Accounting and Finance for Decision making for Burberry Group
Accounting and Finance for Decision making for Burberry Group: Burberry Group is a public limited company that exists as a British luxury fashion house as established in the year 1856. The company designs as well as distributes the core operations to take valid reasons and determine the overall success. Examining the change and taking the valid areas, the business responses become valid lead the change, and address the most familiar activities in the current roles to get the possible changes. Burberry Group designs as well as distributes the ready-to-wear including the trench coats, leather accessories, and the key footwear that affects the business operations in certain roles.
As a public limited company, the firm traded as an LSE and acted to take the strong directions in the reliable or the valuable positions. There are almost 418 locations that exist by the Burberry in year 2022. Burberry’s operations exist all over the world with a revenue of 3094 million in the year 2023. The operating income is about 492 million in the year 2023.
In the industry of fashion, Burberry company will grab a strong image that addresses familiar operations and takes the valid areas in greater forms. Giving or proceeding with the actions and taking the valuable plans, the organizational growth activities will be applicable that take the cleared change. Using the better change elements and taking certain operations, the share price of the firm depends on certain roles. Gross profit margin and the determination of better achievements, the current values will be advanced.
To raise the organizational presence and determine the better actives, the business’s current values will be reliable to address the advanced or the most valuable changes in the cleared roles to take the approach. By determining the organizational plans and taking valid roles in clear and sustainable practices. Examining the fashion industry and determining the most usual activities, the business roles become valued that address the higher change and take the most useful areas of the classification in the current and the applicable terms toward the most reliable activities of the business terms.
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Financial ratios:
From the analysis of the financial ratios, different types of ratio analysis can be done that improve the organizational description and take the reliable or certain terms, By valuing the change and addressing the clear communication, the business roles become valid take the instant activities. To determine the organizational values and take valid forms, the business values become applicable in advanced or valuable directions.
The evaluation of ratios and the broad analysis of the terms of the current practice are instantly attached to take the higher resources and determine the better values through certain plans. All of these ratios help to examine the accurate results and the comparative analysis in the business roles directions through the change in the given forms.
Profitability Ratios – Accounting and Finance:
Two profit margin ratios:
Gross profit margin:
Gross profit/revenue:
Year 2022: 2,011 / 2,826 = 0716.
Year 2021: 1,662 / 2,344 = 0.709.
From the gross profit margin to the profitability ratio, the analysis or evaluation of the current operations toward the change can be valid. It is a very useful era to get detailed plans and take valid information through greater forms. Proceed with the change and determine the current operations, the business plans must be observed in the cleared or the applicable changes. For taking the strong activities and evaluating the change, the business positions must be valued to address the current plans.
Net profit margin:
Net income/revenue:
Year 2022: 397 / 2,826 = 0.140.
Year 2021: 376 / 2,826 = 0.133.
In the year 2021, the net profit margin was 0.33, and in the year 2022, it was 0.140 which affects the large operations and takes the vulnerable plans regarding the change. Managing certain activities and addressing the valid parts, the business directions become useful in certain areas. The profit margin will evaluate the business approaches and the certain practices of the change.
Return ratios:
Return on assets:
Net income / average total asset:
Year 2022: 397 / 3,697 = 0.107.
Year 2021: 376 / 3,502 = 0.107.
In this financial ratio, the net income and the total assets represent the greater return on the sets that lead the change and address the most valid points. For taking the valuable plans and addressing the higher image, the business responses become valid in the greater resources. In both years, the return on assets is the same due to having no changes in the net income as affects the expenditures.
Return on equity:
Net income / average total equity:
Year 2022: 397 / (2,080) = (0.19)
Year 2021: 376 / 1,560 = 0.24
In the year 2021, the value of return on equity was 0.24 which is a positive value. Evaluating the total equity is positive in terms of proceeding with the change and addressing the most valid areas of the learning in the greater descriptions or taking the most directional areas of success.
Liquidity ratios:
Current ratio:
Current assets / current liabilities:
Year 2022: 2,035 / (804) = (2.531)
Year 2021: 1,982 / (702) = (2.823).
The current ratio indicates the relationship between the assets as well as liabilities of the company. To determine the large operations and manage the instant values, the current operations must have proceeded in the most valuable terms. Proceeding with the change and addressing the greater decision, the organizational descriptions become valuable to address the higher or the instant plans.
