CHAPTER I

INTRODUCTION

Finance is essential for the successful operation of businesses and the

economy at large. It enables companies to manage resources effectively, make

informed decisions, and navigate risks. As such, financial literacy is crucial not only

for business leaders but also for individuals seeking to understand their financial

environment better. The ability to manage finances wisely can lead to sustained

growth, profitability, and stability in an increasingly complex economic landscape.

Hence, the existence of Financial statements as ways to make an in depth analysis of

the firm’s financial position and performance, brings a crucial contribution to towards

wise and accurate economic decisions.

Financial statements refer to formal and original statements prepared by a

business concern to disclose its financial information. The transactions affecting the

business are recorded in the books and shown in the financial statements at the same
values. Accountants always take some facts as accepted or postulates. In other words,

business transactions are recorded on certain assumptions such as ‘going concern’,

‘stable value of pesos’, and the like, which are reflected in the financial statements.

The objectives of financial statement are to provide information about the financial

position, performance and changes in financial position of the enterprise that is useful

to a wide range of users in making economic decisions.

 Furthermore, financial statements have many uses by a wide variety of users

seeking help in making economic decisions with respect to the entity performing

financial statement. These financial statements are then used by investors to determine

profitability, growth potential and the like in order to decide how much they should

spend or inhibit from certain stocks. Creditors can use these to assess credit risk and
make loan approval decisions. Management uses the financial statements as roadmap

for strategic planning, performance monitoring and operational course corrections.

The accounting document requirements are statutory in nature and necessitated by the

tax laws, as well as for adherence to accounting standards. Employees and unions

utilize the financial statements for wage negotiations and to create a trust factor.

Lastly, analysts review financial data in order to assess market trends, and then
provide investment recommendations. Additionally, a deeper analysis is executed to

further analyze what an entity is going through, either gaining profits or facing

detrimental losses.

Financial statement analysis is crucial for understanding a business's financial

dynamics. It equips stakeholders with the necessary insights to make informed

decisions that align with their goals whether those are operational improvements,

investment strategies, or risk management initiatives. Regularly conducting this

analysis not only enhances strategic planning but also upholds transparency and

accountability within the organization. As stated further by Kennady & Muller,

“Analysis and interpretation of financial statements are an attempt to determine the

significance and meaning of the financial statement data so that forecast may be made
of the prospects for future earnings, ability to pay interest and debt maturities (both

current and long term) and probability of a sound dividend policy.”

Various methods can be utilized in order to effectively analyze financial

statements and included in this analysis are the following:

Vertical Analysis: This method involves analyzing each line item in a financial

statement as a percentage of a base figure, allowing for easy comparison across

different periods or companies. Additionally, Net sales is used as a base in the Income

Statement, while, Total Assets is used in the computation for Balance Sheet.

Horizontal Analysis: It is also known as the Increase-Decrease Method, and this

approach compares financial data over multiple periods to identify growth trends and
changes in financial performance. Computing a percentage change in comparative

statements requires two steps:

a.Compute the peso amount of the change from the base (earlier) period to the

later period

b. Divide the peso amount of change by the base-period amount. This is not

done, however, if the base year figure is negative or zero.

Ratio Analysis: Key ratios derived from financial statements (such as liquidity ratios,

profitability ratios, and leverage ratios) provide insights into different aspects of the

company's financial health.

Financial statements are necessary to determine the financial status of a

company, but still they have various limitations that users must know. In the first
place, they are historical cost based, that’s why assets and liabilities are shown as their

acquisition price not as current day market prices which might be different due to

inflation or deflation. Not only that, but financial statements often do not reflect

inflation and it causes an imprecise result of the economic situation. Subjectivity

arises when someone is forced to make an estimate in an area of accounting, like asset

valuation or revenue recognition, which naturally introduces bias and and affects
evaluation on a company's financial health. Another factor is that financial statements

pertain to specific periods, and seasonal effects or non-recurring events may distort

the analysis. Additionally, they concentrate heavily on numerical figures without

accounting for the qualitative side of business such as employee morale or

management effectiveness, and often forget about intangible assets such as

intellectual property or brand recognition. Consistent comparability between

companies is also an issue, with differences in accounting standards (GAAP vs IFRS)

that make it hard to assess financial across the board. This poses the risk of

manipulation, especially without proper auditing.

