Swot Analysis Of Burberry 's Performance And The Financial Stability Of Burberry Group Limited

The financial performance of the company over the years six t thirteen is shown in table no 7. The data includes Revenue generated over the years, Earning per share, Return on Investment and Stock Prices. Chart 5 shows that there has been a decline in the revenues generated. Charts 6 to 8 all show a decline in Earnings per Share, Return on Equity and Stock Prices suggesting a poor financial performance by the company.

How did the corporation perform the past year overall in terms of return on investment, market share, and profitability?

Given the net sales in 2011 is still higher than 2010, we can assume the problem is most likely with its operating cost management. On the other hand, HH’s assets turnover rate dropping 0.30 from 2010 suggests an inefficiency of generating more sales with its increased assets in 2011.

The table below presents some of the basic financial performance measures over the period to be assessed; these may be examined individually to assess the company. When reading the results the figures have been taken from annual reports and where necessary the use of the adjusted figures have been incorporated. All figures in dollars are in million with the exception of the per share figures.

As the financial analyst of the company, this report is written in respect to how the financial position of the company can be improved. This report is aimed for the senior management team.

As a result, although the company’s changes in accounting policy were not easily to be understood by average investors, the company has shrewd accounting, operating, financing and investing moves made by senior management. So I guess the company would witness positive improvement in the

Financial data from past periods of a company, provides a perspective for future outcomes. Investors give proper attention to different ratios. In this report I am analyzing the financial position and financial performance of AT & T, a US. Telecommunication Company. The objective and conclusion of this analysis will be, if is either good or not to invest in the company.

Also, according to its leverage ratios, the company’s debts are not only very high, but are also increasing. Its decreasing TIE ratio indicates that its capability to pay interests is decreasing. The company’s efficiency ratios indicate that despite the fact that its fixed assets are increasingly being utilized to generate sales during the years 1990-1991 as indicated by its increasing fixed asset turnover ratio, the decreasing total assets turnover indicate that overall the company’s total assets are not efficiently being put to use. Thus, as a whole its asset management is becoming less efficient. Last but not the least, based on its profitability ratios, the company’s ability to make profit is decreasing.

In this assignment, I have chosen Burberry as the company to report. Burberry is one of the global luxury brand leader with a long history. It operates in three regions, Asia Pacific, Europe , Middle East, India and Africa (EMEIA) and Americas. I am interested in the firm’s performance in recent years. I am going to measure and analysis the performance of the corporate through Annual report 2015/16 and 2016/17 which published on 06-06-16 and 06-06-17 respectively.

The company’s creams inventory remains constant because it does not follow a trend in innovation and changes so often as the other products. The surplus in inventory is a big disadvantage since; last year’s products may not be in style this year in addition to the cost of storage. For all these reasons their cash flow is less in comparison with previous years causing that Luxor Cosmetics keeps increasing their bank loans, creating more debt, making it harder to pay out as 2011. In this particular situation the company could have either decrease its budgeted sales (productions) or increase its actual sales by improving more effective marketing strategy and research and development of its products in the markets. This way their inventory would decrease and their cash flow would increase. (Hopkins, 2009)

Market growth: Repositioning and revival of the brand has led the company to the fast growing path and Burberry would like to continue it in future. Business strategy adopted by Burberry at this stage would have long-term impact on its growth. Therefore, market growth becomes an important criterion for basing any recommendation.

- The financial statements for the past three years show a decline trend in both the operation and return on shareholder of the company, so a closer look at the factors contributing to this decline is needed.

Burberry Group plc (Burberry) is into the global luxury sector. It works in the designing, marketing and sourcing of outerwear, women’s wear, men’s wear, non-apparel and children’s wear categories. It distributes through a diversified network of retail, wholesale and licensing channels worldwide. The company operates its business in three ways by region, by product and by channel. Burberry distributes its products in Europe, Spain, Americas and Asia Pacific through retail and wholesale channels and with selective license arrangements. In addition, it licenses third parties to manufacture and distribute products using the Burberry trademarks. It categorizes

To sum up, there is no easy answer on what should Burberry do next. The

Ten days had been passed since the Q3 result was announced. Uli Becker, CEO of Reebok and the board members was concerned about the consistent decline in revenue of company since 2006 (Exhibit - 1). It was a tensioned morning for the top executives of Reebok. They wanted to know the reason of such a consistent decline in revenue. They wanted to know where the strategies were gone wrong. What is the future of Reebok?? Will company survive?? These were the topics which made the conference room warm. Executives knew very well that company needs a huge change in its corporate strategies and operational strategies as well.