Problem and challenges of Nestle

2.0 Financial Ratio
2.1 Liquidity Ratios
2.1.1 Current Ratio =
Year
NESTLE BERHAD (‘000)
DUTCH LADY MILK BERHAD (‘000)
2010

= 1.0873 times

= 2.2044 times
2011

= 1.1097 times

= 2.3980 times
2012

= 0.9046 times

= 1.9069 times

2.1.2 Quick Ratio =
Year
NESTLE BERHAD (‘000)
DUTCH LADY MILK BERHAD (‘000)
2010

= 0.5595 times

= 1.5200 times
2011

= 0.5439 times

= 1.7073 times
2012

= 0.4622 times

= 1.3705 times

2.2 Efficiency/ Assets Management/ Activity Ratios
2.2.1 Inventory Turnover =
Year
NESTLE BERHAD
DUTCH LADY MILK BERHAD
2010

= 704.7969%

= 615.9910%
2011

= 610.3249%

= 541.6649%
2012

= 730.4130%

= 617.0417%

2.2.2 Average Collection Period =
Year
NESTLE BERHAD
DUTCH LADY MILK BERHAD
2010

= 33 days

= 39 days
2011

= 35 days

= 17 days
2012

= 32 days

= 7 days

2.2.3 Fixed Assets Turnover =
Year
NESTLE BERHAD
DUTCH LADY MILK BERHAD
2010

= 404.7316%

= 970.1390%
2011

= 476.1662%

= 1094.7588%
2012

= 428.0478%

= 1187.8959%

2.2.4 Total Assets Turnover =
Year
NESTLE BERHAD
DUTCH LADY MILK BERHAD
2010

= 226.3654%

= 231.0930%
2011

= 234.7770%

= 203.4174%
2012

= 239.1611%

= 230.4699%

2.3 Financial Leverage Management Ratios
2.3.1 Debt Ratio =
Year
NESTLE BERHAD
DUTCH LADY MILK BERHAD
2010

= 65.5174 times

= 35.7794 times
2011

= 67.9942 times

= 34.9699 times
2012

= 60.5701 times

= 43.5348 times

2.3.2 Debt to Equity =
Year
NESTLE BERHAD
DUTCH LADY MILK BERHAD
2010

= 72.4611times

= 1.9025 times
2011

= 69.7068 times

= 1.5632 times
2012

= 29.8947 times

= 2.2458 times

2.3.3 Times Interest Earned =
Year
NESTLE BERHAD
DUTCH LADY MILK BERHAD
2010

= 22.4936 times

= 0 times
2011

= 27.1150 times

= 155.0294 times
2012

= 32.6759 times

= 58.9319 times

2.4 Profitability Ratios
2.4.1 Gross