RATIO

TASK 17

ANALYSIS

SUBMITTTED BY:_
VAIBHAV
(JUNIOR RESEARCH
(JUNIOR
SHAH
RESEARCH ANALYST
ANALYST ))
(22FMCG60 B2)
(22FMCG60 B2)
 TASK 17
Performance Ratio Analysis
Between HUL And Nestle

/

Unilever Nestle

Return on
Asset
0.92 1.67

Asset
Turnover 1.436285268 1.596408425
Ratio

Return On
3.079419904 5.879103359
Equity

Return on
Capital 0.505313812 0.53316763
Employed
 TASK 17
PERFORMANCE ANALYSIS REPORT
Between HUL And Nestle

/
Performance Ratio Analysis of the HUL
and Nestle
Return on Assets
Return on assets is a metric that indicates a company's
profitability in relation to its total assets.
ROA can be used by management, analysts, and investors to
determine whether a company uses its assets efficiently to generate
a profit.
A company's ROA by dividing its net income by its total assets.
It's always best to compare the ROA of companies within the same
industry because they'll share the same asset base.
ROA factors in a company's debt while return on equity does not.
Here we can say that nestle performs much better as it has return
on asset at 1.67 which is more than unilever. This mean that
Nestle is able to make 1.67 more than unilever.

 TASK 17
PERFORMANCE ANALYSIS REPORT
Between HUL And Nestle

/
Assets Turnover Ratio Analysis report of the
HUL and Nestle
Asset turnover ratio
Asset turnover is the ratio of total sales or revenue to average
assets.
This metric helps investors understand how effectively
companies are using their assets to generate sales.
Investors use the asset turnover ratio to compare similar
companies in the same sector or group.
A company's asset turnover ratio can be impacted by large
asset sales as well as significant asset purchases in a given year.
The higher the asset turnover ratio, the better the company is
performing, since higher ratios imply that the company is
generating more revenue per dollar of assets.
This means that Nestle is doing much better than HUL
 TASK 17
PERFORMANCE RATIO ANALYSIS REPORT
Between HUL And Nestle

/
Analysis report of the HUL and Nestle
RETURN ON EQUITY
Return on equity (ROE) is a financial ratio that shows how well a
company is managing the capital that shareholders have invested
in it.
To calculate ROE, one would divide net income by shareholder
equity.
The higher the ROE, the more efficient a company's management
is at generating income and growth from its equity financing.
ROE to compare companies, it is important to compare
companies within the same industry, as with all financial
ratios.Here the ROE of Nestle is more than HUL which mean
that every 1 rupee invested nestle provide return of 5RS when
compared to HUL.

 TASK 17
PERFORMANCE RATIO ANALYSIS REPORT
Between HUL And Nestle

/
Analysis report of the HUL and Nestle
RETURN ON CAPITAL EMPLOYED
Return on capital employed (ROCE) is a financial ratio that
measures a company’s profitability in terms of all of its capital.
Return on capital employed is similar to return on invested capital
(ROIC).
Many companies may calculate the following key return ratios in
their performance analysis: return on equity (ROE), return on
assets (ROA), return on invested capital (ROIC), and return on
capital employed.ROCE Of Nestle is more than of Unilever

According to my analysis it is better to invest in

Unilever than Nestle