CHAPTER II
 BRIEF DESCRIPTION ABOUT UNILEVER

Unilever is a British-Dutch multinational consumer goods company, which

traces its origins to a company founded in late 19th century. Established in 1930 after

the merging of two thriving firms — namely Margarine Unie from the Netherlands

and United Kingdom-based Lever Brothers, Unilever has developed into one of the
biggest global consumer goods companies to date. It operates in more than 190

countries, has a robust footprint in both developed and developing markets, and is

home to a rich portfolio of category-leading brands that are designed to serve the

needs of our consumers around the world.

 Sustainability and corporate responsibility have been at the core of Unilever's

identity, and it has all reserved a special focus on sustainability. The company has

always worked reducing its environmental footprint through programs designed to

reduce carbon emissions, water use and plastic. It is also focused on becoming more

socially responsible by improving the lives of smallholder farmers, upgrading labor

rights and promoting fair trade. These efforts are all designed as part of Unilever's
broader strategy to ensure its operations contribute on a global average to zero net

deforestation.

With a focus on innovation, the business often evolves its products and

business models to meet changing consumer demands while staying true to their

roots. Unilever has a strong marketing strategy and global supply chain that help to
make them competitive in any of their sector, making the company more relevant

especially in the global market. Unilever is a company that operates under two main

holding companies; Unilever PLC in the UK and Unilever NV in the Netherlands, this

organization providing for its dual Anglo-Dutch heritage from the conglomerate. This

design serves as the company to operate several diverse departments smoothly and

assist in adhering with the regulations that are distinctive from those set forth by
various regions. Unilever's strong focus on long-term growth, sustainability, and

responsible business practices has not only driven its financial success but also earned

it a reputation as a socially conscious and forward-thinking corporation.

Unilever also has an extensive portfolio of market-leading products available

in over 190 countries across beauty and personal care, food and refreshment, home
care and health & well-being categories In beauty and personal care, prominent

brands are Dove — widely recognized for its skincare and personal hygiene products

— and Axe, offering a range of male grooming items that includes deodorants and

body sprays. For the record, Tresemme has a suite of haircare products like shampoos

and conditioners, manufactured by PDC through contractual arrangement while Lux

produces soaps and body washes. Other leading names in this segment include
Sunsilk, a respected hair care brand and Vaseline that offers skin products and

recovery ointment.

Unilever with its brands which operate in the food and refreshments category,

like Knorr (soups, bouillons, seasonings and ready-made meals) Another big brand on

the market is Lipton, which brings to the market with a diversity of teas. Hellmann's
and Ben & Jerry's are familiar names derived from their primary products --

mayonnaise and other condiments in one case, premium frozen desserts in the other.

For the ice-cream lovers other brands are Magnums, Breyers and Walls all having

different types of ice creams. The Vegetarian Butcher: Unilever also secured a notable

foothold in plant-based food with its The Vegetarian Butcher meat alternative line.
 The home care segment features brands like Omo, which offers laundry

detergents and fabric care products. Surf and Comfort provide additional laundry

solutions, including fabric softeners. Domestos is a widely recognized brand for

household cleaning products, particularly bleach, while Cif offers a variety of surface

cleaners suitable for kitchens and bathrooms.

 In the health and well-being category, Unilever markets oral care products

under the Signal and Pepsodent brands, which include toothpaste and dental hygiene

items. This extensive product range reflects Unilever's commitment to meeting

diverse consumer needs while emphasizing innovation and sustainability across its

brands. Many of Unilever's products are household names and are recognized for their

quality and reliability worldwide.

