Comparision

RATIO| YEAR| CONCLUSION| | 2009| 2010| 2011| | 1. net income margin| 8.5%| 9.5%| 9.2%| From 2009-2010: stanch signFrom 2010-2011: non good | 2. ROA| 9%| 10.3%| 8.9%| | 3. hard roe| 28%| 29%| 30%| | 4. Receivable derangement| 17.2x| 17.4x| 16x| | 5. Average collection bound| 21 days| 20.6 days| 22.4 days| | 6. Inventory turnover rate rate| 11.1x| 10.3x| 10.1x| | 7. Fixed addition turnover| 6.9x| 6.6x| 6.3x| | 8. Total asset turnover| 1.1x| 1.1x| 1x| | 9. Quick balance| 0.6| 0.6| 0,5| | 10. Current balance| 0.9| 0.9| 0.8| | 11. Debt to arrive ratio| 67.4%| 64.8%| 69.9%| | 12. Times interest earned| 10.1x| 19.1x| 17.7x| | 13. Fixed jerk coverage| 3.1x| 3.5x| 2x| | ANALYSIS: *From 2010 to 2011: Inefficient operating period Generally, financial ratios of Unilever in 2011 was non a good sign to investors and the shareh senescenters. * Profitability ratio: * Profi t margin slightly declined in 2011 (down to 9.2 %), though the gross sales change magnitude during the year. It proved that Unilever control the toll and expenses inefficiently. The costs exceeded a material amount in revenues.

That was due to the cost inflation occurred in 2011 and the expenditure on new trade (advertising, promotion) and branding dodging increased. * ROA fell off from 2010 to 2011. Because Unilever could not maximize their asset in operating. Additionally, it due to the depreciation on the old assets which did not baffle income effectively. Moreover, in 2011, Unilever increased their short-term coronation (part of current asset) to R&! D department for cornerstone which might not contribute to the revenue immediately. * roe in 2011 is toweringer than in 2010. Because the total equity reduced a little. On the early(a) hand, due to declining on profit margin, this increased in ROE resulted from an increasing in debt to total asset ratio. Therefore, ROE is postgraduate but not positive....If you want to get a satisfactory essay, order it on our website: OrderCustomPaper.com

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