Inditex Report: Financial and Strategic Analysis

This report provides a comprehensive analysis of the financial and strategic performance of Inditex, a Spanish multinational clothing company. It includes a comparison with competitors H&M and GAP, as well as recommendations for future growth.

Running head: INDITEX REPORT
INDITEX REPORT
Name of the Student
Name of the University
Author Note

1INDITEX REPORT
Executive Summary
The business environment is dynamic and hence, all the businesses as present in the business
environment would be required to undertake processes which would help to attain their overall
targets easily. The given report is based on the report of the Inditex group and the overall
analysis of the firm has been done. The report begins with a brief introduction which has then
been followed by the overall financial and strategic analysis of Inditex and benchmarked with its
competitors H and M and GAP. This is then followed by the recommendation of strategies which
the Inditex can adopt. The recommendations have been scrutinized with the help of the SAF
Framework and the Recommendations modelling has been done.

2INDITEX REPORT
Table of Contents
1. Introduction..................................................................................................................................4
1.1 Report objectives...................................................................................................................4
1.2 Case context of analysis.........................................................................................................4
1.3 Overview of Organization.....................................................................................................6
1.4 Current key issues and rationale for choosing the organization............................................7
2. Financial Analysis.......................................................................................................................9
2.1 Profitability............................................................................................................................9
2.2Liquidity...............................................................................................................................12
2.3Leverage...............................................................................................................................13
2.4 Investors...............................................................................................................................15
3. Strategic Analysis......................................................................................................................17
3.1 Macro environmental analysis- PESTLE............................................................................17
3.1.1 Summary...........................................................................................................................27
3.2 Micro environmental analysis-Five Force...........................................................................28
3.3 Identification of Opportunities and Threats.........................................................................34
3.4 Key performance Indicators................................................................................................34
4. Proposed strategy –Ansoff.........................................................................................................37
4.1 Market Penetration...............................................................................................................38
4.2 Market development............................................................................................................39

3INDITEX REPORT
5. Limitation of the Analysis.........................................................................................................40
5.1 Limitations of the Strategic analysis....................................................................................40
...............................................................................................................................................40
5.2 Limitation of Financial analysis..........................................................................................40
6. Conclusions................................................................................................................................41
6.1 Overview..............................................................................................................................41
6.2 SAF Analysis of Strategies..................................................................................................42
7. Recommendations modeling.....................................................................................................45
References......................................................................................................................................49
Appendix........................................................................................................................................52

4INDITEX REPORT
1. Introduction
1.1 Report objectives
Strategic Management can be considered to be a crucial part of the organization and in
this aspect, it becomes essentially crucial for the firm to see to it that, it is successfully able to
meet the needs of the stakeholders (Inditex.com 2019). Hence, the primary focus of the report
can be understood to be to understand the overall business strategy of the Inditex group and in
line of this, compare this strategy to the overall strategy of other business as present in the
similar industry. This analysis will help in comparing the overall performance of the business
and in line of this, recommendations for a strong growth can be provided to the company. Hence,
by following these recommendations, the firm will successfully be able to achieve competitive
advantage in the long run.
1.2 Case context of analysis
The luxury clothing environment has become considerably competitive in nature and
hence, in line of this, it can be rightfully mentioned that, in order to attain success in the long
run, the different firms as present would be required to undertake considerable initiatives so as to
maintain their considerable share in the market. In line of this, when Inditex will be compared
with H and M and GAP, the analysis will be based on the manner in which these firms have been
able to meet the needs of the different firms and in a manner similar to this, it shall also analyses
how the organizations have been successful in the industry. Through the analysis, Inditex will be
able to assess and analyses how they will be able to win over the competition as present and
additionally be able to examine the manner in which, they can attain success in the long run. For

5INDITEX REPORT
this reason, the external environment of the firm will be measured, along with the financial
performance and the other key factors as well.
Inditex
(Zara)
H and M GAP
Date of
incorporatio
n
27 October
2009
16 December 2013 April 15, 1988
Date of
listed
27 October
2009
16 December 2013 April 15, 1988
Business
divisions
Zara for kids
Zara Home
Clothing
Clothing
H and M home
Clothing
Kids
Home
Number of
employees
1,62,450 1,48,000 150,000
Current
revenue
€26145 SEK
210400
$16580
Current
market
positioning
1st 2nd 3rd

6INDITEX REPORT
Logo
1.3 Overview of Organization
The Inditex can be understood to be a Spanish multinational clothing company which has
its headquarters in Galicia. The Inditex can be understood to be one of the biggest fashion groups
as present around the globe and thereby tends to operate more than 7200 stores in 93 markets
around the globe. Although the company`s Flagship store is Zara, but it also owns the chains like
Zara Home. Oysho, Pull and Bear, Uterque and the Stradivarius (Inditex.com 2019). The
company has owned stores as well as dealings in the franchising model.
The company began its operations back in the year 1963 and what began as a small
family business, the business has turned out to be a huge name in the fashion industry around the
globe. The customer is at the center of everything which the firm undertakes and hence, in line of
this, the company aims to serve the customers in the right manner by focusing on the elements of
fashion production and bringing the customers closer than ever so as to be able to provide the
customers with a more affordable price (Inditex.com 2019).

7INDITEX REPORT
1.4 Current key issues and rationale for choosing the organization
The Inditex group has had a considerable unique marketing strategy from the very
beginning of the operations and hence, it does not make use of the traditional media to advertise
its products. The group believes that if it wants to ensure success in the long run then in such a
case, it will be required to adopt suitable customized strategy which would allow the firm to
improve its overall operations (Lasserre 2017). Hence, the first issue lies to determine the overall
marketing strategy which the firm has to adopt on its own. In addition to this, when the company
opens various branches of production of selling in the other countries it rends to be affected by
various labor unions and related activities at large (Inditex.com 2019). Hence, it can be largely
understood that the competition of the business against the various local manufacturers and
designers along with the international brands have increased considerably and in line of this, The
Zara and Inditex has been finding it increasingly difficult to perform well due to these increased
pressure. For this reason, it is crucial that, the business understands the manner in which it will
be required to combat this competition and make a string standing for itself in the long run will
be examined and discussed accordingly in the coming sections.

