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Financial Analysis Individual Assignment

   

Added on  2021-06-30

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FINANCIAL ANALYSISINDIVIDUAL ASSIGNMENTName: Nguyen Ngoc Ky Thoa ID number: SS140277Class: IB14011

Table of Contents1.COMPANY BACKGROUND22.ANNUAL REVENUE33.FINANCIAL ANALYSIS44.FINANCIAL CONDITIONS65.S.W.O.T ANALYSIS86.MAJOR ISSUES OF IKEA97.CONCLUSION118.REFERENCES111.COMPANY BACKGROUND-Brand: Ikea-Founder: Ingvar Kamprad-Headquarters: AlmhultProductsReady-to-assemble furniture,homewareRevenue€37.05 billion (2018) Operating income€2.25 billion (2018) Net income€1.46 billion (2018) Total assets€52.35 billion (2018) Total equity€40.82 billion (2018) IKEA is a Swedish-foundedmultinationalgroup that designsfurniture, kitchen appliances andhome products, among other useful goods and occasionally home services. It has been theworld's largestfurnitureretailer since at least 2008. It was founded in Sweden in 1943 by 17-year-old carpenterIngvar Kamprad, who was listed byForbesin 2015 as one of the ten richestpeople in the world, worth more than $40 billion.The company is known for itsmodernistdesigns for various types of appliances and furniture,and itsinterior designwork is often associated with an eco-friendly simplicity.In addition, thefirm is known for its attention to cost control, operational details, and continuous product2

development, corporate attributes that allowed IKEA to lower its prices by an average of two tothree percent over the decade to 2010 during a period of global expansion. The IKEA group hasa complex corporate structure, which members of theEuropean Parliamenthave alleged wasdesigned to avoid over €1 billion in tax payments over the 2009–2014 period.It is controlled byseveral foundations based in theNetherlandsandLiechtenstein.As of June2019, there are 423 IKEA stores operating in 52 countries.In fiscal year 2018,€38.8billion (US$44.6 billion) worth of IKEA goods were sold.The IKEA website contains about12,000 products and is the closest representation of the entire IKEA range. There were over 2.1billion visitors to IKEA's websites in the year from September 2015 to August 2016.Thecompany is responsible for approximately 1% of world commercial-product wood consumption,making it one of the largest users of wood in the retail sector.Most of IKEA's stores and factories were previously owned by INGKA, a holding companycontrolled by theStichting INGKA Foundation, one of the 40 wealthiest foundations in theworld.Ikea are working on partnering with local companies to help reduce greenhouse gases fortransport. Ikea has been accused of being one of the most in environmentally friendly companies.2.ANNUAL REVENUEa.Income statement(in millions of €)Y2018Y2017Y2016*Revenue37,05036,29535,691Cost of sales24,96523,73020,260Gross profit12,35512,56515,431Operating cost10,1049,53410,932Operating income2,2513,0314,499Total financial income and expense-138283869Income before minority interests and taxes2,1133,3145,368Tax6348251,158Income before minority interests 1,4792,4894,210Minority interests111610Net income 1,4682,4734,200b.Asset balance sheet(in millions of €)Y2018Y2017Y20163

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