This document analyzes the financial performance of Unilever from 2010-2011. It finds that Unilever's gross profit ratio increased 0.98% from 2010-2011. Its net profit ratio also increased, from 10.82% in 2010 to 12.48% in 2011. However, its current ratio decreased from 1.0895 in 2010 to 0.0884 in 2011. When compared to industrial benchmarks, Unilever's current ratio, gross profit, and inventory turnover were lower, while its net profit was higher. Compared to P&G specifically, P&G had higher gross profits, current ratio, and inventory turnover than Unilever.

1. Presented To
Sir Waseem Subhani
Presented By
Muhammad Salman khan
Roll# 2011-bba-023
Financial
Analysis
of
Unilever (2011)
1

2. History:
 UPL was established some fifty years ago
in the newly created Pakistan. The town of
Rahim Yar Khan was the site chosen for
setting up a vegetable oil factory in 1958
and that is where the first UPL
manufacturing facility developed.
2

3.  Profibility Ratio
It’s a measure of the profitability of the company’s
product.
Gross profit ratio of the company has increased by
0.98% as compared to the year 2010
Gross profit ratio
Gross profit/Net sale *100
2010 2011
=1534884/4040887*100
=37.98%
=1924749/4940251*100
=38.96%
3

4. IN 2011 gross
profit of Our
company has
Increased
4

5. 0.39
0.38
0.37
0.39
0.37
0.38
0.36 0.365 0.37 0.375 0.38 0.385 0.39 0.395
2011
2010
2009
2008
2007
2006
Gross Profit
Highest
Gross
Profit
rate
5

6.  Net Profit Ratio
Net Profit of the company has Increased by
1.66% as compared to the year 2010
In 2010 the net profit ratio is 10.82%
In 2011 the net profit ratio is 12.48%
Net Profit/Net Sales*100
2010 2011
=437463/4040887*100
=10.82%
=616695/4940251*100
=12.48%
6

7. 9.69
9.45
11.31
5.24
11
12.48
2006 2007 2008 2009 2010 2011
Net Profit
7

8.  Short Term Liquidity Ratio:
Current ratio has decreased by 1.20times
(In 2010 the company has 1.0895 assets to
pay the liability of ‘1’ and in 2011 the
company has 0.0884 assets to pay the
liability of ‘1’)
Current Ratio:
Current Assets/Current liability
2010 2011
=704825/646896
=1.0895:1
=1036314/1171104
=0.0884:1
8

9. Debt ratio has increased by 9.38%as
compared to 2010
In 2010 the debt ratio is 62.8%
In 2011 the debt ratio is 72.8%
 Long Term Solvency Position:
Debt Ratio:
Total Liabilities/Total Assets*100
2010 2011
=685078/1089473
=62.8%
=1275633/1767168
=72.18%
9

10. 58
60
62
64
66
68
70
72
74
2011 2010
Debt Ratio
Debt Ratio
10

11. Interest coverage ratio has increased by
21.91times as compared to the year 2010
 Interest Coverage Ratio:
Operating Income/Annual Interest Expense
2010 2011
=23576/9166
=2.5721times
=82582/3372
=24.49times
11

12. Inventory turnover ratio is increased by
8.28times as compare to the year 2010.
 Activities Ratio:
Inventory Turnover Ratio
CGS/ Average Inventory
2010 2011
=2506003/61576
=40.69times
=3015502/61576
=48.97times
12

13.  Inventory Turnover Ratio
2010 2011
40.69
48.97
13

14. Industrial Benchmark
The standards maintained by the U.S
economy for a certain company is
called “INDUSTRIAL BENCHMARK”
14

15. Comparison Between
Unilever &Industrial Benchmark
http://www.bizstats.com
Unilever Industrial benchmark
Current Ratio=0.088:1 Current Ratio=0.85:1
Gross Profit=38.96% Gross Profit=57.66%
Net Profit=12.48% Net Profit=1.05%
Inventory Turnover
=48.97times
Inventory Turnover
=11.49times
15

16.  Comparison Between
Unilever &Industrial
Benchmark
 Current ratio of unilever is 0.762:1 less from
the industrial bench mark
 Gross profit of unilever is 18.7% less from
the industrial bench mark
 Net profit of unilever is 11.43% higher from
the industrial bench mark
 Inventory turnover rate is 37.48times
higher from the industrial bench mark
16

17.  Comparison
of
Unilever and P&G
17

18.  Comparison
of
Unilever and P&G
Unilever P&G
Gross Profit=38.96% Gross Profit=49.43%
Current Ratio=0.088:1 Current Ratio=0.9:1
Inventory
Turnover=48.97times
Inventory
Turnover=49.8times
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19.  Comparison
of
Unilever and P&G
 Gross profit of P&G is higher from the
UNILEVER and the difference is 10.47%.
 Current ratio of P&G is higher from the
unilever and the difference is 0.892.
 Inventory turnover rate of P&G is higher
from the unilever and the difference is
0.89
19

20. ..??
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