Among fashion design retailers, one of the well known fashion design retailer company is Zara. According to the New York Times (2012) describes that Zara is the Spanish retailer company was founded by Amancio Ortega and Rosalia Mera in 1975. Zara holds other brands such as Pull and bear, Uteque, Massimo Dutti, Bershka and Stradivarius. Zara word is derived from Zorba. The expansion of company started with store opening in Portugal in 1980. Zara got success to put its name in US market in 1989 and French market in 1990. When different brand was introduced and new name was introduced as Inditex. By the time of 2009 it holds one thousand seven hundred and fifty-one stores worldwide which had an income of over nine billion US dollars. The aim of company is to contribute sustainable development of society and that of the environment where they interact. The company focuses on environmental protection and commitments towards the waste by re-using and recycling method.
Task 1 Introduction of Ratio Analysis and its types
Ratios analysis is the way to calculate the company operating and financial performance through profitability, liquidity, gearing, investing and activity ratio. According to business.com (2015) explains that ratio analysis determines trends and find out the strengths and weakness of the company. While calculating, data and information are compared with past ratios within the company and different company. After through study on data and information
To analysis financial statements there are various tools. Ratio analysis is one of them. In ratio analysis we establish relationship between two or more items of financial statements and derive some vital information about the business.
Ratio analysis are useful tools when judging the performance of a company by weighing and evaluating the operating performance (Block-Hirt). There are 13 significant ratios that can separate by four main categories,
Ratio analysis are useful tools when judging the performance of a company by weighing and evaluating the operating performance (Block-Hirt). There are 13 significant ratios that can separate by four main categories,
Ratio analysis acts as powerful tool in analysing and interpreting the financial statements of a company. Ratios help as to find the relationship between different items appearing in the financial statements of a company. They are also used in examining various aspects of financial position and performance and are widely used for
Zara International was a retail shop originated in La Coruna, Spain in 1975. It was clothing and accessories shop and imitated the latest fashion trends and sold them at a lower cost. It became Zara International after entering Portugal in 1988 and then the United States and France in the 1990s. The distributor for this brand is Inditex and is considered the most successful retail chain in the world. Zara has a business strategy that is very different from the retailers nowadays. If a customer orders a product Zara’s distribution centers can have the items in the store within 24 to 48 hours of receiving the order, depending upon the country. The business plan that Zara’s executives made was very innovative and played a great part in the
Zara is company related to apparel retailing headquartered at La Coruna Spain. It is the top Brand of Inditex Corporation owned. It was founded by Amancio Ortega in the year 1975. The Brand is well known for affordable and fashionable designs of clothing. The company 's target is to secure a big market share among the young and fashion conscious people across the
Ratio analysis is a technique of analysis and interpretation of financial statements. However ratio analysis is not an end in itself. It is only a mean of better understanding of financial strengths and weaknesses of a firm. Calculation of mere ratio does not serve any purpose, unless several appropriate ratios are analyzed and interpreted. There are number of ratios which can be calculated from the information given in the financial, statements, but the analyst has to select the appropriate data and calculate only a few appropriate ratios from the same keeping in mind the objective of analysis.
Ratio Analysis is a type of Financial Statement Analysis that is utilized to achieve a quick indication of a firm's financial performance in numerous key regions. Financial ratios aid in deciding the connection between two variables in the financial statements. The data necessary for the computation of the ratios is supplied by the financial statements of the firm. Areas where performance has improved or deteriorated over time can be recognized this way. Ratios are utilized methodically to deduce the strengths and weaknesses of a firm and also its historical performance and current financial conditions.
Zara is a brand widely known across the globe for its unique fashionable cloths .It is a part of inditex which is known as one of the world’s largest distribution group in the world and the owner of the company is Spanish businessman named Amancio Ortega .This company was formed in 1963 as a fashion retailer for women clothes but the company became a success after the addition of a new brand named Zara in 1975 .Today Zara is amongst one of the largest international company producing the fashionable clothes. After the success of the inditex as a successful brand (ZARA) maker, inditex was able to expanded itself with more successful brands across the world in different countries at the end of the 1980.from 1976 to 1983 Zara turned out to be a successful retailing brand and introduced itself with nine new outlets to the biggest cities of the Spain with its first headquarter in Goa. Year 1984 turned out to be the witnesses of first logistics headquarter of Zara covering a large area of 10,000 square metres. New York
Zara is an apparel company and the leader brand of the Spanish retail mogul, Inditex. zara was established in 1975 in Spain by Amancio Ortega who is currently the 3rd richest man in the world, the first store was opened as an outlet but by 1979 the establishment already had six stores at different locations in Spain and by 1985 the company branched out to Portugal new york city and Paris. Today Zara has over 1900 stores worldwide which are located in 22 different countries; these stores render employment to over 125,000 employees. Zara depends on information they gather from customer and organizational feedback from all their stores on a daily basis this information is then forwarded to the supply chain, which works in synergy with the stores to keep the level of storage in stores down to a minimum. Zara owns the production, supply chain and in-house production, which lead to greater speed in output (M.A.Cano)
As the ratio analysis is a fundamental necessity of evaluation a firm’s financial and operational soundness and overall performance, the successive section is dealt with ratio analysis of the company. The meaning of the ratios used for
Zara is one of the largest international fashion companies and has over 2000 stores located across 88 countries. It is part of the large distribution group Inditex, which also owns brands such as Pull & Bear, Stradivarius and Bershka.
Ratio analysis is a technique of analysis and interpretation of financial statements. However ratio analysis is not an end in itself. It is only a mean of better understanding of financial strengths and weaknesses of a firm. Calculation of mere ratio does not serve any purpose, unless several appropriate ratios are analyzed and interpreted. There are number of ratios which can be calculated from the information given in the financial, statements, but the analyst has to select the appropriate data and calculate only a few appropriate ratios from the same keeping in mind the objective of analysis.
Every company or business using ratio analysis to measures financial performance within a period of time to shows their profit or loss. There is no doubt that ratio analysis gives great insights about a company. Using ratio analysis by a company also has few disadvantages.
Zara is a Spanish brand of clothing founded by the visionary Amancio Ortega Gaona and Rosalia Mera in Artexio, Galicia. Zara was founded in the year 1975. It is one of the major selling brands of one of the biggest fashion retailer "INDITEX". Zara is now available in 86 countries with total of 1,763 stores worldwide.