8INDITEX REPORT
2014 2015 2016 2017 2018
€ -
€ 5,000.00
€ 10,000.00
€ 15,000.00
€ 20,000.00
€ 25,000.00
€ 30,000.00
€ 18,117.00
€ 20,900.00
€ 23,311.00
€ 25,336.00 € 26,145.00
Net Sales (€)
Net Sales
Figure 1
*All the figures given, are in €.
Moreover, from the given graph, it can be observed that, the Net income of Inditex has
been going up but the rate of growth is not appropriate and maybe harmful for the long run of the
firm and hence, with respect to this, it is integral to ensure that, certain strategies are formulated
to overcome this problem of falling income.
Scope
The study will highlight the overall financial performance of the firm in the last five
years, which will then be followed by the Strategic environment analysis, in addition to this, the
recommendations which will then be followed by the analysis and evaluation of the strategy
chosen, the modelling and the summarizing of the data as collected. This will help in
highlighting the manner in which the company has been performing currently and will also serve
as a useful measure, which will help in understanding how the company will be performing in
the long run.

9INDITEX REPORT
2. Financial Analysis
The given section seeks to highlight the overall performance of the organization with
respect to the manner in which the firm has been performing in the markets. In order to
understand how the company has been fairing with respect to the rival companies. It is for this
reason that, the performance of the firm will be compared to that of the performance of the firms
like H&M and the GAP. The Financial section will be divided into four different subsections
namely the Profitability section, Liquidity section, Leverage and the Investors.
2.1 Profitability
The profitability ratios can be understood to be the class of metrics which are generally
used to assess the overall ability of a business to perform well or the engage in considerable sales
so as to ensure that they are able to meet up with the exact costs of the business and are being
able to engage in a profit as well. The profitability ratios which will be examined in the
following section can be understood to be as follows:
Gross profit ratio
2018 2017 2016 2015 2014
Inditex 57% 56% 57% 58% 61%
H and M 53% 54% 55% 57% 59%
GAP 38% 38% 36% 36% 38%

10INDITEX REPORT
2018 2017 2016 2015 2014
0%
10%
20%
30%
40%
50%
60%
70%
Gross Profit Ratio (%)
Axis Title
Figure 2: The Gross profit comparison of the companies
From the given analysis, it can be rightfully observed that, the three companies can be
understood to be in a fierce competition with one another. However, the GAP as an organization
has not been performing considerably well and with respect to this, the Gross Profit margin of
the firm can be understood to be considerably low in this case (Yahoo.com 2019). In addition to
this, the gross profit of H& M can be understood to be in alignment with the Inditex but Inditex
can be understood to be the firm which has been performing the best out of the given three
companies with a consistent Gross margin except for the year 2017. In all the years except for
that year, the Gross Margin of the three companies have been considerably high with the closing
margin of 0.56 (57%) for Inditex in 2018.
Net profit ratio
2018 2017 2016 2015 2014
Inditex 13% 13% 14% 14% 15%
H and M 6% 8% 10% 12% 13%

11INDITEX REPORT
GAP 6% 5% 4% 6% 8%
2018 2017 2016 2015 2014
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Net Profit Ratio (%)
Axis Title
Figure 3: The net profit comparison of the three companies
The given graphs provide the information about the Net Margin of the three companies
over the time. It can be rightfully observed that, the organization has been experiencing
considerable high Net margin as compared to the different competitors as present. In line of this,
it can be easily reflected that, initially back in 2014, 2015 and related years, the H & M had been
experiencing considerable losses and hence, the Net Margin can be understood to be very low
(Hm.com 2019). In line with this, initially the firm experienced a negative Net margin and this
was followed by a gradual increase in the Net Margin of the firm. However, the firm was not
able to reach out to the overall popularity of the other firms in the industry. In line with this, even
GAP has been experiencing considerably low net profit margin as well as compared to the other
organizations in the industry. In addition to this, as compared to all the three companies who are
present, Inditex can be understood to be the most popular company with considerably high and

12INDITEX REPORT
growing Net profit margin (Yahoo.com 2019). The company closed at a 13% Net Margin in the
year 2018.
2.2Liquidity
The liquidity ratio tends to examine whether the firm has the ability to perform well and pay of
its overall expenses in the long run.
Current Ratio
2014 2015 2016 2017 2018
Inditex 1.8955132
1 1.953896161 1.8092 1.8160
2
1.9615
3
H and
M
2.1051568
7 1.985263984 1.5979
5
1.3689
1
1.3925
2
GAP 1.9324 1.572 1.7590
7
1.8561
6 1.9554
2014 2015 2016 2017 2018
0
0.5
1
1.5
2
2.5
Liquidity Ratio
Inditex H and M GAP
Figure 4: The current ratio comparison of the three companies
From the given analysis, it could be rightfully understood that, the current ratio can be
understood to be a measure of the overall ability of the firm to manage its liabilities with the help
of the different assets and other resources as present at the company`s disposal. The H and M in
the year 2014, started off with a considerable high Current Ratio but over the years the Current
Ratio of the firm has been depleting considerably and has not been in league with the different

13INDITEX REPORT
firms as present in the industry. The GAP and Inditex have been in continuous competition with
one another and in relation to this, these firms have been able to maintain a stable ratio
(Gapinc.com 2019). It can be reflected from the graph that, in the year 2014 and 2017, the
Current Ratio of GAP has been considerably better and other years, Inditex has been able to
maintain a strong positioning. The company ended 2018 with a current ratio of 1.96 which
reflects that, the company and its related operations are efficient in nature and it has the ability to
pay off its short term liabilities with the current assets.
2.3Leverage
The leverage can be understood to be a measure of the manner in which the business has
the capacity to make use of the debt rather than equity in the purchase of assets and other
expenses of the business.
Debt to Equity
Ratio
2014 2015 2016 2017 2018
Inditex 0.1107559
6 0.109459503 0.1079
6 0.1113 0.1135
9
H and
M
0.0725036
9 0.083153887 0.0885
9
0.0967
3
0.0945
1
GAP 0.4465303
4 0.514734774 0.4297
5
0.3972
6
0.3515
3

14INDITEX REPORT
2014 2015 2016 2017 2018
0
0.1
0.2
0.3
0.4
0.5
0.6
Debt to Equity
Inditex H and M GAP
Figure 5: The Total debts to Equity comparison of the three companies
The Debt to Equity Ratio can be stated to be the indicator of the overall proportion of the
assets of the company which are being wholly financed through the debt. The ratio talks about
the ability of the firm to repay its obligations and a high debt to equity ratio means that the
organization has the capability to engage in aggressive financing with respect to the growth with
the debt. In this aspect, from the graph it can be rightfully observed that, GAP has experienced a
considerable high Debt to Equity rate (Yahoo.com 2019). The main competition in this sphere
lies between H & M and the Inditex Company where there just lies a considerable small
difference between their measures. However, in case the comparison is made between these two
companies then in such a scenario, the Inditex as a firm has been experiencing considerable
growth and the Debt to Equity ratio of the organization can be understood to be adequate.

