IntroductionNestle Pakistan Limited is a subsidiary of

Nestle S.A. based in Switzerland. Nestle Pakistan is principally engaged in

the manufacture, and sale of food products which include milk, yogurt, ghee, cream, coffee, juices, instant drinks and bottled water.

The company also manufactures infant cereals, breakfast cereals, prepared meals, chocolates, confectionery .

ALSO

The company markets its products under international brand names that include Nescafe, Maggi, Cereal, Milky bar, Kit Kat, Bar-One, Milkmaid, and Pure Life.

The company with three manufacturing facilities operates all over Pakistan.

NESTLE MISSION STATEMENT

We want Nestlé products to be within reach for every single Pakistani. Yet nutritional value and quality remain the most essential ingredients in all our brands.

Nestlé brands are designed to suit your lifestyle and your needs. You can take advantage of the best nutrition in a way that is suitable for your tastes and lifestyle ..

Now we will present some current ratios of Year 2009 & 2010

Formula:Current ratio=

Current Assets-Inventory / Current Liability

2010Current Ratio:

5,684,078/5,306,571Current Ratio: 1.07

2009Current Ratio:

5,623,823/5,978,522Current Ratio: 0.09

Asset turnover ratioAsset turnover ratio = sales / total

asset 2010

Asset turnover ratio: 34,183,847/16,684,176Asset turnover ratio: 3.199

2009Asset turnover ratio: 28,235,393/15,848,574

Asset turnover ratio: 1.78Interpretation:

Sales of the firm is improved as related to the total assets

Return on equityReturn on equity = net income /

common equity2010

Return on equity: 1,552,894/4,388,847Return on equity: 0.354

2009Return on equity: 1,865,212/4,111,705

Return on equity: 0.44Interpretation:

Net Income of the firm is decreased. So the return against the equity is also not good

Account Receivable TurnoverA/R Turnover= Sales/Account receivable

2010A/R Turnover: 25,231,532/1,488,103

A/R Turnover: 16.92009

A/R Turnover: 20,285,142/2,022,387A/R Turnover: 10.03

Interpretation:Firm’s management is efficiently managing its

receivable period.

Accounts Payable turnoverA/P Turnover= Sales/Accounts payable

2010A/P Turnover: 25,231,532/2,798,185

A/P Turnover: 9.012009

A/P Turnover: 20,285,142/30,624,227A/P Turnover: 6.624

Interpretation:Management is not efficient in paying its

payables.

Profit MarginProfit Margin= Net Income/Sales

2010Profit Margin: 1,552,894/34,183,847

Profit Margin: 0.0452009

Profit Margin: 1,805,212/28,235,393Profit Margin: 0.064Interpretation:

Decline in P.M shows the insufficient NI related to the sales.

Long Term Debt RatioLong Term Debt Ratio= LTD/LTD+ Total Equity

2010

Long Term Debt Ratio: 5,139,875/5,139,875+4,388,847

Long Term Debt Ratio: 0.542009

Long Term Debt Ratio: 4,028,700/4,028,700+4,111,705

Long Term Debt Ratio: 0.5

SWOT ANALYSIS

SWOT stands for strength, weakness, opportunities and threats for the company. Following is the SWOT analysis of Nestle

Repeatedly ranked as the world's largest bottled water company and have set up facilities to operate water resources in a responsible manner.

CONCLUSION

Its prices are high against its competitors but it matches its quality.

Nestle is largest food and beverage company with its mission to provide healthy life style.

Their excellent distribution channels make it available at any retailer store.

Ethical standard are big issue in Nestle US.