This website uses cookies to ensure you have the best experience. Learn more

Ratio Analysis Nestle

1052 words - 5 pages

| 2015 |
| |

FIN6120
BUILDING FINANCIAL RELATIONSHIP

[aNALYSIS OF NESTLÉ’S RATIOS] |
|
|
|
Submit for: Mark Paronich Submit by: Tam Nguyen – 001794465 |
|

COMPANY OVERVIEW:
Nestlé is the world’s leading multinational company in food and beverage manufacture, with headquarters in Switzerland. Nestlé has a wide range of products such as baby foods and cereals, milked-base products, snack food and health related products. Since it was founded in 1866, Nestlé has been growing and operating through six segments: Zone Europe; ...view middle of the document...

The calculation of: Current ratio = Current assets/Current Liabilities
Quick ratio = (Current assets –Inventories)/Current Liabilities
| NESTLÉ | UNILEVER NV |
| 2014 | 2013 | 2014 | 2013 |
Current Ratio | =33,961/32,895 | =30,006/32,917 | =12,347/19,642 | =12,122/17,382 |
| =1,032 | =0,913 | =0,629 | =0,697 |
Quick Ratio | =(33,961-9,172)/32,985 | =(30,006-8,382)/32,917 | =(12,347-2,151)/19,642 | =(12,122-2,285)/17,382 |
| =0,754 | 0,659 | =0,519 | =0,566 |
* Current Ratio:
From the gained results, I have seen that on 2013 and 2014 had a slight better in Nestlé current ratio. In 2013, it was 0.913 and rose in 2014 to 1,032. This was explained as their liabilities were low and current assets increased from 30,006 to 33,961. It was a properly solidarity.
By contrast, in 2013 Unilever NV current ratio was 0,697 and it dropped dipper in 2014 to 0,629. This was because their liabilities were higher than Nestlé ones at the same period, which was from 17,382 to 19,642.
* The short term financial health of Nestlé is better than Unilever NV because the capital is easily available, which reduces the risk of borrowing. So, investors pay more attention on Nestlé.
* Quick Ratio:
Similar to the current ratio, except it only uses cash, accounts receivable and stocks/bonds, excludes inventory. So, the business “can’t count its inventory or prepaid expenses” that can be easily sold (Investopedia 2015). In 2014, Unilever has the quick ratio of 0,519 whereas Nestlé has 0,754 chances of paying off its short term obligations without relying on the level or sales of inventories. This displays Nestlé can provides the greatest sense of financial stability.
2. Profitability Ratios:
Profitability ratios consist of various categories, and are used to determine how profitable a firm is. Among those, Gross Profit Margin shows the companies’ revenue that remains after the cost of goods is deducted.
The calculation of: Gross Profit Margin = (Sales - Costs of Goods sold)/Sales
NESTLÉ | 2014 | 2013 |
Gross Profit Margin | = (91,612 - 47,553)/91,612 | = (92,158 – 48,111)/92,158 |
| = 1,519 (a) | = 1,522 (b) |
From the results above, from 2013 to 2014, it dropped to 0,003, meaning that Nestlé has been getting less money for every pound generated in sales; they have 0,003 left over for every pound from revenues after accounting for the cost of goods sold. The cause of...

Other assignments on Ratio Analysis Nestle

Hospitals Paper

6014 words - 25 pages I hope to provide in this paper a comprehensive understanding for what the term “hospital” has become. Hospitals are an extremely complex system that man has created and shaped and reshaped throughout history. My goal in writing and researching this paper will be to provide those who read it a clear understanding on how the hospital system got to where it is today, and to shed some light on the many organizations that affiliate with and

Course Syllabus Essay

2610 words - 11 pages [pic] COURSE SYLLABUS Semester: Fall, Year: 2012  College Mission Statement Richard J. Daley College provides high-quality education which leads to academic success, career development, and personal enrichment that fulfill diverse community needs. Mathematics Department Mission Statement Our mission is to deliver excellent service and to provide learning opportunities by offering a wide range of mathematics courses, which will help our

Management

1477 words - 6 pages Boeing Management Planning Heather Oetzel MGT 330 October 22, 2012 Joe Cheng Abstract Boeing is known as “the world’s leading aerospace company and the largest manufacturer of commercial jetliner and military aircraft combined ("The Boeing Company: About Us", 2012). Every company uses different types of management techniques including how the planning function of management is used. Planning allows organizations to develop how the

Assisted Suicide

1015 words - 5 pages Should physician-assisted suicide be legal? While I believe if one chooses to end his or own life through physician assistance for reasons that they chose, the choice should be up to the individual. Physician-assisted suicide should be at one's discretion. “Assisted Suicide, also called Voluntary Euthanasia, is currently a contentious issue in many countries. Because Euthanasia is legal in a few modern democracies: the Netherlands, Belgium

