RATIO EVALUATION OF NESTLE INDIA LTD

Abstract

This ratio analysis of Nestle Ltd provides insights into the financial performance and efficiency of the company over a specified period. By analyzing key financial ratios, including liquidity, profitability, efficiency, and solvency ratios, this study aims to evaluate Nestle Ltd's financial health and performance relative to industry benchmarks and historical trends .The analysis begins by examining Nestle Ltd's liquidity ratios, such as the current ratio and quick ratio, to assess the company's ability to meet its short-term obligations. Subsequently, profitability ratios, including gross profit margin, net profit margin, and return on equity, are analyzed to evaluate Nestle Ltd's ability to generate profits from its operations and efficiently utilize its resources. Through this comprehensive ratio analysis, stakeholders can gain valuable insights into Nestle Ltd's financial performance, identify areas of strength and weakness, and make informed decisions regarding investment, lending, and strategic planning.