You are a Financial Analyst working for in an Investment Bank in the City of London. You were asked
by your manager to conduct a financial analysis and prepare a report about H&M
? The Introduction should include a chart on the brand’s share price for the last two
years. You need to comment on the main movements of the stock over that period, tracing that to
possible external or internal causes.
? The Body of the Report includes the analysis of the ratios which are calculated from the
financial statements (Income Statement, Balance Sheet and Cash Flow). it is necessary to calculate
every covering Profitability, liquidity, Gearing, Investor’s ratios and working Capital for the
LAST TWO ANNUAL FINANCIAL STATEMENTS. In the context of your financial analysis, you should also
highlight any weaknesses or strengths emerging, impacting the company overall performance.
? For each ratio, you are required to: – Explain what it measures
– Report the value of the ratio
– Comment on the changes from one year to another
– A general comment on the overall section of Liquidity, profitability, Investment, Working Capital
and Gearing levels.
? The overall conclusion represents your judgment on the likely future general financial condition
of the company highlighting the company’s strengths, weaknesses, and the risks facing it in the
? Finally, you are required to present a list of realistic recommendations to improve the brand’s
financial performance, considering the current or future economic expectations.
? The Appendices (not included in the word count) should include the following:
– The Financial statements (Income Statement, Balance Sheet and Cash Flow of the chosen company)
extracted from the company’s annual report and downloaded from its website.
– You are required to show the working / calculations of your ratios (Formula + answer)
– You should also include a list of References that are used to collect information, all the
referencing should be done according to the Harvard referencing system.