Choose a public company in the food industry. Analyze the financial statements and assess whether the financial performance has improved or declined year-over-year.
Analysis techniques include the following:
Comparative financial statements
Percentage analysis© BrainMass Inc. brainmass.com October 17, 2018, 12:15 pm ad1c9bdddf
Within the food industry, Nestle's packaged foods is one of the leader companies. At the end of 2012, it made more than 14 billion USD in operating profit, supported by the +100 billion USD it made in sales alone. Its wide range of product offering- from chocolate milk to frozen pizzas- demonstrates how versatile and relevant this company is with respect to consumer preferences worldwide.
The following are a few key ratios taken from Nestle's 2012 financials, which will outlines the company's financial situation, year ending 2012. The formulas and Excel calculations are attached and within the subfolder labeled "2012 Financial Ratios."
[These numbers are in millions of CHF]
-Balance Sheet Ratios-
Working Capital = -3,548
Current Ratio = 0.91
Quick Ratio = 0.59
Debt to Equity = 1.04
-Income Statement Ratios-
Gross Margin = 0.47
Profit Margin (after tax) = 0.12
Earnings Per Share (EPS) = 3.33
Return on Shareholders' Equity (after tax) = 0.19
The Working Capital ratio shows the difference between current liabilities and current assets. In the case of immediate payments to be made, current assets will be used to pay off those current liabilities. A high working capital is an indicator of capacity to pay current liabilities on time. Nestle, in this case, has a negative working capital of -3,548,000,000 CHF (Swiss Francs), as current liabilities are more costly than the value of current assets, demonstrating that Nestle would not be in a good position at all if it were to pay its current liabilities now.
The Current Ratio highlights the relation between current assets and current liabilities. Ideally, this should be a positive number, with current assets outweighing current liabilities in the company; nevertheless, Nestle has a ratio smaller than one. This implies that the value of current liabilities owed is higher than current assets owned. This reinforces the earlier working capital figure, which showed Nestle to be in a negative situation if it were forced to pay out its current obligations right away.
The Quick Ratio strips down the Current Ratio to strictly only looking at current assets that could easily be converted to cash. This would include cash equivalents, temporary investments, and accounts receivable as the ...
This solution looks at Nestle's financials from 2011 and 2011, comparing key figures in both the balance sheet and the income statement. Trend analysis, percentage analysis, and ratios are applied to Nestle's financials, which outlines the financial situation the company is currently in. With a detailed look into Nestle's financial standing, a few conclusions are made into the company's future, alongside improvements that could be made.
Effective Commincation Case Study Analysis
Select one of the following case studies:
The selected is The Katrina Kalamity, Ch. 13, which is attached in a PDF file.
-Write a case study analysis in which you evaluate the effectiveness of communication between an organization and its publics.
*Evaluate the effectiveness of the communication between the organization and its intended public(s) in the case study, including the following:
*Identify the different publics involved in the case study. Differentiate between the internal and external publics involved. What impact did the communications have on the intended public(s)? Could the message have been communicated more effectively? How?
*Identify the different PR communication tools and techniques that were used to inform, influence, and motivate the public(s) in the case. Evaluate the benefits and risks of using these tools. What other tools would you have used?
*If this crisis were to occur today, how would new technologies, such as the Internet, affect this case? Because of the recent globalization of markets, would the outcome of this case be different if the events occurred today?
-Format according to APA standards & provide all references used.
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