StudentShare solutions
Triangle menu

Financial analysis of Burberry Company(FTSE 100 Company) - Assignment Example

Not dowloaded yet

Extract of sample
Financial analysis of Burberry Company(FTSE 100 Company)

fiscal year 2012/13 on market review and research that will be centered on important sites in Asia.2 Indeed, Burberry has turnout to be resilient. Since 2009, the company’s assets have grown by 43% and its equity has increased by 64%. The equity growth is mostly due its Retained Earnings that have more than doubled during the last four fiscal years of the company – from ?199.2 million in 2009 to ?507.1 in 2012. To fuel the continuing expansion of its operations in the last four years and to fund its working capital requirements, Burberry has not opted to issue additional common shares. Thus, its common stocks, at par value, have not increased in the course of the last four years. Instead, Burberry’s long-term liabilities have increased by almost 250% from ?35 million in 2009 to ?122.4 million in 2012. While Burberry has generally been operating as a profitable company, it incurred a net loss of ?6.0 million for the year ended 31 March 2009. In spite of the dire effects of the financial crisis that substantially crippled global giants that have considerable operations in USA and Europe, Burberry has generated operating profits that amounted to ?182.6 million for 2009. However, the non-operating expenses for 2009 ended up gobbling such profits made from the company’s operations. The total bulk of ?193.5 million was incurred mostly for booking impairment charges at ?129.6 million – the sum of ?116.2 million pertaining to the goodwill initially recognized for Burberry’s operations in Spain plus ?13.4 million for the stores established in the same country. In addition, negative goodwill has as well been credited at ?1.7 million for the formation of the Burberry Middle East joint venture. These procedures were conducted in compliance with International Financial Reporting Standards (IFRS) regulations that uphold International Accounting Standards (IAS) #36, which require the writing down of impaired assets and the recognition of impairment losses on goodwill and intangible assets.3 The foregoing matter aside, Burberry’s operations has delivered Earnings Before Income Tax (EBIT) that increased year-on-year from 2009 to 2013. In fact, the company’s EBIT in 2012 is 195% of the equivalent in 2009. The income statements below provide that while Burberry’s revenues increased by 54.57% from 2009 to 2012, its cost of sales increased by only 4.22%. This reflects an increased efficiency in the operations – sourcing, production and distribution. The balance sheets and income statements of Burberry for the years 2009 to 2012 reflect an overall uptrend of its income and, subsequently, its book value per share. The common-size balance sheets highlights the increasing share of Burberry’s equity vis-a-vis the decreasing share of its total liabilities in the total assets of the company. It means that the investment of creditors in the form of loans, etc. have through time become less than the worth of the company’s equity. While the company’s assets were represented as 51.68%-liabilities and 48.32%-equity in ...Show more


BURBERRY COMPANY: A FINANCIAL ANALYSIS Founded in 1856, Burberry Group plc is engaged in designing, sourcing, manufacturing and distributing luxury clothing, fashion accessories, watches and jewelry, shoes, bags, eyewear, perfumes for men, women and children using its own well-known “Burberry” brand…
Author : mosesritchie
Financial analysis of Burberry Company(FTSE 100 Company) essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the assignment on your topic
"Financial analysis of Burberry Company(FTSE 100 Company)"
with a personal 20% discount.
Grab the best paper

Related Essays

The Coca-Cola Company Financial Results Analysis
From that humble back ground Coca-Cola Company had spread its wings all over the world. Presently the company operates in nearly two hundred countries with almost four hundred brands (Ford, Stephens and Cooper, 2007, p.2). This year the company celebrated its 125th anniversary.
3 pages (750 words) Assignment
Financial analysis of a company
John, Bliss, and Calderoni. The company has expanded itself into the overseas market by opening international subsidiaries in United States, Japan, Switzerland and few other Asian countries. The Group has 78 points of sale throughout the world and many brands placed on Italian and international fashion streets.
9 pages (2250 words) Assignment
Company risk management analysis
Vodafone Plc has a history going back to 1982 when it started as Racal Telecomm and was awarded the first mobile license in the UK. In 1985, the company was the first to enable an analogue mobile telephone call in the UK, two years later it launched Vodapage, a paging network that covered over 80 percent of the country.
10 pages (2500 words) Assignment
The Coca-Cola Company Financial Results Analysis
This year the company celebrated its 125th anniversary. In this project second quarter’s financial results of 2011 have been analyzed. The analysis includes the overall growth of the
3 pages (750 words) Assignment
Financial analysis of a company
The Group has 78 points of sale throughout the world and many brands placed on Italian and international fashion streets. It is extensively relied
9 pages (2250 words) Assignment
Company Analysis
Its five business divisions represent the breadth and depth of the companys core offerings (Google): Microsoft Corporation, incorporated on September 22, 1993, is
25 pages (6250 words) Assignment
Microsoft company Analysis
Along with organic growth, the company nurtured on acquisitions, such as those of Skype and Nokia mobile unit. During the financial year that ended in June 2013, Microsoft recorded a revenue of 77.8
4 pages (1000 words) Assignment
These are the headquarters in Geneva that serves Latin America, Africa, India, Europe, and the Middle East. The Hong Kong office serves the Asia-Pacific
2 pages (500 words) Assignment
Company Analysis
The firm is a division of a "brick and mortar" retailer, with the parent company being Esprit Retail B.V & Co. KG. It was founded in 1968 by Douglas Tompkins and Susies Tompkins
12 pages (3000 words) Assignment
Background History of Burberry Company
The essay analyzes the Burberry's Background History. There should be a well-designed business plans, developing and selecting merchandise, promotion and selling of the goods and paying much attention to the customers. Merchandising of fashion should include all the accessories and attires for men, women and children.
8 pages (2000 words) Assignment
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation