Inditex financial analysis

Inditex (ITX)

My wife loves Zara and raves so much about their stores and products. We have previously seen that Inditex has been very successful to position its well defined fashion brands in the low-priced high fashion segment of the market.

Participant in the United Nations Global Compact since This statement summarises very well the business model of Inditex.

Financial Analysis and Valuation of INDITEX

Various concepts of the Inditex are further explained as below with their ideology and history Inditex, a. Hence, slowdown in consumer spending across Europe fused with rising raw materials and supply chain costs.

To avoid this kind of incidents and damage of the company image, further control and monitoring of the supply chain have to be improved. The Spanish Group now runs more than stores in 78 countries with a remarkable expansion into higher-growth emerging markets.

These competitors are giving tough time to Inditex. Inditex need to focus on other markets such as Asian markets to perform better in economic downturn of one market. Indeed, while GAP, Benetton and Esprit are positioned within the low fashion with middle price segment, most of the Inditex brands are within the high fashion with low cost segment of the market[18].

In terms of corporate governance, this may lead us to ask the potential principal-agent problem which arises under conditions such as asymmetric information, moral hazard and conflict of interest to the detriment of minority shareholders. Member of Gold Community and Pioneers Programme.

Finally, cash flow analysis confirms the financial health of INDITEX and demonstrates that it is not facing any liquidity or insolvency problem. Zara is known for its stylish designs similar to the famous Italian fashion houses but with modest prices. This made Zara the world's largest fashion brand.

We also note that American market has a remarkable ratio. To better assess whether or not these issues are present, a liquidity ratio more specific than the current ratio is needed.

Financial Analysis and Valuation of INDITEX

To conclude, the textile and apparel industry is currently facing a very unstable world economy that is hit by a severe recession and financial crisis. Consumers are affected by the slumping housing market and high unemployment rates in the US.

Own construction, Annual Reportpp. This strategy has been made possible by a high information technology system.

Wal-mart Stores Inc in Retailing

Asia, Africa and America. I feel that they have a huge opportunity as far as Zara is concerned. First of all, we will take a closer look at the general information of the company such as its history, brand portfolio, shareholding structure and corporate governance.

As we noted, this flexibility enables the Group to manage its inventories more effectively, tighten links between supply and demand, and reduce obsolescence costs. According to the International Cotton Advisory Committee, cotton was the most volatile of all the 53 exchange-traded commodities in This is not the case for Inditex.

Stradivarius presents its apparel for young women in 46 different countries. Remember, sale is vanity, profit is sanity and cash is king. The cash ratio is the most stringent and conservative of the three short-term liquidity ratios. This group consists of different companies working in distribution, manufacturing and textile designing.

This strong competitiveness across Asian countries is likely to even further reduce the prices in the industry. After Zara come the lesser brands. InInditex won the jointly instituted by the Wharton School of the University of Pennsylvania and Infosys Technologies, Wharton Infosys Business Transformation Award WIBTA for their innovative and successful implementation of information technology to drastically decrease the time it takes to get new merchandise from the design stage to the in-store stage[28].

Later, we will move on the financial analysis of Inditex and explore its financial performance and profitability. Finally, we are going to conduct a stock valuation in order to estimate the iNDiTEX’s economic value per share and determine the intrinsic value of the shares. Summary Canadean's "Inditex S.A.: Retail - Company Profile, SWOT & Financial Analysis" contains in depth information and data about the company and its operations.

The profile contains a company overview, key facts, major products and services, SWOT analysis, business description, company history, key competitors, financial analysis, mergers.

QUALITATIVE AND QUANTITATIVE ANALYSIS OF INDITEX Authors (Universitat de Barcelona): Núria Tudó Helena Hernández Inditex has professionals who attend customers with problems by phone, e-mail or webpage. InInditex responded to almost enquiries, 40% more than the.

Financial analysis ­ Inditex group is not affected by the economic crisis: ­ There is an increase in profits in the past 5 years ; ­ Spain is totally affected by the crisis but Inditex is number one in the sector of fashion with 8,1 billions € of sales from the beginning of the year ().

Financial Services Commentary and Analysis

This table contains critical financial ratios such as Price-to-Earnings (P/E Ratio), Earnings-Per-Share (EPS), Return-On-Investment (ROI) and others based on Inditex's latest financial reports.

Financial analysis can be defined as a study of relationship between many factors as disclosed by the statement and the study of the trend of these factors.

The objective of financial analysis is the pinpointing of strength and weakness of a business undertaking by regrouping and analyzing of figures obtained from financial statement and.

Inditex, Industria de Diseño Textil SA in Apparel and Footwear Inditex financial analysis
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Inditex S.A. : Retail - Company Profile, SWOT & Financial Analysis