Burberry Managerial Accounting 2015
Content Page
Executive Summary........................................................................................................pg. 3
Shareholder Value Maximization....................................................................................pg. 4
Strengths and Weaknesses of using financial ratio analysis..........................................pg. 5
Reference List ...............................................................................................................pg. 9
Appendix 1 (Financial Ratio Calculations)......................................................... ...........pg. 10
Executive summary
Established in 1856, Burberry Group Plc , hereinafter referred to as 'Burberry', is a holding company producing and selling luxury apparel wear and accessories via various global networks. The company operates via two channels, being Retail and Licensing. It is considered to be the 94th most valuable brand worldwide according to Forbes Most Valuable Brands List, [http://www.forbes.com/powerful-brands/list/] ,[2014] [Accessed: 8 January 2015], and 1,614th place on Forbes' World's Biggest Public Companies list, possessing a market value of 10.2 Billion Dollars, [http://www.forbes.com/global2000/list/] [2014] [2014] [Accessed: 9 January 2014].
This report provides an analysis of Burberry's financial standing, its ability to function efficiently in comparison to prior years and against its competitors for the financial years 2011, 2012 and 2013.
The report firstly explains the importance of shareholder maximisation, its limitations and how it may not necessarily benefit the customer, employee or the environment and may enter into bad practices when siding with political parties for their own benefit. Moving on, we investigate the strengths and weaknesses of using financial ratios in analysing financial statements and how they provide a fair perspective on the performance of a company in relation
Executive Summary........................................................................................................pg. 3
Shareholder Value Maximization....................................................................................pg. 4
Strengths and Weaknesses of using financial ratio analysis..........................................pg. 5
Reference List ...............................................................................................................pg. 9
Appendix 1 (Financial Ratio Calculations)......................................................... ...........pg. 10
Executive summary
Established in 1856, Burberry Group Plc , hereinafter referred to as 'Burberry', is a holding company producing and selling luxury apparel wear and accessories via various global networks. The company operates via two channels, being Retail and Licensing. It is considered to be the 94th most valuable brand worldwide according to Forbes Most Valuable Brands List, [http://www.forbes.com/powerful-brands/list/] ,[2014] [Accessed: 8 January 2015], and 1,614th place on Forbes' World's Biggest Public Companies list, possessing a market value of 10.2 Billion Dollars, [http://www.forbes.com/global2000/list/] [2014] [2014] [Accessed: 9 January 2014].
This report provides an analysis of Burberry's financial standing, its ability to function efficiently in comparison to prior years and against its competitors for the financial years 2011, 2012 and 2013.
The report firstly explains the importance of shareholder maximisation, its limitations and how it may not necessarily benefit the customer, employee or the environment and may enter into bad practices when siding with political parties for their own benefit. Moving on, we investigate the strengths and weaknesses of using financial ratios in analysing financial statements and how they provide a fair perspective on the performance of a company in relation