Anheuser-Busch InBev (AB-InBev) SA/NV and SABMiller plc are two of the world's largest brewers. Below are selected financial data for AB-InBev and SABMiller (both in USD millions) for a recent year.

Instructions
(a) Calculate the gross profit margin for each company. The industry average is 53.6%. Discuss their relative profitability and ability to control their cost of goods sold compared with each other, and with their industry.
(b) Calculate the profit margin for each company. The industry average is 10.8%. Discuss their relative profitability and ability to control their operating expenses compared with each other, and with their industry.
(c) Calculate the current ratio and the debt to total assets ratio for each company. The industry averages are 1.0:1 and 51.5%, respectively. Discuss their relative liquidity and solvency compared with each other, and with their industry.
(d) AB-InBev is headquartered in Belgium. SABMiller is headquartered in London, England. Why do you think that both companies, reporting in accordance with IFRS, are using U.S. dollars as their reporting currency?

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Sales Cost of goods sold Profit Current assets Total assets Current liabilities Total liabilities AB-InBevSABMiller $18,020 4,565 2,081 3,895 37,504 5,977 16,905 $36,758 17,198 5,877 10,853 112,525 14,254 79,354