Stock Analysis on Net
Stock Analysis on Net

Diageo PLC (NYSE:DEO)

This company has been moved to the archive! The financial data has not been updated since August 12, 2014.

Analysis of Investments

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Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

Diageo PLC, adjustment to profit for the year attributable to equity shareholders of the parent company

US$ in millions, translated from GBP £

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12 months ended: Jun 30, 2014 Jun 30, 2013 Jun 30, 2012 Jun 30, 2011 Jun 30, 2010 Jun 30, 2009
Profit for the year attributable to equity shareholders of the parent company (as reported) 3,797 4,118 3,158 2,952 2,507 2,621
Add: Fair value movements on available-for-sale investments (144) 141 — — — 6
Profit for the year attributable to equity shareholders of the parent company (adjusted) 3,653 4,259 3,158 2,952 2,507 2,627

Based on: 20-F (reporting date: 2014-06-30), 20-F (reporting date: 2013-06-30), 20-F (reporting date: 2012-06-30), 20-F (reporting date: 2011-06-30), 20-F (reporting date: 2010-06-30), 20-F (reporting date: 2009-06-30).

Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

Diageo PLC, adjusted profitability ratios

Microsoft Excel
Jun 30, 2014 Jun 30, 2013 Jun 30, 2012 Jun 30, 2011 Jun 30, 2010 Jun 30, 2009
Net Profit Margin
Reported net profit margin 16.08% 16.05% 13.31% 14.36% 12.57% 13.20%
Adjusted net profit margin 15.47% 16.59% 13.31% 14.36% 12.57% 13.23%
Return on Equity (ROE)
Reported ROE 32.95% 35.32% 34.75% 36.22% 40.65% 50.33%
Adjusted ROE 31.70% 36.53% 34.75% 36.22% 40.65% 50.45%
Return on Assets (ROA)
Reported ROA 9.79% 9.91% 8.69% 9.61% 8.37% 8.96%
Adjusted ROA 9.42% 10.25% 8.69% 9.61% 8.37% 8.98%

Based on: 20-F (reporting date: 2014-06-30), 20-F (reporting date: 2013-06-30), 20-F (reporting date: 2012-06-30), 20-F (reporting date: 2011-06-30), 20-F (reporting date: 2010-06-30), 20-F (reporting date: 2009-06-30).

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Diageo PLC adjusted net profit margin ratio improved from 2012 to 2013 but then slightly deteriorated from 2013 to 2014.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Diageo PLC adjusted ROE improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Diageo PLC adjusted ROA improved from 2012 to 2013 but then slightly deteriorated from 2013 to 2014 not reaching 2012 level.

Diageo PLC, Profitability Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Jun 30, 2014 Jun 30, 2013 Jun 30, 2012 Jun 30, 2011 Jun 30, 2010 Jun 30, 2009
As Reported
Selected Financial Data (US$ in millions, translated from GBP £)
Profit for the year attributable to equity shareholders of the parent company 3,797 4,118 3,158 2,952 2,507 2,621
Sales 23,611 25,666 23,734 20,559 19,945 19,859
Profitability Ratio
Net profit margin1 16.08% 16.05% 13.31% 14.36% 12.57% 13.20%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions, translated from GBP £)
Adjusted profit for the year attributable to equity shareholders of the parent company 3,653 4,259 3,158 2,952 2,507 2,627
Sales 23,611 25,666 23,734 20,559 19,945 19,859
Profitability Ratio
Adjusted net profit margin2 15.47% 16.59% 13.31% 14.36% 12.57% 13.23%

Based on: 20-F (reporting date: 2014-06-30), 20-F (reporting date: 2013-06-30), 20-F (reporting date: 2012-06-30), 20-F (reporting date: 2011-06-30), 20-F (reporting date: 2010-06-30), 20-F (reporting date: 2009-06-30).