15INDITEX REPORT
2.4 Investors
Figure 6: A snapshot of the current performance of the firm
(Source: Yahoo.com 2019).
It can be witnessed from the given analysis that the company has been performing
considerably well and the overall key aspects of the performance of Inditex has been provided.
The shareholders ratio can be understood to be an integral ratio which outlines the
manner in which the shareholders would be essentially required to receive a share on their
investment. The Earning per share can be generally understood to be the most crucial
determinant of the overall Investment returns which a shareholder will receive from the
investment. The Earning per share is a determinant of the share price and the overall value of the
firm. A majority of the different investors undertake their overall decisions based on the
Earnings per share of the firm.

16INDITEX REPORT
2014 2015 2016 2017 2018
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
EPS
Axis Title
Figure 7: The EPS
The given graph provides the information on the Earning per share of the different firms
as present. From the graph it can be understood that, over the years the Earning per share of H
and M has remained the same throughout, whereas, the Earning per share, of the GAP has
decreased over the time. As compared to this, although the Earning per share of Inditex can be
understood to be low, but has been growing throughout.
2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
180
PE Ratio
Axis Title

17INDITEX REPORT
Figure 8: The PE Ratio
The given graph provides adequate information on the Price earnings ratio of the three
companies as present. It can be seen that out of these companies, the Inditex can be taken to be
one of the firms whose Price earnings ratio has been the highest amongst the three firms and
increasing considerably.
3. Strategic Analysis
The strategic analysis can be understood to be a comprehensive analysis, which is
required to be undertaken by any business organization in order to ensure whether they are being
able to apply the right kind of strategy for the overall expansion of the organization and to meet
the competition which is existent in the industrial environment. Hence, in the given section, an
analysis of the external environment using the Macro environmental analysis, along with the
Micro environmental analysis which is the Porters Five forces will be conducted accordingly.
3.1 Macro environmental analysis- PESTLE
The PESTLE analysis a strategic management tool and technique through which any
business is able to examine the various external factors which lie outside the domain of business
and are able to have a strong impact on the overall operations of the firm (Lasserre 2017). The
reason why the analysis of these factors is crucial is because, they have the overall capacity to
become uncontrollable and then harm the business in a negative manner all along. The different
factors which are required to be analyzed critically can be understood to be Political, Economic,
Social factors, Technological factors, Legal and the Environmental factors. (Refer to Table 1 in
the Appendix)
Political The most crucial factor which any business

18INDITEX REPORT
will be required to analyses can be
understood to be the political factor and
due to the different financial regulations
and related legal requirements, a
government may impose serious
restrictions on the operations of the
organization. The Inditex Company tends
to face considerable challenges in arenas
where the Foreign Direct Investment is
considered and in line of this, the
government often tends to restrict the
overall operations of the company. Hence,
Inditex would be required to enter the
different businesses with the help of
various partnerships and joint ventures
with the local brands (Frynasand
Mellahi2015).
Economic The economic factors have a key role to play
in the different operations of the business
(Meyer, Neck and Meeks 2017). In addition
to this, the overall condition of an economy
tends to directly impact the overall operations
of the business and it is in reference to this

19INDITEX REPORT
that the company likes Inditex often make use
of the ‘Affordable Pricing’ facility.Hence, by
doing this, even when the industry is faced by
downturns then in such a case even if they are
not able to pay the bills they are still able to
afford the offerings of the Inditex as a group.
Hence it is with respect to this, Inditex is
often not affected by the low economic
activity (Morden 2016).
Social The social factors also tend to have a crucial
role to play in the successful operations of a
business. The attitude of the different
individuals, the social trends and the overall
mentality of the customers also tend to affect
the overall business operations (Frynasand
Mellahi2015).
Technological The technology can be considered to be a factor
which is constantly going under various
advancements and has been changing
considerably at an advance speed(Ethiraj,
Gambardella and Helfat 2016). Hence, in order to
meet up with the different needs of the business,
the Inditex tends to make use of the technology
especially in the domain of the supply chain

20INDITEX REPORT
management which helps them to come up with
techniques like the Data analytics, Lean
manufacturing and the Just in Time technology.
The use of these technologies assist in the
connection of the supply chain logistics with the
manufacturing in an accurate manner (Wheelen et
al. 2017). The latest technology also allows the
Inditex to ensure that they are successfully being
able to keep a complete track of the inventory,
take the customer orders in an easy manner and in
addition to this, make the customers achieve the
right product.
Environmental The Inditex has been undertaking a
considerable efforts to ensure that, the stores
become hundred percent efficient and this
then contributes towards making the
environment safe and the store to contribute
towards saving energy and engage in
recycling. In addition to this, the firm also
works towards ensuring that they are
successfully able to develop a fashion wear
based on sustainable wear.
Legal All the businesses as present in the business

21INDITEX REPORT
environment would be required to see to it
that, they are successfully able to follow all
the ethics and sustainability laws in the
environment so as to ensure that, they do not
break and legislative requirements. In line of
this, Inditex tends to follow ethics as well as
sustainability in all the environments and they
also tend to follow compliance in the internal
systems (Ethiraj, Gambardella and Helfat
2016). The organization not only tends to
ensure that all the local laws are followed and
along with this all international laws are also
abided by.

22INDITEX REPORT
Figure 9: The change in the overall sales growth of the company are impacted by the
external political events
(Source: Inditex.com 2019).
PEST
EL
Organizational
Capability
PESTEL Sub-Factors Status Indit
ex
GA
P
H and
M
Justifications
Political Relation with
other countries
2 1 -1 -1 The relation with other countries can be understood to
be sound
Regional unions -1 1 2 1 The regional unions are an important part of the
organization
Democratization
Process
2 2 2 2 the democratization procedure can be understood to be
relevant
Political
Developments
1 2 -1 2 The political development is an integral part of the
organization
Political Stability 2 1 2 2 The political stability is crucial to the overall growth
of the organization
Average 1.2 1.4 0.
8
1.2
Comment: The Political environment is favorable
Figure 10: The international competition as faced by the Inditex
(Source: Inditex.com 2019).
PES
TEL
Organizational
Capability
PESTEL Sub-
Facto
rs
Statu
s
Indi
tex
G
A
P
H
and
M
Justifications
Economic Nation
al
Incom
-1 2 2 2 The national income acts as an indicator of the overall positioning of
the country

23INDITEX REPORT
e
Invest
ment
Incent
ives
2 1 2 2 The investment incentives can be understood to be very high
Monet
ary
Policy
-1 1 2 2 The monetary policy of the firm can be understood to be sound in
nature
Fiscal
Policy
1 2 2 2 The fiscal policy can be understood to be an integral part of the
organization
Foreig
n
Invest
ment
2 -1 -1 2 The foreign investment can be considered to have an integral impact
on the overall performance of the business
Energ
y Cost
2 2 -1 2 The energy cost can be considered to be considerably high
Labor
Cost
-2 1 1 2 The labor cost impacts the overall performance and costs incurred
by the firm
Avera
ge 0.42 1.1 1 2
The Economic environment is favorable
Figure 11: Inditex`s brand Zara has come up with its online domain
(Source: Inditex.com 2019).