 Overall, The past of Unilever is associated with some significant events which

symbolizes that how it has been changed from a modest margarine and soap

constituent to one among a world-wide leader in the FMCG industry. The business

was created in 1930 when the Jurgens and Van den Bergh families joined their

margarine concerns to form Margarine Unie, which then merged with the Lever
Brothers business William Hesketh Lever established in 1885. Unilever began

expanding its portfolio and global reach throughout the 20th century, acquiring

countless brands and breaking new ground in different markets. For the first time in

2000, it was restructured to concentrate on core brands & operational efficiency. In

2010, it introduced its Sustainable Living Plan with a focus on reducing the

environmental impact as well as improving social responsibility. Over the past few
years this has included: purchasing Seventh Generation in 2017 and pledging to make

its operations 100 percent carbon neutral by 2030—actions indicative of of an

ongoing emphasis on sustainability and innovation from Unilever.

 CHAPTER III

CONSOLIDATED FINANCIAL STATEMENTS OF UNILEVER

 Consolidated balance sheet
for the year ended 31 December

€ million € million

Notes 2023 2022

Assets

Non-current assets

Goodwill 9 21,109 21,609

Intangible assets 9 18,357 18,880

Property, plant and equipment 10 10,707 10,770

Pension asset for funded schemes in surplus 4B 3,781 4,260

Deferred tax assets 6B 1,113 1,049

Financial assets 17A 1,386 1,154

Other non-current assets 11 911 942

57,364 58,664

Current assets

Inventories 12 5,119 5,931

Trade and other current receivables 13 5,775 7,056

Current tax assets 427 381

Cash and cash equivalents 17A 4,159 4,326

Other financial assets 17A 1,731 1,435

Assets held for sale 22 691 28

17,902 19,157

Total assets 75,266 77,821

Liabilities

Current liabilities

Financial liabilities 15C 5,087 5,775

Trade payables and other current liabilities 14 16,857 18,023

Current tax liabilities 851 877

Provisions 19 537 748

Liabilities held for sale 22 175 4

23,507 25,427

Non-current liabilities

Financial liabilities 15C 24,535 23,713

A.Non-current
UNILEVER’S tax liabilities CONSOLIDATED STATEMENT OF 384 94

Pensions and post-retirement healthcare liabilities:

FINANCIAL POSITION (2022-2023)

Funded schemes in deficit 4B 351 613

Unfunded schemes 4B 1,029 1,078

Provisions 19 563 550

Deferred tax liabilities 6B 3,995 4,375

Other non-current liabilities 14 138 270

30,995 30,693

Total liabilities 54,502 56,120

Equity

Shareholders’ equity 18,102 19,021

Non-controlling interests 2,662 2,680

Total equity 20,764 21,701

Total liabilities and equity 75,266 77,821

B. UNILEVER’S CONSOLIDATED STATEMENT OF FINANCIAL

PERFORMANCE (2021-2023)
C. OPERATING PROFIT STATEMENT OF UNILEVER
 CHAPTER IV

FINANCIAL STATEMENT ANALYSIS

1. HORIZONTAL ANALYSIS

1.1 BALANCE SHEET

UNILEVER € million € million INCREASED

 Comparative Statement of Financial (DECREASED)

Position AMOUNT PERCENTAGE

2023 2022
December 31, 2023 and 2022 (€ million) (%)

Assets

Non-current assets
Goodwill 21,109 21,609 (500) (2.31%)

Intangible assets 18,357 18,880 (523) (2.77%)

Property, plant and equipment 10,707 10,770 (63) (0.58%)

Pension asset for funded schemes in surplus 3,781 4,260 (479) (11.24%)

Deferred tax assets 1,113 1,049 64 6.10%

Financial assets 1,386 1,154 232 20.10%

Other non-current assets 911 942 (31) (3.29%)

Total Non-current assets 57,364 58,664 (1,300) (2.22%)

