Significant Analysis for Financial Statements: An Empirical Study of National and Unilever Foods

Abstract

Choosing vital, reliable and hustle free analysis is a bit difficult situation for most of the financiers and managers as there are so many analyses. This study focuses on most significant analyses to perform on financial statements. To accomplish this study, financial statements of two companies, Unilever foods and National foods has selected to perform analysis. Results show that vertical analysis can be a suspicious analysis as it total assets and sales fluctuate gradually. Horizontal analysis is somehow better analysis than vertical analysis as it shows negative or positive trend of variables. DuPont analysis is a reliable analysis but it taken into consideration only two years. However, ratio analysis is seems to be best analysis as it gives concise and paramount review of firm’s performance. According to these analyses, Unilever Foods is better corporate than National Foods. Further results are discussed in the light of these analyses.

Keywords: Vertical analysis, Horizontal analysis, DuPont analysis, Ratio analysis