Primark Financial Ratios

In accounting there is much to be learned, about the financial aspects of a business. In the past five weeks I have learned the importance of financial reports and how they relate to the success of an establishment. These reports may include balance sheets and income statements, which help accountants and the public grasp the overall financial condition of a company. The information in these reports is really significant to, managers, owners, employees, and investors. Managers of a business can take and deduce financial

Abstract : Analysis of financial statement of a company is an important because it is useful to obtain Information

Primark is a subsidiary company and retail division of Associated British Foods. They started Primark in 1969 at Mary Street, Dublin. It is an Irish fast fashion retailer with more than 250 selling space across Austria, Belgium, Germany, Ireland, the Netherlands, Portugal, Spain and the UK. The company is registered and headquartered in the city of Northern Ireland, Dublin. In Northern Ireland, Primark stores are traded with the name of Penneys. They will always follow this ‘Operated by Primark’ that customers can see on their shopping bags. Primark offers a wide variety and deep assortment of products, stocking everything from home ware to womenswear, menswear, accessories, beauty products and confectionary. The products are

Primark, which was build up in Ireland, is one of the fast fashion leaders in the UK retail market. The all 181 stores spread over Ireland, Spain, and the UK. The competitive advantage of the group is producing volume clothes and selling them in cheap price. Primark sell different catalogue product, women clothing, men clothing, shoes, accessories, baby clothing, children clothing, underwear, swimwear and nightwear. Nearly cover all variety of the clothing. According to Primark website figure, “Primark Stores Lt is a subsidiary of Associated British Foods. Associated British Foods is a diversified international food, ingredients and retail group with global

Primark has functional structure in order to ensure that every organizational aspect is being grouped according to its principle. With such type of business, it consists of various marketing division, like a production division and sales division. Primark is operating with tall structure.

SUMMARY OF STUDY OBJECTIVES 1Identify the sections of a classified balance sheet. In a classified balance sheet, companies classify assets as current assets; long-term investments; property, plant, and equipment; and intangibles. They classify liabilities as either current or long-term. A stockholders' equity section shows common stock and retained earnings. 2Identify and compute ratios for analyzing a company's profitability. Profitability ratios, such as earnings per share (EPS), measure aspects of the operating success of a company for a given period of time. 3Explain the relationship between a retained earnings statement

They follow a basic principal; it is easier to sell more goods to the same

In order to understand and conduct a complete financial analysis of either organization, or any company for that matter, that desires to increase aspects of business, an analysis becomes fundamental when defining the company’s current standings in the market. This can also be a great way in order to discover new ways for expansion of productivity and development within the organization. Throughout the execution of a financial analysis of any business, it is imperative to understand the background of the company and the products they produce and sell. By understanding these

Primark Stores Ltd. Is a value fashion retailer that was founded in 1969 and operates as a subsidiary of Associated British Foods plc. Primark sell a wide variety of product from

For the purpose of evaluation, there are some financial ratios which are calculated and the analysis of the results shows the performance of the company over the years. Financial analysis is the evaluation and interpretation of the financial data. This analysis is important for investment and financial decision making. This financial can be internal to the company for check and balance and for the measurement of the employees performances. This financial ratio calculation

Primark is a company which sells clothing, accessory, shoes and home products. Its first store opened in Dublin in 1969 and expanded significantly in the later years. In 1973, Primark moved into Great Britain and now have 152 stores in the UK (Primark company website, 2010). Primark as one of the important clothing retailers in the UK, overtaking Asda and became the NO1 low price retailer in 2009 (Hall, 2009).

The “financial statements are formal reports providing information on a company's financial position, cash inflows and outflows, and the results of operations” (Hermanson, p.22). There are four main components that make up a financial statement. The four parts are, balance sheet, income statements, cash flow and, statement of owner’s equity. The balance sheets role is to define the company’s assets liabilities and revenue of the business. The income statement shows the income within the company. Cash flow reviews the position of the company by cash payments and receipts. Lastly, the statement of owner’s equity shows the amount of earnings, stock and other capitals of people in the company. (Hermanson, p.34-35).

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).

This is due to the fact that it has been able to attract an assortment of customers to its brand. Primark also boasts of a high number of employees as a major strength. Due to the fact that the company is known for rewarding its employees well for their efforts, most of them put immense effort in their work to ensure the success of the company (Associated British Foods, 2012; Key Notes, 2012). Furthermore, Primark’s strength seems to be guaranteed for a considerable period of time since it is evident that the company has made efforts to ensure improvement of its various products and services. Other strengths associated with the company includes; distinctive products as well as the company’s background, a wide range of strategic moves that the company has made in the future and continues to make even presently, and the company’s indisputable workforce diversity among other strengths (Associated British Foods, 2012; Key Notes, 2012).

Balance sheets and income statements are a snapshot of a company’s stability and financial situation. Combined the statements show the income, expenses, and stockholder’s equity in the company. These statements are often analyzed by financial institutions when a company comes to them needing a loan. Stockholders and other investors also look at these statements to make sure their investment will return a profit for them. This paper will look at four different companies and their balance sheets and income statements. The companies are Eastman Chemical Company, Covenant Transportation