Financial Analysis of Primark

2857 WordsJan 13, 201312 Pages
Contents Background 3 Introduction 3 Financial result 4 Percentage changes and Index number 5 Industry sectors and competitors analysis 6 Financial strengths and weaknesses of Primark 8 Where Primark would be ranked financial within its sector on the LSE 9 Forecast Primark’s 2011 post tax profits 10 Techniques (ratio analysis) evaluation 12 Corporate governance recommendations 13 Conclusion 16 Appendix 17 References 31 Background At present, the Primark Ltd has 162 stores located in the UK, Spain and Ireland. They are subsidiary of Penney Brand Company which is based in England and recently announced it has hired its 25,000th person among its stores (Nagdeman, 2009). According to a recently research, the…show more content…
| Market Cap. (£m) | Turnover (£m) | No. of employees | PER prospective | 2010 | 693.10 | 713.98 | 8,386 | 61.27 | 2011 | 721.34 | 799.18 | 9,698 | 683.82 | In this research study, Next and New Look Ltd were selected to analyse and compare with Primark. Next and New Look Ltd are both based on UK retail companies, Next Ltd is listing on the London Exchange Market. Financial ratios provide a quickly and relatively way of assessing financial situation of an organisation. Ratios could be very helpful when comparing the financial health of different business, and it describes the relationship between different items in financial statement (Elliott & Elliott, 2008). By calculating a relatively small number of ratios, it will build up a good picture of the position and the performance of an organisation. Ration analysis includes five main areas, which are including profitability, efficiency, liquidity, financial gearing and investment (Atrill & Mclaney, 2006). However, Primark is not issues it shares yet, and the whole data were not available, so the working capital cycle and investor ratios are missing in this research. The detail ratio analysis of Primark, Next and New Look are provided in the Appendix 3-13. By calculating and analysing the ratios, it seems likely that the financial situation of Next is better than Primark and New Look. Particularly, the profits and sales volume are

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