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 is a tool brought by individuals used to evaluate analysis of information in the financial statements of a business. The ratio analysis forms an essential part of the financial analysis which is a vital part in the business planning. There are 3 different ways of assessing businesses performance and these are: solvency, profitability and performance. Ratio analysis assists managers to work out the production of the company by figuring the profitability ratios. Also, the management can evaluate their revenues to check if their productivity. Thus, probability ratios are helpful to the company in evaluating its performance based on current earning. By measuring the solvency ratio, the companies are able to keep an
Ratio analysis will be used to measure the profitability, liquidity and efficiency of the named business and to analyse the performance of the business using ratio analysis.
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 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 generally used by the company to provide some information on how the company has performed during that year, so that the parties involved including shareholders, lenders, investors, government and other users could make some analysis before making any further decision towards that particular company. As mentioned by Gibson (1982a cited in British Accounting Review, 2002 pg. 290) where he believes that the use of ratio analysis is such an effective tool to evaluate the company’s finance, and to predict its future financial state. Ratios are simply divided in several categories; these are the profitability, liquidity, efficiency and gearing.
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.
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.
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.
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
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.
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.