4. Introduction
Nestle Pakistan Limited is a subsidiary of
Nestle S.A. based in Switzerland.
Nestle Pakistan is principally engaged in
the manufacture, and sale of food products
which include milk, yogurt, ghee, cream,
coffee, juices, instant drinks and bottled
water.
The company also manufactures infant
cereals, breakfast cereals, prepared meals,
chocolates, confectionery .
5. ALSO
The company markets its products
under international brand names that
include Nescafe, Maggi, Cereal, Milky
bar, Kit Kat, Bar-One, Milkmaid, and
Pure Life.
The company with three
manufacturing facilities operates all
over Pakistan.
6.
7. NESTLE MISSION STATEMENT
We want Nestlé products to be within reach for
every single Pakistani. Yet nutritional value and
quality remain the most essential ingredients in
all our brands.
Nestlé brands are designed to suit your lifestyle
and your needs. You can take advantage of the
best nutrition in a way that is suitable for your
tastes and lifestyle .
.
8.
9. Now we will present some current
ratios of Year 2009 & 2010
Formula:
Current ratio=
Current Assets-Inventory / Current
Liability
11. Asset turnover ratio
Asset turnover ratio = sales / total
asset
2010
Asset turnover ratio: 34,183,847/16,684,176
Asset turnover ratio: 3.199
2009
Asset turnover ratio: 28,235,393/15,848,574
Asset turnover ratio: 1.78
Interpretation:
Sales of the firm is improved as related to the
total assets
12. Return on equity
Return on equity = net income /
common equity
2010
Return on equity: 1,552,894/4,388,847
Return on equity: 0.354
2009
Return on equity: 1,865,212/4,111,705
Return on equity: 0.44
Interpretation:
Net Income of the firm is decreased. So the return
against the equity is also not good
15. Accounts Payable turnover
A/P Turnover= Sales/Accounts payable
2010
A/P Turnover: 25,231,532/2,798,185
A/P Turnover: 9.01
2009
A/P Turnover: 20,285,142/30,624,227
A/P Turnover: 6.624
Interpretation:
Management is not efficient in paying its
payables.
16. Profit Margin
Profit Margin= Net Income/Sales
2010
Profit Margin: 1,552,894/34,183,847
Profit Margin: 0.045
2009
Profit Margin: 1,805,212/28,235,393
Profit Margin: 0.064
Interpretation:
Decline in P.M shows the insufficient NI related to
the sales.
17.
18. Long Term Debt Ratio
Long Term Debt Ratio= LTD/LTD+ Total Equity
2010
Long Term Debt Ratio:
5,139,875/5,139,875+4,388,847
Long Term Debt Ratio: 0.54
2009
Long Term Debt Ratio:
4,028,700/4,028,700+4,111,705
Long Term Debt Ratio: 0.5
19.
20. SWOT ANALYSIS
SWOT stands for strength, weakness,
opportunities and threats for the
company. Following is the SWOT
analysis of Nestle
Repeatedly ranked as the world's largest
bottled water company and have set up
facilities to operate water resources in a
responsible manner.
21. CONCLUSION
Its prices are high against its
competitors but it matches its quality.
Nestle is largest food and beverage
company with its mission to provide
healthy life style.
Their excellent distribution channels
make it available at any retailer store.
Ethical standard are big issue in Nestle
US.