Assessment 2 Financial Coursework - Part A

Assessment 2
Financial Coursework
– Part A

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Introduction and background of industry....................................................................................3
Introduction and background of company...................................................................................3
Qualitative analysis of firm.........................................................................................................4
Calculation of ratios for two years...............................................................................................4
Comparative analysis of financial performance..........................................................................7
Comparative analysis of company with industry.........................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Management means to organise the whole work with a view to achieve organisational
objective. In financial accounting it means to manage the financial resources of company in such
a way that it results in maximisation of wealth and profits (Bock and et. Al., 2017). The company
chosen in this report is Boohoo Group. It is a UK based online fashion retailer with headquarter
in Manchester. The report discusses about the background of the chosen industry along with
background of company. It conducts qualitative and quantitative analysis of the firm. Further it
analysis the performance of firm and compares with other business.
MAIN BODY
Introduction and background of industry.
The fashion industry of UK plays as important role in leveraging economy of country high.
Growth in population and increase in awareness among people about fashion is raising demand
of fashionable clothes in UK. In year 1984, when a lady ordered its groceries by calling a
grocery store after viewing list of items on computer. After that trend of online shopping started.
Now, companies have their own portal where people select their product they want to buy and
simply place an order without having any physical contact with seller. In same way, fashion
industry layers also showcase their products on their portals and attract customers to purchase
them. This has provided a pool of choices for customers from which they can make choice of
their required stuff (Essel, 2021).
Introduction and background of company.
Boohoo group is an online fashion store in Britain which was founded in year 2006. It
deals in more than 36000 products. It has acquired many brands and online stores. The firm was
founded by Mahmud kamani and Corol Kane, who is at present the chairman of organisation.
The business focuses mainly on people from age group of 16-24 years and is serving in more
than 100 countries. It first listed its shares on year 2014. Being an online retailer, Boohoo makes
use of social media for its marketing. The main distribution centre of firm is in Lancashire. The
company was once criticised for promoting fast fashion as they produced at cost of environment.
Mostly clothes of Boohoo are produced in London only. Company also owns brans like Nasty
Gal, Pretty Little Thing, boohooMAN and Miss Pap. The firm was affected by Covid-19 and is
facing issues with suppliers at present (Sivasamy and et.al., 2019).