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Conduct a Financial Analysis using exhibit 7 (percent changes, percent of sale a

ID: 2557415 • Letter: C

Question

Conduct a Financial Analysis using exhibit 7 (percent changes, percent of sale and select ratios) please complete in excel or easist way possible

Exhibit 7 Inditex Historical Financials (millions of euros) Year 2001 1999 1998 1997 1996 3,249.8 1,563.1 1,686.7 982.3 704.4 209.3 495.1 149.9 2,614.7 1,277.0 1,337.7 816.2 1,008.5 521.0 487.5 285.4 202.1 2,035.1 988.4 1,046.7 636.2 Net Operating Revenues Cost of Goods Sold Gross Margin Operating Expenses Operating Profits Non-Operating Expenses Pre-Tax Income Income Tax Minority Interest Net Income Net Margin Inventories Accounts Receivable Cash and Cash Equivalents Total Current Assets Property, Plant, and Equipment 1,336.8 Other Non Current Assets Total Assets Asset T urnover ROA 799.9 599.1 345.5 253.6 489.2 152.7 368.8 106.9 292.4 204.7 10.06% 188.5 259.2 10.47% 353.8 184.2 9.48% 157.7 9.91% 7.21% 245.1 145.2 190.3 481.9 1,127.4 274.0 635.7 1,339.5 2,605 2,107.6 1,772.9 1,326.3 977.2 820.3 1.25 13.07% 12.30% 8.86% Accounts Payable Other Current Liabilities Total Current Liabilities Non Current Liabilities Total Liabilities 426.3 407.9 834.2 284.5 323.0 347.3 670.3 1,437.7 2,108 1,170.9 276.1 275.6 551.7 1,221.3 1,773 893.2 141.5 272.9 704.3 977.2 529.9 444.7 586.2 820.3 Ul 1,486.2 673.4 Leverage ROE Source: Inditex. 22.9% 227%

Explanation / Answer

Percent Changes Percent of sales Year 2001 2000 1999 1998 1997 1996 2001 2000 1999 1998 1997 2001 2000 1999 1998 1997 Net Operating Revenues 3,249.80 2,614.70 2,035.10 1,614.70 1,217.40 1,008.50 24% 28% 26% 33% 21% Cost of Goods Sold 1,563.10 1,277.00     988.40     799.90     618.30     521.00 22% 29% 24% 29% 19% 48% 39% 30% 25% 19% Gross Margin 1,686.70 1,337.70 1,046.70     814.80     599.10     487.50 26% 28% 28% 36% 23% 52% 41% 32% 25% 18% Operating Expenses     982.30     816.20     638.20     488.20     345.50     285.40 20% 28% 31% 41% 21% 30% 25% 20% 15% 11% Operating Profits     704.40     521.50     410.50     325.60     253.60     202.10 35% 27% 26% 28% 25% 22% 16% 13% 10% 8% Non-Operating Expenses     209.30     152.70     118.10       96.70            -              -   37% 29% 22% 100% 6% 5% 4% 3% 0% Pre-Tax Income     495.10     388.80     292.40     228.90            -              -   27% 33% 28% 100% 15% 12% 9% 7% 0% Income Tax     149.90     106.90       86.20       76.10            -              -   40% 24% 13% 100% 5% 3% 3% 2% 0% Minority Interest        4.80        2.70        1.50       -0.20            -              -   78% 80% -850% 100% 0% 0% 0% 0% 0% Net Income     340.40     259.20     204.70     153.00     117.40       72.70 31% 27% 34% 30% 61% 10% 8% 6% 5% 4% Net margin        0.10        0.10        0.10        0.09        0.10        0.07 6% -1% 6% -2% 34% 0% 0% 0% 0% 0% Inventories     353.80     245.10     188.50     157.70            -              -   44% 30% 20% 100% 11% 8% 6% 5% 0% Accounts Receivable     184.20     145.20     121.60       75.00            -              -   27% 19% 62% 100% 6% 4% 4% 2% 0% Cash and Cash Equivalents     315.70     210.00     171.80     158.80            -              -   50% 22% 8% 100% 10% 6% 5% 5% 0% Total Current Assets     853.70     600.30     481.90     391.50     274.00     190.30 42% 25% 23% 100% 26% 18% 15% 12% 8% Property, Plant, and Equipment 1,336.80 1,339.50 1,127.40     880.40     635.70            -   0% 19% 28% 38% 41% 41% 35% 27% 20% Other Non Gwent Assets     414.50     167.80     163.60       54.40       67.50            -   147% 3% 201% -19% 13% 5% 5% 2% 2% Total Assets 2,605.00 2,107.60 1,772.90 1,326.30 9,772.00     820.30 24% 19% 34% -86% 1091% 80% 65% 55% 41% 301% Asset Turnover        1.25        1.24        1.15        1.20        1.20        1.20 1% 8% -4% 0% 0% ROA 13.07% 12.30% 11.54% 11.54% 12.01% 8.86% 6% 7% 0% -4% 36% Accounts Payable     426.30     323.00     276.10     215.60     131.40            -   32% 17% 28% 64% 13% 10% 8% 7% 4% Other Current Liabilities     407.90     347.30     275.60     229.10     141.50            -   17% 26% 20% 62% 13% 11% 8% 7% 4% Total Current Liabilities     834.20     670.30     551.70     444.70     272.90     234.10 24% 21% 24% 63% 17% 26% 21% 17% 14% 8% Non Current Liabilities     284.50 1,437.70 1,221.30     881.60     704.30     586.20 -80% 18% 39% 25% 20% 9% 44% 38% 27% 22% Total Liabilities 1,118.70 2,108.00 1,773.00 1,326.30 9,772.00     820.30 -47% 19% 34% -86% 1091% 34% 65% 55% 41% 301% Equity 1,486.20 1,170.90     893.20     673.40 5,299.00     414.90 27% 31% 33% -87% 1177% 46% 36% 27% 21% 163% Leverage        1.75        1.80        1.98        1.97        1.84        1.98 -3% -9% 1% 7% -7% ROE        0.23        0.22        0.23        0.23        0.25        0.20 4% -3% 1% -9% 25%

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