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IntroductionNestle Pakistan Limited is a subsidiary of
Nestle S.A. based in Switzerland. Nestle Pakistan is principally engaged in
the manufacture, and sale of food products which include milk, yogurt, ghee, cream, coffee, juices, instant drinks and bottled water.
The company also manufactures infant cereals, breakfast cereals, prepared meals, chocolates, confectionery .
ALSO
The company markets its products under international brand names that include Nescafe, Maggi, Cereal, Milky bar, Kit Kat, Bar-One, Milkmaid, and Pure Life.
The company with three manufacturing facilities operates all over Pakistan.
NESTLE MISSION STATEMENT
We want Nestlé products to be within reach for every single Pakistani. Yet nutritional value and quality remain the most essential ingredients in all our brands.
Nestlé brands are designed to suit your lifestyle and your needs. You can take advantage of the best nutrition in a way that is suitable for your tastes and lifestyle ..
Now we will present some current ratios of Year 2009 & 2010
Formula:Current ratio=
Current Assets-Inventory / Current Liability
2010Current Ratio:
5,684,078/5,306,571Current Ratio: 1.07
2009Current Ratio:
5,623,823/5,978,522Current Ratio: 0.09
Asset turnover ratioAsset turnover ratio = sales / total
asset 2010
Asset turnover ratio: 34,183,847/16,684,176Asset turnover ratio: 3.199
2009Asset turnover ratio: 28,235,393/15,848,574
Asset turnover ratio: 1.78Interpretation:
Sales of the firm is improved as related to the total assets
Return on equityReturn on equity = net income /
common equity2010
Return on equity: 1,552,894/4,388,847Return on equity: 0.354
2009Return on equity: 1,865,212/4,111,705
Return on equity: 0.44Interpretation:
Net Income of the firm is decreased. So the return against the equity is also not good
Account Receivable TurnoverA/R Turnover= Sales/Account receivable
2010A/R Turnover: 25,231,532/1,488,103
A/R Turnover: 16.92009
A/R Turnover: 20,285,142/2,022,387A/R Turnover: 10.03
Interpretation:Firm’s management is efficiently managing its
receivable period.
Accounts Payable turnoverA/P Turnover= Sales/Accounts payable
2010A/P Turnover: 25,231,532/2,798,185
A/P Turnover: 9.012009
A/P Turnover: 20,285,142/30,624,227A/P Turnover: 6.624
Interpretation:Management is not efficient in paying its
payables.
Profit MarginProfit Margin= Net Income/Sales
2010Profit Margin: 1,552,894/34,183,847
Profit Margin: 0.0452009
Profit Margin: 1,805,212/28,235,393Profit Margin: 0.064Interpretation:
Decline in P.M shows the insufficient NI related to the sales.
Long Term Debt RatioLong Term Debt Ratio= LTD/LTD+ Total Equity
2010
Long Term Debt Ratio: 5,139,875/5,139,875+4,388,847
Long Term Debt Ratio: 0.542009
Long Term Debt Ratio: 4,028,700/4,028,700+4,111,705
Long Term Debt Ratio: 0.5
SWOT ANALYSIS
SWOT stands for strength, weakness, opportunities and threats for the company. Following is the SWOT analysis of Nestle
Repeatedly ranked as the world's largest bottled water company and have set up facilities to operate water resources in a responsible manner.
CONCLUSION
Its prices are high against its competitors but it matches its quality.
Nestle is largest food and beverage company with its mission to provide healthy life style.
Their excellent distribution channels make it available at any retailer store.
Ethical standard are big issue in Nestle US.