Nestle provides concise summaries in 3 sentences or less that provide the high level and essential information from the document. The document presents an analysis of Nestle including its mission, core values, goals, products, services, functional areas, and global reach. It also analyzes key financial ratios for Nestle in 2020 and 2019 such as liquidity ratios, debt/equity ratio, profitability ratios, gross profit margin, and net profit margin. The analysis found that some ratios such as debt/equity and return on equity improved from 2019 to 2020 while others like current ratio and quick ratio declined.

2. Presented By: MAHRUKH ASHRAFI
Program: M.COM 03

3. CONTENT
• Abstract
• Introduction
• Mission
• Core value
• Goal . Analysis Ratios
• Nestle quality policy
• Products
• Good ingredients
• Services
• Functional areas
• Geographical reach
• Analysis :
• (strength, weakness, opportunity, economic, social, technological)

8. • Services:
Nestlé Start Healthy Stay Healthy assists parents with getting what and how to
take care of their child in the initial 1000 days of life
• USEFUL INSTRUCTIONS TO PARENTS:
• SCHOOL COMMITTED
• Functional areas:
• Marketing and sales
• Technical and production department
• Human resources (HR)
• Supply chain
• Research and development
• Information system
• Manufacturing
• Management and distribution

9. Geographical reach:
• 291000 employees worldwide
• sell items in 187 nations
• In 2019 sales over CHF 92.6 Billion
• the Nestle have 403 factories in almost 84 countries.

11. ANALYSIS RATIO:
• Liquidity Ratio :
•
• Current ratio = Current assets / Current liabilities
•
• Current Ratio (2020) = $29.22B / $39.17B
• = 0.75
•
• Current Ratio (2019) = $35.90B / $41.89B
• = 0.86
• Their debit is 0.75 in year 2020. 0.86 in year 2019. 0.11 is smaller than
2019.
•

12. • Quick ratio
• = Total quick assets ÷ Current liabilities
• Quick Ratio (2020) = $18.38B / $39.17B
• = 0.47
• Quick Ratio (2019) = $26.49B / $41.89B
• = 0.63
• Their debit 0.47 in year 2020 and 0.63 in year 2019.0.16 is
smaller than 2019.
•

13. • Debt/Equity Ratio
• = Long Term Debt / Shareholder's Equity
•
• Debt to Equity Ratio (2020) = $76.98B / $46.72B
• = 1.65
• Debt to Equity Ratio (2019) = $75.57B / $53.21B
• = 1.42
• Their debit is 1.65 in year 2020 and 1.42 in year 2019. 0.23
is greater than 2019.

14. • Profitability ratios
•
• Return on equity
• = 100 × (Net income ÷ Shareholders’ equity)
• Return on equity (2020) = 100 * ($12,368 / $49,683)
• = 24.89%
• Return on equity (2019)
• = 100* ($12832 / $55393)
• = 23.17 %
• Their debit is 24.89% in year 2020. 23.17% in year 2019.1.72% is greater than
2019.
•
• Return on asset
• = 100 × Net income ÷ Total asset
• Return on asset (2020)
• = 100 * ($12,368 / $127,755)
• = 9.68%
• Return on asset (2019)
• = 100* ( $12832 / $134169)
• = 9.56 %
• Their debit 9.68% in year 2020.9.56% in year 2019.0.12% is greater than 2019.
•

15. • Gross profit margin
• = 100 × Gross profit ÷ Revenues
•
• Gross profit margin (2020)
• = 100* ($21196.3 / 43417.4)
• = 48.82 %
•
• Gross profit margin (2019)
• = 100* ( $47036.4 / $94509 )
• = 49.77 %
• Their debit is 48.82% in year 2020.49.77% in year 2019.0.95% is smaller
than 2019.
•
• Net profit margin
• = 100 × Net income ÷ Revenues
•
• Net profit Margin (2020)
• = 100*($6184.16 / $ 43417.42)
• = 14.24 %
•