![Reference
Bursamalaysia.com.
NESTLE (MALAYSIA) BERHAD [S] (4707) | Bursa Malaysia Market
In-text: (Bursamalaysia.com, 2014)
Bibliography: Bursamalaysia.com. 2014. NESTLE (MALAYSIA) BERHAD [S] (4707) | Bursa
Malaysia Market. [online] Available at: http://www.bursamalaysia.com/market/listedcompanies/list-of-companies/plc-profile.html?stock_code=4707 [Accessed: 22 Jan 2014].
Businesscasestudies.co.uk.
Introduction - Nutrition, Health & Wellness - New Product Development at Nestlé - Nestlé |
Nestlé case studies, videos, social media and information | The Times 100
In-text: (Businesscasestudies.co.uk, 2014)
Bibliography: Businesscasestudies.co.uk. 2014. Introduction - Nutrition, Health & Wellness -
New Product Development at Nestlé - Nestlé | Nestlé case studies, videos, social media and
information | The Times 100. [online] Available at:
http://businesscasestudies.co.uk/nestle/nutrition-health-wellness-new-product-development-atnestle/introduction.html#axzz2r7ENaBtn [Accessed: 22 Jan 2014].
Nestle
History
In-text: (http://www.nestle.com, 1866)
Bibliography: http://www.nestle.com. 1866. History. [online] Available at:
http://www.nestle.com/aboutus/history [Accessed: 22 Jan 2014].
Nestle.
Consolidated Financial Statement of the Nestle Group 2012
In-text: (Nestle, 2012)
Bibliography: Nestle. 2012. Consolidated Financial Statement of the Nestle Group 2012. [online]
Available at: http://www.nestle.com/assetlibrary/Documents/Library/Documents/Financial_Statements/2012-Financial-Statements-EN.pdf
[Accessed: 22 Jan 2014].
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![Nestle.
Consolidated Financial Statement of the Nestle Group 2011
In-text: (Nestle, 2011)
Bibliography: Nestle. 2011. Consolidated Financial Statement of the Nestle Group 2011. [online]
Available at: http://www.nestle.com/assetlibrary/documents/library/documents/financial_statements/2011-financial-statements-en.pdf
[Accessed: 22 Jan 2014].
13 | P a g e](https://image.slidesharecdn.com/accountsurgh2-140222011055-phpapp02/85/Basic-Accounting-Assignment-Ratio-Analysis-Report-10-320.jpg)
Basic Accounting Assignment (Ratio Analysis Report)
- 1. Ratio Analysis on the Business Based on the Year 2011 & 2012 Profitability Ratios Return of Equity(ROE) 2011 2012 = = 100 100 Interpretation = = =16.22% = 18.30% Net Profit Margin(NPM) = = = =11.72% = = 11.99 Gross Profit Margin(GPM) = = = =29.90% = = 30.31% Selling Exp. Ratio(SER) = = = 15.79% = 15.44% General Exp. Ratio(GER) = = = =15.79% = =15.44% 100 100 During the period 2011 to 2012, the ROE has increase from 16.22% to 18.30%. This means that the owner is getting a higher return of his capital this year. During the period 2011 to 2012, the NPM has increase from 11.72% to 11.99%. This means that the business is getting better at controlling expenses. During the period 2011 to 2012, the GPM has increase from 29.90% to 30.31%. This means that the business is getting better at controlling its COGS. During the period 2011 to 2012, the SER has decrease from 15.79% to 15.44%. This means that the business is getting better at controlling its selling expenses. During the period 2011 to 2012, the GER has decrease from 15.79% to 15.44%. This means that the business is getting better at controlling its general expenses. 4|Page
