Nestle and Engro Foods are analyzed in the document. Nestle has been operating in Pakistan since 1988 and has a wide range of food products. It aims to be the leading nutrition, health and wellness company in Pakistan. Engro Foods also offers various food products and was the first company to use bactofuge technology. Through financial analysis, it is found that while Nestle has been in business longer, Engro has grown efficiently and increased its share price significantly despite being newer. The document examines the companies' financial statements and ratios to compare their financial performance and positions.
- The document analyzes the ratio analysis of Amara Raja Batteries Limited over 5 years from 2009-2014.
- Key ratios like current ratio, quick ratio, total debt ratio, and debt-equity ratio are calculated from the company's annual reports.
- Current ratios were above 2:1 standard except in 2011-2012. Debt ratios increased over time, showing a rising dependence on debt financing rather than equity.
We have picked up HUL balance sheets of years from ACE-Equity and applied some ratio analysis to analyze the trend and predict next year results of the company.
A REPORT ON FINANCIAL ANALYSIS OF DABUR AND BRITANNIAM Diable
This document provides a final project report on the financial analysis of Dabur and Britannia. It includes an introduction, literature review on ratio analysis and financial ratios, company profiles of Dabur and Britannia, research methodology, analysis and interpretation of financial ratios, and recommendations and conclusions. The analysis examines the liquidity, activity, leverage and profitability ratios of both companies over three years to evaluate their financial performance and position. Key findings and suggestions for improvement are also provided.
A project report on financial statement analysisProjects Kart
The document discusses AU Financiers (India) Private Limited, a non-banking finance company registered with the Reserve Bank of India. It provides an overview of the company's history, operations, products and services, financial performance, targets, and departments. Key information includes growth in customers, assets, and net worth over time as well as details on vehicle financing, small business loans, and insurance products offered.
1. The document discusses ratio analysis and financial analysis. Ratio analysis is a tool that evaluates the financial position and performance of a firm by establishing relationships between financial statement items.
2. Financial analysis identifies the financial strengths and weaknesses of a firm. It is done by analyzing ratios calculated from a firm's balance sheet and income statement. Key ratios include liquidity ratios, profitability ratios, and leverage ratios.
3. Ratio analysis involves comparing a firm's ratios to standards like its own past ratios, competitor ratios, industry averages, and projected ratios. This allows users to evaluate the firm's financial stability, profitability, and efficiency over time.
REPORT ON SUMMER TRAINING A FINANCIAL STATEMENT ANALYSIS AND INTERPRETATION...priya bansal
REPORT ON SUMMER TRAINING
A FINANCIAL STATEMENT ANALYSIS AND INTERPRETATION OF B.K. TRADING CO.
I HELP'S U HOW TO PREPARE INTERNSHIP TRAINING REPORT ON A FINANCIAL STATEMENT ANALYSIS AND INTERPRETATION
Financial statement analysis of Britania Industries limited using Ratio AnlysisUdayKiranSahu
Britania Industries Limited Financial Statement Analysis with the help of Ratio Analysis.
Calculated Turnover Ratio, Activity Ratio, Profitability Ratio
- The document analyzes the ratio analysis of Amara Raja Batteries Limited over 5 years from 2009-2014.
- Key ratios like current ratio, quick ratio, total debt ratio, and debt-equity ratio are calculated from the company's annual reports.
- Current ratios were above 2:1 standard except in 2011-2012. Debt ratios increased over time, showing a rising dependence on debt financing rather than equity.
We have picked up HUL balance sheets of years from ACE-Equity and applied some ratio analysis to analyze the trend and predict next year results of the company.
A REPORT ON FINANCIAL ANALYSIS OF DABUR AND BRITANNIAM Diable
This document provides a final project report on the financial analysis of Dabur and Britannia. It includes an introduction, literature review on ratio analysis and financial ratios, company profiles of Dabur and Britannia, research methodology, analysis and interpretation of financial ratios, and recommendations and conclusions. The analysis examines the liquidity, activity, leverage and profitability ratios of both companies over three years to evaluate their financial performance and position. Key findings and suggestions for improvement are also provided.
A project report on financial statement analysisProjects Kart
The document discusses AU Financiers (India) Private Limited, a non-banking finance company registered with the Reserve Bank of India. It provides an overview of the company's history, operations, products and services, financial performance, targets, and departments. Key information includes growth in customers, assets, and net worth over time as well as details on vehicle financing, small business loans, and insurance products offered.
1. The document discusses ratio analysis and financial analysis. Ratio analysis is a tool that evaluates the financial position and performance of a firm by establishing relationships between financial statement items.
2. Financial analysis identifies the financial strengths and weaknesses of a firm. It is done by analyzing ratios calculated from a firm's balance sheet and income statement. Key ratios include liquidity ratios, profitability ratios, and leverage ratios.
3. Ratio analysis involves comparing a firm's ratios to standards like its own past ratios, competitor ratios, industry averages, and projected ratios. This allows users to evaluate the firm's financial stability, profitability, and efficiency over time.
REPORT ON SUMMER TRAINING A FINANCIAL STATEMENT ANALYSIS AND INTERPRETATION...priya bansal
REPORT ON SUMMER TRAINING
A FINANCIAL STATEMENT ANALYSIS AND INTERPRETATION OF B.K. TRADING CO.
I HELP'S U HOW TO PREPARE INTERNSHIP TRAINING REPORT ON A FINANCIAL STATEMENT ANALYSIS AND INTERPRETATION
Financial statement analysis of Britania Industries limited using Ratio AnlysisUdayKiranSahu
Britania Industries Limited Financial Statement Analysis with the help of Ratio Analysis.
Calculated Turnover Ratio, Activity Ratio, Profitability Ratio
Financial Statment Analysis of TATA MOTORSHussain bohra
Tata Motors is a leading Indian automaker and part of the Tata Group, one of India's largest business conglomerates. Founded in 1945, Tata Motors is India's largest automobile company, with a 70% market share in commercial vehicles. It has manufacturing facilities in India as well as operations in the UK, South Korea, Thailand, and Spain, and owns the Jaguar Land Rover luxury brands.
1. The document is a student's project report on the financial ratio analysis of Wipro. It includes an acknowledgment section thanking various professors and institutions for their support and guidance.
2. There is a declaration by the student stating that the project is their original work and submitted for their Master's degree program.
3. The project contains a certificate from the student's teacher guide confirming they completed the research project on the given topic under their guidance.
The document provides information about Axis Bank's products and services. It describes various retail banking facilities like ATMs, internet banking, loans, and cash management services. The cash management services help corporate customers in managing receivables through collection solutions and payments through options like bulk payments. It also discusses managing resources through liquidity management and managing taxes using CBDT and CBEC collection services.
FINANCIAL ANALYSIS OF RELIANCE JIO PDF.pdfVismayTyagi
The document provides an overview of financial analysis and ratio analysis. It discusses the need to analyze financial statements to better understand a company's financial position and performance. It classifies ratios into traditional categories such as liquidity, activity, profitability, and debt. Common financial analysis tools include ratio analysis, funds flow analysis, and cash flow analysis. Ratio analysis involves calculating and comparing financial metrics over time, against industry benchmarks, and between companies to evaluate performance. The summary discusses the purpose and importance of financial analysis and ratio analysis for decision making.
Project report on Financial Statement Analysis and interpretation of A CompanyPinkey Rana
This document provides a project report on the financial statement analysis and interpretation of C.B Enterprises conducted as a summer training. It includes an introduction to the company S.D Gupta & Company, the objectives of analyzing and interpreting financial statements, and an overview of the key components of financial statements including the balance sheet, income statement, and financial ratios. The report then presents an analysis of the financial statements and ratios of C.B Enterprises for 2014-2015, including comparisons between the two years. It finds that while the company's liquidity position is good, many of its ratios related to profitability, expenses, and returns are below industry standards. The report concludes with recommendations for improving the company's performance.
This document appears to be a project report submitted for a Master's degree in Business Administration. It includes an introduction to ratio analysis, definitions of key terms, and outlines various types of ratios that will be analyzed in the report such as liquidity, activity, profitability, and leverage ratios. The objectives of the study are to analyze the financial position and performance of the company through ratio analysis and suggest measures to improve performance.
