Based on the Common size Balance sheet and income statement analysis, we ranked the companies as

below:

1. Nestle
2. Vadilal dairy
3. Prabhat dairy

Nestle:

The company has gradual increase in the Equity and long-term liabilities since 2009 till the 2018. This
shows the company had may have invested in long term asset. Also, there was relative increase in the
current investments along with decrease in the decrease in inventory levels indicates that the firm has
very quick inventory turnover which can be achieved through efficient use of resources and
improvement in day to day operations. Cash and cash equivalents also increased along with downward
movement of current liabilities, the liquidity and profitability of the firm is in very strong and also the
increase in long term loans indicates the spending of the firm were utilized for the revenue generation
and business expansion. Over all the firm has progressed.

Vadilal Dairy:

The firm had showed a decline in the long-term borrowings, increase in the reserves and surplus,
followed by the decline in current liabilities gives the strong liquidity and profitability of the firm. The
capability of the firm to pay off the debts is very high.

Decrease in the Cogs over the years followed by the increase in the gross profit, shows the profitability
of the company has been very good and cost optimization.

over the years the fixed assets were increasing, maintaining uniform inventories level. It clearly indicates
that the firm had invested on fixed assets for expansion of the business.

Prabhat Dairy:

Over the years the long-term liabilities were decreased followed by consistent decline of the fixed assets
and significant increase in current assets, shows the company is moving towards asset light model of
operations. The firm would outsource the most of the activities and focus on core activity.

There has been sudden drop of the fixed assets and sharp increase of the current assets in the last two
years of the Balance sheet and income sheet, indicates the firm have decided to sell the business.