ratio analysis bf final project

7/25/2019 Ratio Analysis BF Final Project

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Business Finance Final Project

Ratio Analysis

Of

Food Industry

Group Members:

MUZZAMIL SHAKIR 12046005107

MUQADDAS ARSHAD 15011030003

ARSAL QAZI 114405033

SYED MESAM ABBAS 110354011

AHSAN MASUD 110354003

Submitted to:

Miss Safia Nosheen


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Introduction of food industry

In our fin! "ro#$%& '$ %(oo)$ foo* in*u)&r+ &($r$ in%!u*$* f)& foo* %o,"ni$) n* B$-$r.$

/o,"ni$) n* '$ %o-$r !! &($ r&io) '(i%( '$ *i)%u)) in our %our)$ n* &r+ &o %o-$r !! &(o)$

r&io) /o,"ni$) &(& I %(oo)$ for &($ r&io n!+)i) r$

1. Nestle

2. PepsiCo

3. Coe

!. Mc"onalds

($r$ in%!u*$ )o,$ f)& foo*) n* #un foo*) %o,"ni$) n* )o,$ $-$r.$) %o,"ni$) &($r$

r&io) r$ in &($ fo!!o'in. In r&io n!+)i) '$ %!%u!&$ !! &($ -!u$) n* &r+ &o %o-$r !! r&io)

Small Introduction of companies

Nestle

N$)&! i)&n o"$r&$) in ,n+ '+) u& "$o"!$ "ro*u%&) n* rn*) r$ &($ ,in f!. $r$r)

of &($ /o,"n+) i,.$ n* '$ %on&inu$ &o $n(n%$ &($ 8u!i&+ of !if$ of "$o"!$ of i)&n

(i) i) )i%!!+ foo* .$n$r&in. %o,"n+ &($r$ r$ ,u!&i"!$ "ro*u%& of n$)&!$ n* i& i)

,u!&in&ion! %o,"n+ '(i%( "ro*u%$ .oo*) n* )$r-i%$ n* *$!i-$r &o &($ %on)u,$r &(rou.(

"ro"$r %(nn$! + )u""!+ %(in ($ir "ro*u%& r$ $n!i)&$* $!o'

o A,i$n& Dir+

o /(i!!$* Dir+

o 9ui%$)

o Bo&&!$* '&$r

o /u!inr+ : ;oo*)

o B+ ;oo*)

o Br$f)& /$r$!)

o /off$$

o /onf$%&ionr+


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o N$)&!$ rof$))ion!)

($+ (-$ &($ir ,nuf%&urin. uni& '($r$ &($+ ,*$ &($ir "ro*u%& n* ,u!&i"!$ *$"r&,$n&)

'(i%( *$!) n* (n*!$ &($ 8u$ri$) %o,"!in&) &(& r$ HR Mr$&in. ;inn%$ r$)$r%( n*

*$-$!o",$n& Su""!+ %(in ro*u%&ion n*


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o /ff$in$;r$$ /o%/o!

o /o%/o! /($rr+

o N$' /o$

o /o%/o! 'i&( L$,on

o /o%/o! ni!!

o /o%/o! 'i&( Li,$

o /o%/o! R)"$rr+

o /o%/o! B!% /($rr+ ni!!

o /o%/o! B!

o /o%/o! /i&r

o /o%/o!


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o /(i%$n )n*'i%($)

o ;r$n%( fri$)

o Sof& *rin)

o Br$f)&

o D$))$r&)

#ypes of restaurants

o M%Dri-$

o M%/f$

o M%E"r$))

o ru% S(o")

o !,r& S&or$)

o S(o""in. M!!)