This document provides information about the Chittoor Co-operative Sugars Ltd located in Chittoor, Andhra Pradesh. It was established in 1955 to help sugarcane farmers in the region process their harvest and get fair prices. The company owns 85.96 acres and has gradually expanded its cane crushing capacity over the years. It is currently able to crush 1800-2000 tons of cane per day. The original capital came from shareholder contributions and loans. Financial statements and ratio analysis will be used to analyze the company's performance and financial position from 2003-2007.
This document analyzes the financial performance of Radico Khaitan Ltd over several years using ratio analysis. It begins with an introduction and outlines the company profile. The analysis then calculates and compares various liquidity, profitability, and turnover ratios from 2016-2020. Key findings include the company's satisfactory but improving liquidity and profitability positions. The document concludes with recommendations to maintain profits and control costs, while acknowledging limitations of only considering monetary financial data.
This document provides an introduction and theoretical background for a final project report analyzing the financial performance of Town Benefit Fund (Kumbakonam) Ltd. It discusses ratio analysis as a technique for analyzing financial statements and identifies various liquidity, profitability, and solvency ratios that will be calculated and interpreted in the analysis. The objectives, scope, methodology, and chapter outline of the full report are also presented.
Project Report on Financial Analysis by Nirbhay Kumar, MBA - 3rd Sem.,TMBU,B...Nirbhay Kumar
The document appears to be a summer internship report submitted by a student named Nirbhay Kumar to the National Thermal Power Corporation (NTPC) in India analyzing the financial performance of NTPC from 2012-2016. The report includes an executive summary of the financial analysis, ratios calculated, findings, and recommendations to improve NTPC's profitability and financial position based on the financial statements over the period studied.
This document is a project report submitted for a B.COM HONOURS degree. It discusses ratio analysis of an unnamed company. The 39 page report includes an introduction outlining the background and objectives of the ratio analysis. It also includes chapters on the conceptual framework of ratio analysis, an analysis and findings section, and conclusions and suggestions. The document was submitted in March 2014 and supervised by Professor Amar Krishna Roy at Heramba Chandra College.
A Study on Financial Performance of Infosys Ltd using Ratio Analysiskulbirsingh100
This paper is regarding analysis of financial performance of Infosys Limited.Financial
Statements are those statements which deliver information about profitability, efficiency,
performance and financial position of the concern. Financial statements analysis is a powerful
contrivance for a variety of users of financial statements. Different users have different
objectives in wisdom about the financial circumstances of the concern. Financial statements
deliver information to investors, debtors, creditors, stakeholder and public about the financial
position, financial condition, efficiency and performance of the business. It is study about
accounting ratios among various items included in balance sheet.
In this report you will be came to know about Tata Steel - when it was formed its future plans , its financial position based on the ratio analysis being done on the basis of their 3 years balance sheet and conclusion of the analysis
Summer Training Report on Financial Performance Analysis for MBAMegha Bansal
This document provides an overview of a summer training project report on the financial performance analysis of Surya Roshni Limited conducted over 45 days. It includes an acknowledgement, declaration, abstract, table of contents, and lists of tables and charts. The report analyzes the company's financial statements from 2013-2016 using various techniques like common size statements, ratio analysis, comparative statements, and cash flow analysis to evaluate the company's financial performance and position over time.
Ratio Analysis of Samsung Electronics Co. Ltd.Nikita Jangid
This document provides an overview of ratio analysis and its significance. It begins by defining ratio analysis as the process of determining and interpreting numerical relationships based on financial statements. Ratios are calculated by dividing two relevant figures and can be used to assess various aspects of organizational performance such as profitability, liquidity, efficiency, and financial stability. The document then discusses the objectives and types of ratios, how ratios should be calculated and interpreted, and compares ratios to historical standards, industry benchmarks, and budgets. It emphasizes that ratios must be carefully analyzed in context. Finally, the document outlines the significance of ratio analysis for various stakeholders like management, owners, creditors, employees and governments in evaluating financial health and making informed decisions.
This document provides information about a project report submitted by Srabani Dutta for their MBA degree. The 3-page document includes a title page, student and guide declarations, and table of contents. It outlines that the report is a study on ratio analysis of Eastern Coalfield Limited conducted under the supervision of faculty and industry guides. The document also acknowledges contributions and provides certifications from the examiner and guides.
Financial Statement Analysis With The Help of Ratios (Suyesh Metel Pressing p...Avinash Labade
If any have Need Project Report please call +919011888598 and I will provide only Word File.
and
Project Cost is Rs 500/- Per Project
Send Me Payment Phone Pay or Google Pay
The document provides background information on working capital management. It discusses how working capital is essential for companies to meet daily expenses but needs to be managed properly. It then introduces the Orissa Power Transmission Corporation Limited (OPTCL), one of India's largest power transmission organizations, as the focus of the study. The study will analyze OPTCL's working capital position and make recommendations. It outlines the objectives, hypotheses and limitations of the study. Finally, it provides an overview of OPTCL, including its vision, mission and operations across Orissa.
ANALYSIS OF FINANCIAL PERFORMANCE OF THOMAS COOK (INDIA) LTD. USING RATIO ANA...Anirban Chakraborty
ANALYSIS OF FINANCIAL PERFORMANCE OF THOMAS COOK (INDIA) LTD. USING RATIO ANALYSIS
This study gives in detail the analysis of various financial ratios based upon the past as well as
the present performance of Thomas Cook (India) Ltd. expressed in financial data. Based upon
the results from these financial ratios conclusions are driven out that whether the company has
been earning profits or not and also that how much it has used these results in its growth. So, the
company can also manage each of its current assets namely cash management, accounts
receivable management and also its liabilities like creditors, loans, bills payables etc. so that it
can maintain an identical financial ratio for each of its business aspects like solvency ratios,
turnover ratios, profitability ratios etc.
This particular project is based on ratio analysis of Coca-Cola International. I have analyzed two years financial performance of Coke i.e. from 2011 to 2012. I hope my this effort will help other interested students.
Pidilite Industries Limited has been a pioneer in consumer and specialties chemicals in India since 1959. It is the market leader in India for adhesives, sealants, construction chemicals, and other products. The company has an annual turnover of about $350 million and is focused on growing internationally through acquisitions and new facilities. Pidilite prioritizes strong customer relationships and innovation to drive its success.
Financial Statment Analysis of TATA MOTORSHussain bohra
Tata Motors is a leading Indian automaker and part of the Tata Group, one of India's largest business conglomerates. Founded in 1945, Tata Motors is India's largest automobile company, with a 70% market share in commercial vehicles. It has manufacturing facilities in India as well as operations in the UK, South Korea, Thailand, and Spain, and owns the Jaguar Land Rover luxury brands.
1. The document is a student's project report on the financial ratio analysis of Wipro. It includes an acknowledgment section thanking various professors and institutions for their support and guidance.
2. There is a declaration by the student stating that the project is their original work and submitted for their Master's degree program.
3. The project contains a certificate from the student's teacher guide confirming they completed the research project on the given topic under their guidance.
The document provides information about Axis Bank's products and services. It describes various retail banking facilities like ATMs, internet banking, loans, and cash management services. The cash management services help corporate customers in managing receivables through collection solutions and payments through options like bulk payments. It also discusses managing resources through liquidity management and managing taxes using CBDT and CBEC collection services.
FINANCIAL ANALYSIS OF RELIANCE JIO PDF.pdfVismayTyagi
The document provides an overview of financial analysis and ratio analysis. It discusses the need to analyze financial statements to better understand a company's financial position and performance. It classifies ratios into traditional categories such as liquidity, activity, profitability, and debt. Common financial analysis tools include ratio analysis, funds flow analysis, and cash flow analysis. Ratio analysis involves calculating and comparing financial metrics over time, against industry benchmarks, and between companies to evaluate performance. The summary discusses the purpose and importance of financial analysis and ratio analysis for decision making.
Project report on Financial Statement Analysis and interpretation of A CompanyPinkey Rana
This document provides a project report on the financial statement analysis and interpretation of C.B Enterprises conducted as a summer training. It includes an introduction to the company S.D Gupta & Company, the objectives of analyzing and interpreting financial statements, and an overview of the key components of financial statements including the balance sheet, income statement, and financial ratios. The report then presents an analysis of the financial statements and ratios of C.B Enterprises for 2014-2015, including comparisons between the two years. It finds that while the company's liquidity position is good, many of its ratios related to profitability, expenses, and returns are below industry standards. The report concludes with recommendations for improving the company's performance.
This document appears to be a project report submitted for a Master's degree in Business Administration. It includes an introduction to ratio analysis, definitions of key terms, and outlines various types of ratios that will be analyzed in the report such as liquidity, activity, profitability, and leverage ratios. The objectives of the study are to analyze the financial position and performance of the company through ratio analysis and suggest measures to improve performance.
This document provides information about the Chittoor Co-operative Sugars Ltd located in Chittoor, Andhra Pradesh. It was established in 1955 to help sugarcane farmers in the region process their harvest and get fair prices. The company owns 85.96 acres and has gradually expanded its cane crushing capacity over the years. It is currently able to crush 1800-2000 tons of cane per day. The original capital came from shareholder contributions and loans. Financial statements and ratio analysis will be used to analyze the company's performance and financial position from 2003-2007.
This document analyzes the financial performance of Radico Khaitan Ltd over several years using ratio analysis. It begins with an introduction and outlines the company profile. The analysis then calculates and compares various liquidity, profitability, and turnover ratios from 2016-2020. Key findings include the company's satisfactory but improving liquidity and profitability positions. The document concludes with recommendations to maintain profits and control costs, while acknowledging limitations of only considering monetary financial data.
This document provides an introduction and theoretical background for a final project report analyzing the financial performance of Town Benefit Fund (Kumbakonam) Ltd. It discusses ratio analysis as a technique for analyzing financial statements and identifies various liquidity, profitability, and solvency ratios that will be calculated and interpreted in the analysis. The objectives, scope, methodology, and chapter outline of the full report are also presented.
Project Report on Financial Analysis by Nirbhay Kumar, MBA - 3rd Sem.,TMBU,B...Nirbhay Kumar
The document appears to be a summer internship report submitted by a student named Nirbhay Kumar to the National Thermal Power Corporation (NTPC) in India analyzing the financial performance of NTPC from 2012-2016. The report includes an executive summary of the financial analysis, ratios calculated, findings, and recommendations to improve NTPC's profitability and financial position based on the financial statements over the period studied.
This document is a project report submitted for a B.COM HONOURS degree. It discusses ratio analysis of an unnamed company. The 39 page report includes an introduction outlining the background and objectives of the ratio analysis. It also includes chapters on the conceptual framework of ratio analysis, an analysis and findings section, and conclusions and suggestions. The document was submitted in March 2014 and supervised by Professor Amar Krishna Roy at Heramba Chandra College.
A Study on Financial Performance of Infosys Ltd using Ratio Analysiskulbirsingh100
This paper is regarding analysis of financial performance of Infosys Limited.Financial
Statements are those statements which deliver information about profitability, efficiency,
performance and financial position of the concern. Financial statements analysis is a powerful
contrivance for a variety of users of financial statements. Different users have different
objectives in wisdom about the financial circumstances of the concern. Financial statements
deliver information to investors, debtors, creditors, stakeholder and public about the financial
position, financial condition, efficiency and performance of the business. It is study about
accounting ratios among various items included in balance sheet.
In this report you will be came to know about Tata Steel - when it was formed its future plans , its financial position based on the ratio analysis being done on the basis of their 3 years balance sheet and conclusion of the analysis
Summer Training Report on Financial Performance Analysis for MBAMegha Bansal
This document provides an overview of a summer training project report on the financial performance analysis of Surya Roshni Limited conducted over 45 days. It includes an acknowledgement, declaration, abstract, table of contents, and lists of tables and charts. The report analyzes the company's financial statements from 2013-2016 using various techniques like common size statements, ratio analysis, comparative statements, and cash flow analysis to evaluate the company's financial performance and position over time.
Ratio Analysis of Samsung Electronics Co. Ltd.Nikita Jangid
This document provides an overview of ratio analysis and its significance. It begins by defining ratio analysis as the process of determining and interpreting numerical relationships based on financial statements. Ratios are calculated by dividing two relevant figures and can be used to assess various aspects of organizational performance such as profitability, liquidity, efficiency, and financial stability. The document then discusses the objectives and types of ratios, how ratios should be calculated and interpreted, and compares ratios to historical standards, industry benchmarks, and budgets. It emphasizes that ratios must be carefully analyzed in context. Finally, the document outlines the significance of ratio analysis for various stakeholders like management, owners, creditors, employees and governments in evaluating financial health and making informed decisions.
This document provides information about a project report submitted by Srabani Dutta for their MBA degree. The 3-page document includes a title page, student and guide declarations, and table of contents. It outlines that the report is a study on ratio analysis of Eastern Coalfield Limited conducted under the supervision of faculty and industry guides. The document also acknowledges contributions and provides certifications from the examiner and guides.
Financial Statement Analysis With The Help of Ratios (Suyesh Metel Pressing p...Avinash Labade
If any have Need Project Report please call +919011888598 and I will provide only Word File.
and
Project Cost is Rs 500/- Per Project
Send Me Payment Phone Pay or Google Pay
The document provides background information on working capital management. It discusses how working capital is essential for companies to meet daily expenses but needs to be managed properly. It then introduces the Orissa Power Transmission Corporation Limited (OPTCL), one of India's largest power transmission organizations, as the focus of the study. The study will analyze OPTCL's working capital position and make recommendations. It outlines the objectives, hypotheses and limitations of the study. Finally, it provides an overview of OPTCL, including its vision, mission and operations across Orissa.
ANALYSIS OF FINANCIAL PERFORMANCE OF THOMAS COOK (INDIA) LTD. USING RATIO ANA...Anirban Chakraborty
ANALYSIS OF FINANCIAL PERFORMANCE OF THOMAS COOK (INDIA) LTD. USING RATIO ANALYSIS
This study gives in detail the analysis of various financial ratios based upon the past as well as
the present performance of Thomas Cook (India) Ltd. expressed in financial data. Based upon
the results from these financial ratios conclusions are driven out that whether the company has
been earning profits or not and also that how much it has used these results in its growth. So, the
company can also manage each of its current assets namely cash management, accounts
receivable management and also its liabilities like creditors, loans, bills payables etc. so that it
can maintain an identical financial ratio for each of its business aspects like solvency ratios,
turnover ratios, profitability ratios etc.
This particular project is based on ratio analysis of Coca-Cola International. I have analyzed two years financial performance of Coke i.e. from 2011 to 2012. I hope my this effort will help other interested students.
Pidilite Industries Limited has been a pioneer in consumer and specialties chemicals in India since 1959. It is the market leader in India for adhesives, sealants, construction chemicals, and other products. The company has an annual turnover of about $350 million and is focused on growing internationally through acquisitions and new facilities. Pidilite prioritizes strong customer relationships and innovation to drive its success.
The document discusses various types of ratios used in ratio analysis for evaluating the financial performance and position of a business. It provides definitions and interpretations for liquidity ratios like current ratio and quick ratio, solvency ratios like debt-equity ratio and proprietary ratio, activity ratios like stock turnover ratio and debtor turnover ratio, and profitability ratios like gross profit ratio, net profit ratio, and return on capital employed. Formulas and ideal ratios are given for each type of financial ratio.
A project report on analysis of financial statement of icici bankProjects Kart
This document discusses a minor project report on the analysis of the financial statements of ICICI Bank. It provides background information on ICICI Bank, including its history, board of directors, organizational structure, products and services. It then outlines the objectives and contents of the financial statement analysis project, which includes studying ICICI Bank's profit and loss account, balance sheet, and cash flow statement as well as conducting ratio analysis and evaluating the bank's financial soundness.
Nestle Pakistan Ltd is a subsidiary of Swiss company Nestle S.A., operating in Pakistan since 1988. The document analyzes Nestle's financial statements over 2007-2011 to evaluate its earnings potential and financial condition for a long-term equity investment. Ratio, trend, and common size analyses show generally good profitability, efficiency, and growth, though some liquidity and leverage risks exist. Overall, the author recommends investing in Nestle due to its leading market position and expected continued strong performance.
The document discusses the life insurance sector in India, noting that it is one of the two largest markets for life insurance products growing at 15% annually due to factors like a large insurable population, high savings rate of 25%, and low insurance penetration of 2.3%. It also briefly compares India's life insurance market to China's, noting both have low insurance penetration rates while China has a higher savings rate of 35%.
Download Accountancy Project of Class 12th Strictly according to the latest rules and regulations of CBSE for free (including Comprehensive Problem,Specific Problem on Ratios,Specific Problem on cash Flow Statement)
Financial statement analysis involves analyzing a company's financial statements to assess its performance and financial position. It is used to evaluate factors like profitability, solvency, liquidity, and efficiency. Key tools for financial statement analysis include financial ratios, common size analysis, trend analysis, and comparisons to industry standards and past performance. The purpose is to provide useful information to decision makers about a company's historical performance, current condition, and future prospects.
A financial analysis for Coca-Cola:
company profile, financial statement, liquidity ratio, current ratio, cash ratio, quick ratio, profitability, efficiency, short term activity, long term activity, solvency, DuPont analysis and historical enterprise value (HEV).
Done By Elie Obeid and Isabelle Khalil
This document is a project report on ratio analysis for Genting Lanco Power Ltd from 2012. It includes an introduction to the power industry and electricity sector in India. There has been significant growth in installed power capacity since independence but demand still outstrips supply. The document discusses various power sources including hydropower, mini hydel plants, and thermal power which is now the largest source but progress has been slowed. It aims to analyze Genting Lanco's financial ratios to evaluate performance.
The document provides an overview of Sharp, Toshiba, and Sony's histories, products, and financial ratios. Sharp was founded in 1912 and has expanded from pencil manufacturing into electronics. It created Japan's first TV and calculator. Toshiba was formed through mergers and focuses on infrastructure and consumer products. Sony is a large media conglomerate and manufacturer of electronics and entertainment products. All three companies face challenges like price competition and declining profits. Their financial ratios show varying levels of profitability, debt, and liquidity.
The document discusses various analytical techniques used to analyze financial reports and ratios, including ratio analysis, vertical analysis, horizontal analysis, and trend analysis. It then provides examples of key financial ratios used to evaluate the profitability, financial stability, and effectiveness of management for a business. These include ratios like gross profit ratio, net profit ratio, current ratio, quick ratio, equity ratio, and debt ratio. Recommendations are provided for improving areas of weakness identified by the ratios.
This document provides an overview of Nestle Pakistan Limited, including its mission, products, departments, and financial analysis. It discusses Nestle's collection of milk from farmers and production of dairy, beverage, and infant nutrition products across Pakistan. The company aims to provide consumers with nutritious choices through its mission of "Good Food, Good Life." Key departments discussed include human resources, finance, marketing, and sales.
This document discusses manufacturing accounting concepts including types of inventory, production costs, prime costs, overhead costs, and key financial statements. It defines raw materials, work in progress, and finished goods inventory. Direct costs include direct materials, direct labor, and direct expenses. Indirect costs are grouped as overhead. The manufacturing account calculates production cost and transfers goods to finished goods inventory. The income statement and balance sheet are also discussed.
The document analyzes various financial ratios of Tata Motors over several years from 2004-2008. It shows that the gross profit ratio, net profit ratio, and return on networth have generally decreased from 2004 to 2008. However, the debt-equity ratio and operating ratio have increased in this period. The document also provides details on the company's profit and loss account and balance sheet over these years.
The document provides information about Umer Khalid khokhar's final project for his class MCOM (A) submitted on 20.1.2012 to Sir sarwer. It includes an executive summary analyzing Nestle Pakistan's financial position and performance through ratio analysis. The auditor's reports from 2008-2012 for Nestle Pakistan were unqualified, indicating the financial statements were prepared according to accounting standards and accurately reflected the company's financial records. The project examines Nestle Pakistan's liquidity, assets utilization, capital structure, profitability, and market value ratios to evaluate the company's financial health and make recommendations.
The report identifies the current HR practices at John Keells in terms of recruitment and selection. More effective methods such as using mass media to advertise on available opportunities, a more suitable role specification document have been proposed to carry out the recruitment and selection processes smoothly. The training and development requirements at the organisation are identified next. Training programs and learning activities that are required to up build the career progression of the employees are recommended after a critical evaluation.
Staff motivation is an important component in the HR process. Hence the classical motivation theories are evaluated to reach a hybrid model which is more applicable to the culture at John Keells. The effective leadership skills that would generate staff motivation are highlighted in detail.
As the final section the possible change management challenges that would arise with the recommendations made for the HR practices at John Keells are identified with the methods to overcome them and carryout a successful change management process to restructure the HR practices at John Keells Group.
The document discusses several theories related to management and organizational behavior, including contingency theory, technology determinism, and stakeholder theory. Contingency theory claims there is no single best way to organize and that the optimal approach depends on internal and external factors. Technology determinism argues technologies directly impact organizational attributes like span of control. Stakeholder theory identifies six groups that influence organizations: technology, suppliers, customers, government, unions, and consumer groups.
- ITC Limited is a large Indian conglomerate company headquartered in Kolkata, employing over 26,000 people across various businesses.
- Between 1995-96 and 2012-13, ITC saw rapid growth and scale-up of its FMCG businesses, with net revenue increasing from Rs. 2,536 crores to Rs. 29,606 crores - a 17-year CAGR of 15.6%.
- ITC aims to make a significant contribution to India's financial, environmental, and social capital by creating multiple drivers of growth while sustaining leadership in tobacco and focusing on triple bottom line performance.
The document analyzes the Enron scandal and identifies key learnings. It discusses how Enron executives prioritized short-term financial gains over ethical behavior, harming stakeholders. Their actions revealed lapses in integrity that destroyed the company. Some key lessons from Enron are that companies should provide real value through goods/services, arrogance from executives should raise red flags, and executives paid too much can feel above rules and cut ethical corners to retain wealth. The scandal showed the need for updated regulations to govern new economy companies.
After all the findings, it is concluded that financial ratios are the basic and most important part of any business. It describes the firm’s financial position. As the data indicates that NESTLE is an international brand and has expanded its business on the large geographical area and also offers the large range of products, but on the other side ENGRO food offers the limited range of the products and most of them are dairy products.
From the financial statements it is clear that the financial position of the NESTLE is far better than ENGRO as it is more preferred by the customers and also an internationally distributed. It also has less risk. It gives more return because it gains more profit than ENGRO.On the other hand ENGRO deals with the limited products in a limited geographical area but on the basis of financial ratios ENGRO has a better financial position and also has an opportunity to expand its business. Both the companies have some opportunities and threads and they need to work on it.
If any have Need Project Report please call +919011888598 and i will provide only Word File.
and
Project Cost is Rs 500/- Per Project
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This marketing report provides an overview of Nestle Cerelac, a baby food product manufactured by Nestle. It discusses the company profile of Nestle, describing its founding, expansion, and vision/mission to be a leading nutrition, health and wellness company. The report provides a brief description of Cerelac, highlighting its nutritional benefits and varieties offered. It also includes an analysis of the baby food industry, Nestle's marketing objectives, and a SWOT analysis of Cerelac. Segmentation, targeting, positioning, and the marketing mix are discussed to outline Nestle's marketing strategy for the product.
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Financial ratios analysis project at Nestle and Engro Foods
1. BALOCHISTAN UNIVERSITY OF INFORMATION
TECHONOLOGY ENGINEERING AND MANAGEMENT
SCIENCES
Financial Ratios Analysis
Nestle VS Engro Foods
Rabia Iftikhar, 12285
MBA 4th
B
Dec 31, 2012
Ma'am Ayesha Javaid
2. ACKNOWLEDGEMENTS
Praise and thanks to “ALLAH” Almighty, the one testing us all at all times and making
decisions about what we don’t know and can’t know.
The report being submitted today is a result of collective effort. There are innumerous
helping hands behind who have guided us on our way. Writing this report appeared to be a
great experience to us. It added a lot to our knowledge. This report is one of our memorable
experiences in student life.
Though words are inadequate in offering thanks to our teacher but we owe our profound
gratitude to Ma’am Ayesha Javaid for stimulating our creative abilities by assigning this
project to us and for her able guidance and useful suggestions, which helped us in completing
the project in time. Whatever we have learnt from her and this project report has put indelible
impression on our minds and it is our conviction that this learning experience will always be
a source of help in our practical life and professional career.
Finally, yet importantly, we would like to express our heartfelt thanks to our beloved parents,
for cooperation, help, kindness and blessings, our family and friends for their help and wishes
for the successful completion of the work.
3. Table of Content
1.Executive summary…………………………………………………………... 1
2.Introduction ……………………………………………………….…………..2
3.NESTLE………………………………………………………….…………....3
3.1NESTLE Pakistan………………………………………………………..3
3.2Vision…………………………………………………………………….4
3.3Mission…………………………………………………………….……..4
3.4Goals and Objectives…………………………………………….…….…5
3.5SWOT……………………………………………………………..……...9
4.ENGRO FOODS……………………………………………………………..10
4.1Vision……………………………………………………………………10
4.2Mission…………………………………………………………….…….10
4.3Core values………………………………………………………………10
4.4SWOT……………………………………………………………………12
5.Financial Statements of NESTLE …...……………………………………....….. 14
5.1Balance Sheet……………………………………………………………14
5.2Income Statement……………………………………………………….16
6.Financial Statements of ENGRO…………………………….…………….……..17
6.1Balance sheet……………………………………………………………17
6.2Income Statement……………………………………………………….19
7.Data Table…………………………………………………………………….…..20
7.1 The calculations…………………………………………………….……21
8.Balance sheet Analysis …………………………………………………………....23
9. Income Statement Analysis ……………………………………………………….24
4. 10. Ratios of NESTLE………………………………………………………….….….24
11. Ratios of ENGRO………………………………………………………….….…..27
12.Financial Ratio Analysis……………………………......……………………….28
12.1Liquidity Analysis………………………………………………………28
12.2Profitability Analysis……………………………………………………28
12.3Activity Analysis………………………………………………………..29
12.4Capital Structure………………………………………………………...29
12.5 Capital Market Analysis Ratio …………………………………………29
13.Cash Budget of NESTLE…………………………………...……………………30
14.Cash Budget of ENGRO………………………………………………………….31
15.Conclusion………………………………………………………………………..32
16. Recommendations……………………………………………….…….…………33
17. References………………………………………………………….…….………34
5. 1. Executive Summary
The report which is based on the financial analysis of NESTLE and ENGRO FOODS. By
going through all the financial statements it is known that overall NESTLE is working so
well if compared to ENGRO FOODS. But by going through the financial ratio analysis the
facts were that ENGRO is much more competitive than NESTLE.
As ENGRO FOODS is not in the market as long as NESTLE is. This is analyzed through
financial analysis that ENGRO is working so efficiently and effectively and is coming up
with new features and advanced technology that others are not using.
In the report history of both companies, SWOT analysis, financial statements, financial
ratios, financial ratio analysis, cash budget and finally the report is concluded and
recommendations are given at the end.
6. 2. Introduction
This is the project about financial statement analysis of two companies of the same
industry. In this regard the companies which were chosen to be analyzed are NESTLÉ
PAKISTAN and ENGRO FOODS LIMITED. Both the companies are of food industry
and are dealing in food business for many years. The companies are well reputed in the
market and deal in a very wide range of food products.
As NESTLÉ, a very, well-known brand started its’ business life with only one product
and that was condensed milk for infants. And now it has captured everyone’s mind for its
tempting products; as chocolates, coffee, bottled water, powdered milk, flavored milk, tea
whitener and many more. The company has strong marketing strategies to come up with
in a competitive market. It has targeted all of its customers no matter they are of what
age. The company is standing in the market with share price of 4,844. How it standing in
the market with such price? How it satisfies its shareholder’s? Why don’t investor’s
invest in other companies?
The answer to all above question is clear after going through its financial reports. The
profit that the company earns and the balance it has kept between its assets and liabilities
is also easily understandable after going through its financial statements. The company is
running its business so well. And that is why it never loses its value.
ENGRO FOODS is also a very, well-reputed company which produces a wide range of
healthy food products. Is product line contains products such as milk, tea whitener,
cream, ice cream, juices, flavored milk and many others. ENGRO FOODS is the 1st
company which is using Bactofuge technology.
The company has not been in this business for as long as NESTLÉ is, but the way it has
grown up is appreciable. It has come up with innovative features in its products. Through
its financial statements it is analyzed that how efficiently it has increased its share price
from Rs. 17 to Rs. 25. It provides many incentives to it stockholder’s is also growing its
market share. The company has capability to pay it liabilities on time and to keep its
assets managed.
ENGRO FOODS not only provide incentives to its stockholder’s but also to its
employees. It offers its employees much outdoor training so that they can work in a
healthy environment and don’t get tired of their hectic routine. That is why it has many
loyal employees to work with.
7. 3. NESTLÉ
Good Food, Good Life
Nestlé, theCompany which is renowned for its vast collection of foodproducts. The
Companywas formed in 1905 by the merger of the Anglo-Swiss Milk Company, established
in 1866 by brothers George Page and Charles Page, and Farine Lactée.Nestlé was found in
1866 by Henri Nestlé. The company grew significantly during the First World War and again
following the Second World War, expanding its offerings beyond its early condensed milk
and infant formula products. The company has made a number of corporate acquisitions,
including Crosse & Blackwell in 1950, Findus in 1963, Libby's in 1971, Rowntree
Mackintosh in 1988 and Gerber in 2007.
As Nestlé started with a condensed milk and later it climbed so fast at the ladder of
success that it is now a leading brand in food products with so many sub-brands.Currently
Nestlé is dealing with bottled water, breakfast cereals, coffee, confectionery, dairy products,
ice cream, pet foods, other beverages, shelf stable, chilled, Ice cream, Infant nutrition,
performance nutrition, healthcare nutrition, frozen foods, refrigerated products, food services
and professional products and snacks.29 of Nestlé's brands have annual sales of over 1 billion
Swiss francs (about $ 1.1 billion). Nestlé has around 450 factories, operates in 86 countries,
and employs around 328,000 people. It is one of the main shareholders of L'Oréal, the world's
largest cosmetics company.
3.1 NESTLÉ in Pakistan
Nestlé has been serving Pakistani consumers since 1988, when parentcompany, the
Switzerland-based Nestlé SA, first acquired a share in Milk PakLtd. Today Nestlé is fully
integrated in Pakistani life, and is recognized asthe producer of safe, nutritious and tasty food,
and leaders in developing anduplifting the communities in which they operate.Nestlé Pakistan
ensures that their products are made available toconsumers wherever in the country they
might be. Convenience is at theheart of the Nestlé philosophy, and there aim is to bring
products to people'sdoorsteps.
The following project is about Nestlé Pakistan and the necessary details about Nestlé
Pakistan are as follow:
Ticker: NESTLÉ
Country: PAKISTAN
Exchanges: KAR
Major Industry: Food & Beverages
Sub Industry: Diversified Food
8. 2011 Sales: 64,824,364,000 (Year Ending Jan 2012)
Employees: 2,422
Currency: Pakistan Rupees
Market Capture: 210,875,565,600
Fiscal Year Ends: December
Shares Outstanding: 45,349,584
Share Type: Ordinary
Closely Held Shares: 35,545,078
3.2 Vision
“Nestlé’s global vision is to be the recognized leading Nutrition, Health and Wellness
Company. Nestlé Pakistan subscribes fully to this vision of being the number one Nutrition,
Health, and Wellness Company in Pakistan. In particular, we envision to;
Lead a dynamic, passionate and professional workforce – proud of our heritage and
positive about the future.
Meet the nutrition needs of consumers of all ages – from infancy to old age, from
nutrition to pleasure, through an innovative portfolio of branded food and beverage
products of the highest quality.
Deliver shareholder value through profitable long-term growth, while continuing to
play a significant and responsible role in the Social, Economic, and Environmental
sectors of Pakistan.”
3.3 Mission
“Nestlé is dedicated to providing the best foods to people throughout their day,
throughout their lives, throughout the world. With our uniqueexperience of anticipating
consumers’ needs and creating solutions, Nestlécontributes to your well-being and enhances
your quality of life.”
3.4 Goals and Objectives
The goals and objectives of Nestlé Pakistan are simple and well designed with the core
strategies to meet the demand of the consumers and to fulfill the needs of the customers.
Following are the main goals and;
1. To be, the best and quality providing brand among other brands in Pakistan.
9. 2. Tofulfillcustomers’needs and requirements.
3. To capture it’s desired market share.
4. To dwellinto the life of people and consumers.
5. To boost upits sales.
6. To create value for customer.
7. To keep the loyalty of customer with Nestlé.
8. To be the top nutrition company ofPakistan.
9. To be the leading FMCG company around the world as well as inPakistan.
10. It aims to be the socially responsible and helping company in bad times.
11. Nestlé aims to be proactive innovation and renovation culture, which is the key to
Nestlé’s success in the marketplace.
12. Nestlé aims to have fully integrated systems with suppliers & retailers so that every
single market can be tapped & focused.
3.5 SWOT Analysis
3.5.1 Strengths
Strength of Nestlé is the presence of its factories or operations in almost every country
in the world employing around 283000 people. The sales values have touched CHF 109.9
billion, with a net profit of CHF 18.0 billion. Nestle has recorded a financial growth even in
times of recession by promoting the sales of smaller and cheaper versions of products in
developing economies.
3.5.2 Weaknesses
Nestlé do not have direct market outlets and this can be one of the weaknesses as it
can cause difference in profit made. There another weakness is not having enough raw
material production units; they depend on either local raw material producers or through
other trade channels.
3.5.3 Opportunities
Nestlé’s weakness of not having a direct outlet can be converted as an opportunity by
introduction of new direct outlets. The acquisition of Cadburys for an example is an
opportunity since they are one of the main competitors for Nestlé. Setting up theirpersonal
farms and raw material production units is an opportunity as it would reduce the cost for
Nestlé.By acquisitions Nestlé can enter the new market, which is easy through already
existing companies. Nestlé has great opportunities in a society which is becoming more and
more health conscious.
10. 3.5.4 Threats
Their weakness of not having enough raw material production units (which cause
them to depend on other producers) and their dependency on other producers can threaten to
reduce thequality of products they offer. The contamination of food products is a major threat
to Nestlé in the market. Intense competition in its market segments also possesses a major
challenge to Nestlé as its competitors are also trying to increasing their product ranges which
might make inroads into Nestlé's profit.
Another threat to Nestle can be the maturity of the markets which they are entering n.
For example, in France, DANONE has already established itself as a market leader in case of
yogurt before Nestle launched its LC-1 division in France and could not compete against the
well-establishedDANONE. The consumers frequently tend to change their preference of
brands, so change in consumer trends is a threat to Nestlé.
11. 4. ENGRO FOODS
The Local Flavor with a global Vision
Engro Foods (Pvt.) Limited (EFL) has been established in 2005 as part of a
diversification process at the Engro Group. The plant located at Sukkhur on 23 acre land, has
the raw milk reception capability of 300,000 liters per day and UHT milk capacity of 200,000
liters per day. The plant has been established at a cost of Rs. 1 billion which provides direct
employment to 750 people.
Engro Foods has entered the Food business through milk processing and sale with the
company’s vision to pursue growth opportunities based on country fundamentals and own
strength. It also positions the company to leverage its corporate social responsibility
initiatives and work closely with rural communities to promote integrated farming and
livestock development. This effort is expected to play a pivotal role in poverty alleviation and
improving livelihoods of the poor in the milk collection areas.
4.1 Vision
“To be the Premier Pakistani Enterprise with a global reach, passionately pursuing
value creation for all stake holders”.
4.2 Mission
“To help farmers maximize their farm produce by providing quality plantnutrients and
technical services upon which they can depend. To create wealth by building new businesses
based on company and country strengths inPetrochemicals, Information Technology,
Infrastructure and other Agriculturalsectors. In pursuing the mission we shall at all-time be
guided in our conductand decision making by our Core Values.”
4.3 Core Values
1. To possess leadership among other companies.
2. To introduce innovative products.
3. To capture diversified marked and international focus.
4. To maintain quality and work for continuous improvement.
5. Candid and open communications.
6. External & Community Involvement
7. To focus on individual growth and development.
8. Enthusiastic pursuit of profit.
12. 9. To keep satisfied ethics and integrity.
10. To promote safety, health and pure environment.
11. To create opportunities of enjoyment and fun.
12. To promote teamwork and partnership.
4.4 SWOT Analysis
4.4.1 Strengths
Engro Foods is a well-established brand name; customers automatically have a brand
association.
They can easily afford research and development costs in order to introduce new
products.
They have strong supply chain (good PR with farmers provides world class supply
chain management).
The increasing sale figures form years to years showing customer satisfaction upon
Engro Foods Limited products.
Engro Foods involve in consumer and product research before and after launching a
product.
Engro Foods is having strong relationship with global research partners like AC
Nielsen, JWT Asiatic.
Company is not relying on third parties for sale and distribution and has its own sale
and distributing network.
Engro Foods Limited only has the third-generation UHT milk plant in the country.
Engro Foods Limited plant is the only plant in Pakistan that uses Bactofuge
technology to virtually eliminate bacteria and ensure premium quality and hygiene.
4.4.2 Weaknesses
One major weakness of Engro Foods in dairy products, which is that 85% of its milk
collection centers are in Punjab, while processing unit is in Sindh.
Higher transportation cost.
Dependency on TETRA PAK for the entire packing of its dairy products.
Paying higher cost of packing of products results in higher overall products cost.
The product range of Engro Foods narrows as compared to its competitors.
13. 4.4.3 Opportunities
Pakistan is the fourth largest milk producing country. So, it’s an opportunity for
company to grow in this sector.
Engro Foods can increase awareness though different media, by showing ads thoseare
according to cultural requirements of Pakistan.
By increasing the milk related products company can go globally.
Engro can launch products like dry milk, cereal and Yogurts etc.
Growing dissatisfaction with milkmen’s milk and increasing awareness about
healthand hygiene issues have led to increased processed milk consumption.
4.4.4 Threats
Engro Foods competitors Nestle and Haleeb are biggest threat.
There are opportunities and doors for new players are open who can be the future
competitors.
Consumer is aware now, there is need to maintain the quality of products. If
EngroFoods will not do so it loses its business in foods. There is threat from the
customer side.
Consumer’s perceptions and price differentials can cause a threat for the company.
Consumer’s preferences change with time and prices might create certain barriers
interms of the profit margins for ENGRO FOODS.
14. 5. Financial Statements of NESTLÉ Pakistan
5.1 Balance Sheet
NESTLÉ PAKISTAN LIMITED
Balance sheet
As at December 31st
2011
Assets: 2011(Rs)
Tangible fixed assets
Property, plant and equipment 16,230,528
Capital work in progress 5,370,561
Total tangible assets 21,601,089
Intangible assets 11,954
Long term loan and advances 161,982
Long term security deposits 9,817
Total intangible assets 183,753
Current assets
Stores and spares 1,278,416
Stock in trade 7,064,170
Trade debts 276,858
Current portion of long term loans and advances 30,914
Advances, deposits, prepayments and other receivables 4,042,634
Cash and bank balances 702,025
Total current assets 13,395,017
Total assets 35,179,859
Equity and Liabilities: 2011(RS)
Owner’s Equity
Share capital and reserves
Authorized capital 75,000,000(2010:75,000,000)ordinary Shares of Rs 10 each 750,000
Issued, subscribed and paid up capital 453,496
Share premium 249,527
General reserve 280,000
15. Accumulated profit 6,629,393
Total Owner’s Equity 7,612,416
Non-current liabilities
Long term finances 7,848,050
Deferred taxation 2,476,871
Retirement benefits 440,377
Liabilities against assets Subject to finance lease 13,690
Total non-current liabilities 10,778,988
Current liabilities
Current portion of non-current liabilities 41,587
Short term borrowings from associated company - unsecured ---
Short term borrowings –secured 4,950,000
Short term running finance under markup arrangements-secured 4,175,236
Customer security deposit Interest free 149,791
Trade and other payables 7,343,507
Interest and markup accrued 128,334
Total current liabilities 16,788,455
Total Equity and Liabilities 35,179,859
16. 5.2 Income Statement
NESTLÉ PAKISTAN LIMITED
Income statement
For the year ended December 31st
2011
2011(Rs)
Net sales 64,824,364
Cost of goods sold (48,099,046)
Gross profit 16,725,318
Distribution and selling expenses (6,862,113)
Administration expenses (1,405,298)
Operating profit 8,457,907
Finance cost (1,050,355)
Other operating expenses (1,064,233)
(2,114,588)
Other operating income 159,545
Profit before taxation 6,502,864
Taxation (1,834,507)
Profit after taxation 4,668,357
Earnings per share (Basic and dilute) 102.94
17. 6 Financial Statements of ENGRO FOODS Limited
6.1 Balance Sheet
ENGRO FOODS LIMITED
Balance Sheet
As at December 31st
2011
Assets 2011(Rs)
Non-Current Assets
Property,plant and equipment 9,615,426
Biological Assets 496,809
Intangible Assets 133,598
Long term advances, deposits and payments 24,212
Total non-current assets 10,270,045
Current Assets
Stores,spares and loose tools 571,812
Stock in trade 2,637,816
Trade debts 87,121
Advances, deposits and prepayments 266,093
Other receivables 1,160,126
Taxes recoverable 1,443
Derivative financial instrument ---
Short term investments 1,294,000
Cash and bank balance 350,728
Total current assets 6,369,139
Total Assets 16,639,184
Equity and Liabilities 2011(Rs)
Owner’s equity
Share capital 7517,889
Share premium 722,182
Hedging reserve (18,178)
Accumulated loss (984,951)
Total Owner’s Equity 7,236,942
18. Non- Current Liabilities
Long term finances 5,610,000
Obligation under finance lease 1,295
Deferred taxation 308,090
Deferred liabilities 1,870
Total non-current liabilities 5,921,255
Current Liabilities
Current portion of
-long term finance 465,000
-obligations under finance lease 3,884
Trade and other payables 2,343,506
Derivative financials instruments 27,966
Accruedinterest/ markup on
-long term finance 368,152
-short term finance 20,229
Short term finance 252,250
Total current liabilities 3,480,987
Total Equity and Liabilities 16,639,184
19. 6.2 Income Statement
ENGRO FOODS
Income Statement
As at December 31st
2011
2011(Rs)
Net sales 29,859,226
Cost of goods sold (23,230,445)
Gross profit 6,628,781
Less operating expenses
Distribution and marketing expenses (3,716,489)
Administrative expenses (504,722)
Other operating expenses (208,902)
Other operating income 213,133
Operating profit 2,411,801
Finance costs (1,049,141)
Profit before taxation 1,362,660
Taxation (471,687)
Profit for the year 890,973
Earnings per share (Basic and dilute) 1.22
20. 7. Data Table
The other data of NESTLÉ and ENGRO FOODS used in financial ratios analysis is as
follow:
NESTLÉ ENGRO FOODS
Total Assets 35,179,859 16,639,184
Current Assets 13,395,017 6,369,139
Current Liabilities 16,788,455 3,480,987
Inventories 7,046,126.522 3,046,859.795
Net Income 4,524,771 890,973
Average Total Assets* 10,873,970 14,549,624
Beginning Assets 8,352,923 12,460,064
Ending Assets 13,395,017 16,639,184
Average Stockholder’s
Equity**
6,597,144.5 2,923,870.5
Beginning Equity 5,581,873 5,124,047
Ending Equity 7,612,416 7,236,942
Sales 64,824,364 29,859,226
Number of Common Stock 45,350.272 370,305.7377
Cost of Goods Sold 48,099,046 23,230,445
Total Stockholder’s Equity 7,612,416 7,236,942
EBIT*** 6,586,973 1,388,430
EBT 6,502,864 1,362,660
Interest Expenses 84,109 25,770
Market Price Per Shares 4,844 25
EPS 102.94 1.22
Inventory Turnover 9.2 8.9
EAT 4,668,357 890,973
Gross Profit 16,725,318 6,628,781
Total Liabilities 2756443 9,402,242
22. 8. Balance Sheet Analysis of NESTLE and ENGRO FOODS
The asset side of balance sheet shows the size of the firm so by comparing balance
sheet of both companies we analyzed that the fixed asset of the nestle company is greater than
ENGRO foods which means that nestle has invested more in the fixed assets than ENGRO
foods whether by starting new project or by any other source. Due to high investment in fixed
assets long term loan and advances of nestle are also greater than engro foods and total assets
of nestle are also greater than engro foods which shows that the size of nestle is greater than
engro. Nestle has more cash and bank balance than engro foods and has more reserves which
shows that nestle hold more than dividing whereas engro divides more than holding with it
means nestle pays less dividend as compared to engro foods.
23. 9. ANALYSIS OF INCOME STATEMENT OF NESTLE AND ENGRO
We have made analysis between engro and nestle companies .here we analyze that
sales of nestle (64824, 364) is more as compare to engro(29859,226). Because their
investment in fixed asset is more as compare to angro.Production is also increase due to more
investment. And as production increase ultimately their sales is also increase.
Nestle have more cost of goods sold that is (48099, 046) whereas engro have (23230,
445). Because engro have only dairy products whereas nestle have broad category of
products. As nestle sales is more so their gross profit is also more as compare to engro.
Nestle have more distribution and selling expense as compare to engro because engro
have their own distribution channels whereas nestle relay on others for distribution. As well
as engro products are also less and due to this their distribution expenses are less.
Nestle company employee (328000) are more as compare to engro. As well as they
uses more advertising compains so that’s why their administrative expenses are more.
Nestle Finance cost is also more because their interest expense are more.
Operating expense of nestle (1064233) engro (208902) means they use more
directions to run their business. Nestle operating income is also more nestle is a well-known
brand and they generate high income.
Nestle have more tax because they have more products that is (1834,507) whereas
engro products are limited and their tax is (471,687).
Nestle have more no of shares and more earning.so Earning per share of nestle is also
more that is 102.94 as compare to engro that is 1.22
So after analysis of income statement we see that nestle have more sales and more profit
than engro which shows that nestle company is good than engro.
24. 10.Ratios of NESTLÉ for Financial Statement Analysis
a. Liquidity Ratios
Current Ratio
Current Ratio = Current Assets / Current Liabilities
= 13,395,017 / 16,788,455
= 0.80
Quick Ratio
Quick Ratio = (Current Assets – Inventories) / Current Liabilities
= (13,395,017 – 7,046,126.522) / 16,788,455
= 0.38
Net Working Capital Ratio
Net Working Capital = (Current Assets –Current Liabilities) / Total Assets
= (13,395,017 –16,788,455) / 35,179,859
= – 0.10
b. Profitability Analysis Ratios
Return on Assets (ROA)
Return on Assets (ROA) = Net Income / Average Total Assets*
= 4,524,771 / 10,873,970*
= 0.42
Return on Equity (ROE)
Return on Equity (ROE) = Net Income / Average Stockholders' Equity**
= 4,524,771 / 6,597,144.5
= 0.69
Return on Investment (ROI)
Return on Investment (ROI) = Net Profit After Taxes / Total Assets
= 4,668,357 / 35,179,859
= 0.13
Net Profit Margin
Net Profit Margin = Net Profit After Taxes / Net Sales
= 4,668,357 / 64,824,364
= 0.01
25. Gross Profit Margin
Gross Profit Margin = Gross Profit / Sales
= 16,725,318 / 64,824,364
= 0.26
Earnings Per Share (EPS)
Earnings Per Share (EPS) = Earnings After Taxes / Number of Shares
= 4,668,357 / 45,350.272
= 102.94
c. Activity Analysis Ratios
Asset Turnover Ratio
Asset Turnover Ratio = Net Sales / Total Assets
