Download - 24 - Ruchika Singh -Nestle
-
8/8/2019 24 - Ruchika Singh -Nestle
1/44
OVERVIEWNestle India is a subsidiary of Nestle S.A. of Switzerland. Nestle India manufactudishes & cooking aids, and chocolates & confectionary. Some of the famous braNESTEA, NESTLE Milk, NESTLE SLIM Milk, NESTLE Fresh 'n' Natural Dahi and NESHISTORY
Nestle was founded in 1867 in Geneva, Switzerland by Henri Nestle. Nestle's firAnglo-Swiss Condensed Milk Company. Nestle's relationship with India started 1Limited, importing and selling finished products in the Indian market.
Today, Nestle is the world's largest and most diversified food company. It has arcountries and offers over 8,000 products to millions of consumers universally.
NESTLE INDIAAfter independence, in response to the then economic policies, which emphasizup its first factory in 1961 at Moga, Punjab, where the Government wanted Nestbasic farming and animal husbandry practices such as increasing the milk yieldmanagement practices etc. Nestle set up milk collection centres that ensured pand vibrant milk district.
PROGRESSNestle India Limited has grown over the years into the most desired brand in thexpectations of the Indian government in bringing a marked change in the milkimprove the milk yield. Nestle India Limited gave directions to the farmers in inirrigation. The company proposed the set up of centers that not only catered toNestl has been a partner in India's growth for over nine decades now and hasCompany's activities in India have facilitated direct and indirect employment anpackaging materials, services and other goods.Nestl India is a responsible organization and facilitates initiatives that help to i
-
8/8/2019 24 - Ruchika Singh -Nestle
2/44
res a variety of food products such as infant food, milk products, beverages, preparedds of Nestle are NESCAFE, MAGGI, MILKYBAR, MILO, KIT KAT, BAR-ONE, MILKMAID,
TLE Jeera Raita.
t product was "Farine Lactee Nestle", an infant cereal. In 1905, Nestle acquired the912, when it began trading as The Nestle Anglo-Swiss Condensed Milk Company (Export)
ound 2,50,000 employees worldwide, operated 500 factories in approximately 100
ed local production, Nestle formed a company in India, namely Nestle India Ltd, and setle to develop the milk economy. In Moga, Nestle educated and advised farmers regardingof the cows through improved dairy farming methods, irrigation, scientific cropompt collection and paid fair prices. Thus, Nestle transformed Moga into a prosperous
food and beverage sector in India. The company has succeeded in meeting theindustry through its suggestion on latest dairy farming techniques and upkeep of cows toorporating the advanced technological methods with regard to crop maintenance andthe storing and selling of milk, but also maintained contacts with the farmers.uilt a very special relationship of trust and commitment with the people of India. The
d provides livelihood to about one million people including farmers, suppliers of
prove the quality of life in the communities where it operates.
-
8/8/2019 24 - Ruchika Singh -Nestle
3/44
-
8/8/2019 24 - Ruchika Singh -Nestle
4/44
-
8/8/2019 24 - Ruchika Singh -Nestle
5/44
-
8/8/2019 24 - Ruchika Singh -Nestle
6/44
-
8/8/2019 24 - Ruchika Singh -Nestle
7/44
-
8/8/2019 24 - Ruchika Singh -Nestle
8/44
-
8/8/2019 24 - Ruchika Singh -Nestle
9/44
-
8/8/2019 24 - Ruchika Singh -Nestle
10/44
-
8/8/2019 24 - Ruchika Singh -Nestle
11/44
-
8/8/2019 24 - Ruchika Singh -Nestle
12/44
-
8/8/2019 24 - Ruchika Singh -Nestle
13/44
-
8/8/2019 24 - Ruchika Singh -Nestle
14/44
-
8/8/2019 24 - Ruchika Singh -Nestle
15/44
-
8/8/2019 24 - Ruchika Singh -Nestle
16/44
-
8/8/2019 24 - Ruchika Singh -Nestle
17/44
-
8/8/2019 24 - Ruchika Singh -Nestle
18/44
-
8/8/2019 24 - Ruchika Singh -Nestle
19/44
-
8/8/2019 24 - Ruchika Singh -Nestle
20/44
-
8/8/2019 24 - Ruchika Singh -Nestle
21/44
-
