Unilever
Unilever
This document presents the Days Sales Outstanding (DSO) for Unilever Nepal Limited
over the last four fiscal years (2077/78 to 2080/81). The DSO is a measure of the average
number of days it takes the company to collect payments from its customers. A lower
DSO indicates efficient receivables management.
Where:
- Trade Receivables: Accounts receivable from the balance sheet.
- Net Sales: Revenue from operations from the income statement.
- 365: Number of days in a year.
Conclusion
The analysis shows that Unilever Nepal Limited's DSO peaked in 2079/80 at 71.61 days
but significantly improved in 2080/81 to 48.95 days. This reduction indicates better
efficiency in managing accounts receivables. Continuous focus on efficient credit and
collection practices is recommended to sustain and further improve this performance.
- Average Inventory:
- 2077/78: NPR 931,091,707
- 2078/79: NPR 1,071,484,942
- 2079/80: NPR 1,100,737,458
- 2080/81: NPR 1,055,855,202
Where:
- COGS: Cost of Goods Sold from the income statement.
- Average Inventory: Calculated as (Beginning Inventory + Ending Inventory) / 2.
Where:
- Average Inventory: Calculated as (Beginning Inventory + Ending Inventory) / 2.
- COGS: Cost of Goods Sold from the income statement.
- 365: Number of days in a year.
Accounts Payable Turnover Ratio (APTR) Analysis - Unilever Nepal Limited (2077/78-
2080/81)
This document presents the Accounts Payable Turnover Ratio (APTR) for Unilever
Nepal Limited over the past four years (2077/78-2080/81). APTR measures how
efficiently a company manages its accounts payable by calculating how many times
accounts payable are paid during a given period. A higher ratio indicates efficient
payment practices.
Where:
- COGS: Cost of Goods Sold from the income statement.
- Average Accounts Payable: Calculated as (Beginning Accounts Payable + Ending
Accounts Payable) / 2.
Where:
- Net Profit Margin = Net Profit / Revenue
- Asset Turnover = Revenue / Total Assets
- Equity Multiplier = Total Assets / Total Equity
Conclusion
The analysis shows that Unilever Nepal Limited's Return on Equity (ROE) increased
steadily from 23.39% in 2077/78 to 40.44% in 2080/81. This growth was primarily
driven by an improvement in Net Profit Margin, while Asset Turnover and Equity
Multiplier showed stable trends. The company demonstrated strong financial
performance and efficient use of its equity to generate returns.