Financial Accounting and Control System Essay Example | Topics and Well Written Essays - 500 words

Financial Accounting and Control System - Essay Example The company uses online platforms to assist in delivery services as orders are placed online. Associated British Foods is an international company with diversification into retail, ingredients and food. It is present in 47 countries on different continents, that is, Southern Africa, Asia, Europe, the Americas and Australia (Associated British Foods plc., 2014, p.2). The company operates in five different segments, each dealing with different products. The segments include retail, agriculture, grocery, sugar and ingredients. The sugar segment produces and sells sugar while the agriculture segment focuses on providing farmers with farm implements while buying their produce to supply manufacturers, processors and retailers (Associated British Foods plc., 2014, p.23). Through Primark, the retail segment operates retail outlets that up-to-date fashion merchandise in different countries. The grocery segment deals in groceries such as cereals and spices. The ingredients segment on the other hand deals with yeast and baking ingredients. It also deals with yeast extracts, lipids, and enzymes. In terms of the profit margin and the gross margin ratio, Associated British Foods has higher ratios comparative to Dairy Crest. That may indicate that Associated British Foods generates more profits than Dairy Crest (Fridson and Alvarez, 2011). Associated British Foods’ Return on Assets is higher than that of Dairy Crest. However, Dairy Crest has a higher return on capital employed and a higher return on equity. That may indicate that dairy crest is better when it comes to maximizing resources to generate profits (Bragg, 2012). The liquidity ratios indicate that Dairy Crest is in a better position to meet its obligations as they become due comparative to Associated British Foods. Dairy Crest registers higher liquidity ratios. From the ratios, it may be seen that although Associated British Foods