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Contents
INTRODUCTION: (UNILEVER) ............................................................................................... 3 Our Vision: ........................................................................................................................... 4 Our People: .......................................................................................................................... 4 Unilever Corporate Purpose: ............................................................................................... 5 Purpose and Principles: ....................................................................................................... 5 Common Size Financial Statements: ................................................................................... 6 Types of Common Size Financial Statement: ................................................................... 6 Common Size Income Statement: ....................................................................................... 6 Common Size Balance Sheet: .............................................................................................. 7 Advantages And Disadvantages of Common Size Statement: ............................................ 7 Disadvantages of Common Size Statement: .................................................................... 7 Analysis: ............................................................................................................................... 8 Income Statement: ........................................................................................................... 8 Net Profit:...................................................................................................................... 8 The companys net profit in 2010 as in the comparison of 2009 but slant decrement in 2011. ......................................................................................................................... 8 Balance Sheet: ..................................................................................................................... 8
Assets: ......................................................................................................................................... 8 Liabilities:................................................................................................................................... 10 Equity:........................................................................................................................................ 11 Conclusion: .................................................................................................................................... 12
INTRODUCTION: (UNILEVER)
No matter who you are, or where in the world you are, the chances are that our products are a familiar part of your daily routine. Every day, around the world, people reach for Unilever products Unilever Pakistan (70.4% Unilever equity) is the largest FMCG Company in Pakistan, as well as one of the largest multinationals operating in the country. Unilever Pakistan began its operations in 1948, the Company has been closely connected to the Pakistani people and its brands have been a fundamental feature in their daily lives. In fact, the nature of our business enables our brands to be the pulse and heartbeat of the 164 million people in Pakistan. Unilever is one of the worlds leading suppliers of fast-moving consumer goods. We aim to provide people the world over with products that are good for them and good for others.
Our Vision:
1. We work to create a better
future every day. 2. We help people feel good, look good and get more out of life with brands and services that are good for them and good for others. 3. We will inspire people to take small everyday actions that can add up to a big difference for the world. 4. We will develop new ways of doing business that will allow us to double the size of our company while reducing our environmental impact.
Our People:
People are the heart of our business.
Common size income statement analysis allows an analyst to determine how the various components of the income statement affect a company's profit.
The image above illustrates the difference between a regular balance sheet and a common size balance sheet. In the normal balance sheet, account values are expressed in dollar terms, while in the common size one, each value is listed as a percentage of total assets. This is also done for liabilities, where each liability account is a percentage of total liabilities.
Consistency Required: If Financial Statement of a Particular business organization are not prepared year after year on a consistent basis comparative study of common size statement will be misleading.
Analysis:
Income Statement:
A financial statement that measures a company's financial performance over a specific accounting period. Financial performance is assessed by giving a summary of how the business incurs its revenues and expenses through both operating and non-operating activities. It also shows the net profit or loss incurred over a specific accounting period, typically over a fiscal quarter or year. It is also known as the "profit and loss statement" or "statement of revenue and expense".
Net Profit:
In business, what remains after subtracting all the costs (namely business, depreciation, interest, and taxes) from a company's revenues? Net income is sometimes called the bottom line. It is also called earnings or net profit. For an individual, gross income minus taxes, allowances, and deductions. An individual's net income is used to determine how much income tax is owed.
The companys net profit in 2010 as in the comparison of 2009 but slant decrement in 2011.
Balance Sheet:
Assets:
Non - Current Assets: Noncurrent assets are capitalized rather than expensed,
meaning that the company allocates the cost of the asset over the number of years for which the asset will be in use, instead of allocating the entire cost to the accounting year in which the asset was purchased.
Current Assets: A balance sheet item which equals the sum of cash and cash
equivalents, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that could be converted to cash in less than one year.
A company's creditors will often be interested in how much that company has in current assets, since these assets can be easily liquidated in case the company goes bankrupt.
Assets
80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Non- current Assets Current Asset years 2010 years 2011
The non-current asset in 2010 was 69.56% as it increases to 69.92% in 2011. The element in balance sheet which increases and decreases in the balance sheet of 2011 the companys intangible assets increases by 2.41% in 2011, deferred tax assets which decreases by 0.58%, Property, plant and equipment decreases by 0.61%, the companys goodwill also decreases in year 2011 by 0.57% and its financial assets also decreases by in 2011 by 0.23%. Thus above mention all the fundamentals increases in the year 2011 which decreases the current assets of the company. In current assets fundamentals also fluctuate in year 2011 as inventories decreases by 0.78%, the cash and cash equivalents increases in 2011 and its other financial assets also increases.
Liabilities:
40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Non-Current Liablities Current Liabilities years 2011 years 2010
Liabilities
Current liabilities: A balance sheet item which equals the sum of all money owed by a company and due within one year also called payables or current debt. Non current liabilities: Debt not due to be paid within the next year. The non-current liabilities increases in 2011 by 0.53% and the current liabilities are increases by 4.69% because the companys current financial debts are increased by 6.76% in 2011.
Equity:
38.00% 37.00% 36.00% 35.00% 34.00% 33.00% 32.00% 31.00% 30.00% 29.00% 28.00% 2011 2010 2011 2010
Equity is the residual claim or interest of the most junior class of investors in assets, after all liabilities are paid. If liability exceeds assets, negative equity exists. In an accounting context, Shareholders' equity (or stockholders' equity, shareholders' funds, shareholders' capital or similar terms) represents the remaining interest in assets of a company, spread among individual shareholders of common or preferred stock. The companys equity decreases by 5.22% in the year 2011, because the companys shareholder equity decreases.
Conclusion:
The common size statement helps to do the analysis of the company, at what position the company stands on the basis of shareholders performance and its profit oriented area. As unilever is the multinational company, which makes so, many brands, above we have done the analysis that at what stage company stands.