Nestle Analysis Essay

Words: 4469
Pages: 18
Open Document
Table of Contents 1. Introduction 5 1.1 Nestle 5 1.2 Dutch Lady 5 2. Ratio Analysis 6 2.1 Profitability Ratio 6 2.1.1 Gross Profit Margin 6 2.1.2 Net Profit Margin 7 2.1.3 Expenses Margin 7 2.2 Liquidity Ratio 7 2.2.1 Current Ratio 7 2.2.2 Quick Ratio 7 2.3 Efficiency Ratio 8 2.3.1 Debtor Turnover Period 8 2.3.2 Creditor Turnover Period 8 2.3.3 Stock Turnover Period 8 2.4 Capital Structure 9 2.4.1 Gearing 9 2.4.2 Interest Cover 9 2.5 Investors Ratio 9 2.5.1 Return on Capital Employed 10 2.5.2 Earnings per Share 10 2.5.3 Price Earnings Ratio 10 2.5.4 Dividend Yield 10 2.5.5 Earning Yield 11 2.6 Ratio Analysis on Nestle 11 2.6.1 Profitability Ratio of Nestle 11 2.6.2 Efficiency Ratio …show more content…
This shows the portion of money use for expenses.
Expenses Margin=Gross Profit Margin-Net Profit Margin
2.2 Liquidity Ratio Liquidity ratio is a financial metric that are used to evaluate a business’ capability to pay off its short term obligations and debts. The higher the ratio, the higher the margin for safety that the company is able to pay off any requirements. There are two types of ratio, the current ratio and quick ratio. (Morley, 2010)
2.2.1 Current Ratio The current ratio measures the ability of a company to pay off its short term obligations or debts. This ratio is measured in times. (InvestingAnswers Inc, 2012)
Current Ratio=Current AssetsCurrent Liabilities
2.2.2 Quick Ratio
The quick ratio measures the ability of a company to pay off its short term obligations or debts immediately. This ratio is measured in times.
Quick Ratio=Current Assets-StockCurrent Liabilities
2.3 Efficiency Ratio Efficiency ratio is used to obtain information regarding the time period used for the turnover of receivables, repayment of liabilities and the stock management. There are three types of ratio, the debtor turnover period, creditor turnover period, and the stock turnover period. (Walsh, 2009) 2.3.1 Debtor Turnover Period The debtor turnover period is used to measure the numbers of days for collection of trade receivables. It measures the credit extended to debtors and shows the credit control
Show More

Related Documents: Nestle Analysis Essay

Nestle Italy Study Analysis Essay

Nestle Case Study Analysis: 1. What is the structure of the Italian coffee market?  About 750 national or regional coffee rosters, and coffee roster coffee-houses. They bought coffee directly from growers or through agents or importers.  National Coffee Roasters normally bought beans from growers and sold their products to wholesalers on cash and carry basis; food channels such as supermarket, small stores or street vendors, coffee houses, restaurants, hotels, and…

Words 940 - Pages 4

Marketing Audit of Nestlé Crunch Essay

| Marketing Audit of Nestlé Crunch Introduction: Nestlé Crunch is a famous chocolate confectionery in the US market, and take up almost 2% market share of the total (Barton 2014). This market audit will be split into three section, and separately analyze the business environment, marketing mix and STP (Segmentation, targeting and positioning). Finally, a conclusion will be drawn in the end of this assignment. Business environment analysis: In this part, it will analysis the business environment…

Words 2557 - Pages 11

Essay Marketing and Nestle

The paracrisis: The challenges created by publicly managing crisis prevention A Case Analysis Communication is faster than ever due to the advent of the Internet and social media which are venues for forum, interaction and information/issue dissemination, Today, nearly half a billion people around the world utilize the Internet. In the United States alone, about 155 million Americans access the Internet at home, with some citizens accessing the Internet only at work. Internet use by consumers…

Words 1579 - Pages 7

Essay on Nestle Contadina Pizza and Pasta

NESTLE REFRIDGERATED FOODS: CONTADINA PASTA & PIZZA (A) GROUP 2 Marketing Program Design Case Analysis GROUP 2 1302-066 Keshika Lakhani 1302-070 Jubin Goel 1302-073 Keval Shah 1302-086 Mrigakshi Punga 1302-087 Nandita Jaswal 1302-093 Nirav Shah 1302-206 Gagandeep Singh NESTLE REFRIDGERATED FOODS: CONTADINA PASTA & PIZZA (A) - GROUP 2 Contents Executive Summary ................................................................................................................. 2 Q1)…

Words 2374 - Pages 10

Strategic Management Case Study on Swiss-based Nestle Essay

Executive Summary This paper provides a case analysis and case solution to a Harvard Business School strategic management case study on Swiss-based Nestle, the world’s largest food and beverage company with 2007 sales exceeding CHF100 billion or about US$112 billion(Bell & Shelman, 2009, p. 1). While extensive background information dating to Nestle’s 1867 founding is provided, the primary time setting for the case is April 2008, shortly after 29-year Nestle veteran Paul Bulcke advances to the position…

Words 3307 - Pages 14

Nestle Tafe Essay

Name: Jeewashni Sanjana Narayan Student Number: 98509845980934 The Organisation I have chosen is Nestle they are highly recognised for their affordable and good quality products such as baby food, bottled water, cereals, coffee and tea, confectionery, dairy products, frozen food, pet foods, and snacks. Nestlé was founded in 1866 by George Page, Charles Page, Henri Nestlé and has approximately 2,000 brands and operations in more than 86 countries and more than 330,000 employees globally.…

Words 1030 - Pages 5

Corporate Social Responsibility and Sustainable Business Essay examples

discretionary business practices and contributions of corporate resources (Kotler, 2005). With regard to corporate social responsibility, Nestlé introduced its GDA (guideline daily amount), in order to inform consumers of their diet, which is required every day. Such an approach was beyond the legal obligations and consumers were aware of their diet. Nestle has identified health problems among citizens, such as obesity and wanted to improve the habit of eating healthy in order to establish this…

Words 308 - Pages 2

Essay about Nestle: Marketing and Nestle

Introduction purpose I write this report to introduce Nestle company, because new technologies and products are offered by companies to customers and I am interested in business. Many people are attracted by Nestle for its tasty and convenient instant coffee, so I want to have a better understanding about why this company can achieve success. Through the analysis of data, Nestle is a successful company, which focus on the demands of the market and continues to innovate. I learnt that there may be…

Words 1470 - Pages 6

Essay about Competition in Bottled Water Industry

Visibility on the shelves gives retailers and convenience stores to demand for low price and slotting fees. SWOT Analysis: Coca-Cola Strengths World’s leading manufacturer, marketer and distributor of non-alcoholic beverage. The most Valuable Global Brand. Vast global distribution system. Market leading position in soft drinks industry. The re-join of Neville…

Words 902 - Pages 4

Nestlé Alimentana S.A. - Infant Formula Essay

Situation Analysis The case is based in the late 70’s of the past century, when after the baby boom and the appearance of third world countries (Less Developed Countries – LDC’s) mothers in general were unable to feed their children with all the needed nutrients that a normal child must have, this is basically why the infant formula was created. The infant formula was created by companies in the pharmaceutical industry and Nestlé. Nestlé easily got a high market share in the industry. The…

Words 1642 - Pages 7