1. Analysis of Unilever’s
financial Statements
By: Thao Ho
Class: Myriam English practice

2. Prof. Dr. Rainer Stachuletz
Corporate Finance
Berlin School of
Content
1. Types of financial analysis
2. Key Financial Statements
3. Analysis of key financial Statements
 Horizontal analysis of balance sheet
 Trend analysis of income statement
4. Analysis of Financial Ratios
 Liquidity ratios
 Activity Ratios
 Debt ratios
 Profitability ratios

3. Prof. Dr. Rainer Stachuletz
Corporate Finance
Berlin School of
Types of financial analysis
3
Developing trends can be seen using multi-year
comparisons
Trend analysis - performance evaluation over time
Firms’ financial ratios compared at the same point
in time

4. Prof. Dr. Rainer Stachuletz
Corporate Finance
Berlin School of
Key Financial Statements
4
Balance
sheet
Income
statement
Financial Managers and analysts
use financial statements to conduct:
- Performance (Ratio) Analysis

5. Prof. Dr. Rainer Stachuletz
Corporate Finance
Berlin School of
Horizontal analysis of balance sheet
5
€ million € million € million € million € million
𝐶𝐶𝐶𝐶
2012 2011 2010 2009 2008
non-current assets 34,019 33,221 28,683 26,205 24,967 6.38%
Current assets 12,147 14,291 12,484 10,811 11,175 1.68%
Total assets 46,166 47,512 41,167 37,016 36,142 5.02%
Current liabilities 15,815 17,929 13,606 11,599 13,800 2.76%
Non-current liabilities 14,635 14,662 12,483 12,881 11,970 4.10%
Total liabilities 30,450 32,591 26,089 24,480 25,770 3.39%
Shareholders’ equity 15,159 14,293 14,485 12,065 9,948 8.79%
Non-controlling interest 557 628 593 471 424 5.61%
Total equity 15,716 14,921 15,078 12,536 10,372 8.67%
Total liabilities and equity 46,166 47,512 41,167 37,016 36,142 5.02%

6. Prof. Dr. Rainer Stachuletz
Corporate Finance
Berlin School of
Developing trend in 2008-2012
6

7. Prof. Dr. Rainer Stachuletz
Corporate Finance
Berlin School of
Trend analysis of income
statement
7
2008 2009 2010 2011 2012 𝐶𝐶𝐶𝐶
Turnover (€ million) 40,523 39,823 44,262 46,467 51,324 4.84%
Trend percentage 100% 98.27% 109.23% 114.67% 126.65%
Operating profit (€
million)
7,167 5,020 6,339 6,433 6,989 -0.50%
Trend percentage 100% 70% 88% 90% 98%
Net profit (€ million) 5,285 3,659 4,598 4,623 4,948 -1.31%
Trend percentage 100% 69% 81% 86% 93%

8. Prof. Dr. Rainer Stachuletz
Corporate Finance
Berlin School of
Performance evaluation in 2008-2012
(Teacher’s comment: Use another type of
chart to describe easier
8

9. Prof. Dr. Rainer Stachuletz
Corporate Finance
Berlin School of
Analysis of Financial Ratios
9
•Current ratio
• Quick ratio
• Fixed asset turnover
• Total asset turnover
• Average collection period
• Debt-to-equity ratio
• Debs ratio
• Return on sales (Gross
margin)
• Return on total assets
• Return on equity
Activity Ratios
Debt Ratios
Profitability Ratios
Liquidity Ratios

10. Prof. Dr. Rainer Stachuletz
Corporate Finance
Berlin School of
Balance sheet (years order should be the
sames other slides)
10
€ million € million
2012/2011
2012 2011
Goodwill and intangible assets 21,718 21,913 -0.89%
Other non-current assets 12,301 11,308 8.78%
Current assets 12,147 14,291 -15.00%
Total assets 46,166 47,512 -2.83%
Current liabilities 15,815 17,929 -11.79%
Non-current liabilities 14,635 14,662 -0.18%
Total liabilities 30,450 32,591 -6.57%
Shareholders’ equity 15,159 14,293 6.06%
Non-controlling interest 557 628 -11.31%
Total equity 15,716 14,921 5.33%
Total liabilities and equity 46,166 47,512 -2.83%

11. Prof. Dr. Rainer Stachuletz
Corporate Finance
Berlin School of
Consolidated income statement
11
€ million
2012
€ million
2011
% change
Turnover (€ million) 51,324 46,467 10.50%
Operating profit (€ million) 6,989 6,433 9%
Core operating profit* (€ million) 7,062 6,289 12%
Profit before tax (€ million) 6,683 6,245 7%
Net profit (€ million) 4,948 4,623 7%
Diluted earnings per share (€) 1.54 1.46 5%
Core earnings per share* (€) 1.57 1.41 11%

12. Prof. Dr. Rainer Stachuletz
Corporate Finance
Berlin School of
Liquidity ratios
12
€ million
2012
€ million
2011
Current
Ratio
=
Current Assets
Current Liabilities
12,147
15,815
0.768
14,291
17,929
0.797
Quick
Ratio
=
Current Assets - Inventory
Current Liabilities
12,147 - 4,436
15,815
0.488
14291-
4601
17929
0.540

13. Prof. Dr. Rainer Stachuletz
Corporate Finance
Berlin School of
Activity Ratios
13
€ million € million
2012 2011
Average
collection
period
=
Accounts receivable
Average sales per day
4,436
51,324/365
31.547
4,513
46,467/365
35.450
Fixed Asset
turnover
=
Sales
Net fixed assets
51,324
9,445
5.434
46,467
8,774
5.296
Total asset
turnover
=
Sales
total assets
51,324
46,166
1.112
46,467
47,512
0.978

14. Prof. Dr. Rainer Stachuletz
Corporate Finance
Berlin School of
Debt ratios
14
€ million € million
2012 2011
Debt Ratio =
Total Liabilities
Total Assets
30,450
46,166
0.660
32,591
47,512
0.686
Debt- Equity
ratio
=
Total debt
Stockholder's equity
30,450
15,159 2.009
32,591
14,293
2.280

15. Prof. Dr. Rainer Stachuletz
Corporate Finance
Berlin School of
Profitability Ratios
15
€ million € million
2012 2011
Return on Sales
(RoS)
=
Net Income
Net Sales
4,948
51,324
0.096
4,623
46,467
0.099
Return on total
assets (RoA)
=
Net Income
Total assets
4,948
46,166
0.107
4,623
47,512
0.097
Return on
common Equity
(RoE)
=
Net Income
stockholder's equity
4,948
4480
1.104
4,623
4252
1.087