Case Study Of Diageo PLC

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Diageo PLC is a British multinational company that is headquartered in London. The business operates in the alcoholic beverage industry and Diageo is the largest producer of spirits worldwide and they also make beers and wine. Many recognisable brands are owned by Diageo including Smirnoff, which has the greatest sales of vodka worldwide, baileys, the largest seller of liqueur worldwide, Jonnie Walker, the best seller of scotch-whiskey worldwide and Guinness, the best-selling stout in the world. Some of Diageo’s brands have been here for centuries while others were created not too long ago. Guinness has been present since the 18th century for example. Some 180 countries purchase Diageo’s goods and 80 countries are home to the company’s offices.…show more content…
So in general the company is in a healthy financial position by owning more than they owe. However in 2012 their liabilities amounted to £15.5 million. Therefore in 12 months Diageo’s debt has risen by £1.4 million. But this will not concern the company because its total assets have been increased by £2.7 million from 2012 to 2013. Diageo’s total equity this year was £8 million which is a £1.2 million increase since that time last year. With assets and equity increasing, 2013 has been a successful year financially for the…show more content…
By having more equity than last year, their dividend yield has predictably increased. In 2013 the dividend yield per share was £44.4 million and this amount had increased annually from 2009 up until that point. In these turbulent times of economic disparity this multinational company is benefitting many. Who knew alcohol was such a popular product worldwide. Undeniably Diageo have excelled in recent times and this is evident through their basic earnings per share. In 2013 it was at £99.3 million. Compare this to 2012 where basic earnings per share was £77.8 million and in 2009 it stood at £64.6 million. Shareholder funds have gone down since last year meaning the value of shareholders investments in the company has decreased. In 12 months it has dropped by almost £1 million and now stands at £18,673 million. This is still a credible amount and will be no immediate worry to Diageo because most of their income statement, balance sheet and changes in equity sheet have shown positive

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