5, 2012 from: http://www.fundinguniverse.com/company-histories/Fyffes-Plc-Company-History.html 3.) Fyffes Plc: Annual report 2010; Date: April 7, 2011; Accessed March 5, 2012 from: 4.) Fyffes Plc: Our Story; Accessed March 6, 2012, from: http://www.fyffes.com/gns/the-blue-label/our-story.aspx 5.) Finfacts: Fyffes wins Supreme Court insider trading case against DCC - Fyffes ' shares jump by 10; Date: July 27, 2007; Accessed March 7, 2012 from: http://www.finfacts.com/irelandbusinessnews/publish/article_1010698.shtml 6.) Fyffes Plc:Fyffes Plc Annual Report 2010; Date: April 7, 2011; Accessed March 5, 2012 from: http://ww7.global3digital.com/fyffesplc/en/financialreports/?year=2011 7.) Morningstar: Fyffes Plc; Date: Septermber 7, 2006; accessed March 6, 2012 from: http://ww7.global3digital.com/fyffesplc/en/ 10.) Research and Markets: Fyffe’s plc- strategy, SWOT and Corporate Finance Report; published by Research and Markets, Guinness Centre; Date: December 31, 2011; accessed March 18, 2012 from: http://www.transworldnews.com/945530/c1/fyffes-plc-ffy-financial-and-strategic-swot-analysis-review-new-company-profile 12.) Fyffe’s and the community; published by Fyffe’s plc; Date: October10, 2010; Accessed March 18, 2012 from: * Hoovers: Fyffe’s plc overview; published by James O’Dwyer; Date: December 2010; Accessed March 18, 2012 from: http://www.hoovers.com/company/Fyffes_plc/sryfji-1-1njht4-1njfaq.html * Hoovers: Fresh Del Monte Produce, Inc. competition and overview; published by Richard Contreras; Date: June, 2011; accessed March 18, 2012 from: http://www.hoovers.com/company/Fresh_Del_Monte_Produce_Inc/hhfrti-1-1njht4-1njfaq.html * Hoovers: Chiquita Brands International, Inc. competition and overview; published by Tanios Viviani; Date: December, 2011; accessed March 18, 2012 from: http://www.hoovers.com/company/Chiquita_Brands_International_Inc/rrhhri-1-1nji3i.html * Hoovers: Dole Food Company, Inc. competition and overview; published by Tanios Viviani; Date: June, 2011; accessed March 18, 2012 from: http://www.hoovers.com/company/Dole_Food_Company_Inc/rfyfyi-1-1njht4- 1njfaq.html * Vuru: Fresh Del Monte Produce Inc. Financial Strength; Figures in U.S; Date: December 31, 2011; Accessed March 18, 2012 from: http://www.vuru.co/analysis/FDP/financialStrength * Fresh Del Monte: the key strengths of del Monte research and development; published by Mohammad Abu-Ghazale; Date: January 2012; Accessed March 18, 2012 from: http://www.freshdelmonte.com/company-science-research.aspx Appendices Appendix 1:Fyffes plc: Preliminary results 2011;Date: March 1, 2012; Accesses March 6, 2012 from: http://ww7.global3digital.com/fyffesplc/en/financialreports Appendix 2 and Appendix 3: Fyffes Plc: Key Financial Data; Published April 7, 2011; Accessed March 5, 2012, from: http://ww7.global3digital.com/fyffesplc/en/keyfinancialdata Appendix 4 and Appendix 5: Chiquita Brands International plc: Annual report; Published 2011; Accessed March 5, 2012, from: