...1.0 INTRODUCTION Financial Statement Analysis is an analysis which highlights important relationships between items in the financial statements. Financial Statement analysis embraces the methods used in assessing and interpreting the results of past performance and current financial position as they relate to particular factors of interest in investment decisions. It is an important means of assessing past performance and in forecasting and planning future performance. The major objectives of financial statement analysis are to provide decision makers information about a business enterprise for use in decision-making. Users of financial statement information are the decision makers concerned with evaluating the economic situation of the firm and predicting its future course. As we know, financial statement analysis so important for investors and creditors. Investors or creditors are interested in the trend of past sales, cost of good sold, operating expenses, net income, cash flows and return on investment. These trends offer a means for judging management's past performance and are possible indicators of future performance. Besides that, financial statement analysis shows the current position of the firm in terms of the types of assets owned by a business firm and the different liabilities due against the enterprise. Then, financial statement analysis helps in assessing and predicting the earning prospects and growth rates in earning which are used by investors while comparing investment alternatives...
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...Section – (B) Group 20 Financial Analysis of NESTLE VS BRITANNIA FOOD PROCESSING INDUSTRY By: HIMANSHU BHATT (P35133) SOURAV ANAND(P35189) SRAYANSI WORAH(P35190) SWARNIM SINGH(P35199) VENKATH SAMPATH DORA(P35205) Executive Summary The food processing industry is one of the most important sectors in India considering its linkage to agriculture and food consumption in an economy of a billion plus population. The food processing industry is also significant in terms of its socio-economic bearing on the economy. It employs 13 million people directly and about 35 million people indirectly. The worth of the Indian processed foods sector stood at US$ 157 billion in 2012 and is expected to touch USD 255 billion by FY2016 with 13% growth rate per annum. This sector has all the basic attributes (like abundance of raw-material, basic skill sets etc.) to contribute highly in India's manufacturing output. To better understand the sector, analysis of two biggest players in food processing industry in India- Nestle India and Britannia was done. The financial analysis of the two players was done with the objective of understanding the reasons behind the competitive edge of the market leader in the sector as well as understanding the steps or initiatives that can be taken by the rival to challenge the market leader. Food Processing Industry in India ------------------------------------------------- Food is the biggest expense for an...
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... MIM Aug 2015 CONTENT 1. INTRODUCTION: NESTLE MALAYSIA BHD……………………………..............3 1.1 Brief history......……………………………………………………………......3 2. INTERNAL ANALYSIS…………………………………………………………........4 2.1 SWOT Analysis……………………………………..……………………........4 2.2 Porter’s Five Forces Analysis………………………..………………………...7 2.3 PESTLE Analysis………………………………..…………………………….8 3. COMPETITIVE ANALYSIS………………………………………………………...10 3.1 Ratio analysis……………………………………………..…………………..11 3.2 Profitability…………………………………………………………..……….11 3.3 Liquidity………………………………………………………………..……..12 3.4 Solvency…………………………………………………………………..…..13 3.5 Horizontal analysis……………………………………………………………14 3.6 Vertical analysis…………………………………………………………........17 4. SHARE PRICE ANALYSIS…………………………………………………………19 5. THE BALANCED SCORECARD – VISION AND STRATEGY…………………..20 6. CONCLUSION AND RECOMMENDATION……………………………………....20 REFERENCES………………………………………………………………………..21 APPENDIX…………………………………………………………………………...22 2 1. INTRODUCTION NESTLE MALAYSIA BHD The aim of this report is to identify the important financial issues of Nestle Malaysia Bhd, according to its business situation and performance. Financial accounting will be provided in this report such as competitive analysis. It will helps to well understand the current competitive situation, determine main competitors and understand their marketing strategy. Moreover, financial analysis shows entity through calculating profitability, liquidity and solvency ratios. So in order to clearly elaborate, Nestlé’s competitor...
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...statements…Let me show you how… FINANCIAL HEALTH OF THE COMPANIES Increasing PAT & Sales Revenue for both the companies. Retirement of secured loan by both the companies. ₹ 90,926 Million (2014) Sales Revenue 8% ₹ 84576 Million (2013) ₹ 73780 Million (2014) Total Cost 7% ₹ 68783 Million (2013) ₹ 15008 Million (2014) PAT 3% ₹ 14598 Million (2013) Financial Highlights of B/S Sales 133% Investments Revenue ₹ 63548 Million (2014) 12% ₹ 56811 Million (2013) ₹ 58066 Million (2014) Highlights of B/S 33% Investments 216% Cash Total Cost 9% ₹ 53111 Million (2013) ₹ 3654 Million (2014) 30% Receivables Secured Loan -15% PAT Secured Loan 53% ₹ 2393 Million (2013) -100% CASH FLOW ANALYSIS Britannia is concentrating more on investment than Nestle. ₹ 17964 Million (2014) Operating Activities 6% ₹ 16933 Million (2013) ₹ (9408) Million (2013) Decrease in cash outflow from Investing activities company is investing less Less expansion plans ₹ 6145 Million (2014) Operating Activities 126% ₹ 2720 Million (2013) ₹ -2273 Million (2014) Investing 522% Activities ₹ 539 Million (2013) ₹ (3591) Million (2013) Increase in cash outflow from Investing activities company is investing more More expansion plans High future growth Increase in profits Increase in cash flow from operating Investing Activities 53% ₹ (4409) Million (2014) ₹ (5801) Million (2014) Financing Financing 13% ₹ (5131) Million (2013) Activities 9% ₹ (3254) Million...
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...5013 ) Nestlé Malaysia Berhad Lecturer : Mrs Faoziah Idris Prepared by:- 1. | Nur Shazleen binti Abdul Rahman | 809155 | 2. | Halim bin Hamim | 810274 | 3. | Noor’aishah binti Mohamad | 812016 | 4. | Nor Hadzalina binti Sukarseh | 812020 | 5. | Ahmad Naim bin Ismail | 812891 | TABLE OF CONTENT | Content | Page | 1. | INTRODUCTION | 4-5 | 2. i. ii. | BALANCE SHEETBalance Sheet For Nestle (M) Berhad Ended December 2007 – 2011 Fig. 1 : Balance Sheet of Nestlé Malaysia Fig. 2 : The Movement of Total Equity & Liabilities from 2007 to 2011 for Nestlé Malaysia Balance Sheet Analysis | 5 6 7 7 | 3. i. ii. iii. | PROFIT and LOSSProfit and Loss For Nestle (M) Berhad Ended December 2007 – 2011 Fig. 3 : Profit and Loss5 years Statistic: Profit for the year attribute to Shareholder Fig. 4 : 5 years Statistic: Profit for the year attribute to ShareholderProfit and Loss Analysis | 7-8 8 8 9 | 4.i.ii. | CASH FLOW Cash Flow Statement Nestle (M) Berhad for the year ended 31 December (2007 – 2011) Fig. 5 : Cash Flow Statement Fig. 6 : Net Cash from Operations Increasing Cash Flow Analysis | 9 10-11 11 11-12 | 5. i. a. b. c. d. e. f. g. | PERFORMANCE ANALYSIS RATIOFinancial Ratio for Nestle (M) Berhad Fig. 7 : Financial Ratio Fig. 8 : Calculation of Financial Ratio Current ratio The Quick Ratio Fig. 9 : Current Ratio &...
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...Table of contents Table of Content…...................................................................................1 Company Profile...…………………………………………………..…... Analysis of Financial Statement & Financial Ratio……………………. Historical Share Price……………………………………………………... Leverage Ratio & Evaluation…………………………………………… Recommendation……………………………………………………….. Bibliography……………………………………………………………… Appendix…………………………………………………………………. Company Profile Nestle company started off from a single man’s idea, and developed into a giant corporation. Nestlé’s business strategy encourages product growth through innovation and renovation. This strategy has allowed the company to develop different products in various fields including baby food, dairy products, prepared foods and beverages. The missions of the Nestlé success attracted the confidential and contribute the good business value with the local consumers and market. They have successfully created very close relationships between the brands and their consumers. Nestle has also developed the local management teams, build local manufacturing, research & development (R&D) and establish local supply-chain initiatives including long-term relationships with farmers and other suppliers. Besides, Nestlé has much strength such as being a low cost operator and emphasized on health-based products which are becoming more popular as consumers nowadays are becoming more health conscious. There will be threat to the company...
