After all the findings, it is concluded that financial ratios are the basic and most important part of any business. It describes the firm’s financial position. As the data indicates that NESTLE is an international brand and has expanded its business on the large geographical area and also offers the large range of products, but on the other side ENGRO food offers the limited range of the products and most of them are dairy products. From the financial statements it is clear that the financial position of the NESTLE is far better than ENGRO as it is more preferred by the customers and also an internationally distributed. It also has less risk. It gives more return because it gains more profit than ENGRO.On the other hand ENGRO deals with the limited products in a limited geographical area but on the basis of financial ratios ENGRO has a better financial position and also has an opportunity to expand its business. Both the companies have some opportunities and threads and they need to work on it.

1. FINANCIAL
MANAGEMENT LIVE
PROJECT
A COMPARATIVE STUDY OF RATIO
ANALYSIS BETWEEN NESTLE AND
ENGRO FOODS

2. CONTENT
01 INTRODUCTION
02
03
04
05
OBJECTIVES
METHODOLOGY
FINDINGS
CONCLUSION

3. INTRODUCTION
In this project, we have to find the ratio analysis of 2 company for
5 years.
01
Ratio analysis is used to evaluate a number of issues with an entity,
such as its liquidity, efficiency of operations, and profitability
02
Ratio analysis is the comparison of line items in the
financial statements of a business.
03

4. COMPANY PROFILE
01 02 04 0503
NESTLE
Nestlé, the Company
which is renowned for
its vast collection of
food products. The
Company was formed
in 1905 by the merger
of the Anglo-Swiss Milk
Company
NESTLE
established in 1866 by
brothers George Page
and Charles Page, and
Farine Lactée. Nestlé
was found in 1866 by
Henri Nestlé.
NESTLE
Nestlé has been
serving India
consumers since 1988,
when parent company,
the Switzerland-based
Nestlé SA, first
acquired a share in Milk
Pak Ltd
ENRO FOODS
Engro Foods (Pvt.)
Limited (EFL) has been
established in 2005 as
part of a diversification
process at the Engro
Group
ENGRO FOODS
Engro Foods has
entered the Food
business through milk
processing and sale
with the company’s
vision to pursue growth
opportunities based on
country fundamentals
and own strength

5. OBJECTIVES
TO FIND THE RATIO ANALYSIS BETWEEN NESTLE
AND ENGRO FOODS

6. METHODOLOGY
We have collected the data from secondary sources
like internet, magazine etc

7. CURRENT RATIO
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.
INTERPRETATION
MAXIMUM
CURRENT RATIO
COMPRISING OF
2.59

8. QUICK RATIO
It has been observed that though Nestle is having Low CR
but in terms of QR it is in Cushioning position.
INTERPRETATION
MAXIMUM
QUICK RATIO
COMPRISING OF
1.83

9. INVENTORY TURNOVER
RATIO
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.
INTERPRETATION
MAXIMUM
INVENTORY
TURNOVER RATIO
COMPRISING OF
1.83

10. FIXED ASSET
TURNOVER RATIO
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
INTERPRETATION
MAXIMUM
FIXED ASSET
TURNOVER RATIO
COMPRISING OF
4.19

11. DEBT-EQUITY
TURNOVER RATIO
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.
INTERPRETATION
MAXIMUM
DEBT-EQUITY
TURNOVER RATIO
COMPRISING OF
0.81

12. CURRENT ASSET
TURNOVER RATIO
Higher current asset turnover comparing to competitors
would indicate a high intensity of the current assets usage
INTERPRETATION
MAXIMUM
CURRENT ASSET
TURNOVER RATIO
COMPRISING OF
3.02

13. FIXED ASSET TO
CURRENT ASSET RATIO
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
INTERPRETATION
MAXIMUM FIXED
ASSET TO CURRENT
ASSET RATIO
COMPRISING OF 2.72

14. FINDINGS
Engro foods is having low ,
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
DEBT-EQUITY TURNOVER RATIO
Nestle is good as they have
higher FA turnover Ratio, So
we can say that higher FA
Turnover ratio denotes best
use of Fixed Asset ratio
FA TURNOVER RATIO
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
INVENTORY TURNOVER RATIO
Engro foods have good
Current ratio but The
Management of Nestle is to
put more on Current assets.
CURRENT RATIO
Nestle is good , as Higher
current asset turnover
comparing to competitors
would indicate a high
intensity of the current
assets usage
CA TURNOVER RATIO
Nestle is good as higher
ratio result implies that
management is using its
fixed assets more effectively
and efficiently by comparing
its historical ratios
FA to CA Ratio
It has been observed that
though Nestle is having Low
CR but in terms of QR it is in
Cushioning position.
QUICK RATIO

15. Nestle is having Good Fixed
Asset Turnover Ratio
Nestle is having good
Inventory Turnover Ratio
Engro foods have good
current ratio
Engro Foods are having Good
Debt-Equity Ratio
Nestle is having good
Current asset Turnover Ratio
CONCLUSION
Nestle is having good Fixed
Asset to Current Ratio
Nestle is having good
Quick Ratio

16. Thank you
I APOLOGIES IF I DID ANY MISTAKE……

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