Business Financial Analysis

Business Financial Analysis

Business Financial Analysis

Introduction

Carrefour is providing its services to the customers all over the world for the last 40 years and over the years it has become one the largest distribution group. In Europe it is the second largest retailer and it is operating currently four superstores which include: hypermarkets, supermarkets, cash & carry and convenience stores. Apart from these superstores the company also operates or has given 9500 stores as a franchise. The business analysis report will provide a detail financial health of the business by taking into consideration financial ratios like profitability, liquidity, operating and leverage ratios during the fiscal year from 2009-2011. The internal comparison and the external comparison of the ratios with competitors will define the current financial position of the firm. The report will also define the potential areas where Carrefour has invested or is planning to invest in the future and the report will also discuss that is it risky to invest in the supermarket sector or not. The report will provide a comparison of working capital management of Carrefour with different oil companies. The SWOT analysis, market outlook, Porter`s 5 forces model will produce a trading outlook of the supermarket sector. The identification of the accounting policies and practices used by Carrefour in publishing the financial statement will enable the investors and other stakeholders know that either transparency or accuracy measures are taken by the company or not.

Discussion

It was in 1959 when Carrefour was founded by the Fournier and Defforey families. The store opened its first store in 1960 and the store was a result of a merger between two wholesale families. Carrefour gave a new concept to the hypermarkets in the world by offering all kinds of foods and non-food items at a huge area. Initially Carrefour opened its superstores in France as it was a French based retail store but in 1969 it started opening its subsidiaries or branches in different parts of the world like opened a branch in Belgium. It was in 1970s when the company got listed in the French Stock Exchange. The success of Carrefour started to grow from countries to countries like Brazil, Spain, Portugal and other parts of the world during 1980s. Carrefour was able to develop several retail and wholesale stores along with the hypermarkets. The success of the company enabled the organization to use diversification strategies and enabled to create its own products as well. After excelling in the European markets the organization penetrated towards the Asian markets and opened its stores in Taiwan, Hong Kong, China and other Asian countries. The company has been able to create its value among the customers all over the world and has been able to successfully achieve its objective of providing the comfort of 'one stop shopping under one roof'. The large range of variety of all kinds of products either grocery items, electronic items, different kinds of equipment and etc. The company has been able to achieve its targeted sales and ...