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...Financial Aspects of Management [pic] Parikshit Jain (08EM-028) Varun Sharma (08EM-051) Anushree Singh (08EM-012) Paras Sharma (08EM-027) Suneet Sharma (08EM-047) Raunaq Singh (08EM-034) Contents 1) Introduction 3 a) Nestle India 3 2) EPS Calculation 3 a) EPS Break-up 3 3) D/E Calculation 4 a) Debt and Equity Values 4 4) Interest Coverage Ratio 5 a) EBIT - Interest Values 5 5) Project Financing 6 a) EPS 6 b) D/E 7 c) Coverage Ratio 7 d) Equity- Debt 8 e) Equity- Preference Shares 8 6) Conclusion 10 Introduction Nestle India Nestle India is a subsidiary of Nestle S.A. of Switzerland. Nestle India manufactures a variety of food products such as infant food, milk products, beverages, prepared dishes & cooking aids, and chocolates & confectionary. Some of the famous brands of Nestle are NESCAFE, MAGGI, MILKYBAR, MILO, KIT KAT, BAR-ONE, MILKMAID, NESTEA, NESTLE Milk, NESTLE SLIM Milk, NESTLE Fresh 'n' Natural Dahi and NESTLE Jeera Raita. EPS Calculation EPS Break-up | |Dec, 2007 | |Total Income |35297.94 | |Total Expenditure |28244.06 | |EBIT |7053.88 | |Interest |8.55 | |Depreciation ...
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...resources in a society Markets allow any tradable item to be evaluated and priced MARKET DEMOGAPHICS Population: 180,000,000 Growth rate: 1.828% Birth rate: 27.74 births/1,000 population Death rate: 8 deaths/1,000 population Net migration rate: -1.24 migrant(s)/1,000 populations 0-14 years: 40% (male 33,293,428; female 31,434,314) 15-64 years: 56.9% (male 48,214,298; female 46,062,933) 65 years and over: 4.1% (male 3,256,065; female 3,542,522) INDUSTRY ANALYSIS POPULATION 180000000 RURAL 116916480 URBAN 63083520 PEOPLE WITHOUT WATER 44% BOTTLE WATER USAGE 9% PEOPLE WITHOUT BOTTLE WATER 91728000 TOTAL TARGET MARKET 9072000 MISSION STATEMENT Nestlé is dedicated to providing the best foods to people throughout their day, throughout their lives, throughout the world. With our unique experience of anticipating consumers' needs and creating solutions, Nestlé contributes to your well-being and enhances your quality of life. VISION STATEMENT We envision Nestlé to grow in the shortest Possible time into the number one food company in Pakistan with the unique ability to meet the needs of consumers of every age group from infancy to old age, For nutrition and pleasure, through development of a large Variety of food categories of the highest quality We envision the company to develop an extremely Motivated and professionally trained workforce, which Would drive growth through innovation and renovation We aspire, as a respected...
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...Financial Statement to compute the key financial ratios as an indicator for the Hershey's company in the global financial scale. Through calculations of the profitability, liquidity, stability and shareholder's interest; the five year trends from 2009 to 2013 will be analysed in both an internal and external environmental context as a determinant for the future growth. A brief comparison on key ratios will be made to Nestle, a similar competitor in the industry to appreciate Hershey's financial standing. The paper will conclude with limitations of the research paper and a summary of the findings. TABLE OF CONTENTS ABSTRACT ii LISTS OF TABLES iv LISTS OF FIGURES v 1.0 Introduction and Background 6 2.0 Analysis 9 3.0 Analysis and Discussion 11 3.1 Analysing Profitably 11 3.2 Analysing Liquidity 15 3.3 Analysing Efficiency 17 3.4 Analysing Stability 18 3.5 Analysing Shareholder's Interest 19 3.6 Financial Analysis Comparison to Nestle 20 4.0 LIMITATIONS 20 5.0 CONCLUSION 21 REFERENCES 22 BIBLIOGRAPHY 23 Appendix A 24 Appendix B 25 Appendix C 26 LISTS OF TABLES Table 1: Key Ratios for The Hershey's Company 23 Table 2: Key Ratio Comparison between Hershey's and Nestle 24 LISTS OF FIGURES Figure 1: Confectionary Market Share 6 Figure 2: Global Market Share for the Confectionary Market 2009 7 Figure 3: Positions in Emerging Markets 8 Figure 4: Profitability Ratios 11...
