1. FinancialAnalysis of
Hindustan Unilever Limited
(2022-2023)
Submitted by-
Azimuddin Ahmed
Abhilash Dutta
Vicky Baruah
MBA 1st SEM
THE ASSAM KAZIRANGA UNIVERSITY
2. COMPANY OVERVIEW
Geographic
footprint
• 9/10 households use one or
more HUL products
• 9 million retail outlets reached
• 29 owned factories and 32
depots
• >3500 distributors
We are driven by our purpose
of making sustainable living
commonplace
India’s largest FMCG company
50+ brands that are household names
58,154+ cr INR turnover in the FY2022-
23
4. Major Competitors of HUL
The Procter & Gamble Co.
ITC Ltd Headquarters. India
Nestle India Ltd
Tata Consumer Products Ltd
5. Major Findings from Horizontal Analysis
Balance sheet
Total Current Assets
Total Equity
Significant
Current Asset
Growth
Improved
Financial Health
3% Total Equity
Growth
Positive Financial
Indicator
6. Major Findings from Horizontal Analysis
Balance sheet
Total Current Liability:
6.24% Rise in
Current Liabilities
Caution for Working
Capital Management
7. Major Findings from Horizontal Analysis
Significant Revenue Surge:
A 15.53% increase in total revenue indicates a substantial growth in the company's earnings from its primary
business activities.
Statement of profit and loss
Expense Surge:
A 17.16% increase in total expenses signifies a substantial rise in overall spending for the company.
Revenue from operations:
Total expense:
Profit Growth:
A 12.97% increase in net profit signifies a notable rise in overall earnings for the company.
Net profit:
8. Enhanced Liquidity Position:
A shift from 21% to 22.34% in Total Current Assets as a percentage of total assets
signifies improved liquidity for the company.
Balance sheet
Rise in Short-Term Obligations:
An increase from 15.69% to 16.19% in Total Current Liabilities as a
percentage of total obligations suggests a slight uptick in short-term
debts or obligations for the company.
TOTAL CURRENT
ASSETS
Total current
liability
Major Findings from Vertical Analysis
9. Expense Ratio Uptick:
The increase from 77.77% to 78.86% in Total Expenses as a percentage of total costs
indicates a slightly higher proportion of total costs spent on various expenses by the
company.
Statement of profit and loss
Total expense
NET PROFIT
Major Findings from Vertical Analysis
Profit Margin Reduction:
A decline from 17.23% to 16.84% in net profit as a percentage of total
revenue signals a slight decrease in the company's profitability.
10. 10
Major Findings from Ratio Analysis
INTERPRETATIONS BASED ON LIQUIDITY
RATIO:
Quick Ratio
Improved Quick Ratio:
The increase from 0.98 to 1.03 signifies enhanced immediate liquidity for the company in the current year.
Absolute Liquidity
Ratio
Enhanced Absolute Liquidity Ratio:
The increase from 0.33 to 0.38 indicates an improved ability for the company to meet immediate liabilities
using highly liquid assets.
Current Ratio
Improved Current Ratio:
The increase from 1.33 to 1.38 signals enhanced short-term liquidity for the company.
11. 11
Major Findings from Ratio Analysis
INTERPRETATIONS BASED ON SOLVENCY
RATIO:
Equity Ratio:
Debt to Equity
Ratio:
Interest Coverage
Ratio
Consistent Equity Ratio : equity ratio is unchanged from 0.833 in PY to
0.833 in CY
Stable to Slightly Improved Leverage: decreases from 0.20 to 0.198
Enhanced Interest Coverage : increases from
120 times to 130 times.
12. 12
Major Findings from Ratio Analysis
INTERPRETATIONS BASED ON PROFITABILITY
RATIO:
Net Profit Ratio:
Slight Profitability Dip: decreases from 17.22% to 16.84%.
Operating Profit
Ratio:
Slight Operating Profit Dip : decreases from 23.12% to 22.28%.
Return on
Investment(ROI):
Enhanced ROI: increases from 0.20 to 0.22 times.
13. 13
Major Findings from Ratio Analysis
INTERPRETATIONS BASED ON PROFITABILITY
RATIO:
Earning Per
Share:
Higher EPS : increases from rupees 37.52 to 42.39
INTERPRETATIONS BASED ON EFFICIENCY
RATIO:
Capital Turnover
Ratio
Enhanced Capital Turnover Ratio: increases from 0.87 times to 0.98 times.
14. 14
Major Findings from Ratio Analysis
Total Assets Turnover
Ratio:
Enhanced Asset Efficiency: increases from 0.73 to 0.82 times.
Current Assets Turnover
Ratio
Improved Fixed Assets Turnover: increases from 0.93 to 1.06 times.
Fixed Assets Turnover
Ratio:
Better Asset Efficiency: it rises from 0.93 to 1.06 times.
INTERPRETATIONS BASED ON EFFICIENCY
RATIO:
15. CONCLUSION
The company improved its ability to handle short-term
financial needs (liquidity).It managed its debts
consistently and didn't rely more on borrowing
(solvency).Profits slightly fluctuated, with some ratios
showing a small decrease. However, the company
became better at using its assets to generate sales or
revenue (efficiency).Overall, the company maintained
stability in managing its immediate finances and debts
while slightly fluctuating in profitability, but it
improved in how efficiently it used its resources to
generate revenue.
