FINANCIAL STATEMENT ANALYSIS ASSIGNMENT

PRESENTED BY : RAHUL RADHEY KRISHNA

1: COMPARATIVE ANALYSIS OF NESTLE COMPANY :-

Interpretation :
In the given balance sheet under equities and liabilities we can see that there
is no change in equity share capital , it remains same in the year 2017 as well
as in 2018 that is 96.42 crores . The reserves and surplus has overall increased
by 253.15 crores from 3324.17 cr. to 3577.32 cr. . Under non-current liabilities,
long-term borrowings has been same in both the year , deferred tax liabilities
has reduced by 63.14 cr. , and long-term provisions has shown an increment of
173.33 cr. Overall the total Non-Current liabilities has increased by 362.24 cr.
Overall , the total equities and liabilities has increased by 725.50 cr. in the year
2018 , which means that the company has more liabilities than the year 2017
and is liable to pay more to their shareholders .

Under , assets part , the total non-current assets has shown a decrement of 74
cr. and under the Current assets , current investments has overall increased by
531.5 cr. , inventories has increased by 63 cr. , trade receivables , cash & cash
equivalents and other current assets has also shown the increment in the year
2018 . The total assets has overall increased by 725.5 cr. which will be
beneficial for the company in the long run . The total asset has shown an
increment of 9.85 % so that the company can pay off its liabilities .
2: RATIO ANALYSIS OF NESTLE COMPANY

a) Current ratio = current asset / current liabilities

= 4763.98 / 1854.95
= 2.568 : 1 (SATISFACTORY)

b) Quick ratio = quick assets(CA-inventory) / QL(or) CL

= 3798.43 / 1854.95
= 2.047 : 1

c) Absolute cash ratio = cash & cash equivalent / CL

= 1610.06 / 1854.95
= 0.867 : 1

d) Debt to equity ratio= LT debts / sh. Holders funds

= 2559.39 / 3673.74
= 0.696 : 1 (company has a
certain amount of debt compare to its equity)

e) Debt to total capital ratio

= LT debts / (Total assets)
= 2559.39 / 8088.08
= 0.316 : 1

f) Proprietary ratio
= share-holders funds/(total assets-tangible F.A.)
= 3673.74 / (8088.08-2400.62)
= 0.645 : 1
g) F.Assets to net worth ratio(sh. Holders worth)
= (F.Assets *100)/net worth
= 3351.13*100 / 3673.74
= 0.912*100 = 91.2%

h) F.Assets to long term debt ratio

= (F.A *100)/Long term debts
= 3351.13*100 / 2559.39
= 130.93%

i) Ratio of C.A. to F.A. = 4736.95 / 3351.13

= 1.413 : 1

j) Inventory to working capital ratio

= inventory / (CA – CL)
= 965.55 / (4763.98 - 1854.95)
= 0.331 : 1

k) Current liability to total asset ratio = C.L. / T.A.

= 1854.95 / 8088.08
= 0.229 : 1

l) Current assets to total assets ratio = C.A. / T.A.

= 4763.98 / 8088.08
= 0.589 : 1