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...Nestlé in 2008 PAGE LIST COURSEWORK COVER COVER……………………………………………………………………………………1 PAGE LIST………………………………………………………………………………..2 INTRODUCTION……………………………………...…………………………………3 HISTORY……………………………………………..…………………………………..4 * TIMELINE……………………………………………….………………………..7 BUSINESS MODEL AND FRAMEWORK…………………………...…………………8 QUESTION AND ANSWER………………………………………………..……………9 * QUESTION 1……………………………………………………………………...9 * QUESTION 2………………………………………………………….…………14 * QUESTION 3………………………………….…………………………………17 * QUESTION 4……………………………………………….……………………19 * QUESTION 5…………………………………………………………….………20 ANALYSIS………………………………………………………………………………22 * SWOT……………………………………………………………………………23 * PORTER’S 5 FORCES……………….…………………………………………30 * PORTER’S VALUE CHAIN……………………………………………………36 * BCG MATRIX…………………………………………..………………………39 * PORTER’S GENERIC STRATEGIES……………………….…………………41 FINANCIAL STATEMENT……………………………………………….……………44 CONCLUSION……………………………………………………..……………………49 RECOMMENDATION……………………………………………………….…………51 CITATIONS…………………………………………..…………………………………53 INTRODUCTION Nestlé is the largest food and beverage company in the world. It is also well on its way to becoming world leader in nutrition, health and wellness. Nestlé is a Swiss company, founded in 1866 by Henri Nestle. Henri Nestlé, the founder of Nestlé, was a life-saving chemist but also an innovative marketer. He used scientific knowledge to develop products that met consumer needs. He used his name to brand his products in a distinctive...
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...Company Financial Report Audrey Goldman Chloe Bellewoar Maria Sharpe Jenna Fischer Jean Zhao Audrey Goldman Chloe Bellewoar Maria Sharpe Jenna Fischer Jean Zhao Table of Contents Introduction………..……………………………………………………….3 Financial Analysis………………………………………..……………..5-18 Cash Flow Adequacy Ratios………………………………………….5 Liquidity Ratios……………………………………………………..6-7 Vertical Analysis-Balance Sheet……………………………………8-9 Vertical Analysis-Income Statement……………………………..10-11 Trend Analysis……………………………………………………….11 Market Strength Ratios……………………………………………...12 Long Term Solvency Ratios………………………………………….13 Dupont Analysis……………………………………………………..14 Profitability Analysis…………………………………………….15-16 Coverage Ratios………………………………………………….16-17 Horizontal Analysis……………………………………………...17-18 Comparative Industry Analysis………………………………………….19 Direct Competitor Analysis……………………………….…………19 Market Capitalization……………………………………………….19 Price per Earnings…………………………………………………..20 Revenue Growth…...………………………………………………...20 Competitor Stock Graph Comparison……………………………….20 Profit Margin………………………………………………………..21 Cash Flow to Sales…………………………………………………..22 Investment Analysis…………………………………………………...23-25 DCF Analysis…………………………………………………….23-24 Buy-Hold-Sell Decision……………………………………………...25 Bibliography………………………………………………………………..26 Introduction Introduction Hershey’s Story The Hershey Company began in 1894, just a subsidiary of Milton Hershey’s Lancaster, Pennsylvania caramel...
