Nestle

Final Task in Fundamentals of accountancy, business and

management

By: Romar Montero

All of the Amounts are equal to millions of
Swiss Franc
Horizontal analysis of
balance sheet
 Amount comparison of Current Assets
35,000
32,042

30,000 29,434

25,000

20,000

15,000
12,25212,411

10,000 8,153 8,401

7,990

4,884
5,000
921 1,306 874 786 1,430
583 573 337 550 25
0
Cash and Cash Short - Term Inventories Trade and other Payment and Derivative assets Current income Assets held for Total current
Equivalents Investments receivables accrued income tax assets sale assets

2015 2016
 Percentage of Increase or Decrease
80.00
63.60 63.20
60.00
41.80
40.00

20.00
8.86
3.04 1.30
0.00
Cash and Cash Short - Term Inventories Trade and other Payment and
(1.72) Derivative assets Current income Assets held for Total current
Equivalents Investments receivables accrued income tax assets
(10.07) sale assets
(20.00)

(40.00)

(60.00)

(80.00)

(100.00)
(98.25)

(120.00)

Series 1
 Amount Comparison of Non-current Assets
120,000
99,859
100,000 94,558

80,000

60,000

40,000 32,77233,007
26,57627,554
19,23620,397
20,000
8,675 10,709 5,419 5,719
109 310 128 114 1,643 2,049
0
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2015 2016
 Increase or Decrease Percentage
200.00

150.00

100.00

50.00

0.00
en
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Series 1
 Amount comparison of Total Assets
134,000

131,901
132,000

130,000

128,000

126,000

123,992
124,000

122,000

120,000
Total Assets

2015 2016
 Amount Comparison of Current Liabilities
40,000
37,517

35,000 33,321

30,000

25,000

20,000 18,629
17,038
15,000
12,118
9,629
10,000

5,000 3,673 3,855

564 620 1,021 1,068 1,124 1,221 272 6
0
Financial Debt Trade and other Accruals and Provisions Derivative Current income tax Liabilities directly Total current
payables deffered income liabilities liabilities associated with liabilities
assets held for sale

2015 2016
 Increase or Decrease Percentage
40.00

20.00

0.00
Financial Debt Trade and other Accruals and Provisions Derivative Current income tax Liabilities directly Total current
payables deffered income liabilities liabilities associated with liabilities
assets held for sale
(20.00)

(40.00)

(60.00)

(80.00)

(100.00)

(120.00)

Series 1
 Amount comparison of Non-current Liabilities
30,000
28,403
26,685

25,000

20,000

15,000

11,601 11,091
10,000
8,420
7,691

5,000 3,865
2,601 2,640 3,063
2,387
1,729

0
Financial Debt Employee benefits Provisions Deffered tax liabilities Other payables Total non-current
liabilities liabilities

2015 2016
 Increase or Decrease Percentage
50.00

40.00

30.00

20.00

10.00

0.00
Financial Debt Employee benefits Provisions Deffered tax liabilities Other payables Total non-current
liabilities liabilities

(10.00)

Series 1
 Amount comparison of Total Liabilities
67,000

65,920
66,000

65,000

64,000

63,000

62,000

61,000
60,006
60,000

59,000

58,000

57,000
Total Liabilities

2015 2016
 Amount Comparison of Owner’s Equity
100,000

80,000

60,000

40,000

20,000

0
Share capital Treasury Shares Translation reserve Other reserves Retained earnings Total equity Non-controlling
attributable to interests
shareholders of the
(20,000) parent

(40,000)

2015 2016
 Increase or Decrease Percentage
140.00

120.00

100.00

80.00

60.00

40.00

20.00

0.00
Share capital Treasury Shares Translation reserve Other reserves Retained earnings Total equity Non-controlling
attributable to interests
(20.00) shareholders of the
parent

(40.00)

Series 1
 Amount Comparison of Total Equity
66,500

65,981
66,000

65,500

65,000

64,500

63,986
64,000

63,500

63,000

62,500
Total equity

2015 2016
 Amount of Comparison of Total Liabilities and Owner’s Equity

134,000

131,901
132,000

130,000

128,000

126,000

123,992
124,000

122,000

120,000
Total Liabilities and owner's equity

2015 2016
 Percentage of Increase or Decrease
12.00

10.00 9.86

8.00

6.38 6.38
6.00

4.00
3.11

2.00

0.00
Total Assets Total Liabilities Total Equity Total Libiabilities and Owner's Equity

Series 1
Horizontal Analysis of
Income Statement
 Amount Comparison of Balance Sheet
100,000

80,000

60,000

40,000

20,000

0
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Series 1 Series 2
200.00 Percentage of Increase or Decrease

150.00

100.00

50.00

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Series 1
Vertical analysis of
Balance Sheet
Year 2016
 0%
2% 2% 2%

Total Current Assets 25%

Cash and Cash Equivalents

Short - Term Investments
Inventories
Trade and other receivables
Payment and accrued income
Derivative assets 39%
Current income tax assets 4%
Assets held for sale

