Berger Paint Financial Statement Analysis

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Table of Contents

BACKGROUND        2

Financial Statement Analysis        4

Liquidity Ratios Analysis        4

Solvency Ratios        5

Profitability Ratios        7

Marketability Ratios        8

Recommendations        11

Appendix (1)        12

Berger Liquid Ratios        12

Solvency Ratio        12

Berger Profitability Ratios        12

BACKGROUND

BERGER Paint has been recognized and awarded for its innovations and is trusted as the world’s most innovative paint company.  The company made its colorful entry into the world in 1760 by its founder Lewis BERGER an old German Chemist, who successfully perfected the manufacturing process for Prussian Blue, one of the most important pigments for that period.

Hence, the beginning of BERGER in the Caribbean with the formation of BERGER Jamaica in 1953.  BERGER Paints Jamaica Limited is a subsidiary of BERGER International Private Limited (BIPL) which is a subsidiary of Asian Paints Limited (APL). BERGER is the largest paint manufacturing company in the Caribbean with 95% of its products manufactured locally. The company trades on the Jamaica Stock exchange with the symbol “BRG”. It is a subsidiary of BERGER International Limited, itself a subsidiary of the Asian Paints Group, a conglomerate which ranks among the top four decorative coating companies in the world.

Since earning the distinction of being the first regional paint manufacture to achieve International Standards Organization Quality Mark certification and the Environmental Management Standards, BERGER remains committed to always exceeding customer satisfaction through manufacturing quality products in an environmentally conscious manner. The company offers a wide variety of products which includes home and industrial paint. They also manufacture and distributes decorative, industrial and wood coatings and paint related material.

Since, BERGER is exposed to the rigors and challenges of the Jamaican economy, they have invested heavily in research, which has allowed them to introduce innovative new products to the market. Hence, despite the fall in the economy’s GDP over the years, the country has somehow managed over the past two years, to grow its GDP by 11%. Inflation rate has declined drastically because of the reduced global oil prices and because of this, BERGER Paints Jamaica Limited has experience tremendous growth in the economy and has established their position as market leader.