Calculate the following ratios and interpret the results: (Use the information attached with the paper).   Debt to Capitalization ratio Acid test ratio Inventory turnover ratio (in days)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Calculate the following ratios and interpret the results: (Use the information attached with the paper).

 

  1. Debt to Capitalization ratio
  2. Acid test ratio
  3. Inventory turnover ratio (in days)
  4. Times interest earned ratio

 

 

G
A finmedium.com/2020/10/nestle-india-2020-annual-report/
M
BALANCE SHEET AS AT 31 DECEMBER 2019
NOTES
As at
31 December 2019 31 December 2018
(R in million)
As at
Rin million)
ASSETS
Non-current assets
Property, Plant and Equipment
Capital work-in-progress
Financial Assets
Investments
Loans
Other non-curent assets
4.
22.267.1
1,433.0
24,006.2
1,052.0
7,436.0
469.8
804.4
32.410.3
7,333.6
401.4
718.1
33,511.3
Current assets
Inventories
Financial Assets
Investments
Trade receivables
Cash and cash equivalents
Bank Balances other than cash and cash equivalents
Loans
Other financial assets
Current tax assets
Other current assets
12,830.7
9,655.5
10.074.5
1,243.3
12.931.6
148.9
124.6
557.9
19,251.3
1,245.9
15,987.7
112.9
178.9
524.9
188.5
223.9
47.369.5
B0.880.8
11
12
13
14
15
260.2
38,171.7
70.582.0
Total Assets
EQUITY AND LIABILITIES
EQUITY
Equity Share Capital
Other Equity
16
17
964.2
18,358.4
19,322.6
964.2
35,773.2
36,737.4
LIABLITES
Non-current liabilitles
Financial Liabilities
Borrowings
Provisions
Deferred tax liabilities (net)
Other non-current liabilities
531.4
29,069.1
179.5
4.3
29,784.3
351.4
24,649.2
588.2
5.1
25,593.9
Current liabilities
Financial Liabilities
Trade payables
Total outstanding dues of micro enterprises and small enterprises
Total outstanding dues of creditors other than micro enterprises
and small enterprises
Other financial liabilities
Provisions
Current tax liabilities
Other current liabilities
340.2
14,606.7
46
107.7
12,296.0
4,314.8
854.6
19.2
1,339.6
21.475.1
70.582.0
23
3,161.8
1,572.6
24
1,411.4
18.549.5
80.880.8
Total Equity and liabilities
7:44 AM
8/9/2021
近
Transcribed Image Text:G A finmedium.com/2020/10/nestle-india-2020-annual-report/ M BALANCE SHEET AS AT 31 DECEMBER 2019 NOTES As at 31 December 2019 31 December 2018 (R in million) As at Rin million) ASSETS Non-current assets Property, Plant and Equipment Capital work-in-progress Financial Assets Investments Loans Other non-curent assets 4. 22.267.1 1,433.0 24,006.2 1,052.0 7,436.0 469.8 804.4 32.410.3 7,333.6 401.4 718.1 33,511.3 Current assets Inventories Financial Assets Investments Trade receivables Cash and cash equivalents Bank Balances other than cash and cash equivalents Loans Other financial assets Current tax assets Other current assets 12,830.7 9,655.5 10.074.5 1,243.3 12.931.6 148.9 124.6 557.9 19,251.3 1,245.9 15,987.7 112.9 178.9 524.9 188.5 223.9 47.369.5 B0.880.8 11 12 13 14 15 260.2 38,171.7 70.582.0 Total Assets EQUITY AND LIABILITIES EQUITY Equity Share Capital Other Equity 16 17 964.2 18,358.4 19,322.6 964.2 35,773.2 36,737.4 LIABLITES Non-current liabilitles Financial Liabilities Borrowings Provisions Deferred tax liabilities (net) Other non-current liabilities 531.4 29,069.1 179.5 4.3 29,784.3 351.4 24,649.2 588.2 5.1 25,593.9 Current liabilities Financial Liabilities Trade payables Total outstanding dues of micro enterprises and small enterprises Total outstanding dues of creditors other than micro enterprises and small enterprises Other financial liabilities Provisions Current tax liabilities Other current liabilities 340.2 14,606.7 46 107.7 12,296.0 4,314.8 854.6 19.2 1,339.6 21.475.1 70.582.0 23 3,161.8 1,572.6 24 1,411.4 18.549.5 80.880.8 Total Equity and liabilities 7:44 AM 8/9/2021 近
