Financial analysis for Inditex
Inditex financial analysis:
Be sure to distinctly address each of the five areas of financial analysis-profitability, liquidity, leverage, activity and growth- talk about each in one paragraph and start with a topical sentence every time. The financial analysis must be thorough and accurate, look at trends and compare the company?s performance to its rivals (H&M, The GAP, Bentton). Evaluate the primary financial indicators, provide supporting data (check the excel document attached, where I have already calculated the ratio for each for the years of 2009, 2010, 2011) and interpret them to show how they affect the company regarding its present and future strategic performance.
Close the analysis by writing a paragraph that draws conclusion about the company?s overall prospects( like is good, bad? and then support your overall statement by providing concluding statements about the five areas you have already talked about) and the impact of its financial condition on its potential strategic plans. The fundamental question you are trying to answer is, ?What is the overall financial status of the company now, and what does its current financial status mean for its future success or ability to grow sales??
Note: try to not focus much on the definition rather than the strategic impact that the ratio implies.
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