Financial analysis of Burberry Company(FTSE 100 Company) Assignment

Financial analysis of Burberry Company(FTSE 100 Company) - Assignment Examplefiscal year 2012/13 on market review and research that will be centered on important sites in Asia.2 Indeed, Burberry has turnout to be resilient. Since 2009, the participations assets gift grown by 43% and its equity has change magnitude by 64%. The equity growth is mostly due its Retained Earnings that have more(prenominal) than doubled during the decision four fiscal old age of the company from ?199.2 gazillion in 2009 to ?507.1 in 2012. To fuel the continuing expansion of its operations in the last four years and to fund its working capital requirements, Burberry has not opted to issue additional common shares. Thus, its common stocks, at par value, have not increased in the course of the last four years. Instead, Burberrys long-term liabilities have increased by almost 250% from ?35 billion in 2009 to ?122.4 million in 2012. While Burberry has generally been operating as a profitable company, i t incurred a net loss of ?6.0 million for the year ended 31 March 2009. In spite of the dire effects of the financial crisis that substantially crippled global giants that have considerable operations in USA and Europe, Burberry has generated operating profits that amounted to ?182.6 million for 2009. However, the non-operating expenses for 2009 ended up gobbling such profits made from the companys operations. The complete bulk of ?193.5 million was incurred mostly for booking impairment charges at ?129.6 million the sum of ?116.2 million pertaining to the goodwill initially recognized for Burberrys operations in Spain plus ?13.4 million for the stores established in the same country. In addition, ostracize goodwill has as well been credited at ?1.7 million for the formation of the Burberry Middle East joint venture. These procedures were conducted in compliance with International Financial coverage Standards (IFRS) regulations that uphold International Accounting Standards (IAS ) 36, which require the writing down of impaired assets and the recognition of impairment losses on goodwill and intangible assets.3 The foregoing take aside, Burberrys operations has delivered Earnings Before Income Tax (EBIT) that increased year-on-year from 2009 to 2013. In fact, the companys EBIT in 2012 is 195% of the equivalent in 2009. The income statements below provide that tour Burberrys revenues increased by 54.57% from 2009 to 2012, its cost of sales increased by only 4.22%. This reflects an increased efficiency in the operations sourcing, production and distribution. The balance sheets and income statements of Burberry for the years 2009 to 2012 reflect an overall uptrend of its income and, subsequently, its book value per share. The common-size balance sheets highlights the increasing share of Burberrys equity vis-a-vis the decreasing share of its total liabilities in the total assets of the company. It means that the investment of creditors in the form of loans, et c. have through time become less than the worth of the companys equity. While the companys assets were represented as 51.68%-liabilities and 48.32%-equity in