Tanglewood Case 1

797 words - 4 pages Tanglewood’s staffing strategy requires the organization to make key decisions about the acquisition, deployment, and retention of the organization’s workforce. In order to accomplish this, Tanglewood’s must make thirteen decisions regarding its staffing levels and its staffing quality. One of the first decisions that Tanglewood needs to choose is to acquire or develop talent. Tanglewood should try to develop their current talent because one

Nnnnn

1391 words - 6 pages Есе по въпроса: Кои от всички „действащи” лица могат да се разглеждат като морално отговорни и в какво именно? по казуса Форд „Пинто” Корпоративните злодеяния са нанесли повече вреди на обществото от всички улични престъпления взети заедно. Според данни на ФБР сумата от уличните престъпления възлиза на $3.8 млрд. годишно, а загубите от корпоративните измами между $100 млрд. и $400 млрд. годишно

The Penis

1052 words - 5 pages The short story ”The Penis” is written by Hanif Kureishi. The short story is about a penis, which has been separated from its owner Doug, who we hear from later on. At first though we hear about a guy called Alfie who was “a cutter – a hairdresser – and had to get to work”. He is having breakfast with his wife, when she asks him what he did last night, and if he had a good time last night? Alfie can not remember what he did last night, he then

Managed Care Paper

543 words - 3 pages Managed Care and Case Management Care Marvin Lloyd BSHS/402-Case Management 27 August 2012 Virgil Miller Managed Care are techniques employed to help reduce the cost for providing health benefits and a system for improving organizations quality of care

Media

439 words - 2 pages The life expectancy is lower; so people are not kept alive with drugs for decades in a virtual sleep state. There is less state education; so kids don't have it drilled into them that their only goal in life is to make money, at the cost of 'everything' else. The health care is less; so diseases, usually brought by Westerners, kill many more than they do in countries where drug companies can make a fortune from selling medicines that aren't

Chapter 6 International Business

7113 words - 29 pages CGGGG The Political Economy of International Trade Chapter Outline OPENING CASE: Why Are Global Food Prices Soaring? INTRODUCTION INSTRUMENTS OF TRADE POLICY Tariffs Subsides Country Focus: Subsidized Wheat Production in Japan Import Quotas and Voluntary Export Restraints Local Content Requirements Administrative Polices Antidumping Policies Management Focus: U.S. Magnesium

Scope And Goals

279 words - 2 pages new way to redeem products by accumulating loyalty points. Statement of Scope and Goals: The functions for the project development of the Frequent Shopper Program include tracking the customer’s purchase behavior, in which the customer’s interest and product purchases are analyzed. This type of marketing research will provide all the stores an analysis with the insights of what the customers like to buy, their favorite brands, and

Similar Documents

Business Strategy Essay

7849 words - 32 pages the stated mission of the business. A typical business strategy is developed in three steps: analysis, integration and implementation. The report will explain the strategic contexts and terminology – missions, visions, objectives, goals, and core competencies of Nestle and review the issues involved in strategic planning by using different planning techniques (BCG matrix, Space matrix, and GE matrix) in order to formulate a new strategy for

Mgt216 Essay

714 words - 3 pages The first ethical issue presented in the ethics game simulation was whether to warn consumers about the contaminated product and what information to provide consumers about the contaminant. The second ethical issue was whether to sell a product that does not meet U.S. safety requirements in a foreign market that has lower safety restrictions. G-BioSport was not required to meet prior approval from the Federal Drug Administration before they

Economy Effect Of Marijuana Essay

277 words - 2 pages Modern American History by Alan Renga 2nd Mid Term! You will be given 3 Short Essay questions and 20 Multiple Choice questions deriving from this list! 80 points total! The 1920s Warren Harding then Calvin Coolidge Tea Pot Dome 1st Red Scare Immigration Restriction, Sacco and Vanzetti Langston Hughes, Marcus Garvey, KKK Prosperity, advertising Prohibition, Al Capone Flappers, Clara Bow, Rudolph Valentino Babe Ruth, Jack Dempsey

The Vc Shakeout Essay

2033 words - 9 pages ECONOMY 26 Luring a big firm to town is not the secret to job growth DEFEND YOUR RESEARCH 30 Are morning people wired for success? VISION STATEMENT 32 The social web’s east-west divide COLUMN 38 Warren Bennis looks back on his surprising path to fame New Thinking, Research in Progress hbr.org New Thinking, Research in Progress hbr.org FIRST The VC Shakeout Venture capital hasn’t worked for a decade and must be radically