8/8/2019 24 - Ruchika Singh -Nestle
22/44
-
8/8/2019 24 - Ruchika Singh -Nestle
23/44
CURRENT RATIOYear Current Asset
2004 3,639,992
2005 3,581,752
2006 5,353,738
2007 6,378,5412008 7,979,532
WORKING CAPTIAL RATIOYear Cost of Sales
2004 22,275,739
2005 24,769,0102006 28,160,646
2007 28,160,646
2008 35,043,532
QUICK RATIOYear Quick Asset
2004 3639992
2005 3581752
2006 5353738
2007 6378541
2008 7979532
DEBTORS TURNOVER RATIOYear Net Credit Annual Sales
2004 22,275,739
2005 24,769,010
2006 28,160,646
2007 35,043,532
2008 43,242,450
-
8/8/2019 24 - Ruchika Singh -Nestle
24/44
Year Total Trade Debtors
2004 5787002005 566930
2006 862816
2007 1092470
2008 990834
CREDITORS TURNOVER RATIO
Year Net Credit Annual Purchases2004 324239
2005 282971
2006 267906
2007 346,677
2008 502,268
AVERAGE PAYMENT PERIODYear Total Trade Creditors
2004 5022858
2005 5826939
2006 6861593
2007 8222328
2008 9573743
GROSS PROFIT RATIOYear Gross profit
2004 38,64,931
2005 46,90,574
2006 48,05,239
2007 62,86,138
2008 77,28,268
AVERAGE COLLECTION PERIOD
-
8/8/2019 24 - Ruchika Singh -Nestle
25/44
NET PROFIT RATIO
Year Net profit
2004 25,19,158
2005 30,95,715
2006 31,50,965
2007 41,38,122
2008 53,40,882
RETURN ON EQUITYYear Profit after tax
2004 25,19,158
2005 30,95,715
2006 31,50,965
2007 41,38,122
2008 53,40,882
EARNINGS PER SHAREYear Profit after tax
2004 25,19,158
2005 30,95,715
2006 31,50,965
2007 41,38,122
2008 53,40,882
PRICE EARNING RATIOYear Market price
2004 589
2005 955
2006 1122
-
8/8/2019 24 - Ruchika Singh -Nestle
26/44
2007 1422
2008 1397
RETURN OF GROSS CAPITAL EMPYear Adjusted net profit
2004 25,19,158
2005 30,95,715
2006 31,50,965
2007 41,38,122
2008 53,40,882
DEBT EQUITY RATIOYear Secured + Unsecured loans
2004 7,49,157
2005 9,88,056
2006 10,51,369
2007 11,61,883
2008 12,27,983
INTEREST COVERYear Profit before interest and tax
2004 38,64,931
2005 46,90,574
2006 48,05,239
2007 62,86,138
2008 77,28,268
-
8/8/2019 24 - Ruchika Singh -Nestle
27/44
Current Liabilities Current Ratio
4,923,285 0.74
6,182,349 0.58
7,688,725 0.70
9,577,693 0.6711,839,651 0.67
Net working capital Working capital turnover ratio
-2,600,597 -9
-2,226,330 -11-2,334,987 -12
-3,199,152 -9
-3,860,119 -9
Current Liabilities Quick Ratio
4,923,285 0.74
6,182,349 0.58
7,688,725 0.70
9,577,693 0.67
11,839,651 0.67
Average Trade debtors Debtors Turnover Ratio
289,350 76.986
283465 87.379
431408 65.276
546235 64.155
495417 87.285
-
8/8/2019 24 - Ruchika Singh -Nestle
28/44
Sales per Day Average Collection Period
0.211 2743702.144.177 135720.6
5.592 154304.91
5.689 192019.35
4.182 236944.93
Average Trade crditors Creditors Turnover Ratio2511429 0.1291
2913469.5 0.0971
3430796.5 0.0781
4111164 0.0843
4786871.5 0.1049
Average Daily Purchase Average Payment Period
888.33 5654.3
775.26 7516.08
733.99 9348.36
949.8 8656.9
1376.08 6957.27
Net sales Gross Profit Ratio
2,22,75,739 0.17
2,47,69,010 0.19
2,81,60,646 0.17
3,50,43,532 0.18
4,32,42,450 0.18
-
8/8/2019 24 - Ruchika Singh -Nestle
29/44
Net sales Net Profit Ratio
2,22,75,739 0.11
2,47,69,010 0.13
2,81,60,646 0.11
3,50,43,532 0.12
4,32,42,450 0.12
Average shareholders' equity Return On Equity
32,72,012 0.77
33,67,701 0.92
37,15,106 0.85
40,36,560 1.03
44,58,869 1.2
Weighted average number of Equity Shares Earnings Per Share
9,64,15,716 0.03
9,64,15,716 0.03
9,64,15,716 0.03
9,64,15,716 0.04
9,64,15,716 0.06
Earnings = PAT/No. of shares Price Earning Ratio
26.13 22.54
32.11 29.74
32.68 34.33
-
8/8/2019 24 - Ruchika Singh -Nestle
30/44
42.92 33.13
55.39 25.22
OYEDGross capital employed Return Of Gross Capital Employ
95,01,672 0.27
95,91,981 0.32
1,19,31,839 0.26
1,40,66,619 0.29
1,69,50,135 0.32
Equity Debt to Equity Ratio
31,94,070 0.24
35,41,333 0.28
38,88,879 0.27
41,84,241 0.28
47,33,497 0.26
Interest expense Interest Cover
7822 494
2122 2210
4408 1090
8545 736
16,430 470
-
8/8/2019 24 - Ruchika Singh -Nestle
31/44
