Managing Finance Coursework: Analysis of Boohoo Group's Financial Ratios

1. MANAGING
FINANCE
Coursework

EXECUTIVE SUMMARY
Management of Finance and the financial resources of the business is a major concept in a
business. This management is done using different tools discussed in the management theory.
Interpretation of the financial ratios is one of the major tools used to forecast the performance of
the business and provide changes in the business which are required to do better in the
marketplace. This report highlights the usage of financial ratios in the case of Boohoo Group, A
British online fashion retailer. Interpretation of the ratios and recommendations are provided to
the business. The report considers the annual reports of the business from the year 2019, 2020
and 2021.

Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Introduction and background of industry....................................................................................4
Introduction and background of company...................................................................................4
Qualitative analysis of firm.........................................................................................................5
Calculation of ratios for three years.............................................................................................5
Comparative analysis of the financial performance....................................................................9
Comparative analysis of company with industry.......................................................................10
Recommendations made to the company..................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Management refers to the process of organising all of one's work in order to attain a specific
organisational goal. In financial accounting, it involves managing a company's financial
resources in such a way that wealth and earnings are maximised. If huge businesses wish to grow
consistently, they should compare their results to those of their competitors (Jackson, 2020). It
will assist them in determining where they are falling short and where they need to improve.
Boohoo Group is the company profiled in this research. It is a Manchester-based online fashion
retailer with headquarters in the United Kingdom. The report goes through the history of the
chosen industry as well as the history of the company. In addition to ratio calculations, it
conducts subjective analysis of the company. It also examines the firm's performance and
compares it to that of comparable businesses and provides recommendations to the Boohoo
Group.
MAIN BODY
Introduction and background of industry.
The fashion sector in the United Kingdom plays a significant part in boosting the country's
economy (Kim, and Kim, 2019). The demand for attractive clothing in the United Kingdom is
increasing as the population grows and individuals become more aware of fashion. The history
of this sector is extensive, and it has evolved and transformed significantly over time to include
some of the world's best fashion designers. It was 1984, and a lady placed an order for groceries
by calling a grocery store after checking the item list on a computer. Following then, the online
shopping craze began (Shimizutani, and Yamada, 2018.). This began with product commercials
on television and gradually progressed to selling things while providing them on the internet.
Companies now have their own portal where customers may choose the goods they want to buy
and place an order without having to deal with the vendor in person. Similarly, fashion industry
strata showcase their products on their websites in order to entice clients to buy them. This has
supplied buyers with a pool of options from which to select their desired items.
Introduction and background of company.
The Boohoo Group is a British online fashion retailer that was started in 2006. It sells over
36000 different items. Many firms and online stores have been bought by it. Mahmud Kamani
and Corol Kane, who is currently the company's chairman, formed the company. The company