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 farthest| 21 days| 20.6 days| 22.4 days| | 6. Inventory turnover rate| 11.1x| 10.3x| 10.1x| | 7. Fixed asset 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 proportionality| 0.9| 0.9| 0.8| | 11. Debt to match ratio| 67.4%| 64.8%| 69.9%| | 12. Times interest earned| 10.1x| 19.1x| 17.7x| | 13. Fixed pull 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 honest-to-goodnessers. * Profitability ratio: * Profit margin slightly declined in 2011 (down to 9.2 %), though the gross sales change magnitude during the year. It proved that Unilever control the be and expenses inefficiently. The comprises 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 maximise their asset in operating. Additionally, it due to the depreciation on the old assets which did not baffle income effectively. Moreover, in 2011, Unilever i ncreased their short-term investiture (part! of current asset) to R&D department for world 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 senior high school but not positive....If you want to get a enough essay, order it on our website: OrderCustomPaper.com

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