24INDITEX REPORT
Figure 12: PESTLE
(Source: Morschett, Schramm-Klein and Zentes 2015).
PES
TEL
Organizational
Capability
PESTEL Sub-
Facto
rs
Statu
s
Indi
tex
G
A
P
H
and
M
Justifications
Socio-
cultural
Life
Style
-1 -1 1 2 The lifestyle of the target audience can be considered to be a crucial
part of the firms overall policy
Level
of
Educa
tion
1 1 1 1 The level of education has a crucial role to play in determining the
overall success
Aware
ness
1 2 1 1 The awareness is taken to be a considerably crucial part of the firm
Respe
ct for
Rules
of
Law
2 2 1 1 There needs to exist a considerable respect for the rules of law
Worki
ng
Cultur
e/Attit
ude
1 1 1 1 The working culture and the attitude can be understood to be
important to be considered.
Aver
age 0.8 1 1 1.2
The Socio-economic environment is not so favorable

25INDITEX REPORT
Figure 13: The technological advancements have led to a change in the social media
activity of the firm
(Source: Inditex.com 2019).
P
E
S
T
E
L
Organizational
Capability
PESTEL Sub-
Factor
s
S
t
a
t
u
s
Indi
tex
G
A
P
H
and
M
Justifications
Technological Techn
ologica
l
infrastr
ucture
1 1 -2 1 The technological infrastructure needs to be built in a way such that,
it supports the firm in its endeavours.G43
Patents
&
Copy
Rights
-
1
1 1 1 The patents as well as the copy rights tend to form an integral part of
the firm
R&D
Suppor
t
1 1 1 1 The Research and Development needs to be an integral part of the
firms creative policy
Techn
ology
Adopti
on
-
1
1 1 1 The technology adoption can be understood to be important for the
firms
Rate of
Techn
ologica
1 -1 1 1 The Rate of Technological Change can be understood to be managed
well

26INDITEX REPORT
l
Chang
e
Averag
e 0
.
2 0.6
0.
4 1
The technological environment is not favorable
PES
TEL
Organizational
Capability
PESTEL Su
b-
Fa
cto
rs
Statu
s
Indi
tex
G
A
P
H
and
M
Justifications
Environmental Tr
aff
ic
Sa
fet
y
2 -1 1 -1 The traffic safety can be taken to be crucial
Pu
bli
c
He
alt
h
-1 -1 1 -1 The Public health is important to be considered
Ur
ba
niz
ati
on
-1 -1 -2 -1 The urbanization is crucial for the firm and its target audience
Di
sas
ter
M
an
ag
em
ent
1 -1 -1 -1 The disaster management is undertaken to be an integral part of the
firm
Gr
ee
n
Iss
ue
s
1 2 -1 -1 The Green issues are crucial for the firm to take up
Av
era
ge
0.4 -
0.4
-
0.
4
-1
The given element is not favorable.

27INDITEX REPORT
PES
TEL
Organizational
Capability
PESTEL Su
b-
Fa
cto
rs
Statu
s
Indi
tex
G
A
P
H
and
M
Justifications
Legal Co
mp
etit
ion
La
ws
-1 1 -1 -2 The competition laws are integral to be considered
Ju
dic
ial
Sy
ste
m
1 2 -1 -2 The laws are considered to be essential part of the organization
Co
ns
um
er
Ri
ght
s
2 2 -1 -2 The consumer rights are important for the customer segment
La
w
an
d
Or
der
-1 2 -1 1 The law and order are considered to be integral
Int
ern
ati
on
al
Tr
eat
ies
2 2 -1 1 The International Treaties are better for the overall operations of the
firm as it allows them to expand and perform well
Av
era
ge
0.6 1.8 -1 -0.8
The Legal environment is favorable
3.1.1 Summary
Hence, the overall PESTLE indicates a favorable environment for Inditex with scope of
considerable growth and advantages.

28INDITEX REPORT
Political
Economic
Socio-Cultural
Technological
Legal
Environmental
-2
0
2
Industry
Inditex
GAP
H&M
Graph 1
3.2 Micro environmental analysis-Five Force
Having analyzed the external environment of the business, it can be largely observed that
the overall business environment is very dynamic in nature and hence, in the given section, the
industrial environment of the Inditex shall be examined critically. (Refer to Table 2 in the
Appendix)
The Michael Porters Five forces analysis can be understood to be a comprehensive
internal environment analysis tool which can be used by the different organizations in order to
understand the different forces which exist within the scope of a business and its immediate
environment. The different industrial forces which are present in the business environment can
be understood to be the Threat of new entrants, the threat of substitutes, the power of the buyers,
the power of the suppliers and the competitive rivalry which exists within the realm of the
business. The Industrial forces have been analyzed in the following manner:

29INDITEX REPORT
Threat of new entrants
The force of the different new players which exist within the apparel industry can be
understood to be considerably high and in relation to this, it becomes crucial to
understand that they are attracted towards the industry due to its uniqueness and
profitability (Hm.com 2019). However, there exists considerable retaliation in the
industry from the side of the big players in the apparel industry such as the initiation of
the price wars and related procedures which makes the cost of setting up the business
high. These high costs of setting up the business along with the advertisement tends to
make it difficult for the new businesses to make their marketing in the long run
(Gapinc.com 2019). The Inditex group has been taking advantage of the economics of
scale, established brand names and other such facilities to make it difficult for the new
businesses to enter.
Threat of substitute:
The threat of the substitutes can be understood to be the different brands and related
products being sold by the competitor firms. The clothing in addition to the basic needs
also fulfills the symbol of the social economic class and establish the identity of an
individual. The buyers are likely to buy products from the brands like the H & M as well
as GAP. In addition to the competition of the businesses, the duplicate fashion can also
be understood to be another substitute (Gapinc.com 2019). The Indian, Chinese as well
as the Indonesian markets tend to make money out of Duplicate fashion in order to
ensure that, they are able to earn good revenue. As Inditex`s operations are able to
make goof quality products which are also affordable in nature, these substitutes tend
to pose a threat to the retail stores like Inditex (Engert, Rauter and Baumgartner 2016).
Buyer Power
The buyer power can be understood to be threat of the different customers. The
different customers of the firm tend to belong to the middle class to the upper class who
considerably possess a high buying power as they tend to have a huge amount of
income for their expenses and clothing needs. There are various other companies who
provide the same products as the Inditex Company, and hence, the customer loyalty can
be easily purchased by them (Hm.com 2019). It is for this reason that the different firms
need to now focus on the innovation. However, in order to combat this, Zara tends to
make use of the affordable rates so that it appears stronger amongst the competitors.
Supplier Power
As the global trade has become considerably liberalized, the power of the suppliers has
become considerably high due to the low cost of labor and other facilities in the
developing counties. The supplier power becomes considerably high in the apparel
industry when the different members in the industry tend to experience higher costs by
switching to new quality. However, Inditex tends to ensure that, various licenses are
offered to the suppliers to ensure susceptible quality and standard of the products as
this also goes a long way in ensuring that their power is weakened and they do not
engage in the manipulation of the designs.
Rivalry
The competitive rivalry as present in the industry can be understood to be very high and
the Inditex tends to face the rivals such as GAP and the H and M in its competition.
However, due to its unique business style and loyal customer set, Inditex often tends to
adrift from competition (Engert, Rauter and Baumgartner 2016). The switching costs to
other brands are high and the price setting is generally unaccepted. As the buyers
generally tend to buy in lower quantities, their power is lowered and hence, to combat
this Inditex tends to offer quality which closes any external options for the buyers
(Gapinc.com 2019).

30INDITEX REPORT
Figure 14: The Porters Five forces
(Source: Morschett, Schramm-Klein and Zentes 2015).
Figure 15: The overall advantage of Zara
(Source: Inditex.com 2019).

31INDITEX REPORT
Figure 16: The share performance of the firm in the past five years
(Source: Inditex.com 2019).
3.2.1 Summary
Porters 5 Forces Inditex GAP H and
M
Justification
Rivalry among
competing
firms
2 1 1 The rivalry among the firms is strong but Inditex
can be considered to be performing considerably
well
Bargaining
power of
buyers
1 2 1 The bargaining power the buyers is strong but
Inditex can be considered to be performing
considerably well
Bargaining
power of
suppliers
2 2 2 The bargaining power the suppliers is strong but
Inditex can be considered to be performing
considerably well
Threat of New
Entrants
2 1 1 The threat of the Entrants is strong but Inditex
can be considered to be performing considerably
well
Threat of
Substitution
1 2 -1 The threat the Substitution is strong but Inditex
can be considered to be performing considerably
well
Average 1.6 1.6 0.8

32INDITEX REPORT
Rivalry among competing firms
Bargaining power of buyers
Bargaining power of suppliersThreat of New Entrants
Threat of Subsitution
-2
0
2
Inditex
GAP
H and M
Graph 2
Hence, the Porters also indicate a comfortable environment for Inditex.

33INDITEX REPORT
Figure 17: The competitive advantage Inditex aims to attain
(Source: Inditex.com 2019).

34INDITEX REPORT
3.3 Identification of Opportunities and Threats
Figure 18
3.4 Key performance Indicators
The Key performance Indicators can be understood to be a strategic management tool
which goes a long way in assisting any business to understanding how the firm has been
performing and what benchmarking measures need to be set for it in order to ensure that, the
company needs to perform well in the long run. Hence, Inditex has also developed basic KPIs for
itself which has then enabled the firm to measure its overall performance, gain considerable
feedback and in addition to this, unfold relevant information about the performance of the firm.
 Net Sales: The net sales can be understood to be a useful Key performance indicator
which will help in understanding the amount of sales which the firm incurs at a particular
time. The net sales measures the overall earnings of the firm over a certain period of time
and in line with this, it becomes considerably important for the organization to ensure
that, it meets the needs of the different operations and in line of this be able to earn
considerable net sales (Inditex.com 2019). From the given chart, it can be understood
that, the Net sales of Inditex is the highest amongst all the three companies and has been
growing as well.

35INDITEX REPORT
2018 2017 2016 2015 2014
0
5000
10000
15000
20000
25000
30000
Net Sales
Axis Title
Figure 19
 Profit Margin: Another key performance indicator which can be looked out for the firm
can be understood to be the Profit Margin. The profit margin is the net income of the firm
at a particular point of time and hence, measuring the overall performance of the firm in
terms of the profit can be understood to be a good indicator. From the given fugure, it can
be understood that, the net profits of the industry have been going down and hence, strict
measures to revive the same have to be adopted.

36INDITEX REPORT
2018 2017 2016 2015 2014
0
1000
2000
3000
4000
5000
6000
7000
Net profit
Axis Title
Figure 20
Figure 21: The Key performance Indicators of the firm
(Source: Inditex.com 2019).
 Customers served: The number of customers served by the organization also tends to act
as a considerable measure of performance and it needs to be the long term aim of the firm
to increase the number of customers which it serves in a specified period of time.

37INDITEX REPORT
 Cost measures: It needs to be the overall aim of the organization to limit the overall costs
of the firm and in line of this; even Inditex would be required to ensure that it does not
engage in activities which shall increase the cost of the firm in the long run.
 Training and awareness: The organization also carries out various training as well as
awareness programs which assist the firm in ensuring long term overall success.
 Participation: The participation in various welfare activities for all the participants can
also be understood to be measured effectively (Inditex.com 2019).
 Improvement in Management system: Lastly, the management system has to be improved
as well as it would contribute towards bring about long term success for Inditex.
4. Proposed strategy –Ansoff
Hence, by analyzing the overall external environment of the business and also the internal
industrial forces, it could be observed that, although Inditex has been undertaking considerable
strategies to ensure long term success and a suitable competitive positioning in the market,
however, it still needs to undertake considerable steps which will ensure that it is able to expand
considerably (Ansoff et al. 2018).
The Ansoff Matrix can be understood to be a strategic management tool which tends to
provide a framework which will be useful for the senior management, the executives and the
different marketers in order to consider the overall growth of the company (Hanson et al. 2016).
In consideration of this, the Ansoff Matrix recommends various options to a corporation out of
which a single one can be chosen to compete against the global competitors. In line of this, the
two crucial Ansoff matrix strategies which have been chosen for the business can be understood
to be the Market development and the Market Penetration strategy.

