Scribd
Upload
29 views10 pages

Unilever

The document analyzes various financial metrics for Unilever Nepal Limited from fiscal years 2077/78 to 2080/81, including Days Sales Outstanding (DSO), Inventory Turnover Ratio (ITR), Days Inventory Held (DIH), Accounts Payable Turnover Ratio (APTR), and DuPont Analysis. Key findings indicate improvements in DSO and ROE, reflecting better receivables management and financial performance, while ITR and APTR remained consistent. The analysis recommends ongoing monitoring and optimization of inventory and accounts payable practices to sustain efficiency.

Uploaded by

nirav.paudel10
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
29 views10 pages

Unilever

The document analyzes various financial metrics for Unilever Nepal Limited from fiscal years 2077/78 to 2080/81, including Days Sales Outstanding (DSO), Inventory Turnover Ratio (ITR), Days Inventory Held (DIH), Accounts Payable Turnover Ratio (APTR), and DuPont Analysis. Key findings indicate improvements in DSO and ROE, reflecting better receivables management and financial performance, while ITR and APTR remained consistent. The analysis recommends ongoing monitoring and optimization of inventory and accounts payable practices to sustain efficiency.

Uploaded by

nirav.paudel10
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 10

Days Sales Outstanding (DSO) Analysis - Unilever Nepal Limited (2077/78-2080/81)

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.

Data Extracted from Financial Reports


The following financial data was extracted from the annual reports of Unilever Nepal
Limited for the years 2077/78 to 2080/81:

- Revenue from Operations (Net Sales):


- 2077/78: NPR 5,731,000,000
- 2078/79: NPR 7,455,000,000
- 2079/80: NPR 8,480,000,000
- 2080/81: NPR 8,239,838,658

- Trade Receivables (Accounts Receivable):


- 2077/78: NPR 982,151,912
- 2078/79: NPR 1,358,646,159
- 2079/80: NPR 1,663,743,317
- 2080/81: NPR 1,105,057,979

Formula Used for DSO Calculation


The formula used to calculate Days Sales Outstanding (DSO) is:

DSO = (Trade Receivables / Net Sales) × 365

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.

DSO Summary Table


Year Net Sales (NPR) Trade Receivables DSO (Days)
(NPR)

2077/78 5,731,000,000 982,151,912 62.55

2078/79 7,455,000,000 1,358,646,159 66.52

2079/80 8,480,000,000 1,663,743,317 71.61

2080/81 8,239,838,658 1,105,057,979 48.95


DSO Trend Graph
The graph below illustrates the DSO trends over the years 2077/78-2080/81:

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.

Inventory Turnover Ratio (ITR) Analysis - Unilever Nepal Limited (2077/78-2080/81)


This document presents the Inventory Turnover Ratio (ITR) for Unilever Nepal Limited
over the past four years (2077/78-2080/81). The ITR measures how efficiently a
company manages its inventory by calculating how many times inventory is sold and
replaced within a given period. A higher ratio indicates better inventory efficiency.

Data Extracted from Financial Reports


The following financial data was extracted from the annual reports of Unilever Nepal
Limited for the years 2077/78 to 2080/81:

- Cost of Goods Sold (COGS):


- 2077/78: NPR 5,114,387,823
- 2078/79: NPR 6,434,667,448
- 2079/80: NPR 6,184,846,830
- 2080/81: NPR 6,129,291,764

- 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

Formula Used for Inventory Turnover Ratio


The formula used to calculate Inventory Turnover Ratio (ITR) is:

ITR = COGS / Average Inventory

Where:
- COGS: Cost of Goods Sold from the income statement.
- Average Inventory: Calculated as (Beginning Inventory + Ending Inventory) / 2.

ITR Summary Table


Year COGS (NPR) Average Inventory Inventory Turnover
(NPR) Ratio (ITR)

2077/78 5,114,387,823 931,091,706 5.49

2078/79 6,434,667,448 1,071,484,942 6.01

2079/80 6,184,846,830 1,100,737,458 5.62

2080/81 6,129,291,764 1,055,855,202 5.81

ITR Trend Graph


The graph below illustrates the Inventory Turnover Ratio (ITR) trends over the years
2077/78-2080/81:
Conclusion
The analysis shows that Unilever Nepal Limited's Inventory Turnover Ratio peaked in
2078/79 at 6.01, reflecting efficient inventory utilization during that year. Minor
variations in the ratio across subsequent years indicate consistent inventory management
practices. It is recommended to sustain this efficiency by continuously monitoring
inventory levels relative to sales.

Days Inventory Held (DIH) Analysis - Unilever Nepal Limited (2077/78-2080/81)


This document presents the Days Inventory Held (DIH) for Unilever Nepal Limited over
the past four years (2077/78-2080/81). DIH measures the average number of days the
company holds inventory before it is sold. A lower DIH indicates more efficient
inventory management.

Data Extracted from Financial Reports


The following financial data was extracted from the annual reports of Unilever Nepal
Limited for the years 2077/78 to 2080/81:

- Cost of Goods Sold (COGS):


- 2077/78: NPR 5,114,387,823
- 2078/79: NPR 6,434,667,448
- 2079/80: NPR 6,184,846,830
- 2080/81: NPR 6,129,291,764
- 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

Formula Used for Days Inventory Held (DIH)


The formula used to calculate Days Inventory Held (DIH) is:

DIH = (Average Inventory / COGS) × 365

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.

