I . Balance sheet analysis
a) Analysis of Carrefour's balance sheet
Total Current Assets
Total Current Liabilities
| Total Liabilities
Total Liabilities & Shareholders' Equity
| (*Million Euros)
First, during the last 3 years, non-current assets have decreased regularly. Carrefour is always acquiring new goodwill, especially in France. In June 2011 the general assembly decided to sell Dia, a former subsidiary of Carrefour. The main objective was to earn cash (4 billion Euros). Tangible assets represent the biggest part of non-current assets, they have also decreased, especially between 2011 and 2012 (minus 16.43%). In fact, a major part of intangible assets is decreasing. This might be a financial strategy. Concerning the current assets, they remained constant since 2010. The new Carrefour's strategy in order to lose less money concerning their inventories was simple. It consists in giving the responsibility to managers, to manage their own inventories. This replaced the old method of replacement assisted by computer. We can noticed a change of -2.09% between 2010 and 2011 and a much bigger change between 2011 and 2012 (-17.38%). We observe that Carrefour has less assets years by years since 2010. This decrease is maybe linked with the strategy of Carrefour. In fact, the direction decided to sell the assets in the countries where their competitors were too strong. Normally, this decline will stop during the current year (2013). The french group claimed that it has reduced its debt and that's why it's now able to invest in its non-efficient markets. Concerning cash and cash equivalents, it has increased of more than 17% between 2010 and 2011. Then, an huge increase of 70.77% between 2011 and 2012.
For 2010, 2011 and 2012, the total shareholders' equity represents 19,69%, 15,91% and 18,24% of the total shareholders' equity and liabilities. * The net profit of Carrefour is actually negative for 2011 (-2020 million Euros) * consolidated reserves are less important in 2011 ( almost 3 million less than in 2010)
Non-current liabilities decreased of 2.79% between 2010 and 2011 but it increased by 9.38% during the next year. Carrefour take care of its debt. We can see it in the Balance sheet in the long term borrowings (biggest part of non-current liabilities). Indeed, long term borrowings decreased since 2010 (-8.22% and -5.57%) but Provisions have increased in the same time (+15,43% then +8.70%). It is logical, because we are in a crisis context, Carrefour must do provisions in order to face the difficulties of today.
Current liabilities have declined during the last three years, by 8.34% then by 15.90%.
We observe a huge decline in accounts payable, that represents more than the half of current liabilities between 2011 and 2012. It may also be because of this will of reducing the debt of the company in order to improve its financial health.
b) Simplified balance sheet
Current assets (excl cash)
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