Comparision

RATIO| YEAR| CONCLUSION| | 2009| 2010| 2011| | 1. net income margin| 8.5%| 9.5%| 9.2%| From 2009-2010: trustworthy 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 intent| 21 days| 20.6 days| 22.4 days| | 6. Inventory perturbation rate| 11.1x| 10.3x| 10.1x| | 7. Fixed plus 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 proportion| 0.9| 0.9| 0.8| | 11. Debt to wide-cut ratio| 67.4%| 64.8%| 69.9%| | 12. Times interest earned| 10.1x| 19.1x| 17.7x| | 13. Fixed blossom coverage| 3.1x| 3.5x| 2x| | ANALYSIS: *From 2010 to 2011: Inefficient operating period Generally, monetary ratios of Unilever in 2011 was non a good sign to investors and the shareh elderlyers. * Profitability ratio: * Profit margin slightly declined in 2011 (down to 9.2 %), though the sales change magnitude during the year. It proved that Unilever control the salute 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 selling (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 thei r short-term enthronement (part of current ! asset) to R&D department for renewal which might not contribute to the revenue immediately. * hard 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 lofty but not positive....If you want to get a sufficient essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper