Financial Analysis of Burberry Group Plc
Burberry Group Plc is a British luxury fashion house established in 1856 and listed in the London Stock Exchange since 2002.
Customers can reach Burberry products through its diversified distribution network of retail, wholesale, digital and licensing channels operated in the United Kingdom and across the world. In year 2012, Burberry was ranked the 82nd best global brand in the world with regards to its high operating value and such ranking has been improved for the past few years (Bloomberg, 2012). Therefore, it is worth studying its financial information to see how its operation has developed causing increasing company’s value.
This report shall therefore carry out a financial analysis and equity valuation of Burberry Group Plc using information from its financial statements for the four-year period ended on 31st March 2012. The report shall then carry out a forecasting of its financial performance for the next five years including a sensitivity analysis to show how the valuation would be affected by the variation in the forecast. A recommendation on whether to buy or sell the share will be given at the end of this part.
For the second part of the report, I shall analyze the importance of income statement vis-à-vis that of the balance sheet as the primary financial statement from the perspective of an equity investor. Finally, the report shall explain under IAS 19 the key pension actuarial assumptions which are considered as the most important in computation of present values of defined benefit obligations. ...