Nestle Financial Statement Analysis: Profitability, Liquidity and Activity Ratios

Assignment 2 Nestle group
1

AC4410 Accounting and Finance
Contents
Company overview....................................................................................................................3
Ratio and analysis......................................................................................................................4
Nestle financial statement analysis from year 2013 to 2016.....................................................5
Profitability Ratios....................................................................................................................5
Liquidity Ratios.........................................................................................................................6
Activity Ratios...........................................................................................................................7
Conclusion.................................................................................................................................9
Bibliography............................................................................................................................10
Appendix.................................................................................................................................11
2

AC4410 Accounting and Finance
Company overview
Nestlé SA is a Swiss multinational food and beverage company based in Vevey
Switzerland. It is currently considered as the largest food company in the world according to
the revenue realised within the financial years 2014-2016. It has obtained 72nd rank in
Fortune Global 500 in 2014 and also got 33rd place in the 2016 edition of Forbes Global
2000. This list was developed for recognition of the largest public companies in the world (J.
Chris Leach, 2016).
Nestlé's products include baby food, medical food, bottled water, breakfast cereals,
coffee and tea, confectionery, dairy products, ice cream, frozen foods, pet food and snacks.
Twenty-nine of Nestlé's brands have annual sales of over 1 billion Swiss francs (about $ 1.1
billion). The list of most popular Nestle brands includes Maggi, Nescafe, Kit Kat,
Smarties,Nesquik, Stouffer's, Vittel and Nespresso. Nestlé is currently operating in 194
countries with 447 factories.It is currently employing about 339,000 people. It is also one of
the major shareholders of L'Oréal, the largest cosmetics company in the world.
3