26%
 0% 2%

21%
Total Non-Current Assets
24%

Property, Plant and Equipment

Goodwill
Intangible assets
Investments in assocciates and joint ventures
Financial assets
Employee benefits assets
Current income tax assets
Deffered tax assets 4%

25%
8%

15%
 0%
3%
2% 3%

10%

Total current liabilities 32%

Financial Debt
Trade and other payables
Accruals and deffered income
Provisions
Derivative liabilities
Current income tax liabilities
Liabilities directly associated with assets held for sale

50%
 8%

14%
Total Non-current Liabilities
Financial Debt 39%
Employee benefits liabilities
Provisions
Deffered tax liabilities
Other payables
9%

30%
 1% 0% 1%

11%

1%

Owner’s Equity
Share capital
Treasury Shares 38%
Translation reserve
Other reserves
Retained earnings
Total equity attributable to shareholders of the parent
Non-controlling interests

49%
 Total Assets

Total current assets;

24.29%; 24%

Total Non-current assets;

75.71%; 76%
 Total Liabilities and Equity

Total current liabilities;

28.44%; 28%

Total Equity; 50.02%;

50%

Total Non-current
liabilities; 21.53%; 22%
Year 2015
 5%
1% 3%
2% 17%

Total Current Assets

Cash and Cash Equivalents
3%
Short - Term Investments
Inventories
Trade and other receivables
Payment and accrued income
Derivative assets
Current income tax assets
Assets held for sale

42%
28%
 0% 0% 2%
6%

9%
28%
Total Non-Current Assets
Property, Plant and Equipment
Goodwill
Intangible assets
Investments in assocciates and joint ventures
Financial assets
Employee benefits assets
Current income tax assets
20%
Deffered tax assets

35%
 1% 5%
3%
3%
2%
28%
Total current liabilities
Financial Debt 10%
Trade and other payables
Accruals and deffered income
Provisions
Derivative liabilities
Current income tax liabilities
Liabilities directly associated with assets held for sale

49%
 6%

11%

Total Non-current Liabilities

Financial Debt
Employee benefits liabilities 43%
Provisions 10%
Deffered tax liabilities
Other payables

29%
 1% 0%
4%

11%

1%
Owner’s Equity
Share capital 34%
Treasury Shares
Translation reserve
Other reserves
Retained earnings
Total equity attributable to shareholders of the parent
Non-controlling interests

49%
 Total Assets

Total current assets;

23.74%; 24%

Total Non-current assets;

76.26%; 76%
 Total Liabilities and Equity

Total current liabilities;

26.87%; 27%

Total Equity; 51.60%; 52%

Total Non-current
liabilities; 21.52%; 22%
Vertical analysis of
income statement
 Year 2016
0%
10%
1%
5%
Other revenue 1%
Cost of goods sold 0%
Distribution Expenses 1%
Marketing and administration expenses 0%
Research and development costs 1%
Other trading income
Other trading expense 0%
Other operating income 2%
48%
Other operating expense
Financial income
Financial expenses
Taxes
Income from associates and joint ventures 23%
Profit for the year

9%
 Year 2015
0%
10%
1%
Other revenue 1%
0%
4%
Cost of goods sold
1%
Distribution Expenses
Marketing and administration expenses 0%
Research and development costs 1%
Other trading income 0%
Other trading expense 2%
Other operating income
Other operating expense 49%
Financial income
Financial expenses
Taxes
Income from associates and joint ventures 23%
Profit for the year

9%
 Current Ratio of 2016 0.85:1   urrent Ratio= Current Asset
C
Current Ratio of 2015 0.88:1 Current Liabilities

Quick Ratio of 2016 0.58:1   Cash+Short TermInvestment+ShortTermReceivables

Quick Ratio of 2015 0.54:1 Quick Ratio=
Current Liabilities
Gross Profit Ratio of 0.51:1
2016   Gross Profit
G ross Ratio=
Gross Profit Ratio of 0.50:1 Net Sales
2015

Net Profit Ratio of 2016 0.10:1

  Net Profit
Net Profit Ratio of 2015 0.11:1 N et Profit Ratio=
Net Sales
Operating Ratio of 2016 0.50:1 Cost of sales+Operating Expenses
 
O perating Ratio=
Operating Ratio of 2015 0.52:1 Net Sales
 Debt to Asset Ratio of 0.50:1
2016   Total Liabilities
Debt to Asset Ratio of 0.48:1 D ebt ¿ Equity Ratio= ′
2015 Total Shareholder s Equity

Proprietary Ratio of 2016 0.50:1

  Total Shareholder ′ s Equity
Proprietary Ratio of 2015 0.52:1 P roprietary Ratio=
Total Assets

Debt to Equity Ratio of 1:1

2016   Total Liabilities
Debt to Equity Ratio of 0.93:1 D ebt ¿ Equity Ratio= ′
2015
Total Shareholder s Equity