= 64,824,364 / 35,179,859
= 1.84
Inventory Turnover Ratio
Inventory Turnover Ratio = Cost of Goods Sold / inventory
= 48,099,046 / 7,046,126.522
=6.83
d. Capital Structure Analysis Ratios
Debt to Equity Ratio
Debt to Equity Ratio = Total Liabilities / Total Stockholders' Equity
= 2,756,443 / 7,612,416
= 3.62
Debt to Asset Ratio
Debt to Asset Ratio =Total Debt/ Total Assets
= 2,756,443 / 35,179,859
= 0.08
Interest Coverage Ratio
Interest Coverage Ratio = Income Before Interest and Income Tax Expenses*** /
Interest Expense
= 6,586,973*** / 84,109
= 78.31
26. e. Capital Market Analysis Ratios
Price Earnings (PE) Ratio
Price Earnings (PE) Ratio = Market Priceper Share / Earnings per Share
= 4,844 / 102.94
= 47.06
27. 11.Ratios of ENGRO FOODS for Financial Statement Analysis
a. Liquidity Ratios
Current Ratio
Current Ratio = Current Assets/ Current Liabilities
= 6,369,139 / 3,480,987
= 1.83
Quick Ratio
Quick Ratio = (Current Assets – Inventories)/Current Liabilities
= (6,369,139– 3,046,859.795) / 3,480,987
= 0.95
Net Working Capital Ratio
Net Working Capital = (Current Assets – Current Liabilities)/Total Assets
= (6,369,139 – 3,480,987) / 16,639,184
= 0.17
b. Profitability Analysis Ratios
Return on Assets (ROA)
Return on Assets (ROA) = Net Income/Average Total Assets*
= 890,973 / 14,549,624
= 0.06
Return on Equity (ROE)
Return on Equity (ROE) = Net Income/Average Stockholders' Equity**
= 890,973 / 2,923,870.5
= 0.03
Return on Investment (ROI)
Return on Investment (ROI) = Net Profit After Taxes/ Total Assets
= 890,973 / 16,639,184
= 0.05
Net Profit Margin
Net Profit Margin = Net Profit After Taxes / Net Sales
= 890,973 / 29,859,226
= 0.03
28. Gross Profit Margin
Gross Profit Margin = Gross Profit/ Sales
= 6,628,781 / 29,859, 226
= 0.22
Earnings Per Share (EPS)
Earnings Per Share (EPS) =Earnings After Taxes / Number of Shares
= 890,973 / 730,305.7377
= 1.22
c. Activity Analysis Ratios
Asset Turnover Ratio
Asset Turnover Ratio =Net Sales/Total Assets
= 29,859,226 / 16,639,184
= 1.79
Inventory Turnover Ratio
Inventory Turnover Ratio = Cost of Goods Sold / Inventory
= 23,230,445 / 3,046,859.795
= 7.62
d. Capital Structure Analysis Ratios
Debt to Equity Ratio
Debt to Equity Ratio = Total Liabilities / Total Stockholders' Equity
= 9,402,242 / 7,236,942
= 1.30
Debt to Asset Ratio
Debt to Asset Ratio = Total Debt/ Total Assets
= 9,402,242/16,639,184
= 0.57
Interest Coverage Ratio
Interest Coverage Ratio = Income Before Interest and Income Tax Expenses*** /
Interest Expense
= 1,388,430 / 25,770
= 53.88
29. e. Capital Market Analysis Ratios
Price Earnings (PE) Ratio
Price Earnings (PE) Ratio = Market Price of Common Stock per Share / Earnings per
Share
= 25 / 1.22
= 20.49
30. 12.Financial Ratios Analysis
12.1 Liquidity Analysis
Current Ratio
Current ratio tells us the short term solvency of the firm and tells the ability of
the firm to repay its short term obligations. In nestle the firm has 0.80 ability to repay
against the $ 1 loan and Engro has 1.83 so this implies that Engro food has more
ability to repay its short term obligations.
Quick Ratio
Quick ratio measures the firm’s ability to pay off short term obligations
without relying on the sale of inventory. Nestle has the quick ratio of 0.38 whereas
Engro foods has 0.95 chances of paying off its short term obligations without relying
on the level or sales of inventory.
12.2Profitability Analysis
Return on Investment
How much a firm is returning to its stockholder only in the case if the firm is
earning profit? Nestle have return on investment ratio 0.13 or 13% whereas Engro
foods has 0.05 or 5% means nestle is returning more than Engro foods so it is better to
invest in nestle.
Net Profit Margin Ratio
Net profit margin is calculated by dividing the net profit after taxes by the
sales means after paying the taxes you are earning some of the profit it means firm is
doing its business well. Nestle is earning 0.01 or 1% against $ 1 and Engro food is
earning 0.03 or 3% it shows in the profitability ratios Nestle is earning more than
Engro foods.
Gross Profit Margin Ratio
It tells that how much a firm will receive against $ 1 sales. Nestle has 0.26
gross profit margin ratio and Engro has 0.22. So in this case nestle is earning more
profit than Engro foods.
31. 12.3Activity Analysis
Asset Turnover Ratio
This ratio measures the turnover of the entire firm’s asset. It is calculated by
dividing the sales by total assets of the firm. If firm shouldn’t increase its sales so
there is a possibility that a firm will sale its some assets. There is 1.84 chances of
asset turnover in nestle and 1.79 in Engro foods against every $ 1.
Inventory Turnover Ratio
Inventory turnover is calculated by dividing the CGS by inventory. The
inventory turnover of nestle is 6.83 times and of Engro foods is 7.62 times. Here the
best ratio is of Engro foods that is much more than nestle.
12.4Capital Structure Analysis
Debt to Equity Ratio
Debt to equity ratio shows the comparison to equity this ratio tells that how
much firm has ability to pay its debt and if equity is more than the total debt of the
firm so firm will face low risk. In nestle the firm has 3.62 against $ 1 to pay debt
whereas Engro food has 1.30 to pay against $ 1 debt. Here Nestle has more ability to
pay its debt.
Debt to Asset Ratio
Debt to asset ratio shows if the firms have more assets regardless of total debt
than that firm will easily pay off its debts. The debt to asset ratio in nestle is 0.08
whereas 0.57 in Engro foods. So Engro foods will pay off its debt more easily than
nestle.
Interest Coverage Ratio
Interest coverage ratio measures the extent to which the operating income of
the firm can decline before the firm is unable to meet its annual interest cost. Nestle
has 78.31 times interest coverage ratio whereas Engro foods has 53.88 times interest
coverage ratio so Engro foods has less chances of failure and facing bankruptcy than
nestle.
32. 13. Cash Budget of NESTLE
2011(Rs)
Collection:
Cash Sales 63,493,494
Credit Sales 1,330,870
Total Sales 64,824,364
Disbursement:
Purchases 10,949,999
Other Payment:
Taxes 1,834,507
Rent 241,502
Wages and Salaries 4,277,554
Interest 364,375
Depreciation 1,618,271
Other Expenses 405,262
Total of Other payment and Purchases 19,691,470
Net Cash Flow:
Beginning Balance 67,365
Collections 64,824,364
Disbursement (19,691,470)
Ending Balance 45,200,259
33. 14. Cash budget of ENGRO FOODS
2011(Rs)
Collections:
Cash Sales 29,419,835
Credit Sales 439,391
Total Sales 29,859,226
Disbursement:
Purchases 3,334,977
Other payments:
Taxes 603,853
Rent 217,821
Wages and Salaries 1,271,114
Interest 51,537
Depreciation 1,023,597
Other expenses 208,902
Total of Other Payments and Purchases 6,711,801
Net Cash flow:
Beginning balance 5,124,407
Collections 29,859,226
Disbursement (6,711,801)
Ending Balance 28,271,832
34. 15.Conclusion
After all the findings, it is concluded that financial ratios are the basic and
most important part of any business. It describes the firm’s financial position. As the
data indicates that NESTLE is an international brand and has expanded its business on
the large geographical area and also offers the large range of products, but on the
other side ENGRO food offers the limited range of the products and most of them are
dairy products.
From the financial statements it is clear that the financial position of the
NESTLE is far better than ENGRO as it is more preferred by the customers and also
an internationally distributed. It also has less risk. It gives more return because it gains
more profit than ENGRO.On the other hand ENGRO deals with the limited products
in a limited geographical area but on the basis of financial ratios ENGRO has a better
financial position and also has an opportunity to expand its business. Both the
companies have some opportunities and threads and they need to work on it.
35. 16.Recommendations
NESTLE doesn’t have any direct market and outlets so it can be a disadvantage so
they should facilitate their customers through pricing strategies and if they start direct
market or open the outlets so the prices will fall automatically and customers need not
to pay any extra money to the suppliers.
NESTLE Pakistan mostly depends on the local raw material and sometimes the
quality of the raw material is not as good as in the other countries so they should not
rely on the local raw material if they want to provide the quality products.
ENGRO foods should introduce other product lines and expand the business.
ENGRO foods should distribute their products to more geographical areas.
As NESTLE is a well-known product and ENGRO food is not as known
internationally as NESTLE is, so they need to spend more money on the marketing
activities.
ENGRO food is better than NESTLE in the financial analysis so if they expand their
product line and cover the same geographical area as NESTLE has covered so
ENGRO can appear as a strong competitor of NESTLE and HALEEB.