Notes :-

Financial Ratio’s
I will elaborate on the financial ratios of Unilever co.
Profitability ratios:-
 If we see the slide it shows that the Gross Margin in 2020 is 17.90%
whereas in 2019 it was 16.75% an increase of 1.15% which indicates that
the company has greater efficiency in turning raw material into income .
 The profit margin has increased by almost 2 % .
 Cash flow margin is decreased by 3.62% which is because of very high
inflation in raw materials ,packaging and distribution costs .
 Return on assets , return on equity and return on capital is the same as last
year which is 2021 which basically means that the company is still receiving
the same return on asset per dollar ,the shareholder’s are receiving 42% of
the total profit earned and the return on capital is almost 28% for the two
consecutive years 2022 and 2021.
Liquidity ratios :-
 If we compare with last year the current ratio has increased by 5% but it’s
still not a good sign because our company does not have the ability to meet
short -term debts entirely.
 Quick ratio of our company Unilever is 50% but in general it’s 1 is an ideal
percentage which shows our companies liability to meet it’s current
obligations .
 In comparison with 2021 data the asset turnover ratio has increased by 5%
which implies that our company Unilever has become more efficient to
generate their income with the help of their assets.
Leverage ratios :-
 Debt-to-equity ratios of Unilever is 1.55% in 2022 which has been the
case because of major changes in the industry around but if we
compare with 2018 data it has astronomically increased.
 Our current EBITDA shows that the company is managing its debt load
and has very low risk of bankruptcy .
  Unilever’s debt -to-cash ratio is 3.38% which is because of the smooth
operating cashflow of the organization.

VRIO analysis of unilever

1. Track record of leadership – as the track record is well managed and hence
it can’t be imitated by competitors
2. Customer network and loyalty :- Due to product quality and price
allocation ,customers tend to become loyal to our products which
contributes to 84% revenue.
3. Marketing expertise:- Yes, our company has a well- planned marketing
strategy but at the same time our competitors have good marketing
strategy
4. Pricing strategy are regularly imitated in the industry.
5. Successful implementation of digital strategy can still be improve to utilize
the excellent sales force. n provide sustainable competitive advantage.
6. Product Portfolio and Synergy among Various Product Lines- Provide short
term advantage but requires constant innovation.

SWOT :-
S- Has a powerful retail network ,is widespread globally .
W- Pricing pressure due to lot of competitors, highly depended on retailers like
Walmart, rcs
O- Invest in new technology and develop more health-friendly goods
T- Changes in consumer preference and increase competition .