Strategies to Improve Financial Performance of Reckitt Benckiser (RB)
Added on 2019-12-28
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Financial Analysis
Table of ContentsINTRODUCTION................................................................................................................................3RATIONALE .......................................................................................................................................3PERFORMANCE ANALYSIS ...........................................................................................................4Summary of the analysis..................................................................................................................7LIMITATIONS.....................................................................................................................................7CONCLUSION ...................................................................................................................................8RECOMMENDATION .......................................................................................................................9REFERENCES...................................................................................................................................10
INTRODUCTIONReckitt Benckiser is a multinational organisation headquartered in London. It producesconsumer goods in the area of hygiene, health and home care. It was formed in 1999 by a merger ofReckitt & Colman plc and Benckiser NV. The company visions to make the lifestyle of peoplebetter and healthier. Reckitt Benckiser i.e. RB wants to make a difference in the lifestyle ofconsumers by generating innovative alternatives for them. It is among the most fast pace growingcompany in the world. In the year 2014 particularly RB has generated greater performance. Thiswas achieved by a purpose driven strategy to enhance revenue and sales for the company. Thepurpose of this report is to conduct a study on the financial rations of the company (Uechi and et.al.,2015). RB is selected for the project as operates around 60 countries and have vast internationalpresence. Study and comparison of financial ratios is done in order to identify competencies of thecompany over the competitors. Financial analysis consists of evaluating figures acquired fromprofitability, debt paying ability, liquidity, efficiency and various other factors. The report discussesabout viability, profitability and stability of Reckitt Benckiser over a span of five years. Thus, inorder to do that financial figures ranging from 2010-2012 are assessed and analysed. RATIONALE Globalization today has reached to a new height. RB wants to create new products andprovide better services to the consumers. In order to that company have formulated variousstrategies over the time. Some of them have proved to be beneficial and raised profitability for thecompany. On the other hand, at many instances company failed to achieve desired financial figuresat the end of the year. Reckitt Benckiser is a big name in the United Kingdom as well as otherinternational markets. It is among the leading organisation that manufactures wide variety ofconsumer goods for the public. This company is selected for the research as it is a widelyproclaimed brand and has created various benefits for the economy of UK as well. The mainproducts are classified under health, home and hygiene. The company has brought great innovationsin the field of pharmaceuticals as well. This company is selected for ratio analysis as it generateshuge revenues and profits. It is important to analyse these ratios to identify the true financialposition of RB in the consumer good industry (Brigham and Ehrhardt, 2013). The rising pressure ofcompetition and pricing strategies of the companies has created greater pressure for Rb to operateits business prospects. Company has made profits and incurred losses in many quadrants as well.RB is responsible to shape the economy of United Kingdom by raising its standard to internationalboundary. The company is known to provide employment to thousands of individuals in the UnitedKingdom itself. Thus, it is viable to select this company in order to evaluate the financial aspectsand money making strategies of the company. Although the company has a good goodwill in the
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