38INDITEX REPORT
4.1 Market Penetration
The market penetration as a strategy can be understood to be a considerably strong
strategy which is generally made use of by the firms to increase the market share of an existing
product in the market (Hanson et al. 2016). This is usually undertaken by promoting a new
product in the market or by using strategies such as lower prices, advertising, offering discounts
and through promoting the bundling. In line of this, a measure of the extent of the product`s sales
volume relative to the total sales volume of all the competing products is generally expressed in
the form of a percentage and thereby the market penetration strategy can be essentially used by
the business in order to generate a new strategy for the new business which can take to be
effective so that the firm can engage in positive sales in the long run of the business (Bryce
2017). In the case of Inditex, if the firm would be required to engage in the Market Penetration
strategy, then in such a case, the firm would be required to increase the goods supply in the
current markets itself and in line of this, they could make subtle modifications to the offerings
which they are making. A new product logo or a new service facility is all it would take Inditex
to make its standing in the organization considerably strong (Hill 2017).

39INDITEX REPORT
Figure 22: The Ansoff Matrix
(Source: Morschett, Schramm-Kleinand Zentes2015)
4.2 Market development
The market development strategy can be understood to be a strategic move which a
business undertakes in order to expand into the newer markets as present. The newer markets are
generally targeted for the business because they have a scope of attracting the consumers or
maybe because, the corporation in concern currently does not have any unit in the country.
Generally, the new markets are either new countries or related markets (Hitt, and Duane Ireland

40INDITEX REPORT
2017). The product offerings which are made by the firm can be understood to be the same
products which the firm generally sells in the same markets. However, it is up to the company to
either engage in the service development or by undertaking the manufacturing of the
minimalistic. Therefore, if Inditex has to make use of this strategy, then in such a case, it would
be require to expand its operations into newer territories and target the new customer segments
by plunging into new economies which are present and tend to offer better growth to the
different companies and in line of this, the firm will be able to experience lowered costs but
higher growth opportunities in the long run (Trigeorgisand Reuer2017).
5. Limitation of the Analysis
5.1 Limitations of the Strategic analysis
5.2 Limitation of Financial analysis
The Financial analysis done on any business operations generally tends to analyze the
financial positioning of the company based on historical data. However, one shortcoming of this
The PESTLE analysis can be understood to be a Strategic Management tool which can be easily
adopted by the different businesses as present in order to understand the external factors which
are available in the domain of the trade and commerce. However, in order to understand the
overall external environment of Inditex, the use of the PESTLE analysis cannot be considered to be
adequate in nature due to the fact that, the operations of Inditex are not only present in one
country but in multiple countries (Hitt, Irelandand Hoskisson2016). Hence, in regard to this, it can
be considered to be very important for a business to ensure that, in case it is required to expand its
operations, the knowledge of just one market would not be sufficient and instead the firm must be
ready to be faced by multiple forces from various units spread around the country.
PESTEL
The Porters five forces can be understood to be a useful model which is generally made use of by
various businesses in order to expand its operations and to gain an understanding of the different
internal forces which lie within the realm of the firm. It seeks to assist the business in gaining a
competitive advantage. However, the Porters Five forces can be understood to have one
considerably drawback which can be understood to come in the form of the expansion of the
online business operations (Hm.com 2019). This means that, as the e-commerce operations have
advanced considerably, it has become very difficult for the different businesses to ensure that, they
are ready to combat with the different forces as present in the business environment.
PORTERS

41INDITEX REPORT
factor is that it does not take into consideration the inflation factor into consideration which
generally has a strong impact on the overall operations of the business as present. Hence, in line
of this, it has to be understood that, the historical data does not tend to justify the economic
relevance or how the price will change as per the demands. In many cases, the analysis which is
based on the demand may also vary in nature. Hence, it is with respect to this that, although
reviewing the financial ratio of the business is important, it does not signify the sustainability of
the business (Steiss 2019). Therefore, it has to be understood that simply relying on the
financials analysis as a basis for decision making cannot be considered to be enough.
6. Conclusions
6.1 Overview
Hence, from the analysis as undertaken on the Inditex organization , it can be rightfully
understood that the organization has been performing considerably well and that, it has been
undertaking various efforts which then assist the firm in ensuring success in the long run. The
performance of the Inditex as compared to its rival companies named H&M and GAP can be
understood to be very well (Hm.com 2019). However, the business environment can be
understood to be quite dynamic in nature and with respect to this, it is crucial for the business to
understand that, it will be required to adopt new and better strategies which will then enable the
firm to perform considerably well and to see to it that, the firm is being able to maintain the
sustained advantage as present. Hence, as discussed in the previous section, the Market
penetration and the Market development can be understood to be two considerable strategies
which a business can adopt for itself and in line of this, it can be considered crucial to evaluate
these strategies using the SAF Framework (Noe et al. 2017).

42INDITEX REPORT
6.2 SAF Analysis of Strategies
Ansoff Matrix
Strategy
Suitability Acceptability Feasibility Benefits
Market
development
strategy
1) Expand
the
production
facilities to
the
developing
countries.
The organization
currently has
various facilities
which may
permit it to
ensure an
expansion of the
production
facilities in the
particular
locations as
mentioned.
As the expansion
of the production
facilities shall be
profitable for the
business in such a
case, it would be
accepted by the
investors.
As the firm
seeks to expand
its operations to
the different
countries as
present, it would
not be
considerably
difficult for the
firm to expand
the operations in
other countries.
Will bring
about
economies of
scale and
increase in
the overall
profitability
of the
business.
2) Expanding
the
number of
outlets in
the South
Moreover,
although ZARA
and related
Inditex brands
tend to have
As the number of
stores is
considerably low,
their expansion to
the other
Additionally, the
number of stores
in the South
Asian countries
is less and it
Will bring
about
increased
revenue for
the business.

43INDITEX REPORT
east Asian
countries
various stores in
the South east
Asian countries,
however, it is
important for the
firm to consider
the expansion as
it has a good
brand name.
countries can be
understood to be
accepted.
would be
feasible for the
firm to open
more outlets.
Pass Yes Yes Yes
Ansoff Matrix
Strategy
Suitability Acceptability Feasibility Benefits
Market
penetration
strategy
1) Engaging in
additional
promotion
to ensure
success with
the market.
The
organization has
a well-defined
budget for the
marketing
activities of the
organization and
The investors
may not be
willing to make
the considerable
investments.
The Inditex as
an organization
has a unique
marketing
technique and
hence, it might
not be suitable
The firm will
be able to
become
successful in
the long run.

