Given the following NESTLE's financial statements over the period of 2013-2018:

?Compute these 5 groups of financial ratios for the company;

-Short-term solvency ratio

-Long-term solvency ratio

-Asset turnover ratio

-Profitability ratio

-Market value ratio

?Interpret their meanings by comparing its current financial information (situation) with its past.

Consolidated balance sheet as at 31 December 2014 In millions of CHF Notes 2014 2013 Liabilities and equity Current liabilities Financial debt 13 8 810 11 380 Trade and other payables 13 17 437 16 072 Accruals and deferred income 3 759 3 185 Provisions 12 695 523 Derivative liabilities 13 757 381 Current income tax liabilities 1 264 1 276 Liabilities directly associated with assets held for sale 2 173 100 Total current liabilities 32 895 32 917 Non-current liabilities Financial debt 13 12 396 10 363 Employee benefits liabilities 10 8 081 6 279 Provisions 12 3 161 2 714 Deferred tax liabilities 14 3 191 2 643 Other payables 13 1 842 1 387 Total non-current liabilities 28 671 23 386 Total liabilities 61 566 56 303 Equity 18 Share capital 322 322 Treasury shares (3 918) (2 196) Translation reserve (17 255) (20 811) Retained earnings and other reserves 90 981 85 260 Total equity attributable to shareholders of the parent 70 130 62 575 Non-controlling interests 1 754 1 564 Total equity 71 884 64 139 Total liabilities and equity 133 450 120 442 Consolidated Financial Statements of the Nestle Group 2014 61Consolidated balance sheet as at 31 December 2014 before appropriations In millions of CHF Notes 2014 2013 Assets urrent assets Cash and cash equivalents 13/17 7 448 6 415 Short-term investments 13 1 433 638 Inventories 6 9 172 8 382 Trade and other receivables 7/13 13 459 12 206 Prepayments and accrued income 565 762 Derivative assets 13 400 230 Current income tax assets 908 1 151 Assets held for sale 2 576 282 Total current assets 33 961 30 066 Non-current assets Property, plant and equipment 28 421 26 895 Goodwill CO 9 34 557 31 039 Intangible assets 9 19 800 12 673 Investments in associates and joint ventures 15 8 649 12 315 Financial assets 13 5 493 4 550 Employee benefits assets 10 383 537 Current income tax assets 128 124 Deferred tax assets 14 2 058 2 243 Total non-current assets 99 489 90 376 Total assets 133 450 120 442 60 Consolidated Financial Statements of the Nestle Group 2014Consolidated balance sheet as at 31 December 2016 In millions of CHF Notes 2016 2015 Liabilities and equity Current liabilities Financial debt 12 12 118 9 629 Trade and other payables 12 18 629 17 038 Accruals and deferred income 3 855 3 673 Provisions 11 620 564 Derivative liabilities 12 1 068 1 021 Current income tax liabilities 1 221 1 124 Liabilities directly associated with assets held for sale 2 6 272 Total current liabilities 37 517 33 321 Non-current liabilities Financial debt 12 11 091 11 601 Employee benefits liabilities 10 8 420 7 691 Provisions 11 2 640 2 601 Deferred tax liabilitie 13 3 865 3 063 Other payables 12 2 387 1 729 Total non-current liabilities 28 403 26 685 Total liabilities 65 920 60 006 Equity 17 Share capital 311 319 Treasury shares (990) (7 489) Translation reserve (18 799) (19 851) Other reserves 1 198 1 345 Retained earnings 82 870 88 014 Total equity attributable to shareholders of the parent 64 590 62 338 Non-controlling interests 1 391 1 648 Total equity 65 981 63 986 Total liabilities and 131 901 123 992 Consolidated Financial Statements of the Nestle Group 2016 63Consolidated balance sheet as at 31 December 2016 before appropriations In millions of CHF Notes 2016 2015 Assets ent assets Cash and cash equivalents 12/16 7 990 4 884 Short-term investments 12 1 306 921 Inventories 6 8 401 8 153 Trade and other receivables 7/12 12 411 12 252 Prepayments and accrued income 573 583 Derivative assets 12 550 337 Current income tax assets 786 874 Assets held for sale 2 25 1 430 Total current assets 32 042 29 434 Non-current assets Property, plant