Selected ratios formulars Unilever 2021 BOPP 2021 ROCE PBIT / net assets * 100 (32,424/39,406 *100 = - 82% 102,154 / 192,758 *100 =53% Net Assets Turnover Revenue / Net Assets 526,912 / 39,406 = 13 times 214,174 / 192,758 = 1 time Gross Profit Margin Gross profit / revenue *100 97,046 / 526,912 *100 18.4% 115,462 / 214,174 * 100 54% Net Profit Before Tax PBT / revenue * 100 (35,005) / 526,912* 100 = -6.6% 104,778 / 214,174* 100 =48.9% Current Ratio Current assets / current liabilities 214,665/341,171 = 0.5 139,104 / 30,368 = 4.5 Quick Ratio Current assets – inventory / current liabilities 214,665-91,627 /341,171 = 0.4 139,104 -13,248/ 30,368 = 4.1 Inventory Days Inventory / cost of sales * 365 days 91,627/ 429,866 *365 = 77 days 13,248 / 101,397 *365 = 47 days Receivable Days Receivables / cost of sales * 365 days 24,515 / 429,866 *365 =20 days 92,860 / 101,397 *365 =334 days Payable Days Payables / cost of sales * 365 days 91,907 / 429,866 *365 =78 days 17,155 / 101,397 *365 =61 days Debt To Equity Total debt / total equity * 100 4,236 / 35,170 *100 =12.04% 8,116 / 184,639 *100 =4.39% Required: Present a detailed report as an external analyst to your client advising on which comapny is the best to invest in.
Solution to Ratio Analysis Questions
|
Selected ratios |
formulars |
Unilever 2021 |
BOPP 2021 |
|
ROCE |
PBIT / net assets * 100 |
(32,424/39,406 *100 = - 82% |
102,154 / 192,758 *100 =53% |
|
Net Assets Turnover |
Revenue / Net Assets |
526,912 / 39,406 = 13 times |
214,174 / 192,758 = 1 time |
|
Gross Profit Margin |
Gross profit / revenue *100 |
97,046 / 526,912 *100 18.4% |
115,462 / 214,174 * 100 54% |
|
Net Profit Before Tax |
PBT / revenue * 100 |
(35,005) / 526,912* 100 = -6.6% |
104,778 / 214,174* 100 =48.9% |
|
Current Ratio |
Current assets / current liabilities |
214,665/341,171 = 0.5 |
139,104 / 30,368 = 4.5 |
|
Quick Ratio |
Current assets – inventory / current liabilities |
214,665-91,627 /341,171 = 0.4 |
139,104 -13,248/ 30,368 = 4.1 |
|
Inventory Days |
Inventory / cost of sales * 365 days |
91,627/ 429,866 *365 = 77 days |
13,248 / 101,397 *365 = 47 days |
|
Receivable Days |
Receivables / cost of sales * 365 days |
24,515 / 429,866 *365 =20 days |
92,860 / 101,397 *365 =334 days |
|
Payable Days |
Payables / cost of sales * 365 days |
91,907 / 429,866 *365 =78 days |
17,155 / 101,397 *365 =61 days |
|
Debt To Equity |
Total debt / total equity * 100 |
4,236 / 35,170 *100 =12.04% |
8,116 / 184,639 *100 =4.39% |
Required: Present a detailed report as an external analyst to your client advising on which comapny is the best to invest in.
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