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    Financial Management Live Project: A Comparative Study of Ratio Analysis Between Nestle and Engro Foods

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    Kreator's Blog
    This document provides a comparative ratio analysis of Nestle and Engro Foods over 5 years. It includes the objectives, methodology, company profiles, interpretations of various financial ratios including current ratio, quick ratio, inventory turnover ratio, fixed asset turnover ratio, debt-equity turnover ratio, current asset turnover ratio, and fixed asset to current asset ratio. The findings section analyzes and compares each ratio between the two companies. The conclusion states that Nestle has good current ratio, inventory turnover ratio, fixed asset turnover ratio, current asset turnover ratio, and fixed asset to current asset ratio, while Engro Foods has a good current ratio and debt-equity ratio.

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    Financial Management Live Project: A Comparative Study of Ratio Analysis Between Nestle and Engro Foods

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    Kreator's Blog
    47 views21 pages
    This document provides a comparative ratio analysis of Nestle and Engro Foods over 5 years. It includes the objectives, methodology, company profiles, interpretations of various financial ratios including current ratio, quick ratio, inventory turnover ratio, fixed asset turnover ratio, debt-equity turnover ratio, current asset turnover ratio, and fixed asset to current asset ratio. The findings section analyzes and compares each ratio between the two companies. The conclusion states that Nestle has good current ratio, inventory turnover ratio, fixed asset turnover ratio, current asset turnover ratio, and fixed asset to current asset ratio, while Engro Foods has a good current ratio and debt-equity ratio.

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    Copyright Abhijit Paul

    Original Title

    ACCOUNTING PRESENTATION

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    This document provides a comparative ratio analysis of Nestle and Engro Foods over 5 years. It includes the objectives, methodology, company profiles, interpretations of various financial ratios including current ratio, quick ratio, inventory turnover ratio, fixed asset turnover ratio, debt-equity turnover ratio, current asset turnover ratio, and fixed asset to current asset ratio. The findings section analyzes and compares each ratio between the two companies. The conclusion states that Nestle has good current ratio, inventory turnover ratio, fixed asset turnover ratio, current asset turnover ratio, and fixed asset to current asset ratio, while Engro Foods has a good current ratio and debt-equity ratio.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    47 views21 pages

    Financial Management Live Project: A Comparative Study of Ratio Analysis Between Nestle and Engro Foods

    Uploaded by

    Kreator's Blog
    This document provides a comparative ratio analysis of Nestle and Engro Foods over 5 years. It includes the objectives, methodology, company profiles, interpretations of various financial ratios including current ratio, quick ratio, inventory turnover ratio, fixed asset turnover ratio, debt-equity turnover ratio, current asset turnover ratio, and fixed asset to current asset ratio. The findings section analyzes and compares each ratio between the two companies. The conclusion states that Nestle has good current ratio, inventory turnover ratio, fixed asset turnover ratio, current asset turnover ratio, and fixed asset to current asset ratio, while Engro Foods has a good current ratio and debt-equity ratio.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 21

    FINANCIAL

    MANAGEMENT LIVE
    PROJECT
    A COMPARATIVE STUDY OF RATIO
    ANALYSIS BETWEEN NESTLE AND
    ENGRO FOODS
    CONTENT
    01 INTRODUCTION

    02 OBJECTIVES

    03 METHODOLOGY

    04 FINDINGS

    05 CONCLUSION
    INTRODUCTION
    01

    In this project, we have to find the ratio analysis of 2 company for


    5 years.

    02

    Ratio analysis is used to evaluate a number of issues with an entity,


    such as its liquidity, efficiency of operations, and profitability

    03

    Ratio analysis is the comparison of line items in the


    financial statements of a business.
    COMPANY PROFILE
    01 02 03 04 05
    NESTLE NESTLE NESTLE ENRO FOODS ENGRO FOODS
    Nestlé, the Company established in 1866 by Nestlé has been Engro Foods (Pvt.) Engro Foods has
    which is renowned for brothers George Page serving India Limited (EFL) has been entered the Food
    its vast collection of and Charles Page, and consumers since 1988, established in 2005 as business through milk
    food products. The Farine Lactée. Nestlé when parent company, part of a diversification processing and sale
    Company was formed was found in 1866 by the Switzerland-based process at the Engro with the company’s
    in 1905 by the merger Henri Nestlé. Nestlé SA, first Group vision to pursue growth
    of the Anglo-Swiss Milk acquired a share in opportunities based on
    Company Milk Pak Ltd country fundamentals
    and own strength
    OBJECTIVES
    TO FIND THE RATIO ANALYSIS BETWEEN NESTLE
    AND ENGRO FOODS
    METHODOLOGY
    We have collected the data from secondary sources like
    internet, magazine etc
    CURRENT RATIO

    INTERPRETATION
    So, we can say that both the companies are more or less
    having good liquidity position but the position of nestle
    company is not so good. The Management of Nestle is to
    put more on Current assets.

