Please find below Financial Statement extracts of Nestle from year 2017 and 2018. Based on this information please answer following question from a perspective of Financial Analyst (justify your answers with data as well the reason for choosing your ratios for your analysis) .The company’s total assets at year-end 2016 were CHF 131,900 million. What reasonable conclusions an analyst might make about the companies efficiency, Companies solvency, Liquidity and Profitability? In millions of CHF Notes 2018 2017 * Sales 3 91,439 89,590 Cost of goods sold (46,070) (45,571) Trading operating profit 3 13,789 13,277 Operating profit 13,752 10,156 Profit before taxes, associates and joint ventures 12,991 9,460 Taxes 13 (3,439) (2,773) Profit for the year 10,468 7,511 Notes 2018 2017 * Assets Current assets Cash and cash equivalents 12/16 4,500 7,938 Short-term investments 12 5,801 655 Inventories 6 9,125 9,177 Trade and other receivables 7/12 11,167 12,036 Total current assets 41,003 31,884 Total non-current assets 96,012 101,326 Total assets 137,015 133,210 Liabilities and equity Current liabilities Trade and other payables 7/12 17,800 18,864 Total current liabilities 43,030 38,189 Non-current liabilities Financial debt 12 25,700 18,566 Total non-current liabilities 35,582 32,792 Total liabilities 78,612 70,981 Total equity 58,403 62,229 Total liabilities and equity 137,015 133,210
Please find below Financial Statement extracts of Nestle from year 2017 and 2018. Based on this information please answer following question from a perspective of Financial Analyst (justify your answers with data as well the reason for choosing your ratios for your analysis) .The company’s total assets at year-end 2016 were CHF 131,900 million. What reasonable conclusions an analyst might make about the companies efficiency, Companies solvency, Liquidity and Profitability?
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In millions of CHF |
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|
|
|
Notes |
2018 |
2017 * |
|
|
Sales |
3 |
91,439 |
89,590 |
|
Cost of goods sold |
(46,070) |
(45,571) |
|
|
Trading operating profit |
3 |
13,789 |
13,277 |
|
Operating profit |
|
13,752 |
10,156 |
|
Profit before taxes, associates and joint ventures |
|
12,991 |
9,460 |
|
Taxes |
13 |
(3,439) |
(2,773) |
|
Profit for the year |
|
10,468 |
7,511 |
|
|
Notes |
2018 |
2017 * |
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Assets |
|
||
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Current assets |
|
||
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Cash and cash equivalents |
12/16 |
4,500 |
7,938 |
|
Short-term investments |
12 |
5,801 |
655 |
|
Inventories |
6 |
9,125 |
9,177 |
|
Trade and other receivables |
7/12 |
11,167 |
12,036 |
|
Total current assets |
|
41,003 |
31,884 |
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Total non-current assets |
|
96,012 |
101,326 |
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Total assets |
|
137,015 |
133,210 |
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Liabilities and equity |
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||
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Current liabilities |
|
||
|
Trade and other payables |
7/12 |
17,800 |
18,864 |
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Total current liabilities |
|
43,030 |
38,189 |
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Non-current liabilities |
|
||
|
Financial debt |
12 |
25,700 |
18,566 |
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Total non-current liabilities |
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35,582 |
32,792 |
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Total liabilities |
|
78,612 |
70,981 |
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Total equity |
|
58,403 |
62,229 |
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Total liabilities and equity |
|
137,015 |
133,210 |
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