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

Better Essays

Executive summary
This report provides a clear analysis and evaluation of the company and its financial statements, current performance, competitor’s performance and the financial stability of Burberry group limited. A financial ratio analysis carried out , touching the return on capital employed, gross profit %, net profit margin and current ratio to name a few. Calculations can be found in the appendices.
Results from the data analysis show that when compared with the previous year, high performance was achieved. In some other areas, when compared with its competitors the company performed poor in terms of inventory management, credit pay-out period, revenue per fixed asset.
Burberry will require further investigation and improvement by its management to take action and assist in these areas of weakness. Burberry will have to improve on its inventory turnover, improving trade receivable collection period and reducing the trade payable time period.
Limitation of this report shows figures in the report were based on constant exchange rate from past periods. This doesn’t show the correct figures for the current year.

The report is set to inform on the fair review of the company, the current performance of the company during the year, financial position and liquidity compared to the previous years and a rival company. The sales growth of Burberry has increased in its mainline by 20% due to the focus on reclaiming Burberry menswear’s

Get Access