$i%uidity &nalysis

Current 'atio

(ormula of current 'atio) current assets*current liabilities
https://en.wikipedia.org/wiki/Chicken_sandwichhttps://en.wikipedia.org/wiki/French_frieshttps://en.wikipedia.org/wiki/Soft_drinkhttps://en.wikipedia.org/wiki/Breakfasthttps://en.wikipedia.org/wiki/Desserthttps://en.wikipedia.org/wiki/Chicken_sandwichhttps://en.wikipedia.org/wiki/French_frieshttps://en.wikipedia.org/wiki/Soft_drinkhttps://en.wikipedia.org/wiki/Breakfasthttps://en.wikipedia.org/wiki/Dessert


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In &($ o-$ &!$ '$ %!%u!&$ !! &($ %urr$n& r&io fro, 2011 &o 2014 M%Don!*) !$*in. in

/urr$n& r&io ) %o,"r$* &o $")i/o /o$ n* N$)&!$ In 2013 n* 2014 (i) r&io) in%r$)$)

N,$ of &($ /o,"n+ 2014 2013 2012 2011

M%Don!*) 1.52 1.59 1.45 1.25

/o$ 1.02 1.13 1.09 1.05

$")i/o 1.14 1.24 1.10 0.96

N$)&!$ 1.03 0.91 0.91 0.95

+uic ratio

(ormula:

+uic ratio) current assets,in-entories*current liabilities

N,$ of &($ /o,"n+ 2014 2013 2012 2011


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M%Don!*) 1.20 1.30 1.09 1.05

/o$ 0.81 0.90 0.77 0.78

$")i/o 0.85 0.93 0.80 0.62

N$)&!$ 0.69 0.59 0.60 0.66

$!! ($r$ .in M%Don!*) !$*in. in Qui% r&io)


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N,$ of &($ /o,"n+ 2014 2013 2012 2011

M%Don!*) 145.36 140.20 140.47 143.97

/o$ 5.61 5.63 6.00 6.34

$")i/o 9.43 8.94 8.45 8.78

N$)&!$ 5.42 5.50 5.27 5.14

In ))$& ,n.$,$n& r&io &($r$ i) in-$n&or+ &urno-$r r&io %o,in. fir)& in &(i) r&io n!+)i)

M%Don!*) .in on &($ &o" n* &($r$ i) i. ,r.in if '$ %o,"r$* M%Don!*) "$rfor,n%$

'i&( $")i /o$ n* N$)&!$ H$ i) !$*in. in 2014 &(& i) 14536

"ay/s sales outstandin

(ormula:

"S0) 'ecei-able*&nnual sales*3


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In D+) )!$) ou&)&n*in. r&io N$)&!$ i) !$*in. ) %o,"r$* &o "$rfor,n%$) of M%Don!*)

%o$ n* $")i In 2011 DS< i) 5547 '(i%( i) (i.($r &(n 2014 +$r "$rfor,n%$ &(& i) 50FF

(i%( )(o') N$)&!$ i) .r$&$r &(n &($ o&($r) foo* n* $-$r.$) %o,"ni$)

N,$ of &($ /o,"n+ 2014 2013 2012 2011

M%Don!*) 16.85 17.50 17.94 16.99

/o$ 37.05 37.52 36.79 36.66

$")i/o 32.43 33.22 36.14 36.32

N$)&!$ 50.99 50.60 52.87 55.47

&sset #urno-er

(ormula:

&sset turno-er ratio) sales*total assets


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N,$ of &($ /o,"n+ 2014 2013 2012 2011

M%Don!*) 0.77 0.78 0.81 0.83

/o$ 0.51 0.53 0.58 0.61

$")i/o 0.90 0.87 0.89 0.94

N$)&!$ 0.72 0.75 0.77 0.74

(i!$ in &(i) )$%&ion $")i ))$& &urno-$r r&io i) .r$&$r &(n o&($r) %o,"ni$) $")i () 0F0

n* 0F4 '(i%( i) .r$&$r &(n /o$ N$)&!$ n* M%Don!*)

(ied asset turno-er

(ormula:

(ied asset turno-er) Sales*Net fied assets


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N,$ of &($ /o,"n+ 2014 2013 2012 2011

M%Don!*) 1.09 1.11 1.16 1.20

/o$ 3.11 3.18 3.26 3.14

$")i/o 3.72 3.52 3.37 3.43

N$)&!$ 3.32 3.43 3.63 3.68

In fi$* ))$& &urno-$r .in $")i n* N$)&!$ on &($ &o" &($+ (-$ 372 36J n* M%Don!*)

() 10F '(i%( i) !$)) r&io n* $")i () .r$&$r r&io in &(i) r&io n!+)i)

