Financial Comparison of Burberry and French Connection - Research Paper Example

Only on StudentShare

Extract of sample
Financial Comparison of Burberry and French Connection

This shows that the company can easily pay all its debts in case of liquidation due bankruptcy or other reasons. Current assets include cash and cash equivalents, accounts receivable and notes receivables, inventory end, office supplies (bond paper, folder and others), furniture and fixtures, office equipment (computers, calculators, adding machines and the like) and many others.
When the total debt of Burberry amounting to 286 is divided by its equity to the tune of 387, the result is seventy -four percent. This shows that the company does have a good leverage ratio. The leverage ratio is a must analytical tool when borrowing huge sums of money from banks and other credit institutions.
Based on the above analysis, Burberry has a better debt to equity ratio because its debt to equity ratio is seventy -four percent. On the other hand, French Connection has a bad leverage ratio because its debt to equity lower at only forty eight percent. The best debt
When the net income of Burberry is divided by its revenues amounting to 106 is divided by its net sales or revenues of 743, the result is fourteen percent. This shows that the company should increase its net profit ratio by either increasing its revenues or decreasing its costs and or expenses.
Based on the above analysis, Burberry has t ...
Download paper

Summary

They say that accounting is the language of business(Meigs, 1995). Well this is definitely held true when the balance sheet, income statement and the statement of cash flows are used in financial statement analysis with the aid of ratios(Larson, 1995). The following paragraphs compares the financial statement ratios of the French Connection and Burberry companies.
Author : salma69

Related Essays

French racism
4 pages (1004 words) Essay
A financial comparison on Zara and Burberry.(UK)
4 pages (1004 words) Essay
French Politics
7 pages (1757 words) Research Paper
Wal Mart. Financial Statement comparison
2 pages (502 words) Essay
carpetright plc financial comparison
10 pages (2510 words) Coursework
burberry
1 pages (251 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!