G
A finmedium.com/2020/10/nestle-india-2020-annual-report/
M
P&L
STATEMENT OF PROFIT AND LOSS
FOR THE YEAR ENDED 31 DECEMBER 2019
NOTES
Year ended
Year ended
31 December 2019
31 December 2018
(Rin million)
(t in million)
A INCOME
Domestic Sales
116,567.9
105,075.4
Export Sales
6,384.8
7,086.9
Sale of products
32
122.952.7
112,162.3
Other operating revenues
25
736.3
760.4
123,689.0
112,922.7
i Revenue from operations
i Other Income
26
2,468.8
126,157.8
2,589.2
Total Income
115,511.9
B EXPENSES
i Cost of materials consumed
27
51,503.0
43,656.8
i Purchases of stock-in-trade
2,178.1
2,305.6
i Changes in inventories of finished goods, work-in- 28
progress and stock-in-trade
iv Employee benefits expense
v Finance costs lincluding interest cost on employee 30
benefit plans)
(1,441.9)
(60.1)
29
12.629.5
11,241.5
1,198.3
1,119.5
vi Depreciation and Amortisation
vii Other expenses
4
3,163.6
3,356.7
31
29.545.4
28,181.1
vi Impairment loss on property, plant and equipment 4
110.8
Net provision for contingencies
36
ix -Operations
248.8
621.7
-Others
248.8
415.1
1036.8
xi Corporate social responsibility expense
273.7
91,222.4
37
383.1
Total Expenses
99,407.9
C PROFIT BEFORE TAX (A-8)
D Tax expense
26,749.9
24.289.5
Current tax
38
7,470.0
8,848.7
Deferred tax
38
(415.6)
7,054.4
(628.5)
8,220.2
E PROFIT AFTER TAX (C-D)
19,695.5
16,069.3
7:54 AM
8/9/2021
Transcribed Image Text:G A finmedium.com/2020/10/nestle-india-2020-annual-report/ M P&L STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31 DECEMBER 2019 NOTES Year ended Year ended 31 December 2019 31 December 2018 (Rin million) (t in million) A INCOME Domestic Sales 116,567.9 105,075.4 Export Sales 6,384.8 7,086.9 Sale of products 32 122.952.7 112,162.3 Other operating revenues 25 736.3 760.4 123,689.0 112,922.7 i Revenue from operations i Other Income 26 2,468.8 126,157.8 2,589.2 Total Income 115,511.9 B EXPENSES i Cost of materials consumed 27 51,503.0 43,656.8 i Purchases of stock-in-trade 2,178.1 2,305.6 i Changes in inventories of finished goods, work-in- 28 progress and stock-in-trade iv Employee benefits expense v Finance costs lincluding interest cost on employee 30 benefit plans) (1,441.9) (60.1) 29 12.629.5 11,241.5 1,198.3 1,119.5 vi Depreciation and Amortisation vii Other expenses 4 3,163.6 3,356.7 31 29.545.4 28,181.1 vi Impairment loss on property, plant and equipment 4 110.8 Net provision for contingencies 36 ix -Operations 248.8 621.7 -Others 248.8 415.1 1036.8 xi Corporate social responsibility expense 273.7 91,222.4 37 383.1 Total Expenses 99,407.9 C PROFIT BEFORE TAX (A-8) D Tax expense 26,749.9 24.289.5 Current tax 38 7,470.0 8,848.7 Deferred tax 38 (415.6) 7,054.4 (628.5) 8,220.2 E PROFIT AFTER TAX (C-D) 19,695.5 16,069.3 7:54 AM 8/9/2021
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education