Jeronimo Martins Group’s Consolidated Balance Sheet as of 31 December 2011 and 31 December 2010, has been analyzed respectively the correspondents values, structure and relevant changes for assets and Liabilities & Shareholder’s Equity with following conclusions: I.The main assets of Jeronimo Martins Group are noncurrent (about 75%) concentrated mostly in tangible assets (about 50%) followed for the intangible assets (about 18%); II.The current assets are mostly inventories and cash or cash equivalent; III.The main liabilities of Jeronimo Martins Group are current (about 55%) concentrated mostly in trade creditors, accrued costs and deferred income; IV.The noncurrent liabilities are mostly Borrowings;
V.Total Shareholders’ Equity represent around 30% of Total Shareholders’ Equity and Liabilities; VI.The biggest changes in assets, 2010 to 2011, are referred to derivative financial Instruments (-78%) and Cash and Cash equivalents (74%); VII.Changes, 2010 to 2011, in current assets are 27,1% and noncurrent are 2,4%; VIII.The biggest changes in liabilities and total equity are referred to retained earnings (250%) and fair value and other reserves (-101%), provisions for risk and contingences (106%); IX.Changes, in 2010 to 2011, in current liabilities are 11% and noncurrent are -27% and total equity are 32,63%;
The structure, values and changes listed above means that Jeronimo Martins Group had, in 2010 and 2011, mostly of its assets as noncurrent, which aren’t expect to be converted into cash or consumed within 12 month. The current ratio is below 1, so this company doesn’t have a big liquidity. Analyzed the 10 biggest companies in the food area, the current ratio is below those values observed such as in Dole food company (current ratio is 1,5). The current ratio is an entity ability to meet its current obligations or to maturing short term obligations, is an important measure of its financial health.
This company present 0,406 (2010) and 0,464 (2011) current ratios, more current liabilities than current assets. The total debt to equity ratio represents the long term viability of the company, measure the degree of the indebtedness relative to its equity funding. This company present 2 (2010 and 2011) total debt to equity ratio, more total debt than equity, this imply that greater is this ratio greater is strain on the company to make regular payments to debts holders and higher is the risk of bankruptcy.
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