Current assets

Inventories 5,119 5,931 (812) (13.69%)

Trade and other current receivables 5,775 7,056 (1,281) (18.15%)

Current tax assets 427 381 46 12.07%

Cash and cash equivalents 4,159 4,326 (167) (3.86%)

Other financial assets 1,731 1,435 296 20.63%

Assets held for sale 691 28 663 2367.86%

Total Current Assets 17,902 19,157 (1,255) (6.55%)

Total assets 75,266 77,821 (2,555) (3.28%)

Liabilities

Current liabilities

Financial liabilities 5,087 5,775 (688) (11.91%)

Trade payables and other current liabilities 16,857 18,023 (1,166) (6.47%)

Current tax liabilities 851 877 (26) (2.96%)

Provisions 537 748 (211) (28.21%)

Liabilities held for sale 175 4 171 4275.00%

Total Current Liabilities 23,507 25,427 (1,920) (7.55%)

Non-current liabilities

Financial liabilities 24,535 23,713 822 3.47%

Non-current tax liabilities 384 94 290 308.51%

Pensions and post-retirement healthcare

liabilities:
Funded schemes in deficit 351 613 (262) (42.74%)

Unfunded schemes 1,029 1,078 (49) (4.55%)

Provisions 563 550 13 2.36%

Deferred tax liabilities 3,995 4,375 (380) (8.69%)

Other non-current liabilities 138 270 (132) (48.89%)

 30,995 30,693 302 0.98%

Total liabilities 54,502 56,120 (1,618) (2.88%)

Equity

Shareholders’ equity 18,102 19,021 (919) (4.83%)

Non-controlling interests 2,662 2,680 (18) (0.67%)

Total equity 20,764 21,701 (937) (4.32%)

Total liabilities and equity 75,266 77,821 (2,555) (3.28%)

1.2 INCOME STATEMENT

 INCREASED
UNILEVER € million € million
(DECREASED)
Comparative Statement of Financial Performance
AMOUNT PERCENTAGE
For the years ended December 31, 2023 and 2022
2023 2022
(€ million) (%)

Turnover 59,604 60,073 (469) (0.78%)

Operating profit 9,758 10,755 (997) (9.27%)

Net finance costs (486) (493) (7) -

Profit before taxation 9,339 10,337 (998) (9.65%)

Taxation (2,199) (2,068) 131 -

Net profit 7,140 8,269 (1,129) (13.65%)

 Non-controlling interests 653 627 26.00 4.15%

Shareholders’ equity 6,487 7,642 (1,155) (15.11%)

Earnings per share

Basic earnings per share (€) 2.58 3.00 (0.42) (14%)

Diluted earnings per share (€) 2.56 2.99 (0.43) (14.38%)

2. VERTICAL ANALYSIS

2.1 BALANCE SHEET

UNILEVER € million € million Percent (%)

 Comparative Statement of Financial Position December 31

December 31, 2023 and 2022 2023 2022 2023 2022

Assets

Non-current assets

Goodwill 21,109 21,609 28.05% 27.77%

Intangible assets 18,357 18,880 24.39% 24.26%

Property, plant and equipment 10,707 10,770 14.23% 13.84%

Pension asset for funded schemes in surplus 3,781 4,260 5.02% 5.47%

Deferred tax assets 1,113 1,049 1.48% 1.35%

Financial assets 1,386 1,154 1.84% 1.48%

Other non-current assets 911 942 1.21% 1.21%

Total Non-current assets 57,364 58,664 76.22% 75.38%

Current assets

Inventories 5,119 5,931 6.80% 7.62%

Trade and other current receivables 5,775 7,056 7.67% 9.07%

Current tax assets 427 381 0.57% 0.49%

Cash and cash equivalents 4,159 4,326 5.53% 5.56%

Other financial assets 1,731 1,435 2.30% 1.84%

Assets held for sale 691 28 0.92% 0.04%

Total Current Assets 17,902 19,157 23.78% 24.62%

Total assets 75,266 77,821 100% 100%

Liabilities

Current liabilities

Financial liabilities 5,087 5,775 6.76% 7.42%

Trade payables and other current liabilities 16,857 18,023 22.40% 23.16%
Current tax liabilities 851 877 1.13% 1.13%