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...leading FMCG companies in India – Britannia Industries, Dabur India, ITC Ltd, Nestle India Ltd, Marico Ltd, and Colgate Palmolive ltd over a period of five years (2009 to 2014). FMCG sector in India has been experiencing a phenomenal pace of growth since last decade, thanks to increasing consumer incomes and rapidly changing consumer tastes and preferences. Large scale and low cost production, modern retailing strategies, branding and maintenance of intense distribution network have given FMCGs an edge over others in raising hovering revenues. In this study we have used ratio analysis and have applied tools of descriptive statistics to compare the financial positions of these companies. We have also studied the basic differences in the accounting policies that are adopted by these companies in the respect of revenue recognition, depreciation and inventory valuation. Objectives of the study Keeping in view the importance of FMCGs in India’s economic and social development, the study generally aims at evaluating the financial performance of the six leading FMCG companies – Britannia Industries and Dabur India, Nestle India Ltd., Marico Ltd , Colgate Palmolive, ITC Ltd. over a period of 5 years (2009 to 2014). The specific objectives of the study are: * To study the profitability and liquidity trend of the selected FMCG companies. * Comparative analysis of the selected companies based on the given ratios. * To analyze...
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...Executive Summary Strategic financial management is one of the most critical and important activities for the professional business manager. It is a fact that the consequences of all important management decisions, financial and otherwise, are immediately and/or eventually will be reflected in the financial performance of the business enterprise. Financial management is concerned with the efficient acquisition and deployment of both short and long-term financial resources, to ensure the objectives of the enterprise are achieved. Decisions must be taken in three key areas: * Investment - both long-term investment in non-current assets and short-term investment in working capital; * Finance - from what sources should funds be raised? * Dividends - how should cash funds be allocated to shareholders and how will the value of the business are affected by this? Efficient financial management requires the existence of some objective or goal, because judgment as to whether or not a financial decision is efficient must be made in light of some standard. Although various objectives are possible, we assume in this book that the goal of the firm is to maximize the wealth of the firm’s present owners. Shares of common stock give evidence of ownership in a corporation. Shareholder wealth is represented by the market price per share of the firm’s common stock, which, in turn, is a reflection of the firm’s investment, financing, and asset management decisions. The idea is...
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...CHAPTER ONE 1. BACKGROUND OF THE STUDY Before an investor commits his funds to any investment in stocks, he must ensure that such stock is the type that is capable of satisfying his investment objectives. These objectives which vary from one investor to another include:- i) security (safety of capital invested) ii) adequate return on investment by way of dividends iii) growth prospects/capital appreciation iv) spread of risks, etc. The exercise of security analysis is based on the general assumption that the intrinsic value of a company can be discovered by an assembly and analysis of financial information relating to its operations. This then forms the basis on which the investor could evaluate each stock in the market and determine the extent to which it satisfies his specific objectives before deciding whether or not to invest. 2. STATEMENT OF THE PROBLEM A decision to invest in stocks, like any other investment decision, has a direct impact on the investor’s networth. The main issue which this study focuses on is to examine how prudently an investor can select securities based on conventional objective criteria so as to improve his networth. Consequently, some relevant research questions that direct the study include:- - determining the profitability of the companies whose studies are being offered to the investor and likelihood of maintaining or improving upon such performance...
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...Table of Contents I- Introduction 2 II- Analysis 3 1- External Analysis 3 i) Porter’s 5 Force 3 ii) Key Success Factors 4 2- Internal Analysis 5 i) Value Chain Analysis 5 ii) Financial Analysis 6 III- Decision Opinions with Evaluation 6 IV- Recommendation and Implementation 8 1- Short Term Activities 8 2- Long Term Activities 9 V- Exhibits 10 i) Exhibit A: Financial Ratio Analysis and Calculations 10 ii) Exhibit B: Decision Matrix 11 Introduction First time winner of the “Product of the Year” category, Ice-Fili, is the top ice cream producer in Russia. Recently, the company is experiencing tough competition by Nestlé and regional ice cream producers. Ice-Fili’s current problem is its loss in market share due to their poor quality decision-making after Russia became an open-market in 1992. Nestlé took advantage of Ice-Fili’s low reaction adjustment and is taking over their market. What should be Ice-Fili’s next move? To offer proper advice, an external and internal analysis should be conducted to analyze their environment. Analysis EXTERNAL ANALYSIS An external analysis allows us to understand the ice cream industry. It includes analyzing Porter’s 5 forces and Ice-Fili’s key success factors in comparison to its competitors. Porter’s 5 Forces 1- Threat of New Entrants High The ice cream market is attractive due to its 15% to 20% profit margin and low initial capital investment. Ingredients are acquired at low cost because...
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