Profitability &nalysis

Profit Marin on sale

(ormula:

Profit marin) Net income*sales


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N,$ of &($ /o,"n+ 2014 2013 2012 2011

M%Don!*) 17.34 19.87 19.82 20.38

/o$ 15.43 18.32 18.78 18.42

$")i/o 9.77 10.15 9.43 9.69

N$)&!$ 15.74 10.84 11.49 11.34

A.in M%Don!*) (-$ (i.($r or .r$&$r r&io &(n /o$ n* $")i N$)&!$ i) 8ui&$ n$r &o

M%Don!*) I& () 203J n* N$)&!$ (-$ (i.($)& -!u$ 1575 n* $")i (-$ !o' -!u$ '(i%( i)

F6F

'eturn on total assets 4'0&5

(ormula:

'0&) Net income*#otal assets

N,$ of &($ /o,"n+ 2014 2013 2012 2011


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M%Don!*) 13.42 15.51 15.98 16.94

/o$ 7.80 9.74 10.86 11.21

$")i/o 8.80 8.86 8.38 9.14

N$)&!$ 11.39 8.12 8.83 8.41

H$r$ .in M%Don!*) !$*in. %o,"n+ Hi) r$&urn on ))$&) r$ (i.($r in "$r%$n&.$ &(n

$-$r.$) n* i&) (i.( in 2011 '(i%( i) 16F4 ) %o,"r$* &o 2014 n* 2013 $")i i) & &($ !)&

'eturn on common e%uity 4'065

(ormula:

'06) Net income*Common e%uity


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N,$ of &($ /o,"n+ 2014 2013 2012 2011

M%Don!*) 32.97 35.69 36.82 37.92

/o$ 22.36 26.03 28.00 27.37

$")i/o 31.29 28.99 28.87 30.92

N$)&!$ 21.79 16.22 18.02 15.99

$!! ($r$ .in M%Don!*) i) !$*in. i& i) 8ui&$ f,ou) in &($ .!o!!+ n* "$o"!$ .o &($r$ n*

"r$f$r &o #un foo*) So *u$ &o -i!i!i&+ of !! &($ foo* &(i) i) &($ ,in r$)on &($ir r$&urn on

&($ $8ui&+ i) (i.($r (i%( i) ,i,u, in 2011 n* &(& ') 37F2 n* in 2014 i& *$%r$)$ fro,

37F2 &o 32F7

Maret -alue

(ormula:

Maret*7oo -alue) Maret price per share* 7oo -alue per share

N,$ of &($ /o,"n+ 2014 2013 2012 2011


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M%Don!*) 14.15 15.31 15.25 13.06

/o$ 7.66 7.30 7.34 7.34

$")i/o 15.48 14.55 14.41 15.05

N$)&!$ 18.78 21.89 20.70 17.35

In ,r$& n* oo -!u$ n$)&!$ i) !$*in. &($ir ,r$& -!u$ 21JF if '$ %o,"r$* &o $")i

/o$ n* M%Don!*) H$n%$ in &($ &!$ i& )(o' i& i) .r$&$r &(n &($ o&($r) %o,"ni$)

Price*6arnin 4P*65 6arnin Per Share

(ormula:

6arnins per share) Price per share*6arnin per share

N,$ of &($ /o,"n+ 2014 2013 2012 2011


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M%Don!*) (13.15) 3.54 1.71 15.07

/o$ 1.60 1.90 1.97 1.85

$")i/o 4.27 4.32 3.92 4.03

N$)&!$ 4.52 3.13 3.32 2.96

N$)&!$ "ri%$$rnin.) or '$ %n )+ ES N$)&!$ i) on &($ &o" '(i%( () (i.($)& )%or$ &(n o&($r

452 i) N$)&!$ n* $")i/o i) 8ui&$ n$r '(i%( i) 427 M%Don!*) .o$) in N$.&i-$ '(i!$ in

2011 M%Don!*) () (i.($)& -!u$ &(n o&($r %o,"ni$)

"ebt Manaement

#otal debt to total assets

(ormula:

"ebt ratio) #otal assets*total assets

N,$ of &($ /o,"n+ 2014 2013 2012 2011


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M%Don!*) 1.17 0.88 0.89 0.84