Provisions 537 748 0.71% 0.96%

Liabilities held for sale 175 4 0.23% 0.01%

Total Current Liabilities 23,507 25,427 31.23% 32.67%

Non-current liabilities
Financial liabilities 24,535 23,713 32.60% 30.47%

Non-current tax liabilities 384 94 0.51% 0.12%

Pensions and post-retirement healthcare

liabilities:

Funded schemes in deficit 351 613 0.47% 0.79%

Unfunded schemes 1,029 1,078 1.37% 1.39%

Provisions 563 550 0.75% 0.71%

Deferred tax liabilities 3,995 4,375 5.31% 5.62%

Other non-current liabilities 138 270 0.18% 0.35%

Total Non-Current Liabilities 30,995 30,693 41.18% 39.44%

Total liabilities 54,502 56,120 72.41% 72.11%

Equity

Shareholders’ equity 18,102 19,021 24.05% 24.44%

Non-controlling interests 2,662 2,680 3.54% 3.44%

Total equity 20,764 21,701 27.59% 27.89%

Total liabilities and equity 75,266 77,821 100% 100%

2.2 INCOME STATEMENT

 UNILEVER Percent (%)
€ million € million
Comparative Statement of Financial December 31

Performance

For the years ended December 31, 2023 and 2023 2022 2023 2022

2022

Turnover 59,604 60,073 100% 100%

Operating profit 9,758 10,755 16.37% 17.90%

Net finance costs (486) (493) (0.82%) (0.82%)

Profit before taxation 9,339 10,337 15.67% 17.21%

Taxation (2,199) (2,068) (3.69%) (3.44%)

Net profit 7,140 8,269 11.98% 13.76%

Non-controlling interests 653 627 1.10% 1.04%

Shareholders’ equity 6,487 7,642 10.88% 12.72%

3. FINANCIAL RATIOS

LIQUIDITY
 RATIO FORMULA 2023 (€ million) 2022(€ million)

1. CURRENT RATIO 19,157

¿
total current assets 17,902 25,427
¿ ¿ =0.7616∨76.16 %
¿0.7534 or 75.34%
total current liabilities 23,507
2. ACID TEST
19,157 −5,931
(QUICK) ¿
current assets −inventories 17,902−5,119 25,427
¿ ¿ =0.5438∨54.38 %
¿ 0.5202 or 52.02%
RATIO
total current liabilities 23,507

PROFITABILITY

As to Margins:
 9,758 10,755
1. OPERATING ¿ ¿
operating profit 59,604 60,073
¿
¿ 0.1790 or 17.9%
PROFIT MARGIN turnover
¿ 0.1637∨16.37 %

7140 8269
2. NET PROFIT ¿ ¿
net profit after tax 59604 60,073
¿
¿ 0.1198 or 11.98% ¿ 0.1376 or 13.76%
MARGIN turnover
As to returns:

7140 8269
3. RETURN ON ¿ ¿
net profit after tax (77821+75266)/2 77821
¿
¿ 0.0933 or 9.33% ¿0.1063 or 10.63%
ASSETS average total assets

4. RETURN ON net profit after tax 7140 8269

¿ ¿ ¿
average SHE (21701+20764)/2 21701
EQUITY
 ¿ 0.3363 or 33.63% ¿0.3810 or 38.1%

As to Shareholder’s interest:

¿ 2.58 ¿ 3.00
5. EARNINGS PER NP − preferred dividends
¿
SHARES (BASIC) no . of outstanding common stocks
 ¿ 2.56 ¿ 2.99
6. EARNINGS PER NP − preferred dividends
¿
SHARES (DILUTED) no . of outstanding common stocks

