Debenhams PLC Financial Analysis



Debenhams PLC Financial Analysis

Introduction

Debenhams which is in existence since 200 years is operating as departmental store group, with having strong recognition in various products markets which includes, all type of men, women and children wear, healthy and home, and beauty products. It carries different mix of brands to offer to customers and they maintain higher differentiation in their product on highly crowded street. It also has footsteps as a multinational company operating international businesses worldwide. It holds around numerous owned stores at U.S and also franchise stores in 25 countries. Their core customer that is their major target market is around women aged 25-45. Debenhams is among one of the Britain's favourite departmental store group spread over 180 stores in the UK and Republic of Ireland.

Mission Statement

Debenhams has a clear strategy to drive future profitability and grow market share. This is being achieved by increasing our sales to our existing customers, attracting new customers and moving into new markets. Debenhams is Britain's favourite department store group, with over 108 stores in the UK and Republic of Ireland.

Major stakeholders

Stakeholders in every organization are a person, group, or any body who affects and affected by company actions. Major stakeholders include:

Shareholders

Internal Managers

Government Agencies

Employees

Lenders

Supplier

Customers

Competitors

Local Communities

Board

General Publics

Creditors

Their respective needs in financial statements can be as follows:

Shareholders- Their major concerns are whether company performing well financially. As they are major stakeholders and their investment is at stake, their major concern over financial statement is that whether corporation giving higher investment return

Internal Managers- They need to review financial statement to plan for future perspectives on planning, organizing, decision making and for effectiveness of asset management. They concern it for cross checking internal control activities. They also review it for their own compensation and remuneration.

Government Agencies- Their major for financial statement analysis is taxation.

Employees- They need financial statement to analyse future job prospects and evaluating their salary and status with other company comparisons

Lenders- They are concern over financial statement is company leverage and paying back abilities whether they corporations are in financially sounding condition for repaying payment and interest on their loans

Supplier- They also holds concern over financial statement in respect to payment on their materials and goods.

Customers- They concerns for financial statement it that they review their major suppliers and product viability.

Competitors- Their concern over corporation's financial statement to compare themselves with their competitive corporations.

Local Communities- They major concern is for local employment.

Board- They is the one's who are responsible to shareholders on financial performance.

General Publics- They are concern with corporations concern over environmental perspectives, health and safety, and corporate social responsibility

Creditors- They has concern whether company will pay on their products and services. They concern over their credit rating before giving goods on credit.

All these stakeholders had major concern over financial statements and as their own needs respectively attached to financial statement usage.

Financial Performance Indicators

Debenhams used following strategies for indicating financial performance:

Gross transaction value

This strategy is being used to measure of overall sales in the ...