and equipment CO 27 554 26 576 Goodwill 33 007 32 772 Intangible assets 20 397 19 236 Investments in associates and joint ventures 14 10 709 8 675 Financial assets 12 5 719 5 419 Employee benefits assets 10 310 109 Current income tax assets 114 128 Deferred tax assets 13 2 049 1 643 Total non-current assets 99 859 94 558 Total assets 131 901 123 992 62 Consolidated Financial Statements of the Nestle Group 2016Consolidated balance sheet as at December 31, 2018 In millions of CHF Notes 2018 2017 * Liabilities and equity Current liabilities Financial debt 12 14 694 11 211 Trade and other payables 7/12 17 800 18 864 Accruals and deferred income 4 075 4 299 Provisions 11 780 819 Derivative liabilities 12 448 507 Current income tax liabilities 2 731 2 477 Liabilities directly associated with assets held for sale 2 2 502 12 Total current liabilities 43 030 38 189 Non-current liabilities Financial debt 12 25 700 18 566 Employee benefits liabilities 10 5 919 7 111 Provisions 11 1 033 1 147 Deferred tax liabilities 13 2 540 3 492 Other payables 12 390 2 476 Total non-current liabilities 35 582 32 792 Total liabilities 78 612 70 981 Equity 17 Share capital 306 311 Treasury shares (6 948) (4 537) Translation reserve (20 432) (19 436) Other reserves (183) 989 Retained earnings 84 620 83 629 Total equity attributable to shareholders of the parent 57 363 60 956 Non-controlling interests 1 040 1 273 Total equity 58 403 62 229 Total liabilities and equity 137 015 133 210 2017 restated figures include modifications as described in Note 1 Accounting policies and related impacts in Note 22 Consolidated Financial Statements of the Nestle Group 2018 69Consolidated balance sheet as at December 31, 2018 before appropriations In millions of CHF Notes 2018 2017 * Assets Current assets Cash and cash equivalents 12/16 4 500 7 938 Short-term investments 12 5 801 655 Inventories 6 9 125 9 177 Trade and other receivables 7/12 11 167 12 036 Prepayments and accrued income 530 573 Derivative assets 12 183 231 Current income tax assets 869 917 Assets held for sale 2 8 828 357 Total current assets 41 003 31 884 Non-current assets Property, plant and equipment 8 29 956 30 777 Goodwill 9 31 702 29 746 Intangible assets 9 18 634 20 615 Investments in associates and joint ventures 14 10 792 11 628 Financial assets 12 2 56 6 003 Employee benefits assets 10 487 392 Current income tax assets 58 62 Deferred tax assets 13 1 816 2 103 Total non-current assets 96 012 101 326 Total assets 137 015 133 210 2017 restated figures include modifications as described in Note 1 Accounting policies and related impacts in Note 22. 68 Consolidated Financial Statements of the Nestle Group 2018Consolidated statement of comprehensive income for the year ended December 31, 2018 In millions of CHF Notes 2018 2017 * Profit for the year recognized in the income statement 10 468 7 511 Currency retranslations, net of taxes 17 (1 004) (561) Fair value changes on available-for-sale financial instruments, net of taxes 17 (10) Fair value changes on debt instruments, net of taxes 17 (39) Fair value changes on cash flow hedges, net of taxes 46 (55) Share of other comprehensive income of associates and joint ventures 14/17 (21) (240) Items that are or may be reclassified subsequently to the income statement (1 018) (866) Remeasurement of defined benefit plans, net of taxes 10/17 600 1 063 Fair value changes on equity instruments, net of taxes 17 Share of other comprehensive income of associates and joint ventures 14/17 117 52 Items that will never be reclassified to the income statement 721 115 Other comprehensive income for the year 17 (297) 249 Total comprehensive income for the year 10 171 7 760 of which attributable to non-controlling interests 218 328 of which attributable to shareholders of the parent 9 953 7 432 2017 restated figures include modifications as described in Note 1 Accounting policies and related impacts in Note 22. Consolidated Financial Statements of