Financial Analysis Report Of Unilever And Colgate Palmolive

2293 words - 9 pages

A FINANCIAL ANALYSIS REPORT OFUNILEVER &COLGATE - PALMOLIVEPrepared byNguyễn Phương ThảoNguyễn Mạnh QuânNguyễn Minh ThủyLê Trọng KhánhLê Phương DungProfessor: Pham Sy LongEXECUTIVE SUMMARYThis financial analysis report examines two big competitors within the household and personal products industry: Unilever and Colgate - Palmolive (or Colgate). Overall companies' performance, financial health along with industry's trend will be considered and evaluated in order to give necessary information to the investors. The report concludes of three parts: (i) A brief profiles of the two companies; (ii) Financial ratios analysis which covers all five types of common ratios including liquidity, leverage, turnover, profitability and market value ratios from 2011 to 2013; (iii) Conclusions drawn from the analyzed ratios analysis as well as some recommendations for improvement.Unilever and Colgate are both trustworthy and well-known companies in the household and personal products industry. The industry offers essential everyday living products, which means it is not significantly affected by macroeconomic changes during weak economic periods. Unilever is a more mature company with higher market capital and stronger position in the industry; but Colgate with a total consumer-orientation, constant innovation and relentless effort to improve cost efficiency has been also successful in recent years. While Colgate is best-known for its range of oral care products, Unilever has a much bigger portfolio of personal care things and also a bit more brand - recognized worldwide. From years 2011 to 2013, Unilever was able to follow its strategy of becoming a sustainable growth company with very high revenues, while Colgate also succeeded with keeping the pressure of growing cost of goods sold in control. During this time span, Colgate secured a lower liquidity risk for its shareholder compared to Unilever. The marginal operating performance on average of Colgate is actually stronger than Unilever's operating performance. Colgate also remarkably succeeded with its dividends policy which generates really high returns for shareholders. Unilever meanwhile uses more of its cash flow to reinvest into the company to produce higher profits and overall create a stronger financial health for the company.Both companies entice the investors because both of them are doing well in the market. Unilever's higher sales revenues along with strong and reputable brand name make it an attractive investment but Colgate with its growth potential, low liquidity risk, efficient operating performance and especially good return on investment also makes a good case for investors to pursue.BRIEF PROFILEUNILEVERUnilever is an Anglo-Dutch multinational consumer goods company, one of the world's top makers of packaged consumer goods established in 1929. Unilever's products are available in around 190 countries,...

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