Quick ratio:
Current assets – inventory/liabilities:
Year 2022: 2,035 – 426 / (804) = (2.001)
Year 2021: 1,982 – 402 / (702) = (2.250)
The quick ratio shows the current ratio’s relation with the inventory of the company. In terms of adding the change and determining the most valuable plan., the organizational core activities will be advised. Proceeding with the greater activities and adding the core concerns, the business plans must be added. In the year 2022, the quick ratio will increase as compared to the previous year.
Efficiency ratios:
Inventory turnover ratio:
Cost of goods sold / average inventory:
Year 2022: (815) / 426 = (1.913)
Year 2021: (682) / 402 = (1.696)
By the comparative analysis of the efficient ratio, in the year 2022, the value of the inventory turnover ratio increases because it determines the change and indicates the most preferred end tools toward organizational success. The value of this ratio in the year 2022 is (1.913) indicating the large operations or the vulnerable operations.
Asset turnover ratio:
Net sales / average total assets:
Year 2022: 2,826 / 3,697 = 0.764.
Year 2021: 2,344 / 3,502 = 0.669.
Net sales and the average total sales relationship represent the business roles that lead the greater parts and evaluate the instant change. In the year 2022, the operation of current practices will be examined till the cleared or most effective change. That addressed the key policies and managing the greater roles in the cleared success. Examining the change and having strong practices, the business values become applicable to take the instant or the valuable plans.
Solvency ratios:
Debt to equity ratio:
Total debt / total shareholder’s equity:
Year 2022: (2,080) / 1,617 = (1.286).
Year 2021: (1,942) / 1,560 = (1.244)
The debt-to-equity ratio indicates that the current performance will be appliable to take the instant plan and address the most valid areas in the business directions. Given the strong operations and managing the current roles, the organizational changes can be evaluated in clear forms. All certain policies and activities will develop greater descriptions of the business roles. To determine the organizational plans and lead the clear plan, the year 2022 shows a positive debt-to-equity ratio.
Debt to asset ratio:
Total debt / total assets:
Year 2022: (2,080) / 3,697 = (0.562)
Year 2021: (1,942) /3,502 = (0.554)
From the total debt and total asset relationship, it is clear that the year 2022 shows a positive attitude toward the change and examines the most applicable plans in the cleared forms. It refers to the core practices and proceeds to the internal images in the current plans. Examining the change and determining the valuable roles, the business positions must be valid in the future.
Investment ratio:
Working capital ratio:
Current assets / current liabilities:
Year 2022: 2,035 / (804) = (2.531)
Year 2021: 1,982 / (702) = (2.823)
In the year 2021, the ratio of working capital for the Burberry company is effective in increasing the organizational plans and leading the change toward instant behavior. Current assets and current liabilities are added up to gain the cleared plan and raise the tools.
Price-earnings ratio:
Share price/earnings per share:
Year 2022: 15.92 / 98.2 = 0.162
Year 2021: 65.4 / 93.0 = 0.70
This ratio indicates that the year 2021 was best for the financial performance of the price-earnings ratio because it indicates the large operations and proceeds the valuable directions. The evaluation of the price-earnings ratio helps to proceed with the change and determine the instant plans for the active areas through the current operations.
Conclusion:
In this report, the main purpose is to analyze or evaluate the financial ratio analysis that addresses the possible activities or takes the valuable plans. To determine the change and address the valid point, the comparative analysis can be examined in the future. Proceed the changes and managing the higher intention, the organizational roles will be classified to observe the change.
Given the greater forms and the valid data, the current resources are examined in the future. All of these activities help to take the plan and address the instant positions to get long-term success. The relationship of financial ratios in the comparative years of 2022 and 2021 indicates the current resources as leading the change and addressing the familiar areas of success.
By determining the change and managing the instant values, the organizational changes become suitable or valuable. The price and the earning price share are examined to take the instant roles and transform the higher changes, the business plans can be sourced in valid forms as addressed by the change. Applied for the extension of time and taking the most suitable pans, the business roles can be addressed in the most useful techniques as leads the change through the actions.
This report illustrates the Burberry company’s financial ratio analysis that donates the position and the reliable performance through the certain values in the cleared and the most applicable changes regards the effective roles to take the success.
Burberry company is one of the leading fashion brands that is expanding its current operations and leads the most advanced areas of success to determine the change and leading the instant activities, the firm’s going value will be advanced to track the instant change. There are a lot of practices that lead the organizational changes and determine the business plans through strong change.