- 2. Stability Ratios 2011 2012 Working Capital(WCR) = = = =0.94:1 = =0.91:1 Total Debt = = = =48.92% = =50.40% = 365 = 365 =365 =365 =71.05 days = 69.30 days =365 =365 =365 =365 =55.47 days = 52.94 days = = = =19.60 times = =14.40 times Stock Turnover(ICR) Debtor Turnover(DTR) Interest Coverage(ICR) Interpretation During the year 2011 to 2012, the working capital has decrease from 0.94:1 to 0.91:1. This means that the business ability to pay off its current liabilities with using current asset is getting better. During the year 2011 to 2012, the total debt has increase from 48.92% to 50.40%. This means that the total debt has getting worse. During the year 2011 to 2012, the stock turnover has decrease from 71.05 days to 69.30 days. This means that the business has been selling its stock faster. During the year 2011 to 2012, the debtor turnover has decrease from 55.47 days to 52.94 days. This means that the business is getting faster in getting its debt. During the year 2011 to 2012, the interest coverage has decrease from 19.60 times to 14.40 times. This means that the business its ability to pay back the interest expenses is worse. 5|Page
- 3. Appendix 1 P/E Ratio = = =21.06 The high P/E Ratio for this company will not have any investors because they have to wait for such a long time to claim back their original principal. Appendix 2: investment Recommendation Profitability: Based on our calculations, we found out that the business we chose, Nestle is doing well at controlling its profitability ratios. In 2011, Nestle was listed number 1 in the fortune global 500 as the world’s most profitable co-operation. With a market capitalization of $ two hundred and thirty three billion, Nestle ranked number 9 in the fortune global 500 of 2013. Stability: Based on our calculations, we found out that the business we chose, Nestle is doing slightly bad on controlling its total dept and interest coverage. Not only that, it is doing good on its working capital, stock turnover and deptor turnover. Price: Based on the company’s P/E Ratio, it is 21.06, it means that an investor needs to wait for a long time claim back his original principal. We would say that, we would not invest on it. 6|Page
- 5. P & L Statement for the year 2011 8|Page
- 6. Balance Sheet for the year 2011 9|Page
- 7. P & L for the year 2012 10 | P a g e
- 8. Balance Sheet for the year 2012 11 | P a g e
- 9. Reference Bursamalaysia.com. NESTLE (MALAYSIA) BERHAD [S] (4707) | Bursa Malaysia Market In-text: (Bursamalaysia.com, 2014) Bibliography: Bursamalaysia.com. 2014. NESTLE (MALAYSIA) BERHAD [S] (4707) | Bursa Malaysia Market. [online] Available at: http://www.bursamalaysia.com/market/listedcompanies/list-of-companies/plc-profile.html?stock_code=4707 [Accessed: 22 Jan 2014]. Businesscasestudies.co.uk. Introduction - Nutrition, Health & Wellness - New Product Development at Nestlé - Nestlé | Nestlé case studies, videos, social media and information | The Times 100 In-text: (Businesscasestudies.co.uk, 2014) Bibliography: Businesscasestudies.co.uk. 2014. Introduction - Nutrition, Health & Wellness - New Product Development at Nestlé - Nestlé | Nestlé case studies, videos, social media and information | The Times 100. [online] Available at: http://businesscasestudies.co.uk/nestle/nutrition-health-wellness-new-product-development-atnestle/introduction.html#axzz2r7ENaBtn [Accessed: 22 Jan 2014]. Nestle History In-text: (http://www.nestle.com, 1866) Bibliography: http://www.nestle.com. 1866. History. [online] Available at: http://www.nestle.com/aboutus/history [Accessed: 22 Jan 2014]. Nestle. Consolidated Financial Statement of the Nestle Group 2012 In-text: (Nestle, 2012) Bibliography: Nestle. 2012. Consolidated Financial Statement of the Nestle Group 2012. [online] Available at: http://www.nestle.com/assetlibrary/Documents/Library/Documents/Financial_Statements/2012-Financial-Statements-EN.pdf [Accessed: 22 Jan 2014]. 12 | P a g e
- 10. Nestle. Consolidated Financial Statement of the Nestle Group 2011 In-text: (Nestle, 2011) Bibliography: Nestle. 2011. Consolidated Financial Statement of the Nestle Group 2011. [online] Available at: http://www.nestle.com/assetlibrary/documents/library/documents/financial_statements/2011-financial-statements-en.pdf [Accessed: 22 Jan 2014]. 13 | P a g e