The paper discusses the financial trends in Meiji Holdings and General Mills Inc during the year 2012 and 2013. The trends will be covered for the following items:
- Cost of Goods Sold
- A/C Receivables
- A/C Payables
Trends in Revenue:
Referring to the above data and graphs, we can infer that during 2013, the revenue figures of both the companies increased significantly. However, increase in revenue figures was more profound in Meiji Holdings, which during a year, was able to increase its revenue by 9.62%. On the other hand, during 2013, General Mills Inc’s revenue amounted to $17774.1, recording an increase of 6.70%.
Trends in Cost of Goods Sold:
The above table indicates that during 2013, cost of goods sold for Meiji Holdings increased to $7326.8 Million, recording an increase of only 0.72% in comparison to the previous year. This was sustainable for the company as during the year, it was able to increase its revenue by 9.62% and a 0.72% increase in COGS leads to jump in gross profits of the company.
On the other hand, during 2013, General Mills Inc’s COGS increased to $11350.2 Million, recording an increase of 6.94%. This was not sustainable for the company as during the year, while it’s COGS increased by 6.94%, its revenue was increased by 6.70%, thus indicating a possible trend of losses to the company in the coming years.
Trends in Inventories:
Referring to the above data, we can infer that during 2013, the inventories level of General Mills Inc increased from $1478.8 Million to $1545.5 Million, recording an increase of 4.51%. On other hand, Meiji Holdings had a significant increase in its inventory levels, which by the end of 2013 amounted to $1288.612 Million, recording an increase of 16.75% in comparison to the previous year.
Trends in Accounts Payables:
Following the trend in accounts payable of the companies, we find that during 2013, there was a significant rise of 23.88% in the accounts payable for General Mills Inc. On the other hand, Meiji Holding’s accounts payables increased by 4.74% and amounted to $1155.7 Million by the end of 2013.
Trend in Accounts Receivables
Referring to the above calculations for accounts payables of both the companies, during 2013, the accounts payables of General Mills increases significantly from $1148.2 Million to $1423.2 Million, recording an increase of 23.88%. On the other hand, accounts payables for Meiji Holdings increased from $1103.4 Million to $1155.7, recording an increase of merely 4.74%.
General Mills Inc. (2013). Annual Report. General Mills Inc.
Meiji Holdings. (n.d.). Retrieved May 17, 2014, from Bloomberg Businessweek: http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=MEJHY&dataset=incomeStatement&period=A¤cy=US%20Dollar
Meiji Holdings. (2013). Annual Report. Meiji Holdings.