Here is some financial statement data for Nestlé (in millions of Swiss francs):2021 2020 Total current assets 39,257 34,068 Inventory 11,982 10,101 Total assets 139,142 124,028 Net sales 87,088 84,343 Cost of goods sold 45,468 42,971 Gross profit 12,159 14,233 Interest expense 753 815
- Calculate ratios
Here is some financial statement data for Nestlé (in millions of Swiss francs):2021 2020
Total current assets 39,257 34,068
Inventory 11,982 10,101
Total assets 139,142 124,028
Net sales 87,088 84,343
Cost of goods sold 45,468 42,971
Gross profit 12,159 14,233
Interest expense 753 815
Net income 17,196 12,372
Net cash provided by operating activities 16,645 17,157
Capital expenditures 4,880 4,076
Cash dividends 7,983 7,968
Investing cash flow 3,044 5,667
Purpose
The purpose of this problem is to demonstrate an understanding of analyzing a company's performance using ratio analysis and calculating ratios.
Instructions
After reviewing the information, calculate the following ratios for Nestlé for 2021:
1) Inventory turnover
2) Profit margin
3) Return on assets
4)
Round all answers to two decimal places. Do not include dollar signs because Nestlé's accounting information is in Swiss Francs. Show the calculations
for each answer.
Guidance
For guidance, see the ratio analysis examples that are provided in Chapter 13 of the textbook.
Your Answers (show the calculations for each answer):
Answer Show Work for Answer
1) Inventory turnover
2) Profit margin
3) Return on assets
4) Free cash flow
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