44INDITEX REPORT
with respect to
this; it can be
considered not
suitable to
engage in more
activities (Noe
et al. 2017).
for the firm to
engage in excess
marketing.
2) Engaging in
considerabl
e discounts
to engage in
the high
revenue
phase
The firm already
keeps a small
margin, and then
offering
discounts cannot
be considered to
be adequate.
Lowering the
price of the
products may not
considered to be
adequate
Lowering the
prices cannot be
considered to be
feasible
because, it does
not permit
growth
(Wheelen et al.
2017).
Will bring
about
increased
revenue for
the business.
Pass No No No

45INDITEX REPORT
Figure 23: The SAF Framework
(Source: Moutinhoand Vargas-Sanchez2018).
Therefore, from the given analysis, it can be understood that, the Market development
strategy is a suitable strategy for the firm which may be adopted for the long run welfare of the
firm.
7. Recommendations modeling
7.1 Scenario Forecasting- Best case scenarios
PAST TREND AREA
PAST 5 -YEAR
FINANCIAL
INDICATORS
2014 %
Chan
ge
2015 %
Chan
ge
2016 %
Chan
ge
2017 %
Chan
ge
2018 Av. %
Change

46INDITEX REPORT
Gross Profit Ratio 61% -5.22 58% -1.52 57% -1.19 56% 0.68 57% -1.45
Net profit Ratio 15% -9.98 14% -1.53 14% -1.87 13% -0.88 13% -2.85
Current Ratio 1.90 3.08 1.95 -7.41 1.81 0.38 1.82 8.01 1.96 0.81
Debt to Equity
Ratio 0.11 -1.17 0.11 -1.37 0.11 3.10 0.11 2.06 0.11 0.52
Net sales €
18,117.
00 15.36
€
20,900.
44 11.53
€
23,310.
53 8.69
€
25,336.
00 3.19
€
26,145.
00 7.76
7.2 Scenario Forecasting- Worse, Moderate and Best case
PAST TREND AREA SCENARIO FORECASTING
PAST 5 -
YEAR
Best Case - 5% Over
Past Trend
Moderate Case -
Maintain Trend
Worst Case - 5%
Below Trend
#
FINA
NCIA
L
INDIC
ATOR
S
20
14
%
C
ha
ng
e
20
15
%
C
ha
ng
e
20
16
%
C
ha
ng
e
20
17
%
C
ha
ng
e
20
18
Av.
%
Ch
an
ge
5
%
+
Tr
en
d
20
19
20
20
20
21
Ke
ep
Tr
en
d 20
19
20
20
20
21
5%
Bel
ow
Tre
nd
20
19
20
20
20
21
1
Gross
Profit
Ratio
61
%
-
5.
22
58
%
-
1.
52
57
%
-
1.
19
56
%
0.
68
57
%
-
1.4
5
3.5
5
59
%
61
%
63
%
-
1.
45
56
%
55
%
54
%
-
6.45
53
%
50
%
46
%
2
Net
profit
Ratio
15
%
-
9.
98
14
%
-
1.
53
14
%
-
1.
87
13
%
-
0.
88
13
%
-
2.8
5
2.1
5
13
%
14
%
14
%
-
2.
85
13
%
12
%
12
%
-
7.85
12
%
11
%
10
%
3
Curren
t Ratio
1.9
0
3.
08
1.9
5
-
7.
41
1.8
1
0.
38
1.8
2
8.
01
1.9
6
0.8
1
5.8
1
2.0
8
2.2
0
2.3
2
0.
81
1.9
8
1.9
9
2.0
1
-
4.19
1.8
8
1.8
0
1.7
3
4
Debt to
Equity
Ratio
0.1
1
-
1.
17
0.1
1
-
1.
37
0.1
1
3.
10
0.1
1
2.
06
0.1
1
0.5
2
5.5
2
0.1
2
0.1
3
0.1
3
0.
52
0.1
1
0.1
1
0.1
2
-
4.48
0.1
1
0.1
0
0.1
0
5
Net
sales
€
18,
11
7.0
0
15
.3
6
€
20,
90
0.4
4
11
.5
3
€
23,
31
0.5
3
8.
69
€
25,
33
6.0
0
3.
19
€
26,
14
5.0
0
7.7
6
12.
76
€
29,
47
9.9
1
€
33,
24
0.2
0
€
37,
48
0.1
2
7.
76
€
28,
17
2.6
6
€
30,
35
7.5
7
€
32,
71
1.9
3 2.76
€
26,
86
5.4
1
€
27,
60
5.6
6
€
28,
36
6.3
2
Hence, from the given analysis, it can be rightfully understood that if the Market
development strategy is applied then in such a case, the above results can be reflected which
shall then bring about a considerable shift in the overall performance of the company.

47INDITEX REPORT
Gross Margin
2014 2015 2016 2017 2018 2019 2020 2021
0%
10%
20%
30%
40%
50%
60%
70%
Gross Margin
Best Moderate Worse
Figure 24
Net Margin
2014 2015 2016 2017 2018 2019 2020 2021
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Net Margin
Best Moderate Worse
Figure 25

48INDITEX REPORT
Current Ratio
2014 2015 2016 2017 2018 2019 2020 2021
0.00
0.50
1.00
1.50
2.00
2.50
Current Ratio
Best Moderate Worse
Figure 26
Total debt to Equities
2014 2015 2016 2017 2018 2019 2020 2021
0.00
0.02
0.04
0.06
0.08
0.10
0.12
0.14
0.16
Debt to Equity
Best Moderate Worse
Figure 27

49INDITEX REPORT
Net Sales
2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1
€ -
€ 5,000.00
€ 10,000.00
€ 15,000.00
€ 20,000.00
€ 25,000.00
€ 30,000.00
€ 35,000.00
€ 40,000.00
Net Sales
Best Moderate Worse
Figure 28

50INDITEX REPORT
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52INDITEX REPORT
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53INDITEX REPORT
Appendix
Table 1: Pestle
PES
TEL
Organizational
Capability
PESTE
L Sub-Factors
Stat
us
Ind
itex
G
A
P
H
and
M Justifications
Politica
l
Relation with
other countries 2 1 -1 -1 The relation with other countries can be understood to be sound
Regional unions -1 1 2 1 The regional unions are an important part of the organization
Democratization
Process 2 2 2 2 the democratization procedure can be understood to be relevant
Political
Developments 1 2 -1 2 The political development is an integral part of the organization
Political
Stability 2 1 2 2
The political stability is crucial to the overall growth of the
organization
Econo
mic
National Income -1 2 2 2
The national income acts as an indicator of the overall
positioning of the country
Investment
Incentives 2 1 2 2 The investment incentives can be understood to be very high
Monetary Policy -1 1 2 2
The monetary policy of the firm can be understood to be sound in
nature
Fiscal Policy 1 2 2 2
The fiscal policy can be understood to be an integral part of the
organization
Foreign
Investment 2 -1 -1 2
The foreign investment can be considered to have an integral
impact on the overall performance of the business
Energy Cost 2 2 -1 2 The energy cost can be considered to be considerably high
Labor Cost -2 1 1 2
The labor cost impacts the overall performance and costs
incurred by the firm
Socio-
cultural
Life Style -1 -1 1 2
The lifestyle of the target audience can be considered to be a
crucial part of the firms overall policy
Level of
Education 1 1 1 1
The level of education has a crucial role to play in determining
the overall success
Awareness 1 2 1 1
The awareness is taken to be a considerably crucial part of the
firm
Respect for
Rules of Law 2 2 1 1 There needs to exist a considerable respect for the rules of law
Working
Culture/Attitude 1 1 1 1
The working culture and the attitude can be understood to be
important to be considered.
Technol
ogical
Technological
infrastructure 1 1 -2 1
The technological infrastructure needs to be built in a way such
that, it supports the firm in its endeavours.G43
Patents & Copy
Rights -1 1 1 1
The patents as well as the copy rights tend to form an integral
part of the firm
R&D Support 1 1 1 1
The Research and Development needs to be an integral part of
the firms creative policy
Technology
Adoption -1 1 1 1
The technology adoption can be understood to be important for
the firms
Rate of
Technological
Change 1 -1 1 1
The Rate of Technological Change can be understood to be
managed well
Environ
mental
Traffic Safety 2 -1 1 -1 The traffic safety can be taken to be crucial
Public Health -1 -1 1 -1 The Public health is important to be considered
Urbanization -1 -1 -2 -1 The urbanization is crucial for the firm and its target audience

54INDITEX REPORT
Disaster
Management 1 -1 -1 -1
The disaster management is undertaken to be an integral part of
the firm
Green Issues 1 2 -1 -1 The Green issues are crucial for the firm to take up
Legal
Competition
Laws -1 1 -1 -2 The competition laws are integral to be considered
Judicial System 1 2 -1 -2 The laws are considered to be essential part of the organization
Consumer
Rights 2 2 -1 -2 The consumer rights are important for the customer segment
Law and Order -1 2 -1 1 The law and order are considered to be integral
International
Treaties 2 2 -1 1
The International Treaties are better for the overall operations of
the firm as it allows them to expand and perform well
Table 2: Porters
Porters 5
Forces
Ind
ite
x
G
A
P
H
and
M Justification
Rivalry among
competing firms 2 1 1
The rivalry among the firms is strong but Inditex can be
considered to be performing considerably well
Bargaining
power of buyers 1 2 1
The bargaining power the buyers is strong but Inditex can
be considered to be performing considerably well
Bargaining
power of
suppliers 2 2 2
The bargaining power the suppliers is strong but Inditex
can be considered to be performing considerably well
Threat of New
Entrants 2 1 1
The threat of the Entrants is strong but Inditex can be
considered to be performing considerably well
Threat of
Substitution 1 2 -1
The threat the Substitution is strong but Inditex can be
considered to be performing considerably well
Additional
Forces
The Forces is strong but Inditex can be considered to be
performing considerably well
Digitalization of
business 2 1 2
The digitalization the business is strong but Inditex can be
considered to be performing considerably well
Globalization 2 1 1
The Globalization is strong but Inditex can be considered
to be performing considerably well
Deregulation 1 1 1
The Deregulation is strong but Inditex can be considered
to be performing considerably well

55INDITEX REPORT
Inditex Data 2018 2017 2016 2015 2014
Total Revenue 26145 25336 23310.5 20900.4 18117
Gross Profit 14816 14260 13278.6 12089.3 11056
Operating Income 4357 4315 4020.74 3677.44 3400
Net Income 3444 3367 3156.96 2874.58 2768
Figures in €
H and M Data 2018 2017 2016 2015 2014
Total Revenue 210400 200004 192267 180861 151419
Gross Profit 110887 108090 106177 103167 89052
Operating Income 15493 20569 23823 26942 25583
Net Income 12652 16184 18636 20898 19976
Figures in SEK
GAP 2018 2017 2016 2015 2014
Total Revenue 16580 15855 15516 15797 16435
Gross Profit 6322 6066 5640 5720 6289
Operating Income 1362 1479 1191 1288 1009
Net Income 1003 848 676 920 1262

56INDITEX REPORT
2014 2015 2016 2017 2018 2019 2020 2021
Best 1.90 1.95 1.81 1.82 1.96 2.08 2.20 2.32
Current Ratio Moderate 1.90 1.95 1.81 1.82 1.96 1.98 1.99 2.01
Worse 1.90 1.95 1.81 1.82 1.96 1.88 1.80 1.73
2014 2015 2016 2017 2018 2019 2020 2021
Best 61% 58% 57% 56% 57% 59% 61% 63%
Gross Margin Moderate 61% 58% 57% 56% 57% 56% 55% 54%
Worse 61% 58% 57% 56% 57% 53% 50% 46%
2014 2015 2016 2017 2018 2019 2020 2021
Best 15% 14% 14% 13% 13% 13% 14% 14%
Net margin Moderate 15% 14% 14% 13% 13% 13% 12% 12%
Worse 15% 14% 14% 13% 13% 12% 11% 10%
2014 2015 2016 2017 2018 2019 2020 2021
Best 0.11 0.11 0.11 0.11 0.11 0.12 0.13 0.13
Debt to Equity Moderate 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.12
Worse 0.11 0.11 0.11 0.11 0.11 0.11 0.10 0.10
2014 2015 2016 2017 2018 2019 2020 2021
Best 18,117.00€ 20,900.44€ 23,310.53€ 25,336.00€ 26,145.00€ 29,479.91€ 33,240.20€ 37,480.12€
Net sales Moderate 18,117.00€ 20,900.44€ 23,310.53€ 25,336.00€ 26,145.00€ 28,172.66€ 30,357.57€ 32,711.93€
Worse 18,117.00€ 20,900.44€ 23,310.53€ 25,336.00€ 26,145.00€ 26,865.41€ 27,605.66€ 28,366.32€