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Unilever Horizontal Analysis

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Unilever Horizontal Analysis

Ratios | | Liquidity | | | 2014 | 2013 | Current Ratio | | | 0,63 | 0,70 | Acid test retio | | | 34,52 | 44,14 | Accounts receivable turnover | | 99,62 | 198,72 | Accounts receivable turnover days | | 4 | 2 | Inventory turnover | | | 6,81 | 7,38 | | | | | | | | | | | Profitability | | | 2014 | 2013 | Profit margin | | | 0,08 | 0,07 | Asset turnover | | | 1,10 | 1,05 | Return on assets | | | 0,09 | 0,08 | Return ordinary shareholders equity | | -31,07 | -25,60 | Earnings per share (EPS) | | | -181,63 | -178,35 | Price-earnings (PE) ratio | | | 3,07 | 3,92 | Payout ratio | | | 0,22 | 0,21 | | | | | | | | | | | Solvency Ratios | | | 2013 | 2014 | Debt to total assets | assets ratio | | 0,28 | 0,16 | Times interest earned | | | -0,02 | -0,01 |

Sub-conclusion Unilever:

Ratios:
The liquidity of Unilever went through a big change between 2013 and 2014. Their accounts receivable turnover decreased dramatically while the accounts receivable turnover days doubled. The current ratio and acid test ratio decreased what is not good for the liquidity. However the acid test ratio is still remarkably high.
Examining the profitability we find that the profit margin and return on assets are a bit low but increasing compared to 2013. Furthermore are all profitability ratios slowly increasing except for the payout ratio. That could indicate more money is invested in the company to increase growth. The solvency of Unilever is not in a good state. The debt to total assets is relatively low but rapidly increasing. And the times interest earned is very low but also rapidly increasing. This could mean the company is investing more which caused the debt to total assets to increase and using those investments they increase their income

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