HINDUSTAN

UNILEVER LTD.
RATIO ANALYSIS & CASH FLOW
Prof. Rajkumar Gupta
Members
NAMES
ROLL NO.

MB24036
ARJUN KABRA

MB24037
SHRADDHA KAMBLE

MUDASSIR KHAN
MB24038

MB24039 SHAHID KHAN

MB24040 SACHIN KHARAT

 INTRODUCTION
Hindustan Unilever Limited (HUL) is a leading fast-moving consumer
goods (FMCG) company in India. Established in 1933, HUL has been a
trusted household name for over 80 years. The company offers a wide
range of products across various categories, including home care,
personal care, beauty and personal care, and foods and refreshments.
Some of their popular brands include Dove, Lux, Surf Excel, Rin, Vim, Fair
& Lovely, Pond's, Lakme, Sunsilk, Lipton, Knorr, and Brooke Bond. HUL is
committed to sustainable living and has implemented various initiatives
to reduce its environmental impact and improve social welfare.
 Ratio Analysis
Ratios Formula 2024 2023 2022 Comment

The inventory turnover ratio has been relatively

Inventory COGS / Average stable over the years. This suggests that the
4.54 % 4.86 % 4.36 % company is maintaining a consistent level of
Turnover Ratio Inventory
inventory management efficiency.

Equity Dividend The dividend payout ratio has increased

Dividend Payout significantly in 2024, indicating a higher
/ Reported PAT 92.92 % 84.91 % 85.26 % proportion of net income is being distributed to
Ratio
* 100 shareholders.

The dividend payout ratio has increased

Asset Turnover Net Sales + significantly in 2024, indicating a higher
0.81 % 0.84 % 0.74 % proportion of net income is being distributed to
Ratio Total Assets
shareholders.

( Reported PAT / The return on asset has been relatively stable

13.86 %
Return On Asset Total Assets ) * 13.12 % 12.64 % over the years, indicating consistent profitability
100 from the company's assets

- By Arjun Kabra
 Ratios Formula 2024 2023 2022 Comment

(Net Income – The retention ratio has significantly decreased

from 2023 to 2024. This indicates that the
Retention Ratio Dividends) / Net 7.07 % 15.08 % 14.74 % company has been distributing a larger portion
Income of its net income as dividends to shareholders.

ROCE = (EBIT / The ROCE has decreased slightly from 2023 to

Return On Capital
Capital Employed) 21.74 % 21.99 % 20.19 % 2024. This suggests a slight decline in the
Employed (ROCE) * 100 efficiency of capital utilization.

Total Debt / Net The debt/equity ratio is 0% for all three years,
Debt / Equity Ratio 0.00 % 0.00 % 0.00 % indicating the company is debt-free.
Worth

The EV/EBITDA has decreased from 2023 to

Enterprise Value
EV / EBITDA 34.68 % 41.82 % 37.06 % 2024. This could indicate a decrease in the
(EV) / EBITDA company's valuation relative to its earnings.
 Ratios Formula 2024 2023 2022 2021 Comment

Current Asset / The current ratio has been steadily

increasing over the past four years,
Current ratio Current 1.64 % 1.38 % 1.34 % 1.26 % indicating improved liquidity and a stronger
Liabilities ability to cover short-term debt.

( Current Asset – The quick ratio has also been increasing,

Inventory) / suggesting that the company is becoming
Quick ratio 1.33 % 1.03 % 0.98 % 0.95 % more efficient in managing its working
Current
Liabilities capital.

The earning retention ratio has fluctuated

(Net income – over the years, with a significant increase in
Earning
Dividends) / Net 7.08 % 15.09 % 14.74 % -10.77 % 2023. This indicates that the company has
Retention Ratio Incomes been reinvesting more of its earnings in the
business.

(Net income – Similar to the earning retention ratio, the

cash earning retention ratio has also
Cash Earning Dividends) / Net
16.18 % 23.05 % 23.62 % 1.73 % fluctuated. The high values in 2022 and 2023
Retention Ratio Incomes suggest a strong focus on generating and
retaining cash.

- By Shraddha
 Ratios Formula 2024 2023 2022 2021 Comment

Operating The operating profit margin has remained

Operating profit relatively stable over the four years,
Income / 24% 23% 25% 25% suggesting consistent operational efficiency.
margin Revenue * 100 EV/Net Operating Revenue

EV / Net EV / Net The EV/Net Operating Revenue has

decreased over the years, which could
Operating operating 8.70 % 10.09 % 9.33 % 12.33 % indicate a decrease in valuation
Revenue revenue expectations relative to operating revenue.

