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 Economics

Types of financial analysis

Developing trends can be seen using multi-year comparisons

Trend analysis - performance evaluation over time

Firms financial ratios compared at the same point in time

Prof. Dr. Rainer Stachuletz Corporate Finance Berlin School of Economics

Key Financial Statements

Balance sheet Income statement

Financial Managers and analysts use financial statements to conduct: - Performance (Ratio) Analysis
Prof. Dr. Rainer Stachuletz Corporate Finance Berlin School of Economics

Horizontal analysis of balance sheet

million 2012 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 34,019 12,147 46,166 15,815 14,635 30,450 15,159 557 15,716 46,166 million 2011 33,221 14,291 47,512 17,929 14,662 32,591 14,293 628 14,921 47,512 million 2010 28,683 12,484 41,167 13,606 12,483 26,089 14,485 593 15,078 41,167 million 2009 26,205 10,811 37,016 11,599 12,881 24,480 12,065 471 12,536 37,016 million 2008 24,967 11,175 36,142 13,800 11,970 25,770 9,948 424 10,372 36,142 6.38% 1.68% 5.02% 2.76% 4.10% 3.39% 8.79% 5.61% 8.67% 5.02%
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Prof. Dr. Rainer Stachuletz Corporate Finance Berlin School of Economics

Developing trend in 2008-2012

100,000 90,000 80,000 70,000 60,000
million

14,921

15,716

15,078
10,372 12,536 26,089 32,591 30,450

50,000 40,000 30,000 20,000 10,000 0

25,770

24,480

36,142

37,016

41,167

47,512

46,166

2008

2009

2010

2011

2012

Total assets

Total liabilities

Total equity
Prof. Dr. Rainer Stachuletz Corporate Finance Berlin School of Economics

Trend analysis of income statement

2008 Turnover ( million) 40,523 2009 39,823 2010 44,262 2011 46,467 2012 51,324 4.84%

Trend percentage
Operating profit ( million) Trend percentage Net profit ( million) Trend percentage

100%
7,167 100% 5,285 100%

98.27% 109.23% 114.67% 126.65%

5,020 70% 3,659 69% 6,339 88% 4,598 81% 6,433 90% 4,623 86% 6,989 98% 4,948 93%
Prof. Dr. Rainer Stachuletz Corporate Finance Berlin School of Economics

-0.50%

-1.31%

Performance evaluation in 2008-2012 (Teachers comment: Use another type of chart to describe easier
70,000 60,000 50,000
million

4,948
5,285 7,167 4,598 6,339 4,623 6,433 6,989

3,659 5,020

40,000 30,000 20,000 10,000 0 2008 2009 2010 2011 2012

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

Turnover ( million)

Operating profit ( million)

Net profit ( million)

Prof. Dr. Rainer Stachuletz Corporate Finance Berlin School of Economics

Analysis of Financial Ratios

Current ratio Quick ratio
Fixed asset turnover Total asset turnover Average collection period Debt-to-equity ratio Debs ratio

Liquidity Ratios

Activity Ratios

Debt Ratios

Profitability Ratios

Return on sales (Gross margin) Return on total assets Return on equity 9

Prof. Dr. Rainer Stachuletz Corporate Finance Berlin School of Economics

Balance sheet (years order should be the

sames other slides)
million million 2012/2011 2012 2011 21,718 21,913 -0.89% 12,301 11,308 8.78% 12,147 14,291 -15.00% 46,166 47,512 -2.83% 15,815 17,929 -11.79% 14,635 14,662 -0.18% 30,450 32,591 -6.57% 15,159 14,293 6.06% 557 628 -11.31% 15,716 14,921 5.33% 46,166 47,512 -2.83%
Prof. Dr. Rainer Stachuletz Corporate Finance Berlin School of Economics

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

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Consolidated income statement

million 2012
Turnover ( million) 51,324

million % change 2011

46,467 10.50%

Operating profit ( million)

Core operating profit* ( million) Profit before tax ( million) Net profit ( million) Diluted earnings per share () Core earnings per share* ()

6,989
7,062 6,683 4,948 1.54 1.57

6,433
6,289 6,245 4,623 1.46 1.41

9%
12% 7% 7% 5% 11%
Prof. Dr. Rainer Stachuletz Corporate Finance Berlin School of Economics

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Liquidity ratios
million 2012 million 2011 14,291 0.797 17,929

Current Ratio

Current Assets Current Liabilities

12,147 15,815

0.768

Quick Ratio

Current Assets - Inventory 12,147 - 4,436

Current Liabilities

15,815

142910.488 4601 0.540 17929

Prof. Dr. Rainer Stachuletz Corporate Finance Berlin School of Economics

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Activity Ratios
million 2012 million 2011

Average collection period

Fixed Asset turnover

Accounts receivable 4,436 4,513 31.547 35.450 Average sales per day 51,324/365 46,467/365 51,324 9,445

Sales Net fixed assets

5.434

46,467 8,774

5.296

Total asset turnover

Sales total assets

51,324 46,166

1.112

46,467 47,512

0.978

Prof. Dr. Rainer Stachuletz Corporate Finance Berlin School of Economics

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Debt ratios
million 2012 Total Liabilities Total Assets 30,450 46,166 million 2011 32,591 47,512

Debt Ratio

0.660

0.686

Debt- Equity ratio

Total debt Stockholder's equity

30,450 15,159

2.009

32,591 14,293

2.280

Prof. Dr. Rainer Stachuletz Corporate Finance Berlin School of Economics

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Profitability Ratios
million 2012 Return on Sales = (RoS) Net Income Net Sales 4,948 51,324 0.096 million 2011 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
Prof. Dr. Rainer Stachuletz Corporate Finance Berlin School of Economics

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