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Jbs S.A.: Name: Muhammad Umar Jahanzaib ACCA ID: 2744513 Mentor: Faraz Tahir

This document contains an analysis of JBS S.A., a Brazilian meat processing company, over a three year period. It includes ratios and financial analyses to evaluate the company's profitability, liquidity, efficiency, and solvency. It also contains a SWOT analysis identifying the company's strengths, weaknesses, opportunities, and threats. The analysis finds declining profitability and liquidity for JBS along with higher efficiency. It recommends the company reduce debt levels, improve internal controls and profit margins, and target premium product lines.

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Adil Saleem
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101 views18 pages

Jbs S.A.: Name: Muhammad Umar Jahanzaib ACCA ID: 2744513 Mentor: Faraz Tahir

This document contains an analysis of JBS S.A., a Brazilian meat processing company, over a three year period. It includes ratios and financial analyses to evaluate the company's profitability, liquidity, efficiency, and solvency. It also contains a SWOT analysis identifying the company's strengths, weaknesses, opportunities, and threats. The analysis finds declining profitability and liquidity for JBS along with higher efficiency. It recommends the company reduce debt levels, improve internal controls and profit margins, and target premium product lines.

Uploaded by

Adil Saleem
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Name: Muhammad Umar Jahanzaib

ACCA ID: 2744513


Mentor : Faraz Tahir

JBS S.A.
BUSINESS AND FINANCIAL ANALYSIS
FOR A THREE YEAR PERIOD
Introduction

Reasons for choosing topic and organization


 Extensive theoretical experience of the topic
 Career aspirations
 Largest business sector of the world
 Renowned company
 Worldwide operations
 The vast amount of information available
Project Aims and Objectives

 Ratio and Competitor analysis


 PEST Analysis
 SWOT Analysis
 Information gathering
 Conclusion and Recommendation
Information Gathering

Secondary Sources Ethical Issues


 Annual Reports and Financial  Plagiarism
Statements  Confidentiality
 Articles and newspapers
 Textbooks
 Websites
Industry Profile

 Ever expanding industry


 Variety of products
 Population growth = Increase in demand
 Intense price competition
Company Profile

JBS S.A. Tyson Foods Inc.


 Founded in 1953 in Brazil  Incorporated on January 31, 1986
 6th largest food processor  7th largest food company
 Processes and trades in animal  Products sold in 115 countries
protein
 Worldwide exporter
 Expanding in US and Australia
Profitability Ratios

Gross Profit Margin


18

16

14

12

10
%

0
2013 2014 2015 2016
Profitability Ratios

Net Profit Margin


6

3
%

0
2013 2014 2015 2016
Profitability Ratios

Return on Equity
20

18

16

14

12

10
%

0
2013 2014 2015 2016
Liquidity Ratios

JBS S.A. Tyson Foods Inc.


1.8 2

1.6 1.8

1.6
1.4
1.4
1.2
1.2
1
ratios

1
0.8
0.8
0.6
0.6
0.4 0.4
0.2 0.2

0 0
2013 2014 2015 2016 2013 2014 2015 2016
Efficiency Ratios

JBS S.A. Tyson Foods Inc.


45 40

40 35
DAYS

35
30
30
25
25

DAYS
20
20
15
15
10
10

5 5

0 0
2013 2014 2015 2016 2013 2014 2015 2016
Solvency Ratios

Gearing Interest Cover


70 14

60 12

50 10

40 8
%

30 6

20 4

10 2

0 0
2013 2014 2015 2016 2016 2015 2014 2013
INVESTOR RATIOS

Earning Per Share


5
4.53
4.5
4
3.5
2.95
3
2.5 2.31 2.37

2 1.6
1.5
1 0.71
0.49
0.5 0.14
0
2013 2014 2015 2016
SWOT Analysis

Strengths Weaknesses Opportunities Threats

• Worldwide • High finance • Successful • Risk of disease


operations income acquisitions spread
• Efficient • High gearing • Marketing • Change in
Working premium cuts eating habits
Capital Cycle • Animal rights
• Diverse range group
of products • Environmental
• Concentrated activists
industry
PEST Analysis

Political Economical Social Technological


• Highly • Foreign • Healthy • Automation
regulated exchange risk dietary habits of production
industry • Inflation • Changing processes
• Banned in • Low GDP in perceptions • Product
China Brazil • Culture and research
• Police beliefs
investigation
• Accusations
of bribery
Conclusion

 Declining profitability
 Declining Liquidity Position
 Higher Efficiency
 Marvelous Sales Growth
 Poor cost management
 Tyson performance was better
 Higher number of threats as well as weaknesses
 Higher number of strengths
 Limited opportunities
Recommendation

 Gearing should be reduced


 Efficient Internal Controls
 Focus on improving margins
 Can target premium class
THANK YOU!

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