LEVERAGE

54502 56120
¿ ¿
total liabilities 20764 21701
1. DEBT-TO-EQUITY ¿
¿ 2.6248 or 262.48% ¿ 2.5861 or 258.61%
total SHE
 54502 56120
2. DEBT-TO-TOTAL ¿ ¿
total liabilities 75266 77821
¿
¿ 0.7241 or 72.41% ¿ 0.7211 or 72.11%
ASSETS total assets

ACTIVITY

1. TOTAL ASSETS turnover 59604 60073

¿ ¿ ¿
average total assets (77821+75266)/2 77821
TURNOVER
 ¿ 0.7787 or 77.87% ¿ 0.7719 or 77.19%

34429 35906
2. INVENTORY ¿ ¿
cost of sales (5931+5119)/2 5931
¿
¿ 6 .2315 times ¿6.054 times
TURNOVER averageinventories

3. INVENTORY 365 365 365

¿ ¿ ¿
inventory turnover 6.2315 6.054
TURNOVER (IN
DAYS) ¿58.57 days ¿ 6 0.29 days
 CHAPTER V

FINDINGS

Summary of the Findings based on the given financial statement analysis is as

follows:
 Total assets declined by €2,555 million (-3.28%), showing a decline in the

financial position. It can be inferred that both liquidity and solvency of Unilever

has dropped with -6.55% and -2.22%, respectively

 Total liabilities dropped by €1,618 million (-2.88%), indicating better financial

management. Unilever’s ability to minimize its present obligations can also be

beneficial trend, if it continues.

 However, a decrease in shareholders' equity (-4.83%) and total equity (-4.32%)

raises questions about Unilever's ability to retain value for shareholders. This

decline may explain the possibility of some current investors withdrawing their

investments, in favor of companies that prioritize wealth maximization. If this

trend persists, it could hinder Unilever's ability to attract new shareholders,

negatively affecting its financing opportunities.

 The turnover in 2023 decreased to €59,604 million, down by 0.78% from €60,073

million in 2022, reflecting a minor decline in revenue. This could be due to

factors such as reduced sales volume, price adjustments, or challenging market

conditions. The drop in turnover reflects some challenges in maintaining sales

growth, despite other potential areas of business performance.

 Operating profit fell by 9.27% from €10,755 million in 2022 to €9,758 million in

2023.

 The net profit for 2023 was €7,140 million, a decline of 13.65% compared to

€8,269 million in 2022.

 In 2022, the company recorded a one-time gain of €2,303 million from the

disposal of Ekaterra, which significantly boosted profitability. In 2023, a smaller

 gain of €497 million from the disposal of Suave contributed less to overall profit,

affecting the comparative performance.

 Net finance costs remained relatively stable, decreasing slightly from €493

million in 2022 to €486 million in 2023. This suggests effective management of

financing expenses, even as revenues and profits declined.

 Tax expenses increased from €2,068 million in 2022 to €2,199 million in 2023.

This rise in taxation could have contributed to the lower net profit recorded in

2023.

 The basic earnings per share (EPS) decreased from €3.00 in 2022 to €2.58 in

2023, while diluted EPS also declined from €2.99 to €2.56. This reduction of

approximately 14% indicates a lower return for shareholders on a per-share basis.

 Operating Profit decreased from €10,755 million in 2022 to €9,758 million in

2023. This reduction was due in part to the absence of the gain on disposal of

ekaterra, which contributed €2,303 million in 2022, leading to a lower operating

profit in 2023 despite stable operating income from core activities.

 Net Profit also decreased from €8,269 million in 2022 to €7,140 million in 2023.

This decrease was driven by lower operating profits and higher finance costs,

which impacted overall profitability.

 The net profit margin declined from 13.76% in 2022 to 11.98% in 2023,

indicating that a lower percentage of revenue translated into profit.