DIH Summary Table


Year COGS (NPR) Average Inventory Days Inventory
(NPR) Held (DIH)

2077/78 5,114,387,823 931,091,706 66.45

2078/79 6,434,667,448 1,071,484,942 60.78

2079/80 6,184,846,830 1,100,737,458 64.96

2080/81 6,129,291,764 1,055,855,202 62.88

DIH Trend Graph


The graph below illustrates the Days Inventory Held (DIH) trends over the years
2077/78-2080/81:
Conclusion
The analysis shows that Unilever Nepal Limited's Days Inventory Held decreased in
2078/79 to 60.78 days, indicating improved inventory efficiency. Slight variations in DIH
during the subsequent years reflect a consistent approach to inventory management.
Continuous efforts in optimizing inventory levels relative to sales can help sustain and
further improve efficiency.

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.

Data Extracted from Financial Reports


The following financial data was extracted from the annual reports of Unilever Nepal
Limited for the years 2077/78 to 2080/81:

- Cost of Goods Sold (COGS):


- 2077/78: NPR 5,114,387,823
- 2078/79: NPR 6,434,667,448
- 2079/80: NPR 6,184,846,830
- 2080/81: NPR 6,129,291,764

- Average Accounts Payable:


- 2077/78: NPR 828,162,250
- 2078/79: NPR 898,198,500
- 2079/80: NPR 923,716,000
- 2080/81: NPR 903,793,000

Formula Used for Accounts Payable Turnover Ratio


The formula used to calculate Accounts Payable Turnover Ratio (APTR) is:

APTR = COGS / Average Accounts Payable

Where:
- COGS: Cost of Goods Sold from the income statement.
- Average Accounts Payable: Calculated as (Beginning Accounts Payable + Ending
Accounts Payable) / 2.

APTR Summary Table


Year COGS (NPR) Average Accounts Accounts Payable
Payable (NPR) Turnover Ratio
(APTR)

2077/78 5,114,387,823 828,162,250 6.18

2078/79 6,434,667,448 898,198,500 7.16

2079/80 6,184,846,830 923,716,000 6.70

2080/81 6,129,291,764 903,793,000 6.78

APTR Trend Graph


The graph below illustrates the Accounts Payable Turnover Ratio (APTR) trends over the
years 2077/78-2080/81:
Conclusion
The analysis shows that Unilever Nepal Limited's Accounts Payable Turnover Ratio
peaked in 2078/79 at 7.16, indicating efficient payment practices during that year. Slight
variations in the ratio across subsequent years suggest consistent management of
accounts payable. Continuous monitoring is recommended to maintain or improve
payment efficiency.

DuPont Analysis - Unilever Nepal Limited (2077/78-2080/81)


This document presents the DuPont Analysis for Unilever Nepal Limited over the past
four years (2077/78-2080/81). The DuPont Analysis breaks down the company's Return
on Equity (ROE) into three components to provide a deeper understanding of financial
performance: Net Profit Margin, Asset Turnover, and Equity Multiplier.

Data Extracted from Financial Reports


The following financial data was extracted from the annual reports of Unilever Nepal
Limited for the years 2077/78 to 2080/81:

- Net Profit (NPR):


- 2077/78: NPR 861,000,000
- 2078/79: NPR 1,196,000,000
- 2079/80: NPR 1,458,000,000
- 2080/81: NPR 1,960,000,000
- Revenue (NPR):
- 2077/78: NPR 5,731,000,000
- 2078/79: NPR 7,455,000,000
- 2079/80: NPR 8,480,000,000
- 2080/81: NPR 8,239,838,658

- Total Assets (NPR):


- 2077/78: NPR 5,141,000,000
- 2078/79: NPR 6,244,000,000
- 2079/80: NPR 6,741,000,000
- 2080/81: NPR 7,239,000,000

- Total Equity (NPR):


- 2077/78: NPR 3,681,000,000
- 2078/79: NPR 4,180,000,000
- 2079/80: NPR 4,541,000,000
- 2080/81: NPR 4,847,000,000

DuPont Analysis Formula


The DuPont Analysis formula is:
ROE = Net Profit Margin × Asset Turnover × Equity Multiplier

Where:
- Net Profit Margin = Net Profit / Revenue
- Asset Turnover = Revenue / Total Assets
- Equity Multiplier = Total Assets / Total Equity

DuPont Analysis Summary Table


Year Net Profit Asset Turnover Equity Return on
Margin Multiplier Equity (ROE)

2077/78 0.1502 1.115 1.397 0.2339


(15.02%) (23.39%)

2078/79 0.1604 1.194 1.494 0.2861


(16.04%) (28.61%)

2079/80 0.1719 1.258 1.484 0.3211


(17.19%) (32.11%)

2080/81 0.2379 1.138 1.494 0.4044


(23.79%) (40.44%)
DuPont Analysis Trend Graph
The graph below illustrates the trends for the three components of DuPont Analysis (Net
Profit Margin, Asset Turnover, and Equity Multiplier) along with the overall Return on
Equity (ROE) over the years 2077/78-2080/81:

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.

You might also like