2014 Calculations

1 Net profit margin = 100 × Profit for the year attributable to equity shareholders of the parent company ÷ Sales
= 100 × 3,797 ÷ 23,611 = 16.08%

2 Adjusted net profit margin = 100 × Adjusted profit for the year attributable to equity shareholders of the parent company ÷ Sales
= 100 × 3,653 ÷ 23,611 = 15.47%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Diageo PLC adjusted net profit margin ratio improved from 2012 to 2013 but then slightly deteriorated from 2013 to 2014.

Adjusted Return on Equity (ROE)

Microsoft Excel
Jun 30, 2014 Jun 30, 2013 Jun 30, 2012 Jun 30, 2011 Jun 30, 2010 Jun 30, 2009
As Reported
Selected Financial Data (US$ in millions, translated from GBP £)
Profit for the year attributable to equity shareholders of the parent company 3,797 4,118 3,158 2,952 2,507 2,621
Equity attributable to equity shareholders of the parent company 11,523 11,661 9,088 8,149 6,167 5,208
Profitability Ratio
ROE1 32.95% 35.32% 34.75% 36.22% 40.65% 50.33%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions, translated from GBP £)
Adjusted profit for the year attributable to equity shareholders of the parent company 3,653 4,259 3,158 2,952 2,507 2,627
Equity attributable to equity shareholders of the parent company 11,523 11,661 9,088 8,149 6,167 5,208
Profitability Ratio
Adjusted ROE2 31.70% 36.53% 34.75% 36.22% 40.65% 50.45%

Based on: 20-F (reporting date: 2014-06-30), 20-F (reporting date: 2013-06-30), 20-F (reporting date: 2012-06-30), 20-F (reporting date: 2011-06-30), 20-F (reporting date: 2010-06-30), 20-F (reporting date: 2009-06-30).

2014 Calculations

1 ROE = 100 × Profit for the year attributable to equity shareholders of the parent company ÷ Equity attributable to equity shareholders of the parent company
= 100 × 3,797 ÷ 11,523 = 32.95%

2 Adjusted ROE = 100 × Adjusted profit for the year attributable to equity shareholders of the parent company ÷ Equity attributable to equity shareholders of the parent company
= 100 × 3,653 ÷ 11,523 = 31.70%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Diageo PLC adjusted ROE improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.

Adjusted Return on Assets (ROA)

Microsoft Excel
Jun 30, 2014 Jun 30, 2013 Jun 30, 2012 Jun 30, 2011 Jun 30, 2010 Jun 30, 2009
As Reported
Selected Financial Data (US$ in millions, translated from GBP £)
Profit for the year attributable to equity shareholders of the parent company 3,797 4,118 3,158 2,952 2,507 2,621
Total assets 38,784 41,559 36,347 30,729 29,943 29,258
Profitability Ratio
ROA1 9.79% 9.91% 8.69% 9.61% 8.37% 8.96%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions, translated from GBP £)
Adjusted profit for the year attributable to equity shareholders of the parent company 3,653 4,259 3,158 2,952 2,507 2,627
Total assets 38,784 41,559 36,347 30,729 29,943 29,258
Profitability Ratio
Adjusted ROA2 9.42% 10.25% 8.69% 9.61% 8.37% 8.98%

Based on: 20-F (reporting date: 2014-06-30), 20-F (reporting date: 2013-06-30), 20-F (reporting date: 2012-06-30), 20-F (reporting date: 2011-06-30), 20-F (reporting date: 2010-06-30), 20-F (reporting date: 2009-06-30).

2014 Calculations

1 ROA = 100 × Profit for the year attributable to equity shareholders of the parent company ÷ Total assets
= 100 × 3,797 ÷ 38,784 = 9.79%

2 Adjusted ROA = 100 × Adjusted profit for the year attributable to equity shareholders of the parent company ÷ Total assets
= 100 × 3,653 ÷ 38,784 = 9.42%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Diageo PLC adjusted ROA improved from 2012 to 2013 but then slightly deteriorated from 2013 to 2014 not reaching 2012 level.