Identify rules and principles in the international accounting standards and financial regulations and core values in business that led to competitive advantage
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Module |
Business and Financial Analysis |
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Assignment Title |
BFA Written Coursework Assignment |
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Assignment Type |
Individual Assignment |
London School of business and finance
Learning Outcomes On successful completion of this assignment you will be able to:
1. Identify rules and principles in the international accounting standards and financial regulations and core values in business that led to competitive advantage
2. Demonstrate an in-depth knowledge in the sphere of business and financial analysis with a view to corporate evaluation.
3. Critically assess businesses and accounting data and financial information available to make investment decisions.
4. Discuss the linkage between current theory and common practice and be able to organise appropriate evidence and reasoning to produce a balanced conclusion in business and financial analysis
5. Demonstrate problem solving and analytical approaches to facilitate effective business and financial decision-making.
Your Task Question 1
Below are presented consolidated financial statements for Nestl, a Swiss transnational company and the worlds food and beverage leader.
The companys headquarter is set in Vevey, Vaud, Switzerland. Nestl prepares its financial statements under IFRS.
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Balance Sheet |
|
|
|
(In millions of CHF) |
12/2017 |
12/2018 |
|
ASSETS |
|
|
|
Cash and cash equivalents |
7,938 |
4,500 |
|
Short-term investments |
655 |
5,801 |
|
Trade and other receivable |
12,422 |
11,167 |
|
Inventories |
9,061 |
9,125 |
|
Assets held for sale |
357 |
8,828 |
|
Other current assets |
1,757 |
1,582 |
|
Total current assets |
32,190 |
41,003 |
|
Intangibles |
20,615 |
18,634 |
|
Property, plant, equipment |
27,775 |
29,956 |
|
Goodwill |
29,748 |
31,702 |
|
Investments in associates and JV |
11,628 |
10,792 |
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Financial and other non-current assets |
8,424 |
4,928 |
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Total non-current assets |
98,190 |
96,012 |
|
---------------------------------------------------- |
|
|
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TOTAL ASSETS |
130,380 |
137,015 |
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LIABILITIES & EQUITY |
|
|
|
Trade and other payables |
18,872 |
17,800 |
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Financial debt |
10,536 |
14,694 |
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Accruals and deferred income |
4,094 |
4,075 |
|
Other current liabilities |
2,552 |
6,461 |
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Total current liabilities |
36,054 |
43,030 |
|
Financial debt |
15,932 |
25,700 |
|
Employee benefits liabilities |
7,111 |
5,919 |
|
Other non-current liabilities |
8,506 |
3,963 |
|
Total non-current liabilities |
31,549 |
35,582 |
|
Share capital |
311 |
306 |
|
Treasure shares |
-4,537 |
-6948 |
|
Translation reserve |
-19,433 |
-20,432 |
|
Retained earnings |
84,174 |
84,620 |
|
Other equities |
989 |
-183 |
|
Shareholders` equity |
61,504 |
57,363 |
|
Non-controlling interests |
1,273 |
1,040 |
|
TOTAL LIABILITIES & EQUITY |
130,380 |
137,015 |
|
Income Statements |
|
|
|
(In millions of CHF) |
12/2017 |
12/2018 |
|
Net sales |
89,791 |
91,439 |
|
Other revenues |
441 |
348 |
|
Cost of goods sold |
-44,923 |
-46,070 |
|
Other expenses |
-32,076 |
-31,928 |
|
Gross profit |
13,233 |
13,789 |
|
Other operating income (expense) |
-3,121 |
-37 |
|
Operating profit |
10,112 |
13,752 |
|
EBITDA |
9,493 |
12,991 |
|
Other non-operating income (expense) |