the Nestle Group 2018 67Consolidated statement of comprehensive income for the year ended 31 December 2014 In millions of CHF Notes 2014 2013 Profit for the year recognised in the income statement 14 904 10 445 Currency retranslations - Recognised in translation reserve 2 660 (3 160) - Reclassified from translation reserve to income statement 1003 214 Fair value adjustments on available-for-sale financial instruments -Recognised in fair value reserve 191 9 - Reclassified from fair value reserve to income statement ( 4 ) (532) Fair value adjustments on cash flow hedges -Recognised in hedging reserve 31 161 - Reclassified from hedging reserve (87) 85 Taxes 14 5 290 Share of other comprehensive income of associates and joint ventures 15 Recognised in the reserves 83 40 -Reclassified from the reserves (436) Items that are or may be reclassified subsequently to the income statement 3 446 2 893) Remeasurement of defined benefit plans 10 1 745) 1 632 Taxes 14 352 (848) Share of other comprehensive income of associates and joint ventures 15 (153) 47 Items that will never be reclassified to the income statement (1 546) 831 Other comprehensive income for the year 18 1 900 2 062) Total comprehensive income for the year 16 804 8 383 of which attributable to non-controlling interests 556 371 of which attributable to shareholders of the parent 16 248 8 012 Consolidated Financial Statements of the Nestle Group 2014 59Consolidated statement of comprehensive income for the year ended 31 December 2016 In millions of CHF Notes 2016 2015 Profit for the year recognised in the income statement 8 883 9 467 Currency retranslations, net of taxes 17 1 033 (3 771) Fair value adjustments on available-for-sale financial instruments, net of taxes 17 16 (144) Fair value adjustments on cash flow hedges, net of taxes 17 (1) Share of other comprehensive income of associates and joint ventures 62 14/17 (154 165 Items that are or may be reclassified subsequently to the income statement 894 (3 688) Remeasurement of defined benefit plans, net of taxes 10/17 (143 (362) Share of other comprehensive income of associates and joint ventures 14/17 (10) 112 Items that will never be reclassified to the income statement (153) (250) Other comprehensive income for the year 17 741 (3 938) Total comprehensive income for the year 9 624 5 529 of which attributable to non-controlling interests 343 317 of which attributable to shareholders of the parent 9 281 5 212 Consolidated Financial Statements of the Nestle Group 2016 61Consolidated cash flow statement for the year ended 31 December 2014 In millions of CHF Notes 2014 2013 Operating activities Operating profit 17 10 905 13 068 Non-cash items of income and expense 17 6 323 4 352 Cash flow before changes in operating assets and liabilities 17 228 17 420 Decrease/(increase) in working capital 17 (114) 360 Variation of other operating assets and liabilities 17 85 (574) Cash generated from operations 17 199 18 206 Net cash flows from treasury activities 17 (356) (351) Taxes paid (2 859) (3 520) Dividends and interest from associates and joint ventures 15 716 657 Operating cash flow 14 700 14 992 Investing activities Capital expenditure (3 914) (4 928) Expenditure on intangible assets (509) (402) Acquisition of businesses (1 986) (321 Disposal of businesses 321 421 Investments (net of divestments) in associates and joint ventures (a) 15 3 958 (28) Outflows from non-current treasury investments (137) (244) Inflows from non-current treasury investments 255 2 644 Inflows/(outflows) from short-term treasury investments (962) 400 Inflows from other investing activities (b) 294 1 273 Outflows from other investing activities (392) (421) Cash flow from investing activities (3 072) (1 606 Financing activities Dividend paid to shareholders of the parent 18 (6 863) 6 552) Dividends paid to non-controlling interests (356) (328) Acquisition (net of disposal) of non-controlling interests (49) (337) Purchase of treasury shares (1 721) (481 Sale of treasury shares 104 60 Inflows from bonds and other non-current financial debt 2 202 3 814 Outflows from bonds and other non-current financial debt (1 969) (2 271) Inflows/(outflows) from current financial debt (1 985 (6 063 Cash flow from financing activities (10 637) (12 158) Currency retranslations 42 (526) Increase/(decrease) in cash and cash equivalents 1 033 702 Cash and cash equivalents at beginning of year 6 415 5 713 Cash and cash equivalents at end of year 7 448 6 415 (a) Mainly relates to the partial disposal of L'Oreal shares. The Group sold part of its shares to L'Oreal for a price of CHF 7342 million (see Note 15) in exchange for the remaining 50% stake in Galderma for an equity value of CHF 3201 million (see Note 2) and cash of CHF 4141 million. (b) In 2013 mainly relates to the disposal of Givaudan shares. 62 Consolidated Financial Statements of the Nestle Group 2014Consolidated cash flow statement for the year ended 31 December 2016 In millions of CHF Notes 2016 2015 Operating activities Operating profit 17 13 163 12 408 Depreciation and amortisation 3 132 3 178 Impairment 640 576 Net result on disposal of businesses 422 Other non-cash items of income and expense 35 172 Cash flow before changes in operating assets and liabilities 16 970 16 756 Decrease/(increase) in working capital 16 1 801 741 Variation of other operating assets and liabilities 16 54 (248 Cash generated from operations 18 825 17 249 Net cash flows from treasury activities 16 (327) (93) Taxes paid (3 435 (3 310) Dividends and interest from associates and joint ventures 14 519 456 Operating cash flow 15 582 14 302 Investing activities Capital expenditure 8 (4 010) (3 872) Expenditure on intangible assets (682) (422 Acquisition of businesses (585) (530) Disposal of businesses 271 213 Investments (net of divestments) in associates and joint ventures 14 748) (44) Inflows/(outflows) from treasury investments (335) 521 Other investing activities (34) (19) Investing cash flow (6 123) (4 153) Financing activities Dividend paid to shareholders of the parent 17 (6 937) (6 950) Dividends paid to non-controlling interests 432) 424) Acquisition (net of disposal) of non-controlling interests 2 (1 208) Purchase (net of sale) of treasury shares (a) 760 (6 377) Inflows from bonds and other non-current financial debt 1 695 1381 Outflows from bonds and other non-current financial debt (1 430) (508) Inflows/(outflows) from current financial debt 1 368 643 Financing cash flow (6 184) (12 235) Currency retranslations 169) (478) Increase/(decrease) in cash and cash equivalents 3 106 (2 564) Cash and cash equivalents at beginning of year 4 884 7 448 Cash and cash equivalents at end of year 7 990 4 884 (a) In 2015, mostly relates to the Share Buy-Back Programme launched in 2014. 64 Consolidated Financial Statements of the Nestle Group 2016Consolidated cash flow statement for the year ended December 31, 2018 In millions of CHF Notes 2018 2017 * Operating activities Operating profit 16 13 752 10 156 Depreciation and amortization 16 3 924 3 934 Impairment 1 248 3 582 Net result on disposal of businesses 4 (686) 132 Other non-cash items of income and expense 16 137 (186 Cash flow before changes in operating assets and liabilities 18 375 17 618 Decrease/(increase) in working capital 16 472 (244 Variation of other operating assets and liabilities 16 (37) 361 Cash generated from operations 18 810 17 735 Interest paid (684) (609) Interest and dividend received 192 119 Taxes paid (3 623) (3 628) Dividends and interest from associates and joint ventures 14 703 582 Operating cash flow 15 398 14 199 Investing activities Capital expenditure CO (3 869 (3 938) Expenditure on intangible assets 9 Acquisition of businesses Disposal of businesses N (601) (769 (9 512) (696 4 310 140 Investments (net of divestments) in associates and joint ventures 728 (140 Inflows/(outflows) from treasury investments (5 159) 587 Other investing activities (163) (134) Investing cash flow (14 266) (4 950) Financing activities Dividend paid to shareholders of the parent 17 (7 124) 7 126) Dividends paid to non-controlling interests (319) (342) Acquisition (net of disposal) of non-controlling interests 2 (528) 526) Purchase (net of sale) of treasury shares (a) 6 854) (3 295) Inflows from bonds and other non-current financial debt 12 9 900 6 406 Outflows from bonds and other non-current financial debt 12 (2 712) (3 190) Inflows/(outflows) from current financial debt 12 3 520 (1 011) Financing cash flow (4 117 (9 084) Currency retranslations (313) (217 Increase/(decrease) in cash and cash equivalents 3 298) (52) Cash and cash equivalents at beginning of year 7 938 7 990 Cash and cash equivalents at end of year 16 4 640 7 938 2017 restated figures include modifications as described in Note 1 Accounting policies and related impacts in Note 22. (a) Mostly relates to the Share Buy-Back Program launched in 2017. 70 Consolidated Financial Statements of the Nestle Group 2018Consolidated statement of changes in equity for the year ended 31 December 2014 In millions of CHF Share capital Treasury shares Translation reserve Retained earnings and other reserves Total equity attributable to shareholders of the parent Non-controlling interest Total equity Equity as at 31 December 2012 322 (2 078 (17 924 80 687 61 007 1 657 62 664 Profit for the year 10 015 10 015 430 10 445 Other comprehensive income for the year 2 887) 884 (2 003) (59) (2 062) Total comprehensive income for the year (2 887) 10 899 8 012 371 8 383 Dividend paid to shareholders of the parent (6 552) (6 552) 6 552) Dividends paid to non-controlling interests - (328) (328) Movement of treasury shares (612) 190 (422) (422 Equity compensation plans - 214 (39) 175 175 Other transactions settled with treasury shares (a) 280 280 280 Changes in non-controlling interests (297 (297 (136) (433) Total transactions with owners - (118) 16 698 (6 816) (464) (7 280) Other movements (b) 372 372 372 Equity as at 31 December 2013 322 (2 196) (20 811) 85 260 62 575 1 564 64 139 Profit for the year I 14 456 14 456 448 14 904 Other comprehensive income for the year 3 556 1 764) 1 792 108 1 900 Total comprehensive income for the year 3 556 12 692 16 248 556 16 804 Dividend paid to shareholders of the parent (6 863) (6 863) (6 863) Dividends paid to non-controlling interests (356) 356) Movement of treasury shares (1 943) 204 1 739) (1 739) Equity compensation plans 221 (48 173 173 Changes in non-controlling interests (297 (297) (10) (307) Total transactions with owners (1 722) 7 004 (8 726) (366) (9 092) Other movements - 33 33 33 Equity as at 31 December 2014 322 (3 918) (17 255) 90 981 70 130 1 754 71 884 (a) The other transactions relate to the acquisition of a business (see Note 2). (b) Relates mainly to the adjustment for hyperinflation in Venezuela, considered as a hyperinflationary economy. Consolidated Financial Statements of the Nestle Group 2014 63Consolidated statement of changes in equity for the year ended 31 December 2016 In millions of CHF Share capital Treasury shares Translation reserve Other reserves Retained earnings Total equity attributable to shareholders of the parent Non-controlling interests Total equity Equity as at 31 December 2014 as originally published 322 (3 918) (17 255) 90 981 70 130 1 754 71 884 Reclassification following the changes in presentation 953 1 418 (2 371) Equity restated as at 31 December 2014 322 (3 918) (16 302) 1 418 88 610 70 130 1 754 71 884 Profit for the year 9 066 9 066 401 9 467 Other comprehensive income for the year (3 549) (55) (250) (3 854) (84) (3 938) Total comprehensive income for the year (3 549) (55) 8 816 5 212 317 5 529 Dividends (6 950) (6 950) (424) (7 374) Movement of treasury shares - (6 322) 39 (6 283) (6 283) Equity compensation plans - 239 (56) 183 183 Changes in non-controlling interests (21 ) (21) (20) Reduction in share capital (a) (3 ) 2 512 (2 509) Total transactions with owners (3) (3 571) (9 497) (13 071) (423) (13 494) Other movements = - (18 85 67 67 Equity restated as at 31 December 2015 319 (7 489) (19 851) 1 345 88 014 62 338 1 648 63 986 Profit for the year 8 531 8 531 352 8 883 Other comprehensive income for the year - 052 (148) 154 750 (9 741 Total comprehensive income for the year 1 052 (148 8 377 9 281 343 9 624 Dividends (6 937) (6 937) (432) (7 369) Movement of treasury shares - 803 (27 776 Equity compensation plans 207 (27) 180 180 Changes in non-controlling interests (b) - (991) (991) (168) (1 159) Reduction in share capital (a) (8) 5 489 5 481 Total transactions with owners (8) 6 499 (13 463) (6 972) (600) (7 572) Other movements 1 (58) (57) (57) Equity as at 31 December 2016 311 (990) (18 799) 1 198 82 870 64 590 1 391 65 981 (a) Reduction in share capital, see Note 17.1. (b) Movements reported under retained earnings include the impact of the acquisitions during the period (see Note 2.5) as well as a put option for the acquisition of non-controlling interests. Consolidated Financial Statements of the Nestle Group 2016 65Consolidated statement of changes in equity for the year ended December 31, 2018 In millions of CHF Share capital Treasury shares Translation reserve Other reserves Retained equity Equity as at January 1, 2018 earnings Total equity attributable to Non-controlling Total 311 189 shareholders (4 537) (19 436 83 629 of the parent 60 956 interests 1 273 62 229 First application of IFRS 9 (a) 176 (1 170 333 (13) 2 (15) Equity as at January 1, 2018 after first application of IFRS 9 311 (4 537) (19 612) (181) 84 962 60 943 1 271 62 214 Profit for the year - 1 1 1 10 135 10 135 333 10 468 Other comprehensive income for the year 893 (12) 723 (182) (115 (297) Total comprehensive income for the year (893 (12) 10 858 9 953 218 10 171 Dividends (7 124) (7 124) (319) (7 443) Movement of treasury shares - (6 677) (49) (6 726) (6 726) Equity compensation plans - 153 - (3) 150 153 Changes in non-controlling interests (b) - 181 181 (133) 48 Reduction in share capital (c) (5) 4 113 - (4 108) Total transactions with owners (5) (2 411) - (11 103) (13 519) (449) (13 968) Other movements 73 10 (97) (14) (14) Equity as at December 31, 2018 306 (6 948) (20 432 (183) 84 620 57 363 1 040 58 403 (a) Mainly relates to Nestle's share in fair value changes of equity instruments held by associates. (b) Movements reported under retained earnings include the impact of the acquisitions (see Note 2.5) as well as put options for acquisitions of non-controlling interests. c) Reduction in share capital, see Note 17.1. 72 Consolidated Financial Statements of the Nestle Group 2018Consolidated statement of changes in equity for the year ended December 31, 2018 In millions of CHF Share capital Treasury shares Translation reserve Other reserves Retained earnings Total equity attributable to shareholders of the parent Non-controlling interests Total equity Equity as at December 31, 2016 as originally published 311 (990) (18 799 1 198 82 870 64 590 1 391 65 981 First application of IFRS 15 (268) (268) 268) First application of IFRS 16 (189) (189) 189) Other (61 (61 61) Equity restated as at January 1, 2017 311 (990) (18 799) 1 198 82 352 64 072 1391 65 463 Profit for the year * 7 156 7 156 355 7 511 Other comprehensive income for the year * - - (637) (209 122 276 (27) 249 Total comprehensive income for the year * (637) (209) 8 278 7 432 328 7 760 Dividends (7 126) (7 126) (342) (7 468) Movement of treasury shares - (3 719) 113 (3 606) (3 606) Equity compensation plans 172 (11) 161 161 Changes in non-controlling interests (a) 93 93 104) (11) Total transactions with owners (3 547) - (6 931) (10 478) (446) (10 924) Other movements (70) (70) (70) Equity restated at December 31, 2017 311 (4 537) (19 436) 989 83 629 60 956 1 273 62 229 2017 restated figures include modifications as described in Note 1 Accounting policies and related impacts in Note 22 a) Movements reported under