critical analysis of the financial health of the company

Question 1

Using the following link: https://www.unilever.com/investor-relations/annualreport-

and-accounts/archive-of-annual-report-and-accounts/

Download the group annual reports of Unilever for the past three years and

provide a critical analysis of the financial health of the company. Under the

financial statements section, you will find the group’s consolidated financial

statements and the notes to them. (This report should be a minimum of 2,500

of the word count.)

Required:

1. a) Briefly introduce the company and present its current mid-term (5 years)

outlook. Make sure you also include an analysis of the company’s share

price to the present. (Maximum of 300 words.)

1. b) Calculate Unilever’s key financial ratios (for at least the 3 most recent

years) and present them in the report in table or chart format. Key ratios

must cover all ratio categories: profitability, liquidity, efficiency,

investment, and gearing (leverage) ratios.

1. c) Interpret the financial ratios and analyse Unilever’s financial performance

in the most recent year (the newest annual report) in comparison to its

previous years as well as its competitor/industry. Make sure you justify

any significant differences (trends) you observe here.

1. d) Support the above analysis with vertical analysis of Unilever’s consolidated

income statement and balance sheet and then critically assess the

company’s capital structure.

Notes: The accompanying analysis should be detailed and provide reasons

for any changes. Utilise both internal and external (financial and nonfinancial)

information to support your analysis. Simply stating that a certain

ratio has changed and by how much is not sufficient for analysis at this level.

All equations and findings must be included in the report.