1.

VERTICAL ANALYSIS OF NESTLE

INCOME STATEMENT 2012
In case of income statement base amount is sales i.e.89721.
Income Statement
Items
Analysis Amount Analysis
Amount/Base
Amount x 100

Sales
89 721 100
Other revenue 210 0.234
Cost of goods sold 47 500 52.941
Distribution expenses 8 017 8.935
Marketing and
administration
expenses
19 041 21.222
Research and
development costs
1 413 1.574
Other trading income 141 0.157
Other trading
expenses
637 0.709
Trading operating
profit
13 464 15.006
Other operating
income
146 0.162
Other operating
expenses
222 0.247
Operating profit 13 388 14.921
Financial income 120 0.133
Financial expense 825 0.919
Profit before taxes,
associates and joint
ventures
12 683 14.136
Taxes 3 259 3.632
Share of results of
associates and joint
ventures
1 253 1.396
Profit for the year 10 677 11.900

The above table shows the vertical analysis of income statement of Nestle for 2012. The net sale
is taken as base amount and is 89721.Different items included in the income statement shows the
different percentages of sales. For example, other revenue i.e. 210 is 0.234% of sales, cost of
goods sold i.e. 47500 is 52.941% of sales, distribution expenses i.e. 8017 is 8.935% of sales,
marketing and administration expenses i.e. 19041 is 21.222% of sales and so on.
INCOME STATEMENT 2013
In case of income statement base amount is sales i.e. 92158.
Income Statement
Items
Analysis Amount Analysis
Amount/Base
Amount x 100

Sales
92 158 100
Other revenue 215 0.233
Cost of goods sold 48 111 52.204
Distribution expenses 8 156 8.850
Marketing and
administration
expenses
19 711 21.388
Research and
development costs
1 503 1.630
Other trading income 120 0.130
Other trading
expenses
965 1.047
Trading operating
profit
14 047 15.242
Other operating
income
616 0.668
Other operating
expenses
1 595 1.730
Operating profit 13 068 14.179
Financial income 219 0.237
Financial expense 850 0.922
Profit before taxes,
associates and joint
ventures
12 437 13.495
Taxes 3 256 3.533
Share of results of
associates and joint
ventures
1 264 1.371
Profit for the year 10 445 11.333

The above table shows the vertical analysis of income statement of Nestle for 2013. The net sale
is taken as base amount and is 92158.Different items included in the income statement shows the
different percentages of sales. For example, other revenue i.e. 215 is 0.233% of sales, cost of
goods sold i.e. 48111 is 52.204% of sales, distribution expenses i.e. 8156 is 8.850% of sales,
marketing and administration expenses i.e. 19711 is 21.388% of sales and so on.
BALANCE SHEET 2012
In case of balance sheet base amount is total assets i.e. 125877.
Balance Sheet Items Analysis Amount Analysis
Amount/Base
Amount x 100
Cash and cash
equivalents
5 713 4.538
Short-term
investments
3 583 2.846
Inventories 8 939 7.101
Trade and other
receivables
13 048 10.365
Prepayments and
accrued income
821 0.652
Derivative assets 576 0.457
Current income tax
assets
972 0.772
Assets held for sale 368 0.292
Total current assets 34 020 27.026
Property, plant and
equipment
26 576 21.112
Goodwill 32 688 25.968
Intangible assets 13 018 10.341
Investments in
associates and joint
ventures
11 586 9.204
Financial assets 4 979 3.955
Employee benefits
assets
84 0.066
Current income tax
assets
27 0.021
Deferred tax assets 2 899 2.303
Total non-current
assets
91 857 72.973
Total assets 125 877 100
Financial debt 18 408 14.623
Trade and other
payables
14 627 11.620
Accruals and deferred 3 078 2.445
income
Provisions 452 0.359
Derivative liabilities 423 0.336
Current income tax
liabilities
1 608 1.277
Liabilities directly
associated with assets
held for sale
1 0.00079
Total current
liabilities
38 597 30.662
Financial debt 9 008 7.156
Employee benefits
liabilities
8 360 6.641
Provisions 2 827 2.245
Deferred tax liabilities 2 240 1.779
Other payables 2 181 1.732
Total non-current
liabilities
24 616 19.555
Total liabilities 63 213 50.218
Share capital 322 0.255
Treasury shares 2 078 1.650
Translation reserve 17 924 14.239
Retained earnings and
other reserves
80 687 64.099
Total equity
attributable to
shareholders of the
parent
61 007 48.465
Non-controlling
interests
1 657 1.316
Total equity 62 664 49.781
Total liabilities and
equity
125 877 100

The above table shows the vertical analysis of balance sheet of Nestle for 2012. The total assets
are taken as base amount and are 125877. Different items included in the balance sheet shows
the different percentages of total assets. For example, cash and cash equivalents i.e. 5713 is
4.538% of total assets, short term investments i.e. 3583 is 2.846% of total assets, inventories i.e.
8939 is 7.101% of total assets, trade and other receivables i.e. 13048 is 10.365% of total assets
and so on.


