Ask a question from expert

Ask now

Project Report on H&M Company

13 Pages3565 Words404 Views
   

Added on  2020-06-06

Project Report on H&M Company

   Added on 2020-06-06

BookmarkShareRelated Documents
FINANCE
Project Report on H&M Company_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK A...........................................................................................................................................1Overview of company............................................................................................................1Financial statement analysis...................................................................................................2Sales performance of H&M....................................................................................................2Gross profit and margin .........................................................................................................3Profit and loss statement analysis...........................................................................................4Balance sheet..........................................................................................................................5Cash flow statement analysis .................................................................................................6Ratio analysis .........................................................................................................................7Limitations .............................................................................................................................8Recommendations..................................................................................................................8TASK B...........................................................................................................................................8Pricing methodologies............................................................................................................8CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
Project Report on H&M Company_2
INTRODUCTIONFinance is an essential aspect for every business organisation. It is required by companiesto manage their daily financial transactions. Without sufficient amount of finance, managers arenot able to manage and plan their project in an effective and efficient manner. This particularproject report is based on the financial analysis of H&M Company. It consists of usefulstatements like profit and loss, balance sheet and cash-flows. In order to ascertain outsideinvestors to analyse the profitability and interest of a business. Investors can use to identifyperformance of H&M during the year for the purpose of determining current position of thecompany (Bäuerle and Rieder, 2011). H&S expansion planning is to capture maximum marketboth online and offline mode. They want to make sustainable product to get effective growth innear future. This particular analysis covers various analysis by using ratios. It will also examinevarious risks and opportunities about company and take measures to resolve uncertainties. On thebasis of financial information, evaluation is done to provide necessary suggestions that arebeneficial for decision-making in business.TASK AOverview of companyH&M is a leading group in fashion industry by offering plenty of attractive brands andhome care products to the customers. Every products those are develop by the company is havingtheir own unique identity All brands are connected by a feeling for fashion and superior quality.They derive to make customers feel in a sustainable manner so that they look more pleasant inthere dress. It was started with a single women's wear store in Sweden. It was established in 1947and now, in the current scenario, group is having various availability of fashion brands and largeinternational presence. There long term expansion is made by targeting both online and offlinecustomers. The main aim is to make deliver the best quality of products and services tocustomers so that they can enhance their productivity. With 13000 new colleagues in 2016, theyare planning to expand their business at every place. According to the last year of sales which isrecorded as SEK 223 billion. They are having 43 online markets and approximately 4500 storesin 69 markets.1
Project Report on H&M Company_3
Financial statement analysisH&M group's sales consists of certain rate which is increased from 7% in local currenciesduring the year. By converting it into SEK, sales increased from 6% to SEK 222,865m. Grossprofit of company enhanced to SEK 106,177m. Because of the same, gross margin of 55.2% isrecorded during one accounting year.Profit after including items is amounted to be SEK 24,039m. This entire PAT is subjectedto SEK 18636m which is corresponding to 11.26% per share. The profitability of company isaffected by increase in mark-downs while, it is having higher purchase cost from the US dollar.With the expansion of 427 new stores and 11 online market they are generating more effectiveresults for the company to establish their position at national or international level. According to Karl Johan Persson, CEO of company has provided necessary informationabout the performance of company in an effective manner. It is a tough challenges for them togenerate more effective outcomes for the company. They are more focused on targeting thereonline customers and by digitalisation, they can sell plenty of brands to them in order to increaseprofitability as well as productivity of company. It is also a positive sign for them to develop awell and effective platform for the industry towards going into a new era. Sales performance of H&MH&M group’s sales in local currency includes 7% increase in the year 2016. I In 2017, itwas recorded with 4% increase to SEK 231744 m. in local current it increase by 3% only. Thecomparison among total sales enhancement is increase from the last year. Currency translationeffects are increasing when sales and profits in domestic market are translated in the reportingvalue of national currencies. Currencies translation risk: It is develop because of the company net assets thatconsists of equity investment and debt those are represented in international currency (Chen,2012).Particular Net Asset position Net liabilities position Weakness (SEK m) GainLossStrength (SEK m)Loss GainSales including VAT by Market as per the number of stock2
Project Report on H&M Company_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Financial Management for Decision Making - Desklib
|8
|759
|69

Accounting and Finance Assignment - H&M
|13
|2965
|155

Financial Analysis of Premier Investment Limited
|12
|1999
|87

Financial Decision Making: Assignment
|16
|4244
|59

Assignment on Accounting and finance - Next Plc And Hennes & Mauritz Company
|16
|3659
|165

Exam/project
|19
|6019
|32