Nestle Malaysia Bhd.
Profile of the company
Nestle was founded in 1866 by Henri Nestle. It is the world largest food manufacturer and it headquarters in Vevey, Switzerland. Nestle have 442 factories around 86 countries. Nestle Malaysia is one of the subsidiaries and the headquarters is in Petaling Jaya, Selangor. Nestle produce and supply consumer goods to market for example powdered milk and drinks, liquid milk and juices, instant coffee, instant noodles and others. With the vision of nourishing and enhancing the lives of Malaysia and for generations to come Nestle Malaysia have achieves many awards (Nestle Malaysia, 2015) likes in Halal Excellence Awards 2014, National Annual Corporate Report Awards (NACRA) 2014, Malaysia Books of Records- …show more content…
In 2011, Nestle Companies involve in higher liabilities in 2011 than the other years which is RM 1361 million with total current liabilities of RM 915 million and non-current liabilities is RM 446 million. Besides that, the company also need to pay in income tax. Income tax is one of the elements of current liabilities. Income tax payable for Nestle Malaysia is not fixed and they pay more in 2012 which is RM 53 million and compare to 2010 they just need to pay RM 10 million. In fact, income tax payable related to net income for company. The more the net income the more the company needs to pay in income …show more content…
So, to get monthly volume traded we need to times volume traded with average monthly return. Which is 1500 × 1.45% = 21.75.
Volatility
Adkins (2009) found that there a several ways to measure volatility but most of analysts look for historical data. Historical volatility is a measure of past performance. A study by Adkins (2009) found that volatility allows for a more long term assessment of risk, historical volatility is mostly used by analysts and traders in the creation of investing strategies. To calculate volatility we need standard deviation of each stock and multiple it with square root 252. 252 is a common trading days per year for stock.
4) The correlation coefficient can vary in the range of positive one to negative one. The Nestle correlation coefficient is 0.912507. It shows perfect correlation. This means that returns for nestle assets and KLCI assets move together in a positively and completely linear manner.
The risk that involve in Nestle stock is business risk. Business risk involve is because the uncertainty of income flows caused by the nature of a firm’s business. The sales volatility and operating leverage determine the level of business
Profile of the company
Nestle was founded in 1866 by Henri Nestle. It is the world largest food manufacturer and it headquarters in Vevey, Switzerland. Nestle have 442 factories around 86 countries. Nestle Malaysia is one of the subsidiaries and the headquarters is in Petaling Jaya, Selangor. Nestle produce and supply consumer goods to market for example powdered milk and drinks, liquid milk and juices, instant coffee, instant noodles and others. With the vision of nourishing and enhancing the lives of Malaysia and for generations to come Nestle Malaysia have achieves many awards (Nestle Malaysia, 2015) likes in Halal Excellence Awards 2014, National Annual Corporate Report Awards (NACRA) 2014, Malaysia Books of Records- …show more content…
In 2011, Nestle Companies involve in higher liabilities in 2011 than the other years which is RM 1361 million with total current liabilities of RM 915 million and non-current liabilities is RM 446 million. Besides that, the company also need to pay in income tax. Income tax is one of the elements of current liabilities. Income tax payable for Nestle Malaysia is not fixed and they pay more in 2012 which is RM 53 million and compare to 2010 they just need to pay RM 10 million. In fact, income tax payable related to net income for company. The more the net income the more the company needs to pay in income …show more content…
So, to get monthly volume traded we need to times volume traded with average monthly return. Which is 1500 × 1.45% = 21.75.
Volatility
Adkins (2009) found that there a several ways to measure volatility but most of analysts look for historical data. Historical volatility is a measure of past performance. A study by Adkins (2009) found that volatility allows for a more long term assessment of risk, historical volatility is mostly used by analysts and traders in the creation of investing strategies. To calculate volatility we need standard deviation of each stock and multiple it with square root 252. 252 is a common trading days per year for stock.
4) The correlation coefficient can vary in the range of positive one to negative one. The Nestle correlation coefficient is 0.912507. It shows perfect correlation. This means that returns for nestle assets and KLCI assets move together in a positively and completely linear manner.
The risk that involve in Nestle stock is business risk. Business risk involve is because the uncertainty of income flows caused by the nature of a firm’s business. The sales volatility and operating leverage determine the level of business