Download Annual Report 2012 of Nestle (Malaysia) Berhad from Bursa Malaysia’s website at:
Analyze and interpret the financial report in approximately 10 pages. You must compare and analyze two consecutive financial years (2011 and 2012) using ratio analysis. Your analysis should include:
1) Introduction: Background of the company and industry.
2) Profitability ratios: Return on capital employed, Gross Profit Margin and Net Profit Margin
3) Efficiency ratios: Inventory days, Receivables days and Payable days
4) Liquidity ratios: Current ratio and Quick ratio
5) Shareholders’ ratio: Earnings per share, Price Earnings ratio and Dividend yield
Note: For each of the ratio, you are required to show the calculations in arriving at your answers. You are also required to analyze the changes in each of the ratio by indicating whether there is an improvement or deterioration in the ratio over the two years and provide reasons for such movements.