Anheuser–Busch Companies, Inc.

Kyle DeVane

ACG2021 - 080

Anheuser – Busch experienced a reasonable growth in both sales and earnings during the 2003

financial year.http://www.anheuserbusch.com/annual/2003/complete_ar.pdf

• CEO : Patrick T. Stokes • Home Office: One Busch Place, St.

Louis, MO 63118 • Recent end of Fiscal Year: Dec. 31,

2003• Products: Beer, Entertainment,

Packaging• Main area of Business: United States

• Independent Auditors: Independent Auditors:

PricewaterhouseCoopersLLPPricewaterhouseCoopersLLP

• The independent auditors for Anheuser-The independent auditors for Anheuser-Busch Companies, Inc. state that all Busch Companies, Inc. state that all opinions are in guidance with the opinions are in guidance with the accounting principles practiced in the US accounting principles practiced in the US and they state that all information has and they state that all information has been presented fairly and accurately.been presented fairly and accurately.

• Recent Stock Price: $52.68• 12 month trading range: $54.74 - $48.51• Dividend per share: $0.83• Date of Information: Dec. 31, 2003• In my opinion I would tell stock holders to

sell because the stocks have been vary high over the past year, rising a significant amount of money and the price now is almost as high as its been so it should go down in the near future.

In my opinion, Anheuser-Busch is going to continue to grow and expand all

across the world. The company ended 2003 with 21 straight quarters of double-digit earnings-per-share-growth. It is their goal to be “prepared for the challenges”

and continue their on going success.

http://www.anheuser-busch.com/annual/2003/Letter_Shrhldr.pdf

http://www.anheuser-busch.com/annual/2002/abfinalproxy.pdf

•Anheuser-Busch uses a Multi-

step Income Statement

2003 (Millions) 2002Gross Sales: $ 16320.2 $ 15686.8

Operating Income: $ 3199.3 $ 2979.7

Net Income: $ 2075.9 $ 1993.8

Gross Sales, Operating Income and Net Income all increased from 2002 – 2003.

Assets = Liabilities + Owners Equity ALOE (in millions)

2003 14689.5 = 1857.2 + 12262.32002 14119.5 = 1787.2 + 12332.3

•Both cash flows from operations and net income have Both cash flows from operations and net income have increased from the past year.increased from the past year.•Anheuser-Busch is growing rapidly through the selling of its Anheuser-Busch is growing rapidly through the selling of its product (beer), Entertainment parks (Baseball, Football, product (beer), Entertainment parks (Baseball, Football, Busch Gardens) & different kinds of Real Estate projects. Busch Gardens) & different kinds of Real Estate projects. •The company’s primary source of income has been through The company’s primary source of income has been through the issue of long term debts.the issue of long term debts.•Over the past 2 years, cash has increased.Over the past 2 years, cash has increased.

•All of the accounting policies used by Anheuser-Busch Companies, Inc. are authorized methods that have been approved and backed up by its investors. However, significant policies were not available or could not be found when looking for individual policies.

2003 2002

Working Capital $1489.2 $1362.7Current Ratio 7.63 times 7.14 times

Receivables Turnover 23.09 times 21.41 times

Avg. Days Sales Uncollected 26.38 days 24.31 days

Inventory Turnover 1.52 times 1.21 times

Avg. Days Inventory on Hand 61.4 days 72.3days

2003 2002

• Profit margin 1.5% 1.4%

• Asset turnover .96 times .94( t )

• Return on assets 14.3% 13.9%

• Return on equity 17.2% 16.4%

Debt to Equity:

2003 2002

68.5 % 67.4 %or

.685 times .674 times

20032002

• Price/earnings per share 52.68 49.82

• Dividend yield 8.5% 7%