Analysis of Unilevers

financial Statements

By: Thao Ho
Class: Myriam English
practice

Content
1. Types of financial analysis
2. Key Financial Statements
3. Analysis of key financial Statements
Horizontal analysis of balance sheet
Trend analysis of income statement
4. Analysis of Financial Ratios
Liquidity ratios
Activity Ratios
Debt ratios
Profitability ratios
Prof. Dr. Rainer Stachuletz
Corporate Finance
Berlin School of

Types of financial analysis

Developing trends can be seen using multiyear comparisons
Trend analysis - performance evaluation
over time
Firms financial ratios compared at the same
point in time
3

Prof. Dr. Rainer Stachuletz

Corporate Finance
Berlin School of

Key Financial Statements

Balance
sheet

Income
statement

Financial Managers and analysts

use financial statements to conduct:
- Performance (Ratio) Analysis
4

Prof. Dr. Rainer Stachuletz

Corporate Finance
Berlin School of

Horizontal analysis of balance

sheet

non-current assets

million million million million million

2012
2011
2010
2009
2008
24,967

6.38%
1.68%

Total assets

10,811 11,175
12,484
46,166 47,512 41,167 37,016 36,142

5.02%

Current liabilities

15,815

17,929

13,800

2.76%

Non-current liabilities

14,635

14,662

4.10%

Total liabilities

12,881 11,970
12,483
30,450 32,591 26,089 24,480 25,770

3.39%

Shareholders equity

15,159

14,293

557

628

Current assets

Non-controlling interest

34,019

33,221

12,147

14,291

28,683

13,606

14,485
593

26,205

11,599

12,065

9,948

8.79%

471

424

5.61%

Total equity

15,716 14,921

Total liabilities and

equity

46,166 47,512 41,167 37,016 36,142

15,078 12,536 10,372

8.67%
5.02%
5

Prof. Dr. Rainer Stachuletz

Corporate Finance
Berlin School of

Developing trend in 20082012

Prof. Dr. Rainer Stachuletz

Corporate Finance
Berlin School of

Trend analysis of income

statement

Turnover (
million)

2008

2009

7,167

Trend percentage 100%

Net profit (
million)

2011

2012

40,523 39,823 44,262 46,467 51,324 4.84%

Trend percentage 100% 98.27%

Operating profit
( million)

2010

5,285

Trend percentage 100%

109.23 114.67 126.65

%
%
%

5,020

6,339

6,433

6,989

0.50%

70%

88%

90%

98%

3,659

4,598

4,623

4,948

1.31%

69%

81%

86%

93%

Prof. Dr. Rainer Stachuletz

Corporate Finance
Berlin School of

Performance evaluation in 20082012

(Teachers comment: Use another
type of chart to describe easier

Prof. Dr. Rainer Stachuletz

Corporate Finance
Berlin School of

Analysis of Financial Ratios

Liquidity Ratios

Activity Ratios

Debt Ratios

Profitability Ratios

Current ratio
Quick ratio
Fixed asset turnover
Total asset turnover
Average collection period
Debt-to-equity ratio
Debs ratio
Return on sales (Gross
margin)
Return on total assets
Return on equity

Prof. Dr. Rainer Stachuletz

Corporate Finance
Berlin School of

Balance sheet

(years order
should be the sames other slides)

Goodwill and intangible

assets
Other non-current assets
Current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Shareholders equity
Non-controlling interest
Total equity
Total liabilities and
equity

million

million

2012

2011

21,718
12,301
12,147
46,166
15,815
14,635
30,450
15,159
557
15,716

21,913
11,308
14,291
47,512
17,929
14,662
32,591
14,293
628
14,921

46,166

47,512 -2.83%
10

2012/20
11
-0.89%
8.78%
-15.00%
-2.83%
-11.79%
-0.18%
-6.57%
6.06%
-11.31%
5.33%
Prof. Dr. Rainer Stachuletz
Corporate Finance
Berlin School of

Consolidated income
statement

Turnover ( million)

%
million million
2012
2011 change
51,324

46,467 10.50%

Operating profit ( million)

6,989

6,433

9%

Core operating profit* ( million)

7,062

6,289

12%

Profit before tax ( million)

6,683

6,245

7%

Net profit ( million)

4,948

4,623

7%

Diluted earnings per share ()

1.54

1.46

5%

Core earnings per share* ()

1.57

1.41

11%
11

Prof. Dr. Rainer Stachuletz

Corporate Finance
Berlin School of

Liquidity ratios
million
2012

Current
Ratio
Quick
Ratio

Current Assets
Current Liabilities

12,147
15,815

Current Assets - Inventory 12,147 - 4,436

Current Liabilities

15,815

0.768

million
2011
14,291
0.797
17,929

142910.488 4601 0.540

17929

12

Prof. Dr. Rainer Stachuletz

Corporate Finance
Berlin School of

Activity Ratios

Average
collection
period

million

million

2012

2011

Accounts receivable
4,436
4,513
31.547
35.450
Average sales per day 51,324/365
46,467/365

Fixed Asset
turnover

Sales
Net fixed assets

Total asset
turnover

Sales
total assets

51,324
9,445

51,324
46,166

5.434

46,467
8,774

5.296

1.112

46,467
47,512

0.978

13

Prof. Dr. Rainer Stachuletz

Corporate Finance
Berlin School of

Debt ratios

Debt Ratio

Debt- Equity
ratio

Total Liabilities
Total Assets

Total debt
Stockholder's equity

million

million

2012

2011

30,450
46,166

30,450
15,159

0.660

32,591
47,512

0.686

2.009

32,591
14,293

2.280

14

Prof. Dr. Rainer Stachuletz

Corporate Finance
Berlin School of

Profitability Ratios
million
2012

million
2011

Return on Sales
=
(RoS)

Net Income
Net Sales

4,948
51,324

0.096

4,623
0.099
46,467

Return on total
=
assets (RoA)

Net Income
Total assets

4,948
46,166

0.107

4,623
0.097
47,512

Return on
common Equity =
(RoE)

Net Income
stockholder's equity

4,948
4480

1.104

4,623
4252

1.087
15

Prof. Dr. Rainer Stachuletz

Corporate Finance
Berlin School of