BALANCE SHEET 2013
In case of balance sheet base amount is total assets i.e. 120442.
Balance Sheet
Items
Analysis
Amount
Analysis
Amount/Base
Amount x 100
Cash and cash
equivalents
6 415 5.326
Short-term
investments
638 0.529
Inventories 8 382 6.959
Trade and other
receivables
12 206 10.134
Prepayments and
accrued income
762 0.632
Derivative assets 230 0.190
Current income tax
assets
1 151 0.955
Assets held for sale 282 0.234
Total current assets 30 066 24.963
Property, plant and
equipment
26 895 22.330
Goodwill 31 039 25.770
Intangible assets 12 673 10.522
Investments in
associates and joint
ventures
12 315 10.224
Financial assets 4 550 3.777
Employee benefits
assets
537 0.196
Current income tax
assets
124 0.102
Deferred tax assets 2 243 1.862
Total non-current
assets
90 376 75.036
Total assets 120 442 100
Financial debt 11 380 9.448
Trade and other
payables
16 072 13.344
Accruals and deferred
income
3 185 2.644
Provisions 523 0.434
Derivative liabilities 381 0.316
Current income tax 1 276 1.059
liabilities
Liabilities directly
associated with assets
held for sale
100 0.083
Total current
liabilities
32 917 27.330
Financial debt 10 363 8.604
Employee benefits
liabilities
6 279 5.213
Provisions 2 714 2.253
Deferred tax liabilities 2 643 2.194
Other payables 1 387 1.151
Total non-current
liabilities
23 386 19.416
Total liabilities 56 303 46.746
Share capital 322 0.267
Treasury shares 2 196 1.823
Translation reserve 20 811 17.278
Retained earnings and
other reserves
85 260 70.789
Total equity
attributable to
shareholders of the
parent
62 575 51.954
Non-controlling
interests
1 564 1.298
Total equity 64 139 53.253
Total liabilities and
equity
120 442 100

The above table shows the vertical analysis of balance sheet of Nestle for 2013. The total assets
are taken as base amount and are 120442. Different items included in the balance sheet shows
the different percentages of total assets. For example, cash and cash equivalents i.e. 6415is
5.326% of total assets, short term investments i.e. 638 is 0.529% of total assets, inventories i.e.
8382 is 6.959% of total assets, trade and other receivables i.e. 12206 is 10.134% of total assets
and so on.




2. HORIZONTAL TREND ANALYSIS





Balance Sheet Items
Analysis
Amounts
2013

Amounts
of base
year 2012

Analysis
Amount/Ba
se Amount
x 100
LIABILITIES & EQUITY

CURRENT LIABLITIES


Balance Sheet Items
Analysis
Amounts
2013

Amounts
of base
year 2012

Analysis
Amount/B
ase
Amount x
100
The above table shows the horizontal trend analysis of balance sheet of Nestle. In this case, 2012 is
taken as the base year and the amounts of 2013 are analyzed by using the amounts of base year. E.g.
cash and cash equivalents in 2012 were 5713 and in 2013 these were 6415, which is 112.28% of base
amount i.e. an increase of 12.28%, short term investments in 2012 were 3583 and in 2013 these were
638 which is 17.80% of base amount i.e. a decrease of 82.20% and so on.
HORIZONTAL TREND ANALYSIS OF
INCOME STATEMENT

Income Statement
Items
Analysis Amounts
2013

2012(base year) Analysis
Amount/Base
Amount x 100


The above table shows the horizontal trend analysis of income statement of Nestle. In this case,
2012 is taken as the base year and the amounts of 2013 are analyzed by using the amounts of
base year. Sales are increased that shows the 102.71 analysis and yearly profit are decreased
and the analysis percentage was 97.82 percentages.
HORIZONTAL PERCENTAGE ANALYSIS OF
INCOME STATEMENT

Income Statement
Items
Analysis Amounts
2013

2012(base year) Analysis Amount-
Base Amount/
Base Amount x
100


Above table shows the horizontal percentage analysis of Nestle income statement. It clearly
represents the change in percentage during the years. For example: sales are increased by 2.71
percent, operating profit are decreased by 2.3 % and yearly profits are also decreased by 2.17
percent.
HORIZONTAL PERCENTAGE ANALYSIS OF
BALANCE SHEET
Balance Sheet Items
Analysis Amounts
2013


2012(base year) Analysis Amount-
Base Amount/
Base Amount x
100



LIABILITIES & EQUITY:

CURRENT LIABILITIES

Above tables shows the change in percentage during the years of Nestle balance sheet. It shows
that total assets are decreased by 4.31% and the total liabilities are also decreased by 10.931%.
The total of liabilities and equity are 125877 in 2012 and decreased in 2013 that is 120442 so
the percentage of this was -4.317%