FIN430 - Company Ratio Analysis PDF

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I N T R O D U C T I O N T O C O R P O R A T EF I N A N C E (F I N 4 3 0 )COMPANY RATIO PERFORMANCEPREPARED BY:NUR NADIA IZZATY BINTI SUHAIDI 2019725833SITI AISHAH BINTI JAMALULLAIL 2019555215MUHAMMAD EZHZAIDY BIN ABD SAMAD 2019728221MUHAMMAD ANUAR BIN MD ALI 2019542023MUHAMMAD AZRUL NAIM BIN AZHAR 2...

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PREPARED BY: NUR NADIA IZZATY BINTI SUHAIDI 2019725833 SITI AISHAH BINTI JAMALULLAIL 2019555215 MUHAMMAD EZHZAIDY BIN ABD SAMAD 2019728221 MUHAMMAD ANUAR BIN MD ALI 2019542023 MUHAMMAD AZRUL NAIM BIN AZHAR 2019722649

PREPARED FOR: MADAM ZAIBEDAH BINTI ZAHARUM

We are the leading Nutrition, Health and Wellness Company. We enhance lives with science-based nutrition and health solutions for all stages of life, helping consumers care for themselves and their families. With our Nutrition, Health and Wellness strategy we support people who want to live a healthier lifestyle. The Nestlé Strategic Roadmap is the compass that guides our organisation. Our features and Insight blog posts (perspectives from our people) tell the story of our business, as we create shared value for society through sciencebased innovation, respect for people and the environment. More than 150 years of good, good life. Since 1866, we`ve provided innovation, science-based products to enhance the quality of life. Quality and safety is our number one priority. Responsible sourcing our code for suppliers. The Annual Report contains Nestlé’s Annual Review, Nestlé’s Corporate Governance Report and Financial Statement.

Nestle is the world’s leading nutrition, health and wellness company. Their mission of “Good Food, Good Life” is to provide consumers with the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions, from morning to night.

Nestle vision is to be leading, competitive, Nutrition, Health and Wellness Company delivering improved shareholder value by being a preferred corporate citizen preferred employer preferred supplier selling preferred products.

Y.A.M Tan Sri Dato Seri Syed Anwar Jamalullail Chairman of the Board of Directors

Dato Mohd Rafik Bin Shah Mohamad Chairman of the Audit Committee

Tan Sri Datuk (Dr.) Rafiah Binti Salim Member of the Audit Committee

Dato Frits Van Dijk Member of the Nomination and Compensation Committee

MAT KOOL Panda

NESTLÉ CHEERIOS Oat Crisp

NESTLÉ JUST MILK

MAGGI OatMee

Nestle Malaysia Berhad Statement of Financial Position as at 31 December 2017

Nestle Malaysia Berhad Statement Profit or Loss for the year ended 31 December 2017

Nestle Malaysia Berhad Statement of Financial Position as at 31 December 2018

Nestle Malaysia Berhad Statement Profit or Loss for the year ended 31 December 2018

COMPANY RATIO

Graph 1: Current Ratio

Graph 2:Quick Ratio It shows the liquidity ratio for Nestle Malaysia Berhad in year 2018 has better and worse compared with year 2017. Which are the current and quick ratio in year 2018 is better. It means the company are able to pay short term loan and easy to get in short term loan. But for the net working capital ratio in year 2018 is bad. It means that the company has more current liability than current asset.

Graph 3: Net Working Capital

Graph 4:Inventory Turnover

Graph 5:Average Collection Period

Graph 6:Fixed Asset Turnover

Graph 7: Total Asset Turnover

It shows the activity ratio for Nestle Malaysia Berhad in year 2018 has good and bad. Which are the average collection period ratio in year 2018 is better because it remained the same with year 2017. It means the company maintained in collecting debt in short period. While total asset turnover is also good in year 2018 than year 2017. It means the company effective in using all of its assets. But for the inventory turnover and fixed asset turnover in year 2018 is bad because the company do not efficient maintains little inventory and also the company lower uses in asset than year 2017.

Graph 7:Gross Profit Margin

Graph 8:Net Profit Margin

Graph 9:Return on Assets

Graph 10:Return on Equity

It shows the profitability ratio for Nestle Malaysia Berhad in year 2018 has better and bad compared with year 2017. Which ate the net profit margin and gross profit margin ratio is good. It means the company are able to control low operating expenses and good pricing strategies and also the company is efficient in controlling its COGS in year 2018. But for return on assets and return on equity ratio is bad. It means the company do not efficient in its asset utilization and also the company do not accept strong investment.

Graph 11:Debt Ratio

Graph 12: Debt to Equity

Graph 13:Time Interest Earned

It shows the leverage ratio for the Nestle Malaysia Berhad has good and poor in year 2018 than year 2017. Which are the debt to equity ratio is good in year 2018. It means the company has less relies on long term creditors supplies fund. But for the debt and time interest earned is poor in year 2018. It means the company higher risk of bankcruptcy and not able to pay interest on debt.

Graph 14: EPS

Graph 15:Price Earning Share

It shows the Market Ratio for Nestle Berhad for 2018 has better performance than 2017 because of higher eps which mean better income per share and hire price to earning mean that the firm’s market price is overvalued...