 The Current Ratio and Quick Ratio not meeting the rule of thumbs (acceptable

ratio ranging from 1.5:1 to 2:1) means that Unilever will have difficulties in

paying its short term debts.

 ROE and ROA decreased from 38.1% to 33.63% and 10.63% to 9.33%,

respectively, indicating reduced profitability and efficiency in generating returns

from shareholders' investments and overall assets.

 The Debt-to-Equity Ratio increased from 258.61% in 2022 to 262.48% in 2023,

showing that the company has a high reliance on debt financing relative to equity.

 The Debt-to-Total Assets ratio slightly increased from 72.11% in 2022 to 72.41%

in 2023. If this trend continues, it will be put into a higher risk profile for

Unilever meaning a significant portion of the its assets will be financed by debt.
 The Total Assets Turnover Ratio of Unilever in 2023 slightly improved from the

previous year and this indicates that it is utilizing its assets better than before.

 Inventory Turnover increased from 6.054 times in 2022 to 6.2315 times in 2023,

indicating that inventory is moving slightly faster than in the previous year.
 CHAPTER VI

RECOMMENDATION
 Unilever's financial position seems to have weakened, indicating potential

financial problems in the future, as reported by Unilever. Cash Management and

cost cutting are the solutions to improving financial health and mitigating

potential financial problems.

 The drop in equity might cause shareholders to sell their shares. Unilever should

consider raising dividends or buying back shares to encourage current investors to

stay and attract new ones.

 Unilever's earnings dropped significantly, so cutting costs and finding new

markets are essential. Strengthening its main operations will help the company
 recover its lost earnings. For instance, it should reduce unnecessary expenses,

improve efficiency, and focus on more profitable activities.

 Unilever's growing debt is putting its financial stability at risk. To fix this, the

company should reduce its debt or raise more money from investors to balance

the risk.
 Inefficient use of assets and low returns for shareholders are causing problems.

By improving resource management and cutting costs, Unilever can become more

efficient.

 Low liquidity ratios of Unilever indicate short-term financial risk. Improving cash

flow and debt repayment can be achieved by optimizing the procurement and

production processes.
 High debt levels have increased the company's financial risk. To improve this,

Unilever should either reduce secured debt or seek other funding options, which

would strengthen its financial position.

 The increased asset turnover is indicative of better asset management. Getting rid

of the extra ones and adhering to the existing processes would be profitable.
 The issue of high tax expenses would rather lead to lower profits. Unilever should

consider their tax approach in an effort to minimize the tax burden and carry the

profits over.

 Unilever should add new product lines and enter new markets to solve the

declining revenue. Greater marketing and creativity will boost growth through

increased sales.
CHAPTER VII

CONCLUSION
 Upon analyzing Unilever’s financial statements through the utilization of

Horizontal analysis, Vertical Analysis, and Financial Ratios as methods, there were

major inferences and findings drawn. Based on the findings, Unilever is currently

facing significant challenges in its financial health across multiple dimensions. Its

solvency has weakened, with a growing reliance on debt evidenced by an increased

debt-to-equity and debt-to-total assets ratio, which raised concerns about Unilever’s
long-term financial stability. Liquidity is also declining, as the current and quick

ratios fall below acceptable levels, indicating potential difficulties in meeting short-

term obligations. Although there have been slight improvements in asset utilization

and inventory turnover, profitability had faced a substantial drop, with net profit and

margins declining significantly, which may erode investor confidence.

 Although, Unilever is a well-known global company, it needs to address these

critical issues to restore financial health and attract investors. Hence, analysts suggest

that it needs to focus on cash management and cost-cutting to improve its health. To

keep and attract investors, the company should also raise dividends or buy back

shares. Since earnings have dropped, Unilever must also reduce unnecessary expenses

and explore new markets. Additionally, it should work on reducing debt or raising
capital to strengthen financial stability. Lastly, improving resource management and

optimizing procurement and production can help enhance cash flow.