| Nestle SA |
| In millions |
| (except for data per share and employees) |
| 2013 and 2014 |
| | 2013 | 2014 |
| Results |
| Sales 92 158 91 612 | 92158 | 91612 |
| Trading operating profit | 14,047 | 14,019 |
| as % of sales | 15.24% | 15.30% |
| Profit for the period attributable to shareholders of the parent (Net profit) | 10015 | 14456 |
| as % of sales | 10.87% | 15.78% |
| Balance sheet and Cash flow statement |
| Equity attributable to shareholders of the parent | 62,575 | 70,130 |
| Net financial debt | 14,690 | 12,325 |
| Ratio of net financial debt to equity (gearing) | 23.48% | 17.57% |
| Operating cash flow | 14,992 | 14,700 |
| as % of net financial debt | 102.06% | 119.27% |
| Free cash flow | 10,486 | 14,137 |
| Capital expenditure | 4,928 | 3,914 |
| as % of sales | 5.35% | 4.27% |
| Data per share |
| Weighted average number of shares outstanding (in millions of units) | 3,191 | 3,188 |
| Basic earnings per share | 3.14 | 4.54 |
| Dividend as proposed by the Board of Directors of Nestlé S.A. | 2.15 | 2.20 |
| Market capitalisation, end December 31st | 208,279 | 231,136 |
| Number of employees (in thousands) | 333 | 339 |
| Retrieved from: https://www.nestle.com/asset-library/documents/library/documents/annual_reports/2014-annual-report-en.pdf |
| Referring (Fisher & Krumwiede, 2015), review the above financial information and answer the following questions |
| 1. Did Nestle S.A.'s financial position improve or decline from 2013 to 2014? |
| 2. Give at least three indications that support your answer in question #1. |
| 3. Why do you think sales decreased from 2013 to 2014 and yet net profit increased? |
CBUNN
BBA_3620_Unit_V_FinancialAnalysis_table.xlsx
