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I am taking this opportunity to thank all the persons who supported me with this S.B.A
assignment. I would like to express my special thanks of gratitude to my parents for providing
me with the resources and motivation needed and as well as my teacher Mrs. Ashley who
The Berger Paints Jamaica Limited is the business the researcher has chosen to conduct his
research on. Since 1953, Berger Paints Jamaica Limited has been providing innovative, cutting-
edge paint products and services, based on the Company’s long held ethos of delivering lasting
beauty and protection to homes and institutions across Jamaica. Berger Paints Jamaica Limited
remains the largest paint-manufacturing entity in the English-speaking Caribbean, with 95% of
the company’s products manufactured locally. Backed by a strong technical support team,
Berger Paints Jamaica Ltd. has conducted extensive research to develop paint products
specifically for the Caribbean environment. Such research has led to brands including Berger
303 Flat Emulsion, 404 Gloss Oil, Everglow Low Sheen Emulsion and Magicote Flat Emulsion
Berger Paints Jamaica Limited holds the distinction of being the first regional company in the
paint sector to achieve the International Standards Organization (ISO) 9001:2000 Quality Mark
certification in 2002. In 2006, the company attained the ISO 14001:2004 Environmental
Management Standard. In the same vein of high achievement, Berger Paints Jamaica Ltd. has for
over 45 years rewarded exceptional performers in sports, culture and education by sponsoring a
number of annual awards and scholarships. Notable are Berger’s long-standing sponsorship of
the Jamaica Netball Association and the Gibson Relays. The company also sponsored the
Exchange recording some 6,000 local shareholders. Berger’s success is attributed to its strong
and competent team of employees, 60% of whom have served for more than 10 years.
Aims
1. To analyse the performance of Berger Paint Jamaica Limited over the years 2016 and 2017.
2. To assess whether the resources of the business are used in the right manner
Objectives
1. To compare the years 2016 and 2017 and see which year was better
Performance Analysis is the process of identifying the financial strengths and weaknesses of the
firm by properly establishing the relationship between the items of balance sheet and profit and
loss account. It also helps in the short-term and long-term forecasting and growth can be
out by professionals who prepare reports through the use of info obtained from financial
statements and other reports. Besides, one key area of financial analysis is the extrapolation of
As explained by Investopedia, accounting analysis is one of the most common techniques for
accounting analysis is calculating ratios from the data to compare with those of other companies
or with the past performance of the company. For instance, retur on assets is a common ratio
which is used for determining the efficiency of a company at utilization of its assets as well as a
Past performance
The accounting analysis uses past statistics across historical time periods for a single company,
Future performance
The accounting analysis is performed by utilizing historical figures and certain statistical and
mathematical techniques, counting present and future values. This extrapolation method acts as
the main source of errors in accounting analysis for past statistics can play poor predictors for
future prospects.
Comparative performance
The accounting analysis is also done through comparison between similar business companies.
The Berger Paints Jamaica Limited engages in methods to analyse the performance of the
business to make necessary adjustments to increase sales and profits. The company may use
ratios to see the profitability and losses of the business to compare performances of years to see
how the business is performing. The Berger Paints has made financial statements available for
the past years and current years to show the past and current performances.
Data Collection
In order to carry ou this Internal Assessment (IA), two methods of data collection were used.
The researcher used Primary and Secondary sources to obtain data for this project. These
methods were used as it was most suitable since the IA is focusing on the company’s
performance using the financial statements, it is reliable and quicker to retrieve in gathering the
necessary information needed. The primary source used was a Questionnaire, the questionnaire
was comprised of both open and closed ended questions. Open ended questions were used
because they have no limits or responses to them and acquire more information. Closed ended
Questions were used because they are easy to answer and it saves time
The secondary sources were retrieved from textbooks and accounting websites which included
information needed. The websites provided all the relevant information needed for example all
the financial statements and textbooks provided me with more knowledge giving me a better
understanding of what to do by using examples. It can be said that the information retrieved is
There were many challenges faced by the researcher while carrying out this research. The
researcher faced challenges getting back questionnaires as they were not finished due to workers
being busy. The books that were used were borrowed so the researcher had to spend long hours
trying to get the necessary information needed so they could be given back. Some of the books
were faulty as some were old and some had insufficient information. The website of the
company was down at one point and also to find and write the information off the website was
time consuming
Data Presentation and Analysis
Financial Ratios
Current Ratio
Year
= 2:99:1
=2.32:1
Quick Ratio =
Quick Ratio measures the ability of a company to meet its short term obligations with its most
liquid assets
Year
The average length of time it takes a firm to collect and credit sales (in percentage terms)
Year
2017
2016
The total margin available to cover the operating expenses and yield a profit
Year
2017
2016
Year
Year
2017 315,555/2,363,088
Berger Paints Jamaican Limited is a very profitable company. Over the period of the two years
there was a drastic increasing in the profitability of the company. The company has owned more
assets and has manufactured more with less expenses making more inventory to be sold at a
higher cost causing sales to increase and while selling more it has increased the debtors, cash
and also the bank but are still maintaining to have the same amount of liabilities which is very
excellent. The company does not owe a lot of money and does not have to pay a lot of taxes
which means the company can finance it day to day operations. The company has be involved in
more transactions so the business has gotten more comprehensive income and other incomes
Based on the research done and the finding, the researcher would recommend the Berger Paints
1. Employ more workers and increase production so more of the products can be sold since the
company is very profitable and lot of buildings are being built and will need to be painted.
2. Continue to maintain the liabilities and not owe a lot or even try or lower the liabilities and
The Berger Paints Jamaica Limited is doing very and is a very profitable business and which