/o$ 0.67 0.63 0.57 0.48

$")i/o 0.75 0.69 0.68 0.56

N$)&!$ 0.18 0.17 0.15 0.11

$!! if '$ %o,"r$* *$& r&io .in M%Don!*) on &($ &o" '(i%( i) 117 () (i.($)& -!u$ &(n

&($ o&($r) %o,"ni$) r&io N$)&!$ (-$ !o'$)& -!u$ n* i& i) & &($ !)& M%Don!*) on &($ &o"

#ime Interest 6arned 4#I65

(ormula:

#ime interest earned) 67I#*Interest Chare

N,$ of &($ /o,"n+ 2014 2013 2012 2011


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M%Don!*) 13.92 16.72 16.64 17.26

/o$ 19.31 24.79 19.43 25.20

$")i/o 9.63 9.76 9.12 20.35

N$)&!$ 10.47 12.10 5.36 7.19

In &i,$ in&$r$)& $rn$* /o$ i) on &($ &o" '(i%( (-$ (i.( -!u$ &(& I) 2520 in 2011 n* 247F

in 2013 An* $")i () !o' -!u$ '(i%( i) F63 In &($ &!$ +ou %n )$$ $")i in 2011 &($ir &i,$

in&$r$)& $rn$* i) 2035 '(i%( i) 8ui&$ '$!! ) &($ +$r) "))$) &(i) (i) IE i) *$%r$)$ n* /o$

i) in%r$)in. )o i& *$%r$)$) n* *$%r$)$ i& f!! in 2014 '(i%( i) F63

67I#"& Co-erae

(ormula:

67I#"& co-erae) 67I#"&8 $ease payment* Interest8 principle payments8 $ease

payment


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N,$ of &($ /o,"n+ 2014 2013 2012 2011

M%Don!*) 13.92 16.72 16.64 17.26

/o$ 20.31 25.79 30.75 28.43

$")i/o 9.73 9.88 9.25 20.51

N$)&!$ 10.06 20.81 19.08 23.48

$!! ($r$ /o$ i) !$*in. '(i%( () (i.($)& ,r.in n* *o,in&$ in &(i) %&$.or+ In 2011 $")i

EBIDA i) 2J43 n* in 2014 '(i%( *$%r$)$ n* f!! & 2011 '(i%( i) )&i!! !$*in. &o*+) i&)

8ui&$ f,ou) n* )u%%$$* in ,in. "o)i&ionin. ,on. &($ %u)&o,$r ,in* '(i%( i) .oo* $")i

i) !)o *$%r$)$ i&) EBIDA '(i%( i) & &($ $n* F73 )%or$


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Conclusion

In &($ o-$ !! &($ r&io n!+)i) M%Don!*) "$rfor,n%$ i) (i.($r &(n !! &($ o&($r)

%o,"ni$) '(i%( in%!u*$ /o$ $")i n* N$)&!$ M%Don!*) i) f)& foo* %(in n* i& i) 8ui&$

f,ou) in Euro"$ n* !! o-$r &($ 'or!* &($+ %r$&$ 'r$n$)) ,on. &($ "$o"!$) &($+ (-$

,u!&i"!$ %o,"$&i&or) 'or!*'i*$ ($+ (-$ &($ir 8u!i&+ &)&$ n* &($+ ,$$& &($ir !$-$! n*"$o"!$ (-$ &($ir fir)& "riori&+ ($+ $n&$r&in &($ir %u)&o,$r ) ,u%( &($+ %n Du$ &o ,$$& &($ir

!$-$! &($+ *on& %o,"ro,i)$* .in)& &($ir 8u!i&+ So &($+ $)& )$r-$ n* $n&$r&in n* &($+ !)o

off$r on "ro,o&ion! %&i-i&i$) n* *i)%oun& "ri%$) n* ,in&in &($ir !$-$! In &($ o-$ r&io

n!+)i) f$' r&io) &($+ r$ !$)) u& ,o)& of &($ r&io) &($ir "$rfor,n%$ i) -$r+ .oo* n* &(i) i)

.oo* )i.n ) '$!!

ratio analysis bf final project

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