To any company whether small or a large corporation, the financial analysis is very important in order for a successful business. This will determine if the company is healthy enough to invest or even to see where you are weak in the financial part of the business. It is the company’s responsibility to present accurate analysis of their financial reports. What I hope to present to you is information that you will help see the comparison of both companies within their financial standings. In this report I will present a vertical analysis and a horizontal analysis, and ratio analysis. I will also try to provide some strategies…
According to Google Finance, IBM’s stock price is at $164.64, earning per share $11.52, total debt to assets 25.23 and expecting to be growing more. When we analyse these ratios we realize that HP is trailing behind IBM. Though HP has more current assets when compared to IBM, it equally has greater claims for the assets, thus bringing down the ratios as…
The financial statements for both companies from 2008 were examined to understand the financial performance of the companies looking at key decisions made or events that have occurred over these periods and their implications on the profitability, operating efficiency, liquidity and financial risk for both companies.…
as opposing Shareholders rights to obtain fair revenue for their investment. In this paper, we argue…
Financial characteristics of companies vary both from industry to industry and within a single industry for a variety of reasons. The challenge for any company in planning its strategy is the consideration of the industry’s economics in conjunction with their own strategy to help the company’s financial statements remain strong and competitive across both lines. In this case, we are asked to use this consideration of strategies to determine which company description belongs to which company’s financial statements. We will begin this case brief with a short overview of the issues in the case, followed by our determination and reasoning for the pairings of financial statemtments and company description. Finally, we will conclude the brief with an explanation of why differences exist in financial results across industries.…
As a part of our MLA2 International Finance Analysis, for our assessment we are required to complete this report project on financial analysis of two competing companies with the purpose of finding which company is the best to invest.…
Since only Inditex historical financials are shown in the case, we took the financials of Inditex…
H&M have gone from being a single store established in 1947 in Sweden, to being a fast fashion multinational company with over 2206 stores in 43 different countries as well as 94,000 employees worldwide. However their success has and dominance within the market has been an area in which they as a company have been affected. This factor is seen as the most critical issue in which H&M have been confronted with in that their declining market position espescially with the emergence and success of rivalling fashion company Zara. In the year 2011, H&M had an operating revenue (Turnover) of US$16,137,877 which was second to Zara who had an operating revenue (Turnover) of US$17,159,719 which is an indication that Zara are becoming increasingly larger and more successful than H&M. Sustainability is another critical issue in which H&M have been faced with, espescially in their high fashion/low-price formula/operations, whereby its sustainability has been questioned by Zara. The “Increased competitions and the fact that margins had started to decline due to increased cotton prices and rising production costs in Asia” is one of the main factors behind this formula coming under scrutiny.…
This report is about ZARA which is a global brand of clothing owned by the Inditex Group. It is the world's third-clothing retailer, one of the world's four major fashion chain (the other three are the United States of casual fashion giant GAP, the Swedish fashion giant H & M, German parity giant clothing chain C & A), has more than 2,000 stores in 70 countries around the world. It was established in 1975 by Spanish fashion designer and tycoon Amancio Ortega. The first store opened in Galicia, Spain, where it is now headquartered. The company is very unusual in the fashion retail world and incorporates many pioneering concepts. The company takes just two weeks to get its products on its store shelves after designing them, compared with six months for its competitors. It does not advertise, preferring instead to use money on opening new stores. Zara also owns and controls every stage of production from design, manufacture, supply and sales. A Louis Vuitton spokesperson described it as “possibly the most innovative and devastating retailer in the world”. (Baidu.com 22, June, 2012)…
In this report we are comparing two of the biggest clothing companies H&M and INDITEX by using profitability ratios for making a financial statement analysis. We will state opinions in regard to the previously analyzed figures and comment on them.…
The middle-aged mother buys clothes at the Zara chain because they are cheap, while her daughter aged in the mid-20s buys Zara clothing because it is fashionable. Clearly, Zara is riding two of the winning retail trends - being in fashion and low prices - and making a very effective combination out of it. Much talked about, especially since its parent company's IPO in 2001, often admired, sometimes reviled, but hardly ever ignored, Zara has been an interesting case study for many other retailers and fashion brands around the world.…
Zara is a part) is headquartered in La Coruña, northwest Spain, where the first Zara store opened in 1975.…
II. The amount of relevant data (warehouse inventory, store inventory, and store sales history for each article) is also enormous,…
H&M is a leading global fashion company, offering affordable and good quality fashion for women, men, teenagers and children around the world (H&M, 2014). To ensure the best price, H&M (2014) claims that they have no middlemen, buy right items in large volumes from the right market. Also, they have their own designers, pattern makers and buyers, and they work as teams to create the collections and make sure the collections are adapted to customers’ demands. According to H&M (2014), the first store was established in Västerås, Sweden in 1947 by Erling Persson. Moreover, Persson can came out this idea because of a business trip to America, during this trip he was introduced to the America’s high-volume efficient outfits that Barneys and Macy’s carried (Göransson et al, 2007). He brought this retail idea back to Sweden. After around sixty years development, today H&M has approximately 3,200 stores on five continents in 54 markets and about 116,000 employees worldwide (H&M, 2014). In addition, the online store is available in ten European countries and the USA (H&M, 2014). Finally, the overall turnover in 2013 was over SEK 150 billion including VAT, which increased by 9 percent in local currencies (H&M, 2014). Besides, according to Adbrands (n.d.), H&M’s majority international competitor is Inditex, owner of Zara, which is the world No.1 apparel company. Current competition also includes other fast fashion brands, for example, GAP, Topshop, Forever 21 (Lynn et al, 2009). Additional, since all the rivals have similar business concept, which offer affordable fashion, hence, the context for H&M is challenging.…
A few comments on the organization and content of the report may be helpful to reader. In doing so, we realize that some topics may be more important to some reader then to other. For that reason we some advanced material (e.g. questionnaires) appears in appendices. Our goal is to help the reader who must compare financial position of these two companies.…