    MAXIMUM
    CURRENT RATIO
    COMPRISING OF
    2.59
    QUICK RATIO

    INTERPRETATION
    It has been observed that though Nestle is having Low CR
    but in terms of QR it is in Cushioning position.

    MAXIMUM
    QUICK RATIO
    COMPRISING OF
    1.83
    INVENTORY TURNOVER
    RATIO
    INTERPRETATION
    Here, nestle is having good Inventory Turnover Ratio but
    the Inventory turnover ratio is low in case of Engro foods,
    so we can say, A low turnover implies weak sales and
    possibly excess inventory.

    MAXIMUM
    INVENTORY
    TURNOVER RATIO
    COMPRISING OF
    1.83
    FIXED ASSET
    TURNOVER RATIO
    INTERPRETATION
    Here, nestle is having low fixed turnover ratio, so we can
    say, A low fixed asset turnover ratio generally indicates
    the opposite: a firm does not use its assets effectively or to
    its full potential to generate revenue

    MAXIMUM
    FIXED ASSET
    TURNOVER RATIO
    COMPRISING OF
    4.19
    DEBT-EQUITY
    TURNOVER RATIO
    INTERPRETATION
    Here, Engro foods is having low Debt-Equity turnover ratio,
    so we can say, A low debt-to-equity ratio indicates a lower
    amount of financing by debt via lenders, versus funding
    through equity via shareholders.

    MAXIMUM
    DEBT-EQUITY
    TURNOVER RATIO
    COMPRISING OF
    0.81
    CURRENT ASSET
    TURNOVER RATIO
    INTERPRETATION
    Higher current asset turnover comparing to competitors
    would indicate a high intensity of the current assets usage

    MAXIMUM
    CURRENT ASSET
    TURNOVER RATIO
    COMPRISING OF
    3.02
    FIXED ASSET TO
    CURRENT ASSET RATIO
    INTERPRETATION
    Henceforth, after evaluation we can say that these
    companies are managing their fixed assets effectively as a
    higher ratio result implies that management is using its fixed
    assets more effectively and efficiently by comparing its
    historical ratios

    MAXIMUM FIXED
    ASSET TO CURRENT
    ASSET RATIO
    COMPRISING OF 2.72
    FINDINGS

    CURRENT RATIO INVENTORY TURNOVER RATIO FA TURNOVER RATIO DEBT-EQUITY TURNOVER RATIO CA TURNOVER RATIO
    Engro foods have good Nestle is having good Nestle is good as they have Engro foods is having low , Nestle is good , as Higher
    Current ratio but The Inventory Turnover Ratio but higher FA turnover Ratio, So so we can say, A low debt- current asset turnover
    Management of Nestle is to the Inventory turnover ratio we can say that higher FA to-equity ratio indicates a comparing to competitors
    put more on Current assets. is low in case of Engro Turnover ratio denotes best lower amount of financing would indicate a high
    foods, so we can say, A low use of Fixed Asset ratio by debt via lenders, versus intensity of the current
    turnover implies weak sales funding through equity via assets usage
    and possibly excess shareholders
    inventory

    FA to CA Ratio QUICK RATIO


    Nestle is good as higher It has been observed that
    ratio result implies that though Nestle is having Low
    management is using its CR but in terms of QR it is in
    fixed assets more effectively Cushioning position.
    and efficiently by comparing
    its historical ratios
    Engro foods have good
    current ratio

    Nestle is having good


    Inventory Turnover Ratio
    CONCLUSION
    Nestle is having Good Fixed
    Asset Turnover Ratio

    Engro Foods are having Good


    Debt-Equity Ratio

    Nestle is having good


    Current asset Turnover Ratio

    Nestle is having good Fixed


    Asset to Current Ratio

    Nestle is having good


    Quick Ratio
    Thank you
    I APOLOGIES IF I DID ANY MISTAKE……
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