NESTLE

Introduction

            The Nestle food company was founded in 1866 by Henri Nestle, beginning with the creation of Anglo-Swiss condensed milk. Since it began over 130 years ago, Nestlé’s success with product innovations and business acquisitions has turned it into the largest Food Company in the world. As the years have passed, the Nestlé family has grown to include chocolates, soups, coffee, cereals, frozen products, yogurts, mineral water and other food products. Beginning in the 70s, Nestlé has continued to expand its product portfolio to include pet foods, pharmaceutical products and cosmetics too. Nestle, known for its chocolate, has had much success even with other companies producing similar products such as the popular chocolate brand Hershey’s.  

Company's Financial Ratios

	Hershey's Ratios  2013		Nestle Ratios 2013
Current Ratio:	0.67		0.91
Acid-Test Ratio			0.62
Accounts Recivables Turnoover:	0.15		6.4
Inventory Turnover:	5.72		5.02
Times-Intrest Earned Ratio:	9.69		15.9
Debt to Equity ratio	2.31		0.90
Profit Margin Ratio:	.12		.16
Gross Profit Ratio:	0.48		0.51
Return on Assets Ratio:	.16		.12
Return on Common Stockholders  Equity	0.631		0.22
Earings per share	0.03		5
Price Earnings per Share	$25.33		$18.35
Dividend Yeild	2%		2.40%

Ratios	Hershey's 2014	Nestle 2014
Current Ratio	1.15	1.03
Acid-Test Ratio	0.58	0.38
Accts. Receivable turnover	6.65	6.76
Inventory Turnover	3.68	5.2
Times-Intrest- Earned Ratio	0.9	13.2
Debt-to-Equity Ratio	2.73	0.88
Profit Margin Ratio	0.11	0.15
Gross Profit Ratio	40.47	0.50
Return On Assets Ratio	0.15	0.12
Return on Common Stockholders Equity	0.54	0.22
Earinings Per Share	0.38	0.49
Price/Earnings Ratio	$85.85	$17.19
Dividend Yield Ratio	2.21%	2.97%

Interpretation of Financial Ratios

• Liquidity of Receivables 
• Immediate short-term-debt-paying ability
• Efficiency of inventory management 
• Efficiency of assets in producing sales 
• Protection to secured creditors 
• Overall profitability of assets 

Conclusion

    Hershey's is a well known international chocolate candy brand. Through out the years Hershey's has grown and expanded with 80 different brands sold all over the world. Hershey's has been in business for over 120 years while generating over 7.1 billion in annual revenues. They continue to build its competitive advantage in north America as well as expanding its portfolio beyond confectionary.

    Nestle has been in business for over 140 years and started out as a condensed milk brand. Over the years the company grew and expanded with over 2,000 brands globally. Nestle operates in over 197 countries with 91.6 billion in sales in 2014. The company places a lot of focus on its research and development with 31 facilities around the world. They continually strive to make their products not only taste better but also provide healthier choices for their customers.

    Nestle CEO Paul Bulcker recently wrote an article for the World Economic Forum addressing how the global food system has transformed over time. Due to the significant rise in population over the past 150 years the demand for edible food supply has been a challenge most notably the persistence of hunger worldwide. Bulcker stated that Nestle’s approach is to seek framework for farmer livelihood and community development as well as generating higher and more reliable income for farmers. In taking that approach they hope to ensure farming remains attractive for the next generations to come.

    Nestle’s advantages over Hershey's include its unmatched product and brand portfolio, research and development capability, and its geographic presence. Nestle continues to grow and diverse itself as a company and provide nutrition, health and wellness to its consumers.  As Hershey's continues to grow Nestle has already proven to be one of the wealthiest international companies on the market.            

Appendix