Operating Profit Profit Before Tax has increased over the

Profit Before Tax - Interest 58.19 % 55.66 % 49.95 % 44.64 % years, suggesting improved overall
expenses profitability. Net Profit Ratio

Operating Net The net profit ratio has remained relatively

stable over the years, indicating consistent
Net Profit Ratio Profit / Net 16.72 % 16.84 % 17.22 % 17.29 % profitability after accounting for all
Sales * 100 expenses and taxes.
 Ratios Formula 2024 2023 2022 Comment
Net
The Return on equity capital ratio has increased
Return on equity proft/Equity
83.89 % 78.80 % 74.20% significantly in 2024 it shows good returns
capital Ratio Share
Capital*100

Net Profit(after The Earning Per Share Ratio has increased

Earning Per Share
tax)/No Of 43.47 % 43.07% 37.79 % significantly in 2023 and2022 and stabled in
Ratio 2024
Equity Share

COGS+Operatin The Operating Ratio for 2022, 2023, and 2024

Operating Ratio g Expenses /Net 80.95 % 80.48 % 80.08% indicates a stable but high expense-to-revenue
sales*100 relationship

Operating The ratio remained stable until 2023, then

Operating slightly increased to 79.43%, indicating a
Expenses /Total 79.43% 79.43% 78.94% marginal rise in operating expenses relative to
Expenses Ratio
sales*100 sales

- By Mudassir
 Ratios Formula 2024 2023 2022 Comment

Cost Of
The slight increase in recent years suggests cost
Cost Of Sales Ratio Sales/Net 79.434% 79.43% 78.04 % pressures impacting margins
Sales*100

Return on Net Profit (after The Return on Propritors Fund significaItaly

Propritors Fund tax)/Proprirtors 19.99% 20.20% 18.33% increased form 18.33% in 2022 to 19.99% in
Ratio Fund*100 2024

Net
The debt/equity ratio is 0% for all three years,
Profit(before
Debt Service Ratio 0% 0% 0% indicating the company is debt-free.
tax)&Intrest on
Loan /Intrest

The Interest Coverage Ratio for 2022indicates

Interest Coverage EBIT/Intrest
46.20% 78.00% strong ability to cover interest expenses in 2022
Ratio Expence 56.90% and 2023, suggesting low financial risk.
 Ratios Formula 2024 2023 2022 2021 Comment

The Current ratio is a key

Current liquidity measture that evaluates
Current Ratio Assets/Currrent 1.66% 1.41% 1.38% 1.28% a companys ability to meet its
Liabilities short term obligations with its
short term aassets.

Quick Assets/ The Quick ratio is a more stThe

Quick Ratio Current 1.4 % 1.06 % 1.01 % 0.958 % ringent measure of liquidity than
Liabilities the current ratio

The PBIT Margin is a key

Cost Of Goods profitability metric that shows
PBIT Margin Ratio Sold/ Average 23.26 % 22.38 % 23.18 % 25.53 % how efficiently a company
Inventory generates operating profit from
its revenue.
The PBDIT margin is Profitability
Total Earned metric that reflects a companys
PBDIT Margin Ratio Income / Total 25.07 % 24.13 % 25.19 % 17.29 % ability to generate profit from its
Expense core operations before
accounting for depreciation.
- By Shahid Khan
 Ratios Formula 2024 2023 2022 2021 Comment
Net Income – This suggests improved
Prefered Dividend profitability and earnings per
/ Weighted 43.05
Diluted Eps 42.40% 37.53% 33.85% share, likely due to factors like
Avergae Of %
Diluted Common increased revenue, cost control, or
Share Outstanding share buybacks.
This indicates that the company
Divend Pers has been more conservative with
Divendend Payout Ratio 83.82
Share/Earning Per 76.95% 76.38% 98.27% dividend payouts in recent years,
(CP) Share *100 %
possibly reinvesting more in the
business
 CASHFLOW

INTRODUCTION :

❖ Hindustan Unilever is in the FMCG business

comprising primarily of Home Care, Beauty &
Personal Care and Foods & Refreshment
segments.
❖ The Company has manufacturing facilities
across the country and sells primarily in India
 CASHFLOW STATMENT
PARTICULAR MAR 21 MAR 22 MAR 23 MAR 24
Profit from operations 11,672 12,829 14,089 14,537

Receivables 0 0 0 0
Inventory -543 -758 -339 74
Payables 0 0 0 0
Loans Advances 0 0 0 0
Deposits 0 0 0 0
Other WC items 442 (242) (621) 1,239
(101) (1000) (960) (1,313)
Working capital changes

Exceptional CF items (1) 3 0 0

9,613 9,048 9,991 15,469

Cash from operating activity
 PARTICULAR MAR 21 MAR 22 MAR 23 MAR 24
Fixed assets purchased (4,163) (1,228) (1,992) (1,477)
Fixed assets sold 97 175 181 20
Investments purchased (39,920) (48,522) (22,649) (21,337)
Investments sold 38,486 47,786 23,462 19,846
Interest received 277 161 259 425
Dividends received 1 1 2 3
Invest in subsidiaries 0 0 0 0
Loans to subsidiaries 0 0 0 0
0 0 0 0
Redemp n Canc of Shares

0 (334) 0
Acquisition of companies
0
Other investing items (3,994) (101) (1,213) (2,804)
Cash from Investing Activity (1,228) (1,728) (1,484) (5,324)
PARTICULAR MAR 21 MAR 22 MAR 23 MAR 24

Proceeds from shares 0 0 0 0

Proceeds from borrowings 188 55 286 0

Repayment of borrowings (188) (55) (286) (85)

Interest paid fin (92) (82) (88) (110)

Dividends paid (8,811) (7,526) (8,474) (9,416)

Financial liabilities (406) (407) (467) (423)

Other financing items 0 0 (2) 0

Cash from Financing Activity (9,309) (8,015) (8,953) (10,034)

Net Cash Flow (1,374) )695) (446) (111)

- By Sachin Kharat
THANK YOU.