retained earnings include the impact of the acquisitions (see Note 2.5) as well as put options for acquisitions of non-controlling interests. Consolidated Financial Statements of the Nestle Group 2018 71Consolidated income statement for the year ended 31 December 2014 In millions of CHF Notes 2014 2013 Sales 3 91 612 92 158 Other revenue 253 215 Cost of goods sold (47 553) (48 111) Distribution expenses (8 217) (8 156) Marketing and administration expenses (19 651) (19 711) Research and development costs (1 628) (1 503) Other trading income 4 110 120 Other trading expenses W D (907) (965) Trading operating profit 14 019 14 047 Other operating income 154 616 Other operating expenses (3 268) 1 595 Operating profit 10 905 13 068 Financial income 135 219 Financial expense 5 772) (850) Profit before taxes, associates and joint ventures 10 268 12 437 Taxes 14 (3 367) 3 256) Income from associates and joint ventures 15 8 003 1 264 Profit for the year 14 904 10 445 of which attributable to non-controlling interests 448 430 of which attributable to shareholders of the parent (Net profit) 14 456 10 015 As percentages of sales Trading operating profit 15.3% 15.2% Profit for the year attributable to shareholders of the parent (Net profit) 15.8% 10.9% Earnings per share (in CHF) Basic earnings per share 16 4.54 3.14 Diluted earnings per share 16 4.52 3.13 58 Consolidated Financial Statements of the Nestle Group 2014Consolidated income statement for the year ended 31 December 2016 In millions of CHF Notes 2016 2015 Sales 3 89 469 88 785 Other revenue 317 298 Cost of goods sold (44 199) (44 730) Distribution expenses (8 059) (7 899 Marketing and administration expenses (21 485) (20 744) Research and development costs (1 736) (1 678) Other trading income 4 99 78 Other trading expenses 4 (713 (728) Trading operating profit 3 13 693 13 382 Other operating income 4 354 126 Other operating expenses (884) (1 100) Operating profit 13 163 12 408 Financial income 121 101 Financial expense 5 (758) 725 Profit before taxes, associates and joint ventures 12 526 11 784 Taxes 13 (4 413) (3 305) Income from associates and joint ventures 14 770 988 Profit for the year 8 883 9 467 of which attributable to non-controlling interests 352 401 of which attributable to shareholders of the parent (Net profit) 8 531 9 066 As percentages of sales Trading operating profit 15.3% 15.1% Profit for the year attributable to shareholders of the parent (Net profit) 9.5% 10.2% Earnings per share (in CHF) Basic earnings per share 15 2.76 2.90 Diluted earnings per share 15 2.75 2.89 60 Consolidated Financial Statements of the Nestle Group 2016Consolidated income statement for the year ended December 31, 2018 In millions of CHF Notes 2018 2017 * Sales 3 91 439 89 590 Other revenue 311 332 Cost of goods sold (46 070) (45 571) Distribution expenses (8 469) (8 023) Marketing and administration expenses (20 003) (19 818 Research and development costs (1 687) (1 739) Other trading income 4 37 112 Other trading expenses (1 769) (1 606) Trading operating profit 13 789 13 277 Other operating income 2 535 379 Other operating expenses (2 572 (3 500 Operating profit 13 752 10 156 Financial income 247 152 Financial expense (1 008) (848) Profit before taxes, associates and joint ventures 12 991 9 460 Taxes 13 (3 439) (2 773) Income from associates and joint ventures 14 916 824 Profit for the year 10 468 7 511 of which attributable to non-controlling interests 333 355 of which attributable to shareholders of the parent (Net profit) 10 135 7 156 As percentages of sales Trading operating profit 15.1% 14.8% Profit for the year attributable to shareholders of the parent (Net profit) 11.1% 8.0% Earnings per share (in CHF) Basic earnings per share 15 3.36 2.31 Diluted earnings per share 15 3.36 2.31 2017 restated figures include modifications as described in Note 1 Accounting policies and related impacts in Note 22. 66 Consolidated Financial Statements of the Nestle Group 2018