Analysis of Boohoo Group's Fiscal Performance and Future Prospects

International and
Accounting Finance

Contents
MAIN BODY..................................................................................................................................3
1. Introduction and background of the company.........................................................................3
2. Brief analysis of the fiscal performance through ratio analysis..............................................3
3. Comparative analysis from the competitor ASOS Plc............................................................4
4. Determination of the future performance of the company......................................................4
5. Give a conclusion by stating that whether the investors should buy the share or invest in the
competitors..................................................................................................................................4
REFERENCES................................................................................................................................6

MAIN BODY
1. Introduction and background of the company.
The Boohoo group is an organisation which deals in the fashion world and has an online
platform for its fashion store in Britain which was introduces in the year of 2006. It is such a big
name that it has manage to procure many renowned brands. It was founded by Mahmud Lamani
and Corol Kane. Thy that the existing chairperson of the enterprise. The company caters
primarily to people between the ages of 16 and 24, and it operates in over 100 countries. In the
year 2014, first time it listed its shares on the stock exchange (Laela and et.al., 2018). Boohoo, as
an internet retailer, uses social media to sell itself. Lancashire is where the company's primary
distribution centre is located. The corporation was previously condemned for promoting quick
fashion at the expense of the environment. The majority of Boohoo's clothing is made in London.
Nasty Gal, Pretty Little Thing, boohooMAN, and Miss Pap are among the brands owned by the
company. Covid-19 harmed the company, and it is currently having problems with suppliers.
2. Brief analysis of the fiscal performance through ratio analysis.
From the performance of the Boohoo group in 2018, it can be evaluated that:
1. The Gross Profit margin of the organisation has increased by approximately 2 %, which
means that it revenue has been hiked up with the simultaneous increase in the gross
profit.
2. On the overall, the current ratio of the firm has declined which faced that the liquidity is
lowering. But, nevertheless, it has maintained its liquidity nearby the idealist function of
the ratio.
3. The gearing ratio has increase; it means that the debt or the liability has increase over the
time with the context to the shareholder’s equity.
4. On the other hand, the shareholder’s equity has declined as can be interpret from the
gearing ratio as well (Nobes, 2018).
Overall, the firm is doing good, but it needs to mend its strategy by involving and enabling the
firm for making the decisions critically.