ANALYSIS & FINANCIAL STATEMENTS

Nestle’s fiscal year always ends in the end of December. The following results have been collected and following
graphs have been drawn and interpretations drawn:

1. ASSET GROWTH:

Assets Growth
35,000,000

30,000,000

25,000,000

20,000,000

15,000,000

10,000,000

5,000,000

0
Property & capital work Cash intagible Adv & other Stores and Stock in loan and sales tax
Equip assets recivables spares trade advances refundable

2016 2017 2018 2019

 TOTAL ASSETS:

YEAR 2016 2017 2018 2019

 Total Assets 50,781,770.00 58,345,619.0 67,160,011.00 65,273,408.00
0

Percentage Growth --------------- 14.89% 15.10% (2.80%)

YEAR 2016 as BASE 2017 2018 2019

YEAR

Total Assets 50,781,770.00 58,345,619.0 67,160,011.00 65,273,408.00

0

Percentage Growth --------------- 14.89% 32.25% 28.53%

The total assets (current and non-current) increased year by year as per company growth as mention in the
table above, while taking 2016 as base year as we can see that in 2017 company as got up to by 14.89% and in
2018 company assets got 32.25% as compare to 2016 assets, and in 2019 company assets got up to 28.53%,
which are far better but as we marked matched 2019 assets with the previous year, eventually company assets
got decreased up to 2.80% which means in just 2019 company assets got decreased in case if we compare them
with the previous year (2018) but as we matched 2019 assets with 2016, company assets got up high in the sky

 ASSETS STRUCTURE:

Assets Structure

80,000,000

70,000,000

60,000,000

50,000,000

40,000,000

30,000,000

20,000,000

10,000,000

0
Total Assets

2016 2017 2018 2019

The current resources structure a noteworthy part of the complete resources as Nestle organizations try
not to have part of Non-Current resources. Inventories structure a significant segment of the current
resources throughout the years, adding is normal. Inventories are esteemed at the lower of cost and net
feasible worth. Cost is figured on a weighted normal premise. The level of exchange receivables has been
expanding slightly throughout the years demonstrating the organization isn't giving much using a loan. In
the non-current resources, long haul credits have not changed altogether. Money and bank balance have
been expanding and squeezing on a normal of 60% to 55%.

2. TOTAL LIABILITIES:

YEAR 2016 2017 2018 2019

Total Liabilities 50,781,770.00 58,345,619.0 67,160,011.00 65,273,408.00

0

Percentage Growth --------------- 14.89% 15.10% (2.80%)

 Absolute Liabilities have diminished throughout the years demonstrating a development of 14.89% in the
year finishing 2017 if we matched total liabilities with base year 2016. The development has been increased
by 0.21% for the year finishing 2018 as compared to previous year 2017, but loss began to increased by
(2.80%) before the finish of 2019 as compared to 2018.

 OWNERS EQUITY:

Equity Growth During Years

10
9
8
7
6
5
4
3
2
1
0
Owner Equity (MILLION)

2016 2017 2018 2019

Absolute Equity has diminished throughout the years. Out of the liabilities and Equity, exchange payables
structure a significant part adding to over 2.1% throughout the years from 2016 to 2017, etc in 2018 till 2019
the payable obligations got increment and proprietors' value fall up to 0.4%, yet in the event that we allotted
2016 to 2017 proprietors' value and contrasted it with 2018 with 2019 proprietors' value and complete, the
outcome would be certain that Nestle control its proprietors value fall up to 1.7%. Long haul arrangements
incorporate Provision for representative advantages (annuity, clinical, remunerated nonattendances and
others). Arrangement for annual assessment (net of advance expense) and different arrangements (counting
for legal tolls and so forth.

3. FINANCIAL STRUCTURE ANALYSIS

 FINANCIAL STRUCTURE
35

30

25

20

15

10

0
Shares Fund Long Terms Debts Current Liabilities Payables

2016 2017 2018 2019

In the period 2016 – 2017, Nestle Shareholders fund got decreased, debts got increased, and current
liabilities and payables got decreased in compare with previous year 2016, which denotes its weak financial
stability. Nestle is able to finance its operations with both Current & Other Current Liabilities but in the main
form of Trade Payables. The company made provisions for Long term under Long term Provisions.

In the period 2018, Nestle Shareholders fund got increased, but also debts, current liabilities and payables
got increased in compare with previous year 2017, which makes Nestle company more unstable and
devasted its financial structure.

In the period 2019, Nestle Shareholders fund got decreased, but also debts, & payables got decreased in
compare with previous year 2018, which makes Nestle company slightly stable in its financial structure, but
during the period current liabilities increased, but somehow NESTLE potentially successfully demolished its
previous position in which they fall into weak position.

4. PROFIT AND LOSS RATIOS:

 INCOME STATEMENT GROWTH:

INCOME GROWTH
140,000,000

120,000,000

100,000,000

80,000,000

60,000,000

40,000,000

20,000,000

0
Sales Net Income Gross Profit Income After Tax Cost Of Goods

2016 2017 2018 2019

 REVENUE:
During the analysed period the amount of Total Revenues increased successively till 2019 in base year of
2016, which showed a positive trend but there was a sharp decline in 2019 and 2018 if we compare both of
them with previous year markup. The net sales increase was high in 2017 which was 5% and there after it
followed a slower increase growth of 1%, 2.5%, to negative.

 COST OF GOODS SOLD:

The COGS growth was 2.5% in 2017 & till 2019 the growth was very sufficient and effective; the growth was
15% and then gained up to more positive 25% in 2019 which is mainly because of consumers attention over
sales. Means, company’s sales going upwards in market during periods of 4 years.
 GROSS INCOME:

The Gross income was high initially in 2017 which was 2.5% and then the growth was less and went low in
2018 which was only 3% and finally followed a similar pattern of Revenues & COGS and declined to 2.5% in
2019 in compare of 2018.

 EARNING AFTER TAXES:

Earnings After Interest, Taxes, Depreciation and Amortization increased from 2010 till 2019 with slower
growth rate but declined tremendously in 2019 which went above in 2016 from 11,846,973 million to 2017
from 14,641,782 million, and in 2018 earning fall and come on the level of 11,611,599 million, and in 2019
earnings after tax of nestle was 7,354,467 million.

 TOTAL NET INCOME AND GROWTH:

The total growth and income of the company goes upwards and downwards during the periods of
four years as mentions in the chart above, as the sales of the company keep gaining positive
position in the market, but on the other hand company profit gain 25% more in 2017 in compare of
previous year 2016, but eventually after 2017, the ahead year of 2018 and 2019 companies sales
gone down in compare of 2017 but as we compare sales with the base year 2016, the sales of the
company were still in profit. Which shows company stability in product line market.

Because of sales graph gone down from up, the gross profit of the company also got effected, and
the chart of gross profit goes negative after the year of excellence 2017. And so on everything of
the company got effected if we calculate net income of the 4 years. Only in 2017 company was in
good position, but so on afterwards company face huge loss/debt and its profit graph got devasted,
but have some little stable position cause of sales.