2004 2005 2006 2007
0.00
0.20
0.40
0.60
0.80
Current Ratio
Column D
2004 2005 2006 2007 2
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
Quick Ratio
Quick Ratio
2004 2005 2006 2007 2008
-14
-12
-10
-8
-6
-4
-2
0
Working capital turnover ratio
Working capitalturnover ratio
2004 2005 2006 2007
0.000
20.000
40.000
60.000
80.000
100.000
Debtors Turnover Ratio
Debtors TurnRatio
-
8/8/2019 24 - Ruchika Singh -Nestle
32/44
2004 2005 2006 2007
0
500000
1000000
1500000
2000000
2500000
3000000
Average Collection Period
AverageCollection Peri
2004 2005 2006 2007
0.0000
0.0200
0.0400
0.0600
0.0800
0.10000.1200
0.1400
Creditors Turnover Ratio
CreditorsTurnover Ratio
2004 2005 2006 2007
0
2000
4000
6000
8000
10000
Average Payment Period
Average PaymPeriod
-
8/8/2019 24 - Ruchika Singh -Nestle
33/44
-
8/8/2019 24 - Ruchika Singh -Nestle
34/44
ed
-
8/8/2019 24 - Ruchika Singh -Nestle
35/44
2008
08
2008
ver
-
8/8/2019 24 - Ruchika Singh -Nestle
36/44
2008
d
2008
2008
ent
-
8/8/2019 24 - Ruchika Singh -Nestle
37/44
-
8/8/2019 24 - Ruchika Singh -Nestle
38/44
-
8/8/2019 24 - Ruchika Singh -Nestle
39/44
-
8/8/2019 24 - Ruchika Singh -Nestle
40/44
-
8/8/2019 24 - Ruchika Singh -Nestle
41/44
-
8/8/2019 24 - Ruchika Singh -Nestle
42/44
INTERPRET
A) Current Ratio
better the coverage. Generally 2:1 ratio is generally accepted. BuAnd it is more than 2 in the years 1998-99. 1999-00, 2001-02. T
enough to meet its liabilities.
B) Quick Ratio
Quick ratio is a better form of the CURRENT RATIO which exclude
cash in short period, like inventories. Its value for reliance has aC) Absolute Ratio
This ratio is the acid test ratio, which tells how much current liabalso satisfactory, around 0.70 except in the years 2002-03 and 2
D) Debtors Turnover Ratio
Debtors turnover ratio represents the speed at which cash is realthe company. Overall the value of this ratio has been over 16 tim
E) Collection PeriodThis ratio represents the number of days required to realize cashOverall this value has been above 11.
F) Inventory Turnover
This ratio indicates that how fast inventories is used or sold. A hi
versa. Here, the value of this ratio has been around 6. It has bee
-
8/8/2019 24 - Ruchika Singh -Nestle
43/44
INTERPRET
INTERPRET
G) Inventory period
It is a representation of the inventories turnover ratio in the num
turnover represents the total accounting cycle. It has always bee
highest of 52 days in the year 2002-03.
A) DEBT EQUITY RATIO
This ratio indicates proportion of owners fund to total funds inve
the business is risky. Whereas a low ratio indicates that the utilizcompany. In case of Reliance, its debt-equity ratio is very high.
and even 0.8, which shows the riskiness of the business in this yReliance.
B) INTEREST COVERAGE RATIO
This indicates the extent to which, earnings may fall without caus
Charges, this ratio is very low for Reliance, which is because a la
This ratio has improved in the later years, but is still very low.
-
8/8/2019 24 - Ruchika Singh -Nestle
44/44
INTERPRET
A) NET PROFIT RATIO
It indicates the firms capacity to face adverse economic conditio
higher profitability. It around 13 in the later years. Even initially
B) RETURN ON EQUITY
This ratio is more meaningful to the equity shareholders who are
profiles that can be made available. The higher the ratio, the bemiddle years, the ration is showing that is again got well in the la
C) RETURN ON CAPITALThis ratio is the most important for measuring the overall efficien
company. It should be compared with those of the other firms. H
good for the firm like Reliance.
A) Price Earnings Ratio
This indicates the expectation of equity investors about the earniearnings are they ready to pay for the share. It has generally abo
B) Price to Book Ratio
This ratio indicates the ratio of market price with book value of th
expectation of the shareholders. Price to Book ratio has been aro