It is a multinational company with strong recognition and reputation as one of the leading pharmaceutical, health and beauty companies in the world. Alliance Boots revenue is in excess of £22.5 billion with many outlets in more than 20 countries.
This report shows Alliance boots' profit for the year after tax, net worth, net cash inflow or outflow, total non-current assets and gross profit.
Organisation Structures
With over 115,000 employees and numerous pharmaceutical outlets, Alliance Boots work directly with manufacturer of pharmaceutical, beauty and health products, using experienced pharmacists to provide services to their customers.
The name Alliance Boots was formed in 2006 after a successful merger Boots Group and Alliance UniChem. The merger put the company in a very strong financial position allowing the company to grow by spreading its distribution network to other countries in the world.
The company's headquarters is in Zug Switzerland, Boot a subsidiary of Alliance Boots with up to 670 optical services in the UK; almost half of these figures operate as franchise. The company has strong range of good brands like, No7, Soltan, Botanics, Almus, Boots Laboratories and Alvita. Alliance Boots 2010.
Profit for the Year after Tax
In business accounting profit after tax (PAT) is the sum of overall profit a company make after subtracting all expenses including interest, tax and shareholder's dividends. It is important that shareholder dividends are taken out before the rest amount can be used to run the company.
From the group statement of financial position Alliance Boots 2009/10 profit after tax
= £604 Million. This figure show that the company is doing very well in with cash in hand after tax of £ 604 Million
Net Worth
The simple way to explain net worth is the sum of the company's asset in including non-current (good will, property and others) plus current assets ( cash in and cash equivalent, trade and other receivables and others) minus the sum of the company' current (borrowing, provisions etc.) and non-current (other payables) liabilities.
In the group statement of financial position of Alliance Boots 2009/10, Net Worth is:
Total Assets (Current + Non-Current) - Liabilities (Current + Non-Current Liabilities).
£ 18,774 Million - £ 14,404 Million = £ 4,340 Million
The net worth figure show that the company can comfortably pay off its debt and have extra cash to use to run the business.
Net Cash Inflow or Outflow
In the group statement of financial position of Alliance Boots 2009/10
Cash Inflow = £1,116 Million
Cash outflow = £1,073 Million.
The figure above show that the company financial status is not any danger as the amount of inflow is higher than outflow.
Total Non-Current Assets
It is classified as a long-time investment property because it value is not an available cash until a year or within a year, by adding all the non-currents assets together it will give us total non-current assets. Examples are property, equipment, other receivables, etc. The long-time value of non-current assets is more lucrative compare than current assets, but hard to turn into cash value.
From the group statement of financial position of Alliance Boots 2009/10, Non-Current Assets was £13,809 Million. This figure shows that the company has good financial properties that can be converted in to cash in case of emergency.
Gross Profit
When the cost of goods sold is deducted from the sales revenue the remaining is gross profit. Atrill Peter, McLaney Eddie p 75, 2011. It is a useful accounting tool that explains the competitive strength of a company, can also be used to determine the financial health of an organisation.
Gross Profit is Revenue - Cost of sales £18,722 Million - £14,355 Million = £4,367
Conclusion
In conclusion, the above statements have said it all; it shows that Alliance Boots 2009/10 the Group has reported strong growth in revenue, while at the same time benefiting from historically low interest rates, which has resulted in a robust cash flow.
The current slowdown in the global economy is preventing Alliance Boots to invest in other potential areas in various countries.
